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Building a New Skilled Talent Decade

Edward E. Gordon, the founder and president of Imperial Consulting Corporation in Chicago, has consulted with leaders in business, education, government, and non-profits for over 50 years. As a writer, researcher, speaker, and consultant he has helped shape policy and programs that advance talent development and regional economic growth. This week, he shares with us the history and the present needs involved in building a new skilled talent decade.

Gordon is the author or co-author of 20 books. His book, Future Jobs: Solving the Employment and Skills Crisis, is the culmination of his work as a visionary who applies a multi-disciplinary approach to today’s complex workforce needs and economic development issues. It won a 2015 Independent Publishers Award. An updated paperback edition was published in 2018.

Recently I spoke at a forum on my White Paper, “Job Shock: Moving Beyond the COVID-19 Employment Meltdown to a New Skilled Talent Decade,” at the Cliff Dwellers Club in Chicago. My presentation and responses to it can be viewed on YouTube at https://youtu.be/gnLBrOiMSYA. In my remarks, I pointed out that history was now repeating itself as workplace technology change is again shifting education and skills requirements.

PAST LABOR HISTORY

During the first decades of the 20th century, a titanic shift in the U.S. economy destabilized society. An industrial revolution triggered by spread of electricity and the growth of factories and offices required workers with at least a basic education in reading and mathematics. Many violently opposed the expansion of public education. Who needs a universal school system? Why educate children, women, and immigrants? You will only cause anarchy by giving them dangerous ideas! Anyway, these people are not trainable. We need them for cheap labor in our factories or on our farms!

As this debate raged across America, more people were persuaded that the expansion of education would benefit society. Starting at the regional and state levels, enlightened community leaders spearheaded the expansion of compulsory tax-supported primary and secondary education. By 1918, all of the then 48 states mandated this standard of public schooling backed by tough truancy laws. The United States was the first nation to attempt to provide a general education to all its citizens. It was a major contributor to the rise of the United States as a world power.

A NEW SKILLED JOB ERA

Another major industrial revolution began in the 1970s as computers and information technology began to be adopted in workplaces. By the beginning of the 21st century, personal computers, smartphones and the internet were everywhere. Automaton has eliminated many low-skill jobs and increased the demand for workers with higher math and reading skills and specialized career training. The seminal 1983 report, “A Nation at Risk,” raised the first red flag that the U.S. education-to-employment system had become obsolete and warned that America needed to provide more students and workers with enhanced education and training for higher-skilled/higher-wage jobs.

However, continuing national testing by the U.S. Department of Education commonly known as the Nation’s Report Card reports low levels of proficiency in math and reading particularly at the 12th-grade-level. Moreover, the COVID-19 pandemic has caused learning loses of up to a year particularly among lower-income students.

These deficiencies in our education-to employment system plus the 130 million American adults who the Barbara Bush foundation reported read at the 8th-grade level or less is building into a severe shortage of skilled labor. Surveys of employers are consistently reporting difficulties in finding qualified people to fill open positions. A September National Federation of Independent Business survey found that 51 percent of owners had job openings they could not fill, the third consecutive month in which record highs for unfilled jobs had been reached. Moreover, 62 percent of small employers seeking to hire had few or no qualified applicants. In July and August, the U.S. Bureau of Labor Statistics reported over 10 million job openings. The Federal Reserve Bank of Atlanta projected that the high number of unfilled jobs is costing U.S. businesses to lose $738 billion in revenue annually.

CAN WE DO IT AGAIN?

As the COVID-19 epidemic has severely disrupted schooling at all levels and caused labor market turmoil, there is the potential for forming broad coalitions to reform our nation’s education-to-employment pipeline. Parents and students are more aware of the importance of good educational preparation for the future, and many businesses are fighting for their very survival.

At present although the number of vacant jobs is high, there are millions of Americans who are unemployed or underemployed who do not precisely match the skills or experience companies are seeking for their open jobs and who therefore are excluded for consideration for them. A September Harvard/Accenture report estimates that there are over 27 million Americans whom they term “hidden workers.”

Our “Job Shock” research clearly shows that Regional Talent Innovation Networks (RETAINs) as public-private partnership hubs can effectively prepare more people for the higher-skilled/higher-wage jobs that are vacant across the United States. Their success hinges upon mobilizing a diversity of partners to engage in meaningful collaboration to close skills-jobs gaps. Cross sector coordination is key. The current barriers between businesses and educational institutions need to be broken down to allow the development of up-to-date career preparation options.

America has a long history of community civic engagement. Enlightened local leaders have periodically stepped forward to bolster our republic during times of crisis. Community engagement is again essential to move the United States forward into a new skilled talent decade.

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Job Shock: Part Six – The First Half

Job Shock: Part Six – The First Half

Edward E. Gordon, the founder and president of Imperial Consulting Corporation in Chicago, has consulted with leaders in business, education, government, and non-profits for over 50 years. As a writer, researcher, speaker, and consultant he has helped shape policy and programs that advance talent development and regional economic growth. This week, he continues his blog series with Job Shock, Part Six – The First Half.

