Impact of education on income and unemployment

There has been much discussion in the news concerning the relationship among education level, employment, and income. In a recent seminar, some interesting data was presented concerning these topics. Here are some perspectives.

Annual income level for people who do not complete a high school education averages $20,241. For those who complete high school, income jumps to $30,627. Now let’s examine the people who attend college but do not complete a degree. Their average income shows a slight increase at $32,295. Those who complete an associate’s degree increase their income to $39,771 on average.

Now for those who complete a bachelor’s degree, annual income increases to $56,665. An advanced degree such as a master’s degree boosts income to $73,738. Ph.D.’s come in at $103,054, while those with professional degrees such as doctors and lawyers average $127,803 annual income.

Let’s examine unemployment rates for these groups of people. Those without a high school degree average 9.1% unemployment rate, nearly double the national rate. For high school graduates, the unemployment rate declines to 6.2%, and for those with associate degrees, unemployment declined to 5.4%. Those with at least a 4-year bachelors’ degree show an average unemployment rate of 3.2%, well below the national average.

Looking at this subject thru the labor force participation rate shows some interesting results. The U.S. average labor force participation rate is approximately 63%. Those who do not complete a high school degree show a participation rate of only 45%. The rate jumps up to 58% for those who complete high school. With some college or an associate’s degree, participation rate rises to 67%, while those with a bachelor’s or advanced degree top out at approximately 75% labor force participation rate.

The bottom line is that education does have an impact on employment, income, and who participates in the workforce. Moving forward, the agriculture industry will be starved for talented people who can manage increased sophistication of technology and innovation on complex businesses. An educational package ranging from vocational training to college degrees can provide the necessary educational and skill bases needed for the future of the agriculture industry.

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