Presentation by Chris Engle from New Economy Strategeis

1. The Future of the Central Texas
Economy and Workforce
Globalization and the
Future of Education
Chris Engle
Chief Project Officer
New Economy Strategies, LLC
www.new-econ.com
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2. NES: Capacity Building for Innovation and Knowledge
Public Policy
Economic
Development
Workforce
Development
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3. NES has Worked with Global, National and Regional Clients
Government* Academic/NGO Institutions*
Global Global Universidad de Puerto Rico
National
Domestic
State Tennessee Michigan Iowa Indiana
Other
North Dakota Texas Utah Kansas
Entities
Regional
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* List without express examples only
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4. Our Recent Client in Philadelphia
Mission:
To accelerate the
transformation of the life
sciences industry in the
14-county tri-state region
into an internationally
recognized center for
excellence. DVIN will
attract resources to Goals/Activities:
support research, industry • Workforce Gap Analysis
and human capital • Education & Outreach
development. • Human Capital Development
• Regional Collaboration and
Knowledge Sharing
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5. Today’s Discussion
 Trends in Global Economy and Education
 Central Texas’ Future
 Impact on Jobs, Skills, and Education
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6. Core Question
What is the value of education?
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6

7. Career Earnings Growth By Age
$90,000
$80,600
$80,000
Higher education = higher starting salary + 45-64
$70,000 better ability to grow lifetime earnings
$60,000
35-44
$50,000
$40,000
$30,000 $28,500 25-34
$20,000
$10,000
18-24
$0
Not High Graduate, Some College Associate Bachelor's Bachelor's &
School including GED no degree degree degree More
Graduate
Earnings
+21% +23% +32% +24% +34% +49% Growth
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Age 30-60

8. Globalization Needs Higher Education
Well-educated
workers
thrive in a
global
economy
…But can also
be
threatened
by new
economic
models
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9. National Innovation Initiative CEO Survey
29%
How Does Innovation Occur
in your Company? 40%
- New Products
- Modified Products
- Copies of Competitors
- None of the above
26% 5%
Modifications or extension of existing products or product lines
Copies of competitors' products
Products that are new to the industry
None of the above
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10. Workforce
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11. Core Question
Are we succeeding in preparing
students for global realities?
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12. Educational Attainment is Falling Texas
Projected Percent of Labor Force by Educational
Attainment in Texas, 2000 and 2040
35
30.1
29.0 28.7
30 28.7
23.9
25
18.8 18.2
20
15 12.9
10
5.3
4.4
5
0
No High School High School Some College Bachelor's Graduate/Prof.
Diploma Graduate Degree Degree
2000 2040
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13. Education Trends in US
90%
Have we
reached the
top?
30%
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14. Concern is Demographic Trends
Texas is facing:
 Falling graduation rates
 Falling education levels
 Falling incomes
 Falling prosperity for Texas workers and competitiveness for
Texas industry
Cause: statistical impacts due to immigration and fertility trends
Perspective on “Progress” depends on how you draw the circle
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14

