1. The Retiring Baby Boomers: Will We Be Able To Replace
Them?
Presented By:
Zach Mahaney
2. Rising Above The Gathering Storm
Due to Globalization, driven by modern
communications and other advances, workers in
virtually every sector must now face competitors
who live just a mouse-click away in Ireland,
Finland, China, India, or dozens of other nations
whose economies are growing.
This has been aptly referred to as the Death of Distance.
Source: Executive Summary, Rising Above the Gathering Storm,
NAEIM
3. Economic Stresses Like Never Before
Technology is accelerating, and its effects are becoming more
pervasive. Its affects not just what we produce but also what is
asked of us and how we are organized to produce it.
Globalization is accelerating as well, with the links among nations
becoming not just more numerous, but deeper, as the developing
world moves to higher-valued services once thought the exclusive
province of advanced nations.
Demographics in the United States are about to change dramatically,
as baby boomers enter retirement and the prime-age adult
populations shrink in comparison to the numbers of old and
young.
SOURCE: 2005 National Education Summit on High Schools
4. Lifetime Earnings Analyzed
Source: U.S. Census Bureau, 2002
5. 0
1
2
3
4
5
6
7
8
9
1.7%
1.8
2.5
3.0
3.7
4.5
5.0
8.5
Higher Learning = Higher Earning
In todays world, those with a higher education will benefit
most.
PROFESSIONAL
DEGREE
DOCTORATE
MASTERS
DEGREE
BACHELORS
DEGREE
ASSOCIATE
DEGREE
SOME COLLEGE
NO DEGREE
HIGH SCHOOL
GRADUATE
LESS THAN
HIGH SCHOOL
MEDIAN EARNINGS IN 2003
UNEMPLOYMENT IN 2004
Note: Earnings for year-round full-time workers 25 years and over;
unemployment rate for those 25 and over
Source: Bureau of the Census: Bureau of Labor Statistics
Published by Postsecondary Education P.O. Box 415 Oskaloosa, Iowa
52577-0415 www.postsecondary.org
6. Economic Stresses Like Never Before
Technology is accelerating, and its effects are becoming more
pervasive. Its affects not just what we produce but also what is
asked of us and how we are organized to produce it.
Globalization is accelerating as well, with the links among nations
becoming not just more numerous, but deeper, as the developing
world moves to higher-valued services once thought the exclusive
province of advanced nations.
Demographics in the United States are about to change dramatically,
as baby boomers enter retirement and the prime-age adult
populations shrink in comparison to the numbers of old and
young.
Source: 2005 National Education Summit on High Schools
7. The World Is Shrinking Fast
Since,1993, the rise in the U.S. trade deficit with Canada and
Mexico through 2002 has caused the displacement of production that
supported 879,280 U.S. jobs.
Source: The High Price of Free Trade, Robert E. Scott, Economic
Policy Institute
Fears engendered by off shoring have a valid basis. Since
January 2001, the U.S. economy has lost almost 2 million jobs.
Source: Understanding the Off shoring Challenge, Robert Atkinson,
The New Economy
8. Challenged Like Never Before
U.S. lacking influx of engineers and scientists into the
workforce
25% of current science and engineering workforce is over 50 years
old
U.S. ranks 17th in world in students pursuing engineering and
science degrees
Demand for these professionals will grow at 5 times the rate for
other professions in the next several years
9. We need to be telling our kids to hurry up and eat and get
to their homework - there are kids in China and India who are
starving for our jobs
The Perfect Storm
The numbers gap
The ambition gap
The education gap
An Indian Engineer only earns1/5 the
wages of an American Engineer.
Source: Tough Choices or Tough Times, 2006, National Center on
Education and the Economy
10. How Does The U.S. Measure Up Internationally?
17th in 8th grade reading
26th in 8th grade math
20th in 8th grade science
16th in high school graduation rates
South Korea, about the same size as
Ohio in square miles, graduates more
students with science, technology,
engineering and mathematics degrees
than the whole United States
SOURCE: Ohio Grant makers Forum: Educating for Ohios Future, Dec.
2006
11. What About Appalachia?
12. Workforce Reality
13. What Jobs?
14. Workforce Reality by 2012
SOURCE: Promise Abandoned A Report by the Education Trust August
2006
15. College Access: How Do We Compare?
16. ACT Research Results
Research results show that the level of readiness needed to enter
workforce training programs and to enter college are
comparable.
Level of expectation for students entering jobs offering a wage
that can sustain a small family is the same as that needed for
college.
17. Factory Workers Analyzed
SOURCE: U.S. Bureau of Labor Statistics, 2003
18. Even Blue-Collar Jobs Require Higher-Level Skills
Requirements for tool and die makers
Four or five years of apprenticeship and/or postsecondary
training
Algebra, geometry, trigonometry and statistics
Requirements for sheet metal workers
Four or five years of apprenticeship
Algebra, geometry, trigonometry and technical reading
SOURCE: National Association of Manufacturers
19. Societal Change?
For the past 25 years, we have optimized
our organizations for efficiency and
quality.
Over the next quarter century, we must
optimize our entire society for innovation.
Source: Tough Choices or Tough Times, 2006, National Center on
Education and the Economy
20. Higher Education Act of 1965
Purpose to provide the opportunity for more lower and middle income
families to go to college
Reality: Today we have not only less mobility than we did twenty
years ago, but also less than in most other developed
countries
20
SOURCE: Hancock, 2006
21. Solution
Revise Higher Education Act of 1965 to pay for an associate degree
for every student
Upon graduation if student is not employed within six months, they
work for a government civilian core to obtain experience for
employment
Provide 80% income tax deduction for education beyond an Associate
Degree
21
22. Technology and the Economy
23. The Road We Must Take?
The average wages of high school graduates and non-completers have
fallen over the last two decades
The average income of those who went beyond high school has
risen
Technology and trade will separate the economy into two camps-those
with the skills to participate in the global economy and those who
lack them
If we do not make a concerted effort to move our society beyond
this boundary, we run the risk of losing our middle class
SOURCE: A Common Core Curriculum For The New Century
24. Americas Secret Sauce
A mixture of institutions, laws, and cultural norms that produce a
level of trust, innovation, and collaboration that has enabled us
to thrive for more the two centuries and constantly renew our
economy and raise our standard of living
America must continueto roll up its sleeves
educate its young people the right wayfor these times and tend to
and enrich the secrets of our sauce
SOURCE: Friedman, The World is Flat 2006