A Georgetown Center on Education and the Workforce analysis of programs across education institutions, government services and employers finds that $1.1 trillion is spent each year on education and training beyond K-12: about 60 percent through formal programs (including postsecondary education, apprenticeships and certification training, federal job training and employer-provided training) and almost 40 percent through informal, on-the-job training.
According to the report, employers spend $177 billion annually for formal education programs for their employees—up more than a quarter since 1994—and $413 billion for on-the-job training. Taken together, employers spend more on training and education than all other sources.
Most of these formal training dollars are spent on workers who already have postsecondary credentials, indicating that employer training programs are rarely a substitute for education beyond high school.
In addition, within employer-provided formal training, one-third is contracted out to colleges or other providers, 16 percent goes to tuition reimbursements and 46 percent is in-house training. As you probably know, community colleges are doing great work in supporting local businesses through providing formal education to their employees.
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