15. Materials may not be reproduced without express
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16. Demographics Influence Topline Statistics
On an individual level, each generation of families in Texas is more
educated than the previous generation.
% of Adults 18-24 with High School Degree
100%
95% 2001 2003 2005 2007
90%
?
85%
80%
75%
70%
65%
60%
55%
50%
White, non- Black Hispanic Asian
hispanic
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17. Shifts We Can’t Ignore
 Demographics
 Globalization of talent
 Threats to job security
 Multiple Career Changes over Lifetime
 Constant Transformation of Skills and
Knowledge
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18. Core Question
What should be Education’s
focus?
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19. Connecting Education to Economic Development
 High schools - STEM
 Community Colleges
 Universities
 On the Job Training
 Workforce Boards
 Interdisciplinary skills
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20. High Demand for Non-technical Skills in Tech Industry
Education Requirements (ONET) Education Requirements (ONET)
Current Occupation of Focus: Current Occupation of Focus:
15-1021 Computer programmers 17-2031 Biomedical engineers
15-1021.00 Rating 17-2031.00 Rating
(1-5) (1-5)
24 Programming 4.63 28 Science 4.44
7 Critical Thinking 4.58 26 Reading Comprehension 4.37
5 Complex Problem Solving 4.46 31 Speaking 4.36
3 Active Learning 4.27 35 Time Management 4.30
26 Reading Comprehension 4.22 4 Active Listening 4.12
13 Learning Strategies 3.98 34 Technology Design 4.12
22 Operations Analysis 3.97 12 Judgment and Decision Making 4.12
4 Active Listening 3.90 7 Critical Thinking 4.05
34 Technology Design 3.89 5 Complex Problem Solving 4.05
36 Troubleshooting 3.87 37 Writing 4.05
6 Coordination 3.54 36 Troubleshooting 4.04
35 Time Management 3.36 25 Quality Control Analysis 4.03
32 Systems Analysis 3.32 32 Systems Analysis 4.02
31 Speaking 3.27 22 Operations Analysis 3.89
9 Equipment Selection 3.15 13 Learning Strategies 3.85
25 Quality Control Analysis 3.13 3 Active Learning 3.81
10 Installation 3.12 17 Mathematics 3.81
17 Mathematics 3.08 9 Equipment Selection 3.62
12 Judgment and Decision Making 3.01 18 Monitoring 3.62
11 Instructing 2.96 15 Management of Material Resources 3.60
18 Monitoring 2.91 33 Systems Evaluation 3.56
27 Repairing 2.86 23 Persuasion 3.54
30 Social Perceptiveness 2.82 27 Repairing 3.51
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21. Skills & Competencies Transformation in Technology
From industry interviews, Future Demand for Skills and Competencies of
workers will be characterized as cross-disciplinary:
 Creative/People skills vs. pure Science
 Diversity of knowledge vs. Niche Specialization
 Entrepreneurial vs. Hierarchical
 Dynamic and Flexible vs. Static Job Descriptions
 Performance-based Compensation
 Career Lattices vs. Career Tracks
 Multiple jobs and companies
 Horizontal teamwork vs. Silo’d Research
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22. Change is Inevitable: WIBs Are Critical to Responding!
“It is not the strongest of species that
survive, nor the most intelligent, but
the ones most responsive to change.”
Charles Darwin
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23. Education Demands are Increasing
Fastest growing positions in U.S. will require Bachelor’s
and above. These will account for 30% of all new jobs.
2002-2012 2002-2012
Training level: % Growth New Jobs % Growth New Jobs
> Associate degree 26% 1.3 million 19% 1.1 million
Doctoral degree 25% 0.1 22% 0.4
Master's degree 22% 0.4 19% 0.4
Bachelor's degree 21% 3.6 17% 3.1
Bachelor's plus experience 20% 1.4 9% 0.6
First professional degree (MD/lawyer) 18% 0.3 14% 0.3
> Postsecondary vocational award 18% 1.1 14% 1.1
> Short-term on-the-job 14% 7.2 9% 4.6
> Work experience in a related occupation 11% 1.2 9% 1.3
> Moderate-term on-the-job 11% 3.1 7% 2.0
> Long-term on-the-job 9% 1.0 6% 0.7
But majority of new jobs
70%
require Associates or below.
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24. U.S. Occupational Forecast
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25. Top 10 Job Creators
1. Combined Food Preparation & Serving Wrkrs, Inc. Fast Food
2. Retail Salespersons
3. Waiters & Waitresses
4. Customer Service Representatives
5. Registered Nurses
6. Elementary School Teachers, Ex. Special Education
7. General & Operations Mgrs
8. Janitors & Cleaners, Ex. Maids & Housekeeping Cleaners
9. Executive Secretaries & Administrative Assistants
10. Office Clerks, General
Healthcare, teaching, and food will create most
new jobs and also see highest % growth
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26. Austin Economy Will Grow at a Slower Pace
Annualized Job Growth Rate, Austin 5-county metro
8%
6% Tech
Downturn
4% 2.5%
2%
0%
-2%
Today
-4%
-6%
1998 2000 2002 2004 2006 2008 2010 2012
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27. Long-Term Trends for Central Texas
Long-term trends in Austin point to a “normalization” with US
 Slower, more stable growth
 Less reliant on technology sectors
But Austin will remain at the front of the pack:
 Lower unemployment
 Tops in business rankings
 Growth 1.5-2x national average
 Faster growth than other Texas metros
 Technology focused on creative areas, not manufacturing
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28. Recent Growth Trends - 2007
Source: BLS, AngelouEconomics
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29. In-migration to Austin is a Big Factor in Future
Source: IRS,
AngelouEconomics
Austin keeps attracting educated young professionals – many of whom
bring a job with them
And retirees move here to get closer to their grandchildren!
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30. Best Job Opportunities
Fastest growing sectors:
 Software
 Digital media/film
 Medical device design/manufacture
 Warehousing / Distribution centers
 Tourism
 Back office
 Healthcare
 Childcare
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31. Best High-Wage Careers in Austin
Fastest growing professional/technical occupations (non-health):
 Actuaries
 Statisticians
 Network Administrators
 Computer Analysts
 Computer Engineers
 Database Administrators
 Biochemists, biophysicists
 NOT: accountants, lawyers, “physical” engineers, architects,
economists, semiconductor processors
 NOT: telemarketing, travel agents
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32. Policy Implications
In my humble opinion:
 Emphasize verbal communication and presentation skills in
school, not just books and tests
 Emphasize competencies as a career choice – easier to grasp
than picking a career or industry
 Teach Lifelong learning skills but test on-the-spot learning
 Teach how technology works
 Support arts education as complement to creative learning
 Get students in front of like-minded workers (professional,
technical, and non-technical)
 Teach entrepreneurship and business skills – how to create a
job and keep it !
 Recognize that college and STEM education still the best
outcome for a student, but can’t be the answer for everyone
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33. Thank you.
Questions / Comments to:
Chris Engle
Chief Project Officer
New Economy Strategies, LLC
www.new-econ.com
cengle@new-econ.com
512-280-1799
Materials may not be reproduced without express
written permission of New Economy Strategies, LLC.