While unemployment numbers and a sluggish economy dominate the headlines, there is an underlying factor that rarely finds its way into the discussion: education. Utah businesses have jobs they can’t fill simply because they cannot find the workers they need to fill them.

The Salt Lake Chamber hosted a panel discussion with three local business leaders and a national expert. Their stories show how under achievement in education has significant negative impact on the economy.

Thatcher Pharmaceutical lost out on a $32 million contract to produce a product for a Fortune 500 company because the client didn’t have the confidence Thatcher could fill the jobs it would have to in order to make the product.

“We rely on strong technical resources,” said Tom Thatcher, president of Thatcher Pharmaceuticals. “We lost a huge contract because we were looked at as education poor. It cost us revenue and a profit of $13 million. It’s a costly impact.”

Cheryl Oldham, vice president and executive director of the Institute for a Competitive Workforce at the U.S. Chamber of Commerce says education is the product, and the schools produce the product. Businesses need to see each other as allies in a business-education alliance. Prosperity 2020 shows Utahns know the most important investment in an economy is education.

“It’s time to put the kids first, because our economy is dependent on it,” said Oldham. “If we want to stay first-class, we must invest more in education and have high expectations.”

ATK Aerospace Structures has struggled to find the employees with the specialized skills they need. ATK plans to hire 800 people over the next 20 years. These workers need to be trained to work the composites and multi-million dollar equipment.

“When we get new employees, they often don’t have the basic math skills they need,” said Joy de Lisser,  vice president and general manager of ATK Aerospace Structures. “We have to do additional training to get them up to par.”

Salt Lake City based advertising firm Richter7 has recently had to fill three positions–approximately 10 percent of its workforce. One position, filled just this week, required searching outside of Utah. Using a professional recruiter cost Richter7 20 percent of the new hire’s first year salary, not to mention the relocation costs.

“It’s a big risk to bring in someone from out of state and whether we can meet their needs,” said Peggy Lander, a partner at Richter7. “University students come in all the time from Utah schools and they are woefully unprepared as seniors to meet our needs.”

Thatcher says it makes it much more difficult when you have to recruit outside the state. He says it affects a whole spectrum of people.

“It trickles down the line,” said Thatcher. “If businesses don’t want to come here, then you’re trying to ship product all over the country instead of staying here. We need to create an environment so people will relocate to Utah, not just do business in Utah.”

Each panelist was asked to point out one thing they would change to improve the quality of workers produced by the educational system.

“Schools need to make sure they are in tune with what our needs are now,” said Lander. “Students need to develop themselves and have a good core foundation from the school. We need to be ahead of the curve and too often we are five years behind the curve.”

De Lisser says students need to be more motivated to prepare for the workforce. “We need to get them passionate about what a career in aviation could be and how they could grow,” she said. “The passion and the understanding  is what they need.”

“Businesses need to get much more involved with educators,” said Thatcher.  “We have got to have an avenue for graduates so they have someplace to go, otherwise they will go somewhere else. They can’t just get their degree here and then go somewhere else to work. We need a business climate for the quality workforce to go to.”

Oldham says the high level of business engagement in education demonstrated in the Prosperity 2020 movement is a reason to be optimistic.

“All of you are so engaged on this and you have a powerful voice,” she said. “Your engagement is key on this. Remain passionate about this and you will get there.”

Editor’s note: This post is a letter submitted from a supporter of the Prosperity 2020 movement. Additional submissions are welcome via the contact page.

My name is Jacob Hansen (pictured, above) and I am very interested in the efforts of Prosperity 2020. I am a software engineer, working in the field for almost seven years now. I am a huge proponent of education. I not only graduated with a B.S. degree in computer science with highest honors, but I also landed a full-time job with a Fortune 500 company during my third year of college. Also many of my family members are educators including my wife.

I attribute most of my passion for education to my father. Throughout most of my childhood my father had no college education and worked a dead end job. With five kids, my parents learned how to be frugal and careful with all their financial decisions. Eventually the day came when my father was laid off. For many hard years I watched my father go to school full-time and work full-time. Today he has a good career and a master’s degree. Watching my dad work hard inspired me to do everything I can to stay ahead in this world. My dad is a living example on how important education is to anyone’s future.

