United States General Accounting Office
__________________________________________________________________
GAO Report to Congressional Requestors
__________________________________________________________________
May 1990 TRAINING STRATEGIES
Preparing Noncollege Youth
for Employment in the U.S.
and Foreign Countries
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and tables--was not in ASCII text format and not included. If you
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Box 6015, Gaithersburg, MD 20877.
__________________________________________________________________
GAO/HRD-90-88
May 11, 1990
The Honorable James H. Scheuer
Chairman, Subcommittee on Education and Health
Joint Economic Committee
Congress of the United States
The Honorable Augustus F. Hawkins
Chairman, Committee on Education and Labor
House of Representatives
This report, prepared at your request, contains information
on (1) the weaknesses in the U.S. education and training
system for preparing noncollege youth for employment and (2)
foreign strategies that appear relevant to the U.S.
shortcomings. It also includes policy actions that might be
considered by the federal government and by state and local
governments.
As requested, we did not obtain written comments from the
Departments of Education or Labor. We did, however, discuss
matters described in this report with officials in these
agencies, and their comments have been incorporated where
appropriate. We are sending copies of this report to other
congressional committees and subcommittees, the Secretaries
of Labor and Education, and other interested parties.
This report was prepared under the direction of Franklin
Frazier, Director, Education and Employment Issues, who may
be reached on (202) 275-1793 if you or your staffs have any
questions. Other major contributors to this report are
listed in appendix III.
Charles A. Bowsher
Comptroller General
of the United States
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__________________________________________________________________
EXECUTIVE SUMMARY
__________________________________________________________________
PURPOSE
The United States is renowned worldwide
for its college and university system,
which provides extensive opportunity for
higher education. Yet only about half
of U.S. youth go to college. For the
other half, U.S. education and training
often provide inadequate preparation for
employment.
The perception that foreign competitors
excel in world trade partly because
their workers are better educated and
trained prompted the Joint Economic
Committee and the House Education and
Labor Committee to ask GAO to compare
how the United States and competitor
countries prepare noncollege youth for
employee. Specifically, GAO was asked
to
-- review U.S. education and training
strategies and identify likely
weaknesses and
-- examine selected countries'strategies
for preparing noncollege youth for
employment.
___________________________________________________________________
BACKGROUND
Experts are concerned that U.S.
international competitiveness is being
eroded because (1) many jobs are
requiring greater skills and (2) youth
are unprepared to meet the new labor
market demands. Required skill levels
are increasing in both the occupations
with the fastest rate of growth and
those projected to add most new jobs in
the next decade. Poor literacy skills
and employer reports that many youth
applicants are unqualified for entry-
level positions point up inadequacies in
the preparation of youth for
employment.
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For this study GAO examined four
countries--England, the Federal
Republic of Germany, Japan, and Sweden--
that try to develop a well-qualified
noncollege youth work force. GAO
reviewed literature on how the United
States and these countries prepare
noncollege youth for employment,
consulted with experts who assessed the
U.S. and foreign strategies, and visited
the foreign countries to meet with
knowledgeable persons and view the
education and training systems
firsthand. GAO cautions that
necessarily succinct contrasts between
U.S. weaknesses and foreign strengths in
education and training often conceal
U.S. strengths and foreign weaknesses in
this area.
__________________________________________________________________
RESULTS IN BRIEF
Insufficient attention is devoted to
preparing U.S. noncollege youth for
employment. About 9 million of the
nation's 33 million youth aged 16 to 24
will not have needed skills to meet
employer requirements for entry-level
positions--5.5 million dropouts and 3.8
million high school graduates who lack
high school competency.
The four competitor nations have
national policies that emphasize
preparing noncollege youth for
employment. Specific approaches vary by
country, are rooted in different
traditions, and may be accompanied by
problems of their own. Still, the
following approaches used by some or all
of the countries may be relevant for
the United States:
-- Foreign countries expect all students
to do well in school, particularly in
the early school years. Some U.S.
schools, confronted with difficult
social ills, often accept that many
will lag behind.
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-- Foreign schools and the employment
community guide students' transition
from school to work to a greater
degree than in the United States.
Noncollege students leaving school
receive more directed assistance in
finding jobs than their U.S.
counterparts.
-- Competitor nations establish
competency-based national training
standards that they use to certify
skill competency. The common U.S.
practice is to certify only program
completion.
