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

Why workforce readiness is important to Oklahoma’s economic growth.

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

  1. 1. Workforce Readiness Why It Is Oklahoma’s Path for Economic Growth
  2. 2. Workforce Readiness: What We Know <ul><li>Global competitive landscape has changed. </li></ul><ul><li>Workforce development leads to economic development. </li></ul><ul><li>There is an acute shortage of skilled labor that’s worsening. </li></ul><ul><li>K-20 education system is not producing the workers that employers need. </li></ul><ul><li>Those in the workforce will need ongoing training to keep their skills updated. </li></ul>SHRM 2007 Symposium on the Workforce Readiness of the Future U.S. Labor Pool
  3. 3. Characteristics of Workforce Source: Bureau of Labor Statistics Median 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%.
  4. 4. Importance of Skilled Workforce: 3 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 Economy Different 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
  5. 5. Employers Belief <ul><li>About 40% of high school graduates lack the literacy skills employers seek. </li></ul><ul><li>More than 50% of recent high school graduates are weak in such skills as oral/written communications, problem-solving, and critical thinking. </li></ul>Source: Alliance for Excellent Education Fact Sheet, Feb. 2009
  6. 6. Key Points: Workforce Readiness <ul><li>Issue: R equires systemic change. Teachers also part of the problem. </li></ul><ul><li>Issue: Not priority for policymakers. </li></ul><ul><li>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. </li></ul><ul><li>Issue: Workers need both basic and applied skills. Credentials are replacing capabilities. </li></ul><ul><li>Issue: It requires collaboration between the public and private sector on both a national and local level. </li></ul><ul><li>Issue: Workforce uncertainty requires flexibility. </li></ul><ul><li>Issue: Leadership is lacking. </li></ul>SHRM 2007 Symposium on the Workforce Readiness of the Future U.S. Labor Pool
  7. 7. Achievement Gap Fact: World College Graduates Source: Education Equality Project
  8. 8. Achievement Gap Fact: International Ranking (2006) Top 30 Organization for Economic Co-operation and Development (OECD) nations, the United States ranks: 25 th in mathematics 21 st in science Source: Education Equality
  9. 9. Achievement 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
  10. 10. Achievement 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
  11. 11. Achievement Gap Fact: Science 5 th and 9 th 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 90%
  12. 12. Achievement Gap Fact: Math “ What percentage of 8 th grade Mathematic teachers earned a degree in Mathematics?” 48% Source: National Commission on Mathematics & Science Teaching for the 21 st Century, Before It’s Too Late 9/2000
  13. 13. Achievement 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
  14. 14. Achievement Gap Fact: Mathematics 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: Reality Check 2006, A Report from Education Insights at Public Agenda
  15. 15. Achievement Gap Fact: Mathematics (2003 Ranking) United States 15-year-olds: 24 th out of 29 developed countries in Mathematics Source: Organization for Economic Cooperation & Development (OECD), Pisa 2003 Results
  16. 16. Achievement Gap Fact: Math Proficiency By 12 th Grade Source: Competitiveness Index, “Where America Stands” 11/14/06 34% Asian-Americans 20% Whites 10% Native Americans 4% Hispanics 3% African-Americans
  17. 17. Achievement Gap Fact: Incarceration High School Dropout is 5—8 times more likely to become incarcerated than a college graduate. Source: Education Equality Project 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 as 1% $1.4 Billion
