Nature of the Industry

Goods and services. Education is an important part of life. The amount and type of education that individuals receive are a major influence on both the types of jobs they are able to hold and their earnings. Lifelong learning is important in acquiring new knowledge and upgrading one’s skills, particularly in this age of rapid technological and economic changes. The educational services industry includes a variety of institutions that offer academic education, vocational or career and technical instruction, and other education and training to millions of students each year.

Industry organization. Because school attendance is compulsory until at least age 16 in all 50 States and the District of Columbia, elementary, middle, and secondary schools are the most numerous of all educational establishments. They provide academic instruction to students in kindergarten through grade 12 in a variety of settings, including public schools, parochial schools, boarding and other private schools, and military academies. Some secondary schools offer a mixture of academic and career and technical instruction.

Postsecondary institutions—universities, colleges, professional schools, community or junior colleges, and career and technical institutes—provide education and training in both academic and technical subjects for high school graduates and other adults. Universities offer bachelor’s, master’s, and doctoral degrees, while colleges generally offer only the bachelor’s degree. Professional schools offer graduate degrees in fields such as law, medicine, business administration, and engineering. The undergraduate bachelor’s degree typically requires 4 years of study, while graduate degrees require additional years of study. Community and junior colleges and technical institutes offer associate degrees, certificates, or other diplomas, usually involving 2 years of study or less. Career and technical schools provide specialized training and services primarily related to a specific job. They include computer and cosmetology training institutions, business and secretarial schools, correspondence schools, and establishments that offer certificates in commercial art and practical nursing.

This industry also includes institutions that provide training, consulting, and other support services to schools and students, such as curriculum development, student exchanges, and tutoring. Also included are schools or programs that offer nonacademic or self-enrichment classes, such as automobile driving and cooking instruction, among others.

Recent developments. In recent decades, the Nation has focused attention on the educational system because of the growing importance of producing a trained and educated workforce. Many institutions, including government, private industry, and research organizations, are involved in improving the quality of education. The passage of the No Child Left Behind Act of 2001 established Federal guidelines to ensure that all students in public elementary through secondary schools receive a high-quality education. Through this act, individual States are given more flexibility on how to spend the educational funds they are allocated. In return, the Act requires standardized testing of all students in core subject areas. In this manner, students, teachers, and all staff involved in education are held accountable for the results of testing, and teachers and teacher assistants must demonstrate that they are sufficiently qualified in the subjects or areas in which they teach. States are responsible for following these guidelines and can lose Federal funding if the standards are not met. Despite the increased Federal role, State and local governments are still the most important regulators of public education. Many States had already begun to introduce performance standards individually prior to passage of the Act, and the Act still allows States a considerable amount of discretion in how they implement many of its provisions.

In an effort to promote innovation in public education, many local and State governments have authorized the creation of public charter schools, in the belief that, by presenting students and their parents with a greater range of instructional options, schools and students will be encouraged to strive for excellence. Charter schools, which usually are run by teachers and parents or, increasingly, by private firms, operate independently of the school system, set their own standards, and practice a variety of innovative teaching methods. Businesses strive to improve education by donating instructional equipment, lending personnel for teaching and mentoring, hosting visits to the workplace, and providing job-shadowing and internship opportunities. Businesses also collaborate with educators to develop curricula that will provide students with the skills they need to cope with new technology in the workplace.

Quality improvements also are being made to career and technical education at secondary and postsecondary schools. Academics are playing a more important role in career and technical curricula, and programs are being made more relevant to the local job market. Often, students must meet rigorous standards, set in consultation with private industry, before receiving a certificate or degree. Career and technical students in secondary school programs must pass the same standardized tests in core subject areas as students who are enrolled in academic programs of study. A growing number of career and technical programs emphasize general workplace skills, such as problem solving, teamwork, and customer service. Many high schools now offer technical preparatory (“tech-prep”) programs, which are developed jointly by high schools and community colleges to provide a continuous course of study leading to an associate degree or other postsecondary credential.

Computer technology continues to affect the education industry. Computers simplify administrative tasks and make it easier to track student performance. Teachers use the Internet in classrooms as well as to communicate with colleagues around the country; students use the Internet for research projects. Distance learning continues to expand as more postsecondary institutions use Internet-based technology to conduct lessons and coursework electronically, allowing students in distant locations access to educational opportunities formerly available only on campus.

Despite these improvements in quality, problems remain. High school completion rates remain low, particularly for minority students, and employers contend that numerous high school graduates still lack many of the math and communication skills needed in today’s workplace. School budgets often are not sufficient to meet the institution’s various goals, particularly in the inner cities, where aging facilities and chronic teacher shortages make educating children more difficult.