-- Competitors invest extensively in
jobless out-of-school youth to assure
them a job or further education and
training. U.S. employment and
training programs reach only a modest
proportion of youth in need.
GAO's ANALYSIS
U.S. Shortchanges
Noncollege Youth
The foreign countries tend to invest
proportionately more than does the
United States in noncollege education
and training. The United States invests
heavily in college education but does
not do equally well by its young people
who seek immediate employment. From the
customary end of compulsory education at
age 16 through age 24, less than half as
much is invested in education and
training for each noncollege youth as
for each college youth (see pp. 12 and
23-24).
Expectations That
All Students Will
Do Well in School
Young adults in the foreign countries
have higher literacy levels than those
in the United States. In the United
States, academic difficulties frequently
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are evident in the early years, with
many children unprepared for school
entry and many in school not keeping
pace with expected levels of progress.
Certain practices of the other
countries, such as providing comparable
educational resources to all schools,
emphasize providing equal educational
opportunity to all youth regardless of
differences in socioeconomic status and
academic talent. For example:
-- Japan provides uniform teacher
salaries and per capita school
funding, so that poorer areas have
educational resources that are
comparable to more affluent ones.
-- Sweden gives extra resources to needy
schools, such as those in remote
rural areas or with large immigrant
populations.
Assistance in
Transition From
School to Work
The foreign countries help students
learn about job requirements and assist
them in finding employment to a greater
extent than does the United States. One
major element is the involvement of
employers. For example:
-- Joint school-employer programs
provide work experience for secondary
school students.
-- Japanese employers recruit high
school seniors through the schools,
basing hiring decisions on schools'
recommendations.
-- Employers train over two-thirds of
youth in the Federal Republic of
Germany through apprenticeships that
usually last 3 years. Employers
provide on-the-job skill training for
3 or 4 days a week, and apprentices
attend school the remaining 1 or 2
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days for instruction in mathematics,
language, other academic subjects,
and vocational skills.
Establishment of
Skill Training
Standards
Germany in particular, and more recently
England, seek to maintain quality
occupational training by testing and
certification to meet national
standards. Trainees who attain tested
levels of competency receive nationally
recognized certification, which
employers look to as evidence of
particular levels of skill. In the
United States, certificates for trainees
often certify course completion and not
necessarily attainment of specific skill
levels.
Extensive
Investment in
Jobless Youth
The foreign countries seek to assist
most youth who encounter employment
problems. For example, Sweden
guarantees education, training, or work
to every jobless teenager upon leaving
school. England guarantees every
jobless 16- and 17-year-old out-of-
school youth up to 2 years' work
experience and training.
POLICY
CONSIDERATIONS
Shortcomings in the U.S. system for
preparing noncollege youth for
employment, and some apparently
effective approaches identified in
foreign systems, point to types of
action that might be considered to
improve education and training in the
United States. However, the foreign
approaches may not be entirely
appropriate or readily transferable
because of cultural and other
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differences. Also, alternate mechanisms
for applying the approaches may be
needed. In addition, directing more
attention to youth who seek employment
rather than go on to college should not
detract from widely available college
opportunity in the United States, a
practice in which the United States
generally surpasses its foreign
competitors. Notwithstanding these
cautions, the following appear to
warrant consideration by the federal,
state, and local governments:
-- Strive to ensure that all children
attain the academic skills necessary
to perform effectively in
postsecondary education or the
workplace. Notably, greater
emphasis should be given to providing
needed early intervention programs
and adequate educational resources
for all children.
-- Develop more school-employer
linkages, particularly to expand
combined education and work
(apprenticeship-type) programs and to
assist youth to obtain suitable
entry-level employment.
Adopting effective education and
training strategies nationwide to
improve national productive capability
and international competitiveness will
require strong leadership and an active
federal role. The executive branch is
the logical focal point for national
responsibility. The Department of
Education, in combination with the
Department of Labor, can play a
leadership role in helping state and
local officials and business and labor
representatives work more effectively to
equip U.S. noncollege youth to meet the
nation's need for well-qualified future
workers. (GAO did not analyze potential
costs or funding sources.)
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AGENCY COMMENTS
GAO did not obtain written agency
comments on this report, but discussed
the matters described in the report with
officials from the Departments of
Education and Labor. Their comments
have been incorporated where
appropriate.
