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Workforce Florida Weekly Update 6-14-06

CONTENTS
The State & Regions
The Nation
Grant and Competitive Award Opportunities
Upcoming Meetings, Conferences & Events
Odds & Ends

The State & Regions

Manpower Employment Outlook Survey released – Florida employers anticipate strong hiring pace. From July to September, 41% of the Florida companies interviewed plan to hire more employees, while 5% expect to reduce their payrolls resulting in a net increase of 36% companies who plan to hire new staff. Another 45% expect to maintain their current staff levels, while 9% are undecided about their July – September hiring plans. Top five areas with the highest percentage net increases in employers’ intent to hire: Broward County (60%); Pensacola (60%); St. Johns County (60%); Jacksonville (53%); and Melbourne (50%). The areas with the lowest net increases are Gainesville (3%), Stuart (14%) and Miami (15%). According to the national seasonally adjusted results of the Manpower Employment Outlook Survey, U.S. employers still won’t budge on hiring plans for the third quarter of 2006. Of the 16,000 U.S. employers surveyed, 31% expect to add to their payrolls during the third quarter of 2006, while 6% expect to reduce staff levels. Fifty-seven percent expect no change in the hiring pace, while 6% are undecided about their July – September hiring plans. (The Manpower Employment Outlook Survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. The complete results of the national Manpower Employment Outlook Survey can be found in the Press Room of our Web site at www.manpower.com. There you will also see the survey findings from 24 other countries and territories around the world.

Nearly 100K “Citizen Soldiers” are currently on active duty – the workforce community must respond to their needs when they come home. Nearly 100K “Citizen Soldiers” are currently on active duty – the workforce community must respond to their needs when they come home. The total number of mobilized National Guard and Reserve personnel has reached 98,974 including both units and individual augmentees. Currently on active duty in support of the partial mobilization for the Army National Guard and Army Reserve is 79,715; Navy Reserve, 4,973; Air National Guard and Air Force Reserve, 7,234; Marine Corps Reserve, 6,685; and the Coast Guard Reserve, 367. Mike Switzer, WFI suggests the following opportunities for the workforce system to respond to the needs of our returning soldier’s:
- Assuming most of these Guards and Reservists were employed before mobilization, we can expect most to return to prior jobs without big problems……but some may encounter resistance and need to be advised of their re-employment rights under the Uniformed Services Employment and Re-Employment Act (USERRA) and told how to apply for assistance in reinstatement.
- Before and after deployment, many of the spouses will need job training, placement and skills upgrade assistance.
- Some returning will be unemployed or interested in finding a better job, through WIA/workforce training, OJT, resume help, individualized LMI, job search classes/coaching, etc.
- Some may be interested in getting a start in the booming construction industry, and would be ideal candidates for Florida reBuilds.
- Some may have demand skills acquired through military training/experience, such as in engineer, support or civil affairs units engaged in rebuilding efforts in Iraq or Afghanistan---and they could be directly referring to construction companies with minimal or no “entry-level” training.
- Some may be interested in more cerebral work and would be ideal candidates for several “Troops to Teachers” models such as the one administered by Florida Department of Education or the one being developed by the University of West Florida for injured vets (particularly if they use a broadly inclusive standard such as a minimum 30% VA/DOD disability rating.)
- Some of the most severely injured will need services provided in collaboration with the VA VR & E program and the newer “Real LifeIines” program. And even if the vets are totally and permanently disabled, there may be part-time work they can do with accommodations, and/or their spouses or other family members need workforce help.
- The state-level and local Vets workforce services websites being advocated by Mason Jackson will be an increasingly valuable tool in reaching and serving today’s generation of released military, many of whom kept in touch with family via the internet when overseas. Also as we get that system up and running, we need to notify the local guard and reserve units to let family members know about it both for their personal use and in order to have them tell their active duty spouses/children even before discharge.
- Some may need additional non-workforce help and supports, and we are in an ideal situation in the One-Stops to refer them authoritatively and accurately to local partners as well as national organizations, such as “Honoring America’s Heroes.”
- And recall we are about to negotiate performance targets for all vets and disabled vets for the Program Year beginning 7/1/06. And here are 100K customers that will need our services, and can make us look good----or not… based on how well we serve them creating a win-win dynamic.
Mike Switzer, VP, Programs and Performance at Workforce Florida, Inc. can be reached at: mswitzer@workforceflorida.com.

Mike Switzer, WFI, succeeds Susan Pareigis on the Governor’s Ex-Offender Task Force. TALLAHASSEE – Governor Jeb Bush today announced the following appointments:
• Michael M. Switzer, 62, of Tallahassee, vice president of performance and programs with Workforce Florida Inc., to succeed Susan Pareigis, for a term beginning June 14, 2006 and ending January 1, 2007.
• Diamond R. Litty, 49, of Port St. Lucie, public defender of the Nineteenth Judicial Circuit, to succeed T. Edward Austin, for a term beginning June 14, 2006 and ending January 1, 2007.
• James L. Williams, 71, of Jacksonville, chairman of Allstate Electrical Contractors, Inc., to succeed Jose Boscan, for a term beginning June 14, 2006 and ending January 1, 2007.

