Workforce Readiness: Why It is Oklahoma's Path to Economic Growth

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Workforce ReadinessWorkforce ReadinessWhy It Is Oklahoma’s Path for Economic Growth

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Workforce Readiness: What We Know Workforce Readiness: What We Know

• Global competitive landscape has changed.• Workforce development leads to economic

development.• There is an acute shortage of skilled labor

that’s worsening.• K-20 education system is not producing the

workers that employers need.• Those in the workforce will need ongoing

training to keep their skills updated.

SHRM 2007 Symposium on the Workforce Readiness of the Future U.S. Labor Pool

3Source: Bureau of Labor Statistics

Characteristics of WorkforceCharacteristics of WorkforceMedian Age of U.S. worker in 2000 was

39.

In 2010, it is 41.

First time in 25 years that youngest workforce grew more than overall.

35-44 year old cohort decreased by 10%.

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Importance of Skilled Workforce:Importance of Skilled Workforce:3 Forces Changing our Nation’s Future3 Forces Changing our Nation’s Future

“America’s Perfect Storm: Three Forces Changing our Nation’s Future” 2007 Irwin Kirsch, ETS

Divergent Skill Distribution

Demographic Shifts

Changing EconomyDifferent Labor Market— Employment Growth— Correlation Between Earnings and Educational Attainment

Ongoing shift in demographic profile of our population— Highest immigration rates in nearly a century— Labor force growing slower

Uneven distribution of skills across population and ethnic groups

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Employers BeliefEmployers Belief

• About 40% of high school graduates lack the literacy skills employers seek.

• More than 50% of recent high school graduates are weak in such skills as oral/written communications, problem-solving, and critical thinking.

Source: Alliance for Excellent Education Fact Sheet, Feb. 2009

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Key Points: Workforce ReadinessKey Points: Workforce Readiness

• Issue: Requires systemic change. Teachers also part of the problem.

• Issue: Not priority for policymakers.• Issue: Pushing changes in policy hasn’t been a

business priority. The business community needs to articulate what is needed for the educational system to produce. Employers need strategies to deal with the talent shortage in the short term.

• Issue: Workers need both basic and applied skills. Credentials are replacing capabilities.

• Issue: It requires collaboration between the public and private sector on both a national and local level.

• Issue: Workforce uncertainty requires flexibility.• Issue: Leadership is lacking.SHRM 2007 Symposium on the Workforce Readiness of the Future U.S. Labor Pool

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Achievement Gap Fact: World College Graduates

Source: Education Equality Project www.edequality.com/fast_facts

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Achievement Gap Fact: International RankingAchievement Gap Fact: International Ranking

(2006) Top 30 Organization for Economic Co-operation and Development (OECD) nations, the United States ranks:

25th in mathematics 21st in science

Source: Education Equality www.edequality.com/fast_facts

http://www.edequality.com/fast_facts

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Achievement Gap Fact: International RankingAchievement Gap Fact: International Ranking

Nearly 60% of Engineering PhD awarded annually in the U. S. are earned by foreign nationals.

Indians have founded more engineering and technology companies in the United States during the past decade than immigrants from Britain, China, Taiwan and Japan combined.

Source: Where the Engineers Are, Vivek Wadhwa, 2007 www.2mminutes.com/films/reference.asp

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Achievement Gap Fact: ScienceAchievement Gap Fact: Science

Nearly 40% of U. S. High School students do not take any science class more challenging than General Biology.

Source: Math & Science Education in a Global Age: What the U.S. Can Learn from China, Asia Society, 2006

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AchievementAchievement Gap Fact: ScienceGap Fact: Science

5th and 9th grade students are taught Physical Science by a teacher lacking a major or certification in the area.

Source: National Academy of Sciences, Rising Above the Gathering Storm, 2005 www.2mminutes.com/films/reference.asp

90%

http://www.2mminutes.com/films/reference.asp

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Achievement Gap Fact: MathAchievement Gap Fact: Math

“What percentage of 8th grade Mathematic teachers earned a degree in Mathematics?”