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CONTENTS Page
-------- ----
EXECUTIVE SUMMARY 2
CHAPTER 1 INTRODUCTION 12
Background 12
Foreign Education and Training 16
Objectives, Scope, and Methodology 21
CHAPTER 2 U.S. STRATEGIES FOR PREPARING YOUTH FOR 24
EMPLOYMENT
Overview of U.S. System 24
Levels of Educational Attainment 26
Public Investment for College and 27
Noncollege Youth
Weaknesses in U.S. System 28
CHAPTER 3 FOREIGN STRATEGIES FOR JOB PREPARATION 37
Emphasis on All Youth Doing Well 37
Structured School-to-Work Transition 38
Recognized Skill Standards 42
Extensive Investment in Jobless 43
Youth
CHAPTER 4 CONCLUSIONS AND POLICY CONSIDERATIONS 46
APPENDIXES
APPENDIX I: Methodology for Estimating Investment 48
in Youth and Training
APPENDIX II: Training for Non-college- 59
Bound Youth
APPENDIX III: Major Contributors to 62
This Report
BIBLIOGRAPHY 63
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RELATED GAO PRODUCTS 72
TABLES
Table 1.1: Fastest Growing 13
Occupations (1988-2000)
Table 1.2: Occupations with Largest 14
Job Growth (1988-2000)
Table 1.3: Selected Characteristics 17
of the Five Countries
Table 2.1: Estimated Level of 26
Education Completed Through Age 24
(Youth Age 16-24 in 1988)
Table 2.2: Average Public Investment 27
Per Youth for Education and
Training (Ages 16-24)
Table 3.1: West Germany's 10 Leading 41
Training Occupations by Sex (1987)
Table I.1: Second-Chance Programs' 52
Annual Expenditures for Youth
Table I.2: Postsecondary Noncollege 56
Training: Public Annual
Expenditure for Youth Age 16-24
Table I.3: Estimated U.S. Public 58
Investment in Youth Education and
Training During 9 Years From Age 16
Through 24 by Level of Education
FIGURES (The following figures are not included because
they could not be viewed as ASCII text.)
Figure 1.1: International
Expenditures on Education:
Preprimary Through
Secondary Education (1985)
Figure 1.2: International
Expenditures for Special Youth
Measures (1987)
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Figure 1.3: International
Expenditures for Education:
Preprimary Through
Higher Education (1985)
Figure 1.4: Federal Republic of
Germany, Type of School Attended (1986)
Figure 1.5: High School Attendance
in Japan (1985)
Figure 2.1: Long-Term Effects of
Head Start
ABBREVIATIONS
GAO General Accounting Office
JTPA Job Training Partnership Act
NCES National Center for Education Statistics
OECD Organization for Economic Cooperation and
Development
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CHAPTER 1
---------
INTRODUCTION
------------
BACKGROUND
----------
Increasing international competition and advancing technology
require a more highly skilled U.S. work force. But recent studies
and widespread reports from employers indicate that many youth are
ill-prepared for employment.#1 A skill-deficient young work force
hampers the nation's economic growth, productivity, and ability to
compete with foreign countries. Some foreign competitors may excel
in part because they more effectively prepare their work force,
paying close attention to the education and training of their
noncollege youth.
The United States provides extensive opportunity for a college
education for a large proportion of its youth. Our colleges and
universities are the envy of the world. Yet with work-force
quality becoming a key element in U.S. competitiveness, the
education and training of noncollege youth become increasingly
critical. This report addresses how nations prepare for work those
youth who do not go to college, exploring the relevant educational
practices of the United States and of four countries selected for
their experiences in training a skilled work force.
Mismatch Between Worker Skills
------------------------------
and Job Demands
---------------
The basic skills gap between what business needs and the
qualifications of entry-level workers is widening in the United
States. Jobs are demanding increasingly skilled workers at the
same time that many workers are inadequately prepared for the work
force.
1Michael Dertouzos, Richard Lester, Robert Solow, and the MIT
Commission on Industrial Productivity. Made in America: Regaining
the Productive Edge. The MIT Press, 1989; Irwin Kirsch and Ann
Jungeblut. Literacy: Profiles of America's Young Adults. National
Assessment of Educational Progress, Educational Testing Service,
1986; U.S. Department of Labor, U.S. Department of Education, and
U.S. Department of Commerce, A Joint Initiative. Building a
Quality Workforce, July 1988.
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Many jobs of the future will demand more skilled labor. Most of
the occupations projected to grow fastest require moderate to high
skills (see table 1.1). For example, health service and computer
technology-related occupations are projected to increase by half
over the next decade. Opportunities in many of these occupations
are limited for those without higher levels of education.
