7. Larger population — An increase of 33 million
Slower growth — Primarily result of aging
population
Older population — 55+ comprise 25% of population
in 2010, 30% in 2020
More diverse population — Every race/ethnicity
grows, but share of White/non-Hispanics decreases
Changing size & composition
Source: U.S. Bureau of Labor Statistics
8. Births — Birth rate stays same, different for
racial/ethnic groups, affects size and composition of
future workforce
Deaths — Longer life expectancy due to changing
health habits and improved medicine, with some
effect on workforce
Immigration — Volatile force due to policy and event
uncertainty, immigrants likely to double, affects size
and composition of workforce — and births
Drivers — certain & uncertain
Source: U.S. Bureau of Labor Statistics
21. Affect work behavior
Baby
Boomers
Gen X
Gen Y
Digital
Natives
Born 1946 to
1964; took over
from WW II
generation
Differences
among youth
experiences of
“Tweeners” (early
60s), “Older
Boomers” (late
60s), “Younger
Boomers,” (early
70s)
23. Affect work behavior
Baby
Boomers
Gen X
Gen Y
Digital
Natives
1965-1980
1981-1995;
“Millennials”
Major
portion of
current
workers
Most of the
full-time
workforce
by 2020
26. 45%
40%
10%
5%
Percentage of Current Workforce
Baby Boomers
Gen X
Gen Y
Traditionalists
But, the structure is evolving
Source: U.S. Bureau of Labor Statistics
30. ManpowerGroup 9th Talent Shortage Survey
36%of employers globally
report talent shortages in 2014
The highest percentage in
seven years.
31. ManpowerGroup 9th Talent Shortage Survey
36%of employers globally
report talent shortages in 2014
The highest percentage in
seven years.
U.S., at 40%, slightly above global average
33. One–third of contractors concerned about skilled
trade shortages
Nearly one-half of contractors concerned about
finding experienced trade workers, especially with
>10 years experience
Six of ten concerned about loss of knowledge as
leaders retire
Six of ten concerned about loss of experience during
layoffs
One–half concerned about inadequate education
Source: McGraw-Hill Construction
39. The Workforce Gap
Where 9th graders are
headed:
◦ 28% enter college
◦ 32% get associate
degree or advanced
training
◦ 10% lack the skills or
plans needed to prepare
for work
◦ 30% will drop out before
completing high school
Source: Workforce 2020: Work & Workers in the 21 Century
40. The Workforce Gap
Where 9th graders are
headed:
◦ 28% enter college
◦ 32% get associate
degree or advanced
training
◦ 10% lack the skills or
plans needed to prepare
for work
◦ 30% will drop out before
completing high school
Where the jobs are:
◦ 20% require a college
degree
◦ 65% require an associate
degree or advanced
training
◦ 15% require minimum
skills for employment
Source: Workforce 2020: Work & Workers in the 21 Century
41. The Workforce Gap
Where 9th graders are
headed:
◦ 28% enter college
◦ 32% get associate
degree or advanced
training
◦ 10% lack the skills or
plans needed to prepare
for work
◦ 30% will drop out before
completing high school
Where the jobs are:
◦ 20% require a college
degree
◦ 65% require an associate
degree or advanced
training
◦ 15% require minimum
skills for employment
Source: Workforce 2020: Work & Workers in the 21 Century
42. The Workforce Gap
Where 9th graders are
headed:
◦ 28% enter college
◦ 32% get associate
degree or advanced
training
◦ 10% lack the skills or
plans needed to prepare
for work
◦ 30% will drop out before
completing high school
Where the jobs are:
◦ 20% require a college
degree
◦ 65% require an associate
degree or advanced
training
◦ 15% require minimum
skills for employment
Source: Workforce 2020: Work & Workers in the 21 Century
43. The Workforce Gap
Where 9th graders are
headed:
◦ 28% enter college
◦ 32% get associate
degree or advanced
training
◦ 10% lack the skills or
plans needed to prepare
for work
◦ 30% will drop out before
completing high school
Where the jobs are:
◦ 20% require a college
degree
◦ 65% require an associate
degree or advanced
training
◦ 15% require minimum
skills for employment
Source: Workforce 2020: Work & Workers in the 21 Century
44. Percentage with entry–level skills deficits
◦ 65% reading
◦ 77% math
◦ 48% speaking
Percentage with advanced skills deficits
◦ 71% ethics
◦ 54% listening
◦ 72% writing
◦ 70% work ethic
◦ 60% computer use
Entry–level & advanced skills deficits
Sources: U.S. Department of Education, National Center for Education Statistics, and National Assessment of Educational Progress
45. Percentage with entry–level skills deficits
◦ 65% reading
◦ 77% math
◦ 48% speaking
Percentage with advanced skills deficits
◦ 71% ethics
◦ 54% listening
◦ 72% writing
◦ 70% work ethic
◦ 60% computer use
Entry–level & advanced skills deficits
Sources: U.S. Department of Education, National Center for Education Statistics, and National Assessment of Educational Progress
Harvard Pathways to Progress
Study concluded, “Far too many
young people are inadequately
prepared to be successful.”
