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November 17, 2011

Little Training Provided by Federal Job Training Programs; Career Colleges Providing Much of Classroom Skills Instruction

Research Shows Federal Government 'Job Training' Programs Focused Primarily on Job Referrals

SANTA ANA, Calif., Nov. 17, 2011 (GLOBE NEWSWIRE) -- Only one of every 25 Americans served by federal job training programs actually receives classroom-based skills training, according to a research report prepared by The Parthenon Group and commissioned by Corinthian Colleges, Inc. (Nasdaq:COCO). The report further indicated that instruction is almost always delivered by local community colleges or private sector career colleges.

"Filling America's Workforce 'Skills Gap': The Role of Private Sector Education in Job Training" explores whether and how the federal government's nearly 50 job training programs, which cost taxpayers upwards of $18 billion annually, meet the current and future needs of the U.S. workforce. It also examines the role of the higher education sector — particularly private-sector career colleges — in addressing those needs.

"The Parthenon Group research clearly demonstrates that private-sector career colleges and community colleges play an indispensable, though largely unacknowledged role in preparing American workers for the 21st century economy," said Jack Massimino, Chairman and Chief Executive Officer of Corinthian Colleges, Inc. He continued, "The federal government should recognize and support the sector as an ally in putting America back to work." 

The study's key findings are:

  • Of the approximately 26 million U.S. citizens served by federal jobs training programs in 2009, a scant 4 percent actually receive the type of classroom-based skills instruction that leads to lifelong income gains. The Parthenon Group research indicates that the vast majority of participants receive merely short-term, job referral services designed to place people in jobs based on knowledge or experience they already have. 
     
  • When classroom-based skills instruction is provided by a federal jobs training program, it almost always is in the form of a subsidy for training that is outsourced to a local community college or private sector career college. The study finds that skills instruction, when received, is usually in the form of a $3,000-$4,000 grant to be used at a local institution. During 2009, about 55 percent of these grants went to community colleges and 45 percent to private sector career colleges.
     
  • While graduates of both community and private-sector career colleges realize significant, long-term economic benefits from their classroom-based education, severe fiscal constraints on community colleges mean that private sector institutions play an increasingly critical role in the delivery of classroom-based skills training. Put another way, without the private sector institutions, far fewer beneficiaries would receive any form of classroom-based instruction. A previous Parthenon Group analysis showed that both community colleges and private-sector colleges serve a large number of low-income Americans and help their graduates realize income gains of as much as 54 percent. But the confluence of a number of issues and trends pose significant challenges for community colleges including mid-year budget cuts by more than a quarter of all community colleges, the anticipation of further budget decreases this year by 60 percent, and inadequate capacity to meet current student demand by 23 percent. (University of Alabama's Access and Funding in Public Education 2011 National Survey)

"If we're serious about closing the workforce skills gap and putting more Americans back to work, the federal government should put more people into the kind of true skills-development training programs we provide," Massimino continued. "Corinthian Colleges and other private-sector institutions have demonstrated our ability to meet the training needs of the American workforce of today and tomorrow."

The Parthenon Group conducted its research through a review of public records and published data and information and through a survey of 24 One-Stop Career Centers across the United States. Its report was compiled during September and October, 2011.

A copy of the report is available here: http://parthenon.com/ThoughtLeadership/ParthenonPerspectivesTheRoleofCommunityandPrivateSectorCollegesinJobTraining

About Corinthian

Corinthian is one of the largest post-secondary education companies in North America. Our mission is to change students' lives. We offer diploma and degree programs that prepare students for careers in demand or for advancement in their fields. Our program areas include health care, business, criminal justice, transportation technology and maintenance, construction trades and information technology. We have 123 Everest, Heald and WyoTech campuses, and also offer degrees exclusively online. For more information, go to http://www.cci.edu/.

The Corinthian Colleges, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8848

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