Tag: tightens

  • As Job Market Tightens, More Californians Are Heading Back to College – The 74

    As Job Market Tightens, More Californians Are Heading Back to College – The 74

    “When the economy is doing well, our enrollments are down, and when the economy is in a tough stretch or in a recession, we see our enrollments go up,” said Chris Ferguson, an executive vice chancellor with the California Community Colleges Chancellor’s Office, which oversees all of the state’s 116 community colleges. 

    Ferguson said the state has yet to release authoritative data on fall enrollment, but early data shows upward trends. In interviews with CalMatters, some college presidents said they’re seeing over 10% more students compared to last fall. But they say the state hasn’t provided enough funding to keep up with their growth. 

    California is not in a recession, but some economic indicators are grim. Unemployment is rising, and it’s getting harder to find a job. The cost of consumer goods, such as toilet paper and cosmetics, is going up, and economists say tariffs and President Donald Trump’s increased deportations could lead to further economic declines in the state. 

    “Typically when the economy gets a little crazy, like it is right now, people need to upskill or find new work,” and workers look to colleges for help, said Nicole Albo-Lopez, deputy chancellor for the Los Angeles Community College District. In the Los Angeles district, students between the ages of 35 and 54 are coming back to school in droves — up 28% compared to last year, she said. 

    Other factors may also be bringing students back to school. The COVID-19 pandemic created a sudden and historic drop in college enrollment, and some schools say the influx of students this year is just a return to pre-pandemic levels. A large portion of recent enrollment growth comes from high school students taking college courses, which has exploded in popularity in the past few years. 

    But most college officials agree that uncertainty about the economy is at least one of the driving forces for new students this semester. 

    At the Los Rios Community College District, which represents four campuses in the Sacramento metro area, enrollment is up by more than 5% compared to last fall. Part of that is due to “the gap between Wall Street and Main Street,” said Mario Rodriguez, an executive vice chancellor for the system: The stock market has performed well in the past few years, even as job seekers see fewer opportunities and families struggle with inflation. Enrollments in career technical classes are up 10% this semester at the district, the equivalent of almost 4,000 new students. 

    These job-ready programs, such as medical assisting, welding, and automotive, have always been popular, and some cap enrollment. School officials say waitlists are growing.

    Quitting a job, starting school

    Carla Gruhn, 29, has worked as a medical assistant in San Jose for 10 years. At one point she was making roughly $50,000 a year, but it wasn’t enough.

    “In the last year, eggs started becoming super expensive,” she said. “That’s when I started paying more attention to gas and groceries.” Together with her husband, she started planning ways to scale back — fewer coffee runs, less travel with their truck, cheaper gifts this Christmas. But they needed a long-term solution, too.

    In July, she quit her job and enrolled in a two-year radiologic technology program at Foothill College, in the south Bay Area, which will teach her how to read X-rays, CT scans, and MRIs. Her salary will double, maybe even triple, once she graduates with the new credential. 

    The pay raise could be “life-changing,” she said. At the moment, Gruhn said her family is small, just her husband and her dog, so their costs are lower, but they know it’s going to get more expensive, since they want to buy a house and have kids. “We’re trying to plan for the future too.”

    At Foothill College, enrollment is up, especially in science and technology classes, said Simon Pennington, the school’s associate vice president of community relations. Many of these students are looking to fulfill prerequisites to enter careers in the health care sector, he added. Health care is one of the largest and fastest-growing job sectors in the state, according to a recent report from the Public Policy Institute of California. 

    In Merced, hours away from major urban centers like the Bay Area, Sacramento, or Los Angeles, students are clamoring for classes in electronics, where the fall waitlist numbers have nearly doubled compared to three years ago. Demand is also up for classes in criminal justice and mechanized agriculture, according to James Leonard, a spokesperson for the school. 

    “When the economy goes bad, enrollment skyrockets,” said Dee Sigismond, Merced College’s vice president of instruction, though she wasn’t certain that a recession would have the same impact it did 15 years ago. Staring during the pandemic, Merced College, like most community colleges, now offers many of its classes online, which can make it easier for students to juggle school with a full- or part-time job. She added that Merced is also experimenting with new, more flexible kinds of instruction, such as competency-based education, which allows students to pass a class by showing they already have the requisite skills.