46. No One Is Interested?
6%of high school students hope to
have a future in skilled trades
Sources: A recent survey by RIDGID, a leading supplier of professional grade tools
47. No One Is Paying Attention?
6%of high school students hope to
have a future in skilled trades
Even though demand is high
Sources: A recent survey by RIDGID, a leading supplier of professional grade tools
48. 53% skilled trades do not interest them
24% not mechanically inclined
21% do not know enough about skilled trades
15% believe job opportunities are thin in skilled
trades
11% do not view skilled trades as “cool”
10% do not believe they have high tech skills
required for skilled trades
Sources: A recent survey by RIDGID, a leading supplier of professional grade tools
49. 54% believe working with computers has better
future than skilled trades
36% say that working in an office is more respected
than working with hands
25% see skilled trades jobs as “old fashioned”
Sources: A recent survey by RIDGID, a leading supplier of professional grade tools
50. Taking a career and technical education course
doubles interest in a skilled trades career
Most students who took career and technical
education courses have a realistic knowledge about
pay, flexible hours, free training, and benefits offered
in skilled trades
Students with a relative or friend in skilled trades are
about 1.5 times more likely to choose skilled trades
careers than students without these contacts
Sources: A recent survey by RIDGID, a leading supplier of professional grade tools
51. Training, certification, and career education
increased in quantity and quality, with improved
employer involvement
But skills improvement is through traditional evening
and weekend approaches, with reluctance to use
regular business hours.
52. Manpower, Inc.
“Approximately three-quarters of employers globally
cite a lack of experience, skills or knowledge as the
primary reason for the difficulty filling positions.
“However, only one in five employers is
concentrating on training and development to fill the
gap and only a mere 6 percent of employers are
working more closely with educational institutions
to create curriculums that close knowledge gaps.”
55. Safety and Health Act of 1970 — ensures safe and
sanitary work environments through inspections and
a grading scale, changes frequently
Environmental — Carbon footprint regulated by EPA
and state agencies, Environmental Compliance
Assistance Guide exists to help businesses achieve
compliance
56. Fair Labor Standards Act — Minimum wage for
workers in the United States by Wage and Hour
Division, decisions made by Division affected more
than 130 million workers as of 2010
Employee Retirements Income Security Act —
Ensures retirement plan options and health care
benefits for full-time employees
Immigration and Nationality Act — Only citizens and
people with work visas hired, I-9 eligibility required
Minimum wages, benefits, safety and health compliance, work for non-U.S. citizens, working
conditions, equal opportunity employment, and privacy regulations
58. Supply — Some provisions raise tax rates on wages
and reduce the amount of labor supplied
◦ By 2016, net reduction of 1.5% to 2% of total work hours
◦ Lower-wage workers disproportionately affected
◦ 1% reduction in labor compensation
Demand — Some provisions raise costs of labor and
reduce the amount of labor demanded
◦ Employers could reduce numbers of workers, not wages
(sticky and regulated)
◦ Employers could divide jobs, but this could be costly.
Supply & demand — “Make something more expensive, people buy less of it”
Sources: Congressional Budget Office
59. Supply — Some provisions raise tax rates on wages
and reduce the amount of labor supplied
◦ By 2016, net reduction of 1.5% to 2% total work hours
◦ Lower-wage workers disproportionately affected
◦ 1% reduction in labor compensation
Demand — Some provisions raise costs of labor and
reduce the amount of labor demanded
◦ Employers could reduce numbers of workers, not wages
(sticky and regulated)
◦ Employers could divide jobs, but this could be costly.
Supply & demand — “Make something more expensive, people buy less of it”
Sources: Congressional Budget Office
Reduces labor supply, lowering
employment slightly. Less effect
on demand for number of
workers and hours of work.