THE GORDON REPORT
from Imperial Consulting Corporation
KNOWLEDGE SHOCK Series Part 2: Education & the
Labor Market Out of Sync
The 2017 film "Hidden Figures" focuses on three
intelligent African-American women who were hired by NASA due to their advanced
mathematical attainments. Although they experienced race and gender
discrimination there, their knowledge of higher mathematics and ability to
apply this knowledge to new technologies gradually earned them both the respect
of the co-workers and career advancement. They are among the unsung heroes of
the U.S. space race.
What was the secret to their success? With the help of their
parents, they overcame significant obstacles to find the education that
fostered their innate mathematical talents, and in the course of their
education, they mastered the essential skill of "learning how to
learn."
Technology has advanced enormously since that of the 1960s
depicted in "Hidden Figures," and it has further increased the
importance of obtaining a good education. All students need to gain basic
foundations in reading and mathematics that enable them to successfully pursue
further learning. Secondly, they must seek information on professions or
occupations suited to their innate talents and pursue educational programs that
prepare them for employment in their chosen field.
KNOWLEDGE SHOCK and Education Today
Over the past four decades, technology has raised the
education bar for occupations paying a middle-class wage. The 1970s saw the
introduction of personal computers (PCs) in homes and businesses across the
United States. At that time 66 percent of all jobs required a high school education
or less, and 33 percent required some type of post-secondary education. Today
the U.S. labor market has been turned upside down by the spread of advanced
technology in workplaces. Two-thirds of occupations now require post-secondary
education, while a high school education or less is sufficient for only
one-third of jobs. The current K-12 school system lags far behind the rate of
change in the U.S. labor economy.
America's failure to grow a larger knowledge workforce has
been evident for several decades. Today because America's education system is
so drastically out of sync with the demands of a technology-driven economy, the
United States in now facing KNOWLEDGE SHOCK.
The U.S. Department of Education conducts a nation-wide
testing testing program, the National Assessment of Educational Progress
(NAEP), which administers exams to students in Grades 4, 8, and 12 generally
every two years. The results issued in the Nation's Report Card are nothing
short of alarming. In 2015, the last year for which scores are available, only
37 percent of 12th graders were proficient in reading, and the results were
only slightly higher at the other grade levels. In mathematics only 25 percent
of 12th graders tested at proficient or above, while 4th graders reached 40 percent
and 8th graders 33 percent. Moreover since 1992 when NAEP testing began, 12th
graders have declined 5 points in reading and have stayed at the same level in
math.
The NAEP scores are not alone in indicating that a
significant proportion of U.S.students do not have educational foundations that
will equip them for success in higher education or today's labor market. About
68 percent of American high school students seek college admission. Most take
either the SAT or ACT exams that are designed to assess the college
readiness of students. Not surprisingly between 1970 and 2017 overall test
scores on these exams have declined. Only about one-third of today's students
who begin a post-secondary program will complete a degree or certificate
program.
There is no magic bullet or quick fix for solving this. Many
facets of the U.S. education-to-employment system need major overhauls starting
with concerted efforts to boost literacy and numeracy in K-12 education. They
are foundation stones for learning how to learn. Because workplaces are
changing so rapidly due to globalization and information technology, lifelong
learning is essential for continued employment and career advancement. As Alvin
Toffler cogently stated: "The illiterate of the future are not those that
cannot read or write. They are those that cannot learn, unlearn, and
relearn."
Major educational reform is also needed in career
information and preparation programs. Much of the problem stems from the
isolation of the education community from employment sectors in their area.
Career exploration should begin in elementary school so students can learn
about career opportunities in their region that match their interests and
skills. However, the NAEP data indicate that it is particularly at the high
school level that American students fail to gain ground. A lack of
motivation seems a particular problem, as many students do not see the
relevance of what they are learning to their future endeavors.
To address this problem, more than 2,000 career academy high
schools are not operating nationwide, with more to come. These academy high
schools enable student to see the practical applications of their studies to a
field in which they have an interest. Career academies aim to improve student
performance, raise high-school graduation rates, and increase enrollment in
appropriate post-secondary programs including those awarding four- or two-year
degrees, or certificate or apprenticeship options.
A notable example of a successful carer academy model is located
in Santa Ana, California. High School Inc. was formed ten years ago within a
public school, Valley High School. It began with only 90 students enrolled in
six careers academies: culinary arts and hospitality, health care; automobile
logistics and transportation; new media; global business; and engineering,
manufacturing and construction. In 2014 and 2015 comparisons, students who were
in High School Inc. for at least two years had a 5.8 percent higher graduation
rate than Valley High School students who were not in one of the academies. In
a comparison of student with less than a 3.0 GPA, the High School Inc.
graduation rate was 12.2 percent higher. Over the past seven year, the
graduation rate of Valley High School has increased 18.9 percent to 88.9 percent
which is 5.7 percent higher than the average graduation rate of the state of
California. In the next academic year, all of Valley High School's 2,230
students will enroll in on the the High School Inc. academies. These results
are especially remarkable in view of the fact that Santa Ana is a working-class
community with a large Latino population, thus making English-language
proficiency a significant problem.
To be successful, career academies must involve local
businesses and organizations in a a wide variety of cooperative activities,
such as working with educators on relevant curriculums and keeping them
up-to-date, providing equipment, and sponsoring internships. High School Inc.
is a unique collaboration of the Santa Ana Chamber of Commerce, the High School
Inc. Foundation to which local businesses and other organizations contribute,
and the Santa Ana United School District.
Cross-sector partnerships like High School Inc. are based on
the "RETAIN" model as previously discussed in the Gordon Reports.
RETAINs are a way for local schools, businesses, unions, and community
organizations to break out of their silos and work together in advancing the
prosperity of a region or community. As a June 2017 Brookings report states,
"Local leaders are on the front lines of connecting job seekers to
employment opportunities and are often best-positioned to address local labor
market realities."
Focusing on Current Unemployment
The June unemployment rate reported by the Bureau of Labor
Statistics was 4.4 percent. However, the level of long-term unemployment (27
weeks or more) continues to remain higher than levels of the past 30
years.
Jobs vacancies were also higher, reaching an estimated 8.6
million nationwide. Yet over 34 million Americans aged 16 to 55 have given up
looking for work. If they were included in the unemployment calculations, the
rate would be a more accurate 18.1 percent. Many of these disengaged workers
were a key voting bloc for Donald Trump in the 2016 presidential election.
We are witnessing the continued downward spiral of America's
education-to-employment system that is so vital to increasing the nation's
supply of talent. Wages will rise as employers chase a dwindling supply of
skilled workers. The U.S. economy may also contract as employers turn to other
countries that have been more successful at creating a better educated,
21st-century workforce.
The structural and systemic meltdown of the U.S. labor
cannot be solved by monetary policy alone. Nor will it be solved by a national
industrial policy. The current unemployment statistics reinforce the urgency of
addressing KNOWLEDGE SHOCK through greatly expanding education reforms based on
the cooperative RETAIN model. RETAINS offer viable regional solutions that can
help rebuild our education-to-employment pipeline, improve the skills of the
American workforce, and increase future productivity, performance, and profits.
Edward
E. Gordon is president and founder of Imperial Consulting Corporation (www.imperialcorp.com). His book, Future Jobs: Solving the Employment and
Skills Crisis,
is a 2015 Independent Publishers Award winner.