HUMAN CAPITAL YOUR MOST IMPORTANT RESOURCE Principle #7: People’s skills influence their income.

Objectives Define human capital Identify the skill requirements of the 21 st century global economy Recognize the relationship between education and training and a successful future

Why is this topic here? Students should recognize the importance of developing their human capital. This topic creates a rationale for the course and answers the question why students are in school. It personalizes the course. If done properly, it improves student self esteem. It explains the rules of the game.

Your Human Capital Skills Knowledge Experience Personal qualities

How you doin’? Uhhh We’re incredible Hunksa’ Human Capital

You are the most important resource you have. How you use you now will influence the control you have over your life forever. The more you take advantage of school to improve your human capital, the more control you will have over your life. To succeed in the 21 st century global economy, you will have to acquire certain skills.

Which house would you like? AB

Which car would you like? AB

Which Vacation Do You Want? Visit the folksA week at the beach

Which Dog do You Want? Fang Skippy

What Kind of Job Do You Want? AB

How will you get From hereto there?

THE NEW LABOR MARKET That was then, this is now THEN NOW GLOBAL COMPETITON, RAPIDLY CHANGING TECHNOLOGY BASIC SKILLS REQUIRED: ASSEMBLY LINE

Agricultural Manufacturing Service Knowledge Imagination Information The U.S. Economy

Table I: Then and now The Information/ Knowledge Age Technology change Competition Type of production Role of workers Skill requirements Employment Learning span The Industrial Age Took years to accomplish Local, state, national Manufacturing Manual Laborer Strength, dexterity, stamina Lifetime with one employer Kindergarten-12th grade Months, weeks to accomplish Global Service, info, knowledge Designer, engineer, manager Scans (see Table II) Change jobs at least six times, careers three times Lifetime

Get the Skills? What Skills?

Table II: What Skills? RankSkill CategoryDescription Basic SkillsCan you read, write, listen, and speak? Thinking SkillsDo you make careful, well-informed decisions? Do you know how to learn? Personal Qualities Are you honest, hardworking, respectful, and self- motivated? Can you be trusted? Are you on time? Do you dress appropriately? ResourcesDo you use your most important resource (you) well? Interpersonal Skills Do you work well with others, are you a team player? Do you help others succeed? Do you get along well with people who don’t look like you, who may be from a different part of the world, or another neighborhood? Are you kind to people who might not be as talented or good looking or popular as you? Do you try to make others feel comfortable in your group? SystemsDo you know how your family, your school, and your classroom work? Do you understand the system? Can you see problems with these systems and find ways to improve them? InformationWhen you have to talk about things at school or at home, do you speak off the top of your head, or do you collect information before you make your point? Are you willing to listen to others when they present their facts? Can you tell the difference between facts and “stories?” TechnologyAre you up to date on the latest technology and are you willing to learn new ones? Your Skills Strengths

To compete in a global economy, you will need these skills

Basic Skills reading writing mathematics listening speaking

Thinking Skills Informed decisions Benefit/Cost Analysis Know how to learn

Personal Qualities Honest Hard working Respectful Self-motivated Trustworthy

Resource Use

Interpersonal Skills Work well with others Help others succeed Get along with others who are not like you? Kind to others Try to make others comfortable

Systems

Information Do you have facts? Do you know where to get facts? Do you listen to facts? Can you tell the difference between facts and opinions (yours and others)?

Technology selecting applying to specific tasks maintaining and troubleshooting keeping up to date learning

To compete in a global economy, you will need these skills

Where will you get these skills?

Why are you in school? To improve your incredible human capital To use your human capital and other resources to achieve your goals To lead the good life You are in school for YOU!!!!!!

Dreams Deferred: Average Earnings and Education for Adults, 2008 Source: U.S. Census Bureau, Statistical Abstract of the United States: 2010

Some Benefits of an Education A college grad earns more than twice the lifetime earnings of a high school dropout For African Americans, the unemployment rate of a high school dropout is 21% compared to 7.3% for college grads. The percentage of high school dropouts living in poverty is 8.5 times that of college grads. The incarceration rate of high school dropouts is 60 times that of college grads. Source: The consequences of dropping out of high school. Center for Labor Market Studies, NorthEastern University. October 2009

The Principle of Exchange Employers will hire workers if they gain more from hiring them than they give up.

The Mirror: An Incredibly Powerful Package of Human Capital!

You are the only one who can develop your human capital….. not your teachers, not your parents, YOU

MAKE YOURSELF SCARCE!!!! High demand, low supply

All other things being equal higher education and/or training leads to higher income

Main Points The labor market of the 21 st century is characterized by rapid technological change, global competition, demand for highly skilled workers, numerous job and career changes, and constant upgrades of skills and knowledge. The greater your skills and knowledge obtained through education and/or training, the higher your lifetime earnings.

MAKE YOURSELF SCARCE!!!!