There is a growing number of Americans with education beyond high school.
However, a recent report titled “The Great Misalignment” from Georgetown University Center on Education and the Workforce (CEW) reveals that half of all local labor markets in the U.S. are not projected to meet their labor demands by 2031.
The report analyzed 565 local labor markets in the country and found that many are lacking in middle-skills credentials, such as certificates and associate degrees. The number of these credentials being conferred falls short of expected labor demand projections through 2031 in half of all local economies. At least 50% of all middle-skills credentials issued in these markets would need to be adjusted to meet these demands.
NerdWallet recently interviewed Zack Mabel, a research professor at Georgetown University’s CEW and co-author of the report, for more insight into the analysis.
Read on for some key points from the interview:
NerdWallet: What are the consequences of the misalignment between middle-skills credentials and the local labor market?
Zack Mabel: Employers struggle to find skilled workers, graduates may end up in fields with limited job opportunities, and economic growth may be hindered.
There are significant shortages in programs aligned with blue-collar jobs, while there is an overproduction of credentials in management and professional programs.
NerdWallet: How does location impact alignment between credentials and labor markets?
Zack Mabel: Urban areas tend to have stronger alignment than rural areas due to the higher number of providers serving urban areas.
Collaborations between institutions and local employers can help improve alignment by ensuring graduates have the skills needed by employers.
NerdWallet: Are there disparities in training and outcomes based on race and ethnicity?
Zack Mabel: There are disparities in access to middle-skills providers by race and ethnicity, with some groups more likely to live in areas without such providers.
Latino and Hispanic adults are the least likely to live in strongly aligned labor markets.
NerdWallet: What are the challenges in achieving alignment for middle-skills graduates?
Zack Mabel: Middle-skills providers face funding challenges and lack resources compared to four-year institutions. More support is needed to enable these institutions to meet the demands of local labor markets.
While alignment is important, it is not a guarantee of economic mobility or high earnings for individuals. It provides a snapshot of how well supply and demand are meeting but does not ensure positive outcomes for graduates.
The focus should be on addressing underproduction in valuable programs with strong pathways to high-paying occupations to maximize economic opportunities for both employers and individuals.
The article Half of Local U.S. Labor Markets Won’t Meet Future Workforce Needs originally appeared on NerdWallet.
