From $4 Billion to $103 Billion? Why families are hiring tutors...

In 2005, NPR reported that the tutoring industry had grown to $4 billion. Just 7 years later, Forbes wrote that the industry was expected to reach $102.8 billion this year! Why have we seen such a dramatic increase and what does this mean for those involved?

First off, it's very important to recognize several major trends at play here. As mentioned by NPR, many of these changes were caused by the implementation of the No Child Left Behind Law, as well as other shifts in education. Teachers and administrators are now trained and required to pay attention to specific students who are falling behind. They are instructed to work with the school and the child's parents to create a plan of action. Parents have become much more aware of where their child stands amongst their peers and national standards. In some cases, schools are even required to directly offer supplemental tutoring. In 2011, a staggering $134 million was invested by the U.S. government to help low income students receive after-school enrichment opportunities.

Besides new legislation, a few other important trends play a role in this spike. One of which is the movement of families pushing for more after-school enrichment programs. Such programs include camps, sports, STEAM workshops, music, and yes, tutoring. Fueling the movement has been the increase in competitiveness to get into sought-after colleges and jobs. Parents have seen the rise in standards and are responding by trying to prepare their children the best they can. It's not just in high school though; we've seen parents' preparation efforts trickle down to very young ages of children. Some parents go as far as signing up for highly esteemed pre-schools, before their child is even born.

Another trend at work is the visibility families now have thanks to internet and social media. Not only do parents now see what other parents are singing their children up for on Facebook, but it's easier than ever to find programs online. A simple google search turns up thousands of tutoring companies, while Yelp offers in depth reviews and rating.

Of course this movement into enrichment programs, especially tutoring, is having major effects on both the service providers as well as the families. What effects are we seeing? More to come...

Sources: NPR Forbes