    Colleges call for more funding

    California’s community colleges receive most of their funding based on the number of students they serve. When enrollment declined during the pandemic, colleges were set to lose funding, but the governor and the Legislature granted the community college system a special exemption, delaying many funding cuts. 

    Now that enrollment is ticking up, many colleges say they have the opposite problem — they aren’t getting enough money to serve the influx of new students. That’s largely because the state’s funding formula is based on the college’s average enrollment over the past three years, so sudden changes this year are slow to have an effect. Rodriguez said his Sacramento area district is serving about 5,000 more students than the system is funded to support, representing about $20 million in lost revenue. 

    This summer, the state agreed to send more money to California’s community colleges to account for recent enrollment growth, but Ferguson said it isn’t enough to fully fund all the new students. 

    Last month, presidents and chancellors from 10 different community colleges or community college districts, including representatives from Los Angeles and Sacramento, sent a letter to the governor, asking him to change state policy and allow colleges to get more funding in next year’s budget. Though he did not sign the letter, Ferguson said the state chancellor’s office is asking the governor for similar changes. 

    In 2008, colleges had to cut back on services or classes, even as new students poured in because the state didn’t provide proportionate funding for each new enrollment. 

    Next year, California is expected to face an $18 billion budget deficit, according to a November analysis by the Legislative Analyst’s Office. For comparison, the state had a deficit of about $24 billion in 2008, worth about $36 billion in today’s dollars. 

    In Chula Vista, Southwestern College President Mark Sanchez said his district is already saying no to potential college classes in high schools and prisons because of a lack of state funding. 

    His district had over 32,000 students in the last academic year — the highest enrollment rate since the Great Recession.


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  • As the job market tightens, workers without degrees could hit a ‘paper ceiling’

    As the job market tightens, workers without degrees could hit a ‘paper ceiling’

    by Lawrence Lanahan, The Hechinger Report
    December 2, 2025

    DENVER — On a bus headed downtown, Cherri McKinney opened a compact mirror and — even as the vehicle rattled and blinding morning sun filled the window — skillfully applied eyeliner.

    McKinney is a licensed aesthetician. She went into bookkeeping after graduating from high school in 1992, then ran a waxing salon for years. Later she shifted into human resources at a homeless shelter. But stepping off the bus, she started her work day as a benefits and leave administrator for Colorado’s Department of Labor and Employment.

    She wouldn’t have made it past some hiring managers.

    “My background is kind of all over the place,” McKinney said. “You might have looked at my résumé and thought, ‘Wow, this girl doesn’t have a college education.’”

    In fact, Colorado’s state government was looking for workers just like her. In 2022, Gov. Jared Polis signed an executive order directing state agencies to embrace “skills-based hiring” — evaluating job seekers based on abilities rather than education level — and to open more positions to applicants without college diplomas. When McKinney interviewed with the state in the summer of 2024, she said, she was asked practical questions about topics like the Family Medical Leave Act, not about her academic background.

    For a decade, workforce organizations, researchers and public officials have pushed employers to stop requiring bachelor’s degrees for jobs that don’t need them. That’s a response to a hiring trend that began during the Great Recession, when job seekers vastly outnumbered open positions and employers increased their use of bachelor’s degree requirements for many jobs — like administrative assistants, construction supervisors and insurance claims clerks — that people without college diplomas had capably handled. The so-called “paper ceiling,” advocates say, locks skilled workers without degrees out of good-paying jobs. Degree requirements hurt employers, too, advocates argue, by screening out valuable talent.

    Related: Interested in more news about colleges and universities? Subscribe to our free biweekly higher education newsletter.

    In recent years, at least 26 states, along with private companies like IBM and Accenture, began stripping degree requirements and focusing hiring practices on applicants’ skills. A job seeker’s market after Covid, plus labor shortages in the public sector, boosted momentum. Seven states showed double-digit percentage increases in job listings without a degree requirement between 2019 and 2024, according to the National Governors Association. A 2022 report from labor analytics firm Burning Glass (recently renamed Lightcast) found degree requirements disappearing from private sector listings too.

