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Industrial Education Magazine [Presidential By-Line] 2/15/90 [OA 6894]
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Industrial Education Magazine [Presidential By-Line] 2/15/90 [OA 6894]
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26
19
6
4
Lange/Cawley
February 12, 1990
[VOCED.DOC]
PRESIDENTIAL BY-LINE: INDUSTRIAL EDUCATION MAGAZINE
AS?
If you're a reader of this magazine, you're already standing
on the front line of America's fight for a competitive future.
You provide the skills that make America strong.
More than ever before, all of our industries -- whatever
their combination of goods and services -- will rely on a skilled
workforce to get the job done. And the people these businesses
will need to keep America strong in the future, are relying on
you for skills today.
The long-awaited "Baby-bust" is already being felt in a
number of key industries. In some regions, managers are already
scrambling to keep enough talent on the line, behind the counter,
and in the field.
As we approach the new century, there is a serious
possibility that the number of jobs created will outstrip the
number of qualified people available to fill them.
XXX//
More than half of these new jobs will require a year or more
study beyond high school. Our working men and women will need
Workforce 2000 Booklet
stronger job skills; stronger basic skills in reading, writing,
and computing; and above all, the adaptability to be trained and
retrained as technology advances and jobs change.
21vew
workere 30 current
Some estimate that more than 50 million people will need
some kind of vocational training between now and the end of the
century. That challenge -- America's competitive challenge --
rests squarely on the shoulders of those committed to excellence
in vocational and technical education. Your work is building a
better America.
"Human capital "Article Business -
Because of this administrations's conviction that education Week p.104
9/19/88
is so crucial, we've placed special emphasis on reform for the
nation's schools. We are raising our standards -- and our
expectations. Encouraging choice. Promoting flexibility. And
improving the accountability of teachers for what they teach,
students for what they learn, and institutions of all kinds, for
the results they attain.
Although the federal financial role in vocational education
is relatively small, we think federal leadership can help point
the way toward more effective programs. That's why we sent the
Vocational Education Excellence Act of 1989 to the leaders in
TomJohns
Congress: to improve the Perkins Act, which sets the tone for
DEP FEA.
basic vocational education assistance to the states.
Education ofc. 762-2237
Vocational Ed. Excellence Act of 1989
Section - by - Section Analysis
(Dept of Ed. fax)
The bill we offered would improve the Perkins Act in sevèral
areas:
To encourage accountability, we're encouraging states to set
specific goals for students, in areas like basic skills and job-
market success and we're calling for states to use those goals
to determine which programs are measuring up.
To allow for more flexibility, and to streamline and
simplify wherever possible, we're emphasizing greater state and
local control over how federal funds are spent.
To ensure program improvement, beyond just maintaining
ongoing programs, we're calling for action in three areas:
curriculum development; acquisition of instructional equipment;
and the professional development of teachers, counselors, and
administrators.
And finally, our bill includes new provisions to ensure that
Perkins Act funds are closely tied to state and local economic
development. We believe vocational training funds should only
train students for jobs where openings are projected -- and that
vocational education programs should be coordinated with each
state's overall economic and job training strategy.
But as much as we work to improve vocational education from
the federal level, the real work will be done by educators like
yourselves: the administrators and teachers of this nation's
crucial technical and vocational programs.
So I'd like to encourage you to think about ways to
integrate vocational education with your school's traditional
curriculum -- and seek out new partnerships with the private
sector. Business leaders can keep you in touch with the needs of
the marketplace, help you set goals, and provide expertise and
role models for the students you teach. By working with the
business community, you can ensure that your programs are
producing the kinds of graduates America needs to succeed.
The work you do has profound consequences for our economic
future. But along with our productivity, competitiveness, and
the rising standards of living Americans depend on and deserve,
there is another reason to make sure our vocational and technical
education is second to none.
As labor markets get tighter -- and businesses turn to
sources of talent once left untapped -- vocational education can
bring a vast array of individuals into the mainstream of the
American dream.
That means new success stories for dropouts, who see no
opportunities. For youth at risk, who don't see the connection
between school and work. For the underskilled, who need
training. For older and more experienced workers, who need new
skills. For the disabled, who only need a chance to prove their
abilities. For dual-career families, who need flexibility. And
for dislocated workers, who need to be retrained as jobs change.
It is crucial that vocational education enlist and develop
the unlimited potential of these individuals. Their advancement
gives us a two-fold advantage: in our competitive position in
the marketplace -- and in our belief that a free society is based
on opportunity.
Every day, your work is providing opportunity for millions.
In the coming years, it will be even more crucial for millions
more. Working together, we can ensure that the skills you
provide America's working men and women are nothing less than
world class.
get rid of "vocational"
Runby :
Beb Jones
(6050
Asst See for
Emp { Training
1989-279
Eligabeth Khachigian
02/15/90
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002
VOCATIONAL EDUCATION EXCELLENCE ACT OF 1989
Section-by-Section Analysis
Section 2. Section 2 of the bill would amend in its
entirety the Carl D. Perkins Vocational Education Act (20 U.S.C.
2301 et seq.). The purpose of these amendments is to improve the
operation of vocational education programs under current law by
promoting accountability, increasing flexibility in the
administration of these programs, reducing administrative
burdens, fostering economic development, and improving vocational
education personnel.
Proposed amendments to the Perkins Act will be referred to
in this document as "the proposed Act". These proposed
amendments are as follows:
Section 1 of the proposed Act would include the short title
of the proposed Act and the table of contents.
Section 2 of the proposed Act identifies the major purposes
of the proposed Act. These purposes include assisting States to
improve vocational education programs, with particular emphasis
on serving special populations (described in section 201(b) of
the proposed Act); strengthening the accountability of vocational
education programs; improving the academic foundation of
vocational education; and authorizing national programs to
support research, demonstrations, information dissemination, and
bilingual vocational training.
Section 3 of the proposed Act would authorize appropriations
through fiscal year 1994. This section would authorize specific
amounts for fiscal year 1990 and such sums as may be necessary
for fiscal years 1991 through 1994. Specific authorizations for
fiscal year 1990 are: $48,000,000 for State administration of
vocational education programs (as authorized in section 102(a) of
the proposed Act); $8,000,000 for State councils (as authorized
in section 112 of the proposed Act); $858,387,000 for basic State
grant programs under title II of the proposed Act; and
$35,000,000 for national programs under title III of the proposed
Act.
02/15/90
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003
Section 4 of the proposed Act defines terms used in the
proposed Act. These definitions are very similar to those used
in current law; however, for clarification, the term
"disadvantaged individuals" would no longer include individuals
with limited English proficiency, since these individuals
comprise a special population for purposes of title II of the
proposed Act. The section would also delete, as no longer
necessary, definitions for "area vocational education school,"
"career guidance and counseling," "construction," "Council,"
"economically disadvantaged family or individual," "private
vocational training institution," "school facilities, "State
educational agency, and "vocational student organizations."
TITLE I--VOCATIONAL EDUCATION ASSISTANCE TO THE STATES
PART A--ALLOTMENT AND ALLOCATION
Section 101 of the proposed Act would allot to various
program authorities the sums appropriated under section 3 of the
proposed Act. Section 101(a)(1) of the proposed Act would
reserve for the Indian vocational education program (under
section 103 of the proposed Act) 1.25 percent of the sums
appropriated for the basic State grant program. This is the same
percentage as Indian programs receive under current law. Funds
would no longer be set aside for special programs for Hawaiian
Natives. Services for Hawaiian Natives could be provided with
funding from the basic State grant to Hawaii.
Section 101(a)(2) of the proposed Act would allot to each
State for each fiscal year the remainder of the sums appropriated
for basic State grant programs. Fifty-seven percent of these
sums would be allotted to each State based on the ratio that the
number of persons aged 15 to 55 in poverty in the State bears to
the total number of such individuals for all the States. The
remaining 43 percent of the sums for the basic State grant
program would be allotted to each State based on the ratio that
the product of its population aged 15 to 55 and the State
allotment ratio bears to the total of such product for all the
States. This allotment formula would direct Federal funds to
States in a manner that more accurately reflects the purposes for
which the States will use these Federal funds. The age cohort
proposed to be applied more accurately reflects the vocational
education population that will receive services than do the
cohorts and weights in current law.
Section 101(a)(3) of the proposed Act would provide that for
each fiscal year each State would receive at least 95 percent of
the amount it received for the basic State grant program for the
preceding fiscal year; if appropriations are insufficient to
provide for this "hold harmless" provision, funding for each
State would be ratably reduced.
-2-
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Section (b) of the proposed Act would authorize the
Secretary to reallot funds not required by a State.
Section 101(c) of the proposed Act would adjust the
allotment ratio for each State on the basis of that State's per
capita income. Funding would be allotted in inverse proportion
to income, SO that the poorer States would receive a greater
proportion of funds. This section would remove the moderating
constraints on the allotment ratio formula in current law, so
that, under the proposed Act, relatively more funds would be
allotted to poorer States.
Section 102(a) of the proposed Act would authorize the
Secretary to make awards to each State for State administration
in direct proportion to that State's allocation under the basic
State grant. This is a departure from current law, which permits
States to reserve up to seven percent of the basic State grant
allocations for State administration. This change is proposed in
order to sever the direct relationship between the appropriation
for basic State grants and the amount available for a State's
administrative activities. As in Chapter 1 of the Elementary and
Secondary Education Act, funding for State administration would
be determined annually through the appropriations process. There
is no evidence that the cost of administrative activities varies
directly with the amount of funds available to support programs
and services. Funding for State administration would include the
cost of carrying out activities of the "sex equity coordinator"
established in current law. In a change from current law, funds
provided under the proposed Act for State administration would
not need to be matched.
Section 102(b) of the proposed Act would require States, as
under current law, to reserve 57 percent of their basic State
grants to provide vocational education programs designed to meet
the needs of a variety of special populations and 43 percent to
improve or expand vocational education programs.
Section 103 of the proposed Act would authorize the
Secretary to make awards to eligible tribal organizations of
Indian tribes to conduct vocational education programs.
Activities authorized by this section would be conducted in
accordance with the Indian Self-Determination Act and the
Johnson-O'Malley Act. Section : 103 of the proposed Act would also
provide that Indian vocational education programs under this
section would be in addition to such other programs as are made
available to eligible Indians under other provisions of the
proposed Act. Provisions of current law requiring the Bureau of
Indian Affairs to maintain expenditures for vocational education,
to match the appropriation for the Perkins Act Indian program,
and to develop a joint plan with the Department of Education
would not be resuthorized. The proposed Act would also not
-3-
02/15/90
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DEPT OF EDUC
005
reauthorize the requirement that the Department of Education
transfer funds to the Bureau of Indian Affairs. These provisions
are either unnecessary or an unwise restriction of administrative
flexibility. In addition, the match requirement has been
overridden annually by appropriations language.
PART B--STATE ORGANIZATIONAL AND PLANNING RESPONSIBILITIES
Section 111 of the proposed Act would set forth requirements
of State administration under the proposed Act. Section 111(a)
of the proposed Act would require, as in current law, that any
State desiring to participate in vocational education programs
under the proposed Act would be required, as in current law, to
establish or designate a State board. The State board's
responsibilities would include, for example, coordinating the
development and implementation of the State plan, consulting with
the State council for vocational education, and adopting
procedures for coordination with the State job training
coordinating council. These responsibilities could be delegated
to other State agencies.
Section 111(b) of the proposed Act would require that each
participating State assign a person to work full-time to assist
the State board in eliminating sex-role stereotyping from
vocational education programs under the proposed Act. The
responsibilities of this individual, essentially unchanged from
current law, would include administering the vocational education
programs for single parents, homemakers, and single pregnant
women, as well as programs designed to eliminate sex bias;
gathering, analyzing, and disseminating relevant data; reviewing
programs for sex stereotyping or bias; providing technical
assistance; and developing recommendations to the State board.
Each State would be required, as in current law, to spend at
least $60,000 annually to carry out the provisions of this
proposed section.
Section 111(c) of the proposed Act would require, as under
current law, that the State board make available to private
industry councils a list of all the programs assisted under the
proposed Act.
Section 111(d) of the proposed Act would authorize (rather
than mandate, as in current law) the establishment of one or more
technical committees to advise the State council and the State
board on the development of model curricula to address the
State's labor market needs.
-4-
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006
Section 111(e) of the proposed Act defines a State-imposed
requirement under the proposed Act. No change has been made from
current law.
Section 112 of the proposed Act provides for the
establishment of & State council to advise the State board and
the Governor on the development and implementation of the State
plan. Under provisions more flexible and less prescriptive than
those in current law, membership on the council would be required
to be broadly representative of those interested in vocational
education including representatives of educational institutions
and the private sector). Due consideration would continue to be
given to appointing individuals serving on a private industry
council. The proposed Act would add, to the already wide range
of responsibilities the State councils may exercise under current
law, the provision that the council may advise the State board on
the performance standards it proposes to employ. Unlike current
law, however, the Governor would be authorized to assign the
functions and responsibilities of the State council to the State
job training coordinating council, provided that the latter
council has an adequate number of members knowledgeable about
vocational education and that assistance available under the
proposed Act is available to the State job training coordinating
council only to carry out the functions authorized by the
proposed Act. These changes are designed to promote the
necessary close coordination between programs under the Job
Training Partnership Act and vocational education programs.
Section 113 of the proposed Act would set forth State plan
requirements for any State desiring to participate in the
vocational education programs under the proposed Act. Under
section 113(a) of the proposed Act, State plans, which would span
a two-year period, would have to be developed with the input of
the State council and the public, although formal public hearings
would no longer be required. In developing the State plan, the
State would be required, for example, to assess current and
projected needs for occupational skills within the State, the
vocational education needs of the special populations described
in section 201(b) of the proposed Act, the quality of vocational
education, and the capacity of educational institutions to
deliver needed vocational education services. In a change from
current law, the State would be required to include a summary of
the findings of these assessments in its plan.
Section 113(b) of the proposed Act would describe the
required contents of the State plan, emphasizing those provisions
most needed to assess performance and provide accountability at
the State and local levels. For example, the State plan would
have to describe how the planned uses of funds would address the
-5-
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needs assessed for improved vocational education (as identified
under section 113(a) of the proposed Act). The plan would also
have to describe the performance standards the State will use for
determining the achievement of basic academic skills,
occupational competency, and success in the labor market, as well
as the State's procedures for applying those performance
standards, and, in subsequent plans, the State's success in
implementing and applying these standards.
Section 113(b) of the proposèd Act would also require States
to set forth their criteria for approving applications and
allocating Perkins Act funds. These criteria would ensure that
individuals most in need are served. This provision would
replace a requirement in section 113(b)(7) of the current Act
that pertains only to programs for single parents, homemakers,
and single pregnant women. The State would also be required to
describe how the funds available under the proposed Act would be
used to serve economically depressed areas; this would amend
current law, which requires that the States allocate the majority
of their funds to economically depressed areas. Section 113(b)
of the proposed Act would require States to describe how their
performance standards under the proposed Act are compatible with
standards in effect under the Job Training Partnership Act.
