New England faces a significant labor shortage in the coming years because of the region’s failure to keep its newest college graduates from leaving for other parts of the country, according to a recent study.
The study was done by Alicia C. Sasser, a senior economist at the New England Public Policy Center at the Federal Reserve Bank of Boston. It was published in last December’s edition of New England Economic Indicators, a journal published by the Boston Fed.
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“One of New England’s greatest assets is its skilled labor force, which has historically been an engine of economic growth in the region,” Sasser writes. “Yet the population of recent college graduates – the skilled labor force of the future – has been growing more slowly in New England than in the rest of the United States.”
From 2000 to 2006, the number of individuals aged 22 to 27 with a bachelor’s degree or higher grew by less than 9 percent in New England, about half the rate of growth in other parts of the country, according to Sasser.
During the 1990s, the number of recent college graduates in New England dropped by 11 percent, and “the increase since 2000 has not offset those earlier losses, making New England the only region to see a decline in this population since 2000,” Sasser writes.
Despite widespread concern about the problem among policymakers, Sasser says “few steps have been taken to tackle this challenge because of lack of information on the extent of the problem, its root causes, and how best to address it.”
Sasser writes: “Contrary to the conventional wisdom, recent college graduates are leaving New England primarily for job-related reasons – not housing costs.”
Students who get their bachelor’s degrees in New England make up more than three-quarters of the recent college graduates living in the region, according to Sasser. Native New Englanders account for about 70 percent of the region’s college students – a relatively low share compared to other regions, Sasser writes.
Sasser suggests the New England states should look to increase the number of students who stay here after attending college, and also increase the number of students from other regions who come here for college.
“Building stronger ties between colleges and employers by expanding internship opportunities may help graduates, particularly non-natives, learn about local job opportunities and form networks within the region,” Sasser writes.
Although it is not mentioned by Sasser, RI Nexus, the R.I. Economic Development Corporation’s program for the information technology and digital media sector, has attempted to do that in recent months through a college tour and a Web site with information on local employers.
“New England is likely to face even greater competition for college graduates in the future – particularly in a global economy where workers and jobs are more mobile,” Sasser writes.