    But less evidence has emerged of employers actually hiring nondegreed job seekers in substantial numbers, and a crumbling economic outlook could stall momentum. Last year, Burning Glass and Harvard Business School found that less than 1 in 700 hires in 2023 benefited from the shift to skills-based hiring. Federal layoffs and other cuts pushing more workers with degrees into the job hunt could tempt employers to return to using the bachelor’s as a filtering mechanism.

    “I think it’s a sort of do-or-die moment” for skills-based hiring, said Amanda Winters, who advises state governments on skills-based hiring at the nonprofit National Governors Association.

    Winters said the shift to hiring for skills requires time-consuming structural changes. Human resource departments must rewrite job descriptions, and hiring managers must be trained to change their approach to interviewing to assess candidates for skills, among other steps. And even then, said Winters, there’s no reason for managers not to prefer applicants with college degrees if they indeed have the skills.

    Related: Students worried about getting jobs are adding extra majors

    Colorado is trying to push employers, both public and private, to make this shift. Polis’ 2022 order devoted $700,000 and three staffers to institutionalizing skills-based hiring in state government. According to a case study by the National Governors Association and the nonprofit Opportunity@Work, the state is working with human resources departments at individual agencies, training them to rewrite job descriptions to spell out skills (for example, “active listening and interpersonal skills”). When posting a job, hiring managers are encouraged to click a box that reads: “I have considered removing the degree requirement for this role.” 

    Polis’ team also built a dashboard to track progress toward “Wildly Important Goals” related to skills-based hiring — like boosting the share of job applicants without a bachelor’s degree by 5 percent by summer 2026. State officials say about 80 percent of job classifications (categories of jobs with specific pay scales and responsibilities — for example, Human Resources Specialist III or Accountant I) now emphasize skills over degrees.

    All told, the state says, 25 percent of hires within those job classifications in 2024 — 1,588 in total — were people without degrees, roughly the same share as in 2023, when the state began collecting this information. Similar data from other states on their success in hiring skilled, nondegreed workers is scarce. State officials from Maryland and Pennsylvania, two of the first states with executive orders dropping degree requirements, said they track education levels of applicants but not of new hires. 

    To spark skills-based hiring in the private sector, the Colorado Workforce Development Council, a quasi-governmental group appointed by the governor, encourages local workforce boards to help assess employers’ needs and job seekers’ skills.

    One of those boards — Pikes Peak Workforce Center in Colorado Springs — conducts workshops for local businesses on skills-based hiring and helps them write job descriptions that emphasize skills. When a company registers for a job fair, said CEO Traci Marques, the center asks both what positions are open and which skills are needed for them.

    The center also teaches job seekers to identify their skills and show employers how they apply in different fields. A recent high school graduate who served on student council, Marques said, might discuss what that role taught them about time management, conflict resolution and event planning.

    The goal is for skills to become the lingua franca between employers and job seekers. “It’s really that matchmaking where we fit in,” Marques said.

    One new matchmaking tool is learning and employment records, or LERs. These digital records allow job seekers to verify their degrees, credentials and skills with former schools and workplaces and then share them with potential employers. Two years ago, a philanthropic coalition granted the Colorado Workforce Development Council $1.4 million to create LER systems.

    LERs are still in the early stages of development, but advocates say they could eventually allow more precise matching of employers’ needs with job seekers’ skills.

    Once nondegreed workers get in the door, employers can also see payoffs, said Cole Napper, vice president of research, innovation and talent insights at Lightcast. His research shows that workers hired for skills get promoted at almost the same rate as education-based hires and stay at their jobs longer.

    But as the labor market cools, the question now is whether people without four-year degrees will get in the door in the first place. Nationally, job growth has slowed. Maryland and Colorado froze hiring this summer for state positions.

    At a recent job fair at Pikes Peak, single mother Yvette Stanton made her way around the tables, some featuring placards that read “Skills-Based Hiring.” After a few months at a sober living facility, Stanton had lined up day care and was ready to work. She clutched a green folder with a résumé documenting certifications vouching for her skills in phlebotomy and medication administration. “When you have more certifications, there are better job opportunities,” said Stanton.

