Pennsylvania has 61,000 jobs that require education beyond high school and not enough qualified workers to fill them. By 2032, the gap will grow to 218,000 jobs that lack workers with postsecondary-level credentials, according to a Pennsylvania Department of Education study.
The gap has real-world consequences for our economy and communities. As the chancellor of Pennsylvania’s system of 10 state universities, I frequently hear from employers who struggle to find workers with the education they need. Hospitals need nurses, businesses need accountants and data analysts, school districts need teachers, advanced manufacturers need technicians, communities need social workers, and the list goes on.
To close the gap and address the worker shortage, more Pennsylvanians must complete education and training beyond high school. No matter whether they choose a university, a community college, a career or technical school, an apprenticeship, or another good pathway, affordability is key to many people getting that education.
Pennsylvania’s demographics will make that challenge harder. The state has an aging workforce, with the highly skilled baby boomers retiring and fewer young people prepared to take their place in the labor market. Pennsylvania’s employers are feeling the pressure of those worker shortages every day.
Adding to the challenge, some young people don’t understand the potential benefits of higher education. For that reason, I took a hard, data-driven look at the graduates from our 10 state universities to better understand the economic return on a degree.
The data provided a clear picture.
On average, our graduates earn 65% more during the span of their careers than Pennsylvanians with a high school diploma alone. Over a lifetime, that is nearly $1 million in additional earnings.
But what about the cost of paying for college? That deserves the same scrutiny.
The data shows the cost of earning a degree is roughly 2% of a typical graduate’s lifetime earnings. Nearly 95% of graduates can repay their student loans within 10 years — a sign of their financial stability.
Those outcomes are from our 10 state-owned universities, which benefit from state funding to help lower student costs. Other higher education institutions around the state may have positive results as well. The evidence is strong that higher education is the most reliable pathway to higher earnings, economic mobility and career advancement.
Despite the doom hyped by some naysayers, the facts are clear: Getting a post-secondary education pays off. The real question is whether enough people can afford that education to meet the needs of our economy.
Each person who has the opportunity to learn, build skills and graduate helps to strengthen Pennsylvania’s workforce. In recent years, the state-owned universities have enrolled more low-income students, more first-generation students and more community college transfers. Retention has hit record levels, meaning more students are staying on track to graduate. That is not only the right thing to do, but it also benefits our workforce. Each one of them helps to narrow our state’s workforce shortfall.
Pennsylvania does not lack ambition or ability, but we must ensure that people of all ages can afford the education necessary for today’s jobs and those projected in the future.
When higher education is affordable, we open doors and expand the potential for greater career earnings for a young person in Lancaster to become a nurse, a rural student to learn how to start a business, a first-generation student from Philadelphia to become a teacher and a working adult in Erie to move into a more stable career.
There is also no question that we must keep up with other states. California, North Carolina, Texas and other powerful states are trying hard to attract new industries and jobs. An educated workforce with strong problem-solving and reasoning skills remains one of the key factors that companies consider when deciding where to locate or expand. College affordability directly affects how many Pennsylvanians can earn the credentials necessary for those good jobs.
To compete with those states and close Pennsylvania’s workforce shortfall, we must increase the number of people who complete college and other postsecondary education.
Affordable public higher education, and the workforce it produces, are essential to keeping Pennsylvania working and ensuring the economic vitality of our communities.
Christopher Fiorentino is chancellor of Pennsylvania’s State System of Higher Education.