70 E. Lake Street Suite 400 Chicago, IL 60601 312.962.4850 877.207.5280 Brief Making Sangamon County Competitive: Investing in Early Learning to Help Close the Skills Gap In the next decade, the highest-skilled Illinois jobs are expected to grow at more than four times the rate of the lowest-skilled jobs.1 In Sangamon County, over 80 percent of high-growth, high-wage jobs of the future will require education after high school. We must certainly train and re-train our current workforce. However, if we want a long-term solution to permanently reverse the anticipated skills gaps, Illinois must expand investments in high-quality early learning. The Skills Gap Today: Sangamon County: Lacking 6,000 highly-‐ skilled workers In Sangamon County, there is a deficit of high-skilled workers to fill the current jobs. A labor supply and demand analysis conducted by Chmura Economics & Analytics finds that in Sangamon County there is a deficit of 6,075 high-skilled workers.2 There Is a Deficit of 6,000 Highly-­Skilled Workers in Sangamon County 43,170 6,000 workers have less education than employers want. 37,224 The Skills Gap Tomorrow: 10,000 of Sangamon County's High-‐Growth, High-‐Wage Jobs Will Require College Education By 2022, most high-growth, high-wage jobs in Sangamon County will require a two-year degree or higher, 84 percent or 10,000 jobs in the county (see chart, page 2).3 But today, six in 10 Sangamon County residents don’t have the education level necessary to compete for these jobs.4 Labor Demand for High-­Skilled Workers Labor Supply of High-­Skilled Workers Source: Chmura Economic and Analytics, 2012. Quality Early Learning Is a Solution Illinois and Sangamon County need an infrastructure that will better ensure a future workforce with the skills our businesses will need. Extensive research confirms that high-quality early learning can lay AMERICA’S EDGE is supported by tax-deductible contributions from foundations, individuals and corporations. AMERICA’S EDGE accepts no funds from federal, state or local governments. 2 In Illinois, 73 percent of high-­growth and high-­wage jobs will require a two year degree or higher. 100% 11% 4% In Sangamon County, 84 percent will. 14% Doctoral/Professional 4% Master’s Degree Bachelor’s Degree 24% 43% Associate’s Degree Postsecondary Award (No Degree) Some College 14% 1% 2% 22% 2% Note: Due to rounding, may not add up to precisely 100 percent. High School Diploma 41% 14% Less than High School 2% 1% Source: Chmura Economic and Analytics, 2012. Based on 2012-­2022 growth projections, BLS data. the foundation children need for school success and to enter the workforce with the skills employers require. Research studies demonstrate that children who participate in high-quality early learning can do better on a range of outcomes: x Better preparation to succeed in elementary school – for example, children who attended Tennessee’s pre-kindergarten program had overall gains in literacy that were 50 percent greater than for children who did not attend.5 x Less special education – children who attended the Chicago Child-Parent Centers program were 40 percent less likely to need special education;6 x Lower rates of retention in school – children participating in the Abecedarian early education program in North Carolina were 43 percent less likely to be held back in school;7 x Higher rates of high school graduation – children attending the High/Scope Perry Preschool Program in Michigan were 44 percent more likely to graduate from high school;8 x Higher rates of college graduation – by age 30, Abecedarian project participants were four times more likely to have earned a 4-year college degree than those not in the program.9 x Less crime – children not offered the Perry program were five times more likely to become chronic offenders by age 27;10 and x Higher rates of employment – children in the High/Scope Perry Preschool Program were 22 percent more likely to be employed at age 40.11 Studies of high-quality early education programs for at-risk children have shown that these programs can save communities much more than they cost. For example, the Chicago Child-Parent Centers 3 program returned nearly $11 in benefits for every dollar invested.12 These long-term benefits are realized when the children who receive high-quality early learning grow up and become better educated and more