April 19, 2024

Shortcuts: A Quest to Make College Graduates Employable

It’s that last part of the equation that I’m going to focus on. My heart sinks every time I read a news story or opinion piece quoting employers who charge that four-year colleges and universities are failing to provide graduates with the skills they need to become and remain employable.

Of course, in many ways, this isn’t a new story.

“A four-year liberal arts education doesn’t prepare kids for work and it never has,” said Alec R. Levenson a senior research scientist for the Center for Effective Organizations at the University of Southern California.

Mara Swan, the executive vice president of global strategy and talent at Manpower Group, agreed.

“There’s always been a gap between what colleges produce and what employers want,” she said. “But now it’s widening.” That’s because workplaces are more complex and globalized, profit margins are slimmer, companies are leaner and managers expect their workers to get up to speed much faster than in the past.

“Employers are under pressure to do more with less,” Ms. Swan said.

Unemployment rates for those with bachelor’s degrees or higher are still much better — at 3.8 percent in May — than those with only a high school diploma, which was 7.4 percent in May, according to the U.S. Bureau of Labor Statistics.

Nonetheless, a special report by The Chronicle of Higher Education and American Public Media’s Marketplace published in March found that about half of 704 employers who participated in the study said they had trouble finding recent college graduates qualified to fill positions at their company.

But, surprisingly, it wasn’t necessarily specific technical skills that were lacking.

“When it comes to the skills most needed by employers, job candidates are lacking most in written and oral communication skills, adaptability and managing multiple priorities, and making decisions and problem solving,” the report said.

Jaime S. Fall, a vice president at the HR Policy Association, an organization of chief human resources managers from large employers, said these findings backed up what his organization was hearing over and over from employers.

Young employees “are very good at finding information, but not as good at putting that information into context,” Mr. Fall said. “They’re really good at technology, but not at how to take those skills and resolve specific business problems.”

This isn’t a dilemma just in this country, but around the world, Ms. Swan said. A global study conducted last year of interviews with 25,000 employers found that nine out of 10 employees believed that colleges were not fully preparing students for the workplace.

“There were the same problems,” she said. “Problems with collaboration, interpersonal skills, the ability to deal with ambiguity, flexibility and professionalism.”

But it’s easy for the issue to degenerate into finger-pointing.

“If you sat down with a committee of professors, and told them students are not coming out with the skills they need, they would say, ‘you’re smoking something,’ ” Mr. Levenson said. “The trouble is, those skills are applied in a college context, not a workplace context.”

But, he added, “you can’t create a school-based curriculum that can help someone transition to being highly productive on the job in 10 days.”

In other words, the onus shouldn’t just be on universities; employers also need to step up to the plate.

The in-depth training programs and apprenticeships of the past are unlikely to come back, so companies must become more innovative in helping young employees come up to speed, according to a report released in May by Accenture, a management consulting and outsourcing company.

“Rather than simply bemoaning the inability to find employees with the skills required for available jobs, organizations must step up with new and more comprehensive enterprise learning strategies,” Accenture stated in a summary of The Accenture 2013 College Graduate Employment Survey, which queried 1,010 students graduating from college in 2013 and 1,005 who graduated in 2011 and 2012.

The problem, it said, is that most recent college graduates expect employers to provide on-the-ground training, but most of them don’t actually receive it.

E-mail: shortcuts@nytimes.com

Article source: http://www.nytimes.com/2013/06/29/your-money/a-quest-to-make-college-graduates-employable.html?partner=rss&emc=rss

Economix Blog: Judith Scott-Clayton: Student Loan Debt: Who Are the 1%?

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Judith Scott-Clayton is an assistant professor at Teachers College, Columbia University.

A continuing refrain of Occupy Wall Street protesters has been “student debt is too damn high,” as James Surowiecki wrote in The New Yorker. In some cases — like for the college graduate profiled in a recent article in the Chronicle of Higher Education who has $100,000 in debt and uncertain job prospects — this is unarguably true. But such cases make for dramatic reading precisely because they are so rare.

Today’s Economist

Perspectives from expert contributors.

The first thing to note is that most of those with that much debt have graduate degrees; it is difficult to accumulate that much debt in an undergraduate program. The chart below shows the percentage of beginning undergraduate students who, six years later, had accumulated more than the indicated levels of debt.

Only one-tenth of 1 percent of college entrants, and only three-tenths of 1 percent of bachelor’s degree recipients, accumulate more than $100,000 in undergraduate student debt. If you have more than $75,000 in undergraduate debt, you are the 1 percent – just not the 1 percent you might have been hoping for.

U.S. Department of Education, Beginning Postsecondary Students Survey (2009)

Even among recipients of bachelor’s degrees, 90 percent manage to graduate with less than $40,000 of debt. What happened to the other 10 percent is no particular mystery: they are less likely to come from wealthy families, but they attended pricier schools and paid for more years of tuition (see chart below). Compared with other graduates, these students are 20 percentage points more likely to have attended schools costing $20,000 or more a year (including room and board), and 20 percentage points less likely to have attended a public institution. Ten percent attended a private for-profit institution, compared with only 1 percent of their lesser-borrowing peers. High-borrowing students also took significantly longer to finish their degrees.

U.S. Department of Education, Beginning Postsecondary Students Survey (2009)

With a bachelor’s degree, even $40,000 may be a manageable level of debt over the long term. But for those who are unemployed – including 9.1 percent of the 20- to 24-year-old college graduate labor force and 20.4 percent of their peers with no college degree, according to a recent report – even much smaller amounts may be unmanageable in the short term.

Those who are struggling with their payments may be able to take advantage of deferments and forbearance provisions on the federal portion of their loans to help get them through the economic downturn. They probably should not hold their breath waiting for Congress to pass legislation forgiving all student loan debt, an idea some Occupy Wall Street protesters have advocated but which economists have panned.

In an effort to respond to this proposal, the Obama administration recently took several executive actions that will lower repayment burdens for some borrowers; for those enrolled in the income-based repayment plan, the changes could reduce monthly payments by a third.

Surprisingly, though, neither the protest movement nor the administration is talking about the imminent doubling of student loan interest rates. Congress temporarily reduced interest rates to 3.4 percent for subsidized loans originating in 2011-12, but beginning next summer the rate for new loans will rise to 6.8 percent.

I asked Mark Kantrowitz, publisher of Fastweb.com and FinAid.org, why there hadn’t been more pressure to extend the interest rate reduction, especially given that the government turns a net profit on its student loan programs. He noted that these profits help pay for Pell grants and other student aid programs and said that many student aid advocates feared that any extension of loan interest reductions would necessitate larger cuts elsewhere.

Given a choice between allowing interest rates to rise or cutting Pell grants, he said in an e-mail, “cutting the interest benefit is the lesser of two evils.”

This is probably true. Unlike changes in Pell grants, changes to the interest rate affect loan repayments years in the future, not students’ ability to pay for college now. And because the change only applies to new loans, many people most likely to be affected are primarily occupying high school classrooms, not Zuccotti Park.

Article source: http://feeds.nytimes.com/click.phdo?i=12bf8fa853872a34d0436a4ecf6317fd