    She approached a table for the Colorado Department of Corrections. Human resources specialist Jack Zeller told her that prisons do need workers with medical certifications, and he said she could also apply to be a corrections officer. But, he said — holding out his phone to show her the job application site — she should wait until Jan. 1.

    “If the hiring freeze ends like it’s supposed to,” he said, “there’s gonna be a billion jobs going up on the website.”

    Related: Apprenticeships for high schoolers are touted as the next big thing. One state leads the way      

    Colorado works not just on the demand side, pushing employers to seek out workers based on their skills, but also on the supply side, to arm people who might not choose college with marketable skills and help them find jobs in in-demand industries.

    The Polis administration encourages high schools and community colleges to make available industry-recognized credentials — including certified nursing assistant, certified associate in project management and the CompTIA cybersecurity certification— that can earn students credits while giving them skills for better-paying jobs. The governor is also making a big bet on work-based learning opportunities in high school and community college, especially apprenticeships.

    If employers meet talented workers who lack degrees, they’ll grow more comfortable hiring for skills, said Sarah Heath, who directs career and technical education for the Colorado Community College System. “You’ve got to prove it to people to get them to buy into it,” she said.

    At Red Rocks Community College in Lakewood, a suburb of Denver, President Landon Pirius has set a goal of eventually providing a work-based learning experience to every graduate. Earlier this year, the college hired a work-based learning coordinator and an apprenticeship coordinator, and it partners with Northrop Grumman on a registered apprenticeship that lets cybersecurity students earn money while getting technical instruction and on-the-job learning.

    In his frequent discussions with regional employers, Pirius said, “the message is consistently skill-based hiring.” He added: “Our manufacturers are like, ‘I don’t even care about a degree. I just want to know that they can do X, Y, Z skills. So when you’re teaching our students, make sure you teach them these things.’”

    Colorado community colleges also see opportunities to equip students with skills in fields like aerospace, quantum computing, behavioral addiction treatment and mental health counseling, where there’s a growing demand for workers and some jobs can be handled without a four-year degree. In 2022, Colorado gave its community college system $15 million to create pathways to behavioral health careers that don’t require a Master of Social Work degree or even a B.A.

    Related: ‘Not waiting for people to save us’: 9 school districts combine forces to help students

    Colorado’s skill-based talent pipeline extends to high school. In a “Computer Science and Cybersecurity” class at Warren Tech, a high school in Lakewood, Zachary Flower teaches in-demand “soft skills” like problem solving, teamwork and communication.

    “The people who get hired are more often the ones who are better communicators,” said Flower, a software developer who was a director of software engineering and hiring manager for a travel company before he started teaching. Communication skills are half of the grade in Flower’s capstone project: Students communicate independently throughout the year with local industry sponsors, and at the end they present to a panel of engineers and developers.

    Despite the emphasis on skills-based hiring, a 2023 study projected that more than 4 in 10 job openings in Colorado from 2021 through 2031 would require at least a bachelor’s degree — the second-highest proportion of any state in the country — because many industries there, like engineering, health care and business services, require higher education, according to Georgetown University’s Center on Education and the Workforce.“But there’s still a significant amount of opportunity for people with less than a bachelor’s degree,” said Nicole Smith, chief economist at the center.

    People, in other words, like Cherri McKinney, who couldn’t afford college and didn’t want to spend four years finding her path. McKinney plans to stay in state government, where she believes she can develop more skills and advance without a college degree. Indeed, a 2023 executive order demanded that every state agency develop at least two work-based learning programs by the end of this year.

    Gov. Polis, who championed workers like McKinney, ends his second term in January 2027 and cannot run for reelection. State budgets are fragile in the Trump era. McKinney’s colleagues call often, nervous about their benefits in a time of hiring freezes and government shutdowns.

    McKinney isn’t worried.

    “When I made my first career switch from bookkeeping to aesthetics, what I realized was I am the eye of this storm,” she said. “Things swirl around me, and if I bring myself in my way that I do to my jobs, that’s what is going to create the stability for me.”

    Contact editor Caroline Preston at 212-870-8965, via Signal at CarolineP.83 or on email at [email protected].

