By Kathy Schmidlkofer, March guest blogger
My last blog post challenged you to be an ambassador for our higher education system. But we need to do more. Our world-class workforce is one of our best regional assets, but threats to this status are certainly looming. Our region is currently experiencing a skills mismatch between our talent and the needs of our employers. This national trend is expected to continue. The big question is how do we turn this situation around so we have the right workforce prepared for the jobs of the future? I work for an organization trying to drive jobs and capital investment to our region so my sincere hope is that we can maintain the competitive advantage our workforce gives us.
The challenge of the future is two-fold in our region. We have a significant disparity in educational attainment between whites and our ethnic minority communities. In addition, while post-secondary institutions in the state are producing many graduates, they are not meeting private-sector demand in high-growth STEM fields (science, technology, engineering and math). Aligning degrees with needed skills will be critical to promoting individual success and economic growth. Site selectors tell us that the number one criterion for companies looking to place jobs is the availability, talent, and skill level of the workforce so, to maintain the economic vitality of this region, we cannot afford to ignore this workforce shortage.
Key demographic trends are disturbing given the need for a more educated workforce. The recent Compass report by the Wilder Foundation said the state’s population is getting older, more diverse, has a widening income gap, and educational disparities that start early and continue.
While more than four of five white, non-Hispanic high school students in Minnesota graduate on time, just over half of students of color do, according to the report. However, in an encouraging sign, the graduation rate for students of color has risen more than 10 percentage points since 2003.
Education levels will have a direct impact on the economic health of our region’s residents. Unemployment rates go down as educational attainment rises. As the demand for highly skilled workers has increased so has the wage premium of higher education. In 1975, bachelor’s degree holders earned 57% more than high school graduates. In 2007, they earned 83% more.
Employers need to play a key role in communicating their future needs to the higher education establishment. This is especially true of fields where they expect growth as well as the need for broader skill sets. Jobs today are demanding a more flexible skillset: Employers report that communication, reading comprehension, critical thinking, and ability to learn are key skills they seek in employees. As workforce needs change, perhaps employers also will be challenged to consider filtering students differently. Rather than filtering by the prestige of a graduate’s academic institution and specific degree, employers may need to review how they assess a candidate’s specific skills such as the ability to communicate, problem solving, leadership, and critical reasoning skills.
Educators already are aware of the challenges ahead and are working toward solutions. At GREATER MSP, our Partnership Advisory Council has made turning around the workforce shortage a priority and its members are working with MnSCU and other education organizations and businesses throughout the region to address and solve the mismatch.
Knowing that this workforce shortage could get worse without substantive action, I turn the question to you: What else should be done?

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