Speeches by Secretary Elaine L. Chao

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Remarks Prepared for Delivery by
U.S. Secretary of Labor Elaine L. Chao
Louisiana Economic Forum
Southeastern Louisiana University
Hammond, Louisiana
Monday, August 2, 2004

Thank you, Congressman Vitter [David, 1st District, Louisiana]. You are to be commended for bringing together this distinguished group of leaders to discuss economic development in Louisiana.

Thank you, Secretary Michael Olivier [Louisiana Department of Economic Development], Secretary John Warner Smith [Louisiana Department of Labor ], Dr. Walter Bumphus [President, Louisiana Community and Technical College System], Dr. Randy Moffett [President, Southeastern Louisiana University] and Ms. Barbara Johnson [Sr. Vice President, Workforce Development, GNO, Inc.]. Thank you for sparing time to participate. This is a very important issue for us to discuss. Economic development brings jobs and opportunity. Real people's lives are impacted for the better.

It takes a community coming together, working collaboratively to make long-term sustainable change.

Today, I'd like to discuss the recent trends in our economy, the pace of creation of new jobs and how to prepare workers for the opportunities of the 21^st century.

Our country has come a long way in the past three-and-a-half years. Consumers and businesses have greater confidence than they have in several years. GDP growth is strong. And the pace of the recovery is encouraging.

As you may recall, the stock market peaked in March 2000. In August 2000, manufacturing hit the doldrums. By the time President George W. Bush took office, the nation was entering a recession, though it was not widely reported at the time.

Our economy is strongest when people have more of their own money to spend. That's why President Bush pushed an ambitious tax-cut plan through Congress. The average family making $40,000 received $1,900 back.

The economy was responding well to the first round of tax cuts when the devastating attacks of September 11, 2001, occurred. Our country lost 3,000 precious lives that day. And more than 1 million jobs were lost in the following three months. So the President pushed for second and third rounds of tax cuts and a jobs-and-growth package. These tax cuts are widely credited with jump-starting the economy and are widely credited with making the recession one of the shortest and shallowest in recent history.

In fact, Alan Greenspan, Chairman of the Federal Reserve, recently told Congress that President Bush's tax cuts “were effective in stemming the extent of decline in the weakness of the economy.”

The increase in job creation is reflected in the positive signs in the rest of the economy. Nationally, we have had 10 straight months of job growth. More than 1.5 million new jobs have been created since last August. The national unemployment rate is 5.6 percent—which is lower than the average unemployment rate of the decades of the 1970s, 1980s and 1990s.

Compare America's unemployment rate of 5.6 percent with those of other countries like Germany, where unemployment is stuck at 9.9 percent, and France, where it is 9.4 percent. Job creation is lagging because their governments stifle initiative with high taxes and excessive regulations and bureaucracy. Working families pay the price. But America is different. Throughout our history, our resilient economy has been constantly evolving and producing new ideas, new jobs and new opportunities.

As the President has said, he's interested in steady and consistent growth. The steady and consistent growth in our economy is evident in Louisiana. Louisiana's unemployment rate has dropped [to 5.9 percent] a full percentage point since June of last year. Louisiana added 5,900 jobs in June across a broad range of sectors. These include professional and business services, education and health services. And in the first quarter of 2004, tourism—one of Louisiana's chief industries—was up from the same time last year.

These improvements are good news for Louisiana and for our country. But the President recognizes that there are folks who still need help. That's why there are tremendous resources available to help people looking for jobs, transitioning between jobs or upgrading their skills.

Contrary to what you may hear, the economy is creating good jobs that pay good wages. But many require upgraded skills. The President has asked the Congress for $23 billion to fund 34 different training and employment programs. These programs help workers find and prepare for good paying jobs in the 21^st Century workforce. The Labor Department alone spends $9.5 billion in employment and job-training programs.

There is literally something for everyone. Some of the services available to job seekers include job training and counseling. There is help with paying transportation, child-care expenses and health insurance premiums while looking for work. Louisiana alone receives $132.8 million annually from the U.S. Department of Labor for training, employment and unemployment services. [This includes $29 million to administer the Unemployment Insurance Program.] With these resources, the President and this Administration are ensuring that workers can get the training they need as the economy continues to improve.

Workers in Louisiana can access these training and assistance programs through the 19 Comprehensive One-Stop Career Centers in your state, which are part of 3,800 one-stops publicly funded through the workforce development system throughout the country. These centers are also an important resource for employers. In fact, this Administration has introduced a number of key reforms to link job-training programs to employers who have jobs to fill. The workforce investment system needs to be demand-driven; they have to be more inclusive of employers, as employers know where the jobs are. Workers can find the nearest center at this Web site address: www.dol.gov — or by calling 1-877-USA-JOBS.

I want to take a moment to describe the special services available to workers whose industries have been negatively impacted by trade. Workers enrolled in this special program, called Trade Adjustment Assistance, can receive the following:

• Up to 104 weeks of unemployment insurance;
• 104 weeks of job training and job search assistance;
• 104 weeks of transportation, commuting and relocation assistance;
• 104 weeks of childcare
• 65% of health-care premiums paid for; and
• Workers over 50 years of age who find a new job that pays less than their old job can receive 50% of the pay differential from the government.

One of the most important things workers need to recognize is that education is critical to building a successful career path. Our economy is changing rapidly and new jobs are being created. But many of these require upgraded skills or some form of higher education. That doesn't necessarily mean a 4-year degree. It can mean new skills learned on the job or professional certification pursued through community colleges and apprenticeship program. But in every case, it means a commitment to lifelong learning and continually upgrading skills.

To respond to this urgent national need, the President has announced a High-Growth Job Training Initiative. This program focuses on a dozen key industries that are projected to add new jobs. This includes industries like health care, which will need more than 1 million new nurses by the end of this decade. 3.4 million health care workers will be needed in the next 8 years, including pharmacists, phlebotomists, and health-care technicians. To help workers attain these skills, the President has also asked Congress to provide $250 million for a new community-based job-training initiative. This program builds on the vital role that community colleges play in workforce development.

President Bush said it best when he noted that, “The community college system is an incredibly important part of the education system in America (and a) very important community asset.” We want to put that asset to work on behalf of workers who need jobs … right here in Louisiana.

A skilled workforce is a very valuable economic development tool. It is an asset that attracts investment, entrepreneurship and job creation. This Administration wants to ensure that Louisiana's leaders have the flexibility, authority and resources needed to respond to the unique needs of your communities.

As President Bush has said, “Our global economy requires Americans to remain prepared for change and innovation.” His plans for developing a skilled workforce play a critical role in preparing Americans for the opportunities that the future will bring.

Economic development cannot occur without a prepared, educated, learning workforce. It comes down to people. We need to invest and help our workforce be prepared to take advantage of the challenges of the 21^st — century workforce.

Thank you for inviting me to be here today.

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