Employment in public schools and the student-to-employee ratio

Monthly Labor Review, July, 1994 by Teresa L. Morisi

Employment in public schools has doubled since 1964. As a result, the student-to-employee ratio fell from 13.3 in 1964 to 6.4 in 1990.(1) Schools had fared well even in recessionary periods, when the student-to-employee ratio continued to drop or at least held steady. In the most recent recession, however, the student-to-employee ratio rose for the first time in the history of the data series. By 1993, the student-to-employee ratio returned to the 1990 level. It is unclear whether the ratio will decline further, as tightly constrained Federal, State, and local budgets will be forced to accommodate a rising student population in the coming years.

Enrollment linked to 'baby-boomers'

Enrollment in public elementary and secondary schools grew steadily from 1964, peaking at 46 million in 1971. The rise was caused by the "baby-boom generation" (persons born during the 1946-62 period) entering the public school system.(2) As the members of the baby-boom generation graduated or left school, enrollment fell steadily for the next 13 years -- a total decline of 7 million students. Enrollment again began to climb in 1984 when the children of those born during the baby-boom period began attending school. Enrollment has risen by 4 million since 1984, but still remains 3 million below the 1971 peak level. (See chart 1 and table 1.)

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Trends in total employment

The surge in public school employment over the 1964-93 period occurred despite four small annual declines (1978, and the 1981-83 period), falling enrollment, and the recessions.

Employment growth during falling enrollment. Employment in public schools rose in all but 4 years between 1972 and 1984, even though enrollment fell by 7 million during the period. The student-to-employee ratio continued to decline in 1978, despite the fact that public school employment fell for the first time since 1964. Employment again declined in 1981 and through 1983, but the student-to-employee ratio remained steady.

By 1982, the yearly enrollment declines began to lessen in magnitude. In 1984, enrollment declined only slightly and employment returned to its growth trend; as a result, the student-to-employee ratio resumed its decline.

Employment during recessions. Of the five recessions that occurred between 1964 and 1993,(3) only the last two recessions appeared to have any effect on local government education employment. (See box.) During the 1981-82 recession, employment declined both years, with a spillover effect of a small decline in 1983. The student-to-employee ratio remained constant during this recession.

However, the 1990-91 recession had a more serious effect on employment in local government education. Between 1989 and 1991, enrollment surged by 1.5 million; growth of this magnitude had not occurred since the late 1960's. Although employment did not decline as it had in the previous recessions, the number of employees added in 1991 was the smallest since the decrease in 1983. This growth was not large enough to offset the gain in the number of students; therefore, the student-to-employee ratio increased for the first time in the history of the series.

Despite the fact that the recession had ended over a year earlier, hiring in 1992 was just enough to allow the student-to-employee ratio to remain unchanged. This sluggishness indicates that local governments, like much of the private sector, recovered slowly from the latest recession. By 1993, the student-to-employee ratio returned to the 1990 level. (See chart 2.) It is unclear whether the trend of a declining ratio will resume as government revenues improve. The student-to-employee ratio may be at such a low level that futher declines are not possible.

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Teachers and other staff

Data from the National Center for Education Statistics show a growth of 860,000 full-time equivalent teaching positions over the 1964-93 period. The student-to-teacher ratio displayed the same trend as the student-to-employee ratio, although the rate of decline was less sharp. In the late 1970's the declines in enrollment finally caught up with teachers as their number dropped by 71,000 between 1975 and 1981. Since 1981, teaching staffs have grown by 380,000.

Although teachers have continued to constitute the largest share of education staff, their share of full-time equivalent education positions declined from 60 percent in 1969 to 53 percent in 1990.(4) Over this period, the number of teaching positions grew by 16 percent. This was dwarfed by the 85-percent rise in teacher aide positions, the largest percentage increase among education staff.(5) The number of guidance counselors grew 40 percent between 1969 and 1990, while the number of principals and assistants grew 29 percent. Only librarian positions experienced slower growth than teaching positions. (See chart 3.)

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What caused the employment growth?

One of the most important factors affecting employment growth in public schools has been the advent of the Federal Government assuming a larger role in education. Beginning in 1965, the Federal Government began spending millions of dollars on education programs for students with special needs in elementary and secondary schools. Much of the money has gone toward the hiring of specialists and aides to staff these programs. Programs for remedial and bilingual education and for disabled students have contributed the most to the growth in the number of education employees. Each program has its own staff and curriculum, and many students participate in more than one program.