Finally, section 113(b) of the proposed Act would add a new
requirement that States describe their procedures for ensuring
that funds expended for occupationally specific training would
only be used to train students for occupations in which jobs are
projected and are not likely to be filled without the
establishment or continuation of public vocational education
programs.
Section 113(c) of the proposed Act would require the State
plan to contain several assurances regarding such areas as
equitable participation of students enrolled in private schools
(a provision broadened from current law), distribution of funds,
evaluation, and proper fiscal and administrative procedures.
Each plan would also include a new assurance that projects and
services in the basic State grant program are of sufficient size,
scope, and quality to give reasonable assurance of meeting the
objectives of the proposed Act, as well as the current
"supplement, not supplant" assurance.
Section 113(d) of the proposed Act would set forth
requirements for amending the State plan. Section 113(e) of the
proposed Act authorizes the Secretary to establish, through
regulations, minimum requirements for performance standards.
Section 114 of the proposed Act would set forth provisions
for Secretarial approval of the State plan and amendments to the
State plan. This section would require submission of the State
plan to the Governor (rather than the State legislature, as
provided in current law) as well as the State council and
-6-
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008
the State job training coordinating council. This would direct
review of the State plan to the official responsible for
coordination of all economic development efforts within the
State. In another departure from current law, the Secretary
would not approve a State plan meeting the requirements of
section 113 of the proposed Act unless that plan gave reasonable
assurance of meeting the objectives of the proposed Act,
including the objective of developing and applying program
performance standards.
Section 115 of the proposed Act would require that eligible
recipients submit to the State board an application describing
the vocational education programs to be funded, the specific
performance results to be achieved, and coordination efforts, as
well as any other information required by the State board that is
needed for the board to carry out its functions under the
proposed Act.
PART C--FEDERAL ADMINISTRATIVE PROVISIONS
Section 121 of the proposed Act would direct the Secretary,
as in section 501 of current law, to pay the Federal share of the
costs of carrying out the State plan as well as the costs of the
State council.
Section 122 of the proposed Act would provide that the
Federal share of the costs of State administration and of the
State councils in each fiscal year would be 100 percent. For
each fiscal year, the Federal share would not exceed 50 percent
for the costs vocational education programs under title II.
This section would also standardize the Federal share that could
be used to pay for the costs of the vocational education programs
for the special populations described in section 201(b) of the
proposed Act (rather than the varied Federal share in section 502
of current law).
Section 123 of the proposed Act would provide for full
payments to a State if the State maintained 90 percent of its
fiscal effort in providing vocational education as compared with
the prior year's expenditures. The Secretary would be directed
to decrease payments to a State not meeting the "maintenance of
effort" standard only in direct proportion to the State's failure
to maintain its 90-percent level. These provisions would replace
language in current law prohibiting the Secretary from making
payments to a State unless that State's expenditures had been
maintained at the 100 percent level. This section would also
provide for a one-year Secretarial waiver if granting that waiver
would be equitable.
-7-
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TITLE II--BASIC STATE GRANTS FOR VOCATIONAL EDUCATION
PART A--VOCATIONAL EDUCATION OPPORTUNITIES
Sections 201(a) and (b) of the proposed Act would authorize
States to use 57 percent of their allotments reserved for part A
of title II of the proposed Act. These funds could be used to
provide vocational education programs designed to meet the
special needs (as identified in the State's plan), and to enhance
the participation of, the following "special populations":
handicapped individuals; disadvantaged individuals; individuals
of limited English proficiency; individuals who are single
parents, homemakers, or single pregnant women; individuals who
participate in programs designed to eliminate sex bias and
sterectyping in vocational education; and criminal offenders who
are in correctional institutions.
Section 201(b) of the proposed Act would add individuals of
limited English proficiency to the group of special populations
served under the current Perkins Act, and would remove the
current law's set-aside for any adults who are in need of
training and retraining, in order to target vocational education
opportunity funds more specifically on individuals who are at
risk of educational failure or who have not, in the past, been
served equitably by vocational education programs.
In a significant departure from the current Perkins Act,
States would not be constrained to make available to each special
population a fixed percentage of funds available to the States
under this proposed part. The proposed Act would remove the
allocation requirements in sections 202 and 203 of current law.
Instead, the State, in its plan, would have to identify the uses
of funds under part A, the goals the State seeks to attain for
part A populations, and how the uses of funds will address the
needs identified. This approach will increase flexibility to the
States, while continuing to ensure that funds for special
populations are used for the benefit of those populations.
Section 201(c) of the proposed Act would authorize States to
use funds designated for handicapped individuals for:
(1) supplemental staff, equipment, materials, and services needed
to enable handicapped individuals to participate in vocational
education programs; (2) activities that supplement services
provided under the individualized education programs of
handicapped students enrolled in secondary schools; and (3) other
activities that would improve vocational education opportunities
for individuals with handicaps.
Section 201(d) of the proposed Act would authorize States to
use funds designated for disadvantaged individuals for:
(1) supplemental staff, equipment, materials, and services needed
to enable disadvantaged individuals to participate in vocational
education programs; (2) transportation, child care, and other
ancillary services for economically disadvantaged individuals;
-8-
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(3) supplementary basic skills instruction for educationally
disadvantaged individuals; and (4) other activities that will
improve vocational education opportunities for disadvantaged
individuals.
Section 2010 (e) of the proposed Act would authorize States to
use funds designated for individuals of limited English
proficiency for: (1) supplementary English instruction to enable
secondary and postsecondary students of limited English
proficiency to participate in regular vocational education
programs; (2) bilingual vocational education for individuals who
are out of school and have entered, or are preparing to enter,
the labor market and who need additional training; and (3) other
activities designed to expand vocational education opportunities
for youth and adults of limited English proficiency.
Section 201(e) of the proposed Act would require that all of
these programs be designed to enable individuals of limited
English proficiency to progress effectively through regular,
English-speaking, vocational education programs or, if
instruction is provided in a separate setting, to enter regular
programs a quickly as possible. Instruction could be provided
entirely in English or, to the extent necessary, in the
appropriate native language.
Section 201(f) of the proposed Act would authorize States to
use funds designated for single parents, homemakers, or single
pregnant women for: (1) vocational education and training
activities that will furnish eligible participants with
marketable skills; (2) assistance to eligible recipients to
expand vocational education services when this expansion directly
increases the eligible recipients' capacity for providing
marketable skills; (3) assistance with child care, transportation
services, or organizing and scheduling programs 30 that such
programs are more accessible; (4) informing single parents,
homemakers, or single pregnant women of vocational education
programs and related support services; and (5) other activities
to improve vocational education opportunities.
Section 201(g) of the proposed Act would authorize States to
use funds designated for individuals who participate in programs
designed to eliminate sex bias and stereotyping in vocational
education for: (1) programs, services, and activities to
eliminate sex bias and stereotyping in secondary and
postsecondary vocational education; (2) vocational education
programs, services, and activities for girls and women, aged 14
through 25 (unless the age limitation is waived) designed to
enable the participants to support themselves and their families;
(3) support services, including dependent-care services and
transportation; and (4) other activities designed to eliminate
sex bias and stereotyping from vocational education or to enable
women and men to move into occupations that are nontraditional
for their gender.
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001
ADULATION OF FREE DEPA ATION
UNITED STATES DEPARTMENT OF EDUCATION
OFFICE OF THE ASSISTANT SECRETARY
UNITED STATES at AMERICA
FOR VOCATIONAL AND ADULT EDUCATION
FAX COVER SHEET
TO:
Caro lyn Cawler
White House - Speech writing
FROM:
Tom Johns
PAS, OVAE , Dept of ED
Name of sender: Ava Law
Telephone number of sender: 732-2243
Number of pages including cover sheet: 10
Our fax number is: (202) 732-3897
Your fax number is: 456-6218
02. 15. 90 11:28 AM *OFC OF ASST SECT-ETA - P 0 1
U.S. Department of Labor
Assistant Secretary for
Employment and Training
Washington, DC 20210
SECURITY
FAX TRANSMITTAL SHEET
TO: CAROLYN - SPEECHWILTING
FROM: ELIZABETH KHACHIGTAN
DATE: 2/15/90
TIME:
1030am
RECEIVER TELECOPIER 1
456 - 6218
TRANSMITTAL TELECOPIER # 202-523-6827
PAGES TO FOLLOW
23
400 P. 104 FOR TRAINING / RETRAINING STAT.
-EK
02. 15. 90 11:28 AM *OFC OF ASST SECT-ETA P02
BusinessWeek
AMcGRAW BOLL PUBLICATION.
UMAN
TAL
The Decline of America's Work Force
T
he nation's ability to
And as the economy comes
compete is threatened by
to depend more and more on
inadequate investment in our
women and minorities, we
most important resource:
face a massive job of education
people. Put simply, too many
and training-starting before
workers lack the skills
kindergarten. Can we
to perform more
afford it? We have
demanding jobs.
no choice.
PAGE 100
"Reprinted from the September
19, 1988 issue of Business Week
by special permission. (c) 1988 by
McGraw-Hill, Inc. "
02. 15. 90 11:28 AM *OFC OF ASST SECT-ETA P03
NEEDED: HUMAN
Who will do America's work as
Take a trip back to what
may be our future. It is
the demand for skilled labor
the 1851 industrial exhi-
bition at the Crystal
outstrips a dwindling supply?
Palace in London. Brit-
ain is the dominant
The U.S. has lost much ground
world power. The U.S.
is No. 2 in industry and
to competitors, and investing
catching up fast.
Made-in-America reapers, muskets, and tools are
the marvels of the show. British businessmen are
in people looks like the way to
amazed at what they see. Products are assembled
from completely interchangeable parts. Here is
retake it. After years of
true mass production for the first time. So im-
pressed are they that they name it "the American
neglect, the problem of human
system of manufacture."
Worried delegations of British industrialists set
capital has become a crisis
sail to investigate. Their findings? American manu-
100
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CAPITAL
facturing prowess is in large part due to a highly
afflicting the U.S. economy. The $150 billion yearly
educated work force. The Yankees have an aston-
trade deficit and 8 foreign debt of half a trillion
ishingly high literacy rate of 90% among the free
dollars reflect the inability of a large percentage of
population. In the industrial heartland of New En-
the American work force to compete effectively in
gland, 95% of adults read and write. In contrast,
an integrated world economy. "Much of the success
just two-thirds of the people in Britain are literate.
of Japan stems from the fact that its blue-collar
BLINDSIDED. Now zip ahead a century or so to the
workers can interpret advanced mathematics, read
1980s. The U.S. is the dominant world power, and
complex engineering blueprints, and perform so-
it is Japan that is No. 2 and closing fast. American
phisticated tasks on the factory floor far better
CEOs marvel at the quality of Japanese products
than blue collars in the U.S.," says Merry I. White,
flooding their markets. They make pilgrimages to
professor of comparative sociology at Boston Uni-
Tokyo. Their findings? Manufacturing superiority
versity and author of The Japanese Educational
is being forfeited to the Japanese. And yes, once
Challenge.
again, behind the success in manufacturing prow-
America, in short, has been scrimping on human
ess lies a better-educated work force. In 1988, Ja-
capital. After trying to solve its serious competi-
pan's functional literacy rate is better than 95%: In
tiveness problems by pouring hundreds of billions
America it's down to about 80%.
of dollars into capital equipment, the country is
Illiteracy is but a symptom of the larger problem
discovering that it has been blindsided when it
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comes to workers. Corporate restructur-
even a smidgen higher than what busi-
world, but elementary and high schools
ing and a sharply cheapened dollar may
ness spent on plant and equipment. But
are another story. The U.S. gets a lot
have arrested the economic decline, but
from 1971 to 1985 things changed drasti-
less for its education buck than do Japan
investing in people is turning out to be
cally. Dollars for education increased at
and Europe. U.S. students attend class
the only.way to reverse it
a rate of just 2.7% in real terms, the
180 days a year. French and German
Society's failure to invest is already
same rate as GNP growth but 1,5 per-
kids go 220 days, and Japanese children
haunting the business community.
centage points below the spending rate
spend 240 days in school a year. Ameri-
Chemical Bank in New York must inter-
for capital investment.
can high school students score below
view 40 applicants to find one who can
And 8 good part of the money spent
both their foreign counterparts in inter-
be successfully trained as a teller And
on education has not gone to those who
national math and science tests, They
IBM Corp. discovered after installing mil-
teach the nation's young. Excluding ad-
test two to three years behind the Japa
lions of dollars worth of fancy comput-
ministrative and capital cost from school
nese, neatly matching the difference in
ers in its Burlington (Vt.) factories that
budgets, from 1959 to 1971 teachers' sal-
time spent in school from kindergarten
it had to teach high-school algebra to
aries after inflation increased at a 2.8%
through high school. Worse, half of the
thousands of workers before they could
annual rate. But then, even as interna-
kids in inner-city public high schools
run them.
tional competition started to heat up,
drop out "The Issue is not money, it's
Building up human capital is becoming
teachers' salaries nose-dived, falling by
competent use of money," says Pat
a national priority. After years of ne-
1,25% a year until 1985. They've bounced
Choate, director of TRW Inc.'s Office of
glect, it has finally entered the political
back a bit since, but in real terms, sala-
Policy Analysis. "Janitors in New York
arena, at least on the rhetorical level.
ries are barely above their 1971 level.
City schools make more than teachers.
Just listen to the messages being broad-
Small wonder that top-notch college
Education systems are patronage ays-
cast by both Presidential candidates.
graduates are not attracted to teaching.
tems: Community boards give out jobs."
Who will be the "Education President?"
True, the U.S. spends plenty on edu-
SECOND FICOLE. Educating America's fu-
Who will do the most to train workers or
cation: $185 billion a year on primary
ture work force reaches beyond the
provide child care to working mothers?
and secondary schools alone. When col-
classroom. A fourth of all children born
Those messages are long overdue.
leges and universities are added in, the
in the U.S. will be on welfare sometime
More than two centuries ago, Adam
figure soars to $810 billion-more than
in their lives. A quarter of all American
Smith pointed to the improvement in the
is spent on defense. American universi-
skills of workers as a critical source of
ties are the best in the
economic progress and B means of rais-
ing living standards. Wrote Smith in The
Wealth of Nations: "A man educated at
the expense of much labor and time to
any one of those employments which re-
quire extraordinary dexterity and skill
may be compared to one of those expen-
sive machines."
