THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference GLOBAL SKILLS IN THE 21 ST CENTURY Dennis K. Winters Chief, Office of Economic Advisors Wisconsin Department of Workforce Development January 26, 2009 Careers Conference 2009

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 WISCONSIN’S WORKFORCE GROWTH BECOMES FLAT Source: Bureau of Labor Statistics, OEA

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 QUANTITY

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 BLS RAISED LFPR FOR THE FUTURE PARTICULARLY FOR OLDER COHORTS Source: Bureau of Labor Statistics, Bureau of the Census, OEA

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 WISCONSIN’S WORKFORCE HIGHER LFPRs OFFER LIMITED GAINS Source: Bureau of Labor Statistics, OEA

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 LITTLE CHANGES EVEN WITH HIGHER LFPR RETIREMENTS SWAMP PARTICIPATION Source: Bureau of the Census, DOA, OEA

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 NO NEED TO POSTPONE ATTRACTION PLANS IT IS ALREADY HAPPENING Source: Bureau of the Census, OEA

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 QUALITY

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 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

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 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.

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 EDUCATION INCLINATION GAINS LIMITED AT BEST

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 YOUNG MALES ARE AT RISK

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 ACHIEVEMENT GAP ESTABLISHED EARLY Source: Prof. James Heckman, Nobel Laureate, University of Chicago

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 ACHIEVEMENT GAP DEPENDENT ON THE MOTHER’S EDUCATION Source: Prof. James Heckman, Nobel Laureate, University of Chicago

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 POVERTY v. EDUCATION USE THE CORRECT POLICIES  Ed ≠ f (Poverty)  Poverty = f (Education)

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 HUGE RETURN ON INVESTMENT HIGH/SCOPE PERRY PRESCHOOL (Per participant in 2000 constant dollars discounted 3% annually) Larry Schweinhart, High/Scope Educational Research Foundation,

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 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

THE CHANGING FACE OFWISCONSIN’SWORKFORCE January 26, 2009 Careers Conference 2009 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. Perhaps in the past, it hasn't been so well regulated, but 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,