Ensuring a Skilled Workforce
Jason Weedon, Senior Vice President, Corporate Relations & Strategic Partnerships
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What To Expect Today
1. Employers’ increasing expectations for the workforce which is leading to higher education and training requirements.
2. National picture of education achievement and how college and career readiness is an economic imperative.
3. Recognition for the state’s leadership in several education metrics.
4. Areas of opportunity if all Cornhusker students are to graduate ready to succeed in college and the workplace.
5. Strategies for NE chambers to support education reform to help ensure a skilled workforce.
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The U.S. Economy and Our Education System Are Directly Linked
• 53% of business leaders reported difficulties in recruiting employees with the needed skills, technical training and education.
U.S. workers lack the education and skills needed to compete successfully in the global economy.
• 83% of U.S. manufacturers reported a moderate or severe shortage of skilled workers.
• By 2018 there will be 3 million fewer college graduates than will be required by the labor market.
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Education and Training Requirements Increasing Over Time
Bachelor's & AboveSome College /
Associate DegreeHigh School GraduateHigh School
Dropout
0%
5%
10%
15%
20%
25%
30%
35%
40%
33%29%
28%
10%
32%27%30%
11%
16%
12%
40%
32%
Percentage of Workforce by Education Level2018
2002
1973
Source: Carnevale, A.P. et al. (June 2010). Help Wanted: Projections of Jobs and Education Requirements Through 2018. Georgetown Center on Education and the Workforce. www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/FullReport.pdf.
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The Skills Gap
•In 1950, 60% of jobs were classified as unskilled, attainable by young people with high school diplomas or less. Today, 20% of jobs are considered to be unskilled.
• One result: The demand for middle- and high-skilled workers is outpacing the state’s supply of workers educated and experienced at that level.
Sources: Carnevale, Anthony P. and Donna Desrochers (2003). Standards for What? The Economic Roots of K-12 Reform. Education Testing Services. http://www.learndoearn.org/For-Educators/Standards-for-What.pdf ; Skills to Compete. http://www.skills2compete.org National Center for Higher Education Management Systems, analysis of American Community Survey. http://www.higheredinfo.org
81% vs.
42%% of jobs in Nebraska requiring some education
beyond high school
% adults in Nebraska with an associate degree or
above
Unemployment is low, but demand for middle-skilled workers outpaces Nebraska’s supply.
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Source: National Skills Coalition. (2010). The Bridge to a New Economy: Worker Training Fills the Gap. http://www.nationalskillscoalition.org/assets/reports-/the-bridge-to-a-new-economy.pdf. ; National Skills Coalition. (2011). State Middle Skill Fact Sheets. http://www.nationalskillscoalition.org/resources/fact-sheets/state-fact-sheets/.
Low Skills
Middle Skills
High Skills
0% 10% 20% 30% 40% 50% 60%
21%
51%
28%
19%
52%
29%
U.S. Nebraska
Require some
education and training
beyond high school
Employment Shares by Occupational Skill Level
The Rise of Middle-Skill Jobs
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Returns on Investment in Education: Higher Annual Earnings
Bachelor’s & Above
Some College
High School Graduate
High School Dropout
2%
3%
3%
11%
$56,396
$32,438
$30,012
$11,853
Mean Income Unemployment Rate
Source: U.S. Census Bureau (2013). Current Population Survey. Figures are based on the total persons in the civilian labor force. http://www.census.gov/cps/data/cpstablecreator.html
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Returns on Investment in Education: Increased Lifetime Earnings
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000 Estimated Average Lifetime Earnings
by Education Level
Source: Carnevale, Anthony P. et al. (June 2010). Help Wanted: Projections of Jobs and Education Requirements Through 2018. Georgetown Center on Education and the Workforce.
0
How do U.S. Educational Outcomes Compare Internationally?
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International Competitiveness
300
350
400
450
500
550
Aver
age
Scal
e Sc
ore
On the 2006 PISA, the U.S. ranked 25th out of 30 OECD countries in mathematics performance.
Higher than U.S. average Not measurably different from U.S. average Lower than U.S. average
Source: NCES. (2006). PISA Results. http://nces.ed.gov/surveys/pisa/.
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International Competitiveness
Source: OECD. (2013). Education at a Glance 2013: OECD Indicators. OECD Publishing.http://dx.doi.org/10.1787/eag-2013-en; National Center for Higher Education Management Systems. Analysis of 2011 American Community Survey. http://www.higheredinfo.org.
Percentage of 25–34-Year-Olds with a Postsecondary Degree (in 2011)
A Closer Look at Educational Outcomes in Nebraska
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Percent of H.S. Graduates Going Directly to College among Top Performing States:
Nebraska Students Are Graduating High School and Moving on to Postsecondary
MSCTMANMSDNENational Average
0%
50%
100%79%79%
73%72%72%70%63%
Source: National Center for Higher Education Management Systems, analysis of 2011 American Community Survey. http://www.higheredinfo.org
However: Are NE high school graduates ready for college?
