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Education
Educational Services is widely considered a counter-cyclical industry.
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Education
Education

Educational Services is widely considered a counter-cyclical industry. That is to say, typically, when the economy is doing poorly and unemployment is rising, more working adults, as their career prospects start to dim, decide to upgrade their education. This, in turn, leads to higher enrollment and increased profit at the schools. We note that traditional undergraduate education for young students is generally non-cyclical. Culinary arts schools, however, can be labeled as moderately cyclical. Also, certain types of educational institutions do perform largely in sync with the broader economy. For example, providers of information technology instruction benefit in good times, when companies are likely to boost related investment.

There is a growth element to this industry. Education companies are reporting a trend of rising demand from working adults. More and more employers are requiring college degrees for a greater range of jobs. Enrollment rates are tracking higher at most schools. To an 18-year old, thinking about the future, or a 30-year old without a college degree, looking for a career boost, diplomas are becoming the standard rather than the exception.

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