    This story about job skills was produced by The Hechinger Report, a nonprofit, independent news organization focused on inequality and innovation in education. Sign up for the Hechinger newsletter.

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  • Education Department tightens debt relief program for public servants

    Education Department tightens debt relief program for public servants

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    Dive Brief:

    • The U.S. Department of Education on Thursday released final regulations that will bar organizations the agency deems as having a “substantial illegal purpose” from being a qualifying employer for the Public Service Loan Forgiveness program.
    • The Trump administration’s new rule will exclude organizations from the PSLF program that it determines to be “supporting terrorism and aiding and abetting illegal immigration,” among other activities, according to Thursday’s announcement. 
    • Several advocacy groups immediately vowed to challenge the rule in court. They and other opponents argue the agency is politicizing the PSLF program and will use the new rule to remove organizations with goals not aligned with the Trump administration, such as providing gender-affirming care or supporting undocumented immigrants. 

    Dive Insight: 

    Congress created the PSLF program in 2007 to allow college graduates who work for government employers, including school districts, and certain nonprofits to receive debt relief on their student loans after making a decade of qualifying payments. 

    Many borrowers initially struggled to get relief through the program due to confusing eligibility requirements and loan servicer issues. As of April 2018, for example, just 55 workers had received debt relief through PSLF, according to a report that year from the U.S. Government Accountability Office.

    To address the problems, the Biden administration eased some of the program’s requirements in October 2022 for one year. The administration also released regulations that expanded which loan payments counted toward PSLF beginning in 2023. 

    By October 2024, over 1 million workers had received relief through the program during the Biden administration, the White House said at the time. 

    But in a March executive order directing the Education Department to change PSLF’s eligibility requirements, President Donald Trump accused the prior administration of abusing the program by relaxing its requirements. Trump also contended that the program sent tax dollars to “activist organizations” that harm national security and undermine American values. 

    The Education Department’s final rule, which takes effect July 2026, is meant to carry out the executive order. It will bar organizations from the PSLF program if the Education Department determines they illegally: 

    • Aided and abetted violations of federal immigration law. 
    • Aided and abetted illegal discrimination. 
    • Supported terrorism or engaged in violence “for the purpose of obstructing or influencing Federal Government policy.”
    • Engaged in “chemical and surgical castration or mutilation of children” —  a common conservative description of providing gender-affirming care for transgender minors.  
    • Engage in the “trafficking of children” across state lines to emancipate them from their parents. 
    • Have a pattern of violating state laws. 

    The U.S. education secretary will determine whether employers have a “substantial illegal purpose” based on “a preponderance of the evidence,” which can include final federal or state court rulings or settlements in which organizations admit they engaged in illegal activities, according to an agency fact sheet. 

    Employers who are notified of such a finding will have an opportunity to respond and appeal. 

    They will also be able to “enter into a corrective action plan” with the Education Department to avoid being blocked from the program, according to an agency fact sheet. However, if they lose access to PSLF, they will only be able to reapply after 10 years. 

    If an organization is blocked from the program, loan payments made by its employees will still count toward their PSLF’s 10-year clock until the Education Department’s finding takes effect, according to a fact sheet. 

    “However, any payment made after an employer is deemed no longer eligible for PSLF will not be counted toward the number of payments to forgiveness,” the department said in the 185-page final rule, set to be published on Friday. “This approach ensures that workers who have served in good faith are not punished, while also protecting taxpayers by preventing benefits from flowing to unlawful conduct in the future.” 

    Student advocacy and nonprofit groups have decried the new rule. 

    Aaron Ament, president of the National Student Legal Defense Network, vowed in a Thursday statement to sue in the next few days. 

    “Instead of supporting first responders, healthcare workers, and teachers working to make our country a better place, the Trump Administration is punishing public servants for their employers’ perceived political views,” Ament said. 

    Democracy Forward and Protect Borrowers, two other advocacy groups, likewise said they would challenge the rule in court. In a joint statement Thursday, they said the rule would allow the Education Department to target organizations that support immigrants, provide gender-affirming care and protect the free speech rights of protesters. 

    “This new rule is a craven attempt to usurp the legislature’s authority in an unconstitutional power grab aimed at punishing people with political views different than the Administration’s,” they said.

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