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Percentage of Students in Two-Year and Four-Year Institutions Requiring Remediation
Enrollment in College Does NOT Equal College Readiness
Four-Year NEFour-Year U.S.
Two-Year NETwo-Year U.S.
0%
10%
20%
30%
40%
50%
60%
20%
55%
? ?
Source: http://www.completecollege.org/docs/CCA-Remediation-final.pdf.
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Enrollment in College Does NOT Equal College Readiness
Source: http://www.completecollege.org/docs/CCA-Remediation-final.pdf.
0%
50%
100%
69%66%66%66%64%
55%56%
US
Percent of NE Students Completing a Bachelor’sDegree Within 6 Years as Compared Nationally and to Top Performing States
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College-and Career-Ready Policy Agenda
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Where Nebraska Stands on Key College-and Career-Ready Policies
CCR Policies Status
Standards “Not rigorous enough” according to independent external reviews.
Course-taking/Graduation Requirements
In place.
NeSA Assessments Proficiency standards “not rigorous enough” when compared to ACT and NAEP.
Reporting and Accountability A new accountability system in planning phase.
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Expectations Gap: State Assessments
Proficiency on Nebraska State Assessment (NeSA) as Compared to NAEP
8th Grade Reading4th Grade
Reading8th Grade Math4th Grade
Math
0%
50%
100%
NeSANAEP
78%79%
66%73%
37%37%36%45%
Source: National Assessment of Educational Progress. (2013). Analysis of data downloaded from http://nces.ed.gov/nationsreportcard/naepdata and Nebraska Public Schools State of the Schools Report..
Taking Action
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Chamber Action: State/Local Partnerships
KENTUCKY: The Kentucky Chamber of Commerce and Prichard Committee for Academic Excellence demonstrate how business–education partnerships can propel and rally support for college and career readiness, by:
• Making public education a top strategic priority for 2014.
• Hosting a statewide tour of local chambers with presentations about college and career readiness.
• Implementing “Top 20 by 2020” – a statewide campaign to put Kentucky in the highest tier of public education in the nation.
• Developing Business Leader Champions for Education — a group of corporate executives and other KY business leaders who support public education.
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Chamber Action: Local
TEXAS: In late 2012, the Austin Chamber of Commerce saw a problem in its community: 84% of unemployed locals had never earned a postsecondary degree.
The Austin business community announced that by 2015 they want to:
• Raise to 70% the share of local high school graduates who enroll directly into college.
• Improve by 50% the number of students who complete college/earn a degree.
• Encourage greater use of technology in schools.
Over 50 companies, nonprofits and higher education institutions have signed on in support.
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Chamber Action: State/Local Partnership
Georgia: Since 2004, the state chamber of commerce has partnered with numerous local chambers and the Georgia Partnership for Excellence in Education to host more than 175 briefings (by request) on “The Economics of Education.”
• Local audiences typically include state legislators, educators, fellow business leaders and locally elected leaders.
• The briefings provide an overview of educational achievement and attainment across the state, as well as the cost of an undereducated population to both large and small communities.
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Chamber Action: Local
Arizona: The Tucson chamber responded to a “moral imperative to prepare our young people for their future success” and a need to prepare our future workforce to compete in the world economy.
• In a quarterly newsletter, the chamber outlined the state’s education data, advocated for increasing availability to data and improving accountability, and outlined strategies for education improvement.
Iowa: The Greater Des Moines Partnership held inaugural “Business Summit for Education Reform”. In conjunction with Iowa Chamber Alliance and Iowa Business Council.
• Purpose was to create strong, unified business voice and take leadership role in aligning education and workforce goals to foster economic development.
Wisconsin: In 2012, the first round of test scores from Wisconsin’s new and more rigorous annual assessments were released. Rooted in higher expectations, the assessments yielded significantly lower scores than in previous years.
In response, the Metropolitan Milwaukee Association of Commerce penned an op-ed:
• “We need to improve the performance of all our kids. There is simply no other option if we want our city to be an economic engine for generations to come.”
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Where To Focus
1. Support next generation K–12 standards informed by postsecondary and workforce.
2. Support rigorous measures of student achievement that are aligned to the standards and set a higher bar for proficiency.
3. Advocate for data to obtain information on remediation rates and to drive continuous improvement decisions.
4. Ensure new accountability indicators reflect the needs of postsecondary and the workforce.
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How to Engage
1. Learn more about the links between education reform and economic development.• It’s an issue of local, state and/or global competitiveness for the entire community.• It’s an issue of workforce development and closing the “skills gap” for the business
community.
2. Make college and career readiness the focus of strategic action for your chamber.• Engage your leadership (e.g., when speaking publically, include statements that
connect education reform with workforce development).• Engage your members and employees (e.g., provide data on the achievement gap).• Engage the media (e.g., convey business support for college and career readiness).• Engage your policymakers (e.g., include education reform messages in
communication).• Partner with other business or civic groups to further amplify your voices in support of
college and career readiness for all Nebraska students.
.
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For More Information: Achieve’s Business Center for a College-and Career-Ready America
www.businessandeducation.org