|
 Printer-Friendly Version
Remarks Delivered by
U.S. Secretary of Labor
Elaine L. Chao
Louisville Rotary Club
Louisville, Kentucky
Thursday, October 19, 2006
Thank you, Woody [Northrup, President, Louisville Rotary Club and
husband of Rep. Anne Northrup] for your kind introduction. As many of you
know, Woody's wife, Representative Anne Northrup is doing a great job for the
people of Kentucky.
Anne is the most courageous, principled and effective representative
the 3rd District has ever had! She's always working for her constituents. And,
due to her seniority on the appropriations committee, she's made sure that
Louisvillians have the needed federal resources to make our community a better
place to live. The new Louisville VA hospital, the $10 million for the
Waterfront Park, and getting the Ohio River Bridges Project back on track are
just a few of her accomplishments on behalf of Louisville.
Thanks for inviting me to be with you today. This is a very prestigious
organization and I'm delighted to be here with you.
Today, I'd like to talk about the state of America's economy, the
competitiveness of the American workforce, my recent meeting with the G-8 Labor
Ministers and my trip to Riga, Latvia.
The mission of the Department of Labor is to promote and protect the
health, safety, retirement security and competitiveness of our nation's
workforce. The Department represents the interests of the entire workforce
— organized and unorganized. Organized labor represents about 12.4 percent
of the entire workforce and about 7.8 percent of the private sector workforce.
Our country has grown 4.1 percent so far in 2006, which is better than
any other major industrialized nation. America has seen 37 straight months of
job creation. Over 6.6 million net new jobs have been created in the last three
years, more than Europe and Japan combined. The national unemployment rate is
4.6 percent — a full percentage point lower than the 5.7 percent
unemployment rate in the decade of the 1990s. By contrast, Germany and France
have unemployment rates close to 9 percent, and long-term unemployment rates
triple that of the U.S.
I know it must not be a surprise to people in this room that over the
past several years, 65 percent of the new jobs in the U.S. were created by
small businesses with fewer than 500 employees.
Our country is transitioning to a knowledge-based economy. Millions of
new jobs are being created in industries that did not even exist a generation
ago. These industries provide high-value, high-paying jobs and require workers
with higher skills and more education.
Today, more than ever before, education, training and retraining are
the keys to future earnings. Nearly two-thirds of the estimated 18 million new
jobs created in the next 10 years will be in occupations that require some kind
of post-secondary education.
In fact, there is a direct link between education and both employment
and median lifetime earnings:
- High school dropouts have an 8.5 percent unemployment rate and earn
about $479 per week;
- High school graduates have a 5 percent unemployment rate and earn
about $660 per week;
- 2-year degree holders have a 3.7 percent unemployment rate and earn
about $812 per week; and
- Those with a 4-year degree or higher have a 2.7 percent unemployment
rate and earn about $1,243 per week.
So accessing higher education and training is crucial. We must urge our
young people to finish their education!
The federal government spends over $23 billion annually on worker
training. The Commonwealth of Kentucky receives over $218 million a year from
the U.S. Department of Labor for employment, training and unemployment
services. In addition, since 2001, the Department has provided the Commonwealth
over $20.9 million in National Emergency Grants to provide job training and
assistance to workers impacted by trade and plant closings.
And there are 32 "One-Stop Career Centers" to help dislocated workers
access transitional assistance, access job training and find new jobs. This is
a nationwide network of 3,500 publicly-funded employment offices funded with
your tax dollars to help unemployed and dislocated workers find work and
ancillary services.
This Administration recognizes that in order to remain competitive, our
country must remain a leader in innovation. That's why President George W. Bush
proposed the American Competitiveness Initiative in
his 2005 State of the Union address. It is directly aimed at developing the
talent and technology that will keep our country on the leading edge of the new
knowledge-based economy.
The initiative proposes to spend $136 billion over the next decade to:
- Strengthen U.S. education in math and the sciences;
- Encourage entrepreneurship and innovation; and
- Boost research and development.
It will make sure our children have the skills to do the jobs of the
future.
This is where our Commonwealth's future lies, as well. And Kentucky is
developing a strong educational network and research foundation to strengthen
economic growth. Universities are a critical part of any regional economic
development plan. They are centers of innovation, which create the new products
and services that create new jobs. The University of Louisville is a wonderful
example. It is becoming a world class center for medical research, especially
for cancer.
Our country's record in creating new jobs is the envy of the world. I
was in Moscow for the annual meeting of the G-8 Labor Ministers. In addition to
speaking at the G-8 Conference, and sharing our country's strategy for creating
new jobs, I had the opportunity to speak to a group of Russian reformers at a
Moscow think tank. They are hungry for new ideas, but unsure of which strategy
is best to help their country move forward.
Russia's economy is growing, largely because of high energy prices.
Russia is the world's number one exporter of natural gas, and the number two
exporter of oil. The energy sector provides one-fifth of the country's economic
growth, but only 1 percent of its jobs. The economy is not diversified, so
workers in many parts of the country are struggling with very high unemployment
and have little hope for a better future. There is a good education system, but
few opportunities for even highly-educated scientists and engineers.
Unfortunately, crony capitalism, intimidation of independent institutions like
the press, and the lack of transparent financial institutions are hindering
progress.
After the G-8 in Moscow, I visited Latvia. As many of you know, the
U.S. Ambassador to Latvia is a fellow Kentuckian — Cathy Bailey — who
is doing a terrific job representing our country. Latvia is a very strong ally
of the United States in the War on Terror. The President is a woman, one of
many Latvians whose families were forced to flee their country when it was
occupied first by the Soviets, then by the Germans, and then again by the
Soviet Union in the 20th century.
The Museum of Occupation is a must for any visit to Latvia. It tells
the horrifying story of the suffering and terror that Latvians experienced
during these terrible occupations. Tens of thousands of people in this small
country were killed or deported to Siberia.
It is to our country's credit that throughout this entire era, we never
recognized the illegal occupation of the Baltic nations by the Soviet Union.
The Latvians are grateful for this, and are true friends of the United States.
Our country supported Latvia's recent membership in the EU and in NATO —
giant steps for this small country.
Latvia's leaders and its people are eager to show the world their
strong commitment to freedom and democracy. In fact, I arrived in Riga just a
few days after their elections — nearly two-thirds of eligible voters
participated. For them, democracy is not an abstract concept — it is a
cherished birthright that previous generations sacrificed and died for. I could
not help but remember the President's observation that the survival of liberty
in our land increasingly depends on the success of liberty in other lands. And
that the best hope for peace in our world is the expansion of freedom in all
the world.
The visit to Russia and Latvia reminds us just how precious our freedom
is, and how fortunate we are to live in a free Commonwealth and a free country.
And they underscored, once again, the true competitive advantages of the United
States — the rule of law, transparent and accountable institutions, and a
culture of freedom that rewards individual initiative and achievement.
We have many challenges, but because our country is free, it is able to
meet challenges head on and continuously improve.
God bless you and God bless America.
# # #
| 