Gordon is the author or co-author of 20 books. His book, Future Jobs: Solving the Employment and Skills Crisis, is the culmination of his work as a visionary who applies a multi-disciplinary approach to today’s complex workforce needs and economic development issues. It won a 2015 Independent Publishers Award. An updated paperback edition was published in 2018.

Solving the Pandemic & 2030 Employment Meltdown

RETAIN Case Studies: Partnerships Rebuilding Local Employment Pipelines

The June Gordon Report provided an introduction to the general characteristics of regional public-private partnerships focusing on economic and workforce development or RETAINs. Across the United States RETAINs have many local brand names.  RETAINs bring together enlightened community leaders from many industry sectors. They cooperate in developing initiatives that provide career education and information to students and retrain incumbent workers to meet the skill demands of workplace technology changes. The goals of RETAINs are to strengthen local institutions and competitive companies while providing local residents with better job opportunities.

There are many paths to pursuing these objectives. Here are examples of RETAINs that are continuing to develop programs that address the talent challenges in their communities.

Manufacturing Renaissance, Chicago, Illinois
For the past 38 years Manufacturing Renaissance (MR) has been recognized as a leading expert, advocate and practitioner of policies and programs that support the manufacturing sector as a primary strategy for reducing poverty, expanding inclusion, and sustaining middle-class communities. MR has currently developed programs in three areas: Career Pathway Services, Policy and Advocacy, and Economic Development. Here is a snapshot of MR’s Career Pathway Services:

Manufacturing Connect. MC is a program designed to expose, inspire, prepare, and support youth and young adults to pursue career pathways in manufacturing.  MC is a community-based program serving in-school youth, ages 14-18, to provide high quality, career pathway programming including career exposure, technical training and work experiences to help young people start and keep good paying jobs in manufacturing.

Young Manufacturers Association. The YMA serves as both a network and a program for young adults, aged 18-29, who are pursuing careers in manufacturing, in-between jobs, in training or interested in starting a career in manufacturing. Through regular meetings and social events, they support one another as peers through training, transition into permanent employment, professional and life skills development, and balancing personal and work life dynamics. The YMA as a program provides services on an as-needed basis, including career coaching, wrap-around supports, employer liaison to help troubleshoot issues that come up at work, and technical training. Together, the YMA network and program are serving the untapped talent and potential that young adults specifically represent to their communities and their current or future employers.

Instructors Apprenticeship for Advanced Manufacturing. IAAM was developed in partnership with the Chicago Teachers Union Foundation and the National Institute for Metalworking Skills to train the next generation of great machining instructors to be technologically, culturally, and pedagogically competent in the machine shop classroom.

Career Pathway Services is not a traditional workforce development program. MR draws heavily from a youth development and social services orientation to engage youth and young adults who typically may not identify or seek out manufacturing as a pathway that can assist them in achieving their life goals. MR introduces young people to the sector, finds a variety of ways for them to relate to peers already in the sector to help illuminate what could be possible for their future. No matter what they ultimately choose, young people benefit from having a network of professional and social support, work experiences, technical and professionalism skills. For those who enroll in our training program and choose to pursue a career-track job in manufacturing we support them as much as possible through training, job placement and beyond to help ensure their success.

MR is expanding its reach in Cook County and showing the way for other RETAINs to begin similar efforts. It illustrates that for a RETAIN to be successful there must be strong cooperation among educational entities, the business community, unions. government agencies, and non-profit partners.

High School Inc., Santa Ana, California

The initial impetus for the creation of the High School Inc. Academies Foundation came from local business leaders in the Santa Ana Chamber of Commerce. Starting in 2003, members of the Chamber of Commerce held discussions with school districts officials on how to raise student achievement. The result was a partnership involving the Chamber, the Foundation and the Santa Ana Unified School District. An official “Memorandum of Understanding was signed by all three partners in May of 2006. This agreement outlined the responsibilities of each partner for the development and operation of the High School Inc. program.

The first six High School Inc. Academies began in 2007 on the campus of Santa Ana Valley High School in the Santa Ana Unified School District. The district’s Career Technical Education (CTE) department conducts monthly meetings with High School Inc.’s staff to maintain the continuity and effectiveness of the academies.

At Valley High School the High School Inc. Academies merge both academic and technical skills through Project Based Learning (PBL), competitions, mentorships, and business internships. Because of the success of the High School Inc. academies, there has been considerable growth in the school district’s creation of career pathways in business and industry sectors. These pathways start as early as sixth grade in the school district’s intermediate schools and send students into the waiting High School Inc. Academies.

The number of Valley high school students categorized as “socioeconomically disadvantaged” in 2008 was 80 percent. However, with the help of talented teachers and staff members, and the existence of High School Inc., Valley High School has raised the level of achievement for all Valley high school students.

Mary Tran, Executive Director of High School Inc. reports that the six High School Inc. Academies have grown from an enrollment of 96 students at its start in 2007 to over 1,572 students in 2019. The Academies boast a 98% high school graduation rate. In the past year there have been 160 professional internships for seniors. The number of students receiving “Industry Certifications” after a minimum of two years in the program was 511, with over 319 students participating in business/industry themed competitions. Students in the 2018-2019 received over 950 hours of volunteer time from business and industry representatives. The program has received numerous awards and recognitions including the prestigious “Golden Bell Award” given to High School Inc. in 2014 by the California School Board Association.

