Saturday, August 1, 2009

Time to break cycle of no skills, no jobs

Low level of literacy adds fuel to employment crisis

One out of three working-age adults in Michigan — 1.7 million people — cannot read well enough to be hired for a job that will support a family. More than 40% of those potential workers, who all read below a sixth-grade level, also lack a high school diploma or GED.

The stunning statistics come from a report done for the state Council for Labor and Economic Growth, which since December has been quietly formulating a plan of attack against what may be Michigan’s greatest economic challenge: transforming adult education from a system for enhancing job skills into one that prepares undereducated, unemployed people for work.

“It’s incredible,” said Dianne Duthie, division director of lifelong learning for the Bureau of Workforce Transformation in the state Department of Energy, Labor and Economic Growth. “It would take billions of dollars to remediate them. … We’re serving 48,000 people with $33 million.”

• WHAT CAN WE DO?: Some ideas to fix the problem

'People didn't have the skills'

When Electrolux closed its refrigerator plant in Greenville in 2006, 2,700 workers lost their jobs. Many saw a chance to return to work when United Solar Ovonic LLC built a new solar factory in the west Michigan town later the same year.

But a lot of the workers weren't ready.

"People didn't have the skills necessary to go into Montcalm Community College to take the class that was required to do the work" at the new-technology company, said Dianne Duthie, division director of lifelong learning for the Bureau of Workforce Transformation in the state Department of Energy, Labor and Economic Growth.

Few wanted to go back to school. Others just "wanted their same job back at the same wage," Duthie said.The situation in Greenville exposed Michigan's dirty little workplace secret, one that's not so secret to state officials, adult-reading instructors and employers who want to hire Michigan workers. Many of the state's working-age adults are not prepared for 21st-Century jobs, including modern manufacturing that requires higher levels of reading and math than the factory work of old.

A 52-page analysis adopted by state officials in December shows that a stunning one out of three working-age Michigan adults -- 1.7 million people -- lack the basic skills to get a family-sustaining job. It also shows that 44% of all Michigan's adults read below a sixth-grade level and that 60% of the students entering community colleges require remedial classes before they can start taking the postsecondary courses that lead to jobs.

The analysis was compiled by a work group that included more than 30 representatives of literacy centers, adult education programs, community colleges, universities, employers, Michigan Workforce agencies and liaisons from several state departments.

Armed with the report, state adult education officials have begun transforming the system to tackle a problem that Duthie said could cost billions to solve.

Workforce crisis

Michigan's ill-equipped workforce contributes to a perfect storm in employment in Michigan, one fueled also by factory workers laid off by the thousands who share space on the jobless rolls with high numbers of high school dropouts and graduates who were socially promoted through Michigan public schools without adequate education.

The result is an enormous population that is not educated enough to enter job-training programs that require reading at a sixth-grade level. The crisis also is fueling the run on Michigan's unemployment system, which provides benefits to 450,000 people and has received nearly 600,000 new claims since December.


• DISCUSS:Would you volunteer to teach adults to read so they can retrain for new jobs?

It also has forced some Michigan cities to forgo federal- and state- funded programs because potential participants didn't meet minimum reading requirements.

"We're talking about people who read below a sixth-grade reading level and in some cases lower," Duthie said. "They may recognize a stop sign or work their cell phone, but they certainly couldn't read directions."

Margaret Williamson, executive director of ProLiteracy Detroit, the city's largest adult-reading program, has seen the problem building for years.

"It's tragic," she said. "You see them, they come in to us after they've been to Work First and they're so dejected because they cannot even get into a job-training program."

She said Detroit has about 365,000 residents age 16 and older who read below sixth-grade level. That's more than a third of a city that is losing residents every year.

"Think about this," Williamson said. "If you open up every closed school and ran them 24/7, you don't have enough buildings or ... staff to remediate that level of people."

No quick fix

The state aims to develop a remediation plan for half the 1.7 million who need it, or 850,000 people. The state just received a $300,000 Joyce Foundation grant toward that end.

ProLiteracy is among several providers forming partnerships with employers to simultaneously teach basic skills and job skills. Such partnerships will be the core of the state's plan.

State Rep. Mike (Huck) Huckleberry, D-Greenville, said he had not seen the analysis of Michigan's poor literacy level, but lived through the Electrolux loss.

"Everything they're saying, I have witnessed it firsthand," he said. "Some people had a false vision that the jobs would come back. They'd made a living all their lives doing manufacturing work. They didn't perhaps have the highest education to begin with and they were absolutely scared. How do you tell somebody 55 years old you got to go back to college for two years, and they didn't have a high school education to begin with?"