Table 1.1: Fastest Growing Occupations (1988-2000)
Number of jobs in thousands
Projected increase in jobs
--------------------------
Occupation Number Percentage
---------- ------ ----------
Paralegals 62 75
Medical assistants 104 70
Home health aides 160 68
Radiologic technologists
and technicians 87 66
Data-processing equipment
repairers 44 61
Medical records technicians 28 60
Medical secretaries 120 58
Physical therapists 39 57
Surgical technologists 20 56
Operations research
analysts 30 55
Securities and financial
services sales workers 109 55
Travel agents 77 54
Computer systems analysts 214 53
Physical and corrective
therapy assistants 21 52
Social welfare service
aides 47 52
Occupational therapists 16 49
Computer programmers 250 48
Human services workers 53 45
Respiratory therapists 23 41
Correction officers and
jailers 76 41
Source: George Silvestri and John Lukasiewicz, "Projections of
Occupational Employment, 1988-2000," Monthly Labor Review
(Vol. 112, No. 11, Nov. 1989), p. 60.
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In addition, while many low-skill occupations will continue to
employ many people (see table 1.2), their skill requirements are
expected to increase to some extent even, for example, in
janitorial and messenger jobs. Skills increasingly needed to
perform many jobs include the ability to connect practice and
theory; identify problems; and then analyze, test and
troubleshoot, and adapt to new technology.#2
Table 1.2: Occupations with Largest Job Growth (1988-2000)
Number of jobs in thousands
Projected increase in jobs
--------------------------
Occupation Number Percentage
---------- ------ ----------
Salespersons, retail 730 19
Registered nurses 613 39
Janitors and cleaners 556 19
Waiters and waitresses 551 31
General managers and top
executives 479 16
General office clerks 455 18
Secretaries, except legal
and medical 385 13
Nursing aides, orderlies,
and attendants 378 32
Truck drivers 369 15
Receptionists and information
clerks 331 40
Source: George Silvestri and John Lukasiewicz, "Projections of
Occupational Employment, 1988-2000," Monthly Labor Review
(Vol. 112, No. 11, Nov. 1989), p. 60.
As skill levels are increasing, employers are finding that many
young workers are inadequately prepared for many entry-level as
well as most higher-skilled jobs. Employers largely agree that
entry-level workers should read at least at the 8th grade level.
Many hold, moreover, that the increased technological content of
instruction manuals, coupled with greater demands on workers to
maintain the equipment they operate, requires an 11th or 12th grade
reading level. Yet an estimated 20 percent of young American
adults cannot read at the 8th grade level and 40 percent cannot
2Dale Parnell, The Neglected Majority (Washington, D.C.:
Community College Press, 1985), p. 14.
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read at the 11th or 12th grade levels.#3 In a joint report of the
Departments of Labor, Education, and Commerce, two-thirds of the
employers consulted assessed the current pool of entry-level
applicants as insufficiently prepared in academic skills.#4
This is a particular concern for minorities and the economically
disadvantaged, who traditionally have had lower levels of
educational achievement than others. About 85 percent of young
white adults are literate at the 8th grade level, as compared with
70 percent of Hispanics and 50 percent of blacks.#5
Costs of Inadequate Preparation
-------------------------------
The inadequate preparation of young noncollege workers has both
individual and social costs. The unprepared individual forgoes
considerable earnings over a lifetime while contributing to
lagging national productivity growth and social welfare cost
increases. One year's cohort of high school dropouts and deficient
high school graduates may forgo an estimated $150 billion to $300
billion in earnings over their lifetimes, or about $135,000 to
$300,000 per individual.#6 In addition, the government is likely
to incur increased expenditures to address social problems, such as
crime, drug abuse, prison, and welfare, estimated conservatively at
$10 billion.#7 To what extent these losses could be recouped
3Literacy rates for young adults, age 25 to 29. Kirsch and
Jungeblut, Literacy: Profiles of America's Young Adults.
4Building a Quality Workforce.
5Literacy: Profiles of America's Young Adults.
6The ranges cited are based on differing assumptions of the
portion of the income differential attributable to differences in
educational attainment.