For many years now I’ve been studying globalization. For my own survival, I feel it prudent to understand the current trends and effects of globalization, especially concerning my career field. I read a lot of papers and attend as many lectures as I can. I even had the opportunity to have a brief conversation with Ron Somers, the current President of the U.S.-India Business Council about pros and cons of off-shoring.

I have two big concerns about our economy. The first concern is that we as a nation don’t value a good education. My second worry is that people don’t concern themselves with globalization. I think a lot of people sense the world is changing, many are scared and some even angry about the changes, yet they really don’t understand what’s happening and why. More importantly, people aren’t learning how to stay ahead. People are not making informed career decisions.

A couple of years ago I saw an alarming trend. At the beginning of the recession, there was an explosive increase in off-shoring of IT/Engineering related jobs. This spike was widely reported on the news and a significant number of college students nationwide started to drop out of their math, science and engineering studies. There was some consensus among students that there was no longer U.S. work in core STEM fields.

During this time period, I put together a presentation and went back to my old college and talked with a class of younger computer science students. My purpose was to squash any misconceptions they may be having regarding the job outlook of computer engineers. I wanted them to know that they’ve made a good career choice. I also shared some advice of how to stay ahead in the work place. Fortunately, I was preaching to the choir. These students were already dead-set on becoming engineers.

Today, there is a huge demand for Computer Science majors. In fact, the amount work that needs to get done is far outpacing the amount of educated professionals currently in the field. IT companies are doing everything they can to poach skilled personnel from one another. I personally have recruiters trying to contact me almost on a weekly basis and have been all year.

I feel strongly about education and its importance to our society. Please let me know if you could use my help with anything.

Lew Cramer, president and CEO of the World Trade Center Utah, sat down with the Salt Lake Chamber to discuss the importance of free trade. Watch what he says about the role of education in our ability to compete in a global economy.

Investment in higher education has an impact that extends beyond the individual, according to a survey commissioned by Prosperity 2020 and conducted by Dan Jones & Associates.

For every member of a household that earns a postsecondary degree or certificate, the likelihood increases that siblings and children will do so, as well.

The Prosperity 2020 movement aims to have two-thirds of all Utah adults holding a college degree or certificate by the end of the decade. A well-educated workforce will propel Utah’s economy and create enduring prosperity.

A child raised in a family in which neither parent has a degree or certificate has less than a 30 percent chance of obtaining a higher level of education than his parents. Compare that to a child raised in a home in which one parent has a degree or certificate and that rate jumps to over 40 percent.

The positive impact of educational achievement within the family is not limited to a parent-child relationship. Siblings who obtain postsecondary education play a significant role in elevating achievement levels among their siblings, as well.  In fact, the survey shows children raised in a home in which neither parent has a degree or certificate but a sibling does, have better than a 55 percent chance of earning a degree or certificate themselves.

The rates continue to improve as you combine parental and sibling achievement. Raised in a household with one parent and one sibling holding a postsecondary degree or certificate, a child has nearly a 65 percent chance of completing a degree or certificate.

The highest probability that a child will earn a degree or certificate is found when both parents and a sibling have done so. A child raised in this environment will have over a 75 percent chance of earning a postsecondary degree or certificate.

The benefits of higher education correspond with higher income levels. The more education you have, the more money you can earn. It also appears success follows success. An individual who earns a degree or certificate begins or continues the ripple effect that will likely impact their family for generations.

So the goal is to increase the number of Utah adults who hold a postsecondary degree or certificate.

Interestingly, the survey also looked into reasons for not completing a post-secondary degree or certificate. By a wide margin, marriage and children were the top reason, followed by expense and balancing work with school.

Only one percent said they didn’t earn a degree or certificate because their spouse or partner had one and only two percent said they could earn more money without a degree or certificate.

Achieving the Prosperity 2020 goal of two-thirds of Utah adults with a degree or certificate is within our reach. Helping those who left college just a few credits short of an associate’s or bachelor’s degree—especially among those who cited marriage and children as a reason to leave school or other training programs—could yield significant results. Not everyone is starting from scratch.

The recent economic downturn and slower than anticipated recovery have sent many back to campus and into training programs looking to enhance their resumes in a difficult job market. Helping those who cited the expense of education find loans, grants and other sources of funding would also move us significantly toward our goal.

A focus on increasing the graduation and achievement rates will certainly be a boost for the Utah economy.

