EDUCATION AND WORKFORCE BUsiness Horizon Quarterly

BY THE HONORABLE JOHN R. MCKERNAN, JR.PRESIDENT, U.S. CHAMBER OF COMMERCE FOUNDATION,

FORMER GOVERNOR OF MAINE

EDUCATION

The U.S. Chamber of Commerce Foundation has, at its core, a focus on promoting our nation’s competitiveness, and while there are

many ways in which we advance that mission, there are none more critical than working to improve our education and workforce training systems.

!e Chamber understands the clear connection between a strong education system and a thriving economy. !rough the Foundation’s Center for Education and Workforce, we work to strengthen the pipeline from early childhood education to postsecondary education and training. !is edition of the Business Horizon Quarterly is devoted to recognizing the education challenges we face as a nation while highlighting both public and private sector leaders and initiatives that are meeting those challenges.

While not discounting the importance of strong family engagement, a quality educational foundation begins early and is critical for a young person’s future success in school and beyond. Given that 90% of a child’s brain development occurs by the time they reach age 5, the importance of a strong learning environment at an early age cannot be overlooked. !e positive impacts of high-quality early childhood education are well documented and include improved reading ability by the third grade, reduction in the need to hold students back in kindergarten, and a lowering of the incidence of students’ placement into special education.

For the business community, early childhood education investments also make good economic sense. Numerous studies have quanti"ed the signi"cant return on investment for these programs, based in part on increased educational attainment and the reduction in the need for more costly social services.

While competition and choice of programs and providers play an important role in the delivery

of early childhood programs to students and families, this is not the case for

America’s public K-12 education system—a system we know

isn’t making the grade. It’s not adequately preparing our students to succeed in college or the modern workforce. It’s not delivering the skilled workers that businesses need to

drive stronger economic growth, and it’s not helping advance

America’s ability to compete and lead in the global economy.

Pro"ciency in fundamental disciplines is also slipping. Among the 34 leading industrialized countries, the United States continues to fall behind, ranking 17th in reading literacy, 21st in science, and a dismal 26th in mathematics. It should surprise no one that we’ve fallen from No. 1 in the world in the percentage of young adults with college degrees to No. 12.

!ese educational rankings and de"ciencies should be of genuine concern to all of us, especially with the jobs of the 21st century becoming more and more specialized and technical. In fact, there are more than 4 million jobs going un"lled in this country in part

because there aren’t enough quali"ed candidates to "ll them. Some 90% of the jobs in the fastest-growing occupations require postsecondary education and training. By 2020, there will be 120 million high-skilled and high-wage jobs. If we don’t have the workers to "ll them, we will risk our economic leadership in the world as these positions will go beyond our borders.

!ere is a looming national crisis that requires urgent action, and it begins at the most fundamental level: K-12 education. But it doesn’t end there. Our job training systems in this country are ill-equipped to close the skills gap, and our postsecondary institutions continue to be out of reach for far too many Americans.

!e Chamber Foundation is tackling these issues head-on because we want America’s economy to grow, business to be competitive, and all students to have the opportunity for success. Essential to turning around those dismal international comparisons is setting high expectations for all students. We know from decades of experience that setting low standards in grades K–12 results in high remediation rates in 2- and 4-year institutions and workers without the skills employers require.

Rigorous college- and career-ready standards are what students deserve, what higher education requires, and what the business community is demanding. !e Chamber Foundation supports the business community through expertise, resources, programming, and communications tools to advance college- and career-ready standards, such as the Common Core, and aligned assessments to ensure students are meeting these higher goals.

Critical to ensuring high standards across the country, as well as other important policy measures that improve our public education system, is transparency around how states are actually faring when it comes to educating children and young adults. As the signature education research publication of the Foundation, Leaders & Laggards has for seven years provided the business community with solid data and policy recommendations on K–12 educational e#ectiveness, innovation in K–12 education, and the state of public postsecondary education. !e report is unique in that it seeks to identify national leaders (as well as laggards) on a series of indicators that draw upon and re$ect the priorities of the business community.

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By 2020, there will be 120 million high-skilled and high-wage jobs. If we

we will risk our economic leadership in the world as these positions will go beyond our borders.

!e proven success of this report is found in the story of the state of Tennessee. !e Chamber’s inaugural Leaders & Laggards in 2007 bestowed the letter grade of “F” in a couple of key areas related to student achievement in the Volunteer State. Rather than hide from those grades, the leaders in Tennessee set out to turn their system around—raising academic standards and beginning a series of reforms that continue today. The actions the state took then have positioned Tennessee as a leader and have resulted in measureable academic gains for students, as evidenced by the most recent scores on “the Nation’s Report Card”—the National Assessment of Educational Progress. All along the way, the business community has played a key role by pushing for reforms and supporting students, teachers, and schools in the process.