'ABBOLUTELY CHUCIAL The evidence is
overwhelming that people, not ma-
chines, are the driving force behind eco-
nomic growth. In the period from 1948
to 1982, the nation's gross national
product increased at an annual rate
of 8.2%. Edward Dennison, an
expert in growth economics,
COMPOSITION
finds that one-third of that
gain was caused by the in-
OF THE FORCE,
crease in the education level
1985
of the U.S. work force and
about half the growth was
the result of technological in-
novation and increased know-
how, which also depend on edu-
cation. But just 15% of the total
increase was the result of more cap-
ital equipment.
While Washington has been hell-bent
on throwing incentives at business to
increase spending on plant and equip-
ment, outlays for human capital in the
past 15 years have lagged behind. In
the period from 1959 to 1971, total
spending per student in public and pri-
vate elementary and high schools grew
36%
at a brisk 4.7% a year, after adjust-
ing for inflation. That was more than a
full percentage point above the robust
3.6% rate of increase in the GNP and
102
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SPECIAL REPORT
children are born out of wedlock, and
Society's failure to invest in the work
force already haunts business Page 100
try and lag significantly behind the na-
42% of them will live in a single-parent
LADOR
tional average on test scores.
family before they reach their eigh-
teenth birthdays. As a result, education
The gap between jobs and the skills of
But there is hope, The needs of the
often plays second fiddle to the more
applicants is alarmingly wide
Page 104
American workplace and the needs of
the disadvantaged may be merging for
pressing needs of survival.
DEMOGRAPHICS
Employers must look to women, minor-
the first time in recent history. The drive
The once-pervasive family role in edu-
cation appears to be seriously eroding.
ities, and the elderly
Page 107
to raise productivity and increase inter-
national competitiveness is transforming
With both parents in most families now
UNDERCLASS
the debate over social equity into à dis-
working, the question of who's reading
In the face of prosperity, a growing un-
derclass of the unemployed
cussion about economic growth.
to the three-year-old and checking up on
Page 112
BENIGN NEGLECT. The Reagan years
Junior's geometry homework is becom-
EDUCATION
were an understandable reaction to the
ing a national concern. In Japan the
Everyone agrees that the system needs
free-flowing social spending that ear-
mother plays such a strong role In teach-
fixing. The question is how
Page 115
marked the 1960s and 1970s. The nation-
ing her children that she is known as
BUSINESS AND THE SCHOOLS
al focus shifted to restructuring indus.
"education mama." Here, the "education
Companies are taking a more active role
try, deregulating the economy, and
mama" is vanishing-and "education pa-
in educational reform
Page 117
personal advancement. In the 1980s, pro-
pas" aren't taking up the slack.
CONCLUSION
grams for the bottom half of society got
One big exception is in the Asian-
What we must do to upgrade our No. 1
the deepest cuts. It wasn't all "welfare,"
American community. "This year, 22% of
asset-the American worker Page 120
either. The Labor Dept.'s manpower
MIT's freshman class is Asian-Ameri-
training programs were hit hard as well.
can," says Lester C. Thurow, dean of
ever before, the economy is becoming
Those cuts in training could not have
the Sloan School of Management at Mas-
increasingly dependent on the groups
been timed worse. "The split between
sachusetts Institute of Technology. "The
that often receive the poorest education.
the top half and bottom half in society
big reason for Asian-American success
Between now and the year 2000, more
has been widening for the past decade,
in public schools is family; family means
than half of all new workers hired will
no matter how you cut the data," says
some parent telling you that education is
be minorities, nearly three times the cur-
Harvard University's Richard B. Free-
important."
rent figure. Blacks and Hispanics have
man. "The educated, the skilled, and peo-
At & time when jobs require higher
the highest school drop-
ple in certain industries and jobs have
levels of math, science,
out rates in the coun-
done well. The rest have not." This in-
and literacy than
equality can only worsen if the human-
capital deficit is not solved. The inter-
nationalization of the economy in
the 1980s pitted the U.S. labor
force against workers around
the world. The results? "Trade
has killed the. earnings pros-
IN
pects for less educated peo-
ple," says Freeman. "They
must compete with lower-wage
people overseas. As long as we
trade with Korea, the less edu-
cated will have a problem."
That competition has proved
devastating. From 1959 to 1986,
earnings for young men who quit.
NEW ENTRANTS
high school fell by 26%, adjusted for
inflation. Even high-school grads saw
TO THE LABOR FORCE,
their earnings drop by 9%, while those of
1985-2000
college graduates rose by 6%.
In the final analysis, wage gains and
losses mirror what is happening to work.
er productivity. The huge decline in the
wages of America's unskilled labor
force shows that it is no longer com-
petitive in the international econo-
my. The productivity of the un-
skilled is plummeting, while worker
productivity abroad is soaring. This
could signal major losses in the
battle for world markets. The U.S.
may now be entering an era when
neglect of the bottom half of soci-
ety begins to threaten the welfare
of the entire nation.
15%
13%
13%
In the following articles the editors
of BUSINESS WEEK lay out the dimen.
SEALES
sions of the human-capital crisis-and
DATA: HUDSON PROVIDE
what the country must do about it.
By Bruce Nussbaum in New York
108
02. 15. 90 11:28 AM *OFC OF ASST SECT-ETA P07
Special Report
WHERE THE JOBS ARE
IS WHERE THE SKILLS AREN'T
As work becomes more knowledge-intensive, employers are fishing in a shrinking labor pool
In a dynamic econ-
ing, and vocabulary needed to perform &
able to function at Level Three or better.
omy there is al-
wide range of jobs. The Hudson Insti-
For jobs in nursing or management,
ways & gap be-
tute, an economic think tank, has
the educational ante is higher. Most of
tween job demands
matched the new jobs that the economy
these jobs, which often require more
and worker skills.
will create against these scales. Here is
than a high-school education, need skills
Through most of
what they found:
at Level Four or above: an ability to
its history, the
More than three-quarters of the na-
read journals and manuals, write re-
U.S. has managed to keep that gap
tion's new workers will have limited ver-
ports, and understand complex terminol-
small. But not anymore. The nation is
bal and writing skills (Levels 1 and 2).
ogy. Just 5% of the new employees will
facing a monumental mismatch between
But they will be competing for only 40%
be able to do that.
jobs and the ability of Americans to do
of the new jobs. Most new jobs will re-
DAUNTING TASK. As many as 50 million
them.
quire workers who have solid reading
workers may have to be trained or re-
Unless the U.S. invests more to close
and writing skills, but fewer than one in
trained in the next 12 years-21 million
this human capital deficit, the economy
four new employees will be able to func.
new entrants and 30 million current
will be shunted onto a lower growth
tion at the needed levels. Retail sales,
workers. The most daunting task ahead
track. The drive to improve technology
for example, will be among the occupa-
is to educate and train the young work
and productivity could founder on a
tions providing the most new jobs. To fill
force entrants. The decline in the num-
shortage of competent workers. There
those jobs, most retail employees will
ber of 21- to 25-year-olds means that em-
will be a social price, too: Lower-skilled
have to function at Level Three. They
ployers now must dig deeper into the
minorities will find it harder than ever to
will have to write up orders, compute
barrel of the poorly educated. And a
land good jobs. The earnings differential
price lists, and read merchandise cata-
larger proportion of
that already is growing between the top
logs. Sound simple? Nevertheless, Hud-
new workers will be
and bottom halves of the work force
son estimates that just 22% of the new
could get even larger. The nation could
employees will be
become further polarised between
skilled and unskilled workers.
NEW YARDSTICK. Three forces are com-
bining to produce the leap in the skills
the economy will require. First, technol-
ogy is upgrading the work required
in most jobs. The modern workplace
needs people with high reading and
THE LOOMING
math capabilities, so millions of
jobs go unfilled while the army of
MISMATCH
the unskilled remains unemployed.
Second, job growth will be fast
between
mainly in high-skill occupations.
WORKERS
Most of these jobs will be in the
service sector. This kind of work
AND JOBS
now requires knowledge that wasn't
necessary 20 years ago.
Finally, the way in which work now
is being organized requires & complete-
2%
ly new set of skills. As companies shift
7%
from the old models of assembly-line
production to Japanese-style work
LEVEL I
LEVEL 2
teams, employees will have to sharp-
LEVEL
Has limited read-
en their abilities to communicate.
Has reading vo-
Can read sofety
A detailed look at how new
ing vocabulary of
cabulary of 5,000
rules and equip-
2,500 words.
workers will match up against
to 6,000 words.
ment instructions,
CHARTS BY RAY VELLA/UMP
new jobs between now and the
Reading rate of 95
Reading rate of
and write simple
to 125 words per
190 to 215 words
year 2000 tells the story (chart).
reports
The Labor Dept. has devised B
minute. Ability to
per minute. Ability
method for measuring, on a scale of
write simple sen-
to write compound
tences
services
one to six, the levels of reading, writ-
104
02. 15. 90 11:28 AM *OFC OF ASST SECT-ETA P08
minorities and immigrants, who tend to
have less education and fewer skills
than other employees.
Minorities are the neediest of these
new workers. But as employers become
increasingly dependent on them, minor-
ities are lagging behind in reading and
writing skills. And those already work-
ing tend to be stuck in occupations that
are disappearing, while few have jobs in
growing industries (table, page 106).
As the economy continues to expand,
big companies are looking harder for
new workers. But many minorities with
low skills still aren't being hired. Last
year, Nynex Corp.'s New York Tele-
phone Co. had to test some 60,000 appli-
cants-many of whom were minorities-
to hire 8,000 people. "There are lots of
people who still want jobs, but they're
dropouts who aren't qualified," says
Howard Harman, New York Telephone's
director of employment.
People who already are working will
need massive retraining to keep pace
with changing job requirements. They
which now numbers about 50,000, com-
ing. "Not they
TIME TO REWIRE
are the 30 million who will need more
pared with 106,000 in the early 1970s.
must learn to use
As New York
math and science to operate computers
Nonetheless, the company has been
fiber optics, which
and robots on the assembly lines or bet-
forced to increase its in-house training
means splicing
Telephone switches
ter reading and writing skills to keep up
rapidly to upgrade the skills of its re-
very delicate fi-
to fiber optics, it's
in the office.
maining workers. NYT has four technol-
bers-like a brain
True, many companies are using tech-
ogy-learning centers where employees
surgeon, almost."
rushing to retrain
nology to replace workers-but those
are taught to operate the handheld com-
A growing num-
workers-proof that
employees who stay on the job generally
puters that telephone repairers use to
ber of companies
the skills gap affects
must improve their skills. For instance,
keep track of orders. One five-day
go 80 far as to
New York Telephone has used new tech-
course retrains skilled splicing techni-
train the employees
longtime employees
nology to help shrink its work force,
clans who install overhead telephone ca.
of their suppliers.
as well as recruits
ble. "Before, they handled 100-pound
In the early 1980e,
wire that was 6 inches in diameter, "says
Xerox Corp. found that its product quali-
Ray Bucaria, New York Telephone's di.
ty was much poorer than that of its
rector of train-
rivals. Management decided suppliers
were a big part of the problem. Xerox
reduced its 8,000-odd suppliers to about
350 and raised tolerance standards
for parts it buys from them.
Xerox then began a program to
ACTUAL SKILL LEVELS OF NEW WORKERS
train its suppliers in Japanese
Percent of 21. to 25-year-olds entering
style quality control. Typically, a
the labor market from 1985 to 2000
company employee trains the sup-
plier's management, and the sup-
plier then trains its own work
force in the new methods. Xe-
SKILL LEVELS NEEDED FOR NEW JOBS
Percent of new jobs created
rox initially will train about
from 1985 to 2000
100 of its 350 suppliers, at
an estimated cost of $1.5
million. "Training suppliers
has become a permanent
I%
1.5%
0.5%
1%
part of the way we do busi-
ness," declares Robert
Fletcher, who manages ma-
IELA
LEVEL B
LIVEL 6
terial quality assurance at Xe-
read journels
Can read scientif-
Has some skills as
rox. Motorols Inc. goes fur-
manuals, and
ic/technicsl jour-
Level 5, but more
ther: It even trains its suppliers'
9 business let.
nais and financial
advanced
suppliers' work forces.
and reports
reports, and write
General Motors Corp. had to re-
journal articles
train workers when it opened 8 new
and speeches
truck plant a year and a half ago in
Fort Wayne, Ind. The plant does have
DATA: HUDSON INSTITUTE, LABOR DEPT.
some spiffy new technology. But more
important, it has a new team-production
MBM KERBS
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system. Both workers and management
proportion of 22-year-olds acquiring
had to go through intensive
bachelors' degrees in science and on-
training in group dynamics and
MINORITIES ARE STUCK
gineering has remained within A
problem-solving to increase
narrow band of 3.7% to 4.8%, accord-
manufacturing productivity.
IN THE WRONG JOBS
ing to the National Science Founda-
"Our people never heard of
tion (NSF).
this until a few years ago,"
If this trend continues, the baby
says Don Davis, the union
Percent of jobs
Percent change
bust could cause growing shortages.
head of a GM/UAW joint train-
held in 1986 by:
in demand for jobs
If just 4% of students continue to
Blocks
Hispanics
1986 # 2000
ing program in Detroit. In all,
choose science or engineering, the NSF
Fort Wayne's 8,000 employees
TOO
JOBS
warns, there could be a cumulative
took 1.9 million hours of train-
shortfall of more than 400,000 science
PERIENT
ing, including time to learn the
20
and engineering BAS through the
new technology. That's more
year 2000. Half of all engineering
than 683 hours per worker.
46%
students at the graduate and post-
Companies are now spending
graduate levels already are for-
some $30 billion a year on worker
signers. And this country is facing
training. A lot of that money is go-
NATURAL SCIENTISTS
a shortage of 27,000 PhDs by the
ing to upgrade the skills of office
end of the century.
workers. Take Mary Ann Moscillo.
Economists are quick to point
After her father died, she dropped
38%
out that in these relatively high-
out of school at 16 to work as a clerk
paying fields, shortages are like-
in the mail room at Blue Cross/Blue
ly to push up salaries and attract
TECHNICIANS
Shield of Massachusetts. She wasn't
more people. But there's little ev-
able to advance on the job for almost a
Idence that previous shortages
decade. Then she enrolled in a remedial
32%
enticed more students to scientif-
education program run and paid for by
ic fields.
Blue Cross, and she learned reading,
GROWING GAP. In addition, market
math, and history. Armed with a new
AND ARCHITECTS
mechanisms may not work quickly
high school diploma, Moscillo has had
enough to remedy shortfalls of
three promotions. Now, she com-
PhDs, who require an additional
30%
pares claims made by hospitals
six to eight years of schooling.
with payments Blue Cross makes
"Usually the decision to enter aci-
to them, finding and explaining
ence is made in high school," says
SALES WORKERS
variances between the two.
John H. Moore, deputy director of the
BABY BUST. The churning econ.