Jack E. Oakes, an officer on the Board of Directors for High School Inc., says “High School Inc.’s development has produced the realization that, before students can be College and Career Ready, they must be ‘Achievement Ready.’ Students reach this new level of preparedness by being motivated to strive at or beyond their potential. The High School Inc. model ensures that students are Achievement Ready before they graduate and pursue higher education and careers. The reforms at Valley High School embrace the mission of High School Inc. ‘to empower youth and strengthen communities through education and business partnerships.’”

Summing Up
Each organization profiled here has continued to evolve to meet the challenges posed by technological, economic, and workforce shifts. The COVID-19 pandemic has disrupted American life at many levels. It opens up new opportunities for many communities to use the RETAIN model as their first step toward a more knowledgeable workforce and the better paying jobs of the Fourth Industrial Revolution.

The last segment of “Job Shock” will focus on why the 2020s will be a crucial decade for building a skilled workforce. As the nation emerges from COVID-19 shutdowns, the disconnect between needed skills and available jobs is gaining increasing attention. The time has arrived for RETAINs to take the lead in rebuilding education-to-employment pipelines in communities across the United States.

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Job Shock Part Four: A New Time Bomb: An Explosion of Skilled Worker Shortages

 

Edward E. Gordon, the founder and president of Imperial Consulting Corporation in Chicago, has consulted with leaders in business, education, government, and non-profits for over 50 years. As a writer, researcher, speaker, and consultant he has helped shape policy and programs that advance talent development and regional economic growth. This week, he continues his blog series with Job Shock, Part Four.

Gordon is the author or co-author of 20 books. His book, Future Jobs: Solving the Employment and Skills Crisis, is the culmination of his work as a visionary who applies a multi-disciplinary approach to today’s complex workforce needs and economic development issues. It won a 2015 Independent Publishers Award. An updated paperback edition was published in 2018.

It is already apparent that as COVID-19 restrictions ease, a pent-up demand for many types of goods and services will be unleashed. As businesses reopen or expand to meet this boom, the demand for skilled workers will soar. It is not likely to fall for the rest of this decade. As cited in prior “Job Shock” segments, a major demographic shift, serious education deficits, and rising job-skill demands have combined with COVID-19 to undermine the quality and composition of the U.S. labor force. An April 2021 National Federation of Independent Businesses survey found that 44 percent of small businesses had job openings they could not fill, a record 22 percent higher than the 48-year average for this survey. Ninety-two percent of businesses seeking workers reported few or no qualified applicants. The U.S. Bureau of Labor Statistics reported that there were a record 8.1 million job openings at the end of March 2021. We estimate the true number to be over 11 million.

Employers Face Mounting Skills Challenges

COVID-19 has greatly increased the need for skills training. The shift to remote work has placed new skill demands on many employees. Because of the pandemic’s devastating effect on certain industries, about 20 percent of U.S. workers have left their former jobs for new types of work. A March Prudential Pulse of American Worker Survey found that about one-quarter of the workers surveyed plan to look for a different job with another employer once the current crisis eases. All these factors indicate that employee training must be greatly increased.

A significant shift in the priorities of American businesses is urgently needed. In recent years business expenditures on training and education have declined. For every dollar America’s chief foreign competitors invest in employee talent development, U.S. business invests only 20 cents. Training is mostly concentrated on managers and professionals. Only about 20 to 30 percent of U.S. employers have offered entry-level job training or provided employees with training updates. Much of what is now done is mandated by safety regulations. It is not about building new skills.

A recent McKinsey Global Survey found that 69 percent of businesses were doing more skill building than they did prior to the pandemic. However, only 28 percent of these organizations had a training department or similar facility focused on learning. The organizations that employed a variety of education/training methods reported a higher rate of success in reskilling and upskilling their employees.

Even though COVID-19 has greatly increased the need for entry-level training and reskilling, many businesses are again expanding stock buy-backs and increasing dividends rather than investing in worker skills. American companies and organizations instead need to launch new HR initiatives to fill skilled job vacancies and upskill their existing employees through a variety of means including corporate universities and training partnerships.

Human and Financial Costs

Job Shock will have a major economic impact in the United States and globally. In 2030 estimated U.S unfilled jobs range from 25 to 30 million. Globally over 95 million jobs could be vacant. The financial costs for individuals., businesses and nations will be staggering. By 2030 U.S. GDP loss could be over $2.5 trillion. Global losses might reach $18 trillion.

Job Shock: Where Do We Go from Here?

The picture that emerges from before, during, and after the COVID-19 crisis is an American workforce with an abundance of people, but a shortfall of talent for the jobs of the Fourth Industrial Revolution. An analysis of the composition of the U.S. labor market at the beginning 2020 and projecting what it might be like in 2030 if the education-to-employment system remains unchanged shows:

Seventy percent of jobs (114 million) were high to mid-skill. Only 55 million workers were qualified. The result was a 60 million job deficit. American employers tried to fill these vacancies with retired baby-boomers, workers brought from other countries, foreign students attending U.S. universities, and/or the increased use of automation. Companies unable to find skilled talent moved their jobs abroad. Thirty percent of all jobs (50 million) were lower skilled. There were 110 million workers at that level, i.e., with limited math and reading competencies. The result was a 60 million worker surplus. Many gave up looking for a job (and thus were not counted as unemployed) because they were not offered entry-level job training.The 10.5 million estimated vacant jobs cost the United States $253 billion in lost productivity and profit.

