Higher Education, Employers, State Must Respond to Accelerating Demographic Changes to Meet Economic Challenges

“We can no longer ignore inequities faced by people of color and low-income individuals,” stressed a 2020 report by the New England Board of Higher Education and the Strada Education Network, looking at the region’s employment, education and prospects for economic growth.

In a survey earlier this year, two-thirds (67%) of Hispanics in New England perceived a need for additional education, as did just over half (55%) of Blacks surveyed and just over one-third (36%) of Whites.  The Strada-Gallup Education Consumer Survey included adults age 18-64 across New England. 

And the demographics of future students are changing dramatically.

The number of White high school graduates in the region is projected to fall 25% by 2032, the report points out, while the number of high school graduates of color will increase significantly—by 46% among Hispanics, 7% among African Americans, 2% among American Indian/Alaska Natives and 37% among Asian/Pacific Islanders.

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Those numbers, and the ramifications of COVID on the current workforce, underscore the need for action across the board by employers, policymakers and educators, according to the report, Upskilling New England: Bridging the Gaps Between Educators and Employers. Upskilling, as defined by Aspen Institute’s UpSkill America Initiative, refers to “education, training and development that prepares someone for advancement in the workforce.”

“Given the present circumstances,” the report implores, “it is more important than ever that higher education leaders band together to innovate by adjusting delivery models, partnering with employers and creating pathways to in-demand jobs in order to meet the needs of current and future members of our workforce.”

“Higher education is New England’s most sustainable resource and a lynchpin to future success,” the report states. “However, it must adapt and innovate to better deliver education and training where and when individuals need it most.”  It maintains that “all unemployed, underemployed and employed people in New England need access to:

  • Affordable, industry-validated, marketable upskilling opportunities

  • Collaboration between employers and education providers

  • Stackable, transferable credentials and lead to family-sustaining wages

The report issues a challenge to the region’s leaders:

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“People of color will soon fuel New England’s population and future economic growth, but historical data show that education systems often fail to meet these students’ needs. Closing these gaps is not only a matter of social justice, but also one of economic stability and growth potential.”

It notes that New England high school graduation numbers peaked in 2009-10 and are expected to decline by 14% by 2032, adding that New England’s higher education institutions should expect a 25% drop in traditional-aged college-going students by the end of 2030.

Connecticut is one of three New England states with the largest gaps in post-secondary achievement, according to the report, relying on data provided by the Lumina Foundation.  In Connecticut, 55.7% of Whites have a post-secondary degree, as compared with 31% of Blacks and 23.4% of Hispanics.

The report, which focused on the need for effective policies to encourage upskilled to propel both the regional economy and the economics of individual families, pointed out that “State policy is a critical lever in scaling and replicating interventions that work.” It also cited potential policies that the New England States should consider, which are now in place in some jurisdictions across the country, including:

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  • Grants and/or targeted financial aid for working adults seeking to advance their careers or alter their career paths

  • Expansion of state/federal childcare subsidies for parents enrolled in education and training programs

  • Supporting wider acceptance of postsecondary credit for recognized work and learning experiences

  • Implementing state grants, loans or tax breaks for small- and mid-sized employers to create, partner with or adopt upskilling programs for their employees

The report also notes that “expanded effective models of education and training will need to be created to meet labor market demands, overcome employer-reported skills shortages, and satisfy workers’ appetite and desire for additional training opportunities.”  And it specified that higher education across the region “must adapt and innovate to better deliver education and training where and when individuals need it most.”