Workforce 2020 and Beyond: Root Causes of U.S. Workforce Challenges Dr. Carol D’Amico Ivy Tech Community College of Indiana

Major Events Fall of Berlin Wall: November 9th, 1989 Opened communication between the East and West Created an environment for new capitalistic markets *Tom Friedman – The World is Flat

Major Events Birth of the internet Netscape goes public on August 9th, 1995 Creation of the Internet as we know it today: world wide web, , etc. Microsoft Windows 95 was released a week later integrating the Internet into the personal computer Knowledge accessible and portable *Tom Friedman – The World is Flat

Major Events Major Events Outsourcing Death of distance Technology enables virtually any job to be outsourced: tax preparation, journalism, reading X-rays, personal assistants, and even the McDonalds drive through. Knowledge and work can be shared in real-time without the constraints of geographic barriers. *Tom Friedman – The World is Flat

Challenges for the US Worker Gap Skills Gap Ambition Gap

Worker Gap: Demographics Shifts Millions Global Economic Workforce

Worker Gap: Demographic Shift Workers added from India and China Highly motivated Technology savvy More cell phones in China than the total US population

Worker Gap: Demographic Shifts No Growth of Native Born Workforce Ages 25-54

Worker Gap: Changing Composition Future US Workforce Composition

Worker Gap: Shrinking Workforce Size of the workforce between ages will shrink by 3.5 million by By 2015 there will be 16 million additional workers over the age of 50 than there are today.

Worker Gap There will be 19 million more jobs than workers in the US by % of the people available to fill these vacancies will be minorities. Minority youngsters being educated today will comprise 35% of the nation’s workforce by 2010.

Worker Gap Shortage of Educated Workers There will be a shortage of 14 million post- secondary educated workers by There will be a shortage of 7 million non-college educated workers by The pipeline is not well prepared.

Skills Gap: Challenges for the US Young workers will change careers times during their lifetime. Many are unprepared for this reality. 80% of all new jobs created in the US today require some form of post-secondary education. 52% of Americans have achieved this level today.

Skills Gap: Increased Skills Required 72% of the increased post-secondary educational requirements are the result of “upskilling” Employers are demanding a higher level of skill for jobs that previously required no post-secondary education.

Skills Gap: Workforce Implications Lower skilled or less technologically knowledgeable people will be the hardest hit. The concept of lifetime employment will be replaced by lifetime employability.

Skills Gap: Skills and Abilities in the Knowledge Economy Basic skills: Reading, Writing, and Mathematics Foundation: Knowing how to learn Communications: Listening and oral communication Adaptability: Creative thinking and problem solving skills Applied Skills: Occupational and professional Competencies

Skills and Abilities in the Knowledge Economy Group Effectiveness: Interpersonal skills, negotiation, and working collaboratively within a team environment Influence: Organizational effectiveness and leadership qualities Personal Management: Self Esteem and self motivation Attitude: Positive cognitive style

Skills Gap: Lack of Qualified Workers Both China and India exceed the US in the total number of finance, accounting, and life science professionals. The US had the smallest decade long increase in the share of young adults enrolled in post- secondary education. This amounts to less than a 1% growth compared to countries such as the UK, Ireland, France, and Spain.

Worker Gap: Lack of Qualified Workers Estimated Annual College Graduation Rates

Skills Gap: Lack of Qualified Workers Science/ Engineering Graduates

Skills Gap: Lack of Qualified Workers Science and Engineering Two million baby boomers will retire from these fields by The US population will produce 198,000 workers to replace them. The US ranked 3rd in the world three decades ago in graduating science and engineering students. The US now ranks 17th in this category.

Skills Gap: Lack of Qualified Workers Percent of Workers Without a College Education

Skills Gap: Lack of Qualified Workers Workers 25 years and older with some post- secondary education 19% of workforce 20 Years ago 19% of workforce 20 Years ago 4% of workforce next 20 years 4% of workforce next 20 years

Skills Gap: Lack of Qualified Workers in Pipeline US High School Graduation Rank Ranked first among adults ages Ranked first among adults ages Ranked fifth among adults ages Ranked fifth among adults ages Ranked tenth among adults ages Ranked tenth among adults ages 25-34

Skills Gap: Lack of Qualified Workers in Pipeline US 15-Year-Olds Rank Near Middle of the Pack Among 32 Participating Countries: 1999

Skills Gap: Lack of Qualified Workers in Pipeline 2003: U.S. Ranked 24 th out of 29 OECD Countries in Mathematics

Skills Gap: Lack of Qualified Workers in Pipeline U.S. Ranks 23 rd out of 29 OECD Countries in the Math Achievement of the Highest Performing Students*

Skills Gap: Achievement Gaps in Future Workforce African American and Latino 17-year-olds do math at the same levels as Caucasian 13-year- olds. African American and Latino 17-year-olds do math at the same levels as Caucasian 13-year- olds. African American and Latino 17-year-olds read at the same levels as Caucasian 13-year-olds. African American and Latino 17-year-olds read at the same levels as Caucasian 13-year-olds.

Skills Gap: Achievement Gaps in Future Workforce Of Every 100 Kindergartners

Implications Clearly, much more remains to be done in elementary, middle, and high schools.

Workforce Implications: Educators Sound the alarm and increase awareness of achievement gaps Increase emphasis on mathematics and science Explore new ways of delivering education to adult workforce

Workforce Implications: Employers Diversity: ethnic, age, skill levels Diversity: ethnic, age, skill levels Generational mix Generational mix Assessment of skills needed Assessment of skills needed Commitment to workforce development Commitment to workforce development Workforce development strategic plan Workforce development strategic plan “Employer Learning Networks” “Employer Learning Networks” Immigration issues Immigration issues Business/Education relationships Business/Education relationships

Workforce 2020 and Beyond: Root Causes of U.S. Workforce Challenges Dr. Carol D’Amico Ivy Tech Community College of Indiana