productive workers, with far less remedial education or criminal costs to society. Very few other public investments can surpass that rate of return. High-­Quality Early Learning Promotes College Success Abecedarian Project participants were four times more likely to have earned a college degree 23% Conclusion Illinois is falling behind when it comes to preparing its future workforce to compete successfully in a global economy. Quality early care and education is the foundation upon which success in school and later in the workforce is built. Policy-makers must support high-quality preschool to support Illinois’ future. Endnotes 6% Attended Abecedarian DID NOT Attend Abecedarian Source: Campbell et al., 2012 1 Chmura Economics and Analytics. (2012). Education and occupational analysis for America’s Edge: Chicago MSA & select counties in Illinois. Custom data analysis. Richmond, VA and Cleveland, OH: Author. 2 There is a deficit of skilled workers (defined as those with a Bachelor’s degree or higher) in the county to fill highly skilled jobs. This means that an estimated 6,075 workers in Sangamon County have less education (such as an Associate’s degree) when the employer would likely prefer (based on national occupational trends) to have an employee with a four-year degree. An example would be an accounting firm which would prefer to hire someone with a four-year degree instead has hired a junior accountant with a two-year degree. Based on U.S. Census Data and U.S. Bureau of Labor Statistics data, 2012 first quarter with preliminary estimates by Chmura updated to 2012 third quarter. Chmura Economics and Analytic. (2012). Education and occupational analysis for America’s Edge: Illinois & select regions. Custom data analysis. Richmond, VA and Cleveland, OH: Author. 3 Chmura Economics and Analytics. (2012). Education and occupational analysis for America’s Edge: Illinois & select regions. Custom data analysis. Richmond, VA and Cleveland, OH: Author. 4 Analysis of U.S. Census Bureau American Community Survey 2006-2010 data. Chmura Economics and Analytics. (2012). Education and occupational analysis for America’s Edge: Illinois & select regions. Custom data analysis. Richmond, VA and Cleveland, OH: Author.5 Chmura Economics & Analytics, 2012, based on ACS 2006-2010 data 5 Lipsey, M.W., Farran, D.C., Bilbrey, C., Hofer, K.G., & Dong, N. (April 2011). Initial results of the evaluation of the Tennessee Voluntary Pre-Kindergarten Program. Nashville, TN: Peabody Research Institute, Vanderbilt University and Tennessee Department of Education. 6 Reynolds, A. J., Temple, J. A., Robertson, D. L., & Mann, E. A. (2001). Long-term effects of an early childhood intervention on educational achievement and juvenile arrest. Journal of the American Medical Association, 285(12), 2339-2380. 7 Barnett, W.S., & Masse, L.N. (2007). Comparative benefit-cost analysis of the Abecedarian program and its policy implications. Economics of Education Review, 26, 113 – 125 8 Schweinhart, L.J., Montie, J., Xiang, Z.,Barnett, W.S., Belfield, C.R., & Nores, M. (2005). Lifetime effects: The High Scope/Perry Preschool Study through age 40. Ypsilanti, MI: High/Scope Press. 9 Campbell, F.A., Pungello, E. P., Burchinal, M., Kainz, K., Pan, Y., Wasik, B., Barbarin, O. A., Sparling, J. J. & Ramey, C. T. (2012, January 16). Adult outcomes as a function of an early childhood educational program: An Abecedarian Project follow-up. Developmental Psychology. Advance online publication. 10 Schweinhart, L. J., Barnes, H. V., & Weikart, D. P. (1993). Significant benefits: The High/Scope Perry Pre-kindergarten study through age 27. Ypsilanti, MI: High/Scope Press 11 Schweinhart, L.J., Montie, J., Xiang, Z., Barnett, W.S., Belfield, C.R., & Nores, M. (2005). Lifetime effects: The High Scope/Perry Preschool Study through age 40. Ypsilanti, MI: High/Scope Press.; Schweinhart, L. J., Barnes, H. V., & Weikart, D. P. (1993). Significant benefits: The High/Scope Perry Pre-kindergarten study through age 27. Ypsilanti, MI: High/Scope Press 12 Reynolds, A.J., Temple, J.A, White, B.A., Ou, S.R., & Robertson, D.L. (2011). Age 26 cost-benefit analysis of the Child-Parent Center Early Education Program. Child Development, 82,1, pp. 379-404. NATIONAL OFFICE 1212 New York Ave., NW, Suite 300 Washington, D.C. 20005 Susan L. 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