7The costs of inadequate preparation were estimated by GAO using
methodologies developed by James S. Catterall, Professor of
Education, University of California at Los Angeles. Catterall
estimates that the 973,000 dropouts from the nation's high school
"Class of 1981" will lose $228 billion in personal earnings over
their lifetimes, while society will lose $68.4 billion in taxes
(James S. Catterall, "On the Costs of Dropping Out." California:
Institute for Research on Educational Finance and Governance,
December 1985). Similarly, the Committee for Economic
Development estimated that each year's class of dropouts costs
the nation more than $240 billion in lost earnings and forgone
taxes over their lifetimes. Additionally, billions more will be
spent on crime control and on welfare, health care, and other
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through increased investment in education and training is unclear;
however, that significant costs will be incurred because of an ill-
prepared work force is indisputable.
How Do Our Trade Competitors Do?
--------------------------------
Our economic competitors face similar economic pressures, but
experts perceive Japan, for example, as being ahead of the United
States in preparing noncollege youth for the labor force and
providing them with adequate academic skills.
A comparison of literacy levels finds that over 85 percent of young
people in England and over 90 percent in Japan, Sweden, and West
Germany have the equivalent of at least eighth grade literacy. In
contrast, only 80 percent of their U.S. counterparts function at an
eighth grade level or higher. Also, national and international
tests show that many U.S. students, while able to grasp basic
mathematics skills, cannot handle problem solving or other higher-
order thinking tasks. Comparing the educational abilities of
American youth with those of foreign youth suggests problems for
future U.S. competitiveness.
FOREIGN EDUCATION AND TRAINING
------------------------------
The four countries we reviewed--England, the Federal Republic of
Germany, Japan, and Sweden--are more homogeneous in population than
the United States, although each has some immigrant subgroups.
Their populations are also considerably smaller than the United
States' 246 million. (See table 1.3.)
social services disproportionately required for ill-prepared
youth (Children in Need: Investment Strategies for the
Educationally Disadvantaged. Committee for Economic Development.
New York, 1987).
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Table 1.3: Selected Characteristics of the Five Countries
United West
States England Japan Sweden Germany
------ ------- ----- ------ -------
Population 1988
(millions) 264 48 122 8.4 61
Youth (15-24) as
percentage of
population 15 14 15 14 17
Unemployment rate,
1988 (percent):
Adult (25 +) 4.2 7.6a,b 2.2 1.3 6.7c
Youth (Under 25) 11.0 12.8a,b 4.9 3.3 7.6c
Percentage of youth in
vocational curriculum 30 18 28 50 70d
Postsecondary
enrollment rates 57% 21%a 30% 37% 30%
University
enrollment rates#e 36% 8%a 24% 26% 26%
aUnited Kingdom (England, Scotland, Wales, and Northern Ireland).
bPreliminary data.
c1987 for West Germany.
dThe approximate percentage participating in apprenticeship.
eConferring baccalaureate level degrees or higher.
According to a recent study,#8 the countries spend
proportionately more of their Gross Domestic Product#9 than does
the United States for preprimary, primary, and secondary
schooling. (See fig. 1.1.) Similarly, they spend more for
special measures to help youth enter the work force, such as
subsidized work experience, remedial education and training, and
direct job creation for youth. (See fig. 1.2.) However, when
expenditures for college education are combined with precollege
8The Economic Policy Institute, Briefing Paper, Shortchanging
Education: How U.S. Spending on Grades K-12 Lags Behind Other
Industrial Nations, 1990.
9Gross Domestic Product is similar to Gross National Product,
which is the value of all final goods and services produced in an
economy in a given year.
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education expenditures, the United States spends proportionately
more than any other industrial country except Sweden. (See fig.
1.3.)
Figure 1.1: International Expenditures
on Education: Preprimary Through
Secondary Education (1985)
(Could not be viewed as ASCII text.)
Source: Economic Policy Institute.
Figure 1.2: International Expenditures
for Special Youth Measures (1987)
(Could not be viewed as ASCII text.)
Note: Japan has no special youth measures. Over 90 percent of
youth finish high school.
Source: Organization for Economic Cooperation and Development.
Figure 1.3: International Expenditures
on Education: Preprimary Through
Higher Education (1985)
(Could not be viewed as ASCII text.)
Source: Economic Policy Institute.
Following is a brief description of the countries' education and
training systems.
England: Investment in Jobless Youth
-------------------------------------
Schooling in England is compulsory until age 16. At 16, English
youth may
-- continue their education for 2 more years in high school
for an "advanced level" certificate, sometimes with the
aim of going on to a university or a polytechnic
institute;
-- enter a technical or other "further education" college
(similar to a community college in the United States),
sometimes continuing on to a university or a polytechnic
institute; or
-- enter the work force.
