Documents/GAO2007/1: Well-being and Financial Security/1.2: Lifelong Learning

1.2: Lifelong Learning

Lifelong Learning to Enhance U.S. Competitiveness

Other Information:

Ensuring that people of all ages have the opportunity to continue to learn throughout their lifetimes has long been regarded as critical to the continued vitality of this democratic society and to its long-term ability to compete in a global marketplace. To this end, the federal government invests more than $89 billion per year in programs that foster the development, education, and skill attainment of children and adults of all ages. These programs include those targeted to the very young, such as child care and early childhood education; those serving primary and secondary school children; and higher education and employment assistance programs that serve working-age adults. The federal government’s involvement in programs and policies that promote lifelong learning is becoming increasingly important in light of recent trends in workforce demographics and changes in the global economy. For example, immigrants, both legal and illegal, are having a profound effect on U.S. schools, businesses, and social service programs. Our nation’s ability to provide this population of children and adults with the English language and academic skills they need to live as U.S. citizens above the poverty line will contribute greatly to our nation’s economic success. Moreover, as the demographics of the workforce change and globalization increases, it will become even more important for Americans to have the flexibility and skills to adapt to the changing economic environment. As a result, it will be critical that the Congress and the federal government have reliable information on how efficiently and effectively federal funds are being used to provide or augment educational and lifelong learning opportunities, particularly among those most in need of help; how well federal programs are achieving their objectives and meeting the needs of the 21st century workforce; and how the management and oversight of these programs can be improved. The federal government has long had a central role not only in funding child care, education, and employment services, but also in shaping national education policy and ensuring that those most in need of help have access to educational and employment opportunities. Federal investment in child care has been growing, in part to support low-income mothers who have entered the workforce after welfare reform. In fiscal year 2005, the federal government invested over $13 billion in early childhood education and care programs for young children. In addition, Americans have placed a high priority on educating their school-age children and preparing them to become self-sufficient adults and productive workers. The federal investment in elementary and secondary education has increased from over $20 billion in fiscal year 2000 to about $37 billion in fiscal year 2005. Beyond providing for basic educational needs, a competitive national economy depends, in part, on effectively preparing workers to compete in the labor force. In fiscal year 2005, the Department of Education invested over $33 billion in vocational education, adult education, and student financial aid. Over the past half century, American demographics and the economy have undergone significant changes, increasing the demand for early childhood education and care as well as a more highly educated and skilled workforce. As labor force participation has increased among women, including mothers of young children, the availability of early childhood education and care has become increasingly important. At the same time, the aging of the American population will put additional demands on the productivity of the working-age population, increasing the demand for a more educated workforce. Researchers warn that unlike in the past when economic growth was fueled in part by increases in the size and skill of America’s workforce, over the next two decades the potential for shortages of skilled workers could present mounting challenges for productivity and economic growth. Since 1940, the share of the nonfarm labor force composed of managers and professionals has increased by more than 50 percent while the share made up of manual production employees, laborers, and craftspeople has fallen by nearly half. A focus on developing and maintaining a flexible, highly skilled workforce will be critical to ensuring our nation’s economic competitiveness. To meet these challenges, discussions of upcoming legislation affecting key education and employment programs emphasize the increased importance of targeting federal resources strategically to achieve desired outcomes and managing these programs efficiently and effectively. For example, as the Congress considers reauthorizing the Head Start program, discussions have centered on provisions to increase coordination between Head Start and other early childhood programs and to increase teacher qualifications, among others. The No Child Left Behind Act of 2001, which is due to be reauthorized in 2007, has focused national attention on increasing accountability for states and school districts to improve achievement for all students while continuing the traditional focus of federal elementary and secondary school programs that provide opportunities for children from disadvantaged families. Helping states to meet these requirements requires a larger role for the Department of Education in providing leadership and oversight. The Higher Education Act, the Adult Education and Family Literacy Act, and the Carl D. Perkins Vocational and Technical Education Act are all due to be reauthorized in the near future. The Congress will be debating several key issues, including the role of federal grant and loan programs in increasing access to higher education, institutional accountability for educational costs and quality, how best to provide for a skilled workforce, and the Department of Education’s management of the federal investment in postsecondary education. Finally, the Congress has also begun work in reauthorizing the Workforce Investment Act of 1998. Some of the issues likely to be addressed include indicators of program performance and funding flexibility. As these examples illustrate, the Congress and the federal government continue to be challenged as they refine the country’s education and employment programs to meet the needs of the 21st century economy.

Indicator(s):