48%

Source: National Commission on Mathematics & Science Teaching for the 21st Century, Before It’s Too Late 9/2000 www.2mminutes.com/films/reference.asp

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Achievement Gap Fact: MathematicsAchievement Gap Fact: Mathematics

Nearly 55% of U. S. High School students do not take any Math courses beyond 2 years of Algebra and 1 year of Geometry.Source: National Center for Education Statistics 2004 – Quoted in Math & Science Education in a Global Age: What the U.S. Can Learn from China, Asia Society, 2006

www.2mminutes.com/films/references.asp

http://www.2mminutes.com/films/references.asp

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Nearly 70% of high school parents in America think their children’s schools teach the right amount of math and science.

79% of high school principals aren’t worried about low academic standards.

Source: www.publicagenda.org Reality Check 2006, A Report from Education Insights at Public Agenda

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(2003 Ranking) United States 15-year-olds:

24th out of 29 developed countries in Mathematics

Source: Organization for Economic Cooperation & Development (OECD),

Pisa 2003 Results www.oecd.org

www.2mminutes.org/images/the-facts-3

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Achievement Gap Fact: Achievement Gap Fact: Math Proficiency By 12Math Proficiency By 12thth Grade Grade

Source: Competitiveness Index, “Where America Stands” 11/14/06

34%34% Asian-Americans

20%20% Whites

10%10% Native Americans

4%4% Hispanics

3%3% African-Americans

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Achievement Gap Fact: IncarcerationAchievement Gap Fact: Incarceration

High School Dropout is 5—8 times more likely to become incarcerated than a college graduate.

Source: Education Equality Project www.edequality.com/fast_facts \ U. S. Department of Education

Increase high school completion rate for all 20—60 year old would reduce costs in the criminal justice system annually by as much as1%$1.4 Billion

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Achievement Gap Fact:Achievement Gap Fact: Cost per Student to Prison Inmate Cost per Student to Prison Inmate

9, 644

22, 600Source: Education Equality Project www.edequality.com/fast_facts

STUDENTSPRISONERS

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Know the FactsKnow the Facts

Every 26 seconds, a student drops out of high school in America.

33% high school students will drop out before graduation.

1.1 million students each year

7,000 students drop out each day.7,000 students drop out each day.


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Top 10 Fast Fact: By 4Top 10 Fast Fact: By 4thth Grade Grade



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Top 10 Fact: Top 10 Fact: Low-Income Achievement Levels Low-Income Achievement Levels

On average students eligible for free or reduced lunch are approximately two years of learning behind the average ineligible student.



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America’s High School StudentsAmerica’s High School Students

• Only about 33% of students entering the 9th grade each fall graduate 4 years later prepared for college or the contemporary workplace.

• Another 33% will leave high school with a diploma but without the skills and knowledge needed to succeed in college or the contemporary workplace.

• Another 33% will not graduate from high school within four years, if at all.

In this country, there are about 2,000 high schools that produce the majority of dropouts.

Source: Alliance for Excellent Education: “The Graduation Promise Act One: Page Summary”

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Top 10 Fast Fact: (2004)Top 10 Fast Fact: (2004)Students Requiring College RemediationStudents Requiring College Remediation


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Why Be InvolvedWhy Be Involved

“Overcoming this lack of skilled workers will increasingly become the responsibility of companies themselves.” Helen Hankin, The New Workforce

“If we don’t get the people thing right, we lose; it is the most important thing in all our businesses.”

Jack Welsh, Former CEO General Electric

“Student performance is not just an education issue. It’s an economic issue, a civic issue, a social issue, and a national security issue.”U. S. Department of Education

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Costs of Education GapCosts of Education Gap

Wars in Iraq & Afghanistan

+

Stimulus Package

($1.3 to $2.3 Trillion Annually)

Source: Kevin Huffman, The Washington Post January 4, 2010

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Economic ImpactEconomic Impact

These educational gaps impose on the United States’ economy is equivalent

Permanent National RecessionPermanent National Recession

McKinsey & Company: “The Economic Impact of the Achievement Gap in America’s Schools” (April 2009)

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Why is education important?Why is education important?The Engine for JobsThe Engine for Jobs

– Positive relationship between an investment in education and a strong economy.

– An educated citizenry leads to increased productivity, economic growth and good jobs.

