Gen Z showing increasing interest in job specific programs
For decades, attending a four-year college has been considered by many young people and their parents as a prestigious and essential path for future success. And while that is still true for many, the costs of a four-year degree have been increasing significantly while the needs of the workforce have changed. Increasing numbers of Generation Z, and even those who are older, are now likely to enroll in less expensive and more job specific vocational training.
“Simply put, vocational training teaches young people what they need to get a good-paying job here in Mississippi,” said State Treasurer David McRae. “Moreover, the demand for workers with vocational skills is only anticipated to grow. In fact, jobs requiring vocational training are expected to grow by 10 percent over the next decade, compared to four percent for other forms of training.”
Vocational training is more in line with the types of jobs available. About 77 percent of jobs in Mississippi require a two-year degree or less.
“You hate to say it this way, but Mississippi doesn’t need a bunch of English majors,” said McRae. “What we need are some plumbers, nurses and mechanics. The good news is that if you want a job in this state, you don’t need to go tens of thousands of dollars into debt. The better news is that a lot of these jobs are good paying, too. The nationwide average salary for a dental hygienist is around $80,000; an electrician, around $67,000. These are good jobs with an affordable education path.
The average student loan debt in the U.S. is in the range of $37,000. When you add interest rates averaging 7%, graduates can struggle to afford to purchase a home and pay bills with the burden of student loan debt. That is why, McRay said, about 75% of Gen Z are interested in vocational training.
“For the past decade, these young people have seen college tuition prices skyrocket while post-graduate incomes stagnate,” said McRae. “This pent-up demand for vocational training is one of the things that led my team and I to expand the mission of our 529 education savings program. For years, the Treasury focused on helping families save for a four-year degree. But today, our plans can be used for almost any kind of training, from vocational education to apprenticeships to the actual tools you need to do on-the-job training. We’re seeing a lot of young families who take advantage of this watch as their kids enter the workforce with little-to-no educational debt. That’s a huge leg-up for their future.”
What are the hottest programs? McRae doesn’t like to pick one program over another, but says this: Learning a trade often becomes a business opportunity. “Whether you’re looking at becoming a graphic designer or an HVAC technician, the skills you acquire can quickly lead down the path of entrepreneurship,” said McRae. “To me, that’s one of the most exciting prospects as we look to expand vocational education programs in Mississippi.”
McRae announced recently the state’s 529 program has rebranded to become Mississippi College and Career Savings. The name change better reflects the true capacity of the program, which can be used for traditional four-year colleges, as well as vocational programs, apprenticeships and other career training.
“For years, Mississippi’s college savings program has helped put educational goals within the financial reach of hundreds of families,” said McRae. “Over the years, however, our mission has evolved to better align with Mississippi’s workforce needs. A name change is a small adjustment, but I’m hopeful it helps expand Mississippians’ understanding of everything our team can help them pursue.”
The state’s community colleges focus on providing the kind of education—either short-term programs or two-year degrees—that are needed to satisfy the workforce demands in the state.
“The importance of it is the direct pipeline to the workforce,” said Jonathan W. Townes, Vice President of Career and Technical Education, Hinds Community College. “For all community colleges, demand is important in determining what we teach in order to satisfy the need within the state. The increase in the number of short-term training as well as specific training programs are a result of partnering with industry to see what the needs are. When you think about career and technical, you also have to think about workforce education. Those two things work hand-in-hand.”
It isn’t unusual for someone with a four-year college degree to come back to get vocational or technical training. Townes said the data is showing the number of people with four-year degrees returning for vocational training has increased.
Townes is excited about the conversation going on with the state workforce agency, Accelerate MS, as well as Institutions of Higher Learning regarding continuing to identify the needs of new industries and businesses that are locating or expanding in the state.
“Identifying those job needs on the front end has really helped,” said Townes. “We have been training people for a diversity of jobs including those that will be available at the new Amazon data center.” Amazon Web Services has committed to spend $10 billion to construct two hyperscale data centers in Madison County.
Townes said the demand for networking and cyber security employees is increasing in all businesses and industries. There are also increasing needs in construction trades with many older workers retiring. The shortages are particularly acute in electrical where it is estimated that for every 10,000 electricians retiring, only 7,000 new electricians are entering the workforce. That is a huge concern as demand for electricians, including those needed to add transmission lines and install new clean energy projects, is increasing.
Townes said there is also great demand for skilled workers in other areas of construction like plumbing and HVAC, and in welding and automotive.
“We do have to prepare a new generation of talent needed for the industry,” said Townes. “A lot of people going into these trades are interested in entrepreneurship. A lot of individuals are starting their own companies instead of working for someone else. It is satisfying the need for industries as well as accounting for people’s desires to own their own businesses.”
Townes said they have two separate divisions, for credit education and for the non-credit workforce development. While two separate divisions, Townes said they make bridges to create training based on what the workforce needs. “There is no way to talk about one without the other,” he said.
One of his favorite parts of the job is seeing students who have been in and out of school, and have the determination, perseverance and support to graduate from a career or technical program.
“These students often already have a job before they walk the stage at graduation,” said Townes. “It is really monumental. We aim to support the students so they can truly build into their passion and be successful in their profession.”
