National Skills Summit

National Skills Summit
Skills Summit Highlights

Statement from Larry Perlman,

Former Chairman and CEO, Ceridian Corp., Chairman, Twenty First Century Workforce Commission

Larry Perlman, Former Chairman & CEO Ceridian

As we began the hearings, the Commission recognized that Americans are facing a profound and troubling paradox. On one hand, the growth in information technology (IT) employment is simply extraordinary, roughly doubling between 1986 and 1996, and expected to double again between 1996 and 2006. But IT jobs have outgrown the supply of workers and many of these jobs are going begging. The unemployment rate for IT workers is significantly lower than general unemployment; for example, it was 1.3 percent in 1997. The dearth of IT workers is cited by many CEO's as the primary factor limiting the growth in their companies. One consequence of the shortage is that every year, business groups lobby for higher limits on HI-B visas for workers with high-demand skills. But the paradox is that alongside this intense demand and worldwide search for scarce workers, we still have high unemployment and persistent poverty in rural America, in small towns, in inner cities and among communities of color and the economically disadvantaged.

At the heart of the Workforce Commission's inquiries is the question of how to accelerate the movement of these Americans, who are squarely on the wrong side of the Digital Divide, into the New Economy. We have found evidence all across the country that through concerted public and private initiatives we can both address this major social issue and, at the same time, lay the foundation for increasing the supply of the skilled workers American business needs now and going forward. And accelerate we must, because the need on both sides is urgent. Businesses needing workers and workers needing jobs are running out of patience.

Today, I want to step back from the statistics, data and anecdotes we have heard throughout the hearings and focus on what I see as the four overarching themes that will characterize a successful approach to these problems: One is local partnerships. Two is a cultural shift toward lifelong learning. Three is a greater continuity between high school and post-high school education and work experience. Four is the need to get technology and training in technology into the hands and homes of individuals who traditionally have been isolated -- either by economics or geography.

But let me first touch on an element that transcends any specific theme or strategy. It is the call to leadership. From the start, we've sensed that whatever the Commission recommends, it must have a 'uniquely American' flavor to it. It must capture the essence of what makes the American system vibrant and energetic enough to respond to widely varying circumstances from place to place. As we met with educators, business leaders, community activists, and workers around the Nation, we saw examples of innovative and creative locally-based solutions. We have been reflecting on what links all these wonderfully diverse solutions and initiatives together. It has something to do with leadership. Leaders in the local chamber of commerce, at the community college, at the job training program, at the school-improvement team -- ordinary folks who step forward to accomplish extraordinary results. No matter how well aligned and structured policies and programs may be, leadership is the spark that starts the engine and gets the vehicle moving forward.

One expression of leadership is in development of local partnerships of business, education, labor and community resources that prepare workers for the jobs that companies must fill to continue their growth. In hundreds of communities, resources are being deployed most effectively because the solutions are targeted to specific deficits and specific needs. Hiring companies know best which of the competencies and skills they need and can therefore draw the 'bright lines' between the training and employment that makes all the difference to the kid deciding whether to hang out on the street or do homework. Or the older worker deciding whether to take a low wage service job or Linux programming. If local partnerships are the most immediate solution to the IT workforce problem, the most fundamental long-term change we must engender is the shift to lifelong learning as a cultural norm.

We have heard time and again that today's economy does not just call for workers that are "trained" in one set of IT skills -- rather, employees must be constantly engaged in learning, upgrading their skills, and making career growth decisions. The turnover rate in technology is in high gear. Today's hot Microsoft certification could be tomorrow's buggy whip. There is really no historical parallel to the speed with which skills and knowledge are replaced by the new New Thing. Our institutions and infrastructure supporting lifelong learning simply must get on Internet time if we are to stay apace. In Silicon Valley, much of the IT job-hopping is inspired by the need to be current on the latest software and network technology. If an IT worker is not able to work on the hottest stuff or at least keep her skills current through continuing education -- either onsite, online or conveniently nearby -- she will move on in a nanosecond. And probably receive a generous signing bonus to do so.

In technology companies, no other factor figures as highly in a retention strategy as access and support for employees' ongoing education. Workers already in the IT field need no persuading about lifelong learning, but Old Economy workers and young people not part of the IT world face a bewildering array of decisions: What to do, where to go and how to get the right training for a job they have a realistic opportunity to get. After years of workforce turmoil fueled by downsizing, globalization, dislocations in the rural economy, and the rise of the New Economy, many American families have personally experienced the 'back-to-school phenomenon' for some or all of the adults in the household. Probably nothing drives home that lifelong learning is becoming the norm so much as Mom or Dad or both doing their own homework after dinner, maybe even getting help from one of the kids for the knottier computer problems.

Third, it is clear from all we have heard that we need a much closer link between high school and post-high school education. At the same time, we know how much better the outcomes are when students have some work experience before and during the time that they making decisions about their future work lives. In short, we need to offer a seamless experience connecting high school, work, and post-high education. Every discussion of workforce issues must inevitably touch on education reform. The necessity of ensuring that students leave school prepared for the next steps in life is not the main focus of today's discussion or the work of the Commission. But it is a prerequisite if the Commission's recommendations for the IT arena are to be successful. As deficient as the K- 12 system may appear to us, there is tremendous progress being made by determined teachers and parents and institutions in many districts across the country.

A significant number of students see no relevance between their high school curriculum and their future career and educational decisions. One proven solution is to engage more students in work-based learning experiences, career awareness programs, and contextual learning opportunities. And students in work-based internships very quickly see the relevance of their studies to the opportunities in the job market. The hands-on experience is for many people the clincher: they have to do things to learn things. More good news of local initiatives that help to close the gap between high school and post-high work are the many examples of high schools offering 'digital literacy' programs. These programs introduce important tools of work and life to the many students who do not have home computers and promote competencies in word processing, database management, email, Internet, and financial software.

I have talked about the work of many individuals today - school leaders, activists, business leaders, and students. You will probably never hear their names in the national or even local news. Yet these individuals embody the value of leadership that is creative, risk taking and entrepreneurial. Their kind of leadership doesn't wait for a directive from 'On High,' sometimes they don't even wait for 'permission.' But this is the way things get done in America. It is our 'uniquely American' approach. It is the way our economy has created millions of new jobs. Ultimately, it is the way that far more individuals will cross the digital divide.