The labor shortage is pushing American colleges into crisis, with the plunge in enrollment the worst ever recorded (2024)

When he looked to the future, Grayson Hart always saw a college degree. He was a good student at a good high school. He wanted to be an actor, or maybe a teacher. Growing up, he believed college was the only route to a good job, stability and a happy life.

The pandemic changed his mind.

A year after high school, Hart is directing a youth theater program in Jackson, Tennessee. He got into every college he applied to but turned them all down. Cost was a big factor, but a year of remote learning also gave him the time and confidence to forge his own path.

“There were a lot of us with the pandemic, we kind of had a do-it-yourself kind of attitude of like, ‘Oh — I can figure this out,’” he said. “Why do I want to put in all the money to get a piece of paper that really isn’t going to help with what I’m doing right now?”

Hart is among hundreds of thousands of young people who came of age during the pandemic but didn’t go to college. Many have turned to hourly jobs or careers that don’t require a degree, while others have been deterred by high tuition and theprospect of student debt.

What first looked like apandemic bliphas turned into a crisis. Nationwide, undergraduate college enrollment dropped 8% from 2019 to 2022, with declines even afterreturning to in-person classes, according to data from the National Student Clearinghouse. The slide in the college-going rate since 2018 is the steepest on record, according to the U.S. Bureau of Labor Statistics.

Economists say the impact could be dire.

At worst, it could signal a new generation with little faith in the value of a college degree. At minimum, it appears those who passed on college during the pandemic are opting out for good. Predictions that they would enroll after a year or two haven’t borne out.

Fewer college graduates could worsenlabor shortagesin fields from health care to information technology. For those who forgo college, it usually means lower lifetime earnings — 75% less compared with those who get bachelor’s degrees, according to Georgetown University’s Center on Education and the Workforce. And when the economy sours, those without degrees are more likely to lose jobs.

“It’s quite a dangerous proposition for the strength of our national economy,” said Zack Mabel, a Georgetown researcher.

In dozens of interviews with The Associated Press, educators, researchers and students described a generation jaded by education institutions. Largely left on their own amid remote learning, many took part-time jobs. Somefelt they weren’t learning anything, and the idea of four more years of school, or even two, held little appeal.

At the same time, the nation’s student debt has soared. The issue has loomed large in the minds of young Americans as President Joe Biden pushes tocancel huge swaths of debt, an effort the Supreme Courtappears poised to block.

As a kid, Hart dreamed of going to Penn State to study musical theater. His family encouraged college, and he went to a private Christian high school where it’s an expectation.

But when classes went online, he spent more time pursuing creative outlets. He felt a new sense of independence, andthe stress of schoolfaded.

“I was like, ‘OK, what’s this thing that’s not on my back constantly?’” Hart said. “I can do things that I can enjoy. I can also do things that are important to me. And I kind of relaxed more in life and enjoyed life.”

He started working at a smoothie shop and realized he could earn a steady paycheck without a degree. By the time he graduated, he had left college plans behind.

It happened at public as well as private schools. Some counselors and principals were shocked to see graduates flocking to jobs at Amazon warehouses or scratching together income in the gig economy.

The shift has been stark in Jackson, where just four in 10 of the county’s public high school graduates immediately went to college in 2021, down from six in 10 in 2019. That drop is far steeper than the nation overall, which declined from 66% to 62%, according to the Bureau of Labor Statistics.

Jackson’s leaders say young people are takingrestaurant and retail jobsthat pay more than ever. Some are being recruited by manufacturing companies that have aggressively raised wages to fill shortages.

“Students can’t seem to resist sign-on bonuses and wages that far exceed any that they’ve seen before,” said Vicki Bunch, the head of workforce development for the area’s chamber of commerce.

Across Tennessee, there’s growing concern the slide will only accelerate with the opening of several new manufacturing plants. The biggest is a$5.6 billion Ford plant near Jacksonthat will produce electric trucks and batteries. It promises to create 5,000 jobs, and its construction is already drawing young workers.

Daniel Moody, 19, was recruited to run plumbing for the plant after graduating from a Memphis high school in 2021. Now earning $24 an hour, he’s glad he passed on college.

“If I would have gone to college after school, I would be dead broke,” he said. “The type of money we’re making out here, you’re not going to be making that while you’re trying to go to college.”

America’s college-going rate was generally on the upswing until the pandemic reversed decades of progress. Rates fell even as the nation’s population of high school graduates grew, and despite economic upheaval, which typically drives more people into higher education.

