Economic Impact of Career Schools in Texas

http://www.ccst.org/articles/43/1/Economic-Impact-of-Career-Schools-in-Texas/Page1.html

By Jennifer George

Published on 10/6/2007

Source:Career Colleges & Schools of Texas

Date: Oct. 21, 2004

Citing the powerful impact that private career colleges and schools have on the state's economy, detailing the creation of more than 70,000 jobs in the state last year, and the nearly $9 billion in urban and rural spending, Career Colleges & Schools of Texas, the statewide stakeholders group, unveiled in October 2004 their updated report performed statewide by the well-respected Perryman Group of Waco, Texas. This most recent study, updating the original study conducted in January 2001, found that graduates of career colleges contribute significantly to the Texas economy'both in jobs and local impact to the region in which they operate. As stated in the report, "Private career colleges are an integral source of training for tomorrow's workforce, helping to ensure optimal performance of the Texas economy. By improving competitiveness and capacity of the workforce of Texas, private career colleges and schools enhance economic activity." "The economic benefits are clear," the report stated. "They accrue to the individuals receiving the training, the companies employing them, and the economy as a whole."

In 2003, there were over 100,000 students attending private career colleges and schools in the state. The Texas Workforce Commission reported that 77.3 percent of the graduates of these schools seeking placement secured a job that was relevant to their training. In addition to documenting such substantial gains for the Texas economy and the students involved, the study found that private career colleges and schools are offering programs in fields - such as computer technology and health care - in which Texas is currently facing a shortage of skilled workers. The report cites that the total economic benefit of 2003 graduates currently employed on business activity in Texas includes:

$8.982 billion in annual Total Expenditures;
$4.659 billion in annual Gross Product;
$3.122 billion in annual Personal Income;
$1.275 billion in annual Retail Sales; and
70,167 Permanent Jobs.

The report indicates that despite these important benefits, there remains the opportunity for private career colleges and schools to have an even greater impact. For Texas, the report identified computer support specialists, software engineers, and desktop publishers as occupations with the highest projected job growth; each are expected to experience growth rates of between 75 and 85 percent over the next decade. Nationwide, occupations like network systems analyst and medical assistants will experience 50 to 60 percent growth rates. Private career colleges and schools specialize in training workers for these specific fields. This report adds to the growing evidence that private career colleges are vital contributors to the Texas workforce. The Perryman report supports now being the time to form a partnership with the State Legislature, industry and educational institutions to address the growing demand for skilled workers in Texas.