Preparing for Future Changes in the Workforce: Emerging Trends

G. Stephen Taylor, Ph.D.

Mississippi State University

• SIGNED STATEMENTS!!!!• Thursday

– Team assignments– Debate order– First debate topic

“A Differentiated and Memorable Customer Experience”

• Customized products– Napster vs iTunes

• Negotiated prices– Not Y

• Flexible places– iPod– iPhone

• Targeted promotion– “hulu effect/Ad Tailor”

“A Differentiated and Memorable Employee Experience”

• Customized construct– Box vs. amoeba

• Negotiated compensation– More than dollars

• Flexible connection– “company man”

• Targeted communication– Info the way I want it

Most Critical Changes

• Diversity/Immigration• Globalization/Education• 4 generations

– aging population

Diversity and Immigration

Origins

Caribbean

Cent. Am

South Am.

Europe

AsiaOther

0%

10%

20%

30%

40%

Small but growing

Native-Born Total Foreign-Born

84%

16%

Educational Attainment

<HS High School Some College BA/BS

5.8%

29.7% 30.0%

34.5%

26.4%25.1%

16.4%

31.1%

Native Born Foreign Born

52%

Foreign-Born Shares

Total Pop. All workers Low-wage workers Lower-skilled workers

11%14%

19%

38%

12%

16%

21%

45%

2000 2005

Skill Levels

• 42% said “adequate”

• 25% moderate deficiencies

• 7% severe deficiencies

Note the differences…..

Project-mgt skills

Team work

Poor employability

Verbal communication

Written communica-tion

English language

0% 20% 40% 60% 80% 100%

6%

10%

15%

65%

72%

84%

Hispanic/Latino

• 15.1% of US population• 50% of total growth 2000-2007

GLOBALIZATION AND EDUKASHUN

As so it began……

• childish but accurate

The right thing? Could be…or not

• US debt (good or bad?)• it's how big????

Zimbabwe

GDP growth rates (2009)

PIIGS!

Not a garden variety

• Inventory recession• Balance sheet recession

– Liabilities > assets– Prof max debt minimization

• No borrowers

State CapitalismPost 2007

•State capitalism–a system in which the state dominates markets primarily for political gain

–autocratic states reap the benefits of capitalist enterprise while maintaining a vice-grip on political freedom

•“capitalism for the wealthy”

Fastest growing industries (2008-2018)

Semi-cond.

Science R&D

Med. Equip mfg

Fin. Invest.

A/V mfg

Data/info services

Software

Computer/peripheral mfg

5.9%

6.1%

6.3%

7.3%

8.4%

9.3%

10.5%17.0%

Knowledge workers

• What is a “job?”• Self-managed• Constantly innovate• Continuous learning• Quality counts• Asset, not cost

The International Context (top 30)

• 16th in reading skills

• 20th in science

• 26th in math

• 25th in problem solving

Undergraduate Degrees (top 30)

• 17.6% in science (19th)

• 6% in natural science (8th)

• 3.9% in math/computer science (12th)

• 6.4% in engineering (21st)

Undergraduate Degrees

1980 1990 2000 2002 2003 2004 2005 20060

10000

20000

30000

40000

50000

60000

70000

80000

IS Engineering Math Science

63%34%

2006

So What’s A Poor Boy to Do?

Higher-Skilled Immigrants

• H1-B– 3 yrs (extendable for 3 yrs)– 65,000 annually (+/- 2 months)– Can apply for “green card”

• Praise– Only way to offset shortage of native-borns

Higher-Skilled Immigants

• Criticisms– “corporate subsidy”

• Not a shortage of native-borns• Depresses wages• Eliminates native-born jobs (AIG)• “indentured servants”

No longer true…..

60 is the new 40………

In 2000, Fairly “Young”

Under 5% 5% to 12.4% 12.5% to 20% Above 20%

Source: U.S. Census BureauPercent of Population Age 60+ 2000

. . . Rapidly Aging by 2025

Source: U.S. Census Bureau

Under 5% 5% to 12.4% 12.5% to 20% Above 20%

Percent of Population Age 60+ 2025

Life Expectancy at Birth: 1000 - 2000

Source: Census Bureau, 2000

Age

1000 1200 1400 1600 1800 1900 2000

2530

35 3638

47

76.5

Dramatic Drop in Birth Rates

Source: Age Wave

Tota

l Fer

tility

Rat

e

US UK France Canada Japan Germany Italy0

1

2

3

4

3.3

2.8 2.9

3.6

2.0

2.5 2.5

2.0

1.7 1.7 1.61.4 1.3 1.2

1960 20002.1

By the numbers….

76

46

80

75

0

20

40

60

80

Mill

ions

Yers Xers Boomers Matures

Workforce challenges

• Limited in availability• Chronologically older• Lacking key skills• Global• Highly diverse• Sharing only health as a core value

Source: Testimony by Tamara J. Erickson to the Senate Committee on Health, Education, Labor and Pensions, May 2005

Why not you?

• Mark Zuckerberg• Dorm rooom (2004)• $4 billion

Why not you?

Foursquare• Dennis Crowley• $80 million• Foursquare

Why not you?

Groupon• Andrew Mason• $350 million

Why not you?

Alice + Oliva• Dorm room• Stacey Bendet• $50 million• 800 stores