Social Impact of the Career School Industry

Human capital is our society's biggest asset. Individuals, particularly young individuals, have very high potential human capital and very low financial capital. Education is the dominant factor in increasing human capital. Lumion can help people convert future human capital to today's human capital and, in exchange, increase the overall pie of an individual's aggregate lifetime capital.

What is human capital?

Human capital is the economic value of a worker's skills and experiences. It includes assets like training, intelligence, education, health, and other things employers may value. Higher human capital is known to increase productivity and, in turn, profitability. To increase human capital through the development of education and workforce training, it is crucial to promote high-quality and affordable education from childhood to post-secondary. Equally important is providing the right support to maximize student success, ensuring students' nutrition, health, and financial stability.

At Lumion, our mission is to promote access to quality career education and develop human capital to encourage community and individual growth. Many believe that getting students through a traditional college education will solidify success. But, as the American Enterprise Institute study shows, only 14% of children from lower-income homes will complete four-year degrees. Not everyone is meant for a 4-year degree. A student that drops out of college at the age of 20 has little to no credentials and no real work experience but has accumulated a fair amount of debt. Instead, we partner with career schools across the country to provide tuition solutions to those looking to expand their opportunities.

The Connection Between Human Capital and Career Education

Despite the shorter program length, real workforce training, and networking opportunities, career schools are often viewed as a non-viable alternative to a traditional college education. However, Lumion has been working to change this way of thinking. Career school education provides the opportunity to accumulate human capital. There are hundreds of career schools in several industries that will provide educational plans and targeted hands-on training for your career.

Let's take a look at some of our students and how they were able to increase their lifetime human capital with Lumion. One of our students, Mia, decided to attend career school to pursue a career in computer science. Through her education, she was able to increase her income from $17k to $75k annually. Conservatively, if she were to stay at her job with no raise for 40 years, she would increase her human capital to over $2.4 million. Another powerful example showing the impact of increasing human capital is one of our former students, Ryan. He attended career school to expand his expertise and skills as an electrician. He increased his hourly pay from $15 to $42 an hour. In just five short months, he increased his annual salary by $49,000 and his lifetime earnings to almost $2 million.

Human Capital and Intangible Factors

At Lumion, we work with students to make sure they are heard and supported throughout their educational journey. The financial burden is a huge contributor to student retention and dropout rates. Our customer success team works with students 1-on-1 throughout their educational journey. They provide support and guidance so students never fall behind. Lumion also provides career services that assist with job placement, helping students reach their full potential.

The importance of human capital in the workforce, and society overall, is immeasurable. We feel it is worth investing in students to increase their human capital and overall impact on our community.