Infrastructure
News
2/16/2005
11:10 AM
50%
50%

Fed Chairman: U.S. Workforce Needs To Develop Skills To Compete Globally

The supply of highly skilled workers hasn't kept up with a demand for such skills, Greenspan tells Senate panel.

Testifying before a Senate panel Wednesday, Federal Reserve Board chairman Alan Greenspan said the United States faces a critical, long-running economic challenge to ensure that its workforce is equipped with skills to compete effectively in an environment of rapid technological progress and global competition.

"Technological advance is continually altering the shape, nature, and complexity of our economic processes," Greenspan told the Senate Committee on Banking, Housing, and Urban Affairs in prepared testimony. "But technology and, more recently, competition from abroad have grown to a point at which demand for the least-skilled workers in the United States and other developed countries is diminishing, placing downward pressure on their wages. These workers will need to acquire the skills required to compete effectively for the new jobs that our economy will create."

Over the past two decades, Greenspan said, the supply of highly skilled workers has failed to keep up with a persistent rise in the demand for such skills. At the same time, demand for lesser-skilled workers has declined, he said.

"The failure of our society to enhance the skills of a significant segment of our workforce has left a disproportionate share with lesser skills," he said. "The effect, of course, is to widen the wage gap between the skilled and the lesser skilled."

Comment  | 
Print  | 
More Insights
2014 Next-Gen WAN Survey
2014 Next-Gen WAN Survey
While 68% say demand for WAN bandwidth will increase, just 15% are in the process of bringing new services or more capacity online now. For 26%, cost is the problem. Enter vendors from Aryaka to Cisco to Pertino, all looking to use cloud to transform how IT delivers wide-area connectivity.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Nov. 10, 2014
Just 30% of respondents to our new survey say their companies are very or extremely effective at identifying critical data and analyzing it to make decisions, down from 42% in 2013. What gives?
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 9, 2014.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.