Latest LMS’ Labor Market Trends monthly newsletter available. This month features an article on manufacturing, comparing Florida to the US and an introduction to the Census Bureau’s On The Map, a web-based, interactive mapping application. The application shows where people work and where workers live on maps with companion reports on their age, earnings, and industry distributions. Download LMS’ Labor Market Trends and their other publications at: http://www.labormarketinfo.com/pubs/

Polk Works names Tom Hornack Interim Executive Director. Bartow, FL (June 13, 2006) – The Executive Committee of the Polk Works Board of Directors, upon recommendation by Executive Director Nancy Thompson, has appointed Assistant Director Tom Hornack to serve as Interim Executive Director. Mr. Hornack has been working in workforce development since 1982 and started with Polk Works on July 1, 1996, when the organization began. Ms. Thompson announced her resignation June 1 to become Vice President of Florida Operations for Arbor Education & Training, LLC. Regretfully, the Executive Committee accepted Ms. Thompson’s resignation, concurring, “This is a positive career move for Nancy and we believe Tom is the best person to guide Polk Works through the transition process." The Board also authorized procurement for an executive search firm. Prior to Polk Works beginning contract negotiations with Arbor for Program Year 06-07, Ms. Thompson removed herself from the contracting process. Polk Works is the Regional Workforce Development Board for Polk County to oversee federal and state funds dedicated to preparing and upgrading a skilled workforce. Workforce development services are available through a variety of programs, including the Polk Works One-Stop Center System, Young Leaders, WorkForce 2020 and REACT.

The Nation

CQ Today Midday Update - WEDNESDAY, JUNE 14, 2006 – 2:10 P.M
House:
Continues work on the Transportation-Treasury-Housing spending bill (HR 5576).
Senate: Resumes consideration of the conference report on the emergency supplemental spending bill (HR 4939) and the fiscal 2007 defense authorization bill (S 2766).
The President: Met with Colombian President Alvaro Uribe and later met with members of the Iraq Study Group.
Headlines:

  • Budget Hawks Seek Cuts in Transportation-Treasury-Housing Spending
  • Hastert Backs Off From Immigration Hearing Plan
  • Commerce-Justice-Science Bill Moves Through Subcommittee
  • Foreign Investment Overhaul Gains House Panel Approval
  • Democrats Prepare for Formal Debate on Jefferson
    See the complete stories at: www.cQ.com

House Subcommittee Approves Labor Spending Bill. The House Labor, Health and Human Services and Education Appropriations Subcommittee last week approved on a party-line vote (9-7) the spending bill that would fund the workforce system in FY 2007. The bill is scheduled for consideration by the House Appropriations Committee on June 13 and is likely to be approved. Upon approval by the House Appropriations Committee the bill would be ready for consideration on the House floor. The Senate has not yet begun consideration of the FY 2007 spending bill for workforce programs. Overall, the House approved FY 2007 spending bill would cut the Employment and Training Administration's (ETA) budget for FY 2007 by $409 million compared to the FY 2006 level. The bill would cut the Workforce Investment Act (WIA) Adult program by $10 million, the WIA Youth program by $5 million and the WIA Dislocated Worker program by $121 million. NASWA is investigating how the $121 million reduction to the WIA Dislocated Worker program would be applied to state grants. The Unemployment Insurance (UI) state operations appropriation would increase by $142 million. Approximately $102 million of this amount was requested by the ETA to manage additional UI operational activity projected from the increase in number of employers and workers. The remaining $40 million was requested by the Administration to continue face-to-face beneficiary eligibility reviews and proposals to improve integrity. The Employment Service (ES) program would be cut by $27 million under the House spending bill. This reduction was requested by the Administration. The One-Stop Career Centers/Labor Market Information program would be cut by $42 million for the largest cut as a percentage of the overall program budget of any workforce program. This program would effectively be cut by half if the numbers approved by the House Subcommittee are approved by the Congress for a FY 2007 appropriation totaling $40 million. Appropriations for state administration of Veterans' Employment and Training Service (VETS) programs would be flat-funded at $162 million. Additional information on the House Subcommittee's approved spending bill and appropriations will be available on the Workforce ATM and the Bulletin over the coming week. Questions regarding this information should be directed to Curt Harris, NASWA Congressional and Intergovernmental Affairs Director at 202.434.8020. Download the House Appropriations Comparison Chart at: http://www.workforceatm.org/sections/pdf/2006/LH_Detail_SCWEB.pdf.

