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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

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

Dr. Carol D’Amico

Ivy Tech Community College of Indiana

major events
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

major events3
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

major events4
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

challenges for the us
Challenges for the US
  • Worker Gap
  • Skills Gap
  • Ambition Gap
worker gap demographic shift
Worker Gap: Demographic Shift
  • Workers added from India and China
  • Highly motivated
  • Technology savvy
  • More cell phones in China than the total US population
worker gap demographic shifts
Worker Gap: Demographic Shifts

No Growth of Native Born Workforce Ages 25-54

worker gap changing composition
Worker Gap: Changing Composition

Future US Workforce Composition

worker gap shrinking workforce
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.
worker gap
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.
worker gap12
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.
skills gap challenges for the us
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.
skills gap increased skills required
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.

skills gap workforce implications
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.
skills gap skills and abilities in the knowledge economy
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
skills and abilities in the knowledge economy
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
skills gap lack of qualified workers
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.
worker gap lack of qualified workers
Worker Gap: Lack of Qualified Workers

Estimated Annual College Graduation Rates

skills gap lack of qualified workers20
Skills Gap: Lack of Qualified Workers

Science/ Engineering Graduates

skills gap lack of qualified workers21
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.
skills gap lack of qualified workers22
Skills Gap: Lack of Qualified Workers

Percent of Workers Without a College Education

skills gap lack of qualified workers23
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
skills gap lack of qualified workers in pipeline
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
skills gap lack of qualified workers in pipeline25
Skills Gap: Lack of Qualified Workers in Pipeline

US 15-Year-Olds Rank Near Middle of the Pack Among 32 Participating Countries: 1999

skills gap lack of qualified workers in pipeline26
Skills Gap: Lack of Qualified Workers in Pipeline

2003: U.S. Ranked 24th out of 29 OECD Countries in Mathematics

skills gap lack of qualified workers in pipeline27
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*

skills gap achievement gaps in future workforce
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.
implications
Implications

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

workforce implications educators
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
workforce implications employers
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
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Workforce 2020 and Beyond:Root Causes of U.S. Workforce Challenges

Dr. Carol D’Amico

Ivy Tech Community College of Indiana