Rebuilding the Middle Class Joe D. May President Louisiana Community and Technical College System Thursday, July 25, 2013

Which Do People Want Most? 43%The Opportunity to Succeed 37%The Good Life 34%The Pursuit of Happiness 22%The American Dream 17%A Fair Shake 13%To Be Left Alone 9%A Fresh Start 9%Everything I Can Get 8%A Fighting Chance 8%A New Beginning Source: Dr. Frank I. Luntz, What Americans Really Want... Really, 2009

The Middle Class In 1970, nearly 75% of middle class workers had no higher education beyond high school By 2007, that figure had dropped below 40% Source: Georgetown University Center on Education and the Workforce

The Community College Challenge There is increasing debate about a skills mismatch in our economy We are witnessing deep and long- term impacts from stagnant job growth We must address these challenges with fewer resources

What Do We Expect From College Leaders? Community colleges will be expected to produce more degrees of a higher quality at a lower per-student cost to an increasingly diverse population The skills and qualities that made community college presidents effective when the dominant benchmark of success was access alone are no longer the same now that expectations extend to higher levels of completion, quality and productivity

Today’s Leaders Must Be Outwardly Focused Today’s leaders must understand that colleges do not have needs – individuals, employers and communities have needs Boards and leadership must be looking up and out, not down and in Our purpose for existing is to solve the problems of individuals, employers and communities

The Big Problem: Skills Mismatch Over the past four years, most states have experienced among the highest unemployment rate in a generation, yet 53% of employers find it difficult to find qualified workers How can so many people want a job in a climate where so many businesses are eager to hire, and yet workers remain unemployed and jobs go unfilled?

Workforce Misconceptions Many business and educational leaders have the misconception that a bachelor’s degree is the surest route to a good job In the USA, while job growth for all workers is estimated to average 10% ( ), job growth for associate’s degrees and other credentials that are less than a year in length is expected to be nearly double that at 19.1% Source: Across the Great Divide, March 2011

Higher Education Needs On average, most states need 3-4 people earning technical certificates and degrees for each bachelor’s or professional degree This is true of health care organizations, manufacturing and processing, engineering, specialized construction and many other fields

Earning Power: Skills Matter “... a significant percentage of individuals holding middle-skills jobs out earn many of those holding bachelor’s degrees.” Source: Anthony P. Carnevale, Stephen J. Rose and Ban Cheah, with the Georgetown University Center on Education and the Workforce

Majors and Occupations Matter 43% of licenses and certificates earn more than an associate degree 27% of licenses and certificates earn more than a baccalaureate degree 31% of associate degrees earn more than a baccalaureate degree Source: Georgetown Center on Education and the Workforce

Earning Power: Skills Matter In many states associate degree graduates earn more than those earning a bachelor’s degree Both Colorado and Louisiana are in this category In Louisiana, associate degree graduates are paid an 8.6% premium over bachelor degree recipients

The New Middle Class By 2020, nearly two out of every three U.S. jobs will require some postsecondary education and training High-school educated workers represent a decreasing share of the middle class (Middle class includes all workers with annual income between $35,000 and $70,000)

What are Middle Skill Jobs? High-skill Occupations: highly educated workers with analytical ability, problem solving and creativity Traditional Middle-skill Occupations: workers who perform routine tasks that are procedural and repetitive Low-skill Occupations: workers with no formal education beyond high-school. They work in occupations that are physically demanding and cannot be automated

What are Middle Skill Jobs? New High-skill Occupations: bachelors and above highly educated workers with a college degree and above New Middle-skill Occupations: “some college” highly educated workers with education above a high-school diploma, but less than a 4-year degree Low-skill Occupations: workers with no formal education beyond high-school. They work in occupations that are physically demanding and cannot be automated

“What the whole world wants is a job.” Source: Jim Clifton, “The Coming Jobs War”

To get these jobs, Americans must come through the doors of community colleges.