Tennessee’s results are instructive and encouraging. Yet, despite significant resources and the best efforts of many, our education system as a whole is failing to keep pace with the economy, and employers are struggling to find skilled workers. There is a gap between the skills that employers need and the qualifications of today’s job applicants. As a result—despite high unemployment rates—many jobs are left unfilled.

If we are to address this skills gap, we cannot ignore the unemployment crisis among youth and young adults. The employment rates for youth, ages 16 to 19, plummeted from 45% in 2000 to just 26% in 2011—the lowest rate of youth employment since post-World War II. The impact on the health of the economy is a nationwide issue, with young adults increasingly unprepared to enter the workforce. What’s more, the consequences for youth development are profound, with studies demonstrating that youth who are employed are far more likely to be gainfully employed later in life while developing the professional skills that will allow them to advance in their careers.

!e penalty for failing to address this employment gap is a low-skilled and inexperienced workforce that will fail to grow the U.S. economy and will dramatically increase the demand for entitlement programs. Currently, there are 5.8 million youth aged 16 to 24 who are disconnected from school and work, and there are millions more who lack meaningful pathways to education and career.

!e Foundation is working to bring national attention to the challenge of youth employment with a particular focus on the business community’s role in identifying and leading long-term solutions. To truly address this crisis, it’s not enough to simply ask employers to hire more youth – we must work to more e#ectively address the business needs of employers in recruiting, on-boarding, and developing youth, as well as measuring return on investment. !ere are certainly challenges and obstacles, but there exist programs that have successfully married meaningful employment opportunities for youth

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If we are to address this skills gap, we cannot ignore the unemployment crisis among youth and young adults. The employment rates for youth, ages 16 to 19, plummeted from 45% in 2000 to just 26% in 2011—the lowest rate of youth employment since post-World War II.

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EDUCATION AND WORKFORCE BUsiness Horizon Quarterly

Whether it’s access to quality early childhood education, college- and career-ready standards in our public education system, the skills gap, or the crisis in

youth employment, the U.S. Chamber of Commerce Foundation is committed to supporting the business

community as it tackles these challenges.

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with bene"ts for employers. !ese are the programs that must be replicated and scaled across the country.

At the core of the skills gap crisis is a breakdown between supply and demand. For decades, reform initiatives have sought to improve the education system. !e results of such e#orts, however, haven’t gone far enough to improve high school or college graduation rates—or even the e#ectiveness of workforce training programs. Consequently, the skills gap will grow to more than 5 million un"lled positions by 2020. !e Chamber Foundation is working to close that gap for employers and for students and workers.

We have set out to challenge long-standing assumptions about the role of business in education and workforce systems by providing an alternative approach that enables and empowers employers to engage more e#ectively with education and workforce partners. Most reform e#orts focus on improving education and training delivery systems—schools, postsecondary institutions, and worker training programs. Our approach, called Talent Pipeline Management, presents a new model for collaboration that is demand driven and employer centric. !e result will be a more engaged employer community, driving partnerships and changing how education providers (from K–12 to postsecondary) prepare students for success beyond their educational experience.

!e fact is the status quo is not sustainable if America is to compete in a 21st century global economy. Despite record high school graduation rates, too many students are left behind—typically low-income and minority students. And while an 80% high school graduation rate looks impressive on paper, the fact is 60% of "rst-year college students require remediation in English or math because their secondary school didn’t adequately prepare them for college-level work. Furthermore, only about half of students who start a 4-year bachelor’s degree program fulltime actually "nish in six years. !ose who do go on to graduate from a postsecondary institution oftentimes don’t have the

skills necessary for the 21st century workforce, resulting in either costly training or time out of the labor market. !e bottom line is the entire educational continuum in America is in need of reform—and fast.

Whether it’s access to quality early childhood education, college- and career-ready standards in our public education system, the skills gap, or the crisis in youth employment, the U.S. Chamber of Commerce Foundation is committed to supporting the business community as it tackles these challenges. !e employer community has a role to play in each, and without their active participation, the outcome will fall short of our goal—an educated and skilled workforce today prepared for the jobs of tomorrow.

Former Maine Gov. John R. McKernan Jr. is president

of the U.S. Chamber of Commerce Foundation

and a senior adviser to U.S. Chamber President

and CEO Thomas J. Donohue. McKernan provides

both strategic and ongoing leadership to the

U.S. Chamber of Commerce Foundation, which is

dedicated to strengthening America’s long-term competitiveness and

educating the public on how our free enterprise system improves

society and the economy.

Until August 2012, he was chairman of the board of directors of

Education Management Corporation where he served as CEO from 2003

to 2007 and still serves as a director.

McKernan served his native state of Maine for two terms in the U.S.

Congress from 1983 to 1987 and then as governor for two, four-year

terms from 1987 to 1995. During his two terms as governor, McKernan

was chairman of the Education Commission of the States and the

National Education Goals Panel and was recognized as an Outstanding

Governor by the American Society for Training and Development.

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