Too Much Education? “Medium Skill” Jobs are Becoming Harder to Fill

Too Much Education? “Medium Skill” Jobs are Becoming Harder to Fill

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With all the discussion of skyrocketing tuition and student debt in the news today, some in the public sphere are suggesting that the university system in the United States is broken.

Founder of PayPal Peter Thiel has gone so far as to offer funding for students to work on personal projects in exchange for dropping out of college.  Considering the unemployment rates among American's without a college degree, this is a hard pitch to sell.

However, for the first time in American history this week, a majority of the Americans who are unemployed, 52%, have spent some time in college.  The combination of fewer jobs for those with college experience and nearly no jobs for those without college experience has created a new job market where there may actually be a surplus of job openings: those that require "medium skills."

Medium Skill Jobs

A new study conducted by the Federal Reserve Bank of Chicago published this week found that the area of the job market where there is a skills mismatch is most likely to be found in the area of jobs that "require training in vocational schools, related on-the-job experience, or an associates degree."

This evidence shows that there may be a soft spot in the market for young people who want to save money on tuition, enter the workforce earlier, and have a decent chance to obtain a blue-collar job.  While it's easy to extol this path from the peanut gallery, who (besides Peter Thiel) would suggest that their child not try to obtain a four-year college degree?

When Supply Fails to Meet Demand

In summary: Fewer are taking on any post-secondary education in vocational trades and specialization. However, the demand for medium skilled workers holds steady.

Economics 101 says when supply fails to meet to demand; we will see high prices in existing suppliers. Think of mechanics, plumbers, HVAC technicians, dental assistances, and veterinary assistants. All are in high demand and should theoretically be paid for it.

Business Section

We have compiled a list of companies who specialize in educational and training services who may benefit if more job-seekers look to improve their "medium skills." Listed below are educational services companies who display strong institutional buying.

 

1. GP Strategies Corp. (GPX, Earnings, Analysts, Financials): Provides customized training solutions focused on performance improvement initiatives, as well as consulting, engineering, and technical services in the United States, the United Kingdom, and internationally. Market cap at $298.59M, most recent closing price at $15.78. Net institutional purchases in the current quarter at 725.8K shares, which represents about 5.47% of the company's float of 13.26M shares.

 

2. K12, Inc. (LRN, Earnings, Analysts, Financials): Provides proprietary curriculum and educational services for online delivery to students in kindergarten through 12th grade (K12) primarily in the United States. Market cap at $820.85M, most recent closing price at $22.77. Net institutional purchases in the current quarter at 2.9M shares, which represents about 11.09% of the company's float of 26.14M shares.

 

3. Learning Tree International Inc. (LTRE, Earnings, Analysts, Financials): Develops, markets, and delivers a library of instructor-led classroom courses to meet the professional development needs of managers and information technology (IT) professionals in the United States, Canada, the United Kingdom, France, Sweden, and Japan. Market cap at $55.26M, most recent closing price at $4.10. Net institutional purchases in the current quarter at 337.8K shares, which represents about 5.22% of the company's float of 6.47M shares.

 

4. TAL Education Group (XRS, Earnings, Analysts, Financials): Provides K-12 after-school tutoring services in the People's Republic of China. Market cap at $832.91M, most recent closing price at $10.65. Net institutional purchases in the current quarter at 1.9M shares, which represents about 11.06% of the company's float of 17.18M shares.

 

 

Listed below are educational services companies who display strong insider buying.

 

1. Ambassadors Group Inc. (EPAX, Earnings, Analysts, Financials): Ambassadors Group, Inc., an educational company, organizes and promotes educational travel programs for students, athletes and professionals in the United States and internationally. Market cap at $89.83M, most recent closing price at $5.17. Over the last six months, insiders were net buyers of 517,439 shares, which represents about 4.83% of the company's 10.72M share float.

 

2. GP Strategies Corp. (GPX, Earnings, Analysts, Financials): Provides customized training solutions focused on performance improvement initiatives, as well as consulting, engineering, and technical services in the United States, the United Kingdom, and internationally. Market cap at $298.59M, most recent closing price at $15.78. Over the last six months, insiders were net buyers of 176,093 shares, which represents about 1.33% of the company's 13.26M share float.

 

 

Written by Dan Connelly. Insider data sourced from Yahoo! Finance. Institutional data sourced from Fidelity.

 

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4 Responses to “Too Much Education? “Medium Skill” Jobs are Becoming Harder to Fill”

  1. Natali_78 says:

    It is just the most popular jobs now are somehow related to economics as we have a pretty lazy nation and they would rather be sitting and writing their economic paperwork or 15% off Economic college term papers from some services than they would work really hard and do something with a help of their hands. This is a sad fact, but I doubt that we can expect something else anytime soon

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  3. meveric says:

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    I would like to invest but dont know if it is a god idea, what do you recommend?

  4. Sarah says:

    Students deserve for good education and professional writing services via this link http://www.essaypanda.org/writing-services and focus on students education.

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