National Institute for Literacy - Workforce Education

	Characteristics of the Workforce
	Corporate Concerns

	Workforce Education Programs
	Workforce Skill Requirements

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References

In 1999, the following percentages of the adult population age 25 and over had graduated from high school:

85% of non-Hispanic adults:

87.7% of non-Hispanic White adults;
84.7% of non-Hispanic Asian & Pacific Islander adults; and
77.4% of non-Hispanic Black adults.

56.1% of Hispanic adults.
(Newburger, p2, Table A)

In 1999, 85.9% of the native population age 25 and over had graduated from high school or more, compared to 65.7% of the foreign-born population age 25 and over.
(Newburger, p4, Figure 4)

In 2000, median earnings of workers age 25 and over with a:

master's degree were $55,300;
bachelor's degree were $46,300;
associate degree were $35,400;
some college, no degree were $32,400;
high school diploma were $28,800; and
some high school, but no diploma were $21,400.
(U.S. Department of Labor, Bureau of Labor Statistics, 2001, p1)

The National Adult Literacy Survey, 1992, found that with the exception of persons without a high school diploma or GED, annual earnings rose continuously across the literacy levels. The mean annual earnings of the employed population with 9-12 years of education were:

$12,420 at prose literacy Level 1;
$9,320 at Level 2;
$10,360 at Level 3; and
$8,580 at Level 4.

The mean annual earnings of the employed population with a high school diploma were:

$14,570 at prose literacy Level 1;
$15,880 at Level 2;
$17,530 at Level 3; and
$19,300 at Level 4.

The mean annual earnings of the employed population with some postsecondary education were:

$17,120 at prose literacy Level 1;
$17,580 at Level 2;
$19,670 at Level 3;
$21,110 at Level 4; and
$23,020 at Level 5.
(Sum, 1999, p124, Table 4.7)

In 2000, the unemployment rate of workers age 25 and over with a:

master's degree was 1.6%;
bachelor's degree was 1.8%;
associate degree was 2.3%;
some college, no degree was 2.9%;
high school diploma was 3.5%; and
some high school, but no diploma was 6.5%.
(U.S. Department of Labor, Bureau of Labor Statistics, 2001, p1)

A comparison of the employment status of high school graduates and high school dropouts in 2000 found the following:

69.7% of high school graduates were employed, compared to 48.9% of high school dropouts;
10.5% were unemployed, compared to 19.2% of high school dropouts; and
19.7% were not in the labor force, compared to 32.0% of high school dropouts.
(Snyder, 2002, p445, Figure 25)

The education and training requirements of the 2000-2010 projected total job openings, due to growth and net replacement are:

69.8% of jobs will require work-related training

42.7% short-term on-the-job training;
15.1% moderate on-the-job training;
6.5% long-term on-the-job training; and
5.55% work experience in a related occupation.

20.9% will require a bachelor's degree or higher, and
9.3% will require an associate's degree or postsecondary vocational award.
(Hecker, 2002, p83, Table 6)

A comparison of the literary requirements of projected high-growth occupations in 2005 (for example, math, computer, and other natural scientists), with declining occupations (such as fabricators, assemblers, and inspectors), found the following:

the weighted mean proficiency requirement for new jobs in projected high-growth occupations is 301 (Level 3);
the weighted mean proficiency for lost jobs in declining occupations is 252 (Level 2)
(Sum, 1999, p94, Table 3.14)

A number of national and state organizations in the U.S., including the National Governor's Association, have identified Level 3 proficiency as a minimum standard for success in today's labor market. Findings from the International Adult Literacy Survey indicate that only half of the U.S. adult population 16-65 years of age reached Level 3.
(Sum, 2002, p.11, Table 5)

Small business owners in the "Voices from Main Street: Assessing the State of Small Business Workforce Skills" thought that the following skills were very important:

86% - verbal communication skills
77% - interpersonal skills
62% - math skills
59% - written communication
52% - basic business skills
46% - financial accounting
43% - mechanical ability
41% - computer skills
18% - Internet knowledge
18% - science
(American Express, Small Business Services, p12)

The National Association of Manufacturers 2001 members' survey asked employers about the most serious skill deficiencies of current hourly production employees. They found that:

59.1% of employers stated poor basic employability skills (attendance, timeliness, work ethic, etc.);
32.4% poor reading/writing skills;
26.2% inadequate math skills;
25.0% an inability to communicate;
23.7% poor English language skills;
22.1% an inability to read and translate drawings/diagrams/flow charts;
22.0% an inability to work in a team environment; and
12.3% poor computer/technical skills.
(National Association of Manufacturers, p11, Figure 4)

The American Management Association's (AMA) study, "Corporate Concerns," found that companies ranked developing and improving workforce skills as the 8th most important corporate concern out of a possible 25 issues in 2001, compared to 9th out of 25 in 2000 and 1999.
(American Management Association, p1)

The "Voices from Main Street: Assessing the State of Small Business Workforce Skills" 2000 survey found that:

34% of small business owners were extremely or very satisfied with the skills and education of employees and prospective employees.
(American Express, Small Business Services, p11)
65% said that improving the quality of workforce skills and education was very important.
(American Express, Small Business Services, p2)

The Educational Quality of the Workforce National Employer Survey conducted in 1994 found the following:

32% of establishments said 75% or less of their workforce are fully proficient,
21% believe that greater than 75% and less than or equal to 85% of their workforce are proficient,
27% believe that greater than 85% and less than or equal to 95% of their workforce are proficient, and
19% believe that more than 95% of their workforce is proficient.
(Zemsky, p3)

The 2001 American Management Association (AMA) Survey on Workplace Testing found the following:

11% of respondent firms tested all job applicants in math skills, and
38% of respondent firms tested some job applicants in math skills.

