The Labor Shortage--Poverty and Educational Aspects
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DOCUMENT RESUME ED 314 529 UD 027 20E TITLE The Labor Shortage--Poverty and Educational Aspects. Hearings on Examining Alternatives Available in Coping with a Projected Labor Shortage 1.7: the Future while Facing a Poverty Surplus and Educational Gaps in the Work Force before the Committee on Labor and Human Resources. United States Senate, Ore Hundred First Congress, First Session (January 26 and 27, 1989). INSTITUTION Congress of the U.S., Washington, D.C. Senate Committee on Labor and Human Resources. REPORT NO Senate-Hrg-101-13 PUB DATE 89 EOTE 346p.; Frequent reduced-image pages. AVAILABLE FROMSuperintendent of Documents, Congressional Sales Office, U.S. Government :cinting Office, Washington, DC 20402. PUB TYPE Legal/Legislative/Regulatory Materials (090) EDRS PRICE MF01 Plus Postage. PC Not Available from EDRS. DESCRIPTORS Educational Ctange; *Educational Needs; *Family Financial Resources; Hearings; Job Training; Labor Needs; *Low Income Groups; Poverty; Welfare Recipients; *Welfare Services IDENTIFIERS Congress 101st; Working Poor ABSTRACT This document comprises hearings on the poverty and educational aspects of the labor shortage. Twenty witnesses testified, including Secretary of the U.S. Department of Labor Elizabeth Dole, Secretary cf the U.S. Department of Education Lauro F. Cavazos, legislators, program administrators, and three working mothers. Testimony included the following information: (1) welfare recipients need remedial education and job training as well as support services to move from dependency to self-sufficiency; (2) the JobPlus program (Minneapolis, Minnesota) is an example of how the private sector can work with social service agencies to provide job readiness training; (3) the minimum wage is not sufficient to support a family; (4) the Employment and Training Choices Program (Massachusetts) provides comprehensive health care, childcare, and employment training for welfare recipients; (5) America must builda first-class work force capable of responding to domestic and foreign competition by improving the basic skills of youth and upgrading the skills of those currently working, and the workplace must adapt to the increasing number of women in the work force by providing special employee benefits; (6) emphasis needs to be placed on educating non-college bound youth because the supply of unskilled and uneducated labor is increasing while the demand for unskilled labor is declining; (7) federal education funds should focus on higher expectations, greater access to education, and more accountabilityin the educational system; (8) federal, state, and local programs should focus on early childhood education, parent involvement, and teaches preparation. The responses of Secretary Dole and Secretary Cavazos to questions from the Committee and a table illustrating the household budget of a working mother are appended. (FMW) 1.7.1titv S. HRG. 101-13 4\1THE LABORSHORTAGEPOVERTY AND EDUCATIONAL ASPECTS tti 7-4 ctz az cal HEARINGS BEFORE THE COMB ITTEE ON LABOR AND HUMANRESOURCES UNITED STATES SENATE ONE HUNDRED FIRST CONGRESS FIRST SESSION ON EXAMINING ALTERNATIVES AVAILABLEIN COPING WITH A PROJECTED LABOR SHORTAGE IN THE FUTUREWHILE FACING A POVERTY SUR- PLUS AND EDUCATIONAL GAPS INTHE WORK FORCE JANUARY 26 AND 27, 1989 U S. DEPARTMENT OF EDUCATION Office of Educators; Research and Improvement EDUCATIONAL RESOURCESINFORMATION CENTER CRICI TI,s document has een reproduced as reCewed Vont, the per.:on or organ,: abon ong,nahng CL MOW changes hare been made to ,mprovu reproduchen cuatay Pc,,ntaut ulew or opm,ons stated mrtusdOcu- ment do not neceSSan,,, represent ett,:at °ERA pos,hon or pdt,cy VV N C\1 <-3 Printed for the use of the Committeeon Labor and I-Imaan Resources 44; U.S. GOVERNMENT PRINTING OFFICE 35-700 WASHINGTON : 1989 For sale by the Superintendent of Documents, CongressionalSales Office US Government Printing Office, Washington, DC 20402 0 BEST GOEYEAV A-1 LA 11 COMMITTEE ON LABOR AND HUMAN RESOURCES EDWARD M. KENNEDY,Massachusetts, Chairman CLAIBORNE PELL, Rhode Island ORRIN G. HATCH, Utah HOWARD M. MEIY.ENBAUM, Ohio NANCY LANDON KASSEBAUNI, Kansas SPARK M. MATSUNAGA, Hawaii JIM JEFFORDS, Vermont CHRISTOPHER J. DODD, Connecticut DAN COATS, Indiana PAUL SIMON, Illinois STROM THURMOND, South Carolina TOM HARKIN, Iowa DAVE DURENBERGER, Minnesota BROCK ADAMS, Washington THAD COCHRAN, Mississippi BARBARA A. MIKULSKI, Maryland Nicx LrrrEFigto, Staff Director and Chief Counsel Mut -4E A. Ivm Isom, Lfinority Staff Director BEST COPY AVAILABLE $.1 CONTENTS STATEMENTS THURSDAY, JANUARY 26, 1989 Page Dipilato, Wendy Mott, ET Choices graduate,Worcester, MA; Taffie Lloyd, Kittanning, PA; and Renee Goldinger, Kittanning, PA 25 Dole, Hon. Elizabeth Hanford, Secretary,U.S. Department of Labor Prepared statement 101 105 Durenberger, Hon. Dave, a U.S. Senator fromthe State of Minnesota Prepared statement 7 Hatch, Hon. Orrin G., a U.S. Senator 8 statement from the State of Utah, prepared Simon, Hon. Paul. a U.S. Senator from the 4 ment State of Illinois, prepared state- Townley, Marcia, director