In Tennessee, education officials issued a “call to action” after finding just 53% of public high school graduates were enrolling in college in 2021, far below the national average. It was a shock for a state that in 2014made community college free, leading to a surge in the college-going rate. Now it’s at its lowest point since at least 2009.

Searching for answers, education officials crossed the state last year and heard that easy access to jobs, coupled with student debt worries, made college less attractive.

“This generation is different,” said Jamia Stokes, a senior director at SCORE, an education nonprofit. “They’re more pragmatic about the way they work, about the way they spend their time and their money.”

Most states are still collecting data on recent college rates, but early figures are troubling.

In Arkansas, the number of new high school graduates going to college fell from 49% to 42% during the pandemic. Kentucky slid by a similar amount, to 54%. The latest data in Indiana showed a 12-point drop from 2015 to 2020, leading the higher education chief to warn the “future of our state is at risk.”

Even more alarming are the figures for Black, Hispanic and low-income students, who saw the largest slides in many states. In Tennessee’s class of 2021, just 35% of Hispanic graduates and 44% of Black graduates enrolled in college, compared with 58% of their white peers.

There’s some hope the worst has passed. The number of freshmen enrolling at U.S. colleges increased slightly from 2021 to 2022. But that figure, along with total college enrollment, remains far below pre-pandemic levels.

Amid the chaos of the pandemic, many studentsfell through the cracks, said Scott Campbell, executive director of Persist Nashville, a nonprofit that offers college coaching.

Some studentsfell behind academicallyand didn’t feel prepared for college. Others lost access to counselors and teachers who help navigate college applications and the complicated process ofapplying for federal student aid.

“Students feel like schools have let them down,” Campbell said.

In Jackson, Mia Woodard recalls sitting in her bedroom and trying to fill out a few online college applications. No one from her school had talked to her about the process, she said. As she scrolled through the forms, she was sure of her Social Security number and little else.

“None of them even mentioned anything college-wise to me,” said Woodard, who is biracial and transferred high schools to escape racist bullying. “It might be because they didn’t believe in me.”

She says she never heard back from the colleges. She wonders whether to blame her shaky Wi-Fi, or if she simply failed to provide the right information.

A spokesperson for the Jackson school system, Greg Hammond, said it provides several opportunities for students to gain exposure to higher education, including an annual college fair for seniors.

“Mia was an at-risk student,” Hammond said. “Our school counselors provide additional supports for high school students in this category. It is, however, difficult to provide post-secondary planning and assistance to students who don’t participate in these services.”

Woodard, who had hoped to be the first in her family to get a college degree, now works at a restaurant and lives with her dad. She’s looking for a second job so she can afford to live on her own. Then maybe she’ll pursue her dream of getting a culinary arts degree.

“It’s still kind of 50-50,” she said of her chances.

If there’s a bright spot, experts say, it’s that more young people are pursuing education programs other than a four-year degree. Some states are seeing growing demand for apprenticeships in the trades, which usually provide certificates and other credentials.

After a dip in 2020, the number of new apprentices in the U.S. has rebounded to near pre-pandemic levels, according to the Department of Labor.

Before the pandemic, Boone Williams was the type of student colleges compete for. He took advanced classes and got A’s. He grew up around agriculture and thought about going to college for animal science.

But when his school outside Nashville sent students home his junior year, he tuned out. Instead of logging on for virtual classes, he worked at local farms, breaking horses or helping with cattle.

“I stopped applying myself once COVID came around,” the 20-year-old said. “I was focusing on making money rather than going to school.”

When a family friend told him about union apprenticeships, he jumped at the chance to get paid for hands-on work while mastering a craft.

Today he works for a plumbing company and takes night classes at a Nashville union.

The pay is modest, Williams said, but eventually he expects to earn far more than friends who took quick jobs after high school. He even thinks he’s better off than some who went to college — he knows too many who dropped out ortook on debtfor degrees they never used.

“In the long run, I’m going to be way more set than any of them,” he said.

Back in Jackson, Hart says he’s doing what he loves and contributing to the city’s growing arts community. Still, he wonders what’s next. His job pays enough for stability but not a whole lot more. He sometimes finds himself thinking about Broadway, but he doesn’t have a clear plan for the next 10 years.

“I do worry about the future and what that may look like for me,” he said. “But right now I’m trying to remind myself that I am good where I’m at, and we’ll take it one step at a time.”

