emerging economies

Emerging Economies

Where do we stand - and a Need for Change

Look at the Headlines for Trends

• 90% of the fastest growing jobs will require post-secondary education

• Business is spending billions per year to train new employees and remediate skill gaps

• We have an aging workforce – 77 million baby boomers are retiring in the next 10 to 20 years.

• The Lack of US trained scientists and engineers is a direct threat to US innovation leadership.

Consider 20 teenagers entering the 9th grade today

• 6 will NOT graduate high school • 6 or 30% will enter the workforce directly from

high school• 8 will go to college• ½ of the 8 will drop out of college• 4 will graduate from college• 2 of those will be in high skilled occupations• The other 2 will be underemployed.

The UnitedStates is stillamong the topnations in theproportion ofolder adultsholding acollege degree

…but it dropsto 7th in theeducationalattainment ofyoung adults.

The U.S.remainsamong theleaders incollegeparticipation

but it ranksin thebottom halfin collegecompletion.

% of students with degrees/Certificates or completion ofcollege

Today’s students have been raised in a TECHNOLOGY based world

China is Stabilizing the US & World Economy

China is the Largest buyers of US Treasurybills

China owns $1 TRILLION US bonds

China will increase by 25% per year for next 20 years

More than ½ of the population of China is under the age of 25.

CHINA by numbers• As of 2005, China had 160 cities of 1 million or more

people. The USA had 9 and all of Europe had only 36. • Estimates of numbers ranging from 90 to 300 million

Chinese have migrated into coastal cities in China. • In China, $1.00 buys approximately what $4.70 buys in

Indianapolis, Indiana. • China is coming up on a 30 year run in which its

economy has doubled nearly 3 times over. • In 2005, China manufactured nearly 40% of all of the

furniture sold in the US.• In 2003, China bought 7% of the world’s oil, 25% of the

world’s aluminum and steel, 33% of world’s iron ore and coal, and 40% of the world’s cement

• You earn in one hour what the average Chinese earns in 1 year

• 100 new Megacities (cities with 10 million plus people) will be built in China by 2015

• By 2020, China will be the largest consumer market, more than the US and Europe combined.

• China is locking up billions of oil future contracts in anticipation of future demand.

China has:• 220 Million surplus workers• More people that speak English as a

second language than the US has people• More people using the internet than there

are people in the US• 5 million new people monthly signing up

for mobile phone services

The job market is changing, and the required skills to compete in that job marketare changing.

It was completely the opposite in 1950 – with 65% of the jobs being for unskilled, and skilled being about %15.

In 1950, about 50% of the jobs were for unskilled labor and only about30% for skilled labor.

But in 2014, it is projected that unskilled labor will only account about5% of the jobs and skilled labor nearly 75% of jobs

Because we are becoming a World Economy

Our children may become the first US born citizens to seek job opportunities abroad; And they will be competing with highly skilled people at lower pay.

Today’s workforce in the US has been described as falling into 3 categories:

~25% well educated with special skills

~25% “Walking Dead”, need to acquire new skills to be employable.

~50% “Techno-Peasants” poorly educated with few career skills.

Who is at RISK?

• Anyone with low skill levels, training, and education.

• People performing routine jobs requiring low to medium skill levels.

• High school graduates with no further certification and training

• Of course, high school drop-outs.