  18. 18. Achievement Gap Fact: Cost per Student to Prison Inmate 9, 644 22, 600 Source: Education Equality Project STUDENTS PRISONERS
  19. 19. Know 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. Source: Education Equality Project
  20. 20. Top 10 Fast Fact: By 4 th Grade Source: Education Equality Project
  21. 21. Top 10 Fact: Low-Income Achievement Levels On average students eligible for free or reduced lunch are approximately two years of learning behind the average ineligible student. Source: Education Equality Project
  22. 22. America’s High School Students <ul><li>Only about 33% of students entering the 9 th grade each fall graduate 4 years later prepared for college or the contemporary workplace. </li></ul><ul><li>Another 33% will leave high school with a diploma but without the skills and knowledge needed to succeed in college or the contemporary workplace. </li></ul><ul><li>Another 33% will not graduate from high school within four years, if at all. </li></ul><ul><li>In this country, there are about 2,000 high schools that produce the majority of dropouts. </li></ul>Source: Alliance for Excellent Education: “The Graduation Promise Act One: Page Summary”
  23. 23. Top 10 Fast Fact: (2004) Students Requiring College Remediation Source: Education Equality Project
  24. 24. Why 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
  25. 25. Costs of Education Gap <ul><li>Wars in Iraq & Afghanistan </li></ul><ul><li>+ </li></ul><ul><li>Stimulus Package </li></ul><ul><li>($1.3 to $2.3 Trillion Annually) </li></ul>Source: Kevin Huffman, The Washington Post January 4, 2010
  26. 26. Economic Impact <ul><li>These educational gaps impose on the United States’ economy is equivalent </li></ul><ul><li>Permanent National Recession </li></ul>McKinsey & Company: “The Economic Impact of the Achievement Gap in America’s Schools” (April 2009)
  27. 27. Why is education important? The Engine for Jobs <ul><ul><li>Positive relationship between an investment in education and a strong economy. </li></ul></ul><ul><ul><li>An educated citizenry leads to increased productivity, economic growth and good jobs. </li></ul></ul>
  28. 28. Achievement Gap Fact: 70% Top Income Earners Source: Education Equality Project
  29. 29. Achievement Gap Fact: Top College Talent Pool Source: Education Equality Project
  30. 30. Top 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
  31. 31. Achievement Fast Fact: Parental involvement is associated with higher student achievement outcomes. Source: Education Equality Project 77 Studies 300,000 Students
  32. 32. “ 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 Henry
  33. 33. What’s at Stake? <ul><li>For Business </li></ul><ul><ul><li>Expansion </li></ul></ul><ul><ul><li>Quality workforce </li></ul></ul><ul><li>For Oklahomans </li></ul><ul><ul><li>Higher wages </li></ul></ul><ul><ul><li>Quality Jobs </li></ul></ul><ul><ul><li>Better standard of living </li></ul></ul><ul><li>For Communities </li></ul><ul><ul><li>Population growth </li></ul></ul><ul><ul><li>Economic vitality </li></ul></ul><ul><ul><li>Oklahoma’s reputation </li></ul></ul>Source:
  34. 34. A Generation Slipping Away <ul><li>Every day in Oklahoma, 30 students leave their place in common education. </li></ul><ul><li>In the last 5 minutes, about 14 more students in Oklahoma have left high school without diplomas. </li></ul><ul><li> Oklahoma’s dropout rate 33% </li></ul>
  35. 35. 2006-08 American Community Survey Population: 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
  36. 36. The Impact to Our State <ul><li>How does the current high school drop out rate impact our state? </li></ul>