NSF. "We need to do something today
omy is generating millions of
19%
to get teens thinking seriously about
displaced workers. They ac-
careers in these fields-or we'll be in
count for more than one-half
trouble."
of the people already at
The skills gap poses & threat to Ameri-
work who will need retrain-
can society that goes beyond simply the
ing by 2000. Throughout the
economy. Currently, labor shortages in
1980s, some 2.8 million work-
New England and elsewhere are driv-
ers have been displaced each
ing up wages for jobs in fast-food
year, according to the bureau
eateries. If new workers don't D
of Labor Statistics. Roughly 1
come better qualified, this situation
million long-term workers-
may change drastically as short
those on the job three years or
ages move up the skills ladder.
more-have been displaced annu-
6%
Many new job-seekers could wind
ally. Approximately 80% of these
up competing for a dwindling num-
lack basic skills-reading, writing,
ber of low-skilled jobs, while
and arithmetic. Consequently, a
higher-skilled jobs go begging
third never found new jobs at all.
for want of qualified workers.
Others found work but at substan-
That would drive down wages for
4%
tially lower pay.
low-skilled workers, who can least
Elite workers, as well, could be
afford it, and raise wages for
in short supply. Because of demo-
skilled employees, who are already
graphic trends, the U.S. is facing
better paid. The social conse.
a long-term shortage of scien-
quences of this are clear. Warns
tists and engineers. The num-
Irwin S. Kirsch, a researcher at
ber of both has climbed steadi-
Educational Testing Service in
ly in the past two decades, but
Princeton, N. J.: "If we don't
ASSEMBLES
only because the baby boom
boost the skills of the bottom ranks
CHARTS BY RAY VELLA/FIN
brought many young people
DATA: INJURAD OF LABOR STATESTICS
of the work force, we'll have an
into the labor force. The per-
even more divided society than we
centage of students who choose
do now."
these fields has actually remained
By Aaron Bernstein in New York
constant: In the past 80 years, the
and bureau reports
100
02.
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Special Report
MODERN FAMILY
Karen and Melvin
Peterson, who both
work the swing shift
at Echo Bay Mines
Lid.'s operation in
Round Mountain,
Nev., drop off
toddlers Laura and
Lori at the 24-hour,
company.run day
care center before
going to work. If
Karen stayed home,
"we'd struggle along
from paycheck to
paycheck. It would
be rough." she says.
Two incomes let
them save money for
the girls' education
FOR AMERICAN BUSINESS,
A NEW WORLD OF WORKERS
Employers must look to the nonmale, nonwhite, and nonyoung-and competition will be vicious
Once upon a sim-
"Oriental," and "Spanish-American"
checks and withholding taxes. The boss
pler time not so
workers always have helped to do Amer-
is losing that confident glow. The decline
long ago, "work
ica's work. But with a plentiful labor
in birth rates after 1960 has slashed the
force" meant white
supply, few employers had to reach be-
numbers of young people available to fill
men in ties or blue
yond the male Caucasian in his prime
jobs right up to the year 2010 and maybe
collars. The image
except for the least-wanted jobs. Indeed,
beyond.
was never quite ex-
by the late 1960s, as employers awarded
The years of picky hiring are over.
act. One generation back, as the nation
self-winding watches to 65-year-olds, the
Viclous competition for all sorts of work-
settled into postwar prosperity, 30% of
first fresh-faced baby boomers were on
ers-entry-level, skilled, seasoned-has
all women worked outside the home-
their way to Personnel.
begun. Employers must look to the non-
even if Leave It to Beaver reflected the
The last of that numerous cohort is
male, the nonwhits, the nonyoung. There
cultural ideal of family life. "Negro,"
now straggling into the world of pay-
may be a push for non-citizens as well:
AS THE POOL OF YOUNG WORKERS SHRINKS, WOMEN WILL FILL THE GAP, AND MORE WORKING
PHOTOGRAPH BY JAMIE TANANA: CHARTS BY PAY JERINA
24
50
POPULATION
+
FEMALE SHARE
73% of all working women are
16-24
or THE WORK FORCE
of childbearing age
24
40
60% of all school-age kids have
22
30
mothers in the work force, up
from 39% in 1970
20
30
4
0
1
Women with children under 6
1979
1986
2000
1950
1960
1970
1980
1998
2000
are the fastest growing segment
AMILLIONS
EST.
APERCENT
EST.
EST:
DATA: BUREAU OF THE CENSUS, LABOR DEPT.
of the work force
107
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AM
*OFC OF ASST SECT-ETA P 1 1
Over the next 10 years, predicts the
About 40% of workers over age 40 al-
cated that such policies don't cost much
Hudson Institute, an economic think
ready provide care to parents, according
even though temporary workers may
tank, only 15% of work force entrants
to Anthony Gajda of Mercer-Meidinger-
have to All in or other staff may have to
will be native-born white males.
Hansen, an employee-benefits firm.
work overtime. Legislation requiring em-
Building & new, more diverse work
About 12% of women who care for aging
ployers to provide unpaid family leave to
force and-making it tick will be one of
parents must quit their jobs to do 80.
care for sick relatives or new bables is
Corporate America's biggest challenges
A growing body of research links em-
on Congress' agenda.
ployees' concerns for the care of chil-
Child care, especially, is politically hot.
in the decade ahead.
dren or elderly relatives with productivi-
A $2.5 billion bill sponsored by Senator
ty losses from increased absences,
Christopher J. Dodd (D-Conn.) and Rep-
MOTHER, DAUGHTER,
tardiness, and stress on the job-and
resentative Dale E. Kildee (D-Mich.)
such time-wasters as excessive use of
would set quality standards for child
WORKER, WIFE
the phone. This holds for men in dual-
care, provide payment vouchers to fam-
In the past 15 years, as women ventured
career marriages as well as for single
illies, and provide states with funds to
into the workplace in growing numbers,
fathers and single sons, But it's particu-
add new facilities. Michael Dukakis
it has been widely expected that employ-
larly true for women. At Touche Ross &
backs the bill's concept without endors-
ers would take major steps to accommo-
Co., Susan Schiffer Stautberg figures
ing the dollar amount. George Bush
date their special needs. So far, though,
the average working woman spends 17
wants a $1,000-per-child tax credit for
employers have been able to hire
poor families where at least one
52% of all women without doing
parent works, to be used for child
much very differently. That's part-
THE COMING
care or to help mothers stay home.
'CARE-GIVERS.' There is wide-
ly because in a world of stagnant
real earnings, women and their
LABOR SHORTAGE
spread agreement that the federal
families have needed the money
3.5
government has some role to play,
more than companies needed the
beyond the current $3.9 billion de-
women. Feminism, higher educs-
pendent-care tax credit, the $660
3.0
tion levels, and rising expectations
million spent on day care, and $1.5
pushed women into the work
PERCENT GROWTH
billion for the Head Start early
2.5
IN WORK FORCE
childhood program for disadvan-
force, too.
But as employers fish in a
taged kids. States, expanding their
shrinking pool for new workers
programs, are crying for more
2.0
and try to retain.experienced ones,
funding. California subsidizes day
care for low-income toddlers. Tex-
women will be in a position to
make demands. Companies will be
1.5
as school districts provide prekin-
forced to make it easier for work-
dergarten for 4-year-olds from
ers to balance work and family.
1.0
poor families. Massachusetts is
Three-quarters of working wom-
trying to increase the supply of
child care with loans to build cen-
en are in their childbearing years;
0.5
more than half of all mothers
ters and grants to expand referral
work. Those with children younger
programs, train "care-givers," and
than 6 make up the fastest-grow-
0
pay them more.
ing segment of the work force.
1950
1960
1970
1980
1990
2000
EST
The problem, however, is falling
APERCENT
For many such women, as well as
increasingly into the corporate lap.
DATA: HUDSON INSTITUTE
Boston University researchers
for their spouses, balancing work
life with parenting at a distance
Bradley K. Googins and Dianne S.
presents logistical challenges worthy of
years raising kids and 19 years caring
Burden recently surveyed 1,500 workers
an air traffic controller.
for aging relatives. Her grim joke: "Mid-
in big corporations. Some 48% said em-
It isn't only children. As the U.S. pop-
die age is the 15 minutes in between."
ployers and government should share re-
ulation becomes older-and by 2000, 51%
The productivity issues are greater
sponsibility for helping balance work
will be between 35 and 54-more people
than a workday lost when the babysitter
and family life; 41% said companies
must take responsibility for their par-
walks out or Grandma breaks her hip.
should take the lead.
ents. Americans are living longer,
Family leaves, allowing parents time off
About 60% do offer some degree of
thanks to better nutrition and medical
to care for a new baby or deal with a
work-schedule flexibility. But less than
breakthroughs, but those beyond the
family crisis, help retain women workers'
5% of U.S. companies-a grand total of
age of 75 are often ill or infirm. Services
and boost morale and loyalty among oth-
3,800-help with child
ers as well. A 1986 report by the
care. Most of those ei-
are expensive, SO care usually falls to
General Accounting Office indi-
ther allow employ-
family members-many of whom work.
MOTHERS WILL INCREASE THE DEMAND FOR CHILD CARE
With divorce and out-of-wedlock
Only 5% of U.S. companies help
births running high, the typical child
their employees with child care.
born in America today will spend
Only about 300 have helped start
some time in a single-parent home.
day-care facilities
Such households, usually headed by
In 1982, a quarter of all mothers
women, are more likely to be poor.
not in the work force said they
Children in poor families are at risk
would work if adequate child care
for school and social failure
were available
CHART BY RAY VELLARM
108
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*OFC OF ASST SECT-ETA P12
Special Report
ees to save tax dollars by setting aside
rington, Kodak's corporate employee re-
exceed those of whites. Immigration,
pretax income for day care in flexible
lations director.
mainly from Latin America and Asia,
benefit plans, or they provide informa-
Corporate efforts to help workers
has accounted for a fifth of America's
tion and referral advice. Only 250 or 300
cope with elderly parents are still primi-
population growth in the 1980s. Com-
companies have helped start child-care
tive. Most women must find ad hoc solu-
pared with the native-born, immigrants
centers.
tions. A quarter of those responsible for
are younger and their families are larg-
It's likely that more women would an-
aged parents take extended leaves or
er. The youth cohort of the work force is
ter the job market if they could find
cut down their work hours. The chal-
shrinking, but more of its members will
good child care. In the 1982 census, 26%
lenge is to keep them on the job as much
be black, Hispanic, or Asian.
of all nonworking mothers with pre-
as possible by providing social supports
These changes may have dire conse-
schoolers said they would look for work
for the parents. As the pressures of la
quences for the U.S. work force. A dis-
if "reasonably priced child care were
bor shortage build, companies will also
proportionate number of these youths
available." An additional 13% said they
have to see to it that employees don't
are growing up in families that are poor
would work more
DROPPING IN
or headed by single
hours. If half the
parents. In minority
women claiming they
After Bostonian
communities, many of
are BO constrained
Sandra Brown,
today's adults lack the
went to work in the
skills to find decent
1990s, the labor
single parent of
employment. Their
force would gain
three, told her
kids face worse pros-
850,000 workers,
pects at a time of dra-
notes Columbia Uni-
welfare caseworker
matic technological
versity economist
she was "job-ready,"
change. A disturbing
David E. Bloom.
new term, underclass,
she enrolled in d
A SENEFIT. Indeed,
describes some who
some companies are
program at Roxbury
are from such disorga-
looking at child care
nized backgrounds
Community College
as a recruiting de-
that-without inter-
vice, especially in
where she's studying
vention or à social mir-
clerical, food service,
acle-they may never
word-processing and
and hospital jobs,
be employable (page
which depend on
finishing high
112).
women workers. But
Many young peo-
school. Her employer
the impetus is grow-
ple-especially minor-
ing elsewhere. Faced
is helping with the
ities-are caught in a
with a local labor
tuition bills
vicious cycle. About a
shortage, Echo Bay
quarter of all kids are
Mines Ltd. at Round Mountain, Nev.,
forfeit seniority or status if they are
born out of wedlock to parents who "are
has enticed parents to hire on for swing
forced to take time off for family rea-
poorly educated, frequently young, and
shifts by keeping open its on-site day
sons. "I really think demographics are
unskilled," says George Washington
care center 24 hours a day, seven days a
deatiny here," says Dana E. Friedman,
University's Sar Levitan. In the U.S.,
week.
work and family research director at the
about 44% of all marriages fail. Female-
Eastman Kodak Co. helps its Ameri-
Conference Board.
headed households are more than four
can employees look for child care. in
times more likely to be poor than are
addition, the company is experimenting
two-parent families. A startling one
with job-sharing. Two Rochester (N. Y.)
YOUNG, TROUBLED,
in four members of the Class of 2000,
mothers with young children split the
AND IN Demand
now entering first grade, is living in
title "professional recruiter"; their 24-
poverty.
hour stints overlap on Wednesdays. Ko-
It has been a long time since America's
Part of the problem is child support.
dak allows up to 17 weeks of unpaid
population profile bore much resem-
Fewer than half of fathers not living
leave to care for B spouse, parent, sick
blance to the party that landed at Ply-
with their kids pay anything toward
child, or new baby, including adopted or
mouth Rock. Now this nation of ethnic-
their keep. In 1985 more than half of all
foster children. "We have a lot of money
ity and social Rux is changing anew. It
invested in training. This is protecting
is becoming less white and more Span-
our investment," declares Mary J. Har-
ish-speaking. Birth rates among blacks
CERV
BEAR-
MINORITIES: FAST GROWTH AND TOO MANY DROPOUTS
4
Among white 18- to 21-year olds,
PHOTOGRAPH er CHART BY PAT
POPULATION GROWTH,
16 AND OLDER
13.6% have dropped out of high school.
3
1986-2800
Among blacks the rate is 17.5%, among
?
Hispanics 29.3%
1
The high school dropout rates in major
cities, where minorities are concentrated,
0
WHITES BLACKS HISPANICS
range from 35% in New York to as high
APENINT. AMNUAL DATE
as 50% in Washington
DATA: BUREAU OF THE CENSUS
100
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Special, Report
REVIRED? RETOOL
gible children are
Leon Levitt, 81,
served by Head
Start, due to Inade-
retired from his sales
quate funding.
job a decade ago,
The challenge is
clear. If minority
but six months later
skills are not up-
he went back to work
graded, they will de-
teriorate further.
as a trainee
Companies will be
Bigham
machinist. "Work
forced to substitute
adds life to your
capital for the un-
skilled labor. Tech-
years-and it
nology, after all, has
actually adds years
many faces. Given
skilled workers, it
onto your life," he
can upgrade a job
says. As the work
task and add value.
force ages, more and
Or, to cope with
work-force shortcom-
more résumés may
ings, it can be used
resemble that of
to "de-skill." The
classic example is
Levitt, who just cut
McDonald's Corp.
back his workweek to
Dependent on young
49 hours from 55
workers with poor
skills, the hamburg-
mothers with child-support orders re-
groups disadvantaged by discrimination,
er chain has replaced words on the keys
ceived less than the full amount due.
lack of education, and language barri-
of its cash registers with pictures. That
The average annual payment was $2,315.
ers-will be in very great demand," says
may work for McDonald's. But for soci-
Another aspect of the poverty problem
Labor Secretary Ann D. McLaughlin. Al-
ety to take that path implies low wages
is women's pay. Women's earnings aver-
ready employers are having to reach
and a declining standard of living.
age $16,232, 70% of men's. Many moth-
further and further along the labor
ers work part-time for far less pay.
queue. Where necessary, they are patch-
Harvard sociologist David Ellwood
ing up the ragtag skills they find there,
BRINGING THE RETIRED
predicts that more than two-thirds of
sometimes at huge expense (page 117).
