The Federal Reserve Bank of Richmond recently highlighted the significant role community colleges play in workforce development. During a speech at the 2024 Virginia Education and Workforce Conference, Tom Barkin, President of the Federal Reserve Bank of Richmond, emphasized the importance of these institutions in addressing labor market imbalances.
Barkin pointed out that there is a notable mismatch between available jobs and qualified workers in skilled trades such as manufacturing, construction, child care, and health care. "Employers in the skilled trades continue to report a lack of available workers," he stated. This imbalance has been exacerbated by factors like federal investments in infrastructure and an aging population increasing demand for health care services.
Community colleges are seen as crucial partners in workforce development due to their ability to adapt educational offerings to local needs and provide accessible programs. "They partner with elementary and middle schools... with high schools... with four-year colleges... with communities... with employers," said Barkin, illustrating their multifaceted role.
However, community colleges face challenges such as rising operational costs without corresponding increases in funding. Despite their contributions, they often receive less financial support compared to four-year institutions. Barkin noted skepticism about their effectiveness due to traditional success metrics that do not fully capture their impact.
To address this issue, the Richmond Fed launched a pilot Survey of Community College Outcomes in 2022. The survey aims to develop a more comprehensive metric of success for community colleges called the Richmond Fed Success Rate. This measure considers broader student cohorts and outcomes beyond traditional graduation rates.
Barkin shared preliminary findings from Virginia's community colleges showing that traditional success measures underestimated their contributions significantly: "The traditional measure put their average success rate in 2023 at a little over 36 percent. Our measure came in at just under 63 percent."
The goal is for this new metric to encourage innovative partnerships between community colleges and employers while improving understanding among funders and potential students about these institutions' value.
In conclusion, Barkin expressed optimism about future collaborations inspired by better data on community college achievements: "I look forward to seeing what innovative partnerships emerge as a result of this new trove of data."