At least 75 percent of jobs (128 million) will be high to mid-skill. Only 33 percent of American workers (about 56 million) will be qualified for these jobs, resulting in a 72 million job deficit. The U.S. skilled labor shortage will deepen because 70 million baby-boomers will have aged out of the workforce, a global 50 to 95 million skilled worker shortage will limit immigration to the United States, and increased automation will demand ever higher skill levels from workers. The pace of companies leaving the United States due to skilled-talent shortages will rise.

In contrast, 25 percent of U.S. jobs (32 million) will remain low skill. If education and skill upgrades are not adopted over this decade, possibly 114 million low skill people will be in the U.S. labor force. A huge “techno-peasant” underclass will compete for a diminishing number of low skill jobs. High unemployment coupled with mounting skill shortfalls could pose a real threat to American social stability.

An estimated 30 million vacant jobs are possible. The economic loss to the U.S. economy will be between $ 1 trillion to over $2.5 trillion.

The Job Shock Crossroad

We do have the power over this decade to increase the education and skills of American workers. We can produce a workforce that meets the talent requirements of 2030. It does require coordinated actions from key sections of our society. Picture the American talent creation system as a boat with two figures pulling the oars and a third at the rudder. Parents are the rudder steering a better course for their child’s future. One oar is pulled by educators (K-12, post-secondary). The other oar is in the hands of employers providing job training and skill updates to their workers. If one or more of these parties fails at their roles, the boat goes off-course, stops, or sinks from ever larger job shock waves.

This coordinated effort needs to start at the regional level. Enlightened community leaders need to pull together to keep the boat on course. The COVID-19 pandemic has produced a storm of hurricane proportions making the need for immediate action more vital than ever.

Yet many people across America remain opposed to systemic social changes. They are deeply divided into multiple warring “tribes.” They remain at war with each other rather than working to reach agreement on vital common goals. Their acceptance of the cold, hard facts of “Job Shock” remains a hard sell.

The longer the United States delays making systemic changes to the education-to-employment system, the deeper the economic and social turmoil between now and 2030. As Lawrence Summers, the former U.S. Treasury Secretary said about employment, “Walk outside: labor shortage is the pervasive phenomenon.”

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Job Shock, Part Three

Edward E. Gordon, the founder and president of Imperial Consulting Corporation in Chicago, has consulted with leaders in business, education, government, and non-profits for over 50 years. As a writer, researcher, speaker, and consultant he has helped shape policy and programs that advance talent development and regional economic growth. This week, he continues his blog series with Job Shock, Part Three.

Gordon is the author or co-author of 20 books. His book, Future Jobs: Solving the Employment and Skills Crisis, is the culmination of his work as a visionary who applies a multi-disciplinary approach to today’s complex workforce needs and economic development issues. It won a 2015 Independent Publishers Award. An updated paperback edition was published in 2018.

Job Shock Part Three: Solving the Pandemic & 2030 Employment Meltdown

Part III: The Kids & Workers Are Not “All Right”

Many students and workers cannot accept the new reality that they are undereducated for many jobs in this decade’s labor market, let alone future ones!

KNAPP has created a robot for warehouses with the dexterity to recognize and sort random items with 99 percent accuracy. Once such robots are put into operation, humans would continue to work alongside them, but the catch is that these workers will need a whole set of additional skills.

“If this happens 50 years from now,” stated Pieter Abbeel, an artificial intelligence professor at University of California, Berkeley, “there is plenty of time for the educational system to catch up to the job market.” The trouble with his prediction is that the COVID-19 pandemic has sped up companies’ plans to further automate workplaces today!

Throughout the course of the COVID-19 pandemic, small business owners have consistently reported that the quality of labor was an important business problem. In a February 2021 National Federation of Independent Business survey 56 percent of the respondents were trying to hire and 91 percent of these employers reported few or no qualified applicants for their job openings.

This situation is the result of outdated regional education-to-employment systems across the United States. They have largely become broken pipelines with an inadequate flow of people qualified to fill local jobs. Unfortunately, this skills-jobs gap has persisted throughout the last two decades.  As labor economist, Kevin Hollenbeck wrote in 2013, “I am reminded of the adage about the frog in the pot. If you put a frog into a pot of boiling water, it will jump out. But if you put a frog in a pot of water and then slowly boil it, the consequences will be dire for the frog. . .. We (workers, employers, policymakers, and politicians) like that frog, have not been alarmed enough by the signals of a widening skills-jobs gap . . . to jump to action, and now we face the dire consequences in the form of a “talent cliff.”

The COVID-19 pandemic has made this talent cliff steeper.  The switch to remote schooling has meant that many students may be behind as much as a full grade level. Jobs go unfilled due to the lack of qualified applicants while more workers remain unemployed for six months or more and the labor-force participation decreases. Clearly the kids and workers are not “all right.” Denial or wishful thinking will not change this job shock reality.

