Greater Cleveland’s Greater Cleveland’s Economy and a Skilled Economy and a Skilled

WorkforceWorkforce

Raymond HartRaymond Hart

Seminar OverviewSeminar Overview

Skilled Workforce NeedSkilled Workforce Need Economic Growth IndicatorsEconomic Growth Indicators Adult Education Cost-Benefits Adult Education Cost-Benefits

AnalysisAnalysis Economic Impact of Adult Education Economic Impact of Adult Education

ProgramsPrograms Questions & AnswersQuestions & Answers

Skilled Workforce Skilled Workforce NeedNeed

34.1% of tested applicants lacked basic 34.1% of tested applicants lacked basic skills needed for job performanceskills needed for job performance

84.6% of testing firms did not hire skill- 84.6% of testing firms did not hire skill- deficient applicantsdeficient applicants

3.5% hired skill-deficient applicants and 3.5% hired skill-deficient applicants and provided/assigned remedial trainingprovided/assigned remedial training

3% hired skill-deficient applicants and 3% hired skill-deficient applicants and recommended voluntary trainingrecommended voluntary training

8.2% Other8.2% OtherSource: American Management Association, American Management Association Research Survey: Corporate Concerns. American Management Association, New York, 2001 as cited in the National Institute for Literacy Workforce Education Fact Sheet retrieved June 2, 2007. Web site: http://www.nifl.gov/nifl/facts/facts_overview.html

Skilled Workforce Skilled Workforce NeedNeed 51.8% Cleveland Municipal School District 51.8% Cleveland Municipal School District

students currently graduatestudents currently graduate Cleveland currently 82 of 86 large cities in Cleveland currently 82 of 86 large cities in

economic growth (Inc.com report of Bureau of economic growth (Inc.com report of Bureau of Labor and Statistics Data, Labor and Statistics Data,

14.3% of Cleveland residents 25 and over hold 14.3% of Cleveland residents 25 and over hold a Bachelor’s Degree Completion (Rank 65 of a Bachelor’s Degree Completion (Rank 65 of 68)68)

73.3% of Cleveland residents 25 and over hold 73.3% of Cleveland residents 25 and over hold a high school diploma (Rank 58 of 68)a high school diploma (Rank 58 of 68)* Source: 2007 analysis of Bureau of Labor and Statistics data

retrieved June 2, 2007 from Inc.com. Web site: http://www.inc.com/bestcities/index.html

**Source: U.S. Census Bureau, American Community Survey 2003

Income Gains by Income Gains by Education LevelEducation Level

Lifetime difference in earnings between Lifetime difference in earnings between a high school dropout and high school a high school dropout and high school graduate: $260,000.graduate: $260,000.

Difference in state and federal income Difference in state and federal income tax contribution: $60,000.tax contribution: $60,000.

Difference in local income tax Difference in local income tax contribution contribution

(assuming 2.5%) : $6500. (assuming 2.5%) : $6500.

Rouse, C.E. (2005 October). The labor market consequences of an Rouse, C.E. (2005 October). The labor market consequences of an inadequate education. In H.M. Levin (Chair). inadequate education. In H.M. Levin (Chair). The social costs The social costs of inadequate education.of inadequate education. Symposium conducted at the Symposium conducted at the meeting of the Campaign for Educational Equity at the meeting of the Campaign for Educational Equity at the Teachers College, Columbia University.Teachers College, Columbia University.

Reduction in Public Reduction in Public Costs by Education Costs by Education LevelLevel

Lifetime difference in public costs Lifetime difference in public costs between a high school dropout between a high school dropout and high school graduate (or and high school graduate (or equivalent): $127,000.equivalent): $127,000.

Levin, H., Belfield, C., Muennig, P., & Rouse, C. Levin, H., Belfield, C., Muennig, P., & Rouse, C. (2007 January). The costs and benefits of an (2007 January). The costs and benefits of an excellent education for all of America’s children. excellent education for all of America’s children. Retrieved June 2, 2007, from Center for Benefit-Retrieved June 2, 2007, from Center for Benefit-Cost Studies of Education at Teachers College, Cost Studies of Education at Teachers College, Columbia University. Web site: Columbia University. Web site: http://www.cbcse.org/.http://www.cbcse.org/.

Financial Impact of Adult Financial Impact of Adult Education Program on Education Program on Anytown, USAAnytown, USA 2005-2006 GED Program Graduation2005-2006 GED Program Graduation

– 43 GED graduates 43 GED graduates $16,641,000 million in lifetime earned $16,641,000 million in lifetime earned

incomeincome $2,580,000 million in lifetime federal $2,580,000 million in lifetime federal

and state taxesand state taxes $279,500 in local taxes$279,500 in local taxes Total almost $20 million Total almost $20 million improvementimprovement

in the lives of students and the in the lives of students and the community in one yearcommunity in one year

Questions, Answers, & Questions, Answers, & DiscussionDiscussion

Thank YouThank You

Contact: Raymond Hart526 West Aurora Road, #129Sagamore Hills, OH 44067Phone: (330) 687-2485Fax: (216) 674-2318Email: rchart@kent.edu