Economy

According to InsideHigherEd.com, a report released by Moody's, Converging Forces Will Squeeze Budgets for Many Colleges and Universities, projects institutional expenses will skyrocket in the 2022-2023 academic year due to wage inflation, labor shortages, and a nationwide hiring push.

Employers have long cited an inadequately skilled workforce as the primary reason jobs go unfilled. However, there is considerable debate over whether a mismatch truly exists between workers' skills and employers' needs. A report from the Congressional Research Service, Skills Gaps: A Review of Underlying Concepts and Evidence, notes the possibility of other contributing factors such as:

The Washington Post recently reported that enrollment at colleges nationwide "has shrunk more than five percent since 2019." However, the impact has been greater on regional colleges and universities that serve disadvantaged students. For example, institutions in the western region of Pennsylvania have been affected by stagnant population growth, the pandemic, and increasing wages that make working a more appealing option than studying.

Numerous studies have correlated educational attainment with wealth attainment. Earning at least a bachelor's degree is associated with better economic outcomes, including higher wages and lower rates of unemployment. However, a study by Pew Research Center revealed an economic disparity between first generation college graduates versus those who had at least one college-educated parent.