BACK FROM RETIREMENT
children who grow up in a single-parent
Social thinkers say early intervention,
household will spend at least some of
with such proven child-development pro-
In our time, the shrinking of the Ameri-
their childhood in poverty. They are
grams as Head Start-or even earliar
can manufacturing sector has written
three times more likely than others to
with nutrition programs and parenting
off a generation of middle-aged blue-col.
drop out of school, and they are more
classes-is the real ticket to building B
lar workers caught between the foundry
deficient in skills. Black and Hispanic
competent work force over time. Half of
and the computer. And even as the econ-
children, while a minority of the poor,
all teenage mothers eventually escape
omy faces labor shortages at all levels,
are nearly three times more likely to be
poverty through education, with measur-
the most striking employment trend in
poor than whites. A National Assess-
able improvements in their kids' achieve-
recent years has been a shift to early
ment of Educational Progress found
ment and prospects, notes economist An-
retirement. Only about 15% of men over
that only 60% of white young adults
drew Sum of Northeastern University.
age 65 are in the work force today, down
could locate information in a news arti-
"If minorities are to succeed, we have
from 25% in 1970. Only 68% of those age
cle or an almanac. The number was 25%
got to start educating children much
55 to 64 still work, compared with 83%
for blacks and 40% for Hispanics.
younger and work through their par-
two decades ago.
Labor shortages in the future could
ents," says Gloria G. Rodriguez, director
Such trends were perhaps understand-
present an unprecedented opportunity to
of a support and training program for
able as baby boomers crowded into the
improve the lot of the poor. "The new
poor Hispanic families in San Antonio.
workplace and companies downsized. To-
workers-although they are from
Despite its track record, only 18% of eli-
day, though, it is waste on a vast
OLDER PEOPLE ARE AN UNTAPPED RESOURCE
PHOTOGRAPH BY DAVIS. CHART BY PAT JERSA
55
In 1950, for every retiree,
POPULATION
there were 17 Americans at
55 AND OVER
50
work. By 1992, it will be 1
retiree for every 3 workers
45
In 1984, only 68.4% of all
4
men aged 55 to 64 worked. If
0
1980
1984
1990
1995
retirement trends continue,
AMILLIONS
EST.
EST.
that will drop to 62.6% by 1995
DATA: SUREAU OF THE CENSUS
110
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11:28 AM
*OFC OF ASST SECT-ETA P14
Special Report
scale. A typical American who has
years. Smart companies are finding
can Labor Force, Briggs argues that
reached the age of 65 can expect to live
ways to retrain and employ them. In
minority youths could soon be competing
an additional 17 years. By 2008 the U.S.
Florida, where 18% of its population is
with immigrants-legal and illegal-for
National Center for Health Statistics
over 65, the future is now-fast-food
entry-level jobs. Rand Corp. researchers
predicts life expectancies at birth will be
chains recruit workers in retirement vil-
say there's no evidence of this yet. But
84 years for women and 10 years less
lages. Last year, Kelly Services Inc. in
they warn that U. S.-born Latinos must
for men. Today the 58-year-old-who
Troy, Mich., put out 8 call for workers
improve their skills to qualify for the
takes early retirement is essentially mid-
over 55. Now they're 8% of the "temp"
high-tech jobs of the future or compete
die-aged, and retirement may last half
rolls. In Boston, one BayBanks Inc. unit
with new immigrents for low-paid jobs.
as long as his or her work life did.
has hired 45 retirees 88 clericals, tellers,
Today's immigrants, on average, are
The good health, skills, and work his-
and clerks since last November.
less skilled than the native-born. Most
tories of the "young old" can help the
Keeping older workers in the job mar-
lack a high-school education. Only 20%
nation out of its demographic fix. "Peo-
ket won't be easy. Says Census Bureau
are admitted because their skills are in
NEW CITIZENS
great demand. But
the criteria could
Opening America's
change toward more
"Golden Door" has
preference for skills,
This year, U.S. hos-
helped with past
pitals, to allay short-
labor shortages, but
ages, will hire 20,000
swelling waves of
foreign nurses on
five-year visas.
immigration might
The idea of hospi-
serve to stall afforts
tals staffed by
skilled foreign pro-
to integrate blacks,
fessionals and low-
Hispanics, and
paid native-born jani-
women into the
tors doesn't sit well
with some like Pat
economy more
Choste, TRW Inc.'s
effectively
futurist. "Ultimately
we have to have an
ple should work longer and be produc-
forecaster Cynthia M. Taueber: "They
economy that works-and do everything
tive longer. We should get away from
can afford to retire and will." The elder-
with our own people," he says. Yet, he
the rigidities that go along with age 65,"
ly have escaped Reagan-era spending
adds, the U.S. should "use its incompa-
argues Alan Pifer, chairman of the
cuts. Social Security, medicare, and med-
rable advantages" to attract the world's
Southport Institute for Policy Analysis.
icald spending on nursing homes have
talent. Foreigners here to study engi-
Pifer, who directed the Carnegie Cor-
eliminated most poverty among the old.
neering, say, could be required to stay
poration's Project on Aging, advocates
Still; retirement can be boring. If busi-
and work.
continual education and retraining
ness makes work attractive, the oldsters
Unlike immigration policy, population
throughout one's working life. The em-
may come back in droves.
trends hold few surprises. "We have a
phasis should be on that restless age
lot of control over how demography hits
around 50 when the kids are gone and
THE U.S. COULD LOWER
us. It's more of a glacier than a thunder-
"you've gone about as high as you're
THE DRAWBRIDGE AGAIN
bolt," reflects Jack A. Meyer, president
going to go in the hierarchy. It would be
of New Directions for Policy, a Wash-
nice if a lot of people could be 'repot-
Faced with labor shortages in earlier
ington think tank. "If we sit back, we're
ted,'" he suggests. As a vision for the
times, America has opened its borders.
in for some problems." The danger is
nation, that projects a huge agenda: re-
Immigration is still a policy option-the
that the U.S. will fail to address its de-
ordering what is now an ad hoc and
wild card in the labor-market outlook.
mographic challenges in time.
haphazard retraining process. It also re-
For Cornell University economist Ver-
By Elizabeth Ehrlich in New York, with
quires new benefits systems, such as
non M. Briggs, unleashing even more
Susan B. Garland in Washington, and bu-
portable pensions, to erase disincentives
immigration will stall efforts to inte-
reals reports
for middle-aged workers to move on.
grate women, blacks, and other minor-
Many over-60s, furthermore, don't
ities into the economy. In a recent book,
want to be put out to pasture for 20
PHOTOGRAPH BY WOLF/PICTURE GROUP; CHART BY PAUL CHANGE/BW
Immigration Policy and the Ameri-
WILL IMMIGRANTS FILL THE JOB GAP?
2
Only 20% of legal immigrants are
LEGAL IMMIGRATION
admitted for job skills. Family ties or
1
refugee status are the usual criteria
1
Over half a million legal immigrante
arrive each year-more than at any
I
time since the 1920s.
1967-71
1972-76
1977-81
1982-86
AMILLIONS
Some 2 to 4 million illegal
DATA: OF THE CENSUS
immigrants live in the U.S.
111
02. 15. 90 11:28 AM *OFC OF ASST SECT-ETA P15
Special Report
SPENSERS'
OPEN 7 DAYS
7am B/m
WHY THE UNDERCLASS
CAN'T GET OUT FROM UNDER
In an era of prosperity, legions of welfare mothers and inner-city youths face dead-end lives
Terence Maclin of-
series of temporary jobs after a dispute
isolated from the nation's economic and
ten dreams of es-
over pay.
social mainstream. This legion of chron-
caping Milwan-
In the past, unskilled and poorly edu-
ically unemployed males and welfare
kee's tough North
cated black youths such as Maelin had a
mothers, concentrated in crime-ridden,
Side. "I plan to
shot at a decent-paying job. But now,
desperately poor, inner-city neighbor-
build my own busi-
many of the breweries that made Mil-
hoods, numbers at least 1.5 million.
ness," says the 18-
waukee famous are shuttered. The
That figure continues to mount de-
year-old leader of a youth gang known
city's employment boom has been con-
spite a six-year economic expansion.
as Two-Four. "Then I can have people
centrated largely in jobs that require
"The rising tide of prosperity left those
working for me."
skills far higher than Maclin's. "The
without a high school diploma un-
Maclin's fantasy of the straight life is
odds are very strong that Terence will
touched," says John D. Kasarda, an
likely to remain just that. A high school
never make it," says Charles Meyer, 8
economist and chairman of the Univer-
PROTOGRAPHY BY SETH RESMOK
dropout who's been in and out of juve-
program director at the Westside Cen-
sity of North Carolina's Sociology Dept.
nile institutions since he was 9, Maclin
ter, where Maclin sometimes hangs out.
"They were not even on the boat."
can't read at a sixth-grade level. He's
Young people such as Maclin can be
Although the underclass is relatively
enrolled in a high school equivalency
found in decaying inner cities all over
small in size, it reverberates across geo-
program but chronically cuts classes.
America. They represent & chilling phe-
graphic, class, and racial lines. Drug-
And Maclin recently quit the latest in a
nomenon: a growing black underclass
related crimes and gang wars are shak-
112
02.
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11:28
AM
*OFC OF ASST SECT-ETA P16
ing the complacency of
Even when jobs are
middle-class communi-
Minority youths in
available, few are per-
ties. As labor markets
ceived as true opportu.
tighten, business has
urban ghettos such
nities because pay is
begun to worry about
as Dorchester,
low and prospects for
the growing pool of dis-
Mass., (left) often
promotion are virtually
affected - youths ill-
nil. "Places give you a
equipped to take on new
eschew work even
hassle, say they are not
jobs. And the cost of
where it's available.
hiring and come back in
coping with society's
a few months," com-
failures are staggering.
For some, fast-food
plains Corey Newsome,
The nation spends $20
jobs paying as much
a former member of
billion annually on pris-
as $7 an hour don't
Maclin's gang. In some
ons. Caring for low-
tight labor markets,
birthweight babies born
compare with the
fast-food restaurants
to mothers on welfare
enticements of life
$700
pay nearly twice the
who are high school
minimum wage, but lo-
dropouts costs another
on the street
cal youth unemploy-
$188 million per year.
ment rates remain high.
The growth of the underclass is the
at least some college education. Às a
"Fast-food places aren't paying enough,
result of many complex forces-from
result, employment of the poorly edu-
not for what they want you to do," says
racism to the frustration and apathy
cated has fallen sharply. That is partic-
Newsome, The lucrative alternatives-
that persistent poverty can provoke.
ularly true of adult black males who
drug dealing, pimping, and theft-have
"It's very difficult to point to any one
live in cities. Only half of these men
no shortage of recruits, though.
thing in an environment where so many
work, even part-time, as compared with
The allure of criminal activity is often
things are hostile," says David T. Ell-
80% in 1969, according to Kasarda.
attributed to the disintegration of the
wood, professor of public policy at Har-
University of Chicago sociologist Wil-
black family. In 1960, 20% of black fam-
vard University. "But everyone agrees
liam Julius Wilson, author of The Truly
ilies with children were headed by wom-
that all these negative things start
Disadvantaged, argues that antidis-
en. Today, half are.
to feed on each other, making It more
crimination legislation and affirmative-
TRAP? Contrary to popular per-
difficult to latch on to any simple
action programs may have inadvertent-
ception, the birth rate for unmarried
solution."
ly compounded the problems. Middle-
black women actually has declined since
KNOWLEDGE-INTENSIVE Among the
class blacks, who could take advantage
1960. But the marriage rate among
most potent factors is the two-tiered
of new job and housing opportunities in
black women has dropped even more
economy. The economy's general weak-
the 1960s and after, fled the ghettos,
sharply-as has the birth rate to mar-
ness during the 1970s and early 1980s
leaving local schools to the poor and
ried women-so single women still bear
"hit people at the bottom of the barrel
removing important role models--
more of the community's babies. For
the hardest," says Brookings Institu-
adults who work at steady jobs. Those
Wilson, the explanation is the shortage
tion economist Robert D. Reischauer.
left behind no longer hear about work
of "marriageable" black men. "The in-
Starting in the 1970s, white women,
opportunities. Even the habit of waking
creasing inability of many black men to
baby boomers, and immigrants flooding
up to 8 ringing alarm clock is alien.
support a family is the driving force
the job market have made it even more
"Youngsters are growing up in a com-
behind the rise of female-headed house-
improbable that less-educated blacks at
munity where people's lives aren't orga.
holds," he says.
the end of the hiring queue will be cho-
nized around work," Wilson says.
Some social scientists, though, be-
sen for jobs.
lieve that cultural factors have become
Meanwhile, in the
at least as important as economic ones.
past two decades,
"If you've got full em-
manufacturing in-
ployment, you are
dustries virtually
still going to have
vanished from the
an underclass," ar-
cities. Some closed
down, skewered by
HOW SOCIAL INVESTMENT
gues social scien-
tist Charles Murray.
international competi-
IN CHILDREN PAYS OFF
"We do not know
tion. Others moved to
how to change the at-
convenient, sprawling,
titudes of even ado-
suburban tracts. Just
lescents who have
25 years ago, half of
grown up in the
Milwaukee's jobs
underclass." Mur-
were of the high-
paying blue-collar
Prenatal care for poor women
$3.38 in hospital care for
ray's 1984 book,
low birthweight babies
Losing Ground,
type. Today less
faulted federal wel-
than 30% are. In
Childhood immunization
$10 in later medical costs
fare policy for dis-
other cities, the
couraging marriage
falloff is even
Preschool education
$4.75 in special education,
and work while re-
more dramatic.
welfare, and prison costs
warding out-of-wedlock
Many of the
Remedial education
$6 in the cost of repeating
childbearing and unem-
newer jobs are
a grade
ployment.