About half of British youth leave full-time schooling at age 16.
A 1989 report by a Confederation of British Industry task force
states that:
"Britain has one of the lowest rates of participation
in post compulsory education and training of all the
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OECD countries#10 and produces a much smaller number of
school leavers educated to the standards required by a
modern economy . . . ."#11
Concern about inadequacies in the preparation of young workers
led England in the 1980s to adopt a series of major revisions in
its education and training system. Notably, it has undertaken to
establish
-- requirements for world of work orientation, including
work experience for all secondary students;
-- national skills standards developed by industry and
government, together with tests for certifying competence
levels; and
-- a Youth Training Scheme guaranteeing up to 2 years of
work experience and job training for all 16- and 17-year-
old jobless out-of school youth.
Federal Republic of Germany: Training Through Apprenticeships
--------------------------------------------------------------
Primary school in the Federal Republic of Germany serves
children from age 6 to 10 (or 11 in some states), after which the
young people are separated into three discrete curricular paths:
-- Hauptschule, leading primarily to blue collar
apprenticeships.
-- Realschule, offering training for higher level but
nonacademic occupations, with many of the graduates
entering white collar apprenticeships. The graduates
also can gain admission to a senior technical school.
-- Gymnasium, leading to university admission.
A few "lander" (states) have established comprehensive schools in
response to pressures to alleviate the rigidity of the triple-
track system. Also, in recent years a larger proportion of youth
10Britain consists of England, Scotland, and Wales. The
Organization for Economic Cooperation and Development (OECD) is
composed of 24 countries, largely of western Europe, plus
Australia, Canada, Japan, New Zealand, and the United States. It
seeks to promote world and member country economic growth policies.
11Towards a Skills Revolution - A Youth Charter, Interim Report
of the Vocational Education and Training Task Force,
Confederation of British Industry, July 1989.
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have been attending realschule and gymnasium. Thirty- nine
percent of eighth graders attended hauptschule in 1986 (see fig.
1.4), in contrast to over 50 percent in 1975.
Figure 1.4: Federal Republic of
Germany, Type of School
Attended (1986) (Could not be viewed as ASCII text.)
At age 15 or 16, upon completion of compulsory full-time
schooling, most youth enter apprenticeships that usually last 3
years. The apprenticeship system is known as the "dual system,"
because it provides training both on the job and in compulsory
part-time school. Youth who initially are unable to obtain an
apprenticeship typically attend 1 year of vocational school
before trying again to enter the dual system.
Dual system training actively involves industry, unions, and
government. Employers pay training and wage costs.#12 About
400,000 firms, nearly one-fourth of all the firms in the country,
sponsor apprentices. Training curricula, examinations, and
certification procedures are developed nationally through
tripartite collaboration.
Japan: Recruitment Through the Schools
---------------------------------------
School in Japan is compulsory for 9 years beginning at age 6,
with 6 years of elementary school and 3 years of junior high
school. Ninety-four percent of young people continue on to high
school for another 3 years.#13 (See fig. 1.5.)
Figure 1.5: High School Attendance In
Japan (1985) (Could not be viewed as ASCII text.)
About 35 percent of high school graduates go directly on to
work. Employers hire virtually all of these youth based on the
schools' recommendations.
About 30 percent of the high school graduates continue on to
university, junior college, or technical college, and about 28
percent attend schools outside the regular school system,
primarily proprietary schools. Many attending the latter schools
12Smaller firms that join together to form interfirm training
workshops receive some funding from the federal and state governments.
13The relatively few persons who attend high school at night
attend for 4 years. Night school students are persons who were
not accepted to day school, persons having to go to work, or
homemakers.
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are youth who are not accepted to college and are studying to
take the college entry test again. Others are interested in
obtaining a specific qualification, such as for computer
programmer.
Japanese employers take on much of the responsibility for
developing the occupational skills of the work force. About
three-fourths of Japanese firms provide some training to their
workers. The main training components provided by the firms are:
on-the-job training, including rotating workers among
assignments; training off the job, such as in centers organized
by the firms; correspondence courses; and worker participation in
group activities aimed at improving the firm's performance.