Knowledge Shock

The 2017 film “Hidden Figures” focuses on the lives of three African-American women who NASA hired because of their advanced math attainments. Through making important contributions to NASA’s space mission, these women overcame race and gender discrimination, earned the respect of their co-workers, and secured career advancement. These three women are unsung heroes of the U.S. space race against the Soviet Union.

What was a major reason for their success?  With the long-term help of their parents, each of the women overcame formidable barriers to obtaining the educational preparation that developed their mathematical talents. Education is a shared responsibility between parents and schools. Education should begin at home. Habits of learning should be instilled there. Parents can help a child learn-how-to-learn by fostering each child’s personal talents and interests.

Unfortunately, America’s popular culture does not esteem educators or link educational attainment to success in life. Parents are the primary motivators of their children.  If parents do not believe that doing well in school is very important, neither will their children.

Many parents also believe that their local school is providing a good education to their children. Regretfully this is often not the case. Education levels have not kept pace with skill demands in workplaces.

There is ample evidence that K-12 education in the United States is not providing many students with the educational foundations needed for their future development. Every two years nationwide achievement tests are given to students in grades 4, 8, and 12. The National Assessment of Educational Progress (NAEP) commonly called the “Nation’s Report Card” is conducted by the U.S. Department of Education. Recent results have been nothing short of alarming.

Students are ranked at four levels: below basic, basic, proficient (at grade level), and advanced (above grade level). The Grade 4 test results in 2019 were: 65 percent read below grade level, 26 percent were at grade level, and 9 percent were above grade level. Fourth grade is a crucial point for reading attainment because in the first three grades’ students are taught how to read, but by the fourth grade, they should have attained a level of reading proficiency that enables them to learn how to learn.

At grade 12 in 2019, 37 percent received NAEP reading scores of proficient or above. However, 30 percent were at the below basic level which was larger than in any previous assessment year. In math, only 24 percent of high school seniors were at the proficient or above levels.

Yet paradoxically the U.S. high school graduation rate has been rising. How can this be explained? Grade-level standards are being downgraded or bypassed. For instance, failing students are enrolled in special “credit recovery programs” that allow them to move on to the next grade or graduate with no or minimal academic standards for a passing grade. Clearly all high school degrees are not equal!

The NAEP scores indicate that a large proportion of U.S. students are not equipped with the basic educational foundation needed for success in post-secondary programs. About 67 percent of high school graduates attend higher educational institutions. After six years only about one-third complete a degree, certificate or apprenticeship.

Many of these students take either the SAT or ACT exams that are designed to access their readiness for higher learning. Between 1967 and 2017 overall test scores on these exams have declined. In 2019 only 37 percent of ACT takers and 45 percent of SAT takers tested fully ready for post-secondary programs.

Higher-educational institutions are compelled to offer remedial education for entering students. About 40 percent of entering freshmen are now enrolled in non-college credit reading, math, or written communication classes. At some institutions over 90 percent of entering students need remedial education. Poor student preparation is also leading to declining quality in higher education.

America does have excellent schools and universities. On the 2020 Social Progress Index the United States ranked first in the world in the quality of its universities. But on this same index, the United States ranked 91st in student access to a quality elementary/secondary education. Over the past decade the decline of the U.S. rank on this indicator has been greater than that any other nation. Unless widespread systemic reform of U.S. K-12 education becomes a national priority, a significant proportion of the next generation of American workers will be under-skilled for employment in the workplaces of the future.

COVID-19 Learning Consequences

Since March 2020 almost all K-12 students have been receiving at least some instruction remotely rather than in the classroom. When the pandemic subsides, what kind of learning losses can we expect?

  •  Millions of low-income and rural students lacked reliable internet access and about 3 million mainly low-income students were not enrolled in school. Many will likely fall behind a full grade level or more.
  • The longer the pandemic persists, the greater the harm to students being taught fully or partly online.
  • Online learning is less effective for younger students as their attention spans are limited, and it also negatively impacts their social skill development.
  • Two major testing services reported that the math scores of elementary students dropped 5 to 10 percentile points in fall 2020. Both noted that their 2020 testing pool was significantly smaller as dropouts or students lacking access to digital technology were absent.
  • High school dropout rates most likely will increase

COVID-19 has also led to a severe decline in enrollments at America’s community colleges. Student enrollment was down 10 percent in the fall of 2020 compared to that of 2019. Because community colleges are an important component of apprenticeship, certificate, and other job preparation programs, this is a significant blow to the development of a more skilled workforce. Moreover, community colleges are the most accessible post-secondary option for low-income Americans whose K-12 education has suffered most due to a lack of internet access.

The Best Time for Education Reform Is Now!

In the wake of the COVID-19 pandemic, as the Brookings Report “Beyond Reopening Schools” cogently states “it is hard to imagine there will be another moment in history when the central role of education in the economic, social, and political prosperity and stability of nations is so obvious and well understood by the general population.”  Now clearly is the time for local, state, and federal action to revitalize K-12 education in the United States.

It is time to go beyond piecemeal reforms and playing “blame games” if we are to close the widening gap in the quality of U.S. education. There are some fundamental components of quality education that can be learned from the study of the world’s most successful educational systems.