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Achievement Gap Fact:Achievement Gap Fact: 70% Top Income Earners 70% Top Income Earners


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Achievement Gap Fact:Achievement Gap Fact: Top College Talent Pool Top College Talent Pool


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Top 10 Fast Fact: U. S. Lost WagesTop 10 Fast Fact: U. S. Lost Wages

Class of 2008 high school dropouts will cost the United States almost $319 billion in lost wages over their lifetimes.Source: Education Equality Project www.edequality.com/fast_facts

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Achievement Fast Fact:Achievement Fast Fact:

Parental involvement is associated with higher student achievement outcomes.


77 Studies300,000 Students

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“As we enter our second century of statehood, the test will be whether we rise to the moment and transform our state into a global winner based on workforce skills and talent, or passively let our competitive edge slip away.”

Governor Brad HenryGovernor Brad Henry

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What’s at Stake?What’s at Stake?• For Business

– Expansion– Quality workforce

• For Oklahomans– Higher wages– Quality Jobs– Better standard of living

• For Communities– Population growth– Economic vitality– Oklahoma’s reputation

Source: http://www.okcommerce.gov/workforce

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A Generation Slipping AwayA Generation Slipping Away

Every day in Oklahoma, 30 students leave their place in common education.

In the last 5 minutes, about 14 more students in Oklahoma have left high school without diplomas.

Oklahoma’s dropout Oklahoma’s dropout

raterate 33%33%

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2006-08 2006-08 American Community SurveyAmerican Community SurveyPopulation: 3.6 MillionPopulation: 3.6 Million

18 – 24 year olds

19.1% Less than High School

35.2% High School/GED attainment

25 years and over

15.1% Less than High School

84.9% High School or above

22.4% Bachelor’s or above

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The Impact to Our StateThe Impact to Our State

How does the current high school drop out rate impact our state?

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A Look at OklahomaA Look at Oklahoma

70% High School Graduation Rate (2005)

67% College Readiness Rate (ACT Report, 2009)

58.4% College Enrollment Rate directly from H.S. (2007)

44% College graduation rate within 6 years (2008)

OK High School Dropouts for Class of 2008:

14,653

Source: www.edequality.com www.highereducation.org “Measuring Up 2008 The State Report Card on Higher Education” www.okhighered.org

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A Look at OklahomaACT Score 2009 AverageACT Score 2009 AverageAverage Composite Score = 20.7

English = 20.5 [ 18 ]Math = 19.9 [ 22 ]Reading = 21.4 [ 21 ]Science = 20.5 [ 24 ]

50% chance of obtaining B or higher.75% chance of obtaining C or higher.

Source: ACT Profile Report: Oklahoma (2009) www.act.org/news/data/09/pdf/states/oklahoma.pdf

71%

http://www.act.org/news/data/09/pdf/states/oklahoma.pdf

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Economic Impact: Economic Impact: Tulsa & Oklahoma City Tulsa & Oklahoma City

Class of 2008:– 4,153 Tulsa students dropped out from the

class.– 4,777 Oklahoma City students dropped out

from the class.

Combined Additional Earnings

Tulsa: $18 Million Annually Tulsa: $18 Million Annually Oklahoma City: $24 Million AnnuallyOklahoma City: $24 Million Annually

Source: www.edequality.com

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Economic Impact: Economic Impact: Tulsa & Oklahoma CityTulsa & Oklahoma City

Increased Human CapitalIncreased Human Capital

54%54% Tulsa 55%55% OKC

Students would likely continue their education, some earning as high as PhD or other Professional degree.


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Additional Tax Revenue

As these graduates’ incomes grow, local, state, property, income & sales tax revenues will also increase.

