Survey: Young People Entering Workforce Lack Skill

New York, NY, October 3, 2006--As the baby boom generation slowly exits the U.S. workplace, a new survey of leaders from a consortium of business research organizations finds the incoming generation sorely lacking in much needed workplace skills-both basic academic and more advanced "applied" skills, according to a report released today. The report is based on an detailed survey of 431 human resource officials that was conducted in April and May 2006 by The Conference Board, Corporate Voices for Working Families, the Partnership for 21st Century Skills, and the Society for Human Resource Management. Its objective was to examine employers' views on the readiness of new entrants to the U.S. workforce-recently hired graduates from high schools, two-year colleges or technical schools, and four-year colleges. "The future workforce is here, and it is ill-prepared," concludes the report. The findings reflect employers' growing frustrations over the preparedness of new entrants to the workforce. Employers expect young people to arrive with a core set of basic knowledge and the ability to apply their skills in the workplace - and the reality is not matching the expectation. "It is clear from the report that greater communication and collaboration between the business sector and educators is critical to ensure that young people are prepared to enter the workplace of the 21st century," says Richard Cavanagh, President and CEO of The Conference Board. "Less than intense preparation in critical skills can lead to unsuccessful futures for America's youth, as well as a less competitive U.S. workforce. This ultimately makes the U.S. economy more vulnerable in the global marketplace." Business leaders report that while the three "R's" are still fundamental to every employee's ability to do the job, applied skills such as teamwork, critical thinking, and communication are essential for success at work. In fact, at all educational levels, these applied skills trump basic knowledge skills such as reading and mathematics in importance in the view of employers. In order to succeed in the workplace of the 21st Century, high school and college graduates need to master basic academic skills as well as a complement of applied skills. The survey also found though that too many new entrants to the workforce are not adequately prepared in these important skills. Nearly three-quarters of survey participants (70 percent) cite deficiencies among incoming high school graduates in "applied" skills, such as professionalism and work ethic, defined as "demonstrating personal accountability, effective work habits, e.g. punctuality, working productively with others, time and workload management." More than 40 percent of surveyed employers say incoming high school graduates hired are deficiently prepared for the entry-level jobs they fill. The report finds that recent high school graduates lack the basic skills in reading comprehension, writing and math, which many respondents say were needed for successful job performance. Furthermore, when asked how their hiring practices will change: - 28 percent of employers project that their companies will reduce hiring of new entrants with only a high school diploma over the next five years. - 49.5 percent said the percentages of two-year college graduates they hire would increase. - almost 60 percent said their hires of four-year college graduates would increase. - 42 percent said their hires of post-graduates would increase over the next five years. "This study should serve as an alert to educators, policy makers and those concerned with U.S. economic competitiveness that we may be facing a skills shortage," said Susan R. Meisinger, President and CEO of the Society for Human Resource Management. "In a knowledge based economy a talented workforce with communication and critical thinking skills is necessary for organizations and the U.S. to be successful."