Sweden: Emphasis on Education and Training
-------------------------------------------
In Sweden, school is compulsory for 9 years starting at age 7,
but children also are entitled to 1 year of preschool. Over 90
percent of youth go on to "upper secondary" school at age 16,
which they attend for 2, 3, or 4 years depending on their
vocational or "theoretic" lines of study. About 50 percent of
the youth are in vocational lines. Out-of-school teenagers who
are jobless are guaranteed further education, training, or a job.
Worker training and retraining is extensive. A recent survey of
Swedish workers asked whether they had participated in any form
of education during the preceding year. Over one-half of
professional and white collar workers, and over two-fifths of
unskilled workers, said they had. Sweden's investment in
education and other human resource activities is proportionately
larger than practically any other country, including Japan and
the United States.
OBJECTIVES, SCOPE, AND METHODOLOGY
----------------------------------
The Joint Economic Committee and the House Education and Labor
Committee expressed concern about international competitiveness
and the adequacy of U.S. employment preparation. They asked us
to examine the United States' and selected competitor nations'
education and training strategies for preparing noncollege youth
for employment. Specifically, they asked us to identify
weaknesses in the U.S. strategy for educating and training
noncollege youth and assess whether other countries used
approaches with this population that might be relevant to the
United States.
In a simplified description of U.S. weaknesses and foreign
strengths, however, there is a danger that the U.S. education and
training outlook may be seen as unduly bleak because the
emphasis is on shortcomings. Similarly, the foreign approaches
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that appear attractive often are accompanied by disadvantages.
Also, the U.S. system is diverse, so that any generalization has
limitations. Finally, focusing on U.S. shortcomings and
apparently effective foreign practices does not necessarily get
at their complexities, interrelationships, or the context of
which they are a part.
Our objectives were to:
1. Describe how the United States prepares its noncollege
youth for employment, including
-- educational attainment levels by the youth population,
-- the investment of public funds in education and training
for noncollege as compared with college youth, and
-- the shortfalls in the U.S. education and training system.
2. Examine how England, the Federal Republic of Germany
(West Germany), Japan, and Sweden prepare their
noncollege youth for employment, to determine whether
they share significant approaches that the United States
may want to consider.
Our methodology involved examining literature on the U.S. and
foreign education and training strategies; consulting with
experts who described and assessed the U.S. and foreign
systems;#14 and visiting the selected countries, where we
observed school activities and interviewed government, industry,
and union officials, educators, and researchers.
As to the scope of the report, we did not seek to probe factors
other than education and training that influence development for
employment, although we recognize that successful school
performance and the transition into the labor force are
influenced by a variety of economic and social factors. Also, in
describing apparently effective approaches of the selected
countries, we do not imply that all aspects are necessarily
desirable, and we provide broad characterization rather than
14 Our consultants were (1) Seymour Brandwein, former Director of
the Office of Evaluation in the Department of Labor's Employment
and Training Administration; (2) Norman Evans, Director, Learning
From Experience Trust, London, England; (3) Robert W. Glover,
Research Associate, University of Texas, Austin; (4) Ray
Marshall, Professor, University of Texas, Austin, and former
Secretary of Labor; and (5) James E. Rosenbaum, Professor of
Sociology, Northwestern University.
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extensive detail. Because of cultural and other differences,
such as in demography and political systems, the foreign
approaches may not be entirely appropriate or readily
reproducible in the United States. Precisely how or to what
extent the foreign practices might be transferable was beyond the
scope of the report.
We selected the four countries for the following reasons: Japan
and the Federal Republic of Germany have enjoyed substantial
economic growth and international competitiveness gains, in part,
because of the quality of their work force. Sweden, a much
smaller country, also has achieved international economic success
and has extensive experience in developing a skilled labor force.
England, after economic recession and dissatisfaction with its
employment development system, has undertaken in the 1980s to
upgrade its youth education and training activities.
Our work was performed between August 15, 1988, and December 18,
1989, in accordance with generally accepted government auditing
standards.
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CHAPTER 2
---------
U.S. STRATEGIES FOR PREPARING YOUTH FOR EMPLOYMENT
--------------------------------------------------
The U.S. system for preparing youth, particularly noncollege
youth, for employment has evolved without a coherent overall
strategy. The U.S. stresses the importance of a college
education without providing similar emphasis to preparing
noncollege youth for employment. Weaknesses, such as the
inadequate development of academic skills, are apparent in the
early school years, in high school, and after departure from
school. About 9 million U.S. youth--both school dropouts and
high school graduates--are ill equipped to meet employer
requirements for entry-level positions.
