Shortage of U.S. skilled workers by 2020?

By Tom Crouch, CPA, CIA, CISA, and Attorney

(Note: this is part of a series of articles written by the author. For links to the previous articles click here)


Part 11  --  Skilled Labor and High School Dropouts     September 17, 2009

Thirty percent of U.S. public high school students dropout. This statistic has remained virtually unchanged even though many approaches have been tried. (The 30% statistic is supported by references at the end.)  Has the U.S. education system learned from this failure? Is it time to consider a radically different approach?

In the current environment, most of those high school dropouts are likely to be considered unskilled workers. Many experts believe that there will be more unskilled workers chasing fewer unskilled jobs. Can we change the current approach and move more of these people into at least lower level skilled labor jobs?

People who get into lower level skilled labor jobs often move over time into higher level skilled labor jobs. If we can help move the likely high school dropouts toward lower level skilled labor jobs, will we have greatly improved their likely lifetime earnings? The lower level skilled labor jobs generally pay about twice the U.S. minimum wage. Would such a change in likely outcomes be kinder and more beneficial to those likely high school dropouts? Aren’t we all better off when more people are productive taxpayers?

Around 50% of high school graduates go to college and about half of those will complete a four year college degree. College graduates comprise about 25% of the work force. High schools are primarily structured for college bound students instead of educating the 75% who are not likely to ever complete a four year college degree. A key point here is that about 75% of the work force does not have a four year college degree.

U.S. high school students are more likely to fail the ninth grade than any other high school grade. Also, K-12 students are more likely to fail the ninth grade than any other grade. 30% of high school students drop out of high school. Students can be socially promoted to the ninth grade but high school (grades nine through twelve) credits must be earned. A child that has been socially promoted to high school is less likely to ever complete high school. The students who fail the ninth grade twice rarely graduate from high school. Students who do not complete high school within 5 years usually do not graduate from high school. Most of these points can be confirmed by seasoned high school faculty members.

Since 75% of the currently existing jobs do not require a college degree, the key focus of increasing the skilled laborers available should be on this segment. Roughly 40% of this 75% (or 30% of the work force) are folks who probably were high school dropouts. Many of these people later completed their GED (General Equivalency Diploma). Many high school dropouts score very well on their GED (adult education program directors can confirm this assertion). Many people who complete their GED go on to complete certificate and degree programs at community and technical colleges. Some of those completing a GED may later obtain a four year college degree.

Some people learn well by reading a book and listening to a teacher, while others learn well by seeing first hand how something is done. The traditional high schools are primarily structured for those who learn well by reading a book and listening, while vocational or trade schools seem to work very well for those who learn well by seeing first hand how something is done. Even though these folks may learn differently from those on the traditional high school track, they still do learn. 
 
One seasoned company employee stated the following:
"I graduated from a co-op vocational high school (we worked two weeks and attended school two weeks, and had an additional class period during our school session for classroom work on our vocational field). As I recall our percentage of students who went on to obtain additional educational training was somewhat higher than the regular high schools."

What if students are given the option of going to vocational school at any point after completing the eight grade? A majority of the students who are likely to become high school dropouts would choose to go to vocational school. The students who choose the vocational school route are more likely to stay in school longer. Also, they are more likely to be better prepared for the work force than the students who dropout of the traditional high schools.

U.S. high schools usually grant three to six different types of high school diplomas. Is a high school diploma really required to later become a skilled worker? Even though the high school diploma is the preferred option, it is not critical to becoming a lower level skilled worker, or even ultimately a high level skilled worker. If a student is not going to proceed on with education beyond high school, they appear to be more likely to become a skilled worker by going to vocational school instead of taking high school classes. A skilled labor shortage is coming and even the lower level skilled labor job training provided by high school vocational schools should lead to decent jobs.

Some observers have noted that much of the general knowledge gained in high school is what might be called "throw away knowledge." It consists largely of things needed to pass a class but after the class is completed, the knowledge is unlikely to ever be needed again. For the high school age students who will not pursue a four year college degree, "throw away knowledge" might comprise 50% to 80% of the knowledge gained in high school. Thus, the return on this investment is far less than the likely return on the vocational training.  
 