Each City would have increased revenue by

$3 Million$3 Million AnnuallyAnnuallyincreased spending and higher salaries


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Increased Home Sales (Mid-point of career)

$26 Million (Tulsa)$26 Million (Tulsa)

$32 Million (OKC)$32 Million (OKC)


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Each City increased Auto

Sales by

$2 Million$2 Million

Annual increase in auto sales


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Additional Jobs Supported (by Mid-Career)

Tulsa: 150 New Jobs

Oklahoma City: 200 New Jobs


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Economic Impact: Economic Impact: Tulsa* & Oklahoma City** Tulsa* & Oklahoma City**

Increase in Gross Regional Products

(by Mid-Career)


$23 Million*$29 Million**

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Economic Impact: Economic Impact: Tulsa* & Oklahoma CityTulsa* & Oklahoma City

Additional Spending

$13 Million*$13 Million*

$17 Million$17 Million

Additional Investment

$4 Million*$4 Million*$5 Million$5 Million


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Economic Impact: Tulsa

The MSA that includes Tulsa also includes 7 counties in Oklahoma. The 62 high schools located within this region have an average graduation rate of 66.9%. Nine of these are considered to be with schools fewer than 60% of freshman progress to their senior year on time.

http://www.all4ed.org/publication_material/EconMSA

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Economic Impact: Oklahoma City

The MSA that includes Oklahoma City also includes 7 counties in Oklahoma. The 71 high schools located within this region have an average graduation rate of 66.9%. Eleven of these are considered to be with schools fewer than 60% of freshman progress to their senior year on time.

http://www.all4ed.org/publication_material/EconMSA

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Ways You Can Become Involved Ways You Can Become Involved

• Look for programs that are already in place.

• Start small, pilot programs.• Speak in local middle/high school classes.• Provide tours at your business.• Implement ideas that directly relate to your

business goals.• Be willing to be the glue.

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Public/Private Partnership Public/Private Partnership ExamplesExamples

• Educator externships• Career Awareness• Career Day or Career Fairs• Job Shadowing• Take Our Daughters & Sons to Work Day®• Mentor Relationships• School-based enterprise• Work Experience

– DHS; DRS; WIA

• Curriculum Development• Education/Business Exchange

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Employee Support ExamplesEmployee Support Examples

• Allow employees volunteer time—tutoring/mentoring.

• Support/educate employee involvement in schools.

• Solicit parents of children.• Solicit businesses of parents.• Match contributions for educational programs

and scholarships.– Direct payment to educational institution– Cash bonus for GED attainment– Cash bonus for college completion

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Private/Public InvolvementPrivate/Public Involvement

• Integris Health• Oklahoma Christian

University• Local Fire Station• Local Churches• Over 300 Mentors• Parental Support

• Test Scores risen from 10 – 20s to 60 – 70s.

• Increase enrollment from 150 to 320, with a waiting list.

• 23% to 69% student involvement in sports.

• Teacher retention from 76% to 98%

• Decrease in conduct referrals from 37% to 11%

• Oklahoma A+ school

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Results:Results:

Business Benefits• Improved interpersonal and entry-level skills• Reduced training and remediation costs• Increased productivity• Reduced employee turnover• Effect a better match between current and future job

market needs and the career awareness and workforce skills of high school graduates

Benefits for HR Professionals• More talented/skilled employees recruited.• Better prepared workforce.• Skills for future learning/development.• Educators more in tune with employer needs.• Reduced training cost : 25% - 50%

– Lower initial training– Lower turnover & re-training

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Results:Results:

Benefits for Education:• Opportunity to share education successes.

• Shared Community and Industry involvement in Education Reform.

• Greater access to valuable teaching resources.

• Development of curriculum that is directly relevant to career placement and employment success.

Benefits for the Student:• Connects students to the “real” world of work.

• Promotes independent learning and higher-level skills such as interpersonal and team communications.

• Offers students the opportunity to find employment in industry and service fields that require higher-level skills.

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Benefits for the Community

• Increase the quality of community life through school system improvement.

• Higher standard of living• Stronger economic and tax base• Greater ability to attract and sustain

industry and business.• Stronger community - education - industry

relationships

Results:Results:

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Any Questions?Any Questions?

Glenda OwenLinkedIn: www.linkedin.com/in/GlendaOwenFacebook: www.facebook.com/GlendaSOwenE-mail: [email protected] Address: Oklahoma Employment Security Commission

PO Box 52003 Oklahoma City, OK 73152-2003

Voice: (405) 557-5316 Cell: (405) 203-2727 Fax: (405) 557-7205

http://www.linkedin.com/in/GlendaOwen

http://www.facebook.com/GlendaSOwen

mailto:[email protected]

Workforce Readiness: Why It is Oklahoma's Path to Economic Growth

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