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Remarks Prepared for Delivery by
U.S. Secretary of Labor Elaine L. Chao
Capitol Connection Forum
Louisville, Kentucky
Friday, August 12, 2005
Thank you, Kerry [Herbine].
You should all thank Jason Underwood, the Vice President for Government
Affairs at Greater Louisville Inc.; Larry Kissner, President and CEO of UnitedHealthcare
of Kentucky; Louis Straub, III, Senior Vice President of Chase Bank; and
of course, Kerry Herbine, General Manager, Nextel Partners, for their help
with this event.
It's always great to be home in Louisville and to see so many good friends
here. I bring you greetings from my husband, Mitch McConnell, who is doing
a great job for Kentucky as Assistant Majority Leader of the U.S. Senate.
I know you are as excited as I am about the $38 million in funding he just
announced for the 21st Century of Parks Project.
Today, I'd like to give you an overview of where the national job situation
is heading, and highlight the sectors where job growth is expected. And I'd
also like to share with you some of the things President George W. Bush and
his Administration are doing to help workers in Kentucky.
Overall, our nation's economic growth and job creation continue to strengthen.
The national unemployment rate is 5 percent—which is lower than the average
of the 1990s at 5.7 percent. Real GDP growth in the first half
of 2005 was 3.6 percent, outpacing forecasts. And almost 4 million net new
jobs have been created nationally since May 2003. This steady growth is all
the more remarkable because oil prices are so high.
As industries grow and create more jobs, it is clear that workforce flexibility
is critical to economic development. Today, the world is much different than
even a decade ago. Technology has increased both the rate and intensity of
change. The economic strategies of the past, which have tended to emphasize
a competitive advantage in one specific area, are obsolete. Successful
economic strategies of the 21st century will focus on the ability to constantly
evolve and adapt to change.
Fortunately, the ability to constantly evolve and change is one of the greatest
strengths of our nation. Today, there are 149 million people in our nation's
workforce. Every year, approximately 50 million people leave their jobs.
And approximately 50 million people find new jobs. That means one-third of
our entire workforce turns over each year because of new opportunities. And
the average American worker has had nine jobs by the time he or she is 34
years old because of new opportunities. The fact that our society can generate
this level and pace of change is a tribute to the dynamism and flexibility
of our workforce. And it's one of the major reasons why our nation has been
able to sustain job growth and a high standard of living for our workers.
It's important to note that many of the new jobs being created, however,
require more education and higher skills. I see workers looking for jobs.
But employers tell me they have a hard time finding workers with the right
skills for the jobs they have available. Our country is facing a skills gap.
Some of the areas where new jobs are being created include biotechnology,
nanotechnology, geospatial technology, health care, financial services and
the skilled trades. In health care alone, there is a tremendous shortage
of skilled workers. For example, by 2012, our country will need more than
3.4 million new health-care workers, ranging from physicians to phlebotomists.
And more than 1 million new registered nurses are needed in the next seven
years.
With the historically low interest rates, the construction industry is also
booming. But the construction industry is only able to hire about 65 percent
of the workers they need. Our country also faces a shortage of plumbers,
electricians and other members of the skilled trades. These new, high paying
jobs that are being created require workers with higher skill levels and
more education.
That's why President George W. Bush has launched several initiatives to
help workers upgrade their skills and access these new opportunities. The
President's High Growth Job Training Initiative identifies sectors of the
economy that are growing rapidly. Through this initiative, employers are
included in community job development efforts. Understanding the need for
skilled workers is essential to effective planning of future workforce training
needs. And the workforce development system is identifying how the system
can help address those needs, so workers can get the skills required for
these jobs.
As part of the President's program, the Department has already awarded $204
million to foster public-private partnerships that will help workers train
for jobs in high-growth fields. In fact, Kentucky has been awarded more than
$6 million under the President's High Growth Job Training Initiative.
In addition, last year, Kentucky received $193 million from the U.S. Department
of Labor for employment and training services.
Another important initiative is the President's $250 million Community-based
Job Training Grants. This initiative can help expand the capacity of your
community colleges, and other education providers, to train workers with
skills in demand. A skilled workforce is a great economic development tool.
This Administration recognizes that community colleges are on the front lines
of preparing workers for the new jobs and challenges of the 21st century
economy.
The President has also proposed reforms to bring the $10.5 billion, publicly
funded workforce training system into the 21st century. These are your tax
dollars at work and you should know how your tax dollars are used. This workforce
training system includes a network of more than 3,500 One-Stop Career Centers—there
are more than 150 of these centers right here in Kentucky. Employers can
find workers at these centers and workers can access skills training, job
leads and many other support services. These centers are called different
names in Kentucky , including job centers, career centers or KentuckianaWorks!
But the President has the same goal for all of them-- to ensure that the
training provided through this system is relevant, so workers can get a real
job.
In a workforce of about 149 million, about 300,000 American jobs have been
moved offshore. The President and I care about every dislocated worker. There
are also nearly 22-27 million Americans work for subsidiaries of foreign
corporations and other companies that depend upon trade. We've seen that
right here in Kentucky, where Toyota built a $4 billion, state-of-the-art
manufacturing complex that created 20,000 new jobs. To isolate ourselves
from the world economy would be to invite retaliation that would threaten
the jobs of these workers.
And that's why the President will continue to pursue free and fair trade
agreements, like CAFTA, which will create more good paying jobs here at home.
He recognizes that export-related jobs, for example, pay 13-18 percent more
than the national average.
We all recognize, however, that workers in older industries are undergoing
transitions and need our help. It's important for
these workers to know that our country offers generous, compassionate assistance
programs to help them get back on their feet. In fact, there are 31 different
government assistance programs totaling $23 billion. If a worker loses his
or her job because of trade, here is what is available to him or her through
the Department of Labor:
- 104 weeks of unemployment insurance;
- 104 weeks of job training;
- 104 weeks of direct income support such
as assistance in paying for child care and other support services
including transportation, training related tools and moving expenses;
- Help in paying 65% of qualified health insurance premiums; and,
- If
over age 55 and they get a new job that pays less than their old one,
the government will pay 50% of the difference up to $10,000.
Our longer term challenge, however, is to help reconnect workers to the
labor force as quickly as possible. Research and experience confirm that
the longer workers stay out of the labor force, the harder it is to reconnect
them to the workforce. Technology is simply changing too fast.
That's why government policies and programs as well as employers—at every
level—must encourage workers to continually upgrade their skills. This is
the key for every worker in building a successful career path in the 21st
century workforce.
Recently, I attended a G-8 Labor Ministers conference in London. It was
clear during this meeting, that America's economy is the envy of the world's
most advanced, industrialized nations. In Germany and France, for example,
the unemployment rate is higher than 10 percent. Long-term unemployment in
those countries is double that of the U.S. and job growth has been stagnant
for years. The United States continues to set the pace for growth among industrialized
nations because of our flexible labor market, skilled workforce and willingness
to adapt and evolve.
But most of all, the competitive advantage of the United States lies in
our freedom, democratic institutions, the rule of law and our transparency.
When you combine our nation's cultural bias in favor of individual achievement
with freedom, transparent institutions and the rule of law, the result is
a powerful engine for growth and job creation.
So, thank you for inviting me here today. And thank you for everything you
are doing to bring hope and opportunity to the Louisville community and the
Commonwealth of Kentucky.
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