Education and Labor Force Needs

Presented to Senate Education Committee - 1/23/2012

Transcript

1. 1/23/2012 1 EDUCATION & LABOR FORCE NEEDS EDUCATION & LABOR FORCE NEEDS Tom Schenk Jr. Iowa Department of Education Adult Literacy
2. 1/23/2012 2 Average Age 28years old Female 51% Hispanic 26% 15,000 20,000 20,142 0 5,000 10,000 2006 2007 2008 2009 2010 Education & Economy
3. 1/23/2012 3 The Great Recession led to record high unemployment …so far peaking at 10.1% Bachelor recipients fared better than the population. …so far peaking at 5.1% …compared to 15.7% of high school dropouts National Unemployment 16 18 Less than high school 6 8 10 12 14 H.S. graduate Associate’s 0 2 4 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Bachelors’ or higher
4. 1/23/2012 4 National Income High-school graduate Less than a high school diploma Doctoral degree Professional degree Master's degree Bachelor's degree Associate degree Some college, no degree g g Bachelor’s recipients earn $1,038 per week compared to $646 for those only with a high school degree. Nationally, the average earnings per week was $782 in 2010. There is a clear relationship between education and earnings. $0 $500 $1,000 $1,500 $2,000 Doctoral degree Iowa’s Domestic Product only fell 0.2% …but unemployment grew 2%. Iowa’s 5.7% unemployment is relatively low …but some counties have been hit harder …education is still a key difference.
5. 1/23/2012 5 Iowa Unemployment Rate Bachelor's Degree or Higher High-school graduate Some college or Associate's Degree 0% 1% 2% 3% 4% 5% 6% 7% Less than a high school diploma Iowa Employment Ratio Bachelor's Degree or Higher Less than a high school diploma High-school graduate Some college or Associate's Degree Sometimes workers can become frustrated and “exit the labor market” by stopping their job search. The “employment rate” accounts for this by calculating the percentage of people who are employed, regardless of their labor market status. 0% 20% 40% 60% 80% 100%
6. 1/23/2012 6 60% 70% High Digital Literacy Digital Literacy 20% 30% 40% 50% Employment Rate Low Digital Literacy 0% 10% 20% 8/1/2007 8/1/2008 8/1/2009 8/1/2010 Local Unemployment
7. 1/23/2012 7 Regional Education Regional Education
8. 1/23/2012 8 Regional Education Regional Education
9. 1/23/2012 9 Largest Occupational Decline Farmers and Ranchers Postal Service Mail Sorters, Processors & Processing Mach Operators Order Clerks Telemarketers File Clerks Cutting, Punching & Press Machine Setters, Operators &Tenders Shipping, Receiving, and Traffic Clerks Metal Workers and Plastic Workers, All Other , Office and Administrative Support Workers, All Other Conveyor Operators and Tenders Opportunities & Challenges
10. 1/23/2012 10 Career-focused adult literacy programs such as I-BEST and Adult Literacy for the Workforce in Iowa can provide better prospects for students and employers. Career-focused degrees at Iowa’s community colleges provide a substantial rate of return for individuals. There is opportunity for job growth for those with moderate career training. 2-year Training Occupations $ $60,000 $70,000 $0 $10,000 $20,000 $30,000 $40,000 $50,000 AC sts sts ers als t ers ers pist ent uts HVA Vet Technologis Dental Hygienis Compliance Office Paralega Self-Enrichmen Education Teache Fitness Traine Physical Therap Assistants Medical Equipme Repairers Coaches & Scou
11. 1/23/2012 11 Student Wages 21 $35,000 $40,000 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Leavers (2002) Completers (2002) Leavers (2006) Completers (2006) Comparing students who graduated in 2002 (completers) with those who left college in 2011 (leavers), completers still earned more by 2011. For the 2002 cohort, median wages for completers was $33,623 and $30,640 for leavers. $- $ , 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Career-focused Adult Literacy 10% 12% 2% 4% 6% 8% Career-focused adult literacy programs, such as Washington’s I-BEST program shows positive student outcomes. Participants increase their probability of obtaining college credits by 10 percentage points and 8 percentage points for earning a certificate. 0% College Credits Earning Certificate
12. 1/23/2012 12 Federal Funding 1997-2012 $5 000 000 $6,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $- $1,000,000 1997 1999 2001 2003 2005 2007 2009 2011 There is a clear link between educational attainment and economic growth. Career-focused adult literacy programs offer an opportunity for advancement. Yet, there is a challenge to deliver these services given the reduction in resources.
13. 1/23/2012 13 Thank You! Authors Tom SCHENK JR. Iowa Department of Education (515) 281-3753 tom.schenk@iowa.gov Additional Information Iowa Workforce Information Network: iwin.iwd.state.ia.us U.S. Census Bureau, Education Pays…, www.bls.gov/emp/ep_chart_001.html Kiyokazu MATSUYAMA Iowa Workforce Development (515) 281-8118 kiyokazu.matsuyama@iwd.iowa.gov Jason CROWLEY Iowa Workforce Development Sources Adult Literacy Report 2011, Iowa Department of Education. Economic Returns & Career Transitions for Iowa Community College Students, Iowa Department of Education and Iowa Iowa Workforce Development (515) 281-7124 Jason.crowley@iwd.iowa.gov Workforce Development U.S Census Bureau, 2007-2009 American Community Survey Bureau of Labor Statistics, Current Population Survey Iowa Works Membership Database, Iowa Workforce Development.