Education Requirements for Careers in Natural Gas

Last month's discussion and radio show focused mainly on education alternatives.  The final segment titled, "$50k in 30 Days," lends itself nicely into this month's topic....Careers in Natural Gas.

Our discussions, articles, webinars ( see www.thealbertinstitute.com) and the June 25th Career Talk on KQV will feature career information as it relates to the exploration for natural gas in the Marcellus Shale and Utica Shale formations expanding Western Pennsylvania, Northern West Virginia and Southeast Ohio.  Let us begin with observation and comment.  The following chart outlines education requirements for careers in natural gas:

As you can see, more than 50% of this chart represents careers that do not require a four year or advanced college degree.  In fact, many labor or equipment operator positions do not require a high school diploma.  Employers working in the Marcellus Shale region currently cannot find enough workers to fill these positions despite the fact that even entry-level jobs in these categories pay workers a livable wage.  The industry has to import workers from Texas, Louisiana, etc. to fill these jobs.  Why are companies having a difficult time filling these positions with local workers?

$50K in 30 Days!

As I mentioned in last week's article, just 14% of Pittsburgh area workers earn more than $50,000.00 per year.  That data is likely to change as a result of natural gas and the demand for workers in the industry.  This is also sure to influence the educational alternatives available to job seekers, high school graduates and parents of young students.

In Fall of 2011, a new client came into the McKees Rocks Employment & Training Center, our career center just outside of Pittsburgh. A young, personable African-American male, he asked me, "Who is this Marcellus Shale guy I've been hearing about?"  I am not quoting him to make a joke because I do believe the question represents a great disconnect between urban America and the economic opportunities that exist...but that is for a later discussion.  In any case, we spent some time exploring the natural gas industry and the economic impact that the Marcellus Shale boom is having on our region.  He ultimately decided to enter a training program that would teach him more about the industry and help him to obtain his CDL.

The young man entered a trade school in the beginning of the year.  He was able to obtain a grant to pay for his schooling, so there was no debt due upon graduation.  After a roughly four-week accelerated course, he obtained his certificate and was able to test for his CDL. I just spoke with him yesterday.  He was quickly hired on by a local fracking company.  After a near decade of not working and getting into legal trouble, he is now working a legitimate job and, with overtime and his per diem, he is earning close to $5,000.00 per month. 

This morning I am speaking to an 8th grade class at a middle-school in a west Pittsburgh suburb.  What shall I tell them when they ask about college, work, etc.?  I think, as a career counselor, I would be doing them a disservice if I did not share this story.

Does Education Pay in the Long-Term?

This month's topics have highlighted some of the struggles experienced by recent college graduates, but let's be fair.  The reality is that college graduates, according to Department of Labor, still experience higher lifetime earnings than those workers who do not graduates college.  A few examples as they relate to my hometown of Pittsburgh, PA...

The Bureau of Labor Statistics indicates that, "only 14% of workers in the Pittsburgh region earn more than $50,000.00 per year."  Typical job titles for the region that earn more than $50,000.00 include but are not limited to Computer Sytsem Analysts, CEO's, Lawyers, Registered Nurses and Physicians/Surgeons.  It goes without saying that these occupations all require further education.

The BLS also indicates, "50% of Pittsburgh area workers earn less than $25,000.00 per year."  Occupations that fall in this pay range include Security Guard, EMT's, Secretary, Pharmacy Aide and Fast Food Cook.

This raises yet another interesting question.  Should the value of education be measured over time or should it be based upon current situations?  The reality is that most college graduates are young and thus still considered 'entry-level' workers.  Therefore, many are paying their dues and earning an entry-level salary.  At the end of the day, graduates from Duquesne, Penn State, Ohio State, etc. will probably out-earn their workforce counterparts who have not earned a four year or advanced degree.

Is College Worth the Cost?

According to the American Council on Education...

"Half of students who start college drop out....Half of college graduates are underemployed."

This data suggest that if 100 students start college in the fall, only 25 of that 100 will be working in their intended field.  Duquesne University, my Alma Mater, just graduated a university record number of more than 1600 students.  If the American Council on Education's data holds true, only 400 of these students will be working in their field.  I graduated Duquesne in 2001 as a licensed high school English teacher.  That career lasted less than two years because of the small number of jobs versus the vast number of job candidates.

Do not get me wrong.  I would never trade in my Duquesne experience or education.  The data, however, does raise an interesting question.  Is college worth the cost?  The Council also indicates that the average individual student debt is now slightly more than $20,000.00.  We all know that student debt can reach much higher levels depending on the degree, school, etc.  A colleague of mine is a recent criminal justice graduate from a well-respected university.  After two years of job search in his field, he just recently accepted a position at a local bank earning just above $26,000.00 per year.  That is about $12 per hour before taxes, rent, gas, etc., etc.  How many dollars from that twelve will be going towards a student loan?

Thoughts? Comments?

Education Requirements According to DOL

According to Bureau of Labor Statistics...

"Although unskilled work is disappearing, low skilled work is not.  More than 45% of all jobs are those that require at least a high school diploma and up to three months of training that can be learned on the job.  Many low wage/low skill service jobs are in this group.

28% of all jobs are in the fastest growing job sector that requires two years or less of education after high school.  The occupations in this sector often pay middle and upper income earnings and require specialized education such as an associate degree, a national skill certification, or a structured apprenticeship program.

Only 26% of all jobs require a 4 year college degree or higher.  This is about the same percentage of college graduates that was demanded in 1950—but unlike today, college graduates were in short supply at that time."

How do these labor market requirements compare with the career choices of our young workers?  How does this impact the choices made by workers in transition?