The Challenge Before Us: BHQ#11

EDUCATION AND WORKFORCE

BUsiness Horizon Quarterly

BY THE HONORABLE JOHN R. MCKERNAN, JR. PRESIDENT, U.S. CHAMBER OF COMMERCE FOUNDATION, FORMER GOVERNOR OF MAINE

EDUCATION

T

he U.S. Chamber of Commerce Foundation

For the business community, early childhood

has, at its core, a focus on promoting our

education investments also make good economic

nation’s competitiveness, and while there are

sense. Numerous studies have quantified the significant

many ways in which we advance that mission, there

return on investment for these programs, based in part

are none more critical than working to improve our

on increased educational attainment and the reduction

education and workforce training systems.

in the need for more costly social services.

The Chamber understands the clear connection between a strong education system and a thriving economy. Through the Foundation’s Center for Education

While competition and choice of programs and providers play an important role in the delivery of early childhood programs to students and families, this is not the case for

and Workforce, we work to

America’s public K-12 education

strengthen the pipeline from

system—a system we know

early childhood education to

isn’t making the grade. It’s

postsecondary education and

not adequately preparing our

training. This edition of the

students to succeed in college

Business Horizon Quarterly is

or the modern workforce.

devoted to recognizing the

It’s not delivering the skilled

education challenges we face

workers that businesses need to

as a nation while highlighting

drive stronger economic growth,

both public and private sector

and it’s not helping advance

leaders and initiatives that are

America’s ability to compete and

meeting those challenges.

While not discounting the importance of

lead in the global economy.

Proficiency in fundamental disciplines is also

strong family engagement, a quality educational

slipping. Among the 34 leading industrialized countries,

foundation begins early and is critical for a young

the United States continues to fall behind, ranking 17th

person’s future success in school and beyond. Given

in reading literacy, 21st in science, and a dismal 26th in

that 90% of a child’s brain development occurs

mathematics. It should surprise no one that we’ve fallen

by the time they reach age 5, the importance of a

from No. 1 in the world in the percentage of young

strong learning environment at an early age cannot

adults with college degrees to No. 12.

be overlooked. The positive impacts of high-quality early childhood education are well documented and include improved reading ability by the third grade, reduction in the need to hold students back in kindergarten, and a lowering of the incidence of students’ placement into special education.

These educational rankings and deficiencies should be of genuine concern to all of us, especially with the jobs of the 21st century becoming more and more specialized and technical. In fact, there are more than 4 million jobs going unfilled in this country in part

EDUCATION AND WORKFORCE

BUsiness Horizon Quarterly

By 2020, there will be 120 million high-skilled and high-wage jobs. If we ITSèY MF[J YMJ \TWPJWX YT ąQQ YMJR we will risk our economic leadership in the world as these positions will go beyond our borders.

because there aren’t enough qualified candidates to fill them.

Rigorous college- and career-ready standards are what

Some 90% of the jobs in the fastest-growing occupations

students deserve, what higher education requires, and what

require postsecondary education and training. By 2020,

the business community is demanding. The Chamber

there will be 120 million high-skilled and high-wage jobs.

Foundation supports the business community through

If we don’t have the workers to fill them, we will risk our

expertise, resources, programming, and communications

economic leadership in the world as these positions will go

tools to advance college- and career-ready standards, such

beyond our borders.

as the Common Core, and aligned assessments to ensure

There is a looming national crisis that requires urgent action, and it begins at the most fundamental level: K-12

students are meeting these higher goals.

Critical to ensuring high standards across the country,

education. But it doesn’t end there. Our job training systems

as well as other important policy measures that improve

in this country are ill-equipped to close the skills gap, and

our public education system, is transparency around

our postsecondary institutions continue to be out of reach

how states are actually faring when it comes to educating

for far too many Americans.

children and young adults. As the signature education

The Chamber Foundation is tackling these issues headon because we want America’s economy to grow, business to be competitive, and all students to have the opportunity for success. Essential to turning around those dismal international comparisons is setting high expectations for all students. We know from decades of experience that setting low standards in grades K–12 results in high remediation rates in 2- and 4-year institutions and workers without the skills employers require.

10 | B U S I N E S S H O R I Z O N Q U A R T E R L Y // I S S U E 1 1

research publication of the Foundation, Leaders & Laggards has for seven years provided the business community with solid data and policy recommendations on K–12 educational effectiveness, innovation in K–12 education, and the state of public postsecondary education. The report is unique in that it seeks to identify national leaders (as well as laggards) on a series of indicators that draw upon and reflect the priorities of the business community.

EDUCATION

The proven success of this report is found in the story of the state of Tennessee. The Chamber’s inaugural Leaders & Laggards in 2007 bestowed the letter grade of “F” in a couple of key areas related to student achievement in the Volunteer State. Rather than hide from those grades, the leaders in Tennessee set out to turn their system around—raising academic standards and beginning a series of reforms that continue today. The actions the state took then have positioned Tennessee as a leader and have resulted in measureable academic gains for students, as evidenced by the most recent scores on “the Nation’s Report Card”—the National Assessment of Educational Progress. All along the way, the business community has played a key role by pushing for reforms and supporting students, teachers, and schools in the process.

