Speeches by Secretary Elaine L. Chao

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Remarks Prepared for
U.S. Secretary of Labor Elaine L. Chao
Chain Link Fence Manufacturers Institute (CLFMI) Annual Meeting
Washington, D.C.
Thursday, November 8, 2007

Thank you, Ted [Eysenbach, former President of CLFMI].

I am delighted to be here today, and to welcome all of you to Washington, D.C.

This afternoon, let me share some thoughts on the state of the U.S. economy, and how we are helping to increase the safety and competitiveness of our nation’s workforce — including workers in the manufacturing sector. 

Today, despite challenges in the housing and financial credit markets, the fundamentals of our nation’s economy are healthy.  Last week I announced that 166,000 net new jobs were created in October — more than twice the market forecast.  This marks the 50th straight month of job growth.  And it’s the longest, uninterrupted stretch of job creation in the 68-year history of the monthly payroll survey.  More than 8.3 million new jobs have been created since August 2003.  And the unemployment rate remains a low 4.7 percent, which is a full point lower than the average 5.7 percent unemployment rate of the 1990s.

This shows, once again, how diverse, strong and resilient our economy is, despite record oil prices and other challenges.  We’ve seen a steady pace of job growth, combined with the strong third quarter GDP growth of 3.9 percent. A big contributor to 3rd quarter GDP growth was rising exports, which now comprise a record 12 percent of GDP. So, now is not the time to turn our backs on trade.

And despite what you may have heard, real after-tax per capita personal income has risen by 12.7 percent since January 2001.  That’s an average of over $3,800 per person — since President Bush took office.

That’s a tribute to the fact that productivity in the U.S. is high and growing steadily.  Even the UN — through the International Labor Organization — recently issued a report naming America’s workers the most productive of any nation.  And U.S. factories have posted faster productivity growth over the past decade — 5.4 percent annually — than any other major industrialized nation. 

Many people do not realize that the U.S. leads the world in manufacturing output, followed by Japan, China, and Germany.  In fact, the U.S. contributed 21 percent of global value added in manufacturing in 2005, the latest year with complete data — compared to Japan with 13 percent and China and Germany with 12 percent and 8 percent, respectively.

But, one of the challenges we do face is a skills gap.  That’s an increasing mismatch between the skills of some in our workforce and the skills needed for jobs in growing sectors of the economy.  In fact, as our country continues to transition to a knowledge-based economy, two-thirds of the new jobs created over the decade ending in 2014 will require some kind of post-secondary education or training.  That’s primarily because technology is transforming the workplace.  It has raised the level of technical proficiency that workers need in every sector — including manufacturing.  So if our country is to remain competitive, we must ensure that workers have access to the education and training they need to continually update their skills. 

And, that continues to be a priority of this Administration.  That’s why in 2003, President George W. Bush, through the Labor Department, launched a series of initiatives to expand workers’ access to post-secondary education and training.  We’ve worked hard to link the publicly-funded workforce system with employers — like you — to ensure you’re able to get the workers you need to fill available jobs.  And we’ve provided seed capital and encouraged key players at the regional level to come together and create an economic development strategy centered around talent and skills development.   

Training has been, and will continue to be, a key priority for the Department of Labor.  But, let me also update you on an important topic that I know you are concerned about.

As many of you know, the Labor Department is one of the largest regulatory agencies in the federal government.  The Department regulates every workplace in America for health, safety, and wages and hours worked. 

But, we do recognize that workplace laws can be written and enforced in a way that hampers growth and job creation.  Or, they can be written and enforced in a way that empowers workers and employers to succeed in the 21st century economy.  And, our strategy in this new century has been to empower workers and employers. 

And we have produced real, measurable results with a strategy that, in addition to enforcement, emphasizes education, outreach, and prevention.  The goal is to help workers and employers understand their health and safety responsibilities, so we can help prevent workplace hazards and violations from happening in the first place.        

Beginning in 2001, the Department developed new cutting edge tools to provide employers, workers, job-seekers, and retirees with clear and easy-to-access information on federal employment laws.  The Department’s website now provides detailed information on how workers and employers must comply with wage and hour regulations, workplace safety and health, and employee benefits regulations.   For example, the website offers an “FLSA Overtime Calculator Advisor.” Employers can use this helpful tool to determine overtime rates and amounts, and to find a list of common exemptions that may apply in certain situations.  This tool and other eLaw advisors are available at www.dol.gov/elaws.

A second part of our strategy was to increase the Department’s health and safety partnerships with employers, workers, and unions.  We believed that better results could be achieved by encouraging employers and workers to work together to prevent problems from occurring in the first place.  And today, the Department has the largest number of health and safety partnerships in its history. 

As a result of these efforts, together with aggressive, targeted enforcement, the Department has been able to achieve record results in worker protection without imposing unnecessary new costs that hamper job growth.  The Occupational Safety & Health Administration has helped bring injury and illness rates down to record low levels — down 17 percent since 2002.  Injury and illness rates in the "Miscellaneous fabricated wire products" industry sector have fallen 28 percent since 2002. So thank you, for all that you are doing to build a culture of safety in your workplaces.  Moreover, the overall fatality rate has fallen by 7 percent, and by 18 percent among Hispanics, since 2001.

I know that many of your companies employ immigrants, including Hispanics immigrants.  And this Administration recognizes the invaluable contributions that Hispanic immigrants make to our nation’s workforce. 

That’s why the President continues to call on Congress to pass a comprehensive immigration reform plan.  We need a plan that will secure our nation’s borders, while honoring America’s tradition of welcoming hard-working immigrants seeking opportunity. 

Also, the Department has published and distributed health, safety and employment materials in a wide variety of languages, including Spanish. The goal is to help vulnerable immigrants learn about their rights under our nation’s labor laws. 

Human capital is our most precious resource in the increasingly competitive global economy.  And the manufacturing industry is among the most dynamic.  

Workers are the backbone of America’s economy.  And the economy is strong because our 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.

So looking ahead, there is great reason for optimism as our country faces new challenges and opportunities.  And by continuing to emphasize education and job training, we can empower workers and increase access to opportunity.  

Thank you, and have a great meeting. 

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