The high school vocational schools could include a thirty to sixty minute daily class directed toward the knowledge and skills needed to pass the GED. It appears that those high school vocational students would go ahead and pass their GED. The GED and high school vocational training would improve the likelihood of being hired for a job. These students would be more likely to be accepted into a community and technical college. Furthermore, these students might be much more likely to complete the more advanced programs leading to higher level skilled labor jobs. 
 
One seasoned professional shared the following story:
"One of my first jobs was for a sheet metal manufacturer. Their products are widely used in America. The GM of the factory (my boss) was a graduate engineer from Scotland. He received all of his schooling in Scotland. They had an a different educational system than we have here in the US. At age 14, he began work in metal shop. He would spend 6 months in the shop and 6 months attending high school and then college. By the time he graduated from college, he was a master at all of the jobs in the factory and even advanced to the level of a tool and die maker (the guys who made the tools that shaped the product). He told me that he could run every machine in the shop long before he graduated high school and could have elected not to attend college and would have been able to hold any skilled labor position in the machine shop. He told me that most of his boyhood friends attended school in the same way working for different companies as they were able." 
 
The vocational school approach is more widely used in Europe, Australia, and Japan. 
Perhaps we just need to do more benchmarking with the educational systems in other countries.
 
Are we being fair when students who perform poorly in an academic setting are being denied the option of going to a vocational school?  Most students are required to complete the 10th grade before they can gain admission to a high school level vocational school.  In some other countries, vocational school is an option with much less formal education being attained before admission.
 
Are we depriving some children of a real chance to learn a skill that the market place wants?  Are we just trying to make everyone like us?  Do we really care about the likely high school dropouts when we have a system which does not work for them?  Are we really being fair to those kids that might soar in a vocational school setting but they are prevented from entering?
 
We need to permit kids to go to vocational school after the 8th grade.  Will there be the political power to support the educational shift?
 
Several factors should converge before 2020.
-- The economy will recover from the 2008-2009 downturn.
-- The job market for skilled labor will improve.
-- The ratio of unskilled workers to unskilled jobs will continue to increase
   (this could be very troublesome).  There will be more unskilled workers
    seeking fewer unskilled jobs.
-- High school teachers will continue to retire at a faster pace than they are
  being replaced (a high school teacher shortage is clearly on the way).  There
  has been a noticeable decline in the college students seeking to become high
  school teachers.  50% of new teachers leave the profession within 5 years.
-- The business need for skilled workers at all levels will begin to pinch many businesses. 
-- The high school level vocational schools will begin to feel more pressure
    to provide more training areas for lower level skilled worker jobs.
-- The parents of high school age students will not tolerate the increasing
    number of students per class room.
-- The high school teachers still on the job will become far less tolerant of
    their increasing work load due to more students per class. 
-- The teacher's unions will become less likely to resist permitting high school
    age students to opt for vocational school.  The pressures from the over-worked
    teachers and angry parents due to crowded classes should cause this shift. 
--  Many of the lower level and mid-level skilled workers will be pulled upward to higher  
    skilled labor jobs.  This should create more job openings for the mid-level and lower
    level skilled labor jobs.  Thus, there are likely to be far more job openings for these
   type jobs.
-- The trade and industry groups will be pushing to solve the skilled labor
   shortages.  Those groups will also become concerned about the shortage
   of high school teachers.  These groups will also recognize that if the likely
   high school dropouts go to a high school vocational school that it might work
   to solve several problems.
-- Thus, the factors above should converge for the perfect storm.  The politicians
    will come around to supporting kids being permitted to go to vocational
    school after the 8th grade.
 
The vocational school approach could work much better for many students.  A shift in the education focus could greatly mitigate the coming skilled labor shortage. 
 
Copyright © 2009 by Tom Crouch   All rights are reserved.
 
References on High School Dropout Rates
High School Graduation Rates in the United States
Jay P. Greene, Ph. D.
Senior Fellow, The Manhattan Institute for Policy Research
Research Associate,

The Christian Science Monitor had an article --



 

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