OVERVIEW OF U.S. SYSTEM
-----------------------
Youth are generally required to attend school until age 16, but
are encouraged to continue their secondary education until age 17
or 18 to complete high school. The federal government does not
set U.S. education policy. The education system is primarily
locally controlled, with each school district determining
priorities, budgeting, and staffing. Schools receive about 50
percent of their funding from state governments, 44 percent from
local governments, and 6 percent from federal sources. As a
consequence, resources spent per pupil and for teachers' salaries
vary significantly across school districts. Local annual per
student funding ranges from about $2,000 to about $6,000.
Most school districts direct education through high school
primarily toward developing academic skills, gearing their
education to preparation for college entry. High schools link
their curricula to college requirements, advise youth on the
connection between school achievement and college entry, and
offer assistance on finding and being accepted to college.
Opportunities for college education generally are extensive.
For the noncollege oriented students, assistance is often
lacking to enable them to recognize the relevance of schooling to
work opportunities and to motivate them to do well.#15 Much less
15John H. Bishop, "The Motivation Problem in American High
Schools," Center for Advanced Human Resource Studies Working
Paper #88-13, Cornell University, October 28, 1988; and James E.
Rosenbaum, "Empowering Schools and Teachers: A New Link to Jobs
for Non-College Bound," in Investing in People: A Strategy to
Address America's Workforce Crisis, Background Papers, Vol. 1.
Commission on Workforce Quality and Labor Market Efficiency,
1989.
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attention is devoted to preparation and assistance for noncollege
youth's entry to work. Many youth who drop out, and some who
graduate from high school are deficient in the basic academic
skills needed by many employers.#16 In addition, too few youth
are taught about the world of work. Educational instruction on
the work world has not appreciably changed from 2 decades ago.
"By and large, young people [in the United States] leave
school without having learned about the nature of the jobs
which exist in a community, the different opportunities in
different industries, what employers expect from employees,
and the agencies which can give them help."#17
The schools generally do not help noncollege youth obtain
suitable postschool employment. Such assistance traditionally
has not been their responsibility. Nor is there any other
"institutional bridge" to help noncollege youth make the
transition from school to work. Left to themselves, many
dropouts and high school graduates flounder in the labor market,
jobless or obtaining jobs with little opportunity for
advancement.#18
For young people who leave school with inadequate academic and
work skills, programs supported principally by the federal
government offer a "second chance." Directed primarily to the
economically disadvantaged, these programs, most notably under
the Job Training Partnership Act (JTPA), offer generally brief
skill training and job placement assistance.#19
16The William T. Grant Foundation, The Forgotten Half: Pathways to
Success for America's Youth and Young Families, Final Report,
Commission on Work, Family and Citizenship, November 1988.
17Statement of W. Willard Wirtz, Secretary of Labor, to General
Subcommittee on Education, House Committee on Education and
Labor, February 28, 1968.
18William T. Grant Foundation, Commission on Work, Family and
Citizenship, The Forgotten Half: Non-College Youth in America,
Interim Report on the School to Work Transition. Washington,
D.C., William T. Grant Foundation, January 1988.
19Job Training Partnership Act: Services and Outcomes for
Participants With Differing Needs (GAO/HRD-89-52, June 9, 1989)
and Job Training Partnership Act: Youth Participant
Characteristics, Services, and Outcomes (GAO/HRD-90-46BR, Jan.
24, 1990).
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The United States looks to a variety of sources, in addition to
employer training of its employees, to provide occupational
training to develop a skilled young work force. These include
proprietary vocational schools; apprenticeship training programs,
usually conducted jointly by employers and unions; the military
services; and public community colleges principally offering mid-
level occupational training along with academic education. The
2-year community colleges also serve as a route for going on to
4-year colleges for preparation for the professions and other
skilled employment. In addition, they offer remedial courses and
occupational training for participants in programs such as
JTPA.#20
LEVELS OF EDUCATIONAL ATTAINMENT
--------------------------------
Under the educational system, about half of U.S. youth attend
college by the time they reach age 25 (although only about one-
fifth of all U.S. youth graduate). Of the noncollege youth,
most complete high school, but over one-fourth of all the youth,
or about 9 million, do not attain high school competency, because
they either drop out of high school or stay on to graduate
without mastering academic skills assumed for high school
graduates. (See table 2.1.)
Table 2.1: Estimated Level of Education Completed Through Age 2