Connecting Education and Workforce Data

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1 Connecting Education and Workforce Data October 2, 2014 Council of State Governments Policy Academy Dane Stangler Vice President of Research & Policy E.J. Reedy Director of Research & Policy Kauffman Foundation

2 About Kauffman The Ewing Marion Kauffman Foundation is a private, nonpartisan foundation that aims to foster economic independence by advancing educational achievement and entrepreneurial success. Founded by late entrepreneur and philanthropist Ewing Marion Kauffman, the Foundation is based in Kansas City, Mo., and has approximately $2 billion in assets.

3 Connecting the Two Worlds Education Workforce (contains entrepreneurship)

4 Goal of Policy Academy Education Workforce (contains entrepreneurship)

5

6 Education Workforce Source:

7 Fall 1967 Fall 1970 Fall 1973 Fall 1976 Fall 1979 Fall 1982 Fall 1985 Fall 1988 Fall 1991 Fall 1994 Fall 1997 Fall 2000 Fall 2003 Fall 2006 Fall 2009 Fall 2012 More Inputs More Growth 120 High School and Postsecondary Enrollment High School Postsecondary

8 Today: System Coming Apart Divergent labor force participation Multiple educational pathways Fragmenting workforce

9 Multiple Educational Pathways

10 Fragmenting Workforce Source: Intuit 2020

11 Recombination See also: Phil Auerswald, Coming Prosperity

12 Example: Entrepreneurship

13 U.S. Business Births (firms and establishments) 800, , , , , , , , , ,000 Census (firm) Census (estab) BLS (estab) 300,

14 4,000,000 Total Aggregate Employment of U.S. New Business Cohorts (Census firms) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,

15 Entrepreneurship Trends: States Represented Today 14.00% Employer Firms Entry Rate 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Massachusetts Colorado Georgia Illinois Kansas Pennsylvania Tennessee US

16 Trends in Entrepreneurship Bottomed out but not recovered o New data on 2012 was disappointing o Starting smaller and staying smaller Remains a key source of job creation and dynamism o Need to understand better the drivers of success from training o Where are all of the young entrepreneurs?

17 Lost Generation VS. New Great One

18 Reasons for Pessimism VS. Reasons for Optimism Declining rates of entrepreneurship Weak early career job prospects Lower consumption Weak housing market (associated with entrepreneurship) Highest educational levels in U.S. history Perceived tech entrepreneurship boom High levels of entrepreneurial ed. formally and informal exposure Student debt Lower barriers to entrepreneurship

19 Boom in Programs, to Little Effect Number Entrepreneurship Programs, Courses, and Degrees Overall Rate of Business Creation 1980 Today

20 Entrepreneurial Experimentation

21 Demographic Composition of New Entrepreneurs years-old were the largest group in 1996 and the smallest one in

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