Gary DiDio, plant manager for United Solar in Greenville, said about half the 350-person production force are former Electrolux workers, and he's happy with the team.

"But," he said, "I can tell you that in the screening process two years ago, I was astounded, shocked really, that some people would come in with no résumé and say their best skill was 'reliable' ... Today, you must be able to learn. Our responsibility is to create not just a work environment but a learning environment."

Greenville offers a lesson to every undereducated, unemployed worker.

"That's the way it is. That's the world we live in," Huckleberry said. "Anything we spend on training will come back as an investment, not an expense."

BY ROCHELLE RILEY • FREE PRESS COLUMNIST

Webster Tarpley on Alex Jones Tv:Obama’s Mask is Coming Off!!

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Wake up Call to America! The Third Jihad is Here!

(IsraelNN.com) Don’t miss this incredible interview on Radical Islam’s Vision for America.

Many believe that Islam taking over America will never happen and is for conspiracy buffs only or that anyone who thinks that this is possible is crazy. Well call us crazy but it is no longer a matter of “this can’t happen”, but instead IT IS HAPPENING RIGHT NOW IN YOUR OWN BACK YARD! Wake up America!!!
Unfortunately, most Americans are so wrapped up in their own lives that they don’t realize that one day in the near future their wives, daughters, aunts, grandmothers and their mothers will soon be wearing burkas. And, the men will have their heads removed, publically, because they will not convert to Islam. People will be stoned in the streets. And, that’s just the “Meet and Greet” introduction phase.



America has problems now with the Obama administration turning the country into a Socialist State and then on to a Communist Dictatorship. Islam is sitting and watching Americans do nothing to stop the Obama nightmare; how easy will it be for Islam to take over this country? By the time you wake up from your social slumber it will be too late to do anything.

So we can sit back and continue to do nothing, and become a conquered nation or we can “lock and load” and find solutions to this evil which is knocking at our door. What’s it gonna be!?

Join Ray and Adam as they discuss this evil and where to get solutions to fight the evil with Dr. Zuhdi Jasser a devout Muslim who stands against Radical Islam and is a featured guest on the Third Jihad movie. We will also be talking to producer Raphael Shore who also produced the movie Obsession. These are two of the bravest men in America who are doing something about it but they cannot do it alone. Hopefully, if the American news media grows a spine they will be providing information on this as well.

This is a wake up call to America and to all of Mankind. We can no longer roll over and play dead.

U.S. Money: Will Pay to the Bearer on Demand ? Two Photos


Please examine the bills above - notice the change of wording between the two bills: "Will pay to the bearer on demand" appears on the older bill, but not on the second bill. Then notice the dates the bills were printed. What is the significance?

What would be payed to the bearer on demand?


CLICK HERE TO READ MORE ABOUT THE BILLS ABOVE...

Profit reports push Dow to best July in 20 years

CATERPILLAR INC DEL
Stock Ticker Chart
NYSE:CAT
Updated: 16:00 ET
44.06 +0.65

ALCOA INC
Stock Ticker Chart
NYSE:AA
Updated: 16:00 ET
11.76 +0.30


NEW YORK (AP) - New hope for the economy just gave the stock market its best July in 20 years.

Investors placed big bets over the last month that the profit machine at U.S. companies will continue to rev higher and that the longest recession since World War II is finally easing its grip. If that turns out to be wrong, the huge gains of July mean there will be an even bigger price to pay if companies don't deliver.

The Dow surged 725 points or 8.6 percent for the month, with most of the gains arriving in bursts in the final 15 days. The extraordinary run shaped July into the best month for the blue chips since October 2002 and the best July since 1989. The Dow has risen four of the past five months.

The broader Standard & Poor's 500 index, a benchmark for many mutual funds, also ran at a strong pace and July was its best performance since 1997. Even with the gains, the S&P is still down 37 percent from its peak in October 2007.

The companies that fared best in July were those that signaled they were patching up their businesses after a terrible winter and fall. Caterpillar Inc.'s earnings for the April-June quarter fell but the company raised its profit forecast for the year. Its stock surged 33.4 percent for the month.

Earnings reports that fueled the rally often contained a few dark spots, and many companies have been increasing their bottom line by taking a knife to costs. Eventually they will have to bring in more revenue because trimming costs can't increase profits forever.

