GORDON REPORT

Future Shock Has Arrived

 

The 2024 election results indicate the U.S. economy was the number-one issue. A majority of voters felt that inflation and lower paying jobs had left them behind. They believed that they lost jobs with good pay and benefits due to automation, immigrants, or unfair competition from foreign counties.

 

Yet America’s economic growth is now the highest among higher income nations. The stock market hovers around record highs. While U.S. unemployment is low, a large number of skilled jobs are vacant in many sectors of the economy. Most better-educated workers have prospered since the end of the COVID-19 pandemic. Why do so many Americans feel betrayed by the current economy?

 

Computer Technology and Change

In the 1970s the computer revolution that has transformed today’s workplaces was just beginning. In 1970 basic skilled jobs were plentiful; a high school education was the meal ticket for most into the middle class. Only about one-third were high skill jobs requiring some form of education beyond high school such as apprenticeships, or some form of post-secondary education. Public education and government programs were largely well-aligned with the needs of the labor market.

 

Information technology rapidly transformed the configuration of the world’s economies. The Fourth Industrial Revolution has overturned job market requirements. The number of basic skill jobs has radically declined. In 2024, most good paying jobs require some post-secondary education training or education.

 

Few analysts have been more prescient about the ramifications of the computer revolution than Alvin Toffler. His book, Future Shock, was published in 1970. He wrote that most people would embrace the new technologies that made their lives better, but he warned that the new tech era required more quality education for everyone.

 

Most Americans do not accept that U.S. educational systems need radical improvements. They are clinging to an outdated educational standard that fails to equip enough students with the education and skills required for 21st-century jobs and careers.

 

The U.S. high school graduation rate has improved in recent year, but only because educational standards have been lowered. In 2023 ACT scores for high school seniors were the lowest in 30 years. The average scores in reading, math, and science were all below the benchmarks that indicate whether students will have a high probability of success in completing first-year college courses. A 2020 Barbara Bush Foundation for Family Literacy Literacy/Gallup Inc survey found that 54 percent of U.S. adults aged 16 to 74 – 130 million people – lack reading proficiency, i.e., are reading below the sixth- or eighth-grade level.

 

Too many U.S. adults and those about to enter the workforce lack the educational foundation needed for high skill jobs and careers. Seventy-five percent of U.S. businesses report that they are unable to find applicants with the education and skills needed for vacant jobs. Technological advances as shown by rapid adoption of AI continue at an increasing pace. This is now the new normal. Old jobs will disappear, and new ones with different skill demands will emerge. An important way in which educational programs can prepare students in all types of programs is fostering 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 challenges. Adult workers must be prepared to embrace retraining and the possibility that they may need to reinvent themselves many times.

 

A tech-driven economy does not just change workplaces, it necessitates changes in cultural perspectives and many other components of our society. Too many Americans are being left behind economically as shown by the results of the recent election. Income inequality in the United States is very high. Getting the support needed to widely improve our educational systems will not be easy, but it is a vital step for the future health of our democracy.

Edward E. Gordon is the founder and president of Imperial Consulting Corporation in Chicago. His firm’s clients have included companies of all sizes from small businesses to Fortune 500 corporations, U.S. government agencies, state governments, and professional/trade associations. He taught in higher education for 20 years and is the author of numerous books and articles. More information on his background can be found at  www.historypresentations.com . As a professional speaker, he is available to provide customized presentations on contemporary workforce issues.