Wisconsin’sFutureWorkforce April 22, 2009 WISCONSIN’S FUTURE WORKFORCE AND WHAT IT MEANS FOR THE STATE’S ECONOMY Green Innovations 2009 Dennis K. Winters Chief, Office of Economic Advisors Wisconsin Department of Workforce Development April 22, 2009

Wisconsin’sFutureWorkforce 2 THIS IS NOT YOUR FATHER’S ECONOMY IN FACT, IT WAS AN ABORATION

Wisconsin’sFutureWorkforce April 22, 2009 WORKFORCE

Wisconsin’sFutureWorkforce April 22, Workforce development and economic development are interrelated and interdependent.

Wisconsin’sFutureWorkforce April 22, 2009 QUANTITY

Wisconsin’sFutureWorkforce April 22, WISCONSIN’S WORKFORCE GROWTH BECOMES FLAT Source: Bureau of Labor Statistics, OEA

Wisconsin’sFutureWorkforce April 22, ELDERLY NUMBERS WILL SWELL WIDEN THE SIDEWALK !

Wisconsin’sFutureWorkforce April 22, BLS RAISED LFPR FOR THE FUTURE PARTICULARLY FOR OLDER COHORTS Source: Bureau of Labor Statistics, Bureau of the Census, OEA

Wisconsin’sFutureWorkforce April 22, WISCONSIN’S WORKFORCE HIGHER LFPRs OFFER LIMITED GAINS Source: Bureau of Labor Statistics, OEA

Wisconsin’sFutureWorkforce April 22, LITTLE CHANGES EVEN WITH HIGHER LFPR RETIREMENTS SWAMP PARTICIPATION Source: Bureau of the Census, DOA, OEA

Wisconsin’sFutureWorkforce April 22, NO NEED TO POSTPONE SUCCESSION PLANS IT IS ALREADY HAPPENING Source: Bureau of the Census, OEA

Wisconsin’sFutureWorkforce April 22, 2009 QUALITY

Wisconsin’sFutureWorkforce April 22, Source: Autor, Levy and Murnane, Nonroutine manual Routine cognitive Routine manual Nonroutine analytic. 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

Wisconsin’sFutureWorkforce April 22, EDUCATION INCLINATION GAINS LIMITED AT BEST

Wisconsin’sFutureWorkforce April 22, Entry level jobs with family supporting wages and advancement opportunities require same knowledge foundation and skill set as those entering post-secondary education. Advanced reading Advanced writing Advanced mathematics (Algebra II) Fastest growing occupations earning greater than $30,000 per year, require some post- secondary education. EQUAL SKILLS NOW REQUIRED NO TWO-TRACKING Source: Achieve, Inc, OEA.

Wisconsin’sFutureWorkforce April 22, 2009 ACHIEVEMENT GAP ESTABLISHED EARLY Source: Prof. James Heckman, Nobel Laureate, University of Chicago

Wisconsin’sFutureWorkforce April 22, 2009 ACHIEVEMENT GAP DEPENDENT ON THE MOTHER’S EDUCATION Source: Prof. James Heckman, Nobel Laureate, University of Chicago

Wisconsin’sFutureWorkforce April 22, 2009 POVERTY v. EDUCATION USE THE CORRECT POLICIES  Ed ≠ f (Poverty)  Poverty = f (Education)

Wisconsin’sFutureWorkforce April 22, HUGE RETURN ON INVESTMENT HIGH/SCOPE PERRY PRESCHOOL (Per participant in 2000 constant dollars discounted 3% annually) Larry Schweinhart, High/Scope Educational Research Foundation,

Wisconsin’sFutureWorkforce April 22, STATE IMPACTS BENEFICIAL AND PERPETUAL Graph representative of data portrayed in Enriching Children, Enriching the Nation, Robert Lynch, Economic Policy Institute, Cost bump in 2021 due to higher post-secondary enrollments Benefits rise faster after 2021 due to higher earnings of graduates

Wisconsin’sFutureWorkforce April 22, Asked what he admires most in Western counterparts, Jiang Jianqing, chairman of China's largest state bank, ICBC, says, "Innovation. Americans have an endless passion for it. …. you can't stop it. It's one of the most important ways to push enterprise forward." WHAT WILL KEEP US IN FRONT ? INNOVATION IS A MUST Source: Newsweek, Published January 10, 2009, From the magazine issue dated January 19, 2009,

Wisconsin’sFutureWorkforce April 22, Dennis Winters Phone: Website: OEA website: CONTACT INFORMATION