  1. Great teachers: The key to boosting student results is improving instruction. Teachers need to thoroughly know their subjects and then receive extensive training and coaching in instructional methodology before and after they begin teaching. More top college students need to become teachers. To attract and retain these recruits, we need to front-load their compensation so that entry-level salaries are competitive with those of alternate professions. To keep their skills up-to-date, teachers need quality professional development programs throughout their careers.
  2. Effective Principals: School principals need to be educated and trained as both efficient administrators and drivers of instructional improvement. They have a key leadership role in fostering a culture of high expectations in educational attainment for teachers, students, and parents.
  3. Updated curriculums: All states need to mandate strengthened 21st-century curriculums to give more students the educational foundations necessary for high-skill/high-paying employment. To accommodate the diverse interests and talents of students, more options should be available at the high-school level including career education programs and advanced placement courses.
  4. The Key Role of Parents: The switch to remote schooling during the COVID-19 pandemic seems to have greatly increased parent awareness of the difficulties teachers face in keeping students engaged and in helping them make progress in their day-to-day learning. This should motivate parents to take a greater interest in the quality of the schooling their children are receiving and cooperate more fully in fostering their children’s daily academic progress.

The Looming Disaster of Job Shock

As low-skill jobs shrink due to automation, underprivileged elementary, high school and community college students will bear the brunt of technological advances. They are under threat of becoming the “technopeasants” of the 21st century.

We are referring to millions of our future workers who deserve an education systemically updated to meet the knowledge and skill demands of modern workplaces. America needs them to become part of a new talent pool for the 21st-century, not the victims of job shock.

Coming Next: “Job Shock Part IV”
Businesses across America now complain about the low skills of many job applicants. Yet, they often resist job training or employee reskilling programs. “Job Shock” will next review this paradox in our business culture and what needs to change to avoid potentially dire economic consequences over the next decade.

Did you enjoy this blog? Read more great blog posts here.
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Job Shock, Part Two

Edward E. Gordon, the founder and president of Imperial Consulting Corporation in Chicago, has consulted with leaders in business, education, government, and non-profits for over 50 years. As a writer, researcher, speaker, and consultant he has helped shape policy and programs that advance talent development and regional economic growth. This week, he continues his blog series with Job Shock, Part Two.

Gordon is the author or co-author of 20 books. His book, Future Jobs: Solving the Employment and Skills Crisis, is the culmination of his work as a visionary who applies a multi-disciplinary approach to today’s complex workforce needs and economic development issues. It won a 2015 Independent Publishers Award. An updated paperback edition was published in 2018.

Job Shock, Part Two – by Ed Gordon

Part II: What Has Changed?

Job Shock: Solving the Pandemic & 2030 Employment Meltdown

Would You Use a Videotape in a Blu-ray Disc Player?

The days of semi-skilled blue-collar factory jobs are fast disappearing. These jobs once provided a 19-year-old high school graduate or drop-out with the wages and benefits needed to support a family with a middle-class standard of living. Thinking that working in low-skill manufacturing or service occupations will propel you into the middle-class today is as sensible as buying a videotape for a Blu-ray disc player.

The decline of many types of U.S. manufacturing jobs was a hot political issue in both the 2016 and 2020 Presidential elections. The economic consequences of the closing of large manufacturing plants, particularly those making automobiles and large household appliances, have been especially severe. Many of these factories were located in smaller cities in which they were the central economic engines of their communities since the 1950s. They provided large numbers of assembly-line workers with well-paying, lower-skill blue-collar jobs. The growing prominence of electric vehicles has made such auto plants obsolete. The new technologies used in these vehicles mean that robotics are a central feature of their assembly lines. Such assembly lines depend on higher-skill workers who control, maintain, and repair the automated equipment. Manufacturing, in general, is undergoing a similar transition with jobs that support automated equipment growing dramatically.

The December 2020 survey of the National Association of Manufacturers illustrates the rapid escalation of skills demanded in manufacturing. Even in the midst of the COVID-19 pandemic, respondents reported the “inability to attract and retain talent” as their top business challenge. The Manufacturing Institute has projected that 2.4 million manufacturing jobs will likely be unfilled over the next decade due to skill deficits.

The Fourth Industrial Revolution is wiping out many types of middle-skill jobs. The COVID-19 pandemic has more severely affected middle-skill and low-skill workers.  More individuals see both their financial well-being and social status threatened. This has helped to fuel the growth of populist movements that are latching on to conspiracy theories or finding other scapegoats to blame for their current jobless or low-paying job situations. They are placing the blame on the wrong targets. They should be directing their anger at inadequate or outmoded training and education systems that do not provide the skills needed for the jobs that are currently in demand.

Demographic Time Bomb

The United States and the world are facing a structural labor-market race between advancing technology, on the one hand, and demographics and education on the other. In the United States alone 79 million baby-boomers are retiring between 2010 and 2030. The U.S. Census Bureau projects that one in five Americans will be 65 or older in 2030 and by 2025 the number of retirees will be enough to populate 27 Florida’s. While the US population is projected to grow to over 355 million in 2030, an increase of about 6 percent, the working age population 18 to 64 is only projected to increase by 2 percent.

