Speeches by Secretary Elaine L. Chao

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Remarks Delivered by
U.S. Secretary of Labor Elaine L. Chao
Southern Women in Public Service Conference
Nashville, Tennessee
Monday, May 8, 2006

I want to thank Representative Harwell [State Representative Beth Harwell, R-TN] for that introduction.

I am so pleased to be with you today, to share some thoughts about our economy and the progress that women have made in our country. It is always inspiring to talk with women like you, who are doing so much to serve your communities and our country.

28 years ago, women in decision-making positions in Washington were not as numerous as they are today. There were only about 100 women in senior positions in the federal government. Isn't that amazing?

Today, there are more than 4,000 women at the highest levels of government. Women have made tremendous progress. But there is still more work to do. I'm proud to work for a President who recognizes, appreciates and promotes talented, accomplished women. He appointed the first woman Secretary of the Interior, the first African-American woman to serve as Secretary of State and the first Asian Pacific American woman to serve in the Cabinet in U.S. history.

And as you have heard, I'm very proud of the fact that at the Department of Labor, half of our senior leadership team is comprised of women. That's an all-time high and the best record, I believe, in government.

These milestones are a reflection of the advances that women have made in the past 50 years.

In 1948, women were less than one-third of the U.S. workforce. Today, we are close to half the workforce. And we're not stuck in the bottom half. Women are increasingly assuming top management positions in business and their participation in the professions is exploding. Women-owned businesses are growing at twice the national average. The driver behind these numbers is the fact that women are accessing education, especially higher education, in unprecedented numbers.

Today, American women complete high school at higher rates than men. And they are more likely to enter and graduate from college than men. In fact, half of our college graduates today are women. Nearly half of all law school graduates, 44 percent of all medical school graduates and nearly 40 percent of all MBA holders are women. And let's not forget community colleges, which provide valuable, marketable skills training. 60 percent of all associate degrees today are awarded to women.

A look down the road reveals that women are positioning themselves for even greater gains over the next 20 years.

For example, last year women comprised more than half of all advanced degree holders under the age of 40.

The fact that women "get it" when it comes to education has translated into substantial increases in their earnings relative to men.

From 1979 to 2004, women's earnings as a percent of men's increased by 18 percentage points — up from 62 to 80 percent. The difference is narrowing. There is always room for improvement. But part of the differential is related to the fact that many women work part time — or interrupt their careers — in order to take care of their families.

The fact that American women can make this choice is a positive reflection on our economy, not a negative one. In many countries in the world, women — and great numbers of children, as well — are forced to work because they have no other choice.

Today, I would like to share some thoughts about the strength of our economy, which has provided such unprecedented choice and opportunity for so many women. And then I'd like to share with you some thoughts about one of the most important challenges facing our workforce today — the skills gap.

First, let me start by giving you a snapshot of our country's economic progress. 2006 is off to a great start. The GDP growth rate for the first quarter is 4.8 percent. That's the fastest growth rate in two-and-a-half-years.

And the United States finished 2005 with an average annual GDP growth rate of 3.5 percent — better than any other major G-7 industrialized nation.

We've seen 32 months of uninterrupted job growth with approximately 5.3 million net new jobs created in the U.S. since August 2003. That's more than Europe and Japan combined.

And the national unemployment rate remains low at 4.7 percent, which is below the 5.7 percent average unemployment rate of the decade of the 1990s. Contrast this with Germany and France, which have persistent unemployment rates nearing 10 percent! While our college graduates face the best jobs market since 2001, students in France are taking to the streets, in part, because of a lack of opportunity.

Demand for workers is especially high in the business, computer, engineering, education and health-care fields. In fact, our country will need more than 3 million new workers in the health-care sector, including 1.2 million registered nurses in the next 10 years. Other growing sectors include aerospace, biotechnology, nanotechnology, energy, financial services, homeland security, information technology, and skilled trades.

A clear trend is emerging. Our country is transitioning to a knowledge-based economy. Most of these new jobs pay better but also require more training and education. More than two-thirds of the new jobs that will be created over the next 10 years will require some kind of postsecondary education. Postsecondary education can be a 4-year college degree, a 2-year degree from a community college or specialized training in the skilled trades.

Research over the past 10 years showed that the unemployment rate for high school dropouts is nearly twice as high as it is for those with high school degrees. And their unemployment is three times as high as those who graduate from college.

In addition, more education and training means higher earnings. In a 2002 study, the Census Bureau estimated that the average holder of a bachelor's degree earns twice the lifetime earnings of a high school dropout. Advanced degree holders earn more than three times as much. Even high school graduates earn 25 percent more over their lifetimes than those who fail to get their diploma. So education really pays off.

Our challenge, as a nation, is to invest in the education and training that will allow our workers to remain competitive in the 21st century worldwide economy.

A great new tool to help our nation and our workers thrive is the American Competitiveness Initiative, which the President announced in the State of the Union address in January. It addresses the core issues at the heart of our nation's competitiveness, which is innovation and research. Since 2001, the federal investment in research and development has increased 50 percent. That's the largest sustained increase since the Apollo space program in the early 1960s.

But more needs to be done. So, this initiative pledges an additional $136 billion in national resources over the next decade to:

1. Increase U.S. investments in research and development;
2. Strengthen U.S. education in math and the sciences; and
3. Encourage entrepreneurship and innovation.

It will support universities that provide world-class education and research opportunities. And it will create new job-training opportunities to help workers improve their skills and better compete in the 21st century.

One part of the Competitiveness Initiative encourages training and it is called Career Advancement Accounts. These accounts will be administered by the Department of Labor and are modeled after Pell Grants. They would empower workers with up to $3,000 — which could be renewed for one more year — that would give them greater control and choice in selecting the education and training that suits them best.

There are other Presidential Initiatives to help workers ensure that their skills match the new jobs being created in a knowledge economy. One is the High Growth Job Training Initiative, which identifies and trains workers for sectors of the economy that are growing. Another is the Community Based Job Training Initiative, which expands the capacity of community colleges to train workers. These are just a few of the many ways in which the Department of Labor can help workers prepare for the challenges of the 21st century. To learn more about these initiatives, please go on our website: www.dol.gov.

But it's also important to recognize that government is not the only entity that invests in training. The private-sector investment in job training far exceeds that of the public sector.

And yet, there is a growing skills gap in our country. That is the mismatch between the new jobs being created and the skills of our nation's workforce. It is one of the most critical challenges facing our workforce today. Unless individuals take seriously their responsibility to keep their skills relevant, they will be left behind.

Before I close, let me ask for your assistance in helping to spread the word about a great opportunity for women. In the next 10 years, 60 percent of the federal workforce will be eligible for retirement.

This upcoming wave of retirements presents a tremendous opportunity for women who are interested in serving their country. Right now, there are more than 20,000 job opportunities listed on the federal employment Web site: www.USAJOBS.gov. So please help us spread the word about these wonderful opportunities in the federal government.

Finally, thank you for inviting me to this conference. I am so glad to be with you today. This is a tremendous opportunity for those of us in Washington to reach out to other women leaders and assure them that the best days are yet to come! And thank you for all you are doing to ensure the doors of opportunity and leadership remain open for the next generation of women.