"knowledge-inten-
"It's now more accept-
sive" white-collar
DATA: HOUSE SELICT COMMITTE ON CHALDREN, YOUTH, AND FAMILIES
able than ever for a fa-
posts, which require
ther to ignore his responsi-
113
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bilities," adds Stuart Butler, director of
Dr. James P. Comer, professor of
most disadvantaged kids. Their point is
domestic policy studies at the conserva-
child psychiatry at the Yale Child Study
that intervening at an early age may
tive Heritage Foundation. "The as:
Center, says children of uneducated
well improve 8 child's lifelong prospects
sumption is that the government will
parents are less likely to develop the
(chart, page 113) and save money on
take care of the problem."
early language skills and excitement
other social programs, such as welfare,
Certainly, most welfare programs do
for learning that will prepare them for
down the line.
little to encourage work. When recipi-
school. Fully 60% of daughters of single
Some experts believe that expanding
ents who want to work weigh the low-
women who are on welfare for 10 years
programs such as Medicaid and Head
paying jobs for which they're qualified
or more will find themselves on welfare
Start is only a first step. Harvard lec-
against the loss of welfare benefits,
for at least a year during adulthood.
turer Lisbeth B. Schorr says that social
medical benefits, and the additional bur
Urban Institute economist Isabel V₁
service agencies have to do A better job
den of child care, many figure they're
Sawhill worries that underclass commu-
of coordinating the services they deliver
better off staying home. "The system
hities will be "breeding grounds for an-
to poor families, who often suffer from
goes around and chokes you," says
other generation of poor people with
a spectrum of problems. An agency
Bonita Williams, & 24-year-old mother
little hope of becoming part of the
that provides preschool education to &
of six who lives at the Milwaukee Fam-
mainstream."
child without addressing a parent's de-
pression or the child's nearsightedness
won't help much. "The programs that
work best are comprehensive and inten-
sive," she says.
INTIMIDATED. Encouraging the employ-
ment of young adults is another neces-
sity. In Boston, a successful business-
backed program is teaching 150 poor
adults such workplace skills as résumé-
writing, interviewing procedures, and
telephone etiquette. James B. Marshall
Jr., who is in charge of the program,
says many youths are intimidated by
the prospect of leaving isolated ghettos
such as Roxbury to work in a down-
town glass tower. Other programs that
provide intensive remedial education,
job training, and child care have helped
long-term welfare mothers enter the la-
bor force.
North Carolina's Kasarda believes
that suburban employers must reach
out as well through job information
networks and provide transportation
pools. Marshall says that employers,
who are often reluctant to hire inner-
city youths, "have to understand that
SAVE THE CHILD:
ily Crisis Center.
To break the chain, some black lead-
their personnel in the next 10 years is
Improved services for
Child care and job
ers are calling on the black middle class
going to be different from what they're
training are a for
for assistance. Others are saying that
used to."
children, such as
cus of the new $3
poor blacks themselves must accept
This realization is the product of de-
day care for
billion welfare re-
greater responsibility-and that their
mographic trends that in some areas
form bill pending
community offers positive models, too.
are already producing labor shortages
disadvantaged kids
in Congress.
"There are kids who are not on drugs
among young, entry-level workers,
in New York's East
Whatever the
and teenagers who are not getting
However, federal policymakers, worried
Harlem, may be the
causes of the un-
pregnant," says Robert L Woodson,
about yawning budget deficits, seem
derclass phenome-
president of the Washington-based Na.
unlikely to launch a major new effort to
surest way to break
non, there is no
tional Center for Neighborhood Enter-
address the problems. There is little po-
the cycle of poverty
question that the
prise, which encourages tenant man-
litical gain to be had from aiding the
consequences for
agement of public housing projects as
powerless underclass, and indeed, the
black children have been disastrous.
well as other community self-help pro-
Presidential candidates have not taken
Three-quarters of them spend at least
grams. "We need to learn from people
up their cause.
some time in poverty, compared with
who are successful."
Yet, argues Princeton sociologist
one-fourth of white children. One-third
Improving the schools that poor chil-
Richard Nathan, "if there was ever a
of black kids are poor for seven years
dren attend is critical as well (page 115).
time to work at these issues, it's now,
or more. And those growing up poor
So is reaching the child before school.
when there's a declining labor force." If
are more likely to become parents
Last year the Committee for Economic
America lets this opportunity pass, it
themselves at an early age. In turn,
ROSEM/PICTURE GROUP
Development, a corporate-funded re-
will do so at its own social and econom-
their babies are at risk from low birth-
search group, recommended $11 billion
id peril.
weight, which tends to increase the
in additional spending on prenatal care
By Susan B. Garland in Washington,
chances of brain damage and learning
and nutrition for pregnant women and
with Lois Therrien in Milwaukee and Keith
disabilities.
preschool education for the nation's
H. Hammonds in Boston
114
02. 15. 90 11:28 AM *OFC OF ASST SECT-ETA P18
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SECOND GRADE
IN TEXAS
AMERICA'S SCHOOLS
STILL AREN'T MAKING THE GRADE
A quarter of high school grads are only marginally literate-and reformers disagree on what to fix
Americans have al-
schoolhouse door. Economic growth,
ranked U.S. students compare well with
ways asked a lot of
competitiveness, and living standards
their peers in industrialized nations,
their schools: Civi-
depend heavily on making investments
the rest do worse. One million young
lize the frontier
in human capital. That means attending
people drop out of high school every
with the three Rs,
to the state of America's schools.
year. Rates approach 50% In some inner
assimilate immi-
It is 3 worrisome state. Although top-
cities. Of the 2.4 million who graduate,
grants, secure U.S.
as many as 25% cannot read or
military might by bolstering high
write at the eighth-grade, or
school science. At its most funda-
"functionally literate," level, ac-
mental, democracy aspires to
Some 35% of the nation's
cording to some estimates.
produce literate, responsible citi-
11th graders write at or
Most 17-year-olds in school
zens. But social and economic
below this
cannot summarize a newspa-
change has continually reshaped
from training homemakers to fos-
tering integration.
TESTIMG
stayid
I level: thing and al been need streatey experience get to lest
per article, write & good let-
what school is expected to do-
ter requesting 8 job, solve
real-life math problems, or
follow a bus schedule.
A new call for school reform is
What's needed is a do-
ringing across the land. This one
or-die battle to turn the
DATA:
is different: The nation's economic
IDUCATIONAL
schools around. But the front
problems are being placed at the
lines are weary-and fresh recruits
people
116
02.
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90
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*OFC OF ASST SECT-ETA P P19
Special Report
are scarce. Between retire-
vidual learning styles or
ment and normal attrition.
Almost half (48.9%) of the nation's 17-year-olds could
to respond to students'
America could need to re-
place 1 million teach-
not correctly answer math questions of this type:
social problems. They
stress the importance of
ers-half the current
expectation and high stan-
force-before the end
dards. holding up such ex-
of the century. But only
amples as William Lloyd
8% of today's 1.6 million
Garrison School, where
college freshmen say
South Bronx kids from
they're interested in teach
low-income families test
ing, and half of those will
at or above grade levels
typically change their
in reading. "You don't
minds. Worse, half of all
change the principles of
new hires leave teaching
medicine when patients
within seven years. And
have poorer health or a
with shortages of educated
poorer state of nutrition,"
workers looming through-
insists outgoing Education
out the economy, schools
Secretary William J. Ben-
will be competing with
nett. When Bennett urges
other sectors for quality
school overhaul, he means
candidates.
DATA: EDUCATIONAL TESTING SERVICE
a shift of power from the
LEMONS.' The demand for
educational Establish-
school reform has been per
ment-teachers' unions,
colating since the mid-1970s,
administrators, and col-
when declining results on stan-
leges of education-to par-
dardized tests raised concerns about ba-
it. In a 1987 Harris Poll, 90% of those
ents, citizens, and state legislatures.
sic skills. It exploded in 1983, after the
surveyed endorsed the principle that
Traditionalists point to Japan, where
National Commission on Excellence in
"for the U.S. to become competitive, we
students seem to perform as well as or
Education released A Nation at Risk.
must pay more for quality education"
better at all levels than U.S. kids. Japa-
Warning of B "rising tide of mediocrity"
and get "tangible results."
nese mothers are highly involved in their
in public schools, it called for rigorous
The tricky question: how to get those
children's schooling. teachers are re-
academic standards and a standardized,
results. Educators are sharply divided.
spected and well-paid, the school year is
traditional high school curriculum of his-
Some endorse the call for strengthening
longer, and more homework is given.
tory, Western literature, foreign lan-
the traditional curriculum. AFT's
"The Japanese system," says Bennett,
guages, science, and math.
Shanker would give teachers B freer
"is pretty close to a system of education
Critics still blast the report as elitist
hand to restructure the classroom envi-
that is universal and of quality."
or oversimplified. But few deny that our
ronment. Others say schools must take
MASS PRODUCTION. Those for whom tra-
schools need fixing. "If a company was
on new family-like roles to nurture the
dition is not a panacea say American
turning out 90% lemons, we would re-
growing numbers of poor or troubled
schools must change with the times.
think the whole production process,"
kids in the system.
They argue that the public school sys-
says Albert Shanker, president of the
Predictably, conservatives deride the
tem was organized along factory lines in
American Federation of Teachers (AFT).
idea that schools should depart from tra-
the 1920s by a society enchanted by
"This is not a question of a few recalls.
ditional teaching formulas to suit indi-
mass production. Classrooms were stan-
The system is producing lemons."
dardized, and decisions about teaching
Most Americans want to
methods and content
do something about
CHARGES BY JON DAMAHER
THE PAYOFF OF
BUT TEACHERS' SALARIES
AND FEW WANT
EDUCATION IS HUGE
HAVE GONE NOWHERE
TEACHING CAREER
1966 EARNINGS OF new
28
DROPOUTS
1971
25-29
AVERAGE
SALARIES
HIGH SCHOOL GRADUATES
(ADJUSTED FORINFLATION
1987
N
10
SOME COLLEGE
PERCENT
COLLEGE GRADUATES
24
COLLEGE
25
THOUSANDS 06 1984 BOLLARS
Z?
2971-72
1967-88
THOUSANDS of 1988 DOLLARS
currel RE LABOR MARKET STUDIES, AMERICAN FEDERATION OF TEACHERS,
116
02.
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AM
*OFC OF ASST SECT-ETA P20
SpecialReport
were passed from state offices to super-
mand-control management-a system
Indeed, concerns about basic skills
intendents to principals and finally to
designed to stifie creativity and indepen-
already have produced some improve-
the chalk-wielding line workers: teach.
dent judgment."
ments along traditional lines. Education-
ers. After a 50-minute class, the bell
To education reformers, it is signifi-
al Testing Service (ETS), a testing-
rang and pupils moved on. "If the stu-
cant that the Japanese themselves are
and-research organization based in
dent is viewed as an inanimate object
beginning to worry that their nation's
Princeton, N.J., reports that test
moving on an assembly line, this makes
learning style, heavily based on rote and
scores in math, reading, computer 11-
perfect sense," Shanker says.
memorization, doesn't promote creative
teracy, and science have gone up since
THOROUGHLY DISCREDITED.' Successful
thinking and flexible skills, "In Japan
the mid-1970s. Most of that came from
companies, as Xerox Corp. Chairman
they do harder and longer what we do,
minority kids, who increased from 16%
David T. Kearns notes in Winning the
and get better results," argues Adam
to 23% of all schoolchildren. But "the
Brain Race, "have discarded the archa-
Urbanski, president of the Rochester
bad news is that we haven't budged in
ic, outmoded, and thoroughly discredited
(N. Y.) Teachers Assn. "The purpose of
improving higher-order skills, critical.
practices that are still in place in most of
reform is to do it differently-to chal-
thinking skills," says Archie E. La-
our large school districts: top-down, com-
lenge the fundamental structure."
Pointe, head of ETS'S National Assess-
offered college scholarships to all pupils
who stayed in school. He paid for remedi-
al and counseling staff and became in-
BUSINESS IS BECOMING A
volved with the kids. Of the 54 original
pupils who remained in New York, 50 fin-
SUBSTITUTE TEACHER
ished high school, and 84 are in college.
The recipe has been followed by corpo-
rations as well. More than 1,000 Dallas
New York's Chemi-
Passion for school reform is gripping
businesses have adopted the city's 200
cal Bank has an
Corporate America. It is marshaling re-
public schools. The sponsors provide vol-
alarming problem: it
sources, energy, and influence to improve
unteers and donate funds and equipment.
has to interview 40
education. Hundreds of partnerships are
At Tenth Street Elementary School in Los
high school gradu-
blooming between school and business.
Angeles, 125 Arco On & Gas Co. employ-
ates to find one who
They run the gamut: gifts of equipment,
ees-from secretaries to top brass-help
makes it through the
paid work-study programs, teacher train-
out in the classrooms, tutoring immigrant
bank's training program for new tellers.
ing, and literacy volunteers. But there are
and minority students in English, math,
The Chemical reaction? The bank has
questions about the effectiveness and
geography, and computer sciences.
adopted two schools and is helping form a
reach of these programs. The biggest un-
Pacific Northwest Bell Telephone Co. in
high school debating league. Chemical
known is whether business will have the
Seattle adopted a local school. But this
Chairman Walter V. Shipley believes pa-
patience to stay the course.
modest involvement mushroomed in 1983
rental involvement is the ideal: "Unfortu-
Many join-a-school partnerships have
thanks to Gary A. Frizzell, PNB's new edu-
STEVE SMITH
nately you.don't always have that commit-
been forged. In 1981, New York industri-
cational relations manager, who happened
ment from parents, so business must try
alist Eugene Lang addressed a sixth-
to be coping off-hours with an spathetic
to find more ways to fill the gap."
grade class at his Harlem alma mater and
14-year-old son. He tried to reach the boy
with heart-to-heart
SOWING SENDS
talks and & series of
'Adopt-a-school'
letters-which evolved
programs are
into Choices, an out-
reach program encour-
sprouting up. At Los
aging kids to stay in
Angeles' Tenth
school. Volunteers
Street Elementary
from 65 participating
companies have ad.
School, an Arco
dressed more than
professional leads a
800,000 eighth and
ninth graders in 41
nature class
states. "Business is
the user of éducation's
product-students, and it ought to replen-
ish," says Frizzell, now heading an educa-
tion foundation for PNB's parent, U.S.
West in Denver.
Businesses are focusing on teachers, as
well. Two years ago, IBM Vice-Chairman
Lewis M. Branscomb headed a Carnegie
Forum task force that recommended high-
er pay, more autonomy, and national com-
petence testing for teachers. Honeywell
Inc. sponsors & summer Teacher Acade-
my, where Minneapolis high school math
and science teachers team up with re-
H7
02.