Similar demographic shifts are also occurring in other nations in Europe and Asia. Birth rates are falling significantly in Italy, Germany, China, Japan, and South Korea to name a few. In these nations as in the United States, the working age population is supporting an ever-growing number of retirees. This demographic shift increases the importance of raising worker productivity. In most nations the current pace of education reform and worker retraining will be too little, too late. For example, in China about 70 percent of the labor force remains unskilled as its huge rural population is relegated to inferior schools where most students receive no more than a junior high education. (Rozelle, Invisible China)

The central premise of this “Job Shock” White Paper is that radical improvements in educational and training programs are needed to obtain a global labor force that meets the Fourth Industrial Revolution’s technological demands. American businesses have become over-reliant on importing foreign talent. However, as the world-wide war for talent heats up, it will be virtually impossible for the United States to use this strategy to compensate for our chronic domestic talent shortages. This situation is likely to become more acute between 2020 and 2030.

Lessons from the Past

This is not the first time the United States has struggled with job shock. Beginning in the 1890s the spread of electric power led to mass production methods in factories and population shifting from farms to cities. Factory technologies required workers with basic reading and math skills. To meet these expanded educational needs, compulsory tax-supported education gradually spread across the nation.

The launch of Sputnik in 1957 triggered the Space Race between the United States and the Soviet Union. This spurred the growth of the American aeronautic and defense industries with a consequent rise of jobs and careers in STEM (science, technology, engineering and mathematics) areas. Encouraged by federal funding, many initiatives sought to improve and expand STEM education and interest more students in pursuing careers in these areas. The 1970s saw the introduction of personal computers (PCs) in homes and businesses across the United States further expanding technical employment growth.

The good news is that there is not a fixed number of jobs in the U.S. economy. These past disruptive job transitions provide evidence that personal attitudes toward jobs do change and that the American labor market is very elastic. The new job requirements of the 1970s sparked a nationwide impetus for improving reading, math, and science instruction in elementary and secondary schools. There also was tremendous growth in educational options at the college level, and U.S. businesses developed in-house training and education programs for new and incumbent workers.

Today’s Job Demands

The Space Race and computer technology revolution produced islands of educational excellence but did not lead to the general development and expansion of education programs across the United States. The current education-to-employment system lags far behind the rate of change in the skill demands of the U.S. labor economy. Two-thirds of occupations now require post-secondary education, while a high school education or less suffices for only about one-third of jobs.

The challenge we now face is that only about one-third of our high school graduates leave school with reading and math comprehension at the twelfth-grade level. These skill levels are needed for the successful completion of post-secondary certificates, apprenticeships, community college two-year degrees, or four-year degrees.

Today’s technologies are increasing the importance of the ability to work in teams that often include workers in a variety of skill and job classifications. This in turn is heightening the importance of so-called “soft skills,” such as effective communication, problem-solving, self-motivation, time management, leadership, and ethical workplace standards.

The COVID-19 crisis has abruptly changed workplaces and skill demands worldwide. It is increasing the adoption of automation, robotics, and technologies that facilitate remote-work options. In this changed environment, adaptability has become a vital skill. A key to adaptability is the cognitive ability of learning how to learn as it enables workers to quickly gain new knowledge and analyze how to implement it to meet new workforce challenges.

We are now in the throes of Job Shock. Too many Americans both young and old cannot find a good job, and many have given up even looking for one. The U.S. labor market participation rate began a downward slide after the 2010 recession and has dived by two percentage points over the past year as the COVID-19 pandemic has decimated some sectors of the U.S. economy. (U.S. Bureau of Labor Statistics, January 2021) This makes the official unemployment rate an inaccurate barometer of workforce conditions.

The United States is now facing a need to provide updated education and training to two expanding sectors of the adult population – those who are not currently employed and those who need to transition to other occupations due to the impact of the COVID pandemic. In addition, the talent development needs of the current workforce must be addressed. In next month’s Gordon Report, the “Job Shock” White Paper will examine the current education and skills profiles of different segments of the U.S. population and what consequences we can expect over the next decade if changes are not made.

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Why Do We Do What We Do?

One of the most widely watched TED talks was by Simon Sinek called “start with why.” It has been four months short of fifty years that I have been involved working in this Industry. When people questioned what I wanted to do with my life when I entered the work place, I had no real answer. I don’t think I was very different from most people. Unless a teenager has a clear purpose of medicine or law or other specialized careers most people are looking for a job that is fulfilling and provides a reasonable income.

I bounced around through a reasonable number of different “temporary” work assignments until settling on working as a social worker in a custodial setting for Juvenile delinquents. I had been unsuccessful at landing a job in the computer Industry and settled on reconnecting with my heritage as my great grandfather was one of the founders of this institution. I was hired as a “control figure.” I was large and fit. This work involved being on the job from 7:00 AM until 11:00 PM daily and on call overnight. I had one day off every two weeks. (During which I slept.)

After six months of this I quit as it was too stressful for me. In the first task I was given there, eight of the twelve young men were there for murder. I had never experienced that side of society before.

I also was involved in teaching at a University in Montreal. I developed and taught a program within the Physical Education Department to teach aspiring coaches in swimming.
From that work my family got a call from the father of one of my University students inquiring as to my availability for an interview. The rest is history.