14% of respondent firms tested all job applicants for literacy skills, and
35% of respondent firms tested some job applicants in literacy skills.

41% of respondent firms tested some job applicants for basic skills.

34.1% of applicants tested by respondent firms lacked the skills necessary to perform the jobs they sought.
84.6% of the respondent firms did not hire skill-deficient applicants;
3.5% hired skill deficient applicants and assigned them to obligatory remedial training;
3.0% hired them and offered voluntary remedial training; and
8.2% took other action.
(American Management Association, p1)

The National Association of Manufacturers 2001 members' survey asked employers about their reasons for rejecting applicants for hourly production positions.

31.6% stated inadequate reading/writing skills;
17.5% inadequate oral communication skills; and
20.7% inadequate math skills.
(National Association of Manufacturers, p8, Figure 3)

The National Center on the Educational Quality of the Workforce found that productivity increases for each of the following factors:

a 10% increase in the average education of all workers* is associated with a productivity increase of 8.6%;
a 10% increase in hours results in a productivity increase of 5.6%; and
a 10% increase in capital stock results in a productivity increase of 3.4%.

a 10% increase in the average education of all workers* is associated with a productivity increase of 11%;
a 10% increase in hours results in an increase of 6.3%; and
a 10% increase in capital stock results in an increase of 3.9%.
(National Center on the Educational Quality of the Workforce, p2)

*Equivalent to slightly more than one additional year of schooling.

In a study on the economic benefits of the workplace, 98% of employers reported that with Workplace Education Programs, employees gained at least one skill and there was at least one organizational benefit.
(Bloom, p6)

The National Association of Manufacturers 2001 members' survey found that:

7.0% of employers offered advanced math education opportunities;
8.6% basic reading and writing;
9.3% GED;
13.3% diversity awareness;
14.5% ESL;
15.8% basic math;
19.0% verbal communication;
19.7% formal apprenticeship programs;
22.9% interpersonal skills;
25.1% problem solving;
28.7% customer service;
33.5% teamwork/leadership;
37.1% certification training for various technical degrees/licenses;
39.6% continuing education for technical/professional personnel;
54.3% computer skills;
60.6% tuition reimbursement for undergraduate or graduate programs;
64.2% specific skills for a particular job.
(National Association of Manufacturers, p17, Figure 11)

The 2000 survey "Voices from Main Street: Assessing the State of Small Business Workforce Skills" found that 40% of small businesses were aware of local workforce skills improvement programs, and 38% of small businesses participated in local workforce skills improvement programs.

Of the small businesses participating in local workforce skills improvement programs:

37% worked with community colleges;
29% with vocational schools;
24% with public schools;
15% with private colleges or universities;
10% with business associations;
7% with private schools;
2% with government agencies;
2% with private consultants and training agencies; and
6% with other agencies.
(American Express, Small Business Services, p20)

A traditional part of the community college mission, workforce development at two-year colleges is the fastest growing area of college services in many states. A 50-state survey of community college funding found the following regarding the funding of workforce development programs in community colleges in 42 states:

19 states used state funds from their community college appropriation;
32 states used funds from other state agencies (these include state departments of labor, vocational education, economic development, commerce, and human resources); and
31 states used nonstate funds (including federal sources such as Perkins funds and dollars from the Workforce Investment Act, Title III, and Adult Basic Education; public sources from local communities; and private sources such as foundations).
(Center for Community College Policy, p32, Table 19)

The 1995 Survey of Employer-Provided Training found that occupational safety training was the most commonly received type of general-skills training in the workplace.

58.0% of employees had received formal occupational safety training, and 42.8% had received it in the past 12 months;
40.2% received formal communications, employee development, and quality training, and 22.8% had received it in the past 12 months; and
6.7% had received formal basic skills training, and 2.3% had received it in the past 12 months.
Employees received 2.4 hours of formal occupational safety training from their current employer, of which 0.6 hours were in the past 12 months;
2.6 hours of formal communications, employee development, and quality training, of which 1.5 hours were in the past 12 months; and
0.3 hours of formal basic skills training, of which 0 hours were in the past 12 months.
(U.S. Department of Labor, Bureau of Labor Statistics, 1996, p12, Table 1)

The Educational Quality of the Workforce National Employer Survey, 1994, found that establishments were engaged in the following training activities:

25.1% in literacy/numeracy training;
47.5% in tuition reimbursement;
51.5% in computer literacy;
51.5% in Equal Employment Opportunity (EEO) or diversity/sensitivity;
54.9% in team work or problem solving;
62.7% in executive development;
65.3% in line supervisory skills;
68.3% in sales or customer service;
68.5% in cross-training;
68.5% in production or equipment;
73.9% in new worker orientation;
76.1% in new methods/procedures; and
81.2% in health and safety.

Less than 20% of employers in the business services, retail, or construction sectors offered literary, numeracy, and basic education training;
More than 50% of employers in utilities, finance, insurance, and primary metals offered this type of training.
(Lynch, p12)