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The labor shortage is pushing American colleges into crisis, with the plunge in enrollment the worst ever recorded (2024)

FAQs

What is causing the decline in college enrollment? ›

The decline can be attributed to both the decrease in birth rates starting 17 years ago and the decrease in the number of students choosing to attend college for a variety of reasons, explored above. However, the enrollment cliff will not impact all states/regions or types of schools equally.

Why are colleges facing an enrollment nightmare? ›

A botched effort to streamline the financial-aid process may prevent a huge number of students from going to college in the fall. “The College Financial-Aid Scramble,” by Lora Kelley. Students are bearing the brunt of the disastrous FAFSA overhaul.

Is college enrollment down in 2024? ›

Ellie Bruecker, the interim director of research at The Institute for College Access and Success, a non-profit education research organization, said these numbers suggest there will likely be a decline in overall college enrollment in 2024.

Are college graduation rates declining? ›

Overall, undergraduate degree earners fell by nearly 3% in the 2022-23 academic year — the steepest decline ever recorded, the report found, while bachelor's degree earners sank to the lowest level in nearly a decade after notching a one-year loss of almost 100,000 graduates.

Why is everyone dropping out of college? ›

1 in 4 students at risk of not completing college

Among students who are considering putting their education on hold, most said it was due to financial concerns. Others cite a loss of motivation or life change followed by mental health challenges, Sallie Mae found.

What is the main reason for not going to college? ›

College students drop out for a number of reasons, including financial pressure, academic pressure, and struggling to find their feet socially.

Is FAFSA declining in 2024? ›

Only 36% of seniors in the class of 2024 have completed a FAFSA, down 24% from last year. Recent weeks have seen dramatic improvements in FAFSA completions, but many colleges are still bracing for enrollment declines.

What is causing the college student mental health crisis? ›

Peer pressure, loneliness, and suddenly being in an unfamiliar environment can contribute to feelings of isolation that may even lead to depression. Academic stress: College is taxing — emotionally, physically, and financially. The demand to succeed and achieve academic excellence can stress students significantly.

Why do colleges reject good students? ›

Limited spots: Each college has a limited number of available spaces for each incoming class. As the number of applicants increases, it becomes even more competitive for those spots, and even highly-qualified students may face rejection. 2. Applicant pool: The applicant pool can vary widely from year to year.

At what age will college end? ›

The normal age to start college in the United States is 18-19, and the most common degree to pursue is a bachelor's. With this in mind, it's expected that people will finish college with their degree by 22-23.

What does declining enrollment mean? ›

For districts, declining enrollment will mean an eventual loss of funding, as they are funded based on the number of students they serve.

What is the college enrollment projection for 2030? ›

Total enrollment in degree-granting postsecondary institutions. ▲ is projected to increase 8 percent, to 20.5 million, from 2020 to 2030.

What states have the worst graduation rates? ›

At the other end of the spectrum, some states had significantly lower averages. In D.C., the average high school graduation rate was nearly 73% in the 2021-2022 academic year, the lowest of any state. Other states with lower graduation rates – under 78% – include New Mexico, Arizona and Alaska.

Why are less students going to college? ›

Tuition inflation might be another factor behind the college enrollment decline. In a 2022 BestColleges survey, more than 6 in 10 Americans said that the financial burden of earning a degree made college inaccessible. Since the pandemic, the college enrollment decline has accelerated.

What college has the highest graduation rate? ›

Colleges with highest graduation rates
  • Princeton University. 98.4%
  • Harvard University. 98.1%
  • Kenyon College. 98%
  • Yale University. 97.5%
  • University of Pennsylvania. 97.1%
  • Massachusetts Institute of Technology. 96.9%
  • Stanford University. 96.5%
  • Williams College. 96.4%
Apr 23, 2024

Why are college admission rates going down? ›

Students Are Applying To More Schools

The driving factor behind declining acceptance rates at top schools is the growth in the number of applicants at these schools. Top schools which include major research universities and private liberal arts schools are seeing a massive growth in the size of their applicant pool.

What is the #1 reason students drop out of college? ›

Often, the primary reason students drop out of college is financial, and some are even choosing not to attend college after graduating high school. In our work with families, we've seen that students often want to choose to go to colleges they can't afford.

Why are so many people getting rejected from college? ›

Poor fit and lack of demonstrated interest are among the common reasons college applications are rejected. Given the volume of college applications each year, admissions officers have tough decisions to make when it comes to filling limited seats.

Why going to college is not for everyone? ›

Whether you should go to college depends on your career goals, financial situation, and desire to learn in a rigorous environment. The high price of attending college can make higher education a gamble, but it may be worth the risk if you generally like school or wish to pursue a career that requires a degree.

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