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Rebuilding the Middle Class

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

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Rebuilding the Middle Class

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  1. Rebuilding the Middle Class Joe D. MayPresidentLouisiana Community and Technical College System Thursday, July 25, 2013

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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?

  8. 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% (2008-2018), 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

  9. 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

  10. 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

  11. 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

  12. Earning Power: Skills Matter • In many states associate degree graduates earn morethan 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

  13. 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)

  14. 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

  15. 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

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

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

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