SALT LAKE CITY- (August 17, 2011) Utahns who earn a postsecondary degree or certificate earn more money, live happier lives and are a bigger benefit to their community, according to a poll conducted by Dan Jones & Associates and released today.

“The fact that those who obtain a level of education beyond high school make more money won’t surprise many,” said Mark Bouchard, senior managing director of CB Richard Ellis and chairman of Prosperity 2020. “What we see from the survey is that the benefits go well beyond the paycheck.”

“Over the course of their work life, students who receive a baccalaureate degree earn about $650,000 more than high school graduates—a significant increase over those who end their education right after high school,” said Commissioner of Higher Education Bill Sederburg. “The benefits of a college degree extend beyond monetary value too, as individuals with college degrees experience increased career opportunities, better health care benefits and overall a deeper quality of life. Degree holders are also more likely to have increased civic involvement and often donate more to local charities and volunteer their time in the community.”

Income
Prosperity 2020 commissioned the survey of 1,200 Utahns, and results were presented to the Higher Education Subcommittee of the Utah State Legislature today. The results show the mean individual income level (total individual compensation) is 75 percent higher among those who hold a postsecondary degree or certification than those without. They are also more than two-and-a-half times more likely to work in salaried positions rather than hourly jobs.

“Utah is an attractive place for technology companies which are creating thousands of high-paying jobs but experiencing shortages in a qualified workforce to fill those jobs,” said Richard R. Nelson, founder and CEO of the Utah Technology Council. “We need to increase the number of students entering STEM education (Science, Technology, Engineering and Math) in order to meet the needs and attract new businesses.”

Nationwide, Americans with at least a bachelor’s degree have weathered the economic storm over the past few years far better than those who have not earned a four-year degree. The Bureau of Labor Statistics reports that, in July 2011, the unemployment rate for those with at least a bachelor’s degree was only 4.3 percent, compared to 15 percent for those who have not finished high school, 9.3 percent for those who have only a high school diploma but no secondary education.

Then national rate is reflected in the Beehive State. The survey shows postsecondary education has an impact on unemployment, as well. Nearly one quarter of those without a postsecondary degree or certificate have experienced more than two years of total post-high school unemployment, compared to just nine percent of those with a degree or certificate.

“As the marketplace becomes more competitive, employers are becoming increasingly more selective in their hiring practices,” said Andrea Moss, president and CEO of American Express Centurion Bank. “Businesses will continue to hire the best qualified employees and education is a crucial distinguishing factor. Never in Utah’s history has the need for an education been more important.  This is a trend that is not going to reverse.”

Personal Measures
Across the board those with a postsecondary degree or certificate believe that the education they received has more of a positive contribution in a number of key factors related to their lives and families than those without a degree or certificate.

Postsecondary degree or certificate holders are more likely to report personal happiness, to have what they consider to be great relationships, to characterize themselves as having good families, and to be in good health, than those without the same level of education.

“Money doesn’t buy happiness but there is a clear connection between the level of education an individual achieves and the level of happiness he or she has in life,” said Gordy Haycock, managing partner for the Salt Lake City office of Grant Thornton. “Ultimately, prosperity is a measurement of quality of life and that’s why the Prosperity 2020 movement is so crucial to our community.”

The survey data also demonstrate the ripple effect of educational achievement within a family unit. A child with two parents who did not earn a postsecondary degree or certificate has a 27.8 percent chance of earning either a degree or certificate. If one parent has earned a degree or certificate, that number rises to 41.8 percent and to 55.2 percent—essentially double—if they have a sibling but not a parent with a degree or certificate. Students from families with both parents and at least one sibling holding a degree or certificate achieve the same level of education at nearly an 80 percent rate.

Community Measures
Rates of household utilization of government assistance programs are much higher among individuals without a degree or certificate.  Specifically, rates of participation in Medicaid and food assistance programs are higher among those who did not complete a degree or certificate.

Individuals without a degree or certificate are more than twice as likely to have utilized Medicaid, WIC, and CHIP in the last five years, and over three times as likely to have utilized food stamps.

“Investment in higher education pays dividends for the entire community,” said Ron Jibson, president and CEO, Questar Corporation. “Increasing the number of Utahns with postsecondary degrees or certificates will reduce the demand on state programs and create a more productive society.”

The survey also indicates Postsecondary degree or certificate holders voted in the most recent state election at a rate 50 percent higher than those without a degree or certificate.