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College is, and will continue to be, a critical pathway for educating our country’s future workforce. However, college serves less than half of each high school graduating class in America.
That’s problematic because employers are increasingly looking to hire individuals with postsecondary competencies and skills. It’s clear we need a new education and training pathway to serve a higher percentage of high school students and better meet the needs of our economy.
Americans aged 25 to 34 years old who graduate with a bachelor’s degree and work full time year-round have higher median annual earnings ($66,600 compared with $41,800) and employment rates (88% compared with 74%) than those with only a high school diploma. Those with an associate’s degree also fare better, with median annual earnings of $49,500 and employment rates of about 80%.
However, most high school graduates don’t earn a college degree. The most recent national data shows that the six-year college completion rate was 62% and the college enrollment rate for this same cohort was also 62%. This means about 38% of high school graduates successfully earned a college degree within six years. Indiana’s college enrollment and completion rates for this same cohort are about the same.
American businesses, including those in Indiana, are already feeling the pinch. By 2031, 72% of U.S. jobs will require some form of postsecondary education and/or training. With just 39% of Indiana adults aged 25 and older with an associate degree or higher, we are not on track to meet that demand. To close the skills gap, we must find a new way to prepare students for in-demand careers that can work in tandem with the existing college pathway.
Last month, I completed a third site visit to Switzerland through CEMETS iLab Indiana, an initiative I co-chair alongside First Internet Bank Chair and CEO David Becker. The iLab will release a plan later this summer detailing how Indiana can establish an employer-led education and training pathway that starts in high school.
Why Switzerland? About two-thirds of Swiss 10th-grade students enroll in a three- to four-year paid, year-round apprenticeship that typically consists of two days of school and three days of work. Students have robust career exploration opportunities beginning in eighth grade to help them choose either a university or an apprenticeship pathway. If students and their families decide an apprenticeship is the right option, students select from about 240 occupations spanning the entire economy. Upon completion, apprentices earn a federal diploma with broadly recognized labor-market value and can begin working full time.
What’s more, Switzerland’s system is designed with flexibility in mind, enabling students to change pathways as they gain experience and get a better feel for their career interests and aspirations. About one-third of students who complete their apprenticeship opt to continue with higher education, further expanding their career opportunity set.
College will continue to be a critical pathway for educating our country’s future workforce. However, college serves less than half of America’s youth. We’re on our way to developing a new education and training pathway in Indiana that will prepare additional high school students for in-demand careers in partnership with K-12 and higher education. I encourage you to learn more at RMFF.org/iLab.•
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Fiddian-Green is president and CEO of the Richard M. Fairbanks Foundation, whose mission is to advance the vitality of Indianapolis and the well-being of its people. Send comments to ibjedit@ibj.com.
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