For Release July 16

The Skills For Tomorrow’s World: It’s All About Change

Pierre, SD--One of the most important changes to occur in this century is what some call the information revolution—and for good reason. According to Dallas consulting firm Pritchett & Associates, a digital wristwatch of today contains more computing power than existed in the entire world in 1961. Since 1983, U.S. companies have added 25 million computers to the workplace. And since 1987, there were 26 million new electronic mail addresses created and the number of secretaries declined over a half million.

These changes and others are part of the de-industrialization of the American economy. The U.S. economy is more reliant on technology and is the least manufacturing oriented in America’s history. In total, jobs requiring higher education account for a larger share of the jobs.

The U.S. Department of Labor reports that in the time between 1983 and 1993, the proportion of total jobs requiring higher education grew nearly 3%. In the same time, the proportion of jobs requiring only work experience or job training declined nearly 3%.

These changes, along with an increased employer stress on lifetime learning, make higher education more important than ever for success. Knowledge and information are becoming the most important "product" in our economy. This, says Peter Drucker, the renowned management guru, will require different kinds of workers than in the past, ones able to adapt quickly and learn new skills.

Consider the following table from the South Dakota Department of Labor which shows average wages by educational attainment and work experience levels.

South Dakota Wages By Education and Experience - 1995

SOURCE: South Dakota Department of Labor

Also between 1983 and 1993, the U.S. had 20% job growth. In that period, jobs in the service fields grew over 25% while jobs in manufacturing grew only 6.2% according to the U.S. Department of Labor. Employment in manufacturing is being replaced by employment in the service industries, such as health care, financial services, administrative and managerial, computer science, and government.

Higher education is expected to be required for the fastest growing fields. Among the nation’s fastest growing occupations are teachers and systems analysts, physical and occupational therapists, and registered nurses.

The graph below shows projections from the U.S. Department of Labor for the percent job growth by educational attainment. Jobs requiring a bachelor’s degree are expected to grow by 27% by the year 2005.

Projected Percent Growth in Employment by Level of Educational Attainment: 1994-2005

SOURCE: US Department of Labor

Our success is the reason for these changes according to a recent article in The Economist. Increased productivity has decreased the demand for manufacturing jobs accompanied by the increased output required of service industries who rely on "people power".

People power refers not just to knowledge, but also to analytical skills, communication skills, and teamwork skills. Not by accident, these are the very skills that employers say are most important for new employees.

The graph below shows the results of a recent survey conducted by the National Association of Colleges and Employers (NACE) of the skills employers look for in job candidates. Communication skills, interpersonal skills, and analytical skills are prized most by employers.

Employers’ Rankings of Job Candidate Skills
(5-Point Scale: 5=very important; 1=not important)

SOURCE: National Association of Colleges and Employers

The NACE survey also looked at the demand for liberal arts majors (as well as many other fields) and noted that the need for communication and analytical skills attract employers to students with liberal arts educational experiences.

In South Dakota, employers too are identifying verbal and written communication skills as critical needs for new hires. Career placement offices at South Dakota’s public universities continually receive feedback from company recruiters who want their prospective employees to be effective communicators of ideas and able to work well with others of diverse backgrounds.

Regent Pat Lebrun, chair of the Regental Committee of Academic and Student Affairs said, "It is important for junior and senior high school students to make good academic decisions about their future". She continued to explain that the Board of Regents encourages students to take a college prep curriculum and take advantage of special opportunities like Advanced Placement (AP) courses. Some high schools may also offer college courses for dual credit which can save time and money later, many districts pay for the costs as well. Students can learn about these and other opportunities from their teachers and guidance counselors.

Lebrun said, "Young people should make the changes ahead, and throughout their lives, opportunities for success. It is imperative that students have excellent communication skills, critical thinking skills, and teamwork skills. These skills can be developed from a general education in science, math, and the humanities."

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