Trends in colleges and universities employment Most employees in U.S. colleges and universities fall into two employment categories in government statistics: Private Colleges and Universities, and State Government Education. As shown in the chart below, employment in private colleges and universities peaked in 2018 and has since declined. Private colleges face financial strain due to declining demographics and enrollment. The pandemic exacerbated these issues, leading to budget cuts, layoffs, and closures. Additionally, the rise of online education, which typically requires fewer employees per student, has further reduced employment needs. The long-term decline in for-profit colleges, driven by increased scrutiny and poor student outcomes, has also contributed to reduced employment in the private sector. Conversely, employment in state government education continues to grow. State schools rarely close and often benefit from increased enrollment due to private college closures. However, the sustainability of this growth in state government education employment is questionable. The public sector usually adjusts more slowly to market forces. The demographic cliff and the shift to online education will eventually impact employment in state colleges and universities as well. #highered #labormarkets #employment #demographics #onlineeducation #states #government
Jim Cortada
6mo
Your commentators are raising good points, too. I spent 20 years studying how industries transform while I was at IBM, looking at 18 of them to be precise. Higher education had not yet transformed to the extent that so many others had, because they did not have to. Today they are just entering that phase, the one so discernible in so many other industries as early as around 1970, even before computers kicked in. I dare not say what will happen to many good faculty members, administrative staffs, and the effects all that will have on my 3 grandchildren. I will strongly encourage them to go to college/university no matter what they want to do afterwards, because higher education is that critical in equipping them for the next 60 to 80 years of their lives. Thanks for sharing the data.
Eddie Beaver
6mo
Some public universities won't survive in their current size or form what are already crippling enrollment challenges and more funding cuts. UNCG, a relatively 'stable' moderate-quality public university in NC, has already cut 17 majors and is set to layoff dozens of staff members over the next 1-2 years as a result. They are a canary in the coal mine for what is likely to happen across much of the country to similar 'moderate' and 'stable' universities that will face lower, if any, enrollment growth.
Atul Joshi
6mo
Thank you for sharing this. I wonder what's happening for Trade Schools. Are they showing greater strength compared to prior years?
Scott Bailey
6mo
Online “education”, the crappification of learning.
Supply chain professor helping industry professionals better use data
6moGad Levanon, a topic near and dear to my heart. State schools can offer tremendous value at a much more affordable cost. Moreover, large land grant state universities have the same quality of faculty as elite private universities, so there isn't nearly the difference in classroom quality that the general public may expect. For example, the faculty in my department at Michigan State are routinely the most productive researchers in the world in empirical supply chain management.