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Remarks Prepared for Delivery by
U.S. Secretary of Labor Elaine L. Chao
City Club of Cleveland
Cleveland, Ohio
Thursday, February 2, 2006
Thank you, Sanjiv. [Sanjiv K. Kapur, President — The City Club of Cleveland.]
It's great to be back! It seems like a lifetime ago, but I visited the City Club almost ten years ago in May of 1996. So I appreciate the invitation to address, once again, the oldest continuous free speech forum in the country! I know you are very proud of your tradition of debating and discussing the great issues of the day.
That's why I'm so pleased to be here today to talk about the President's State of the Union address, and his proposals to help America's workers remain among the most productive and competitive in the world.
In his State of the Union Address, President Bush laid out key components of an American Competitiveness Initiative. The President recognizes, as you do, that our nation is part of a global economy. This presents a tremendous opportunity — to assess our nation's strengths, and to take the necessary steps to ensure our continued economic leadership in the world. That's what the American Competitiveness Initiative is all about. It is a comprehensive, long term strategy to foster the innovation, investment and education that will create new jobs and train America's workers with 21st century skills.
It may interest you to know that last week I attended — along with several of my colleagues in the Cabinet — a meeting of world economic leaders. One of the areas of greatest global concern is job creation, and matching the skills of workers with emerging opportunities. In terms of job creation, our country leads the way.
Overall job creation in the United States is robust when compared with other major industrialized nations. In the last two-and-a-half years, America has created 4.6 million new jobs — more than Japan and the European Union combined. On average, our country created about 200,000 net new jobs per month in 2005. In fact, the United States is one of the few major industrialized nations in which job growth is outpacing population growth. And contrary to what you may have heard, the majority of the new jobs being created in America are in professions that pay above average wages.
But, as the President said, "we cannot afford to be complacent." He knows that there are many communities in the United States like Cleveland, which are on the front lines of difficult economic transitions. This can be very wrenching for workers, especially older workers. Implementing the President's Competitiveness Initiative is critical to their future.
This Administration recognizes that a new paradigm has emerged for the American workforce. It is characterized by mobility, flexibility and productivity. The average American 40-year-old will have held 10 jobs between the ages of 18 and 38. Every year, about one-third of our workforce of approximately 148 million changes jobs, largely to find new opportunities. And our nation's workforce is among the most productive in the world, resulting in a high standard of living for America's workers. This dynamism sets our country apart from every other major industrialized nation. The challenge is to ensure that our country remains competitive in the rapidly changing global environment of the 21st century.
The President took on this challenge Tuesday night, when he announced a $136 billion plan over 10 years to ensure that America continues to lead the world in creating opportunity. The foundation of this plan is as follows:
First, to increase investments in basic research and innovation, especially in the physical sciences that lead to commercialization. Who imagined in the early 1970s, for example, that the desk top computer would lead to the creation of millions of new jobs?
So the President proposes to make the tax credit for research and development permanent, enabling companies to be bold in their R & D strategies. In addition, the President proposes to double investment over the next 10 years in key Federal agencies that support basic research in the physical sciences and engineering. This investment will create the products and services of the future that will, in turn, create new jobs.
Second, the President's Competitiveness Initiative will strengthen education, especially in the math and sciences. It is difficult to underestimate the demand for these skills in the 21st century workforce. Over the next 10 years, there will be more than 6 million new and replacement job openings in engineering, science, computer, health care and technical occupations that require strong math and science skills. That's why the President's Competitiveness Initiative includes $300 million in new Federal support to improve the quality of math, science and technological education in grades K through 12.
Third, the President's initiative aims to quadruple the number of workers trained with public resources. The goal is not to process workers through a system. The goal is to train them for new careers. Job training is so important because 90 percent of the fastest growing jobs require some type of post-secondary education and training. It is never too late to learn a new skill.
To help workers chart new career paths, the President is proposing Career Advancement Accounts. These will provide workers with self-managed accounts of up to $3,000 to choose the job training that's best for them. This will replace the old "one size fits all" approach, which failed to take into account individual preferences and local economic conditions.
As I mentioned earlier, the President's Competitiveness Initiative is a long term strategy. In the short term, there are many programs that provide support for workers undergoing transitions. Many of them are funded by the U.S. Department of Labor. For example, eligible workers displaced by trade can access the following:
- Up to 104 weeks of income support;
- 104 weeks of job training, job search and relocation assistance;
- Help with child care, transportation, other services and 65 percent of health-care premiums; and
- For workers over 50 years of age: if their new job pays less than their old job, the government makes up 50 percent of the difference up to $10,000.
This generous package reflects the fact that America is a very compassionate nation. The Labor Department is also home to two other Presidential initiatives designed to support and strengthen the skills of America's workforce.
The first is the President's Community-Based Job Training Initiative. Through this program, the Department has provided $125 million in grants for programs at 70 community colleges across the nation. These grants help expand the capacity of community colleges to train workers in high growth fields that pay good wages. You may be interested to know that the Department has identified 14 rapidly growing sectors of our nation's economy. They include advanced manufacturing, aerospace technology, automotive, biotechnology, construction, energy, financial services, geospatial technology, health care, homeland security, hospitality, information technology, retail and transportation.
Another key job training program is the President's High Growth Job Training Initiative. Under this program, the Department has awarded more than $256 million to create public-private partnerships across the country. These investments bring together state workforce agencies, local employers and education providers to identify high growth sectors. And then to provide workers with relevant job training so they can access these new opportunities.
Innovation, investment, education and training — these are the keys to ensuring a bright future for America's workers. The President has laid out a bold agenda to address these challenges and to ensure America's competitive advantage for generations to come. They are part of a larger strategy the President has put in place over the past five years to create the conditions for growth. That strategy is to reduce the excessive taxation, over regulation and abusive litigation that hamper growth and job creation.
So let me conclude by thanking you for everything you are doing to raise public awareness about competitiveness and other critical issues. As the President said on Tuesday night, it is important to come together in the spirit of cooperation to address the major challenges facing our country. And no challenge is more important than ensuring that our nation remains the most productive and competitive in the world.
Thank you.
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