The Employment Skills / Education Mis-Match Gap in the USA
New report from the US Chamber of Commerce:
"Our Country is facing a critical disconnect between the skills and education levels our US workforce brings to the job, and what businesses need"
In Today's market and Global economy, many US businesses want and need workers with higher levels of College education, or work skills / experience to fill their professional capacity employment positions... but they can't find them locally
Businesses want the 'best and brightest', but according to the latest reports, data and statistics from the U.S. Chamber of Commerce, the U.S. Census Bureau, and the U.S. Department of Labor....
1. US Employers want College Degree educated workers, and/or Highly Skilled workers
2. A large majority of unemployed America does NOT have the required College Education, OR, the Professional Skills and Experience levels that these employers want
3. A large majority of the unemployment pool is 'Low-Skilled' and 'Low-Educated' workers
4. A large majority do NOT have 'any' level of College Education (they only have School education)
5. An even larger majority do NOT have Bachelor's level degrees (approx 70% do Not)
6. A huge majority do NOT have Master's level degrees (approx 80% do Not)
7. These 'Low-Skilled' and 'Low-Educated' workers do NOT have the required qualifications, experience or training to perform highly skilled jobs in highly skilled professions such as IT, Engineering, Business, Finance, Sciences, HealthCare or Teaching
8. Employers want and need 'high-skilled' and 'highly-educated' workers who DO have the required qualifications, experience or training
9. Incredibly, the official data and reports show there is a very wide "gap" and "mis-match" between what employers want and need, compared to the levels of Highly educated and Skilled workers available in the local US workforce
10. Alternatively, Highly Skilled Immigrants: those that Qualify for the H1B visa program DO have and DO provide the required Higher Education and Higher Skills levels that are needed
* to Qualify for an H1B visa a worker MUST have a Bachelors Degree (or higher level degree such as a Master's), and/or, have highly skilled work experience in a professional capacity
11. Accessing the Global talent pool to recruit H1B visa workers provides US businesses with the required level of workers that that they want and need Report and Data From: US Chamber of Commerce
US Census Bureau
US Department of Labor
* the report that you can watch by clicking on the above link was also televised Nationally on Saturday 1st October 2011. It is one of the most eye-opening and enlightening 'factual reports' you will ever see (especially for Foreign Nationals that want H1B visas)
On a 'macro' scale: U.S. unemployment hovers at nine percent, and while many Americans are unemployed, the U.S. Department of Labor reported there are currently three million available jobs. According to reports a large majority of Unemployed America does Not have the required Skills and Higher Education levels that many US employers want and need to fill many of their open jobs.
Against this backdrop, the U.S. Chamber of Commerce announced a new report that paints a clear picture of the employment landscape and the key dynamics both workers and employers need to consider as they seek to recruit and promote excellence in the workplace.
Fifty-three percent of US employers say their companies face a significant challenge in recruiting employees with the 'right' skills, experience, training, and education level their company needs. The results summarized in Life in the 21st Century Workforce: There is a Huge Gap between the skills / education level that US businesses are requiring, compared to what they can recruit locally: "Despite the country's current unemployment levels, there are literally millions of jobs available for people with the "right" skills and the right education. We must look to the future and focus on providing students with a relevant education – one that prepares them with the expertise they need for successful careers in the workforce of tomorrow."
The Employment / Education Divide is very clear: when you break the figures and statistics down and analyze them there is a huge divide between Degree Educated workers and the larger majority of unemployed Americans that do not have Higher Education (which results in a severe Employment Skills Gap as illustrated below).
Higher Education Pays.8 out of 10 US employers said a Degree is necessary to succeed in the workforce today
The 'average' Unemployment Rate is: 9.1%
The actual Rate for people with NO Degree is: 15% (less than a High School Diploma) The Rate for those with Bachelor's Level Degree is: 4.3%
The Rate for those with a Master's Degree or Doctoral Degree is: +-2%
Source: US Department of Labor
* The US Department of Labors statistics show a large majority of Unemployed US workers do not have College Degrees, and therefore do not meet the levels of education that US businesses require to fill many of their employment positions.
US businesses want the Best and the Brightest. In today's market conditions, employers want, and need, and are prepare to wait for the 'right' candidates (those with higher education and the 'right' skills and expertise they need). They want the 'Best and the Brightest' to help their Companies, and that often means seeking and recruiting Foreign Nationals through the H1B visa program.