of public affairs, 5 lis, MN Dayton-Hudson Corp., Minneapo- Prepared statement 10 14 Wright, Patricia, Armstrong CountyCommunity Action Agency, Kittanning, PA; and Charles Atkins, commissionerof Public Welfare for Massachusetts, Boston, MA Prepared statement of: 33 Ms Wright Mr Atkins (with an attachment and charts) 37 46 FRIDAY, JANUARY 27, 1989 American Society for Personnel Administration, prepared staternont 332 Caldwell, Dr Bettye, professor ofeducation, University of Arkansas, Little Rock, AR; Dr. Ernest Boyer, president,Carnegie Foundation, Princeton, NJ; and Dr. Joseph Fernandez, superintendent,Dade County Schools, on behalf of the Council of Great City Schools,Miami, FL Prepared statements of: 250 Dr. Caldwell Dr. Boyer 255 Dr. Fernandez 267 283 Cavazos, Hon. Lauro F., Secretary,U.S Department of Education,accompa- nied by Charles E.M. Kolb, DeputyUnder Secretary, Office of Planning, Budget and Evaluation, U.S. Departmentof Education Prepared statement of Secretary Cavazos I'l157 Gardner, Hon. Booth, Governor, State ofWashington Prepared statement (with an attachment) f..`17 Hatch, Hon. Orrin G., a U.S. Senator 220 statement from the State of Utah, prepared 135 Howe, Dr. Harold II, senior lecturer,graduate schoal of education, Harvard University, Cambridge, MA, accompaniedby Sam Halperin, study director, Youth and America's Future; andDr. Robert Atwell, president, American Council on Education, Washington, DC Prepared statements of: 298 Dr. Howe (with an attachment) Dr. Atwell 302 Simon, Hon. Paul, a U.S. Senator from 323 ment (with an attachment) the State of Illinois, prepared state- 136 HID Iv ADDITIONAL MATERIAL Questions and answers: Page Responses of Secretary Dole to questions submitted by Senator Lauten berg 125 Respor.oe., of Secretary Cavazos to questions submitted by the 4.urnmittee 185 Table: Renee Goldinger household budget 30 5 L THE LABOR SHORTAGEPOVERTYAND EDUCATIONAL ASPECTS The Poverty Surplus THURSDAY, JANUARY 26, 1989 U.S. SENATE, COMMITTEE ON LABOR AND HUMANRESOURCES, Washington, DC. The committee met, pursuantto notice, at 1:35 p.m., inroom SD- 430, Dirksen Senate Office Building,Senator Edward M. Kennedy (chairman of the committee) presiding. Present: Senators Kennedy, Pell, Durenberger. Thurmond, Cochran, Coats, and OPENING STATEMENT OF SENATORKENNEDY The CHAIRMAN. The committee willcome to order. Today we begin the work of theLabor and Human Resources Commit in the new Congress. In thelast Congress, this commit- tee reported 45 pieces of legislation thathave since been signed into public law. These include a number of reauthorizations ofex- isting authority, but they alsoinclude measures suchas requiring notice to workers of plant closings,banning lie detectors in the workplace, establishinga national war on AIDS, linking the Na- tion's schools by satellite, andcreating a literacycorps of college students to teach in the public schools. While our legislative agendahas been diverse, it has sought three fundamental goals. We wanta good job for every worker;we want a good worker forevery job; and we want to invest in the future. Our hearings today andtomorrow will set out the problemswe face '-, reaching these three goalsand the strategy weare pursuing to soh e them. We will hear thisafternoon from the Secretary of Labor, Elizabeth Dole,on the unprecedented labor shortage likely to confront the Nation in the nextdecade and well into the begin- ning of the next century, andwe will hear tomorrow morning from Secretary of Education Cavazos aboutthe role of the schools in ad- dressing that shortage. For the first time since the laborshortage caused by the Second World War, America will havemore jobs than workers. The labor shortage has already emerged insome parts of the country, nota- bly, Massachusetts, and within prime example. certain professionsnursing isa (1) 2 These are warning signs. The Workforce 2000 study by the De- partment of Labor is more comprehensive It pro- ...les unmistak- able advance notice that unless we act now, America will soon be without enough hands on deck to get the work of America done. This problem would be pressing enough even if it signalled nierel j a shortage of workers. More than in the past, howev er, the jobs of the future will require solid basic skills in reading and com- munications, in mathematics and computers. Recruiting more men and women into the work force will not solve the problem; we must also close the skills gap. These challenges are serious, but they are also an historic oppor- tunity. Since 1969, the poverty rate has fluctuated between 11 and 15 percent, and that rate has tended to follow the unemployment rate. This suggests that the coming labor shortage may be the cata- lyst we need to permanently break the cycle of poverty. In effect, we have a labor shortage and a poverty surplus, and with the right policies, we could use them to solve each other. Half of those on welfare today have been on welfare for years and are likely to remain or welfare for years to come. The peaks and troughs of the business cycle have been irrelevant to their for- tunes. Prosperity passes them by and recession merely brings more company to their misery.