I was afforded wonderful opportunities to learn. I was given direct training on the job as well as an OEM who took an interest in my development. I am very sensitive to the need for employees to feel that they have a role to play and that the Company is interested in their professional development and growth. Prof. Sinek has an additional interview on YouTube addressing Millennials in the Workplace. It is very helpful.

One of my associates, Edward Gordon, a University of Chicago professor, author and consultant writes regularly on jobs and the workplace. His book Future Jobs is one that everyone in leadership positions across the world should read. His November report includes the following excerpt:

“Employer job training is only a part of the solution to the jobs-skills gap. The U.S. education system is not producing enough graduates with the credentials sought by American employers. Although 68 percent of high school seniors enroll in post-secondary programs, after six years only about 33 percent complete a certificate, apprenticeship, or degree program. Students who are required to take remedial courses (usually in math, reading or writing) drop out at far higher rates reflecting the difficulty of making up for past deficiencies in attainment. Clearly American education is out of step with current societal and economic needs. I agree with David Brooks who recently wrote, “We build a broken system and then ask people to try to fit into the system instead of tailoring a system around people’s actual needs.”

This brings me to Learning Without Scars.

We have been in the Industry since 1969, I have worked with thousands of dealers around the world. One thing is common with every employee with whom I have worked. EVERYONE WANTS TO DO A GOOD JOB. I believe our challenge is first to help employees understand what doing a good job means for each of them and how they can progress to better and better things according to their particular needs, wants and desires. That is why we do what we do. I hope that is also true of the leadership in every dealership in the work. Help each employee to be better at what they do and to help them reach their individual potential.

The Time is NOW.

The Challenge

We are getting close to being in a position of complete saturation in the jobs market. We now have more jobs open than we have workers looking for a job. That has not happened for a long time.

We now have over 6,000,000 jobs open across the country.

The most recent Gordon report, from Edward Gordon, one of our colleagues who focuses on training and education, said:

“Today is a watershed era similar to the Industrial Revolution of the late 19th and early 20th centuries. Then new methods of production required more educated workers. The factory system and the consequent growth of American cities sparked the development of public schooling at the local levels, that in turn led to the passing of compulsory schooling laws at the state level. The United States was the first nation in the world to institute compulsory tax-supported public education, and it was a key component in the economic and industrial expansion of the United States. It was history’s first comprehensive education-to employment system.

The spread of computer technology in today’s workplaces is again raising the demand for a more educated workforce. While there are some pockets of progress, too many Americans are not receiving the education needed for 21st-century jobs and careers. Our education-to-employment system clearly needs re-invention, but entrenched bureaucracies in business, education, and government stand in the way. Too many components of American society are caught in the blame game, instead of working together to find solutions.

There were deep divisions in American society one hundred years ago. Just as today, immigration and economic inequality stoked tensions. Yet as community after community discovered that the pain of defending the status quo was greater than that of systemic change, solutions were forged. I believe that we are at this point again. The United States was founded and still stands because of our belief in a better future for all. Americans have overcome formidable obstacles in the past. We can do it again!”

One of the keys here is the education to employment system. We are not satisfying the needs of our employers.

You have all read that I believe greatly in apprentice programs and mentorship programs as a means to get motivated people with good attitudes into the workforce. You also know that I am a huge fan of the German apprentice programs. Every year about half a million Germans enter the workforce through these apprenticeship programs. Apprenticeships are one of the foundations of Germany’s manufacturing prowess. Felix Raunier, a professor ate the University of Bremen, says even the US has started to notice. Raunier says “US society has stigmatized vocational education, so most parents see college as the only path to status and a good career for their children.” Ludger Deitmer, is international research coordinator at the Institute of Technology and Education at the University of Bremen. He thinks that vocational training should be one of the medicines, perhaps the key medicine, in how to make America Great Again.

Companies in the US are not completely on board to this approach. Apprentices, in Germany, earn income as they work in companies and go to school. There is a partnership between the schools and the employers.

Marilyn Hewson, Chairman, President and CEO of Lockheed Martin, recently testified “to a new and pressing challenge: the shortage of skilled workers to fill the jobs being created by robust growth.” One survey by Industry Week found that nearly 40% of the aerospace companies believe that the skills gap has had an “extreme” effect on their ability to innovate and grow.

Last year the administration created the apprenticeship Task Force and issued an executive order to identify and remove the bureaucratic and regulatory impediments to apprenticeships. Apprenticeships help workers train on a specific craft or skill that a company needs. Lockheed Martin is creating 8,000 apprenticeship and workforce development opportunities in the next five years.

Let’s bring this back to our Industry.

Should you employ a High School student on a part time basis, as they continue to go to school, so that they can learn what happens in your dealership and if they, and you, think there are opportunities. If there are then together, the apprentice and the company, can develop a plan. You can explore specific learning programs that local Junior Colleges and Vocational Schools offer. You can work with the schools to create new classes to fit your needs.

As Hewson says; “it is up to this generation of leaders in government, industry and across society to invest in and to develop a workforce equal to the global challenges ahead. It is now time to act across every sector to ensure that every worker has an opportunity to grow, achieve, improve, train and excel over the entirety of their careers – regardless of where they start, where they work, or how high they aspire to go.”
Should you have apprentices working in your parts department? Should you have apprentices in your service departments? Absolutely.

The Time is NOW.