The H1B Visa Program Reduces the Skills / Education Gap. The US Chamber of Commerce report states that many US businesses can Not find and recruit new employees at the level of Degree education and skills that they require. The H1B visa program offers a prime solution. These US businesses can recruit "H1B workers" who do have the required College education / degree levels and the required skills and experience levels (to qualify for the H1B visa program a Bachelors or higher level of Degree is required)
A National Perspective indicate agreement across both employers and employees that education – including continuing education and advanced degrees – is critical to ensuring workers have the skills necessary to advance in their professions. They also agree that interpersonal skills, collaboration, critical thinking, and problem-solving are important to providing the most benefit to employers and the workforce alike.
"There is considerable discussion focused on the skills employees need to succeed in the workplace," said Margaret Spellings, senior advisor to the U.S. Chamber of Commerce and former U.S. Secretary of Education. "However, it's imperative we understand the issue from the inside-out in order to improve the way we prepare our future workforce. The results of Life in the 21st Century Workforce: A National Perspective can help inform employers, employees and jobseekers seeking to stand out in the increasingly competitive job market."
The H1B visa is a prime solution to attract and recruit high-quality skilled and educated workers from abroad
In today's workplace, the labor force considers past work experience (50%) to be the most important factor when companies are making hiring decisions, outdistancing people management and communication skills (27%). However, when it comes to being promoted, workers are far more likely to consider people management and communication skills (46%) as more important than past work experience (38%).
Among the key findings of the Life in the 21st Century Workforce study:
• Eight-in-ten employers (80 percent) believe that education is 'critical' to ensuring that workers have the competencies necessary to advance, and 72 percent of the labor pool agree.
• U.S. workers believe that going back to school will have a direct impact on their career: the most common reasons for going back to school are to advance their career (89 percent), increase their salary (89 percent) or gain training for a specific job (88 percent).
• Moreover, employers believe that increasing the number of workers who complete post-secondary education programs and receive a degree or credential will contribute to the success of their company.
• In today's workplace, the labor force considers past work experience (50 percent) to be the most important factor when companies are making hiring decisions, outdistancing people management and communication skills (27 percent).
• However, when it comes to being promoted, workers are more likely to consider people management and communication skills (46 percent) as more important than past work experience (38 percent).
• And employees (77 percent) see continuing education as vitally important for success in their careers.
• Forty-six percent of workforce respondents say their company pays all (17 percent) or some portion (29 percent) of tuition.
• Meanwhile, 50 percent of employers say they have a tuition assistance program. In addition, 57 percent of employers interviewed offer flexible schedules to accommodate post-secondary education and training.
• Business leaders place a premium on post-secondary education programs preparing individuals for success in the workplace (56 percent), providing individuals with core academic knowledge and intellectual skills (51 percent) and providing individuals with the workforce skills and knowledge for success in a specific career (50 percent).
• Conversely, employees place more weight on program elements that affect their day-to-day life; a flexible schedule is the most important attribute for workers (21 percent), while 16 percent say both cost of tuition and practical learning experiences are the most important.
* The workforce survey findings presented here are part of a multi-audience, multi-location research project sponsored by the
University of Phoenix. The U.S. Chamber of Commerce / Civic Enterprises study. Respondents included C-suite level executives, senior vice presidents, officers, and vice presidents at companies across sectors. Survey interviewing and analysis were completed by APCO Insight, an international opinion research and consulting firm. The survey was designed and conducted by Peter D. Hart Research Associates. The report was commissioned by the Bill & Melinda Gates Foundation.
US businesses need the best and brightest workers, and they can not find them locally. Many are turning to the H1B work visa program and the Global talent pool
Does America Have Enough Skilled Workers to Compete Globally? That was the overarching question posed to a panel of labor experts at the National Journal’s “Making America Competitive in the Global Economy Summit” this morning. Randy Johnson, U.S. Chamber Senior Vice President of Labor, Immigration & Employee Benefits, answered - “NO,” citing feedback from Chamber member companies as well as recent studies that document a shortage of skilled workers.
Immigration reform, including raising caps on visas for high skilled workers, is also an important part of the solution, Johnson noted. Read the full report