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Remarks Prepared for Delivery by
U.S. Secretary of Labor Elaine L. Chao
International Women's Day and Women's Month Celebration
The White House, Washington, D.C.
Thursday, March 8, 2007
Good morning! It is great to be in a roomful of women!
Let me add my welcome and congratulations to those of Secretary Rice and Undersecretary Dobriansky.
This morning I'd like to share some thoughts on the state of the U.S. economy, and a discussion of the American workforce, and opportunities for women in America.
Today, America's economy is healthy and resilient. It is one of the fastest growing among the large industrialized nations, with a 3.1 percent GDP growth rate in 2006. Last week, we saw the rippling effects of the growing integration of the worldwide economy and the strong resiliency of United States financial markets and economy.
Our country's unemployment rate remains low at 4.6 percent. That's more than a full percentage point lower than the average 5.7 percent unemployment rate of the 1990s. You can contrast this with Europe, where two countries, in particular — France and Germany — have unemployment rates near 9 percent. And their long term unemployment is three times higher than the United States.
Our economy has created 7.4 million new jobs since August 2003. Our economy produced 7.4 million new jobs since August 2003. That's more jobs than the European Union and Japan combined have created. Furthermore, the latest revisions to the payroll employment survey show that our country actually created one million more jobs over the past two years than had previously been estimated.
America's workers are among the most productive of any major industrialized economy. And strong productivity growth in recent years is translating into higher wages and a higher standard of living. Real wages for workers increased 2.1 percent over the past 12 months. That's an extra $1,244 of new purchasing power for the typical family of four with two wage earners. And overall compensation, including both wages and benefits, has increased 3 percent over the past 12 months.
America's workforce is also characterized by its flexibility and mobility. That's important because our country is transitioning to a knowledge-based economy.
But our country today does face a skills gap. Two-thirds of all the new jobs being created require higher skills and more education. By definition, these jobs pay above average wages. But workers will require postsecondary education to access these opportunities. This means that workers with higher skills and educational levels are more in demand. Therefore the wages of these higher skilled workers have risen much more quickly than those of lower-skilled and less educated workers.
America needs more skilled workers. Over the decade ending 2014, for example, the U.S. will need over three million healthcare providers and technical specialists, including physicians, therapists, and over 1.2 million registered nurses. There will also be over three and a half million job openings in the education, training, and library occupations fields. Education, training, and retraining are the keys to future earnings.
In fact, here are just a few examples of the link between education, employment, and earnings:
- Workers who drop out of high school average $494 per week and this group of workers has an unemployment rate of about 6.8 percent.
- Workers with a high school diploma average $726 weekly and this group of workers has a 4.2 percent unemployment rate.
- Workers with an associate's degree average $826 per week, and this group of workers has an unemployment rate of 3.8 percent.
- But workers with a bachelor's degree or higher average $1,344 per week for full-time work, and this group of workers has a 2.1 percent unemployment rate.
Overall, the best way to build a brighter future is not through bigger, more expensive government programs, but by empowering the individual. That's what the President's ownership society is all about.
The President has given us a roadmap to help us carry out this important mission. That roadmap is the ownership society. When workers have ownership over their skills, education, pensions, and health insurance, they are empowered. They can face the future with greater confidence. That's the overarching principle behind nearly every major proposal and reform put forward by the Department of Labor in this Administration. These include pension reform, job training reforms, Association Health Plans, updating workplace rules and regulations, union transparency reforms, and many others.
We have a workforce of over 150 million. And every year over 50 million workers change jobs usually for better opportunities.
Each year, the federal government spends nearly $15 billion on worker training and employment services. The Labor Department administers nearly $10 billion of this amount. The Department of Education spends the rest. And the private sector spends much more.
And women are well-positioned to benefit from this trend. While there are many reasons why women are succeeding in today's workforce, one of the key reasons is that we appreciate the importance of education.
Today, American women complete high school at higher rates than men. They are more likely to enter and graduate from college than men. In fact, the number of women holding a bachelor's degree or higher has more than doubled in the past 20 years. And just look at how far women are advancing in the professions. Recent estimates show that:
- Almost half of all medical school students are women,
- Nearly 38 percent of all MBA students are women,
- And nearly 48 percent of all law school students are women.
And a look down the road shows that women are positioning themselves for even greater gains over the next twenty years. Last year, women comprised more than half of all advanced degree holders under the age of 40. So it's no surprise that the unemployment rate for women is slightly lower than men.
Women today are contributing to America's economy in so many ways. Women-owned businesses are growing at twice the rate of businesses owned by men. And small businesses are very important to workers and to the U.S. economy. Two-thirds of the new jobs created in this country in the last decade have been created by small businesses.
And women are playing an increasingly important role in public life. Over the past six years, President George W. Bush has appointed a record number of women to high level positions in his Administration, including five women to his current Cabinet. Today, the U.S. Senate has 16 women and the U.S. House of Representatives has 71 women. And to date, women have been elected statewide to executive offices in 49 out of our nation's 50 states. And there are 1,734 women state legislators.
This Administration supports many initiatives to help women succeed and balance work and family life. All of us have something in common, regardless of which position we hold. In any survey of working women, one of the most sought-after benefits is time: time to care for a child, or a loved one, or other important family matters. That's why this Administration supports comp or compensatory time, and flex time, enabling flexible working hours arrangements. Currently, federal government workers have the option to choose, on a voluntary basis, comp time instead of paid annual leave. And flex time is also available. This Administration would like to extend these options on a voluntarily basis to workers in the private sector.
And the Labor Department has created other programs to help women balance work and family life. The Department has a special mentorship project, Flex-Options for Women, which helps employers create and strengthen workplace flexibility policies.
Many women also leave the workforce for extended periods to care for family and then return to the workplace. So the Department's Working Women in Transition project was created. It assists women in finding employment, helps them develop strategies to increase their earnings and identifies education and training opportunities in high growth sectors of the economy.
As we talk about women in the workplace, let's not forget that women working at home are making equally important contributions to our society. And the fact that American women have the option to make this choice is a positive reflection on our economy, not a negative one. As this audience knows all too well, in many countries in the world, women — and great numbers of children, as well — are forced to work because they have no other choice.
Women have come a long way in our society. And the future holds even greater promise, as women position themselves for success through education and lifelong learning. Americans are living longer and healthier lives. And after retiring, many Americans are choosing to re-enter the workplace on a part time basis, or do volunteer work. So our country offers many opportunities in all phases of life. Women are key to making our quality of life better.
Thank you for everything you are doing to advance the rights of women in throughout the world.
I look forward to your questions.
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