  37. 37. A Look at Oklahoma <ul><li>70% High School Graduation Rate (2005) </li></ul><ul><li>67% College Readiness Rate (ACT Report, 2009) </li></ul><ul><li>58.4% College Enrollment Rate directly from H.S. (2007) </li></ul><ul><li>44% College graduation rate within 6 years (2008) </li></ul><ul><li>OK High School Dropouts for Class of 2008: </li></ul><ul><li>14,653 </li></ul>Source: “Measuring Up 2008 The State Report Card on Higher Education”
  38. 38. A Look at Oklahoma <ul><li>ACT Score 2009 Average </li></ul><ul><li>Average Composite Score = 20.7 </li></ul><ul><li>English = 20.5 [ 18 ] </li></ul><ul><li>Math = 19.9 [ 22 ] </li></ul><ul><li>Reading = 21.4 [ 21 ] </li></ul><ul><li>Science = 20.5 [ 24 ] </li></ul><ul><li>50% chance of obtaining B or higher. </li></ul><ul><li>75% chance of obtaining C or higher. </li></ul>Source: ACT Profile Report: Oklahoma (2009) 71%
  39. 39. Economic Impact: Tulsa & Oklahoma City <ul><li>Class of 2008: </li></ul><ul><ul><li>4,153 Tulsa students dropped out from the class. </li></ul></ul><ul><ul><li>4,777 Oklahoma City students dropped out from the class. </li></ul></ul>Combined Additional Earnings Tulsa: $18 Million Annually Oklahoma City: $24 Million Annually Source:
  40. 40. Economic Impact: Tulsa & Oklahoma City Increased Human Capital 54% Tulsa 55% OKC Students would likely continue their education, some earning as high as PhD or other Professional degree. Source:
  41. 41. Economic Impact: Tulsa & Oklahoma City <ul><ul><li>Additional Tax Revenue </li></ul></ul><ul><ul><li>As these graduates’ incomes grow, local, state, property, income & sales tax revenues will also increase. </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>Each City would have increased revenue by </li></ul></ul><ul><ul><li>$3 Million Annually </li></ul></ul><ul><ul><li>increased spending and higher salaries </li></ul></ul>Source:
  42. 42. Economic Impact: Tulsa & Oklahoma City <ul><ul><li>Increased Home Sales </li></ul></ul><ul><ul><li>(Mid-point of career) </li></ul></ul><ul><ul><li>$26 Million (Tulsa) </li></ul></ul><ul><ul><li>$32 Million (OKC) </li></ul></ul>Source:
  43. 43. Economic Impact: Tulsa & Oklahoma City <ul><ul><li>Each City i ncreased Auto Sales by </li></ul></ul><ul><ul><li>$2 Million </li></ul></ul><ul><ul><li>Annual increase in auto sales </li></ul></ul>Source:
  44. 44. Economic Impact: Tulsa & Oklahoma City <ul><ul><li>Additional Jobs Supported (by Mid-Career) </li></ul></ul><ul><ul><li>Tulsa: 150 New Jobs </li></ul></ul><ul><ul><li>Oklahoma City: 200 New Jobs </li></ul></ul>Source:
  45. 45. Economic Impact: Tulsa* & Oklahoma City** <ul><ul><li>Increase in Gross Regional Products </li></ul></ul><ul><ul><li>(by Mid-Career) </li></ul></ul>Source: $23 Million* $29 Million**
  46. 46. Economic Impact: Tulsa* & Oklahoma City <ul><ul><li>Additional Spending </li></ul></ul><ul><ul><li>$13 Million* </li></ul></ul><ul><ul><li>$17 Million </li></ul></ul><ul><ul><li>Additional Investment </li></ul></ul><ul><ul><li>$4 Million* </li></ul></ul><ul><ul><li>$5 Million </li></ul></ul>Source:
  47. 47. Economic Impact: Tulsa <ul><li>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. </li></ul>
  48. 48. Economic Impact: Oklahoma City <ul><li>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. </li></ul>
  49. 49. Ways You Can Become Involved <ul><li>Look for programs that are already in place. </li></ul><ul><li>Start small, pilot programs. </li></ul><ul><li>Speak in local middle/high school classes. </li></ul><ul><li>Provide tours at your business. </li></ul><ul><li>Implement ideas that directly relate to your business goals. </li></ul><ul><li>Be willing to be the glue. </li></ul>