11:28
AM
*OFC ASST SECT-ETA P21
ment of Educational Progress (NAEP).
peer tutoring, team learning, simulation
menta," says retired Procter & Gamble
It's higher order skills that a sophisti-
games, and other nontraditional ap-
Chairman Owen B. Butler. "No effort to
cated economy increasingly needs.
proaches, particularly for disadvantaged
change that culture can be expected to
"Over the long term, basic skills only
children for whom formal classrooms
succeed in five years."
give you the right to compete against
are threatening ground.
TEACHER THOUGLE. Whether it's tradi-
the Third World for Third World
So passionate is the debate that re-
tionalism or radical reform, better
wages," notes Marc S. Tucker, chairman
form is threatened with paralysis by
schools require more and better teach-
of the National Center on Education &
analysis. No single educational philoso-
ers. And here there is trouble. Morale
the Economy in Rochester, N. Y. To
phy can be expected to win the day in a
among teachers, who are poorly paid
achieve more advanced goals, "I'd like to
country as heterogeneous as the U.S.
and garner little esteem, is at low ebb.
see B lot less of kids sitting quietly in
What might work in a high-income sub-
For years the numbers of college stu-
rows and à lot more deeply engaged in
urban school district could create havoe
dents entering teaching has been in de-
projects in which they are heavily invest-
in an inner-city ghetto. And there are no
cline, and those who do choose teaching
ed, which require them to learn a lot."
quick fixes. "Imagine a business
with
often come from the bottom quartile of
Tucker maintains that most kids don't
50 totally autonomous divisions and
their college class. The shortage is acute
learn well by listening to a lecture or
16,000 subsidiaries, each with its own
for teachers of math and acience and for
reading the text. He and others advocate
board of directors and labor agree-
the minority teachers desperately need-
searchers to develop class projects using
gulf between high school and what comes
terns apprenticing in maintenance engi-
state-of-the-art computers and equipment.
after. That is, not pushing old-style v
neering at Beacon Co. Under a separate
Minnesota companies have a tradition
tional education but bringing some notion
program, companies hired 1,000 high
of social investing. Honeywell has provid-
of work life and promise of opportunity to
school graduates, 72% of them black or
ed equipment, volunteers, and technical
kids floundering on the margins. That
Hispanic, into permanent jobs. PIC also of.
advice to schools for 20 years. Last year it
was the plan behind the Boston Compact,
fers jobs and counseling to dropouts, and
gave $7.8 million, about 2% of its U.S.
a 1983 agreement between the Private In-
guidance to ninth graders.
pretax profits, to philanthropy. Of that,
dustry Council (PIC) and the school system
UNFAIR SURSHER. Rebuilding a school sys-
$2.9 million went to education.
to offer summer and per-
term proved tougher. Reading and math
Not all educators welcome corpo-
JOE TRAINING
manent jobs in exchange
scores rose modestly. Attendance went
rate largesse. Some worry there
Boston's intern
for improving the schools.
up. But Boston's dropout rate is stuck at
will be strings attached. "We've
Last year, 669 Boston
46%. "The business community has done
been in the business of education
program is giving
companies created summer
its job. I think everyone's disappointed on
for 126 years," says Robert Astrup,
many poor youths
jobs for 3,000 students, at
the school aide," declares Edward E. Phil-
president of the Minnesota Educa-
their first jobs.
an average hourly wage of
lips, chairman of insurer The New En-
tion Assn., which represents 80% of
$5.39. Napoleon "Eddie"
gland. To do more, he says, "would be a
the state's teachers. "We would
Eddie Santos (right)
Santos, 17 and a senior at
pretty unfair burden on businesses. We
like businesses to be advocates-
is an apprentice
Dorchester High School,
pay hefty taxes to support the system
not leaders." Joan Canella, director
got his first real job that
maintenance
already."
of the Bank Street School for Chil-
way, This summer he was
But some corporate leaders insist an
dren in New York, sees it another
engineer
one of-four full-time in-
even broader burden must be borne. Har-
way: "The best thing business can
old W. McGraw Jr., chairman emer-
do for schools is make it possible to
itus of McGraw-Hill Inc., which
combine work and family, allowing
publishes BUSINESS WEEK, heads
working parents to get involved
the Business Council for Effective
with the schools."
Literacy, aimed at millions of U.S.
HARD KNOCKS. Dade County, Fla.,
adults who lack functional reading
hosts one such experiment. To ease
skills. Owen B. Butler, retired
overcrowding and reduce working
chairman of Procter & Gamble Co.
parents' stress, the school system
focuses on the very young: "The
set up minischools in workplaces.
best way for business to invest in
Last fall, American Bankers Insur-
educating the disadvantaged is to
ance Group Inc. opened the first
reach them early. By age 5, they're
"satellite learning center" to serve
already 30 deprived they can't bene-
employees. It built a $850,000
fit from schooling," he says. Butler
schoolhouse for 50 kindergarteners
lauds such efforts as Success by
and first graders. The county pro-
Six. In that program, Minneapolis
vides teachers and books.
employers, civic groups, and
In Chicago, local companies, in-
schools spent $647,000 this year on
cluding Borg-Warner, Sears, John-
early childhood health and educa-
son Publishing, and McDonald's,
tion through the local United Way.
opened their own school. Privately
A departure from corporate prac.
funded, tuition-free, the Corporate/
tice? Not for Butler. "It took us
Community School of Chicago is to
years to develop Tartar-Control
be a laboratory-in-action addressing
Crest, years to make & profit on
the problems of inner-city schools.
our investment. So we understood
Its enrollment, now at 150, will
the economics of early childhood
grow to 300 children, from nursery
programs." For him, the long view
school to eighth grade.
on education is just good business.
Perhaps the most obvious role
By Elizabeth Ehrlich in New York,
for business is to help bridge the
with bureau reports
BETH RESMICK
118
ASST SECT-ETA P22
Special Report
ed in poor communities as role models.
only stable institutions in some kids'
ing to do society's work, the schools
Increasing pay can help recruit and
lives. A handful of inner-city schools are
must respond."
retain teachers. But so far efforts in
trying on-site day care for teenage moth-
One way to make the schools more
that direction have raised average start-
ers, after-school hours to increase. learn-
responsive to the needs of the students
ing salaries only to the $18,000 range-
ing time, and intensive anti-dropout
is to force them to compete for students.
hardly enough to entice talented-stu-
counseling. Arkansas, New York City,
Some 20 years ago economist Milton
dents away from other professional
California, and Minnesota have started
Friedman, a Nobel prizewinner, pro-
tracks. A few school districts, though,
prekindergartens for four-year-olds.
posed issuing vouchers to families for
now pay their best or most experienced
"Pedagogic reforms are wasted unless
the amount it costs to educate their kids.
teachers several times that amount.
you do something about social-capital
Parents would select among the schools,
To attract more teachers,
"paying" with the vouchers,
New Jersey is experiment-
so schools would have to up-
ing with alternatives to the
grade or lose funding.
standard-certification route
Although no school system
so that college graduates in
has yet issued a Friedman
fields other than education
voucher, there is growing
can come aboard. Using au-
support for the idea of pa-
diovisual aids, computers,
rental choice to foster com-
satellite teaching, team-
petition, accountability, and
teaching, and even switch-
parental involvement. The
ing to staggered semesters
National Governors' Assn.
can cut down the number of
believes that choice within
teachers required as well.
the public schools "can pro-
Moving teachers who
mote equity." Poor kids,
have been promoted into
claims Heritage Foundation
management jobs back into
analyst Jeanne Allen, would
classrooms could be one so-
benefit most, since wealthier
lution to the labor shortage.
families already choose
School systems are notori-
schools by moving to com-
ously bureaucratic. Accord-
munities with good ones.
ing to the AFT, from 1975 to
In the past, though, choice
1986 school districts hired
has sometimes been used to
one curriculum adviser, pro-
thwart integration. In some
gram director, or other desk
places, so-called magnet
worker for every new class-
schools-the best schools in
room teacher. "Before we
the district-skim off the
ask for additional funds,
community's best students,
we must reorder our priori-
leaving other schools worse
ties," says Mary Hatwood
off. "You don't improve
Futrell, president of the Na-
schools by running away
tional Education Association
from schools," bristles NEA
(NEA).
President Futrell. Minneso-
How to shrink staff and
ta's teachers are suing their
administrative functions
state over its new Choose-s-
isn't the only thing schools
School plan, which lets kids
can learn from business. In-
enroll in any public school.
centive pay can also help. In
Other experiments are on
Rochester, N. Y., last year,
A RAGING DERATE
building," says Primerica direc-
the way. Boston University is taking on
the teachers' union sat down
Traditionalists
tor and social activist William S.
the reorganization of the troubled Chel-
with administrators to bar-
Woodside.
sea (Mass.) school system. New Jersey
gain for school-based deci-
stress the importance
Northeastern University econ-
has begun a hostile takeover of Jersey
PHOTOGRAPHS BY HORM/PICTURE GROUP, HARRS/THE STOCK MARKET
sion-making and pay hikes
of a strong
omist Andrew Sum argues that
City schools, whose performance was
of more than 40%. The new
curriculum and
an extended school year, which
close to meltdown. But much of the ays-
contract also established a
the Japanese have shown bene-
tem still is plagued with inertia and insti-
career ladder with a top
high standards.
fits middle-class pupils, can do
tutional rigidity. If there is to be mean-
rung of so-called lead teach-
Others want reforms
even more for poor kids who,
ingful reform, adversaries in the
ers who can earn up to
left to home and peer influ-
education community will have to cede
$70,000 per year in the con-
such as peer tutoring
ences, tend to lose ground in
cherished turf and cooperate.
tract's third year. Top pay
and team learning
summer. California is moving to
The alternative-bumbling along from
requires them to accept as-
year-round schools to increase
crisis to crisis while presiding over de-
signments in the system's toughest
learning time-and to handle a shortage
cline-is simply not acceptable. Schools
schools, now often in the hands of novice
of classroom space.
are the crucible where children do or
teachers. "They'll be the Clint
SCHOOL VOUCHERS. Sar Levitan of
don't become productive members of the
Eastwoods of teaching," says union
George Washington University believes
community. For children growing into
head Urbanski.
schools must assume even more roles to
citizens-and for a society that wants to
Reaching disadvantaged kids in tough
fill the gap left by working mothers.
prosper-education is just too important
neighborhoods also may require expand-
"I'm not a moralist, I'm only an econo-
to entrust to the status quo.
ing the traditional role of schools-the
mist," Levitan says, "If women are go-
By Elizabeth Ehrlich in New York
119
02.
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Special Report
IT'S TIME TO PUT OUR MONEY
WHERE OUR FUTURE IS
Investments in education and training will yield sure-fire returns we can't afford to ignore
In the U.S., when
nologies will demand that skills keep im-
ment should come through loud and
you turn 18 or be-
proving. Ignorance costs far more than
clear. The federal government, state and
come a citizen, you
knowledge.
local governments, business, labor, and
may register to
In B $4 trillion economy with a $1 tril-
the electorate will all have to do their
vote. The process
lion federal budget there is surely room
part. What should be done? Here are
varies from state
for some shifts in spending: away from
some suggestions:
to state, depending
plant and equipment and toward work-
Instill the habite of learning and work.
on the requirements of the local board
ers; away from the aged and toward the
ing In kids at an early age. "Early inter-
of elections. But one thing is true across
very young; and even away from guns
vention" by means of preschool pro-
the nation: You do not need to be able to
and toward people. Whoever wins the
grams has shown proven results.
read or write. The Voting Rights Act of
Presidential election on Nov. 8 should
Numerous studies demonstrate that the
1965 and its amendments abolished liter-
spearhead a new national commitment to
younger the child, the greater the long-
acy tests, among other discriminatory lo-
America's future by investing in its peo-
run payoff of an investment in that
cal requirements, that had long disen-
ple. Whatever it takes-new money or a
child. Often moth-
franchised millions of black and
reallocation of resources-the commit-
ers become in-
disadvantaged citizens.
Yet today the person who can vote but
cannot read and write remains disen-
franchised in another, more fundamen-
tal, sense. The right to earn a decent
wage and make a productive contribu-
tion to society can't easily be exercised
by the illiterate, the poorly educated,
and the unskilled. Disenfranchised, too,
is the unemployed steelworker unable to
find the job to fit his unneeded skills.
Then there's the single mother unable to
find affordable day care for her toddler
so that she can go to work.
The cold, hard, economic facts make a
compelling case for action. The direct
costs are clear: Incomes are lost, and
unemployment and welfare benefits are
paid out But the overall loss to the econ-
omy is bigger still. America's most pro-
ductive resource, its people, is not being
fully utilized.
TIME BOMB. The bean-counters in Wash-
ington and state capitals around the
country will say there is no money
available to invest in educating and
training tomorrow's work force. And
some economists, such as University of
Chicago professor and BUSINESS WEEK
columnist Gary S. Becker, whose pio-
neering work measured the rate of re-
turn to investments in human capital,
would prefer that market forces elimi-
nate the mismatch between jobs and
skills. But labor markets take time to
work, and time is of the essence. Al-
ready the nation has suffered the conse-
quences in the international market-
place; in the future, flercer competition,
changing demographics, and new tech-
120
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OF
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SECT-ETA
P24
volved in these programs as well, and
derly have grown faster than inflation.
Dept. could do more to promote demon-
they help to nurture and sustain 8 learn-
Prenatal and preschool programs could
stration projects and fund education re-
ing ethic in their kids.
reach most eligible participants with an-
search-efforts that would help educa-
For every dollar invested in preschool
nual funding of anywhere from $2 bil-
tors improve the schools.
programs such as the government's 23-
lion to $10 billion, experts estimate. In-
Adopt major new Incentives to train
year-old Head Start program or the Per-
creases of such magnitude, observes
and retroin workers. In a competitive
ry Preschool program in Ypsilanti,
Isabel V. Sawhill, senior fellow at the
and rapidly changing economy, old skills
Mich., more than four times that amount
Urban Institute in Washington, "won't
become outdated and new skills are
is saved in public assistance, special edu-
exactly kill us."
needed. "Most of us, after the age of 25,
cation, and other costs. Children enrolled
Pay teachers more, and perhaps trans-
change occupations three times and jobs
in such programs are much more likely
form the whole teaching process. First
six times," observes Pat Choate, director
to graduate from high school and be
there was reform, now there's restruc-
of TRW Inc.'s Office of Policy Analysis.
employed than children not enrolled in
turing. The process has begun, but more
How to prepare people for those
the programs. Some experts urge even
has to be done to enable the nation's
changes? Spread the cost of training
earlier intervention, saying help should
schools to prepare students for life and
through new initiatives. An investment
begin in the womb. Each dollar spent on
work. This could involve "team" instruc-
tax credit to businesses for money spent
prenatal care saves $8.88 in the cost of
tion, with highly qualified "lead" teach-
on improving worker skills is one idea.
care for law birth-weight babies.
crs, and new ways to teach thinking
Or 8 tax credit could be granted to indi-
At the moment the government
skills as well as the basics.
viduals for investments in training and
spends about $2.4 billion a year on the
While the impetus and financing for
education they make on their own. An-
care and education of preschoolers. Com-
these changes must come at the state
other incentive to both employers and
pare that with a tab of $8.7 billion for
and local level, the federal government
workers would be a tax-free individual
one year's spending on space research
can play an important role as & catalyst
training account, akin to the individual
and technology. Or $88 billion for a sin-
for change. The Education Dept. has &
retirement account, which could be joint-
gle year's worth of military research,
mixed record on this score. Its report, A
ly contributed to by workers and busi-
development, and testing. Or compare it,
Nation at Risk, shook up public school
nesses. For years, any tax break grant-
even, with spending on the elderly. Since
administrators and launched a reform
ed industry has been skewed way in
1980, social programs that benefit chil-
process, but outgoing Education Secre-
favor of physical investment. These pro-
dren have suffered budget cuts in real
tary William J. Bennett has been impa-
posals would reverse that blas.
terms, while programs benefiting the el-
tient with results. And the Education
Tallor the workplace to the new labor
force. To retain female workers who
have many years' experience, and to en-
able those workers to be more produc-
tive, companies should extend child-care
benefits to a far greater extent than
they have to date. To keep older workers
productive, employers should offer new
duties and more flexible hours. And
granting workers portable benefits
could make them more mobile, and thus
more responsive to the fast-changing la-
bor demands of employers.
