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January 22, 2013
The U.S. can't
be complacent on job creation
By John Kasich
John Kasich, Governor of Ohio, on the steps his state has taken to
create jobs and fuel economic growth.
Countries in eastern Asia and Europe have, in recent decades, developed
highly effective training systems that help their citizens prepare for
success in a competitive, global economy. Key to this has been the
ability of policy-makers to listen to job creators and respond with
training programs that meet their needs.
The United States must keep up to remain competitive.
For years, the US held the top spot on the World Economic Forum’s
Global Competitiveness Index. This year, we ranked 6th; Switzerland
came out on top, followed by Singapore, Finland, Sweden, the
Netherlands and Germany. Our country’s creativity, plentiful natural
resources, and dominant research and development capacity continue to
be key advantages. However, a recommitment to high performance in
workforce development can further strengthen our position.
Ohio is helping lead the economic recovery in the US and has
consistently ranked among the top states for job creation. The reason
is that we have cut taxes, balanced our budget and are reforming
regulations to create a more jobs-friendly climate. Our next challenge
is to improve the way we train Ohioans in order to make sure that they
and their employers can more successfully compete.
After researching, looking at successful models in other countries and
laying the groundwork for transformation, we are now implementing
reforms that better align training programs with the hiring needs of
job creators. In the past two years, Ohio has focused on turning a
fragmented and duplicative workforce training system into one that’s
more responsive to the jobs that employers need to fill. This is being
done by:
Exposing youth to career options – In 2012, I signed legislation
embedding career options into school curricula starting as early as
kindergarten. Known as Career Connections, this effort helps expose
students to career options early enough to develop a lasting
appreciation for the practical value of what they learn and gain
motivation from it.
Incentivizing degree completion – Ohio’s higher education community has
embraced the need to increase graduation rates. This is being done
through a new formula for distributing state higher education funds
that emphasizes degree completion, not just student enrolment. As a
result, 50% of Ohio’s higher education funds will be distributed to
universities based on their success in helping students complete their
degrees; more graduates mean a better workforce.
Understanding employers’ needs – After beta-testing an online
forecasting system with more than 100 employers, Ohio will soon roll
out a new system where employers can communicate their upcoming
workforce needs to education policy-makers, who can then respond by
tailoring and emphasizing training programs accordingly.
Helping workers before they are unemployed – Worker training programs
usually focus on helping unemployed workers. In Ohio, the recently
launched Incumbent Workforce Training Voucher allows employed workers
and their employers get state-supported training to upgrade their
skills to stay competitive.
A special focus on veterans – Ohio recognizes veterans as a priority, a
group of workers that are disciplined, extensively trained and tested,
and often looking for work as they transition back to civilian life.
Reaching out to this population not only helps meet their employment
needs, but also brings a valuable and competitive workforce asset to
Ohio’s employers.
Ohio’s workforce transformation agenda is a bold one, and I look
forward to discussing it in more detail in a session on Advanced
Manufacturing at the World Economic Forum Annual Meeting 2013.
Author: John Kasich is Governor of Ohio, USA and is participating in
the World Economic Forum’s Annual Meeting 2013
Read the article at the World Economic Forum
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