Emily Stover DeRocco Montana Economic Development Forum

Draft 5/22/03

• Good morning. It is so good to be here. What a pleasure it is for me to have had the opportunity to attend part of this morning's session.



• I know it is almost lunch time. And I am not about to stand between you and a good barbeque. So, I will just make a few points.



• One: It is critical that you have conferences like this, and it is important that you are having them now, even in economically slow times.



• Because although our economy is in the midst of a recovery, there are still far too few jobs. With unemployment at 6 percent nationwide, and 4.2 percent in Montana, we know we have a big challenge ahead of us. Nearly 9 million Americans are looking for work; many others are underemployed, or have given up the search.



• Yet I'm very optimistic about the prospects of job creation, and my optimism stems both from passage of critical components of the President's Job and Growth plan last week and from my experience at the Department of Labor's Employment and Training Administration.



• From my vantage point, I see the emerging signs of recovery. Many industries, in fact, are growing, and have many unfilled job openings.



• So, two: You have to understand what the jobs of the future are and what industries are creating them. At the Department of Labor, we are working with leading industries to identify what industries are growing, and what skills are in demand by employers. We are having these forums so we can invest our Federal resources wisely and concentrate them on building skills where future job growth is going to occur.



• I'd like to share with you a little bit of what we know nationally:



• Health Care - The health care industry is one of the largest and fastest growing industries in the nation. Today it accounts for about 13 percent, or $1 trillion, of our annual GDP, and provides more than 11 million jobs. Nine of the nation's 20 fastest growing occupations are in the health care field. We anticipate explosive growth in the demand for home care aides, medical and physician assistants, and health information technicians.



• Information technology - The IT field is another field that is rapidly growing, and changing. The "hardware" side of the IT industry overlaps many sectors, and accounts for nearly 7 percent of GDP. The "software" side makes up nearly 6 percent of GDP. Interestingly, 92 percent of all workers in the IT field do not work for the IT industry; rather, they fulfill IT functions in non-IT industries. The IT field attracts a young workforce, with nearly 40 percent of workers being between the ages of 25 and 34; earnings in the field are expected to grow by 86 percent between 2000 and 2010.



• The biotech field is another rapidly growing part of the economy. Between 1992 and 2001, the number of jobs in biotechnology doubled; biotech jobs will grow by 3 million between 2000 and 2010, with double-digit increases in jobs such as pharmaceutical manufacturing, biological technicians, and scientists.



• Geospatial technology - the geospatial technology industry is so new it isn't even well defined yet. But, already, the industry has a current worldwide market of about $5 billion, and is growing by 10 to 13-percent per year, a growth rate that is expected to continue throughout this decade. The market is projected to have annual revenues of $30 billion by 2005.



• So, we know jobs are being created. Once you know what jobs are being created, you have to bring education, employment and economic development together to identify and effectively use available resources to build the skills needed to fill those jobs and to understand where those job-creating industries are headed.



• Because finally, you need to know where the jobs are going to be. Economic development has the bad rap of being the process by which a business is recruited from one state to a neighboring state. Or, worse yet, from one county to the next. Now, you're just as likely to lose a business to another continent.



• Economic development in the 21st century means knowing where the jobs are going to be and making sure you have the skilled workers to attract them.



• Fortune magazine reported recently on a fast-rising technology called RNA interference, or RNAi. This is described as the new "spellbinding blue glow on biotech's horizon."



• RNAi is a natural process in cells that researchers can harness to deactivate selected genes. It sparks intense excitement for 2 reasons: First, RNAi within a few years should yield a rough idea of what each of our genes does. Second, it promises novel drugs that disable genes that cause disease. If even a fraction of RNAi's promise is realized, the technology could lead to billions of dollars in new drugs.



• In December, Science magazine name RNAi advances the No. 1 breakthrough of 2002.



• Can you imagine how many new jobs this breakthrough is already creating in research, in technology, in manufacturing, in marketing, in management, in sales? The list goes on and on.



• Would you like to land a company at the cusp of this exciting breakthrough? If you want to compete in the international world of economic development, a nice facility isn't going to be enough.



• Tax incentives won't be enough.



• Cheap labor certainly won't be enough. There is always someone cheaper.



• The way to bring jobs like this to your state is to have a skilled and educated workforce - everything from doctorates in math and science to two year technical degrees to apprentices.



• That means you have to have everybody working together: Republicans, Democrats, Independents, large towns, small communities, education, employment and economic development.



• Well, lucky for you, you are all already here. The right people are in the room. There is the challenge. It is up to you to claim it. The place with the best prepared workforce wins.



• I didn't just come today with advice. I've also come to announce on behalf of the Secretary of Labor Elaine Chao that the Department of Labor has awarded two National Emergency Grants to Montana.



• The first is a grant for $619,278 to the Montana Department of Labor and Industry to assist 123 workers who lost their jobs as a result of layoffs at the Columbia Falls Aluminum Company in Columbia Falls. This grant will also benefit workers at other companies who are affected as a result of these layoffs.



• This grant will provide participants with services including: an assessment of their needs, job search assistance, basic skills training, classroom and on-the-job training and supportive services, such as childcare, transportation, tools and clothing required for employment and even some limited medical attention.



• I am also pleased to be able to announce a grant to the Montana Department of Labor and Industry for $266,923 to provide temporary health coverage for approximately 170 former employees of Stimson Lumber. This grant is made available through the Trade Adjustment Assistance Reform Act of 2002 and benefits workers who lost their jobs as a result of foreign trade.



• Later this summer, these workers and others like them will be able to receive a Health Coverage Tax Credit through the IRS that will help provide a tax credit to pay for their health insurance premiums also through the Trade Adjustment Assistance program.



• Although it was my pleasure to announce these grants, they are possible through the hard work of your Department of Labor and Industry, your Governor, your Senators and your Representative. Another sign that your leadership is all working together for the good of Montana. I think they deserve a round of applause.



• Thank you for inviting me to join you and for sharing your time with me. Have a great afternoon.