Monday, September 1, 2014

Decades of Decline In Salaries For Non-College Degreed Workers

Last February, Pew Research issued their latest results for college vs non-college educated worker's incomes for those aged 25 to 32.  In my opinion, the most important item in Pew's commentary is this pictorial:

Obviously, the chart shows that having a college degree pays off.  However, it also shows that the demand for college degreed workers is high; resulting in ever-increasing salaries.  In fact, the demand is so high that many of these jobs remain unfilled. That is why, every month, this country must issue 125,000 new work visas to foreign workers in order to fill the void. Most of these openings are for high tech positions in Information Technology.

At the same time, the number of opportunities for non-degreed employees is falling, indicating that too many undereducated workers are vying for too few jobs.  As a result, employers can offer lower wages and there will still be enough jobless willing to accept that lower wage.

If we want to solve income inequality in this country, something needs to be done about our failing educational system, and the fact that getting a college degree is the linchpin for getting a better job and higher pay.  Our leaders need to emphasise the importance of education and, at the same time, stop talking down big business because, without big corporations, the best paying jobs wouldn't exist.


Cutting Through The Fog: Failing Education: The True Cause Of Income Inequality:

Pew Research: The Rising Cost of Not Going to College:


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