Study: The lesser known private colleges

1993 and 2003

Canada's private colleges, sometimes referred to as career or business colleges, represent the lesser known players in postsecondary education. Private colleges lost ground in the postsecondary market between 1993 and 2003, according to a new study that examines graduates and their experience in the labour market.

In 1993, private college graduates aged 25 to 34 accounted for 6.3% of the total in this age group who had some form of postsecondary education. By 2003, this share had been cut by almost one-half to only 3.7%.

In contrast, the proportion of individuals with university degrees has climbed steadily.

Private colleges, sometimes referred to as career or business colleges, help to fill a gap in the public system by providing an alternative to more traditional postsecondary education programs. Ontario alone has more than 450 registered private career colleges, according to the ministry of education. Their focus is on stressing practical skills and offering courses that prepare students for clearly defined occupations.

This decline in market share was due primarily to lower enrolment among women.

The number of men holding only a private college certificate climbed from more than 23,000 in 1993 to 27,300 in 2003. During the same time, graduation among women fell from 132,400 to 59,300, a difference of 73,100.

The study found that private college certificate holders earned roughly the same as high school graduates, but they were more likely than high school graduates to be employed.

Differences in median annual earnings between young high school graduates and private college graduates working on a full-year, full-time basis were not statistically significant in 2003. The median is the point where exactly one-half of earnings are higher and one-half are lower.

Young male high school graduates in 2003 had median annual earnings of $35,200, compared with $35,300 for their private college counterparts.

Young women with only high school diplomas earned $26,500, while women with only private college certificates earned $27,700.

However, these private college certificate holders were more likely to be employed in 2003 than high school graduates.

The employment rate among men with only a high school diploma was 92% in 2003, while the rate among men with only a private college certificate was 98%. The situation was similar among women.

The results of the study also show that students who graduated from these colleges during the past decade have made some important shifts in the choice of their fields of study. To a certain extent, these changes reflected a response to the new economy of the late 1990s and early 2000s, especially among women.

Secretarial science was by far the most popular field of study during the early 1990s. In 1993, about 39% of all graduates aged 25 to 34 who had a certificate from a private college had earned it in secretarial science. By 2003, this proportion had plunged by more than half to only 18%.

Young women shifted their focus to business and finance studies. A decade ago, women with a certificate in business and finance represented barely 10% of all private college graduates in this age group. By 2003, this had increased to more than 16%.

For men, the most important shift was in certificates in the miscellaneous category, which includes fields such as truck driving, professional sales, and real estate. By 2003, the proportion climbed to 15% of all graduates, more than double the proportion in 1993.

Definitions, data sources and methods: survey number 3889.

The analytical article "Canada's private colleges: The lesser known players in postsecondary education" (11-621-MIE2006036, free) is now available online in the Analysis in Brief series.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Chris Li (613-951-5792), Income Statistics Division.