  50. 50. Public/Private Partnership Examples <ul><li>Educator externships </li></ul><ul><li>Career Awareness </li></ul><ul><li>Career Day or Career Fairs </li></ul><ul><li>Job Shadowing </li></ul><ul><li>Take Our Daughters & Sons to Work Day® </li></ul><ul><li>Mentor Relationships </li></ul><ul><li>School-based enterprise </li></ul><ul><li>Work Experience </li></ul><ul><ul><li>DHS; DRS; WIA </li></ul></ul><ul><li>Curriculum Development </li></ul><ul><li>Education/Business Exchange </li></ul>
  51. 51. Employee Support Examples <ul><li>Allow employees volunteer time—tutoring/mentoring. </li></ul><ul><li>Support/educate employee involvement in schools. </li></ul><ul><li>Solicit parents of children. </li></ul><ul><li>Solicit businesses of parents. </li></ul><ul><li>Match contributions for educational programs and scholarships. </li></ul><ul><ul><li>Direct payment to educational institution </li></ul></ul><ul><ul><li>Cash bonus for GED attainment </li></ul></ul><ul><ul><li>Cash bonus for college completion </li></ul></ul>
  52. 52. Private/Public Involvement <ul><li>Integris Health </li></ul><ul><li>Oklahoma Christian University </li></ul><ul><li>Local Fire Station </li></ul><ul><li>Local Churches </li></ul><ul><li>Over 300 Mentors </li></ul><ul><li>Parental Support </li></ul><ul><li>Test Scores risen from 10 – 20s to 60 – 70s. </li></ul><ul><li>Increase enrollment from 150 to 320, with a waiting list. </li></ul><ul><li>23% to 69% student involvement in sports. </li></ul><ul><li>Teacher retention from 76% to 98% </li></ul><ul><li>Decrease in conduct referrals from 37% to 11% </li></ul><ul><li>Oklahoma A+ school </li></ul>
  53. 53. Results: <ul><li>Business Benefits </li></ul><ul><li>Improved interpersonal and entry-level skills </li></ul><ul><li>Reduced training and remediation costs </li></ul><ul><li>Increased productivity </li></ul><ul><li>Reduced employee turnover </li></ul><ul><li>Effect a better match between current and future job market needs and the career awareness and workforce skills of high school graduates </li></ul><ul><li>Benefits for HR Professionals </li></ul><ul><li>More talented/skilled employees recruited. </li></ul><ul><li>Better prepared workforce. </li></ul><ul><li>Skills for future learning/development. </li></ul><ul><li>Educators more in tune with employer needs. </li></ul><ul><li>Reduced training cost : 25% - 50% </li></ul><ul><ul><li>Lower initial training </li></ul></ul><ul><ul><li>Lower turnover & re-training </li></ul></ul>
  54. 54. Results: <ul><li>Benefits for Education: </li></ul><ul><li>Opportunity to share education successes. </li></ul><ul><li>Shared Community and Industry involvement in Education Reform. </li></ul><ul><li>Greater access to valuable teaching resources. </li></ul><ul><li>Development of curriculum that is directly relevant to career placement and employment success. </li></ul><ul><li>Benefits for the Student: </li></ul><ul><li>Connects students to the “real” world of work. </li></ul><ul><li>Promotes independent learning and higher-level skills such as interpersonal and team communications. </li></ul><ul><li>Offers students the opportunity to find employment in industry and service fields that require higher-level skills. </li></ul>
  55. 55. Benefits for the Community <ul><li>Increase the quality of community life through school system improvement. </li></ul><ul><li>Higher standard of living </li></ul><ul><li>Stronger economic and tax base </li></ul><ul><li>Greater ability to attract and sustain industry and business. </li></ul><ul><li>Stronger community - education - industry relationships </li></ul>Results:
  56. 56. Any Questions? <ul><li>Glenda Owen </li></ul><ul><li>LinkedIn: </li></ul><ul><li>Facebook: </li></ul><ul><li>E-mail: [email_address] </li></ul><ul><li>Mailing Address: </li></ul><ul><li>Oklahoma Employment Security Commission PO Box 52003 Oklahoma City, OK 73152-2003 </li></ul><ul><li>Voice: (405) 557-5316 </li></ul><ul><li>Cell: (405) 203-2727 </li></ul><ul><li>Fax: (405) 557-7205 </li></ul>