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Show THE Page 14 OGDEN VALLEY NEWS March Volume XIII Issue X 1, 2006 Lifetime Value of a College Degree dlr] ele) NI Pye) tah Foundation’s December 2005 report entitled “What is a college degree worth?” found that many Utah college graduates are earning less than $30,000 in their first year after graduation. — CONnCe starting ulate of Utah graduates. However,‘t should be noted that the value ofa four year college degree cannot be adequately assessed by examining only the starting salaries of graduates. This brief will more deeply explore what a college degree is worth to graduates over their lifetimes. Job Opportunities According to Utah occupational projections by the Utah Department of Figure 3: Five Star Jobs ly 80,000 new jobs. In contrast, the share of jobs requiring some post-secondary training or an associate’s degree will increase by 0.3% and those ae Ser on-the-job training will decrease by 0.9%. [1 In addition t an ene share of job opportunities, those with at least a bachelor’s degree enjoy better quality ie. opportunities. TI | ill I salaries as Wellwel as enjoying increased professional mobility. While certainly gains in earning an associate’s r receiving some post-secondary education, the gains are limited when compared with the oppor- average ‘Source: Census Bureau In contrast, the unemployment rate dipped to 2.1% for those with at least a bachelor’s degree. 2 Lifetime Earnings While Utah Foundation’s December 2005 report found that many first year college graduates were earning less than $30,000, graduates considers to be “five star” jobs. Among the a bachelor’s degree, while only require an associate’s degree or postsecondary vocational tion of unemployment rates by educational attainment reveals that the greatest employment levels are enjoyed by those with a bachelor’s degree or higher. Based on data from the 2003 with ae Nejckdal four-year degree will I; the Sonne earn significantly | 2sco2pyeurs higher earnings over soar course of their lifetime. According setter Scheel Wana Some Associate's Bachelor's Master's Profeulonal Doctoral] 19280 nao 24977 me 28,186 s6si6 saris Sassi mas non eit atom eRe) sraa bachelor’s degree LS“eo* holder will earn about $2.5 million over 40 years, while associate’s degree holders earn about $1.8 million, and high school graduates earn $1.4 million (Figure 4). [4] A bachelor” s degree in lifetime earnings is worth over $1 million more than receiving only a high school diploma. Also, obtaining an advanced degree can mean even greater lifetime earnings. Work Experience Starting salaries for many graduates are often low because of a lack of work experience. Most students of four-year colleges attend school fulltime immediately after graduating from high school, leaving students with little opportunity to gain relevant work experience. Therefore, while starting salaries are significantly lower than the aca esas ae? Liane 609 aS saat tlewss sap0o] Cents who had 10 internship OX Derience. [8] For exam- When COLLEGE DEGREE KEN TURNER-801.710.8800 KEN@PINEVIEWREALESTATE.INFO -801.458.7331 HEIDI@PINEVIEWREALESTATE.INFO PINEVIEW ESTATES NOW TAKING RESERVATIONS! BRAND NEW, GATED COMMUNITY ABOVE RADFORD HILLS WITH BIRD’S EYE VIEW OF PINEVIEW RESERVOIR. CC&R’S, VIEW CORRIDOR PROTECTION, AND MORE! 0 to WOLF LODGE CONDO WITH AYN) AAAS 94:) 2 ON $239,000 ls CREEK. COMMUNITY PARK, BUS RSM NTO tS) athe EST 000 + * ¢ ¢ ¢ ¢ of cont. on page 15 Experience Counts... NEWLY LISTED i AT We TOP OF ae HILLS IN HUNTSVILLE. LARGE LOT BACKS OPEN SPACE, VIEWS OF SNOWBASIN PRICED REDUCED! DON’T MISS THIS Pal 69% tah graduates who comon plete d internship receive salaries above $30,000, whereas a one fell to 42% for those who did not The National Association of Colleges and Employers (NACE) found in its 2005 Experiential Education Survey that “44.9 percent of employers said they offer higher salaries to new hires with co-op/internship experience than they offer to those without such experience.” NACE also reported that employers offered fulltime employment to 52.3 percent of interns. [9] Major/Concentration Overall, starting salaries are largely determined by a graduate’s chosen field of study. While the purpose of a college education can Choose the #1 Realtor in Valley Wide Sales 2002, 2003, 2004, 2005... HEIDI WILLIAMS ple, oon | University of 6752——ITRABL ey) . NEWLY RENOVATED EDEN HOME BACK OPEN SPACE, VAULTED CEILINGS, HICKORY FLOORS, MOTHER-IN-LAW One $425,000 GORGEOUS TASTEFULLY DECORATED HOME IN THE PRESERVE, GREAT VIEWS, IMMACULATE! $550,000 with Also, according to the Utah Department orkforce Services, many higher paying jobs require at least three to five years of relevant work experience in addition to a college degree. [6] Therefore, many lower earning first-year graduates will be in position to move to a higher paying job in a few years. Census estimates show that there are significant increases in earnings for bachelor’s degree holders until they reach their mid-50s (Figure 6). The largest increase in earnings ($9,238 on average) occurs between the 25 to 29 year old cohort and the 30 to 34 year old cohort. [7] Internships Utah Foundation, in its December 2005 publication, reported that on average, bachelor’s graduates from all Utah schools who completed an internship received signifi cantly higher startir salaries than those stu- to the Census 2690432570 go SRI Bureau, on average a | Nets: esata based on fulbtlme year-round employment training (Figure 1). It should be noted that occupations requiring onthe-job training will still account for a larger number of new jobs: By 2012, at least a bachelor’s — degri will be required for nearly 19.8% percent of workers compared to 19.2% percent in 2002 (Figure 2). Although the 0.6% increase may not seem like much, it represents an increase of near- of those within the same position can dramatically increase with experience. Current Population Survey, the statewide unemployment rate for persons 25 years and older with high school diplomas was 4.2%. Interestingly, unemployment rose to 4.4% for those who have 1 Pact Pp : Services (DWS), from 2002 to 2012 Utah will add 365,680 jobs or an increase in total employment of nearly 31% 2002. From 2002 to 2012, occupations that typically require higher education will earnings more experience, future earnings 4 LOTS REMAINING IN ne RANCH ESTATES. PREMIER SUBDIVISION WITH 350 Di MOUNTAIN VIEWS, RIVER FRONTAGE, PROTECTIVE COVENANTS. MUST SEE! Land Available: PINEVIEW ESTATES LAKE VIEWS -GATED $459k - $499k | ACRE RIVERS EDGE LoTs $299k (FOR RESERVATION) RIVER RANCH — 5 To12 Ac. Lots $545k « $915k THE PRESERVE AT SHEEP CREEK STARTING AT $ 185K DURFEE CREEK VIEW LoTs $250 - $450k THE SUMMIT @ SKI LAKE GATED COMM. FROM $450K |