Search Results

Projections of labor market demand show that two-thirds of all jobs will require some postsecondary education by 2018; however, given today’s disappointing levels of higher education productivity, labor economists estimate that the United States will fall 7 million degrees short. While American employers increasingly struggle to find the talent they need to grow our economy, our youngest workers rank a disappointing 15th out of 34 industrialized countries in the percentage with a college diploma. Tuition rates have grown at three times the rate of inflation in recent decades, prompting students, employers, and policymakers alike to question how efficiently and effectively our institutions of higher education are using the precious resources made available to them. Students who enrolled in public colleges three years ago now face tuition as much as 50 per cent to 80 per cent higher in some states - reflecting a model of postsecondary education that is expensive, inefficient, and slow to change. Seventy per cent of our high school graduates now move on to some form of postsecondary education, but fewer than half of those who enroll finish a degree or certificate within six years. There is a growing skepticism among employers about whether those lucky enough to graduate have acquired the skills and knowledge necessary for success in the 21st century economy. Prospective students, policymakers, and taxpayers deserve comprehensive, quality data to help drive crucial decision making. However, most existing data systems are flawed and do not provide sufficient information. This report identifies the best and worst performing states - the leaders and laggards - in public postsecondary education. It focuses on the performance of the institutions over which state governments have the most influence: public colleges and universities. In an effort to systematically measure the most important factors being watched by policymakers, business leaders, and concerned citizens, state performance and policy is graded in the following six areas: student access and success; efficiency and cost-effectiveness; meeting labor market demand; transparency and accountability; policy environment; and innovation.

Edited excerpt from the Institute for a Competitive Workforce website. Show less

The United States needs to create 20 million jobs over the next decade - restoring the seven million jobs lost to the current recession, and creating the 13 million new jobs that our growing nation will need in the next 10 years, according to [this] report. The authors conclude that the states will play a pivotal role in achieving this goal by creating the conditions for competition, innovation and productivity through investments in workforce development and training, science and technology, and infrastructure. Enterprise-friendly policies at the state level can facilitate local job growth by championing entrepreneurship and mobilizing effective partnerships for improving the conditions for business and job growth. States, working together with businesses, can bolster exports in global markets.

Major findings: states are much more active than the federal government on the job creation and economic development front - while the policies vary by state there is renewed focus nationwide on creating more favorable conditions for business growth; state priorities vary considerably - the recent recession, however, leaves a number of important lessons and gives all states a chance to reassess, reboot and adopt proven strategies for the future; and high tax rates do not lead to either healthy economies or budgets - on the contrary, many states with the highest tax rates and most onerous regulatory regimes have experienced the worst budget crises.

Also: many states have implemented initiatives for streamlining red tape to help businesses sort through the many layers of government regulation and have incentivized private sector investors primarily with tax credits; there is widespread support for doubling exports but there are also states that have made significant headway using strategies for foreign direct investment (FDI); and regional cultural variety could account for differences in entrepreneurial strength - how might we translate this culture of entrepreneurship to other regions?

Abstract published on the National Centre for Policy Analysis website. Show less