Essay Sample: Education and Employment

Skills and knowledge are not only essential drivers of economic growth; they are also crucial determinants of earning capacity. Each successive educational gain beyond high school produces stronger labor market attachments and substantially higher earnings. The kinds of jobs available in the United States (U.S.) vary by state. While states have a higher concentration of jobs in fields that typically need a doctoral or professional degree, others have a higher concentration of jobs that require a different level of education, from less education than a high school diploma to a master's degree (United States Bureau of Labor Statistics, 2018). Notably, wide education levels in jobs are just one way to look at employment opportunities by state. Thus, this paper seeks to explore the connection between education, employment, and income in Iowa.

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What is the connection between education, employment, and income in Iowa?

According to the 2017 United States Census Bureau (ACS) 5-Year Population Estimate (2018), the total population of Iowa is approximately 3,118,102. These results show mixed messages for Iowa's economy. The unemployment rate declined, and the business establishment survey showed businesses were expanding and Iowa's nonfarm employment continued to improve. According to the 2013-2018 American Community Survey 5-Year Estimates, the level of educational attainment in Iowa measured at high school graduate or higher was at 91.7% in 2017 (National center for Education Statistics, 2018). The State's median household income was $ 56,570 in the same year (United States Census Bureau, 2018).

Regarding the employment status in 2017, of the total number of people of 16 years and over (2,470,612), 1,670,448 were in the labor force of which 1,668,736 were in the civilian labor force and 1,599,718 were employed (United States Census Bureau, 2018). Approximately 69,018 people were unemployed in 2017 a decline from 75,289 people in 2016. The number of female employees rose from 756,325 in 2016 to 761,963 in 2017. Management, business, science, and arts occupations comprised the highest percentage of employed civilians at 35.3%. Of this number, 46.2% were male while 53.8% were female (United States Census Bureau, 2018). The educational services and health care and social assistance industry employed the biggest percentage of civilians in Iowa at 24.3% followed by the manufacturing industry at 15.1%. Concerning income and benefits, the highest percentage of households and families earned between $ 50,000 and $ 74,999 in 2017 (United States Census Bureau, 2018).

Data on median earnings by educational attainment of the population 25 years and over in 2017 showed that people below a high school graduate level had a median earning of $25,640 compared to $24,666 in 2016 (National center for Education Statistics, 2018). In this category, male employees' median earnings were $30,634 in 2017 unlike $29,198 in 2016 while female employees' median earnings were $18,657 in 2017 unlike $17,655 in 2016 (United States Census Bureau, 2018). People with a graduate or professional degree registered the highest median earnings of $63,161 with male employees' median earnings being $74,992 in 2017 unlike $72,767 in 2016 and that of female employees being $56,697 in 2017 unlike $54,629 in 2016 (United States Census Bureau, 2018).

According to the U.S. Bureau of Labor Statistics (2018), workers in the Iowa City Metropolitan Statistical Area had an average hourly wage of $23.62 in May 2017. The figure was not significantly different from the nationwide average of $24.34 (United States Bureau of Labor Statistics, 2018). The wages in the local area were lower than their respective national averages in 12 of the 22 primary occupational groups namely legal, management, computer, and mathematics. When compared to the nationwide distribution, Iowa's employment was more highly concentrated in five of the 22 occupational groups (United States Bureau of Labor Statistics, 2018).

In summary, much discussion these days revolves around Iowa's skills gap, or the ability of Iowa's employers to find people prepared to fill job vacancies. However, the data above is a clear indication that there is a connection between education, employment and income in Iowa. Approximately 91.7% of Iowa's population has a high school or higher education level. Although a large section of this population is in the labor force, the earnings increase with the rise in the educational levels. That is, a high school graduate earns lower than a person with a graduate or professional degree does. A particular aspect of interest is the difference in the increase of earnings between people with high school education and those with a graduate or professional degree from 2016 to 2017. Evidently, the increase in the earnings was higher in higher education levels than in the lower education levels.

Similarly, gender was a significant aspect while comparing the employment and income levels of the inhabitants of Iowa. In particular, the findings established that more men were in the labor force than women were. Nevertheless, although women earned higher than men in the management, business, science, and arts occupations did, the overall picture showed that men earned higher than women did in Iowa's labor force.

References

National center for Education Statistics (2018). Retrieved from https://nces.ed.gov/naal/pdf/state_summaries/Iowa.pdf

United States Census Bureau (2018). American FactFinder - Results. Retrieved from https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF

United States Bureau of Labor Statistics (2018). Iowa - May 2017 OES State Occupational Employment and Wage Estimates. Retrieved from https://www.bls.gov/oes/2017/may/oes_ia.htm