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Educational Market Dynamics

A market of opportunities.

The market for post-secondary education is sizeable and growing, with total expenditures expected to increase from $213 billion to $303 billion between 1998 and 2010. Specific market factors affect the enrollment status of post-secondary institutions.

1. Increased demand for skilled labor.

• According to the Bureau of Labor Statistics, the percentage of professional and technical jobs in the United States grew from 15.7 percent in 1988 to 17.6 percent in 1998, and is projected to increase to 19.4 percent in 2008.
• The total number of professional and technical jobs is projected to reach more than 31 million by 2008.
  

2. Increased number of new high school graduates.

• The number of new high school graduates is growing for the first time in 25 years.
• The Department of Education projects a 13.7 percent increase in annual high school graduates between 1998 and 2010, from 2.7 million to 3.1 million.
  

3. Perceived economic value of post-secondary education.

• Completion of post-secondary education leads to considerable and measurable improvements in the financial prospects of graduates.
• On average, a person with an associate’s degree earns 30 percent more than a high school graduate, while a person with a bachelor's degree earns 77 percent more than a high school graduate.

4. Increased opportunity for students to attend college.

• According to the National Center for Education Statistics (NCES), 55 percent of the 16.5 million undergraduate students enrolled during 1999 and 2000 received some type of financial aid assistance.
• The availability and types of financial assistance is projected to increase over the next few years at the federal and local level.

5. Increased budgetary constraints at public colleges.

• Federal, state and local budgets for post-secondary institutions have experienced limited growth, causing budgetary constraints and slowed expansion at traditional colleges.
• Slowed start-up of new proprietary education companies creates the opportunity for well-capitalized proprietary institutions to thrive and grow.