By Jonathan Blake, May guest blogger
All over Minnesota, parents and students are making one of the most important decisions of a lifetime: where to send that student to college. Everywhere you look, news stories are focusing on the dual issues of college affordability and student debt. Next to buying a house, it’s likely the biggest financial decision a family will make. As such, it is important that parents and students consider some hard facts about what the future holds for recent college graduates.
A recent report by the Federal Reserve Bank of New York found “the outstanding student loan balance now stands at about $870 billion, surpassing the total credit card balance [in America] ($693 billion) and the total auto loan balance ($730 billion).” Minnesota is unfortunately helping to lead the way. According to the Minnesota Office of Higher Education, the state is ranked fifth in the country for student debt.
College affordability and student debt should not be viewed in a vacuum. One of the most important things we can do to help alleviate the student debt burden is to equip graduates with the skills and experience they need to build successful careers. In this area, there is plenty of room for improvement.
One issue that should be addressed on the state and national level is the growing skills gap. According to the Department of Labor’s Bureau of Statistics there are currently as many as 3.5 million unfilled jobs in the U.S. because many companies can’t find qualified candidates. Here in Minnesota, according the president of the Minneapolis Federal Reserve, if qualified applicants were suddenly found for such open positions, the unemployment rate would drop by 2%. Such an impressive drop in the state unemployment rate should impress policymakers and cause higher ed administrators to take notice, especially during this prolonged economic recession.
The skills gap problem is worsened by the impending retirement of the baby boom generation. A Pew Research Center report indicates that 10,000 baby boomers will reach age 65 every day for the next 20 years. Whether the younger generation is prepared to replace these workers is up for debate. According to a recent survey of HR professionals by AARP, more than half said their older workers had “stronger writing grammar and spelling skills.”
This is not an argument for or against any specific type of educational pursuit. Rather, my intent is to show the necessity for higher education institutions to make adjustments amongst students and educators to ensure that the current and future workforce is prepared to fill the job requirements that a modern economy demands. If Minnesota is to retain its status for providing a highly trained workforce, changes must be made now to ensure that we remain up to that task.
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