Around the world, employers, educators, policymakers, training organizations and others have recognized the critical importance of tackling the skills gap. According to a recent study by the Center on Education and the Workforce at Georgetown University, there will be 165 million jobs in the economy by 2020, and 65 percent of those positions will require some form of postsecondary education.
Of the 55 million jobs that will need to be filled between 2010 and 2020, due to both new job creation and baby boomers leaving the workforce, there will be 5 million jobs requiring postsecondary credentials that will go unfilled at the current rate degrees are being granted. With both global and domestic economic trends continuing to redefine the trajectory of US labor demand, students are graduating with high levels of debt and struggling to find work, as their skill sets fail to match employer needs. This brings into question the value of the degree. A recent Gallup-Lumina report found only 43 percent of Americans believe college graduates are prepared for success in the workforce, which matches the perception of employers, with only 33 percent of business leaders agreeing that educational institutions are graduating students with the skills and competencies their businesses need. Media stories, the rising cost of a degree and the growing oversight by the federal government are putting pressure on educational institutions to prove their value.
However, the above statistics also prove that having a degree or certificate will only become more important in the future for the individual and the economy overall. How will institutions respond to meet this need, and what role should they play in doing so? These are questions that all institutions providing postsecondary education are grappling with—from trade, vocational schools and community colleges, to four-year liberal arts colleges and large universities. Whichever path each institution takes, it’s imperative that they’re all part of the solution to provide our country with a growing economy, thriving society and healthy communities.
According to a 2013 ManpowerGroup Survey, the top 10 hardest positions to fill demand a mixture of technical and transferable soft skills. Skilled trades positions present the largest gaps, but engineering, finance and management/executive positions—all typically requiring at least a four-year degree—are also in high demand.
Identifying ways to help graduates succeed in their future careers will vary depending on a number of factors, including industry, region and job role. But one thing is certain—a mix of both hard and soft skills will be required for most positions as technology becomes a more integral part of routine tasks.
To help the country solve for the skills gap and allow for higher education institutions to thrive in the economy of the future, consider the following:
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