If we are to address this skills gap, we cannot ignore the unemployment crisis among youth and young adults. The employment rates for youth, ages 16 to 19, plummeted from 45% in 2000 to just 26% in 2011— the lowest rate of youth employment since post-World War II.

Tennessee’s results are instructive and encouraging.

Yet, despite significant resources and the best efforts of many, our education system as a whole is failing to keep pace with the economy, and employers are struggling to find skilled workers. There is a gap between the skills that employers need and the qualifications of today’s job applicants. As a result—despite high unemployment rates—many jobs are left unfilled.

If we are to address this skills gap, we cannot ignore the unemployment crisis among youth and young adults. The employment rates for youth, ages 16 to 19, plummeted from 45% in 2000 to just 26% in 2011— the lowest rate of youth employment since post-World War II. The impact on the health of the economy is a nationwide issue, with young adults increasingly unprepared to enter the workforce. What’s more, the consequences for youth development are profound, with studies demonstrating that youth who are employed are far more likely to be gainfully employed later in life while developing the professional skills that will allow them to advance in their careers.

The penalty for failing to address this employment gap is a low-skilled and inexperienced workforce that will fail to grow the U.S. economy and will dramatically increase the demand for entitlement programs.

Currently, there are 5.8 million youth aged 16 to 24 who are disconnected from school and work, and there are millions more who lack meaningful pathways to education and career.

The Foundation is working to bring national attention to the challenge of youth employment with a particular focus on the business community’s role in identifying and leading long-term solutions. To truly address this crisis, it’s not enough to simply ask employers to hire more youth – we must work to more effectively address the business needs of employers in recruiting, onboarding, and developing youth, as well as measuring return on investment. There are certainly challenges and obstacles, but there exist programs that have successfully married meaningful employment opportunities for youth

// T H E C H A L L E N G E B E F O R E U S | 11

EDUCATION AND WORKFORCE

BUsiness Horizon Quarterly

Whether it’s access to quality early childhood education, college- and career-ready standards in our public education system, the skills gap, or the crisis in youth employment, the U.S. Chamber of Commerce Foundation is committed to supporting the business community as it tackles these challenges.

12 | B U S I N E S S H O R I Z O N Q U A R T E R L Y // I S S U E 1 1

EDUCATION

with benefits for employers. These are the programs that

skills necessary for the 21st century workforce, resulting in

must be replicated and scaled across the country.

either costly training or time out of the labor market. The

At the core of the skills gap crisis is a breakdown between supply and demand. For decades, reform initiatives have sought to improve the education system. The results of such

bottom line is the entire educational continuum in America is in need of reform—and fast.

Whether it’s access to quality early childhood education,

efforts, however, haven’t gone far enough to improve high

college- and career-ready standards in our public education

school or college graduation rates—or even the effectiveness

system, the skills gap, or the crisis in youth employment,

of workforce training programs. Consequently, the skills

the U.S. Chamber of Commerce Foundation is committed

gap will grow to more than 5 million unfilled positions by

to supporting the business community as it tackles these

2020. The Chamber Foundation is working to close that

challenges. The employer community has a role to play in

gap for employers and for students and workers.

each, and without their active participation, the outcome

We have set out to challenge long-standing assumptions about the role of business in education and workforce systems by providing an alternative approach that enables and empowers employers to engage more effectively with education and workforce partners. Most reform efforts focus on improving education and training delivery systems—schools, postsecondary institutions, and worker training programs. Our approach, called Talent Pipeline Management, presents a new model for collaboration that is demand driven and employer centric. The result will be

will fall short of our goal—an educated and skilled workforce today prepared for the jobs of tomorrow. Q Former Maine Gov. John R. McKernan Jr. is president of the U.S. Chamber of Commerce Foundation and a senior adviser to U.S. Chamber President and CEO Thomas J. Donohue. McKernan provides both strategic and ongoing leadership to the U.S. Chamber of Commerce Foundation, which is dedicated to strengthening America’s long-term competitiveness and educating the public on how our free enterprise system improves society and the economy.

a more engaged employer community, driving partnerships

Until August 2012, he was chairman of the board of directors of

and changing how education providers (from K–12 to

Education Management Corporation where he served as CEO from 2003

postsecondary) prepare students for success beyond their

to 2007 and still serves as a director.

educational experience.

The fact is the status quo is not sustainable if America

McKernan served his native state of Maine for two terms in the U.S. Congress from 1983 to 1987 and then as governor for two, four-year terms from 1987 to 1995. During his two terms as governor, McKernan

is to compete in a 21st century global economy. Despite

was chairman of the Education Commission of the States and the

record high school graduation rates, too many students are

National Education Goals Panel and was recognized as an Outstanding

left behind—typically low-income and minority students.

Governor by the American Society for Training and Development.

And while an 80% high school graduation rate looks impressive on paper, the fact is 60% of first-year college students require remediation in English or math because their secondary school didn’t adequately prepare them for college-level work. Furthermore, only about half of students who start a 4-year bachelor’s degree program fulltime actually finish in six years. Those who do go on to graduate

DIGITAL CONTENT AVAILABLE

from a postsecondary institution oftentimes don’t have the // T H E C H A L L E N G E B E F O R E U S | 13