Emily Stover DeRocco Speech, Employment & Training Administration (ETA)

BRG State Coordinators Meeting
January 13, 2004
Washington, DC

Thank you. And thank you all for coming to Washington this week. The role all of you play is critical to the success of our nation's workforce in the 21st century. There will be new challenges and the labor force will need to be equipped with the right tools, in the form of skills, to address those challenges.

I want to start with a recent article in Barron's that I believe directly addresses our future, and especially the way our One Stop Career Centers and public workforce system must adapt to the 21st Century economy. The article began by telling us that, "Over the next 10 to 20 years, skilled jobs will be on the rise as never before. They will proliferate in nursing, computer science, entertainment, financial services and entire fields that may now be just a gleam in the eyes of the innovative."

Then the article proposed five broad trends that it said will transform the jobs market. Three of these trends are almost certain to occur between now and 2025. Let me quote them. First, the "baby boomers will become senior citizens. Second, as result of this, the labor force will grow at a much slower rate than before. And third, the Medicare system will be hit by a financial crisis of major proportions.

The other two trends," the article continues, "are not certain but worth betting on. Number 4, the Second IT Revolution, is about to begin, with new kinds of information technology developed to serve the needs of the increasingly prevalent 'knowledge workplace' - fields in which brain power, rather than machinery or processes, drive production. This second revolution will be powerfully reinforced by our fifth and final trend: Spending on intangible capital - assets like patents, copyrights, brand names, trademarks and trade secrets - will continue to grow faster than outlays on tangibles like structures and equipment. That's because of both a boom in products developed by science and a proliferation of niches in the global marketplace."

Why do I believe this article is important? Because it both reminds us of the growing need for knowledge workers - and it makes very clear that knowledge workers are not only needed in certain high-tech industries. Instead, knowledge workers will be needed across the economy, at many levels.

That should already be apparent. Visit the exhibit floor at the next National Retail Federation conference to view the "highest-tech" marketing and distribution systems or check out the robotics assembly line in a nearby manufacturing plant. These and other industries demand skilled workers able to keep up with the technologies of the 21st Century workplace. But they are obviously not all located in Silicone Valley. Instead, they are located in the very communities and areas where we serve.

Let me give you an example.

Two months ago, President Bush made a visit to Forsyth Tech Community College in Winston-Salem, North Carolina, to learn about a program that is taking workers from declining 20th Century industries and training them to be a part of one of today's hottest new industries, biotechnology. I'd like to show you what the President had to say about the program and our system in general.

[ROLL TAPE]

Wasn't that great! The President clearly believes that the $15 billion public workforce system can prepare workers with the training they need for today's jobs. I fully agree, and I also believe that all of us will play an increasingly vital role in this economic transformation.

Our One Stop Career Centers are perfectly positioned to meet these new challenges. By recognizing the changing nature and demands of the 21st century economy, and by offering the fullest array of available program and service options, we will not only do our part to serve the communities and states served by the public workforce system. We will help workers achieve levels of success they may have never dreamed of.

Let me be clear, however. Our workforce system leaders will need to play a central role in this process. This won't just happen on its own. That's why every leader must meet a set of concrete expectations. Let's look at those expectations, one by one.

First, leaders must understand the demographics of the workforce. Here's a central fact all of us must remember: As the baby-boomers retire, the replacement generation is simply not as large. This leaves a potential gap in the sheer number of workforce participants available to meet employers' needs. That, in turn, presents a tremendous opportunity to ensure every American worker who wants to work has very good employment prospects.
Second, leaders must be knowledgeable about the current and future local labor market. We need to be aware of declining industries and also be aware of industries that are growing and creating jobs. In addition, we must become aware of emerging businesses and industries that will eventually have employment potential.
Third, leaders must participate in the communities' and states' economic development strategy planning. We should be part of this process for a very simple reason: A skilled workforce is a critical economic development tool, and we will play an increasing role in making sure the local and regional workforces can meet new challenges.
Fourth, leaders must deal directly with the businesses and industries that are creating jobs. We must fully understand their perspectives on the education and skills requirements of the jobs they will seek to fill.
Fifth, leaders must partner directly with educational institutions, particularly community colleges, to ensure the education and training community has in place or can develop the curricula necessary to develop the skills identified by the employers.
And finally, leaders must act as a catalyst in the community. They must bring together businesses, educators, and workers.

This catalytic role is vital to the success of our One Stop Career Center delivery system. It makes us the facilitator between business and the community and the available workers and requires us to marshal all available resources to solve the workforce needs of local businesses. This is why a fully integrated system is required. A fully integrated system will provide industry with human capital in a variety of ways, such as:

We envision each One Stop being able to present a set of human capital solutions for the businesses and industries in their communities. That vision begins with full knowledge of which companies are creating jobs. Our leaders must also know and be able to articulate the skills necessary for workers to succeed in those jobs. If they have not yet done that type of skills analysis, the One Stop can act as a primary source of expertise. Tools such as O*Net and experts from Apprenticeship programs are very valuable in this process.

With knowledge of the skills needed and career ladders or lattices available, effective One Stops will match workers with the appropriate educational and training programs. This will mean that our workers will be precisely trained to meet industry standards. That's a winning combination.

Here's another very important step in matching workers with employers. One Stops must inform local industries of the wide diversity of workers available in their areas, and how these workers can benefit them. Let me give you an example. For many employers, access to new labor pools is their top priority. And yet, participants in the Senior Community Service Employment Service program, the Indian and Native American program, or the Migrant and Seasonal Farmworker program has never been considered. Yet these unique worker groups may fill a company's precise need. The same is true of individuals with disabilities who might previously have been marginalized and new immigrant populations. We need to let companies know who is available. Our access to human capital is truly our strength. Helping identify and address these populations' barriers to full participation in the labor force is a tremendous asset as well.

Lastly, we should never forget that we have a lot to offer. We have a wide matrix of companies looking for workers, and a wide and diverse workforce that is ready, willing, and - with the right training -- able to prosper in the new knowledge-based economy. I believe we will play a vital role in this new economy. We are perfectly positioned to match the right job to the right worker. When we do that, we have made the economy sounder and communities stronger and we have made our workers' dreams come true. I am very proud to be part of that process.

Thank you.