September 16, 2018
Some Advice for High School Graduates
A recent column of mine offered advice to young college students. So, it only seems reasonable to offer similar economic advice to the 45 percent of high school grads who aren’t headed to college. To be honest, much of the practical advice will be the same, but for young folks who’ve decided not to attend college, there is one looming fact that should lead off the whole discussion.
Since 1990, the United States has not created a single net new job for men and women who have not attended college. This is despite consistent growth in the total number of adults with only a high school degree or less. Here in Indiana, there are fewer jobs for high school graduates today than we had in 1998. To put that in context, nationwide there are more than 25 million new jobs for college graduates. This means that a choice to forego college means you must be very perceptive about the type of occupation you pursue and where you pursue it.
In a better world, the Department of Workforce Development (DWD) would be superb resources for young men and women looking for career opportunities. I think the evidence suggests they struggle in that role. As just one example, DWD’s ‘Next Level Jobs’ list for high school graduates is dubious. Half have experienced wage declines over the past few years, making them very poor job choices.
To be candid, it is almost as if DWD focuses on supplying workers to business, not outfitting young people for a lifetime career. While this strategy would explain the poor quality of the ‘Next Level Jobs’ list, it does disservice to the half of Indiana’s kids who do not attend college. The plain fact is that most young workers will have to look to the private sector for training. Both businesses and unions offer programs worth considering.
The AFL-CIO operates training programs for most of the better-paid jobs in the skilled trades. These jobs usually require classroom training and an apprenticeship. This union also collaborates with the big three auto firms to provide training and apprenticeships. These sorts of union-business partnerships are easily accessible for young people interested in forging a career, not only in finding a job.
After decades of dwindling focus on worker training, businesses are increasingly focusing on internal training. Browsing company websites is a good way to learn about program options. I’d encourage any young person to look at IU Health as one example. They offer a great deal of training offered to employees and those looking for a job in a fast-growing field. For example, at IU Health you can obtain a surgical tech license for less than $4,500 in just eleven months. These positions are growing in demand and start out $20 per hour plus benefits. It is worth noting that this program costs more than $10,000 and takes five semesters at our state’s technical colleges.
The best news for many high school graduates is that just a little early training can really pay off. Many positions in skilled trade, healthcare and advanced manufacturing enjoy pay and benefit packages that are better than half the college-level jobs. Moreover, this training is relatively inexpensive, and workers can start earning money much earlier.
Comparing the cost of training or education of two 18-year-olds, along with the extra years of earned income, is telling. It turns out that a dentist will not catch up to a plumber’s total net earnings until they are both well into their 30s. This is good to keep in mind.
Another feature of the non-college graduate jobs involves large differentials for leadership and management skills. Many high school or trade school jobs suffer significant wage stagnation. A 55-year-old electrician earns about as much as a 30-year-old electrician. This prospect changes for skilled workers who move into leader-manager jobs. Whether these skills come from military service, by working into a management job or by starting your own company, the real path to earnings growth for non-college graduates comes from organizing and monitoring the work of others. Knowledge and the ability to lead is a very lucrative combination.
My most important advice is to keep learning. For college student and apprentice alike, the world will change. You will have to work until you are older, due to the fiscal ineptitude of your elders. Technology will change the workplace more in the next 50 years, than in the last and the best guarantee of employment is simply remaining a valuable, flexible employee.
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