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Michigan WorkKeys Conference®
Dick FergusonCEO and Chair – ACT, Inc.
®
Michigan WorkKeys ConferenceNov. 6, 2007
Michigan WorkKeys Conference®
Some Background on ACT
Founded in 1959
Education in the ’50s
A not-for-profit 501(c)(3) public trust
Initial service: The ACT®
ACT’s philosophy
Michigan WorkKeys Conference®
ACT’s Evolution Belief: College readiness begins early
Linking the ACT to college AND career planning
Testing to inform decision-making Students, Parents, Counselors, etc.
Creating a college readiness SYSTEM EXPLORE®, PLAN®, and the ACT
Michigan WorkKeys Conference®
ACT’s Evolution
Development of College Readiness StandardsTM, benchmarks
Advocacy for rigor and partnerships with states, districts, etc.
Professional/occupational assessments Expanding from college readiness to
work readiness
Michigan WorkKeys Conference®
ACT’s Evolution
Developed in the late 1980s
Early warnings: Impending crises in the workforce
Workforce readiness issues similar to college readiness
ACT’s Workforce Development Division
Michigan WorkKeys Conference®
The Perfect Storm
Michigan WorkKeys Conference®
The Perfect Storm
Circumstances: Educational pipeline
Increased reliance on immigrant labor
Retirement of baby boomers
Global competition for natural resources
Outsourcing
Michigan WorkKeys Conference®
Jobs require higher skills DOL: 80 percent of jobs will require
some postsecondary education
DOL: 75 percent of employees must be retrained to keep the jobs they have
Meanwhile, HR professionals report difficulties in hiring workers with essential skills
Threats to the Workforce
The Perfect Storm
Michigan WorkKeys Conference®
Shifting demographics: BLS: More than 25 percent of the working
population will reach retirement age by 2010 By 2012:
U.S. workers aged 55-64 will grow 51 percent
U.S. workers aged 35-44 will decline 7 percent
Hispanics: Fastest-growing segment of the workforce
However, one-third don’t have a diploma
The Perfect StormThreats to the Workforce
Michigan WorkKeys Conference®
Inadequate skills held by workers BLS: Employers estimate that skill
deficiencies are held by 39 percent of incumbents and 26 percent of new hires
Adult Literacy Survey: 50 percent of the U.S. population is
functionally illiterate 52 percent of high school graduates lack
basic skills required to do jobs adequately
The Perfect StormThreats to the Workforce
Michigan WorkKeys Conference®
The Perfect Storm
ACT studies: Rigor at Risk (2007)
In 2006, only one-fourth of ACT-tested students met ALL college-readiness benchmarks
1 in 5 met no benchmarks at all
ACT Curriculum Survey (2007) 65 percent of college instructors
say state standards prepare students “poorly”
Education Pipeline – Are we preparing students?
Michigan WorkKeys Conference®
The Perfect StormSkilled Labor Gaps – ACT WorkKeys® Data
7Below 3
6
5
4
3
Level
18%
5%
32%
32%
7%
6%
All Examinees 9/06–8/07
Job Profiles 9/02–8/07
0%
4%
20%
43%
34%
0%
N4,164 423,739
Reading for Information
7
Below 3
6
5
4
3
Level
17%
6%
28%
25%
16%
8%
All Examinees 9/06–8/07
Job Profiles 9/02–8/07
1%
5%
14%
36%
44%
0%
N3,890 421,582
Applied Mathematics
Michigan WorkKeys Conference®
The writing on the wall: A Nation at Risk (1983)
Countries matching/surpassing U.S. educational achievements
Educators losing sight of basic schooling principles
Foreign products gaining edge
Other reports: Insufficient number of skilled workers to fill jobs
Michigan WorkKeys Conference®
Multiple components: Job profiling Skills assessment Skill training
Foundational Skills – applicable to whole workforce 2007 – Personal Skills added
Helps employers avoid a ‘shotgun’ approach to training
The WorkKeys SYSTEM
Michigan WorkKeys Conference®
A ‘ruler’ for skills
Michigan WorkKeys Conference®
A career skills credential to be used with diplomas, resumes, etc.
Powered by WorkKeys®
WorkKeys – 14,000 jobs profiled
TM
Michigan WorkKeys Conference®
Bronze Silver Gold
Automotive Body Repairers
Butchers & Meat Cutters
Cooks, Cafeteria Workers
Furniture Finishers
Home Health Aides Housekeeping Supervisors
Janitorial Supervisors
Machine Set-up Operators
Painting & Coating Workers
Refuse Material Collectors
Accounting Clerks
Auto Master Mechanics
Billing Clerks
Licensed Practical Nurses
Machine Operators
Machinists
Medical Laboratory Technicians
Payroll Clerks
Pipe Fitters
Production Inspectors
Computer Programmers
Electricians
Environmental Engineering Technicians
Executives
Instrumentation Technicians
Librarians
Semiconductor Processors
Training & Development Specialists
Vocational Education Teachers
Wholesale & Retail Buyers
TM
Michigan WorkKeys Conference®
TM
Michigan WorkKeys Conference®
TM
Michigan WorkKeys Conference®
WHY? ONE credential, nationally
recognized Survives changes in government Has MEANING for employers
TM
Michigan WorkKeys Conference®
Michigan – Leading the Way
Michigan WorkKeys Conference®
Grand Rapids, Mich. – WIRED project
Goal: 50,000 NCRCs issued by 2012
Buy-in from more than 100 regional employers
Michigan Merit Exam – Making the NCRC available to ALL Michigan students
TM
Michigan WorkKeys Conference®
Surviving ‘The Perfect Storm’
Michigan WorkKeys Conference®
Adopt solutions that work
Work together
Embrace a common language – related to skills
Get business leaders to get behind a skills-based message
Surviving ‘The Perfect Storm’
Michigan WorkKeys Conference®®
Michigan WorkKeys Conference
Questions/Comments?
www.act.org