1. Higher Education and the Workforce  What’s the need?  What’s our response? 2002 Annual Meeting Roderick G. W. Chu Ohio Board of Regents

2. The Challenge “If we are to remain preeminent in transforming knowledge into economic value, America’s system of higher education must remain the world’s leader in generating scientific and technological breakthroughs and in meeting the challenge to educate workers.” Alan Greenspan Chairman, Federal Reserve System February 15, 1999

3. Key Assets “The capital assets that are needed to create wealth today are not land, not physical labor, not machine tools and factories: They are instead knowledge assets.” Thomas A. Stewart “Intellectual Capital: the New Wealth of Organizations”

4. It’s the market talking! Source: Postsecondary Education OPPORTUNITY UNEMPLOYMENT RATE IN 2001 MEDIAN EARNINGS IN 2000 PROFESSIONAL DEGREE DOCTORATE MASTER’S DEGREE BACHELOR’S DEGREE ASSOCIATE DEGREE SOME COLLEGE NO DEGREE HIGH SCHOOL GRADUATE LESS THAN HIGH SCHOOL Higher Learning = Higher Earning

5. The income gap is growing Source: Postsecondary Education OPPORTUNITY

6. Economic conclusion: Demand for skilled workers > Supply … and it’s getting worse “… the most likely economic scenario suggests there will not be enough adults with at least some college to keep up with the growth in demand. … … roughly 15 million new jobs that require college- educated workers will be created, resulting in a net deficit in workers with at least some college of about 12 million workers by 2020.” Anthony P. Carnevale & Richard A. Fry “The Economic and Demographic Roots of Education and Training” November 19, 2001

7. Yet states continue to disinvest in higher education Higher Education Appropriations as % of State Tax Revenues 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 19731978198019811982198319841985198619871988198919901991199219931994199519961997 Source: Research Associates, Washington, DC [Halsted]

8. Why the disinvestment? Competing demands Medicaid, K-12, Prisons Popular support declining Quest for immediate gratification Public perceptions Still reaching only the elite Directly benefit only for a short time

9. The Key Planning Question: How many of our citizens need additional education?

10. Job growth statements “68.5 percent of the fastest growing jobs require some level of college certification.” Attributed to reports from the Bureau of Labor Statistics

11. Job growth statements “Economists predict that by 2008, the number of jobs requiring an associate's degree will grow by 31%. By the year 2008, the number of jobs requiring a bachelor's degree will grow by 24%.” Center on Education Policy and American Youth Policy Forum: “Higher Learning = Higher Earnings. What you need to know about college and careers” September 2001

12. Job growth statements “The 20 occupations with the highest earnings all require at least a bachelor’s degree. Throughout the economy, occupations that require a college degree are growing twice as fast as others.” U.S. Dept. of Labor Futurework – Trends and Challenges for Work in the 21st Century … but how many will be required?

13. Caution: Bad estimates “Retrospective analysis of the BLS projections by the Bureau itself and others shows that the BLS has underestimated the demand for workers from two-year and four-year institutions substantially and consistently.” Anthony P. Carnevale & Richard A. Fry “The Economic and Demographic Roots of Education and Training” November 19, 2001

14. Some hearsay figures Source: American Vocational Assn Guide to School-to-Work Opportunities, 1994

15. Some hearsay figures Where the Jobs Are 20% require a 4-year college degree 65% require an associate degree or advanced training 15% require minimum skills Attributed to Richard W. Judy author of Workforce 2020 Hudson Institute

16. In any case, it’s clear:

17. Other providers Business & industry Human services organizations For-profit institutions K-12 vocational/adult ed  If colleges and universities don’t do it, others will and our institutions will be relegated to providing elite education

18. Have we already lost the game? U.S. adults (aged 25+)194.6 M Adults engaged in any formal learning activity89.3 M Adults enrolled in public or private degree-granting institutions5.9 M Source: NCES Digest of Education Statistics, 2001

19. Questions More need education. But how many? What percent? What are the needs we’re not addressing today? Different learner populations Different learning abilities & styles Different/additional knowledge/skills How can we educate the masses? What is higher education’s role and responsibility?

20. Possible SHEEO initiatives Share specific expert citations on workforce education needs Share workforce development strategies and initiatives Develop a rationale for various parties addressing workforce needs

21. Strategic imperative: Massify the reach of higher education Majority of the population will need post-secondary education Winning providers will need to meet the specific needs of the market Can’t be a “Field of Dreams” strategy  The potential: Become the 2 nd government function that directly and continuously serves the needs of most taxpayers