Emily Stover DeRocco Speech
Workforce Innovations Opening Remarks
Philadelphia, PA
July 11, 2005
Good afternoon! It is great to be back at Workforce Innovations and back in my home state of Pennsylvania. And it is nice be amongst so many friends and familiar faces. We have an important and exciting two-and-a-half days ahead of us.
And to all the ETA staff watching this back in Washington, thank you for all your hard work and for taking care of the office while I'm gone.
Our nation is now at a critical juncture. The relative comfort and stasis of the late 20th century has been replaced by a dynamic and real-time 21 st century. A global economy is now a reality and competition is coming to all industries from all corners of the world.
The biggest change has come from the Far East . Half the world's population is now centered in this area of the globe and advances in communication, travel, and trade have unleashed this human capital onto the world market.
One of the first to feel the effects of this was American manufacturing. The new availability of cheap labor forced a fundamental transformation, changing the goods we produce and the way we produce them. Though painful for many companies and workers alike, this transformation has left American manufacturing stronger than ever and in a desperate search for qualified workers.
The emergence of half the world's population into the global marketplace and the industrial growth that has resulted produced a ripple effect that is now being felt by other industries. For instance, over the last 25 years, the energy industry has been basically static. The world has pumped the same number of barrels of oil, refined the same amount of gasoline, built virtually no new reactors, and mined nearly the same amount of coal.
Then, almost overnight, 3 billion more people required a constant supply of energy. This new demand, coupled with the instability found in OPEC countries, has disrupted the economic balance of the energy industry and left us with $2.50 gasoline and an insecure energy future. The government and the energy industry are now addressing this issue, transforming a static industry into a dynamic, growing industry requiring thousands of new jobs.
And these have just been the early effects of globalization. We are now in what could be considered globalization version 2.0. In this new version, it is not just low-wage, low-skill production jobs that are faced with stiff competition. Terms like “off-shoring” have entered our lexicon and we are more conscious of things like “call centers” and “back-office operations.” Experience in these areas has convinced foreign countries that they can compete in the service sector as well.
While these developments have created stress points in the U.S. economy and the U.S. labor market, they do not fundamentally challenge or threaten our leadership of the world economy. It is the talent and creativity and ingenuity of American workers that has kept us out in front, sparking the innovation that continues to create new and better jobs.
There are both internal and external signs though, that indicate our lead in innovation may be at risk.
The commitment of Asian countries to education combined with the enormity of 3 billion people has created a situation where:
- Over 2 times as many engineering and science degrees were produced in Asia compared to the U.S.
- India has increased its college enrollment by 92 percent in the last 10 years
- Over one-third of all bachelor's degrees in China were in engineering – compared to 6 percent in the U.S.
These figures are a natural result of Asian countries' entry into the global economy. Indeed, combined with a strong and continued commitment to U.S. education and training, these developments could lead to tremendous advances to the benefit of all.
Unfortunately, it is the U.S. commitment to, and focus on, education that is lacking. Many of you know the statistics, but they are still worth mentioning:
- Under 70% of high school freshmen graduate on time, and under half of them are considered ready for college.
- It is no surprise then that only about a third of high school students go on to get a college degree.
To reverse this education trend and ensure a prepared workforce, we must first recognize the problem. We continue to view education and employment as two separate and distinct parts of your life. You go to school to get an education, then go into the workforce and learn how to do your job.
This was sufficient at a time when companies had the luxury of 3 or 6 month training programs and a high school education was enough to get you in the door. That world no longer exists.
Today, the success of our workforce, and our economy, depends upon a continuum of education. It requires an integrated, strategic approach that prepares individuals to succeed in the workplace, no matter how old they are or how much experience they already have.
Our community colleges have been leaders in this integrated approach, constantly working with area businesses and economic development agencies to understand the local economic needs.
But they cannot do it themselves, we need an engaged education system and an engaged workforce system along with committed employers and economic development officials to successfully confront our internal challenges and maintain our leadership of the world economy.
We also must the reform the systems and structures that were built to support a by-gone economy, empowering them to partner in this integrated approach, rather than restricting them with archaic rules and regulations.
We have tried to assemble strong examples of these integrated strategies to showcase for you this week. We also have leaders from the manufacturing and energy industries to share with you their experiences. And finally, we are extremely fortunate to have the country's leading authority on the innovation economy joining us a little later this afternoon.
But first, we want to begin with the star of the show. It continues to be a pleasure and an honor for me to introduce our Secretary of Labor. Her visit at Workforce Innovations raises the value of the Conference for each of us and provides us the opportunity to hear about her concerns and visions.
Secretary Chao has dedicated herself to inspiring and protecting the hardworking people of America. Her compassionate nature stems from her own background as an immigrant to this country at the age of eight. Her family's experience transitioning to a new country inspired her to dedicate most of her professional life to ensuring that people have the opportunity to pursue lives of dignity and financial independence.
I suppose it is customary to recite the biography of a Secretary – the offices held and education attained –
And Elaine Chao's is a record of very distinguished service and hard won successes as –Director of the Peace Corps, CEO of United Way and Deputy Secretary of Transportation prior to being sworn in as the nation's 24th Secretary of Labor in January 2001.
From day-one of her administration she committed to plans that held a promise for every American worker to have the opportunity for a fulfilling and financially rewarding career and to make sure that no worker was left behind – or left out of the potential rewards from a dynamic, global economy.
And over the past four years, her plans, her vision – and her recognition of your role in serving America 's workers has led to a stronger, demand-driven system that is better positioned to understand and respond to the needs for more highly skilled, better educated workers in the 21 st century.
It is a pleasure and an honor to serve the President as her Assistant Secretary of Labor.
Please welcome my boss, our colleague and a friend of America 's workforce: Secretary Elaine L. Chao.
