Human Capital and Productivity: Toward Quality Job Creation Randall Eberts W.E. Upjohn Institute for Employment Research, USA International Economic Forum of the Americas Conference of Montréal 11 June W.E. Upjohn Institute

National Talent Shortage in US? W.E. Upjohn Institute2 Economists debate whether there is a skills mismatch or talent shortage in U.S., as employers complain they have difficulty hiring qualified workers. Other factors may be in play. For instance, the 2012 Manpower Report stated: “The pay issue is most pronounced in U.S. where over half of employers indicate that inadequate compensation makes it difficult to land candidates. This suggests employers may need to consider paying more to attract the talent they need.” Source: Manpower Talent Shortage Survey, 2013 Unemployment rate

National talent shortage in Canada? W.E. Upjohn Institute3 Source: Manpower Talent Shortage Survey, 2013 Unemployment rate

Canada and US employers report difficulty filling similar jobs: Top ten list Canada 1.Skilled trades workers 2.Engineers 3.Management/Execs 4.Sales representatives 5.Technicians 6.Drivers 7.Accounting and finance 8.IT staff 9.Teachers 10.Laborers US 1.Skilled trades workers 2.Sales Reps 3.Drivers 4.IT staff 5.Accounting and finance 6.Engineers 7.Technicians 8.Management/Execs 9.Mechanics 10.Teachers W.E. Upjohn Institute4 Source: 2013 Talent Shortage Survey Research Results, Manpower

Education Gap: Disconnect between Educators and Businesses Differences in perception of job readiness – 49% of employers believe new graduates are adequately prepared for entry-level jobs – 89% of educators think they are prepared Lack of communication – One-third of employers say they never connect with educators – More than a third of educators report they are unable to estimate the job-placement rates of their graduates – Fewer than half of youth said they understood the job prospects of the discipline they studied in school W.E. Upjohn Institute5 McKinsey Center for Government: “Education to Employment, Designing a System that Works, ” 2012.

W.E. Upjohn Institute6 Larger the skills gap, the lower the job creation Consequences of Education Gap Each dot is a US metro area; data provided by Rothwell, 2012

W.E. Upjohn Institute7 Larger the education gap, the higher the unemployment rate Consequences of Education Shortage Each dot is a US metro area; data provided by Rothwell, 2012

U.S. Workforce Development System: Bringing Together Employers and Training Providers Workforce Investment Boards – Catalysts for local collaboration between educators and businesses – Businesses work with training providers to develop training curriculum – Eligible Training Provider List Regional Partnerships – WIRED – Michigan Regional Skill Alliance Industrial sector consortia Community Colleges W.E. Upjohn Institute8