Economic Effects on Trade Schools

Like any facet of the country and especially the work force, trade schools have felt the effects of the recent economic downturn. While the president has announced that the recession is over, the aftermath and direct effects of economic turmoil have influenced every corner of the education world, including trade schools and community colleges. However, the effects may not necessarily be as negative in comparison to other portions of society; in fact some are positive.
  1. Cost of Tuition and Supplies

    • In a general sense, the cost of education has risen over the past decade. This is a normal trend but may have been exacerbated by the recent state of the economy and the rising cost of tuition. In addition, economic downturns force corporations to change the pricing of products. This contributes to the cost of schooling, particularly in relation to trade programs which are typically built around hands-on training with specialized equipment in medical fields, mechanical fields and other technology related industries.

    Age of Trade Students

    • One of the most noticeable effects of the recession has been the rise in the age of trade students. In comparison to standard four-year schools, the population of older students has always been higher but its reached a peak over the past five years. In a July 2009 article in USA Today, Clay Carey reported that "many of the newcomers at [a] Murfreesboro [Tennessee] trade school are in their 40s and 50s --- twice the age of the typical student." As more and more middle aged employees are laid off or lose their jobs to overseas competition, Americans are turning in droves to trade schools and the specialized, work-oriented learning they provide.

    Enrollment in Trade Programs

    • In these tough economic times more students are seeking a specialized education and a clear career track, which has drastically affected trades schools and community colleges. According to USA Today, "as economic struggles and unemployment plague much of the nation, vocational schools across the USA are seeing significant spikes in enrollment." States such as Colorado have seen a 10 percent increase in enrollment for community colleges over the past three years and the rest of the country is seeing a similar trend.

    Government Funding for Community Colleges and Trade Schools

    • One of the most surprising developments of the recent recession has been the Obama administration's willingness to contribute to local trade and community colleges. By funding trade schools and two-year colleges, the administration hopes to combat the high unemployment rates created by the recession. The approach is a proactive way to curb the number of Americans currently on unemployment and other government funded programs. As schools are given more funding, they can increase the number of students accepted and hire more teachers, both of which aid in turning around the economy.

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