1. Demographics Point To An Increased Role For Training Tom Gillaspy, State Demographer Mn Dept of Administration May 2009

2. Minnesota Has Been Very Successful (Especially For A Cold Weather State at the End of the Road) Our economic growth rate has exceeded the national average Our population growth rate leads the frost belt We rank with the leaders on many social and economic indicators Education has been a key contributor to the state’s success

3. Minnesota Ranks Highly in Many Social/Economic Indicators 3rd percent of 16-64 employed (76.7%) Statistically tied with 6 states for first 2 nd cost of living adjusted per capita income (OK DOC) 8th lowest poverty rate 1 st percent with health insurance 2004-06 ave 10 th median family income 13% above the nation 2 nd Kids Count 2008 4 th most livable state (Morgan Quinto Press) 3 rd lowest rate of disability among people age 21-64 2 nd with at least high school degree (91%) statistically tied with Wyoming 11 th with at least a bachelor’s degree 1 st home ownership (75.2%) 4 th United Health Foundation ranking of state healthiness 2008 Updated February 2009

4. Past Performance Does Not Ensure Future Results

5. Four Mega-Forces Will Shape Minnesota’s Economy Globalization Technology Energy prices Demography

6. Aging Is The Dominant Demographic Trend In Minnesota And The Nation It is not normal for a society to age Dramatic changes will be seen in 2008 and 2011 and beyond By 2020, the number of Minnesotans 65+ will increase by 53%. By 2030 it will double Aging and economic growth will lead to challenges and opportunities not fully anticipated

7. Minnesota Will See a 30 Percent Jump in Workers Turning Age 62 Beginning 2008 2005 ACS

8. From 2010 to 2020, Minnesota Will See Large Increases Age 50s and 60s Source: Minnesota State Demographic Center Numbers are rounded

9. Competition For Future College Students Will Increase Census Bureau US Proj, Mn State Demographer revised 2007. The 18 year old population, both Minnesota & nationally are projected to decline starting 2009.

10. Labor Force Growth Is About To Slow Sharply

11. World Labor Force Growth Slowing Projected Change In Working Age Population (15-64) U.S. Census Bureau

12. Productivity Has Been Minnesota’s Competitive Advantage It will be even more important in The Next Generation Economy

13. Productivity Remains The Key To Quality of Life In Minnesota Economic Growth=Labor Force Growth + Productivity Growth Productivity growth comes from Private investment—machines & processes Public investment—roads, bridges, etc Technology from research, public & private Skills & abilities of workers—education & training

14. The New 3 R’s for Economic Success Retention Recruitment Retraining