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Ensuring a Skilled Workforce Jason Weedon, Senior Vice President, Corporate Relations & Strategic Partnerships IN DEPTH 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. 2 BUSINESS RESOURCES FOR A COLLEGECOLLEGE- AND CAREER READY CAREER-READY AMERICA IN DEPTH The U.S. Economy and Our Education System Are Directly Linked U.S. workers lack the education and skills needed to compete successfully in the global economy. • 53% of business leaders reported difficulties in recruiting employees with the needed skills, technical training and education. • 83% of U.S. manufacturers reported a moderate or severe shortage of skilled workers. 3 BUSINESS RESOURCES FOR A COLLEGECOLLEGE- AND CAREER READY CAREER-READY AMERICA • By 2018 there will be 3 million fewer college graduates than will be required by the labor market. Education and Training Requirements Increasing Over Time Percentage of Workforce by Education Level 2018 40% 2002 40% 32% 33% 1973 32% 30%28% 27% 29% 35% 30% 25% 16% 20% 15% 12% 10% 11% 10% 5% 0% 4 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA High School Dropout High School Graduate Some College / Associate Degree Bachelor's & Above 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. The Skills Gap Unemployment is low, but demand for middle-skilled workers outpaces Nebraska’s supply. • 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. 81% vs. 42% 5 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER READY AMERICA % of jobs in Nebraska requiring some education beyond high school % adults in Nebraska with an associate degree or above 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 The Rise of Middle-Skill Jobs Employment Shares by Occupational Skill Level U.S. 29% High Skills 52% 51% 19% Low Skills BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA Require some education and training beyond high school 28% Middle Skills 6 Nebraska 21% 0% 10% 20% 30% 40% 50% 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/. 60% Returns on Investment in Education: Higher Annual Earnings $11,853 11% $30,012 3% $32,438 3% $56,396 2% 7 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA 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 Returns on Investment in Education: Increased Lifetime Earnings Estimated Average Lifetime Earnings by Education Level $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 0 8 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA 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. How do U.S. Educational Outcomes Compare Internationally? International Competitiveness On the 2006 PISA, the U.S. ranked 25th out of 30 OECD countries in mathematics performance. 550 Average Scale Score 500 450 400 350 10 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA Fi n lan d K ore Ne th e a Sw rla nd s itze rla nd Ca na da Ja Ne w Z pan ea l Au a nd str a Be l ia l giu m D Cz enm a ec h R rk ep u Ice b la n Au d s Ge tria rm a Sw ny ed en OE I CD re lan d Av era g Fra e nce Un P o it e d K l and Slo i ngd om vak Re pu b H Lu ung a xem ry bo u No rg rw ay Sp Un a it e d S in t at Po es rt u ga l Ita Gr ly ee c Tu e rke Me y xi c o 300 Higher than U.S. average Not measurably different from U.S. average Source: NCES. (2006). PISA Results. http://nces.ed.gov/surveys/pisa/. Lower than U.S. average International Competitiveness Percentage of 25–34-Year-Olds with a Postsecondary Degree (in 2011) 11 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA 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. A Closer Look at Educational Outcomes in Nebraska Nebraska Students Are Graduating High School and Moving on to Postsecondary Percent of H.S. Graduates Going Directly to College among Top Performing States: 70% 72% 72% 73% 79% 100% 79% 63% 50% 0% National Average 13 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA NE SD NM MA CT MS However: Are NE high school graduates ready for college? Source: National Center for Higher Education Management Systems, analysis of 2011 American Community Survey. http://www.higheredinfo.org Enrollment in College Does NOT Equal College Readiness Percentage of Students in Two-Year and Four-Year Institutions Requiring Remediation 60% 55% 50% 40% 30% 20% ? 14 Two-Year U.S. Two-Year NE ? Four-Year U.S. Four-Year NE BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA Source: http://www.completecollege.org/docs/CCA-Remediation-final.pdf. 20% 10% 0% Enrollment in College Does NOT Equal College Readiness Percent of NE Students Completing a Bachelor’s Degree Within 6 Years as Compared Nationally and to Top Performing States 100% 64% 56% 66% 66% 66% 55% 69% 50% 0% US 15 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA Source: http://www.completecollege.org/docs/CCA-Remediation-final.pdf. College-and Career-Ready Policy Agenda 16 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA Where Nebraska Stands on Key College-and Career-Ready Policies CCR Policies 17 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA 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. Expectations Gap: State Assessments Proficiency on Nebraska State Assessment (NeSA) as Compared to NAEP 79% 73% 100% 78% 66% 45% 36% 37% 37% 50% 0% 4th Grade Math 8th Grade Math 4th Grade Reading 8th Grade Reading 18 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER-READY AMERICA 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 IN DEPTH 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. 20 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER READY AMERICA IN DEPTH 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. 21 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER READY CAREER-READY AMERICA Over 50 companies, nonprofits and higher education institutions have signed on in support. IN DEPTH 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. 22 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER READY CAREER-READY AMERICA IN DEPTH 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. 23 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER READY CAREER-READY AMERICA In response, the Metropolitan Milwaukee Association of Commerce penned an oped: • “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.” IN DEPTH 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. 24 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER READY CAREER-READY AMERICA IN DEPTH 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. . 25 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER READY CAREER-READY AMERICA IN DEPTH For More Information: Achieve’s Business Center for a College-and Career-Ready America 26 BUSINESS RESOURCES FOR A COLLEGE- AND CAREER READY CAREER-READY AMERICA www.businessandeducation.org