Too frequently, managers have looked
at workers as 8 cost rather than a re-
source. And every extra dollar spent on
workers was viewed as that much more
of a burden, whereas it could be, if wise-
ly spent, a means to empower workers
to do better. Hundreds of companies
now recognize this to be true with re-
spect to training. Investments in train-
ing yield tangible rewards, and accord-
ingly business spends approximately 380
billion a year on training. The rewards
of changing the workplace are also
large. But a massive cultural adjustment
may be necessary to realize them.
There's no doubt that government is
in 8 belt-tightening mood, and business
is eager to keep costs under control. But
without strong leadership and new
spending priorities, America's most pre-
clous resource will be neglected. In the
words of a familiar advertisement: A
mind is a terrible thing to waste.
By Karen Pennor in New York
For information on reprints of this Special Report,
call Business Week Reprints at 609 426-5494, or
write Business Week Reprints, P.O. Box 457,
Hightstown, N.J. 08520.
121
INDUSTRIAL
EDUCATION
December 5, 1989
Ms. Holly Williamson
THE WHITE HOUSE
OEOB 117
Washington, DC 20500
Dear Ms. Williamson:
It was a pleasure speaking with you last week.
I
am
very
please
with
the
president's decision to write an article for our publication, INDUSTRIAL
EDUCATION. As you are well aware, all eyes are on education here in the United
States, and technological training is a major aspect of the overall education
picture of the future.
INDUSTRIAL EDUCATION serves 48,500 teachers and administrators in the secondary
and postsecondary levels of education. The editorial content focuses on
advanced technology and its interface with the future workplace. The three
R's are no longer sufficient to enable a young person to function in society.
The need for technological proficiency is extremely important today.
The allocation of funds for education is secondary to the proper use of those
funds. I believe this philosophy is in line with the president's thinking
on educational spending.
The media has labeled President Bush the "Educational President." We would
like to offer him the opportunity to tell our readers and their colleagues
where he sees education going, and how they can support his efforts.
I have enclosed several back issues of our publication for your review. I
do not wish to direct this too much, as I am more interested in the president's
thoughts on education rather than mine. If you wish to have more direction,
please do not hesitate to call me.
I look forward to hearing from you when you have additional information for
US. This article is scheduled for the March issue, SO we will need copy in
mid-January. We would also like to run his photo on the cover, as we see this
as possibly the most important issue of the year. Please let me know if I
can be of additional help.
Sincerely,
Andrew J Cummins
President
AJC/lt
Enclosures
Cummins Publishing Company
26011 Evergreen Rd
Suite 204
Southfield, MI 48076
313/358 -4900 Fax: 313/358 -3965
Cummins Publishing Company
26011 Evergreen Road
Suite 204
10, 1989
Southfield, Michigan 48076
313/358-4900
Fax:313/358-3965
30
Honorable George Bush
President of the United States
The White House
Washington, DC 20500
Dear Mr. President:
As the publisher of a national publication serving teachers and
administrators in vocational and technical education, I must commend
you on your recent educational initiative. The education summit, held
at the University of Virginia, is a major stride toward opening the
eyes of all Americans to the need for improvement in our educational
system.
Our publication, INDUSTRIAL EDUCATION, serves the vocational/technical
segment of the educational market. Our 48,000 readers are teachers
and administrators in the secondary and post-secondary levels of
education. This represents an important segment of education in general
because it focuses on specific job skills training and future job
employment for those students who will either go on to an engineering
program or into the labor force with a specific skill.
This influential audience would be very interested in knowing how your
perspective on education interfaces with their special needs. I would
like to request an interview with you SO that we may highlight you
and your programs for our readers.
The article would focus specifically on you and what your administration
is doing to improve education in the United States. We would like to
help you take your message directly to this audience, as they are
extremely interested in knowing what role they will play in the future
of education in this country.
As I am aware that your schedule is much more complex than mine, I will
make myself available at your convenience. I look forward to this
opportunity and your earliest response.
ander Very Andrew Editor Truly Publisher J. Cummins Yours a
position I what onfuture would of lieu ed + accuringl,
life,
AJC/lt
oncour
colored
2.
650
woowords
-notyet
CO
50,000
in
HS/Ubcrch
WORKFORCE 2000
WORK AND WORKERS FOR THE 21ST CENTURY
116
WORKFORCE 2000
factories, mines, and production machinery within a nation's bor-
ders.
As the miraculous rebirth of Europe and Japan after World War II
has proven, however, the foundation of national wealth is really
people-the human capital represented by their knowledge, skills,
organizations, and motivations. Just as the primary assets of a
modern corporation leave the workplace each night to go home for
dinner, so the income-generating assets of a nation are the knowledge
and skills of its workers-not its industrial plants or natural resourc-
es.
As the economies of developed nations move further into the
post-industrial era, human capital plays an ever more important role
in their progress. As the society becomes more complex, the amount
of education and knowledge needed to make a productive contribu-
tion to the economy becomes greater. A century ago, a high school
education was thought to be superfluous for factory workers and a
college degree was the mark of an academic or a lawyer. Between
now and the year 2000, for the first time in history, a majority of all
new jobs will require postsecondary education. Many professions
will require nearly a decade of study following high school, and even
the least skilled jobs will require a command of reading, computing,
and thinking that was once necessary only for the professions.
Education and training are the primary systems by which the
human capital of a nation is preserved and increased. The speed and
efficiency with which these education systems transmit knowledge
govern the rate at which human capital can be developed. Even more
than such closely-watched indicators as the rate of investment in
plant and equipment, human capital formation plays a direct role in
how fast the economy can grow.
If every child who reaches the age of seventeen between now
and the year 2000 could read sophisticated materials, write clearly,
speak articulately, and solve complex problems requiring algebra and
statistics, the American economy could easily approach or exceed the
4 percent growth of the boom scenario. Unconstrained by shortages
of competent, well-educated workers, American industry would be
able to expand and develop as rapidly as world markets would allow.
Boosted by the productivity of well-qualified workforce, U.S.-based
companies would reassert historic American leadership in old and
new industries, and American workers would enjoy the rising
standards of living they enjoyed in the 1950s and 1960s.
01.04..90 05:14 PM *PUBLIC AFFAIRS SERV. P02/09
DRAFT
industrial ed mag
C. 1250 words
500-750
650-1000 requested for final article
wang 1024E
susan wolf
732-4569
We are spending more than $350 billion a year on education in
this country, but the return on our investment has been
disappointing. One in five high school students drops out of
school. Almost one in five high school graduates cannot read
NEG
at the level necessary for most entry-level jobs in business or
industry. The challenge is this: How are we going to make
independent, productive citizens of our young people and of
others not now part of our economy?
01. 04. 90 05:14 PM *PUBLIC AFFAIRS SERV. P03/09
-2-
School reform is under way. We are raising expectations and
standards, encouraging excellence. We are improving the
Refor
accountability of teachers for what they teach, of students for
what they learn, and of institutions for the results of their
programs.
One important reform being considered and adopted in many
states is a policy known as choice, which allows parents to
choose the public schools their children will attend. This
approach forces schools to compete for students by offering
choic
quality programs, encourages some schools to specialize in
areas in which they excel, and enhances parent involvement. In
the process, bureaucracies are streamlined to allow individual
schools to be more autonomous and innovative. You in
vocational and technical education, who have always had to
market your programs to prospective students, have extensive
experience with the choice concept.
In addition, perhaps no other program has as much potential for
bringing individuals into the mainstream of productivity as
vocational education. Vocational education can benefit a vast
array of untapped talent--dropouts and at-risk high school
students who see no opportunities; postsecondary students who
see bo connection between school and work; the underskilled who
need training; the older and more experienced workers who need
additional training; the disabled seeking the chance to prove
01. 04. 90 05:14 PM *PUBLIC AFFAIRS SERV. P04/09
-3-
their abilities; dual career families who need flexibility. In
fact, it is crucial that vocational education enlist and
develop the unlimited potential of such individuals.
You know that the end of the "Baby Boom" is leaving us with a
shrinking work force. By 2010, there will be more jobs than
job seekers. More than half those jobs will require a year or
more of studies eyond high school. In addition to job skills,
workers will increasingly need strong basic skills--reading,
writing, and computing--and the adaptability to be trained and
retrained as technology advances. It is estimated that more
than 50 million people will need some kind of vocational
training between now and the end of the century.
Obviously, a great part of the challenge ahead falls squarely
in the lap of vocational education. Meeting the needs of 50
million people will call for better, new, and well-coordinated
programs. It must be our goal to prevent even one individual
from slipping through the cracks.
We know that vocational education has launched many successful
careers and turned lives around:
*Major General Joe Henry Engle, who has commanded two U.S.
space shuttle flights, started out as an industrial arts
student in a Kansas high school.
Eq
01. 04. 90 05:14 PM *PUBLIC AFFAIRS SERV. P05/09
-4-
*Dorothy Holland, the first woman vice president of Kraft,
Inc., began her career teaching home economics in a vocational
education program.
*Internationally known fashion and home furnishings
designer, Norma Kamali, is a graduate of a vocational
school--the Fashion Institute of Technology in New York.
*George Shinn worked his way through vocational school as a
janitor. Eventually, he owned 22 business schools in 10
states. In 1975 he won the Horatio Alger Award given for
rags-to-riches success and is the author of The American Dream
1
Still Works.
*Frederick J. Napolitano, chairman of the board of Pembroke
Loth
Enterprises, Incorporated in Virginia Beach, Virginia, began
his career as an apprentice bricklayer at the age of 18 and
then studied at the Mechanics Institute in New York City.
Although the current federal financial contribution to
vocational education is only a small part of total
funding-only one in every 10 to 12 dollars expended
nationwide--federal leadership can help point the way toward
Fel.
Fed
more effective vocational education programs. The Perkins
Act, the basic vocational education grant to the states, is
currently undergoing reauthorization by Congress. The
01. 04. 90 05:14 PM *PUBLIC AFFAIRS SERV. P06/09
-5-
Administration's Vocational Education Excellence Act of 1989,
which is currently under consideration by the Congress,
recommends improvements to the Perkins Act in several areas:
ACCOUNTABILITY: Our bill would require the states to develop
specific goals for student improvement in basic skills, in job
Fel.,Lob
skills, for success in the labor market, and for any other
areas the states deem appropriate. Further, we recommend that
states be required to use these goals in measuring the quality
of federally funded vocational training programs to determine
which programs should receive continued support.
SIMPLIFICATION AND FLEXIBILITY: Because activities for special
populations needing federal support may differ considerably
from one region of the country to another, our bill emphasizes
more state and local direction of federal funds. Our bill
would retain the requirement that 57 percent of basic state
grant funds be allocated for special populations. But, within
that amount, most set-asides, hold-harmless requirements, and
special formula grant programs would be eliminated to give the
states more flexibility.
PROGRAM IMPROVEMENT: Currently, 26 different activities are
authorized under the program improvement portion of the basic
grant. We propose reorganizing these into three broad
categories: (1) professional development of teachers,
01. 04. 90 05:14 PM *PUBLIC AFFAIRS SERV. P07/09
-6-
counselors, and administrators; (2) acquisition of
instructional equipment and materials and (3) curriculum
development, dissemination, and field testing. All would be
linked closely to program improvement to ensure that federal
funds are used for improvement, expansion, and program
innovation rather than for maintenance of ongoing programs.
ECONOMIC DEVELOPMENT: Our bill includes new provisions to
ensure that Perkins Act funds are coordinated with state and
local economic development. The bill would require the states
to use funds for occupationally specific programs solely to
train students for jobs in which openings are projected and not
likely to be filled without the continuation or establishment
of public vocational education programs. Further, the proposal
would shift from the state legislature to the governor the
authority to review state plans to ensure that vocational
education programs are coordinated with the overall economic
and job training strategy in the state, including Job Training
Partnership Act programs.
In addition to these legislative proposals, I would like to
What
suggest other ways in which you as administrators and teachers
can work to improve vocational education programs.
01. 04. 90 05:14 PM *PUBLIC AFFAIRS SERV. P08/09
-7-
Too often vocational education is seen as a separate program
rather than as an integral part of a school's curriculum. But
when vocational programs are tied to regular classroom
learning, the vocational student has the chance both to master
basic skills and to learn theories that have practical
application in vocational classes. Another type of program
that can serve vocational students well involves coordinating
curricula between a secondary school and a postsecondary
institution, making for a comprehensive course of study. I
urge you to be creative in coordinating vocational education
and academic resources and in coordinating vocational education
cando
programs offered by different types of institutions.
I also hope you will continue to seek out partnerships with the
private sector. Business leaders are in touch with current and
projected labor needs. They can help set goals in vocational
education and can help keep the curriculum fresh and
up-to-date. In addition, partnerships with local businesses
and the community at large can provide expertise as well as
role models to help students see the relevance of their
training and to inspire them to set ambitious goals for
themselves.
I have asked the Department of Education to work closely with
Congress to achieve the most effective legislation possible to
01. 04.90 05:14 PM *PUBLIC AFFAIRS SERV. P09/09
-8-
enable our vocational education system to meet the challenge
ahead. We must offer the chance for a productive life and a
place in the economy to every individual in this nation.
Vocational education can do just that for millions of
Americans, and I do not think it is going too far to say that
the future of this nation depends to a great extent on the
success of your efforts in vocational education.