What do an auto parts manufacturer in Jasper, a computer software company in Fort Wayne, and a foundry in South Bend have in common? They’re ready to hire.
Unfortunately, today thousands of jobs are going unfilled because of the difficulty finding workers with the right skill sets. In fact, a report by Deloitte Consulting and the Manufacturing Institute estimates that as many as 600,000 jobs are open nationwide because employers cannot find workers with the skills they need to fill these jobs. With unemployment still too high, we simply can’t afford to allow these jobs to go unfilled.
During my time as a member of Congress and in my first few months as U.S. Senator, I have made working to close this “skills gap” one of my top priorities. There are things we can do to address this issue from connecting businesses and community colleges to fixing existing federal workforce training programs. We have a remarkably talented workforce, but we must do more to equip our workers with the skills they need to fill not only the jobs of the future, but the jobs available today.
I am proud to be an original sponsor of the AMERICA Works Act with my colleagues Sens. Kay Hagan (NC) and Dean Heller (NV). This bipartisan bill would modify existing federal training programs so that they place a priority on programs and certifications that are recognized and demanded by industry. This improvement will be a benefit for both workers and employers, as workers will know that the time they spend training will be more likely to lead to employment in a well-paying job, and employers will be more likely to hire folks that they know have the training they need to be productive on day one.
AMERICA Works would address a major issue faced by our workers and manufacturing industry without increasing federal spending. Instead, it would make federal spending more efficient by making reasonable changes to existing federal programs. Congress must focus on policies that can help create jobs and spur economic growth, while also limiting the long-term debt that threatens our economic health. The AMERICA Works Act meets these criteria.
In a time of constant partisan bickering, I hope that my colleagues can agree to rise above the political fights and be a part of a bipartisan consensus to pass this common sense legislation and help put more Hoosiers back to work.
Microsoft knows about the country’s skills shortage because we are experiencing it first-hand. Today Microsoft has 6,000 job openings with 3,400 in core technology areas in the U.S. We cannot continue to keep these high paying jobs in the U.S. if we can’t fill them. America’s computer science talent crisis is just one aspect of the STEM shortage, yet it is having a significant impact on companies big and small across industries.
Looking at computer science through a national lens, we know that the American economy is creating approximately 120,000 new computer-related jobs annually that require a bachelor’s degree, but we are currently producing only about 51,000 graduates each year with these degrees in this field. But the problem starts even earlier.
Of the 42,000 U.S. high schools – just 2,100 were even certified to teach the Advanced Placement computer science course in 2011. Further only nine states — GA, MO, NY, NC, OK, OR, RI, TX, and VA — count computer science toward “core” graduation requirements like math or science. The shortage in computer science impacts all industries. Consider the distribution of people working in computing occupations by sector: 36 percent are in professional and business services, 12 percent are in financial services, 12 percent are in manufacturing, 9 percent are in information services, and 7 percent are in government and public education services.
This is why Microsoft has made addressing the STEM crisis our top legislative priority and are strongly encouraging Congress to take action in 2013. Specifically, Microsoft has proposed the creation of a new STEM fund that schools across the U.S. can tap into to enhance education and better prepare the next generation of the American workforce. It’s important to note that this new STEM fund would be fully funded by U.S. industry through new fees paid by companies for high skilled visas and green cards. This concept is backed by a wide range of stakeholders in industry and the education community who have helped organize a new coalition called InSPIRE STEM USA pushing for enactment of this concept this year.
The STEM fund concept is included in the recently introduced Immigration Innovation Act (known as the “I-Squared Act”) put forward by Senators Klobuchar, Coons, Hatch and Rubio which Microsoft strongly supports. The bill contains crucial reforms in high-skilled immigration including mapping the visa and green card system to current market needs in the technology industry given the skills shortage in exchange for modest additional fees paid for entirely by industry. The fees would be deposited in a new “Promoting American Ingenuity Account” to strengthen STEM education including computer science. This new “STEM Fund” – which would flow to the states – works to expand the number of well-trained and effective STEM teachers while increasing the number of graduates in STEM related programs including computer science.
By coupling two policy areas together – immigration reform and increasing support for STEM education – we believe this kind of legislation would fill jobs now and create a pipeline to better prepare our students for the jobs of the future.
Finally, Microsoft supports industry certifications that are part of this much needed STEM step ladder and Microsoft applauds Senator Donnelly’s legislative efforts in this area. As employers we view these certifications as critically important job credentials which guarantee proficiency in a defined set of skills, while providing workers with access to the industry recognized credentials they need to land good paying IT jobs with a bright future. In fact over the last decade, some 700,000 students and workers gained access to these credentials from our community college system. A decade ago that figure stood at 35,000. We know in particular that mid-career workers in transition often do not have the ability to spend 2-4 years studying for a degree in a new field, but they are willing and able to spend 3-6 months gaining an industry recognized credential at a community college that will lead to family wage employment in their community. Microsoft’s own IT Academy and ITA program helps students gain these industry-recognized credentials. Currently 11 states have set up broad adoptions of ITA with thousands of students achieving a certification for the first time. In some states, teachers and parents are also gaining access to these certifications.
Investing in increasing industry certifications and STEM education are smart bets as we work to ensure ALL of our nation’s students have the knowledge, skills, and experiences they need to achieve in this increasingly competitive, global economy.
Manufacturing competitiveness and job growth is, in large part, determined by the ability to innovate. Unfortunately, for too many manufacturers, their innovation is threatened by an inability to find workers with the training and skill sets to meet the needs of today’s jobs, let alone those of tomorrow. This skills gap must be addressed.
We don’t need another expensive government program to fix this skills gap and drive long-term innovation. Rather, we can retool our existing federal workforce training programs to make them work for manufacturers and job seekers. Today, even with unemployment hovering around 8 percent, 600,000 manufacturing jobs remain open because employers can’t find people with the skills needed for the positions.
The solution, called the NAM-Endorsed Manufacturing Skills Certification System, is a series of nationally portable, industry-recognized credentials based specifically on employer-identified skills. These credentials, and the training required to obtain them, certify that an individual possesses the basic skills necessary for a manufacturing career and ensure that the skills are useful nationwide and across multiple manufacturing sectors. This realignment would provide real, tangible benefits for today’s unemployed and tomorrow’s manufacturers.
This concept has been turned into federal legislation—the America Works Act. This legislation creates a prioritization for nationally portable, industry-recognized certifications in WIA, TAA and Perkins. For employers, an emphasis on a nationally portable, industry-recognized credentialing system provides a level of quality in potential hires that does not exist today. For employees, it ensures they are obtaining the skills in demand in the workplace today. For government, it ensures that federal funds allocated to worker training programs are used more efficiently and effectively.
The skills gap is a real threat to America’s mantle of leadership in the global economy. The NAM will continue its work with policymakers, employers and educational institutions to ensure that manufacturers have the skilled workers they need to innovate and lead in the 21st century.