While young people are often told to pursue higher education at a four-year college, this is not the only path available. Vocational education, also known as career and technical education or trade schools, can also provide students with an in-demand skill set and a pathway to a lucrative career.
As labor shortages in many trades persist, education departments and school systems are now highlighting the benefits of vocational education.
A Post-High School Pathway
Every year, more than 3 million students graduate from high school. Many of these students enter a two- or four-year college. While a university degree often comes with a higher lifetime salary, it is also very expensive. Many students leave deeply in debt.
Since a college educations offers broad exposure to science, humanities, math, and social sciences, graduates do not always have the skills to compete in the workforce. This is one reason why more than half of college degree holders do not work in their field of study.
A vocational education contrasts with traditional degree programs in several ways. Students attend short-term training programs taught through a practical hands-on approach. Vocational training programs teach students the specific skills they need in the workforce, so graduates are employable from day one.
While the overall lifetime earnings for vocational education graduates are lower than for college grades, these students also leave with little to no debt. This means that they can hit financial milestones such as saving for a home or retirement much faster than their peers. Vocational training graduates who establish their own businesses also can earn a lucrative income.
Vocational education programs do not only benefit students, but the economy as a whole.
Increases Skilled Labor
Workers skilled in technical training are needed across all industries, including healthcare, manufacturing, and retail. The trades have been reliant on an older workforce, who are beginning to retire in droves. The pandemic accelerated retirement for hundreds of thousands of workers.
Due to the lack of young people entering vocational education, there aren’t enough incoming workers to fill these vacancies. Compared to other nations, the US has the fewest young people enrolled in apprenticeship programs.
Federal and state governments have recognized these issues and have collaborated with regional school districts to increase access to vocational education and promote technical training as an option for high school students.
Helps People Earn a Higher Income
While the average college graduate makes slightly more than the average trade worker, trade workers make considerably more than people with only a high school diploma.
High school graduates earn just under $45,000 a year on average, while many skilled trade positions exceed $50,000 to $60,000 per year. When workers earn more money, the benefits ripple out into the wider economy.
State and federal governments earn more tax revenue. Relatedly, a better-compensated population is less reliant on government benefits and has greater purchasing power. This develops the local and national economy, as people have more money to spend on goods, services, and leisure.
Widens Access to Employment Opportunities
Misconceptions about vocational training often prevent more students from entering the trades. For example, there is a prevailing stereotype that the trades are male dominated.
This has resulted in fewer women and young girls considering a vocational education. There is a similar pattern of underrepresentation of people from minority backgrounds.
Promoting vocational education as a viable pathway for everyone can diversify the trades and encourage more people to take part in the economy. This can help address the skilled labor shortage and connect women and minorities to a broader range of employment opportunities.
Increases Overall Economic Activity
Vocational education makes an economy more robust, dynamic, and resilient by upskilling the workforce.
Without enough skilled workers, many industries experience delays and slowdowns. This can stymie economic growth and make the nation less competitive. On the other hand, unskilled workers are not able to increase their earning potential.
Vocational training improves both sides of the equation by producing the skilled workforce companies need to expand and scale. Since skilled trade work offers a higher salary than unskilled work, these workers will see a boost in their income and spending power.
As a result of the benefits to the economy, investment in vocational education programs and training has a sizable rate of return. According to a study conducted in Ohio, by some estimates vocational education training can return an investment of more than 2,000 percent after 20 years.
Additionally, state economies can reap sizable returns. For example, in Ohio, a vocational training program creating 15,000 jobs generated more than $1.4 billion.
Conclusion
A robust and well-financed vocational education system can improve the economy at both the micro and macro levels. Workers employed in the trades can earn more money without incurring the debt associated with a college education. Industries benefit from an adequate workforce, which reduces delays and increases the production and supply of goods.