Stu Schweitzer, global markets strategist at J.P. Morgan's Private Bank in New York, said the lower expenses means companies will be better positioned to reap big earnings when the economy does grow and revenue starts to tick higher.

Economic reports are starting to support traders' bets. The government reported Friday that the economy shrank at a pace of just 1 percent in the second quarter, better than analysts anticipated. In the first three months of the year, the economy shrank at a pace of 6.4 percent, the steepest slide in nearly 30 years.

Despite the improving outlook, the economy still faces significant hurdles. Analysts worry that difficulty for consumers in borrowing, unemployment and a still-weak housing market will choke off growth. Key reports next week on manufacturing, housing, employment and the service industry could also reshape the market's view about where the economy is headed.

``I don't think this is a one-way staircase back up to where we came from. I fully expect potholes along the way,'' Schweitzer said.

On Friday, the Dow rose a modest 17.15, or 0.2 percent, to 9,171.61. The S&P 500 index rose 0.73, or 0.1 percent, to 987.48, while the Nasdaq composite slipped 5.80, or 0.3 percent, to 1,978.50.

For now, companies aren't hemorrhaging money like they were last fall and early this year. Traders began the latest rally July 13 when they rushed to buy stocks ahead of a strong profit report from Goldman Sachs Group Inc. The bank's profit turned out to be huge, and strong report cards since then from companies like AT&T Inc. and microchip producer Intel Corp. confirmed that a range of companies were finding their footing.

Three of four companies in the S&P 500 index have reported results that topped analysts' expectations, according to Thomson Reuters. About 300 of the 500 companies have turned in their reports.

That unexpected bounty has pushed major market indexes to their best levels of the year. On July 23, the Dow rose above 9,000 for the first time since January. The rally pushed the Dow back into the black for the year and it is now up 4.5 percent.

The Nasdaq traded above 2,000 and the S&P 500 index neared the 1,000 mark, a level not seen since November.

``We're on the edge between recovery and speculation,'' said Rick Lake, portfolio manager of Aston/Lake Partners LASSO Alternatives Fund in Greenwich, Conn.

Lake said the market's ability to bounce higher in July even after getting bad news signals that many investors are looking to jump on the rally.

Major stock indexes surged off 12-year lows in early March to rally almost 40 percent by mid-June before stumbling until July's earnings reports restored hopes for a rebound in the economy.

Investors have been putting money into areas that are expected to do well in a recovery. Materials companies in the S&P 500 index rose an average 12 percent for the month. Aluminum maker Alcoa Inc. jumped 13.8 percent.

By comparison, energy company stocks rose only 3.6 percent. Oil posted its first monthly drop since January as stockpiles remain high. Exxon Mobil Corp. edged up only 0.7 percent.

Analysts credit some of the buying to short-covering, in which investors have to buy stock after having earlier sold borrowed shares in a bet they would fall. That can make doubts into short-term buyers and give an artificial lift to stocks.

Investors still have plenty to worry about. The GDP report found that consumers cut spending by 1.2 percent in the second quarter, after a 0.6 percent increase in the first quarter.

The unemployment rate stands at a 26-year high of 9.5 percent, and the Federal Reserve predicts it will top 10 percent by the end of the year.

Unemployment often recovers after the economy starts to but hesitant consumers could make it harder for the economy to grow. In downturns over the past 60 years, the S&P 500 index has hit bottom an average of four months before a recession ended and about nine months before unemployment hit its peak.

In other trading Friday, bond prices rose. The yield on the benchmark 10-year Treasury note fell to 3.48 percent from 3.61 percent late Thursday.

Crude rose $2.51 to settle at $69.45 a barrel.

Three stocks rose for every two that fell on the New York Stock Exchange, where consolidated volume came to 5.5 billion shares compared with 6.1 billion Thursday.

The Russell 2000 index slipped 1.09, or 0.2 percent, to 556.71.

The Dow Jones industrial average closed the week up 78.37, or 0.9 percent, at 9,171.61. The Standard & Poor's 500 index rose 8.22, 0.8 percent, to 987.48. The Nasdaq composite index rose 12.54, or 0.6 percent, to 1,978.50.

The Russell 2000 index, which tracks the performance of small company stocks, rose 8.25, or 1.5 percent, for the week to 556.71.

The Dow Jones U.S. Total Stock Market Index - which measures nearly all U.S.-based companies - ended at 10,147.02, up 85.47, or 0.9 percent, for the week. A year ago, the index was at 12,946.89.

Funeral - Chinese

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RON PAUL : WHAT IS THE FED SO AFRAID OF?

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