April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE Dennis K. Winters Chief, Office of Economic Advisors Wisconsin Department of Workforce Development April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 2 FIRST OF ALL, YOU NEED TO UNDERSTAND WISCONSIN’S ECONOMY

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 3 THE ECONOMY HAS CHANGED AND SO MUST WE

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 4 ECONOMIC RECOVERY HOW IS THIS ONE NOT LIKE THE OTHER ONES

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 5 JOBS RECOVERY HOW IS THIS ONE NOT LIKE THE OTHER ONES

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 6 6 RECESSION COMPARISONS LAGGING ACROSS ALL INDICATORS

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 7 So, what will be the biggest socio-economic policy challenge in the next 20 years?

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 8 ELDERLY NUMBERS WILL SWELL WIDEN THE SIDEWALKS WILL YA !?

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 9 OR PERHAPS THE MORE INTERGENERATIONAL VERSION

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 10 WORKFORCE GROWTH GUYS AND GALS

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 11 AS WORKERS AGE LFPR DECLINES IN A HURRY Source: Bureau of Labor Statistics, OEA

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 12 LABOR FORCE PARTICIPATION FAR PAST PEAK

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 13 QUANTITY

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 14 WISCONSIN’S WORKFORCE GROWTH BECOMES FLAT Source: Bureau of Labor Statistics, OEA

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 15 BLS RAISED LFPR FOR THE FUTURE PARTICULARLY FOR OLDER COHORTS Source: Bureau of Labor Statistics, Bureau of the Census, OEA

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 16 WISCONSIN’S WORKFORCE HIGHER LFPRs OFFER LIMITED GAINS Source: Bureau of Labor Statistics, OEA

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 17 LITTLE CHANGES EVEN WITH HIGHER LFPR RETIREMENTS SWAMP PARTICIPATION Source: Bureau of the Census, DOA, OEA

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 18 NURSING WORKFORCE IN WISCONSIN DEMOGRAPHICS AT WORK Source: Office of Economic Advisors

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 19 QUALITY

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 20 "The days are over when you could walk into a paper mill with a high school diploma and run one of the machines." – Patrick Schillinger, former Wisconsin Paper Council President, Center will teach paper-industry technology, Milwaukee Journal Sentinel, JS Online, October 21, NEW ECONOMY NEED FOR SKILLS

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 21 TURN YOU LOOSE ON THIS BABY I DON’T THINK SO

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE ThenNow Unskilled60% Unskilled 12% 12% Skilled 20% Professional 20% Professional 20% Skilled 68% WorkKeys and the National Career Readiness Certificate are registered trademarks of ACT, Inc. CHANGES IN WORKFORCE SKILL REQUIREMENTS OVER THE LAST FIFTY YEAR

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 23 TOMORROW’S JOBS WILL REQUIRE INCREASED SKILLS Source: ACS for Today’s skills; Moody’s Analytics for Tomorrow’s Demand

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 24 WHAT’S MISSING IN THIS PICTURE TECHNOLOGICAL SUBSTITUTE

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 25 “Today in most fields I know, the struggle is about creativity and innovation. There is no script.” – Robert B. Shapiro, former CEO & Chairman, Monsanto Corporation FUTURE EMPLOYERS NEED FOR CREATIVITY & INNOVATION

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 26 Source: Autor, Levy and Murnane, 2003 Nonroutine manual Routine cognitive Routine manual Nonroutine analytical Nonroutine interactive WORKPLACE REQUIREMENTS CHANGES IN SKILLS USED AT WORK* Source: K-12 Education and Economic Summit presentation by Alan B. Krueger, Princeton University * Based on the Dictionary of Occupational Titles

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 27 NEW ECONOMY SCARCITY OF SKILLED WORKERS Former Federal Reserve Chairman Alan Greenspan voiced his concern about a growing earnings gap between highly skilled and unskilled workers. "It's a problem caused basically by our skill mix not keeping up with the technology that our capital stock requires," the Fed chairman said....

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 28 MEDIAN FAMILY INCOME BY EDUCATIONAL ATTAINMENT Source: Postsecondary Education Opportunity (using U.S. Census Bureau data) Education = Earning Power

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 29 Workforce development and economic development are interrelated and interdependent. Ed = ED

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 31 Questions ?

April 23, 2014 WHY WE NEED AN EDUCATED WORKFORCE 32 Dennis Winters Phone: Website: OEA website: CONTACT INFORMATION