Preparing the next generation for the work force: educating youth, giving them a future.

• Author: Teo, Flora
• Position: Special section: Junior Achievement Alaska Business Hall of Fame

THE ISSUE

Every day, 10 students in Alaska drop out of high school. Last year, 3,900 high school students in Alaska failed to graduate high school. What does this mean for Alaskans? The lost lifetime earnings in Alaska for the class of 2010 dropouts alone total more than $1 billion. Overall, young people who drop out are twice as likely as graduates to be unemployed; three times as likely to live in poverty, eight times as likely to wind up in prison; and twice as likely to become the parent of a child who drops out of high school.

How does that affect the economy? Over the course of a student's lifetime, a high school dropout earns, on average, about $260,000 less than a high school graduate and contributes about $60,000 less in taxes. Conservative estimates show that the nation's economy would have benefited over time from nearly $335 billion in additional income if the students who dropped out of the Class of 2009 had graduated.

The health of a nation is largely influenced by the makeup of the current and future work force. The characteristics of the work force impact productivity, the economy, and global competitiveness. In 2001, approximately 139 million individuals were in the U.S. work force. However, the unemployment rate in April 2011 was 9 percent.

As the economy recovers, former job positions are being replaced by those that require more technical skills or education. Individuals who were forced to leave the job market are finding it very difficult to reenter the work force because they no longer possess the knowledge and skills employers require. Furthermore, new entrants in to the work force also find themselves unprepared for the demand of entry level jobs that require higher level skills. As a result, employers are struggling to fill open positions.

To remain competitive as a nation, the gap between the knowledge and skills needed by employers and the number of available workers who meet these qualifications must be addressed. According to researchers, the skills gap has two primary underlying causes--changing jobs and low levels of education attainment. Jobs today require workers who possess more knowledge and proficiency in 21st century skills, such as teamwork, problem-solving, and technology skills.

Furthermore, the level of educational attainment is not keeping up with the number of skilled workers needed. The need for a high school diploma as a minimum is critical as jobs become more complex in a global economy and...