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Remarks Prepared for Delivery by
U.S. Secretary of Labor Elaine L. Chao
Paducah Area Chamber of Commerce Breakfast
Paducah, Kentucky
Thursday, October 4, 2007
Thank you, Phil [McIntosh, Chair of the Board, Paducah Area Chamber of Commerce].
Welcome, everyone. It is great to be home in Kentucky — and it is wonderful to be here in Paducah for a visit! Yesterday, I had an opportunity to tour parts of the River Heritage Museum, the Quilt Museum, and the Seamen's Church Institute's simulator-training facilities. I had a great time — these places are a wonderful part of what makes Paducah so special.
Thank you for inviting me to be a part of your "Power in Partnership" breakfast series. I understand this is the 11th anniversary of the Business Education Partnership. Congratulations on 11 years of leadership on behalf of Paducah!
This morning, let me share some thoughts on the state of the US economy and how we can work together to ensure the competitiveness of America's workers.
Today, despite challenges in the housing and financial credit markets, the fundamentals of our nation's economy are still healthy. GDP grew by 3.8 percent in the 2nd Quarter, driven in part by increasing U.S. exports. And even with the numerous headwinds our economy is facing, most economists expect growth to continue.
Unemployment nationally remains near historic lows and employment in Paducah is improving, as well. That's especially true when employment in the U.S. is compared with that of other major industrialized nations. Over the past few years, for example, France and Germany have unemployment rates that have averaged nearly twice that of the U.S. And our economy has created more than 8.2 million new jobs since August 2003, more than the EU and Japan combined.
And the United Nation's International Labor Organization, the ILO, recently issued a report that named U.S. workers as the most productive in the world. The productivity of our workers is reflected in the fact that since January 2001, real after-tax personal income has risen 12.5 percent.
But as we all know, there are challenges ahead. Our economy is increasingly part of the worldwide economy. And our nation is transitioning to a knowledge-based economy, as well. Two-thirds of the new jobs created over the decade will require some kind of post-secondary education or training. By definition, these jobs pay above average wages because employers are paying a premium for workers with skills that are in demand.
So, more than ever before, education, training, and re-training are the keys to future employment and earnings. Let me share with you a few examples of how education impacts wages:
Today, high school dropouts average about $522 per week for full-time work and their unemployment rate is about 6.7 percent.
Workers with a high school diploma average $704 weekly and have a 4.3 percent unemployment rate.
And workers with some college or an associate's degrees average about $846 per week and their unemployment rate is 3.7 percent.
But workers with a bachelor's degree or higher average $1,393 per week and have an unemployment rate of 2 percent.
So post-secondary education really pays off!
But at the same time that education is becoming more important, our country is facing a skills gap. That's the mismatch between the skills of some in our workforce and the skills needed for jobs in growing sectors of the economy. If our country is to remain competitive, we must ensure that our workforce has access to the education and training they need to continually update their skills.
The competitiveness of our workforce is a major priority of this Administration and the Labor Department. That's why in 2003, the Labor Department launched a series of initiatives to expand workers' access to post-secondary education and training. The first initiative identifies the sectors of the economy that are growing and the skills needed to access these opportunities. The second expands the capacity of community colleges and other education providers to offer relevant job training to workers.
Let me note that these initiatives were specifically designed to solicit the input of employers so that worker training and education is relevant and prepares workers for real jobs in the real world. And the Department chose community colleges as a centerpiece of these initiatives because they are affordable, accessible, and have close connections to local labor markets. They are perfectly positioned to prepare workers for high-growth occupations.
To date, 156 grants totaling over $288 million have been awarded nationwide to expand training for careers in high growth sectors of the economy. Here are two examples in the Commonwealth: The Kentucky Community and Technical College system was awarded nearly $2.5 million to train workers for careers in advanced manufacturing. And the West Kentucky Workforce Investment Board and the Pennyrile Area Development District received over $3 million to strengthen training for workers in the mining industry.
Let me mention one more initiative that is especially important for regional economies. Over the last several years, it has become clear that for economic development to be successful, it must be centered at the regional level. To address this challenge, the Department launched Workforce Innovation in Regional Economic Development, or WIRED. The WIRED initiative provides the seed capital to bring together all the key players at the local and regional level to develop an economic development strategy centered around talent and skills development. That's key because employers are telling us that the availability of a skilled workforce is a critical factor in the decision to locate in a community. WIRED is so popular that the Department was swamped with proposals, of which Paducah's was one. We couldn't award one to everyone, so I hope you wont' be discouraged and that you will try again next year.
Also, last week, the Labor Department's Occupational Safety and Health Administration awarded a grant of $128,557 to the West Kentucky Community & Technical College to provide influenza pandemic training in English and Spanish to small businesses in several Kentucky counties.
Here in Paducah, you have a deep appreciation of the critical role that education and training play in building a strong and competitive workforce. So let me commend the Business Education Partnership network for developing collaborative partnerships that are showing great results. And let me also recognize the great work being done by Sheila Clark, Director of the West Kentucky Workforce Investment Board and the staff at the local Paducah Career Center.
Finally, let me mention another issue that is close to the hearts of everyone in Paducah — ensuring that energy workers whose health was affected by their employment are compensated fully, fairly and as quickly as possible. Employees Occupational Illness Compensation Program Act — EEOICPA — was assigned to the Department of Labor late in 2000. When I became Secretary of Labor in January 2001, we only had 5 months to get the implementing regulations published. I am proud to say that we met that deadline and I was able to present the first EEOICPA benefits check to Clara Harding on August 9, 2001. Since then, the Department has issued more than $405 million in EEOICPA benefits to more than 3,000 Paducah workers and their families.
Over the past six years, the staff at Resource Center here in Paducah has done everything possible to identify potential beneficiaries and help them file their claims. And they've received great assistance from the EEOICPA staff in Jacksonville and Washington. Senator Mitch McConnell, Senator Jim Bunning, and Congressman Ed Whitfield have also been extremely supportive of the effort to bring benefits to eligible recipients here in Paducah.
This is not just a matter of numbers. Time and again our resource center and Federal staff have gone the extra mile to ensure that we do the right thing. Just last week, for example, the resource center manager went to Lourdes Hospital to help a terminally ill patient update his claim. She alerted the Jacksonville district office to the urgency of his case. Several area homes have been saved from foreclosure, and more than a few widows' homes rescued from disrepair, by the timely receipt of an EEOICPA check.
DOL continues to work every day to ensure that Paducah families' cases are fully and fairly considered, and that benefits are delivered as quickly as possible to all who are eligible. We recognize there have been problems with this program. And we've urged the other agencies that have statutory duties under EEOICPA — especially NIOSH — to address these issues as quickly as possible, because it is imperative that affected workers and their families receive the help and benefits they deserve.
Workers are the backbone of America's economy. America's economy is strong because America's workforce is among the most innovative and productive in the world. As I've said many times before — America is a beacon of hope and opportunity throughout the world and we shouldn't fear the worldwide economy. America's greatest strengths lie in our democratic institutions, respect for the rule of law, transparency, accountability, and the most creative and compassionate workforce in the world. These unique qualities comprise our country's strongest competitive advantage.
By working together, we can continue to ensure that workers in Paducah have access to the education and training they need to access growing opportunities.
So thank you again, for inviting me to spend time with you. And thank you for everything you are doing to create opportunity and keep Paducah, Kentucky and our nation strong.
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