25 April 2024

Economic Mobility in America

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The changing economy isn't encouraging. New technologies and globalization are driving deep-seated change—and no one knows for sure what it will mean for most Americans. But one thing is certain: The future will put a premium on technical skill. Educators and employers agree: High school is no longer enough.

Americans have a host of postsecondary options other than a four-year degree—associate degrees, occupational certificates, industry certifications, apprenticeships. Many economists are bullish about the prospects of what they call "middle-skilled" workers. In coming years, according to some, at least a third and perhaps closer to half of all U.S. jobs will require more than high school but less than four years of college—and most will involve some sort of technical or practical training.

Despite our digital-age prejudices against practical skills, Americans are quietly reinventing upward mobility. Consider three often overlooked paths: welder, nurse and franchise manager.

Welder 

The first requirement of any upward path is entry ramps at the ground level.  The second requirement of any good upward path is for training to lead to a job. A third requirement of a good career path is that it must be aligned with economic needs. Many high schools and community colleges teach job skills, but too many of them use outmoded techniques and equipment or steer young people to industries that aren't growing. The best way to stay current is to partner with an employer, who can offer advice about what's in demand, help design curricula, lend equipment, and even provide training.

Training is expensive, and some firms fear that competitors will poach the workers whom they train. But a growing number of farsighted companies grasp the mutual benefit.

This is especially true in a trade like welding, where demand can sometimes seem insatiable. The Bureau of Labor Statistics pegs the average wage at $36,300 a year, but anecdotal evidence suggests that is the low end of what's possible. JV Industrial says that it pays more like $75,000, with some employees earning more than $100,000. In the burgeoning shale industry, in Texas and Appalachia, welders can earn as much as $7,000 a week.

Nurse 

Like construction, nursing is a time-tested path to the middle class, and it has many of the same hallmarks: easy on-ramps, goal-oriented job training and a series of ascending steps, with industry-certified credentials to guide the way.

The profession is already growing robustly. From 2000 to 2010, the number of registered nurses increased by 24%. But the aging of the baby-boom generation will sharpen demand even as it reduces supply: Roughly a third of today's nurses are more than 50 years old.

It sounds insidious—a tracked system with RNs earning some $65,000 year and many licensed practical nurses, or LPNs, starting below $40,000. But appearances can be deceptive. Alongside the three tiers, there are myriad ways that different kinds of students can tap into the programs and transfer among them, building their own upward paths, sometimes over the course of a lifetime.

Franchise Manager 

At first, franchising seems very different from welding and nursing—no technical skills, no required training, no earned industry certifications. But in many ways, it is a looser, market-driven version of the same upward path: Young people start at the bottom of a practical trade and learn by doing.

The hardest step up the franchising ladder is from management to ownership. Franchising is the safest way to start a small business. Though lesser-known brands can pose risks, most outlets open with a popular product and a proven way of doing business. But it isn't cheap to get started: The initial purchase fee is rarely less than $100,000 and usually several times that.

Today's conventional wisdom about economic mobility in the U.S. is gloomy and growing gloomier. We're told that good jobs are disappearing, that less educated workers have bad work habits that the U.S. is falling behind other countries. We are not sure whether the assumption is true or false. One place to start would be by showing some respect for practical training. As millions of Americans know, even in a knowledge economy, countless valuable career skills can be learned outside a college classroom.

Click here to access the full article on The Wall Street Journal. 

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