AARP/SCSEP Annual Training Conference

Marriott Memphis Hotel
October 14, 2003

Thank you, Jim. I am honored to be here. I'd also like to thank Jack Brice for his commitment to older Americans.

A philosopher once wrote that "growing old is no more than a bad habit which a busy man has no time to form." If the active role being played by older Americans in the workforce today is any indication, I think the bad habit of "growing old" may be on its way to being broken for good.

Today, millions of senior citizens are playing a critical role in the nation's economy and prosperity through their continued participation in the workforce. President Bush recognized this contribution during the recent observation of National Employ Older Americans Week, when he wrote that "the contributions of older Americans as employees and volunteers continue to enhance the strength and prosperity of our great Nation."

Those contributions will multiply as the Baby Boom generation ages. The youngest Boomers are about to turn 40. The oldest are closing in on 60. As they have with so many other aspects of national life, the Baby Boom generation will redefine what "retirement" means.

Many will leave their current jobs only to start new careers or launch new ventures. Others will continue to work full or part-time in their current fields. The possibilities open to them are far greater than at any time in history.

One reason why older Americans have so many options is because they are living longer and healthier lives than ever before. Sixty-five just isn't as old as it used to be! A long and healthy life is a great blessing, but it also is an expensive one. Many older Americans re-enter the workforce - or never leave in the first place - out of financial necessity.

Another reason reflects a sea-change in American attitudes toward aging. Older Americans are winning the respect in the workplace that they have always deserved. Employers and co-workers have come to recognize, value, and seek out the experience, the judgment, and the work ethic that older Americans bring to the job.

More doors are open to older Americans who want to and need to work than ever before. The challenge is matching up the employers who need workers with the people and places that need jobs. The 21st century economy requires a new set of skills and capabilities from its workers. Many of today's retirees started their careers in jobs that don't even exist anymore. It's clear that we need to continually educate, train, and re-train workers for the jobs that need to be filled.

That's where the $12 billion workforce investment system comes in. Our goal is to ensure that every available worker - no matter their age -- has the education, training, and skills to fill the jobs that the economy creates, and that no worker is left behind.

We believe that to reach this goal we need to bring all the resources devoted to employment, education and economic development together, and use them strategically to create opportunities for workers and build the skilled workforce that American industry needs to remain globally competitive.

We call this linkage of education, employment and economic development the "power of e-three." By leveraging this power, we are building a demand-driven workforce investment system that will better serve the employers and employees of the future, effectively respond to the global and national trends that are shaping the workforce and the economy, and make a greater contribution than ever before to our nation's economic growth and prosperity.

What does that mean for SCSEP, the Senior Community Service Employment Program? At the most basic level, it means a broader horizon and an expanded mission. When the program was originally authorized under Title V of the Older Americans Act, the focus was primarily on providing subsidized community service assignments for low-income older Americans. That's still part of our vision, but not all of it. Today, we are working to serve those most in need through both community service and unsubsidized employment in the private sector.

This expanded focus is especially important for two reasons: 1) We need older workers in the workforce. The replacement generation behind the baby boomers is simply not large enough to fill available jobs; and 2) As the edge of the Baby Boom nears retirement, the number of people eligible for the program grows. The Urban Institute projects that there will be 1.4 million more economically disadvantaged adults over the age of 55 in 2005 than there were in 1995. That means more people of retirement age who will need to work to make ends meet.

The amendments to the Older Americans Act that were adopted in 2000 acknowledge this demographic, and economic, reality. SCSEP is not just about community service assignments any longer, although it is still an integral part of the program. A community service assignment is the first stop in the regular SCSEP program, not the last station

Under the new regulations, economic self-sufficiency and unsubsidized job placements are the ultimate program goal. For the first time ever, SCSEP grantees must meet specific performance measures, including entrance into and retention in unsubsidized employment, or face corrective action and escalating sanctions.

We take our responsibility for prudent stewardship of public monies very seriously - and now we will have documented outcomes to bring to Congress when appropriations time comes around.

The only way to achieve these goals is through strong partnerships with the business community. AARP has really set the standard for this through your work with employers like Home Depot and CVS. Those programs have been so successful that now you have other major employers knocking at your door to learn about how they can get on board.

We want other SCSEP grantees to follow your good example. We're working with the business community throughout the country to promote the benefits of hiring older workers. With a major public relations campaign in the works, we'll get the message out to employers across the country about one of this nation's most valuable untapped resources-the seasoned older worker who knows what a deadline is, and how to meet it!

Our outreach campaign has three parts. First, we will be providing program grantees with the materials they need to get the message out. Second, we will be clearly communicating to the entire workforce system, including One Stops, about the need to serve older workers and the value they bring to the workplace. Third, we will be reaching out to potential employers using a wide variety of tools, including advertising, to communicate how hiring older workers can help the bottom line. ETA's Business Relations Group is actively working with employers to educate them about the benefits of hiring older workers.

We're also working to strengthen the links between SCSEP grantees and the One-Stop Delivery System. As you are well aware, historically, SCSEP has often not had a place at the workforce investment table-notwithstanding its "mandated" partner status.

That's all changing. As you well know, work-ready older workers do not need community service assignments and could benefit from One-Stop services. Likewise, SCSEP participants can become job-ready by accessing the training services available through One-Stops. We are committed to getting the message out to both the SCSEP and WIA systems that collaboration and cooperation are the measures of success. We'd love to hear from you about successful approaches to working constructively with One Stops so we can share good ideas with the entire SCSEP system.

These are just some of the steps we are taking to ensure that the workforce investment system, including SCSEP, is preparing workers for jobs that employers need to fill.

Another important piece of our national workforce agenda is the Administration's High Growth Job Training Initiative. Through this initiative, we are identifying high-growth businesses and industries, evaluating their skill needs, and using the nation's workforce investment system to ensure that people are being trained with the skills these rapidly-expanding businesses require. Biotech, health care, IT, financial services, construction, transportation, and other high-growth sectors of the economy need more trained and skilled workers if they are to grow and be competitive in the years ahead. We're working with community colleges and other post-secondary schools to prepare workers for the jobs of the future. The fact that America's workforce is better educated than any other is a key competitive advantage for us in the world economy, and we need to take advantage of it.

Finally, we're proposing legislative changes to the Workforce Investment Act to make the workforce system more effective and flexible. When first enacted, the WIA was a groundbreaking piece of legislation that sparked dramatic improvements in the delivery of employment and training services nationwide. Now we need to get this $12 billion system reauthorized as a demand-driven system that is effective and responsive to the needs of local labor markets in the 21st century. A key part of our success will come from community partners who use the resources of the workforce investment system as an economic development tool.

In his speech on Labor Day, President Bush expressed his optimism in America's future - an optimism he says stems from what he has seen of the American spirit -- "the determination and the will, the willingness to work hard, the willingness to place family above self, and the willingness to serve something greater than yourself." Older Americans richly exemplify these qualities, which in turn have fostered the creativity, the ideas, the innovations and inventions that have made our economy strong and our jobs secure. What will tomorrow's innovations be? No one knows for sure. But if we invest wisely in America's workforce, we'll be prepared for every opportunity to build the next rung on the ladder of economic growth, job creation, and national strength.

Thank you very much.