1

Economic Development Essentials

June 12, 2012

2

Oklahoma’s Public Colleges and

Universities are Moving Forward…

3

We must assemble the We must assemble the tools and resources tools and resources

needed to build a needed to build a stronger economy….stronger economy….

Young adults in America today are expected to finish their formal

education with fewer college credits than their parent’s generation

6

“The cornerstone of our success in America has been the opportunity for the next

generation to be better educated than the previous

generation.”

In The Global Economy of the In The Global Economy of the 2121stst Century, 90 Percent of the Century, 90 Percent of the

Fastest-Growing Jobs Will Fastest-Growing Jobs Will Require a Higher Education.Require a Higher Education.

In The Global Economy of the In The Global Economy of the 2121stst Century, 90 Percent of the Century, 90 Percent of the

Fastest-Growing Jobs Will Fastest-Growing Jobs Will Require a Higher Education.Require a Higher Education.

2

If Oklahoma is going to remain economically competitive, we must

have the best educated and productive workforce

that we can assemble.

Nationally, more than one-quarter (27.9 percent) of adults 25 and older

have a bachelor’s degree or more, compared to Oklahoma at 22.7

percent.

State Per Capita Personal Income v. Share of AdultPopulation with Bachelor's Degree or Higher

No state with a low proportion of Bachelor’s

degrees has a high per capita income.

No state with a high proportion of Bachelor’s

degrees has a low per capita income.

States with high proportion of bachelors degrees

States with low proportion of bachelors degrees

Outlier state that has high income and low degree attainment

PROFESSIONAL DEGREE

DOCTORATEDEGREE

MASTER’SDEGREE

BACHELOR’SDEGREE

ASSOCIATEDEGREE

SOME COLLEGENO DEGREE

HIGH SCHOOL GRADUATE

LESS THAN HIGH SCHOOL

0 20 40 60 80 100 120 140 16005%10%15%

ANNUAL SALARIES IN 2009

UNEMPLOYMENT RATE IN 2010

$146,659

$116,305

$87,913

$68,812

$49,835

$47,484

$39,937

$30,958

2.4

1.9

4.0

5.4

7.0

9.2

10.3

Source: Bureau of the Census; Bureau of Labor Statistics

14.911

3,798,9405,254,193Professional degree

2,527,3243,982,577Doctorate

1,507,8232,963,076Master's degree

$1,111,921$2,567,174Bachelor's degree

346,1201,801,373Associate degree

270,5691,725,822Some college, no degree

01,455,253High school graduate

-304,5551,150,698High school dropout

-$478,903$976,350Less than 9th grade

DifferenceCompared to

High School Graduate

EstimatedLifetimeEarnings

Education Level

The Impact of Education on Individuals:Lifetime Earnings

U.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAUU.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAUU.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAUU.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAU 12

2008-09

Percent of Oklahoma Residents Who Graduate with a Bachelor’s Degree Remain In the State and

are Employed In the State One Year After Graduation

Employment Outcomes After One Year

Source: 2011 Employment Outcomes Report

89%Remain in the

State

13

Link Academic Programs to the needs of Business

•Healthcare, Allied Health and Nursing•Engineering•Aviation •Wind Turbine Technologies

15

Nationally, Oklahoma is Ranked:

•8th in Higher Education Efficiency

•8th in College Affordability

•16th in STEM Job Growth

Source: “Enterprising States” – A Project of the US Chamber of Commerce and the National Chamber Foundation

FallinForBusiness.com

Perceptions of Oklahoma’s Business Climate

“The Quality of our two/four year college and university system”

#1 Business Climate Strength in the State

16

17

FallinForBusiness.com

Highest Ranked Business Climate Factors

Quality of 2/4 yearCollege/University

system

Access to supplies

required to conduct business

Career-TechSystem

Preparationfor the

workplace

Affordable housing options

for employees

Recreationalopportunities

Perceptions of Oklahoma’s Business Climate

• Increase Degrees and Certificates by 1,700 per year.

• Increase Degrees Earned from 30,500 in 2011 to 50,900 in 2023.

• 67% Increase by 2023 18

• For every state appropriated dollar spent on higher education in Oklahoma an additional $5.15 is pumped into the Oklahoma economy.

• The Oklahoma’s system of higher education will produce over $3.2 billion in growth in the state’s gross domestic product;

• Higher Education’s capital and construction spending are expected to add 23,750 jobs to the Oklahoma economy;

• By the end of the next decade, Oklahoma’s gross state product (GSP) will increase by $26.292 billion through higher education’s continued contribution to the economy;

20

Economic Development Essentials

June 12, 2012