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Workforce 2020 and Beyond: Root Causes of U.S. Workforce Challenges

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

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Workforce 2020 and Beyond: Root Causes of U.S. Workforce Challenges

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

  2. 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

  3. 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, email, 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

  4. 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

  5. Challenges for the US • Worker Gap • Skills Gap • Ambition Gap

  6. Millions Worker Gap: Demographics Shifts Global Economic Workforce

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

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

  9. Worker Gap: Changing Composition Future US Workforce Composition

  10. Worker Gap: Shrinking Workforce • Size of the workforce between ages 30-49 will shrink by 3.5 million by 2015. • By 2015 there will be 16 million additional workers over the age of 50 than there are today.

  11. Worker Gap • There will be 19 million more jobs than workers in the US by 2008. • 40% 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.

  12. Worker Gap Shortage of Educated Workers • There will be a shortage of 14 million post- secondary educated workers by 2020. • There will be a shortage of 7 million non-college educated workers by 2020. • The pipeline is not well prepared.

  13. Skills Gap: Challenges for the US • Young workers will change careers 10-14 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.

  14. 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.

  15. 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.

  16. 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

  17. 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

  18. 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.

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

  20. Skills Gap: Lack of Qualified Workers Science/ Engineering Graduates

  21. Skills Gap: Lack of Qualified Workers Science and Engineering • Two million baby boomers will retire from these fields by 2008. • 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.

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

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

  24. Skills Gap: Lack of Qualified Workers in Pipeline US High School Graduation Rank • Ranked first among adults ages 45-65 • Ranked fifth among adults ages 35-44 • Ranked tenth among adults ages 25-34

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

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

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

  28. 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 read at the same levels as Caucasian 13-year-olds.

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

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

  31. 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

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

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

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