California’s competitive economic edge may be at risk unless the state
can meet a growing demand for highly educated workers and replacements for retiring
Baby Boomers with college educations, according to a new study based on research
by Sacramento State’s Applied Research Center.
Researchers predict that
by the year 2022, one of every three jobs in California will require at least
an associate degree, bachelor’s degree or more, compared with one in four
now. In addition, 1.4 million workers with a college education in California
are expected to retire by then.
The study urges a sustained
focus on higher education by state leaders if California is to continue as an
economic power not only in the United States but also throughout the world.
“Unless we
are able to provide a college education to more students, California won’t
be able to meet the demand for highly educated workers like we have in the past
and we could lose our competitive edge,” said Sacramento State Professor
Robert Fountain, research director at the Applied Research Center and an expert
on economic impact analysis.
The center was commissioned
by the California Business Roundtable and the Campaign for College Opportunity
to conduct the study titled “Keeping California’s Edge: The Growing
Demand for Highly Educated Workers,” which was just released.
The study also
notes that the largest portion of the demand for workers with higher-education
degrees will be at the bachelor’s degree level, although there also will
be sharp increases in the need for those with associate and graduate degrees.
Between 2002 and 2022, the study predicts, there will be a need for another
1.2 million workers with bachelor’s degrees, 287,000 with associate degrees
and 212,000 with master’s and professional degrees. Jobs in sectors expected
to grow most rapidly—education, healthcare, and professional, scientific
and technical services— face the greatest shortage of college-educated
workers.
A small increase in the
number of college-educated workers could produce big dividends for California,
according to researchers. They found that a one percent increase in the share
of the population with a bachelor’s degree combined with a two percent
increase in those with an associate degree or some college, results in $20 billion
in additional economic input, $13 billion in value added to the state’s
economy, $1.2 billion more in state and local tax revenues annually, and 174,000
new jobs.
Based on the findings, the
study recommends that California’s leaders view workforce needs as a critical
reason for providing college opportunity and for assessing progress in meeting
the state’s higher education goals. The study also calls for the California’s
community colleges and public universities to take steps to provide the number
of graduates needed to match expected workforce needs.
Employers, business associations,
labor unions and economic development agencies also need to work closely with
schools and policymakers on educational preparation for the state’s workforce,
the study recommends. And the report also urges attention to workforce development
needs for occupations not requiring college degrees or postsecondary vocational
education.
