Speeches by Secretary Elaine L. Chao

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Remarks Delivered by
U.S. Secretary of Labor Elaine L. Chao
Economic Development Summit on Health Care
Sponsored by Senator Richard Burr
Charlotte, North Carolina
Monday, July 24, 2006

Thank you, Senator Burr.

Before I start, let me say what a great job Senator Burr is doing for the people of North Carolina. In less than two years in the U.S. Senate, Senator Burr has become a recognized leader on workforce and health-care issues. And as Chairman of the Bioterrorism and Public Health Preparedness Subcommittee, he has played an important role in helping our country remain safe from terrorist attacks.

Senator Burr has been a strong advocate for many initiatives to help working people in America — especially Association Health Plans, or AHPs. AHPs will help America's small businesses band together to make affordable health care more accessible for their workers. So, thank you, Senator Burr, for your leadership on this important issue.

I want to thank Charlotte's Mayor, Pat McCrory, and Central Piedmont Community College President, Dr. Tony Ziess, for joining us here today.

I also want to recognize the sponsors of this event. Thank you for everything you are doing to create opportunity for so many people in your community.

Let me start today with a snapshot of our country's economic progress. Three weeks ago, the Labor Department announced the national unemployment rate for June, which remained steady at 4.6 percent. That's more than a point lower than the average 5.7 percent unemployment rate of the 1990s!

Our economy is one of the most vibrant of all industrialized nations. It clocked in at an average annual growth rate of 3.5 percent in 2005. And it grew at a strong 5.6 percent annualized rate in the 1st quarter of 2006. Our economy has created 5.4 million net new jobs in the last two-and-half years. Contrast this with Europe where job growth has been stagnant over the last 10 years. And where Germany and France, for example, have persistent unemployment rates nearing 10 percent! In America, more people are working than ever before.

Right here in North Carolina, the unemployment rate is also 4.6 percent. In the past year, North Carolina added 100,300 net new jobs. The state's fastest growing sectors include education and health services, professional and business services, and construction.

The majority of new jobs across the country are in occupations that pay above average wages. By definition, they require higher skills and more education. Many will require a four-year degree. Others will require a two-year degree, certificate of training or completion of an apprenticeship program.

That's largely because our country is transitioning to a knowledge-based economy. And there is a growing mismatch — a skills gap — between the new jobs being created and the skills of our workforce. And so, education is critical.

A few months ago, the Department released its updated Occupational Outlook Handbook. Once again, our research shows the demand for skilled health-care professionals is very strong.

Our country will need 4.9 million new workers in health-care related occupations, including 1.2 million registered nurses, in the next 10 years. We will also need health-care technicians, pharmacists and phlebotomists.

Home-health aides, medical assistants, physician assistants and registered nurses are among the fastest growing occupations in America. These jobs offer good pay and the opportunity to help others live healthier lives.

To help close the skills gap and prepare workers for these and other jobs in high demand, the Department of Labor has launched several important initiatives.

The High Growth Job Training Initiative identifies sectors of the economy that are growing and helps workers get relevant skills so they can access these opportunities.

The Department has awarded more than $21.4 million to projects in North Carolina under this program. Nearly $11 million of those grants went to projects that train workers in biotechnology and health care. In fact, two years ago, then-Congressman Burr and I were together at Forsyth Community College in Winston-Salem. We announced a $5 million grant for job training in biotechnology. And you may be interested to know that Central Piedmont Community College was also partner in a similar grant for $2 million.

The other program is the Community-Based Job Training Initiative. It expands the capacity of community colleges to provide job training in collaboration with employers and the workforce investment system. North Carolina has also benefited from this program. Haywood Community College in Clyde, North Carolina received a $1.69 million grant last October.

You should know that three weeks ago, the Department opened the second round of competition for another $125 million in Community-Based Job Training Grants. To learn more about these grants, I hope you will visit the Department's Web site at: www.dol.gov. The application deadline is August 29th. We look forward to working with Senator Burr to ensure that this program continues to be funded by Congress.

Now I've just thrown a lot of numbers at you. But they are important because they reflect the strong commitment that this Administration — and Senator Burr — have to workforce training.

In fact, the President is such a strong believer in workforce training that he used the 2006 State of the Union Address to launch the American Competitiveness Initiative. This initiative is based on the premise that innovation — the creation of new ideas, products and services — is a critical driver of economic growth in the 21st century. As part of the Competitiveness agenda, this Administration is proposing the creation of Career Advancement Accounts, or CAAs, to help workers access more and better training.

CAAs are modeled after Pell Grants. They would empower eligible workers with up to $3,000 annually to choose the training or education program that suits them best. Accounts could be renewed for an additional year. They would be available to the following people:

• Adults and out-of-school youth; and
• Incumbent workers who need to update their skills.

Career Advancement Accounts would give states like North Carolina greater flexibility to meet their unique economic development needs. We estimate that Career Advancement Accounts would more than triple the number of workers and youth who annually enroll in education and training programs.

Let me note that the Workforce Investment System and community colleges will have an important role to play. They will provide counseling, assistance and referrals for workers who use Career Advancement Accounts. So this Administration looks forward to working with Senator Burr and the Congress in advancing the President's Competitiveness agenda this year.

As a follow up to the President's American Competitiveness Initiative, I recently launched an exciting new program to help states develop the talent needed to attract new industries. This new program is called WIRED — Workforce Innovations in Regional Economic Development. It represents an investment of nearly $200 million in 13 regions around the country. These grants are helping local communities develop new industries and train workers for these opportunities. This is especially important for displaced workers and for communities that need to diversify their economic base.

In February, North Carolina was one of 13 regions that won a WIRED grant. North Carolina's Piedmont Triad was awarded $15 million for a 3-year project. It will include 12 counties — Surry, Stokes, Rockingham, Caswell, Yadkin, Forsyth, Guilford, Alamance, Davie, Davidson, Randolph and Montgomery. This was one of the most rigorous grant competitions in the history of the U.S. Department of Labor. So congratulations — this is a tremendous achievement that everyone in North Carolina can be proud of!

Senator Burr, and all of you, recognize that workforce training is key to helping North Carolina remain competitive in the rapidly changing 21st century economy.

With your help — and with the continued support of Senator Burr — we can help ensure a bright future for North Carolina's workers, and for all of America's workers.

Thank you.

Now, I'd be happy to take a few questions.

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