USDA provides $75.7 million in Emergency Conservation Program (ECP) aid for 2005 hurricane victims. Agriculture Secretary Mike Johanns last week announced the availability of $75.7 million Emergency Conservation Program (ECP) funds for newly authorized practices to help landowners and operators address 2005 hurricane damages. "These Emergency Conservation Program funds will help farmers, forest owners, nursery and poultry producers rehabilitate operations damaged by last year's devastating hurricanes," said Johanns. "This is one of the many programs USDA is administering as part of our commitment to help farmers and ranchers and rural communities to recover." The new ECP funds and practices are authorized by the 2006 Emergency Appropriations Act, signed by President Bush on Dec. 30, 2005, which provides $900 million to address natural disaster damages from 2005 hurricanes. Of these funds, approximately $400 million is designated for the Emergency Forestry Conservation Reserve Program, $200 million for the Emergency Conservation Program and $300 million for the Emergency Watershed Protection Program. Generally, ECP provides assistance for producers to rehabilitate farmland and conservation practices damaged by natural disasters, including hurricanes. In addition, the Farm Service Agency (FSA) will offer cost-share assistance for new practices to remove debris from and replant damaged forestland, clean up nursery structures including shadehouses and above-ground irrigation systems and rebuild poultry structures. Producers can sign up for ECP at their local FSA office. To be eligible, producers must have suffered losses in a county that received a primary presidential or secretarial disaster designation due to calendar year 2005 hurricanes and approved for ECP. ECP assistance is unavailable for contiguous counties. A list of the eligible counties, located in Alabama, Florida, Louisiana, Mississippi, North Carolina and Texas, is available online at: http://www.fsa.usda.gov/pas/publications/facts/html/hurrcounties06.htm. Since the devastating 2005 hurricane season, USDA has invested $96 million in ECP funds into the states most affected by these storms to rehabilitate damaged cropland, including removing debris, grading and shaping, rebuilding fences and restoring conservation practices. ECP provides cost-share assistance up to 75 percent. However, producers may receive up to 100 percent cost-share assistance for these activities for damages caused by Hurricanes Katrina and Rita only. Producers who suffered a minimum of 35 percent loss of their private commercial forest may be eligible to receive assistance to remove timber debris and replant their forest. FSA will provide $31.8 million for forest restoration work. Producers will be eligible to receive up to 75 percent of the cost associated with debris removal and forest planting, up to a maximum of $150 per acre. FSA will assure that duplicate payments are not made to producers for the same practices under different federal programs such as the Emergency Forestry Conservation Reserve Program and the Emergency Watershed Program. Many nursery operations were also damaged or destroyed by the storms. FSA will offer $30.6 million to remove debris in nurseries, including shadehouses and above-ground irrigation structures, and poultry house structures. FSA may provide up to 90 percent of the eligible costs for debris removal. The hurricanes also affected the poultry industry. FSA will offer $13.2 million in assistance. Producers can receive assistance on some non-insured damages to their poultry houses. The total federal assistance plus private insurance payment is limited to 90 percent of the replacement value for a similar structure. Subject to that limit, cost-share assistance will be the lesser of 50 percent of the eligible cost of reconstruction / repair or $50,000 per poultry house. These funds will help producers rebuild their operations. Producers will be required to rebuild to current building code requirements. The 2006 Emergency Appropriations Act also provided funding for the rehabilitation of oyster beds. Details on the distribution of those funds are still being developed and will be announced soon. The maximum ECP payment is $200,000 per person, per disaster. More information on ECP is available at local FSA offices and online at: http://disaster.fsa.usda.gov/fsa.asp. Additional information on USDA Hurricane assistance is available at http://www.usda.gov/HurricaneInfo.xml.

NASWA’s Workforce Bulletin - June 9, 2006 HEADLINES:

  • HOUSE SUBCOMMITTEE APPROVED SPENDING BILL WOULD CUT MOST WORKFORCE PROGRAM FUNDING IN FY 2007
  • NEW LEGISLATION ADDS NASWA AS MEMBER OF ADVISORY COMMITTEE FOR VETERANS SERVICES
  • USDOL ANNOUNCES AVAILABILITY OF GRANTS TO ASSIST HOMELESS VETERANS
  • AGRICULTURE DEPARTMENT PUBLISHES FINAL RULE ON FOOD STAMP PROVISIONS
  • NOMINATIONS FOR NASWA AWARDS DUE JULY 7

Access the complete articles at: http://www.workforceatm.org/sections/members/bulletin/
bulltemp.cfm?results_art_filename=bu060906.cfm
.

Grant and Competitive Award Opportunities and Notices

For additional information go to, visit the External Grant Opportunities page.

Featured Opportunity:

Workforce Florida’s First Jobs/First Wages Council has issued a grant solicitation titled ‘Replication of the CHOICE Career Institute’. Only Regional Workforce Boards are eligible to apply. The purpose of this Grant Solicitation is to seek applications for projects that replicate the Community High Okaloosa Institutes for Career Education (CHOICE) developed and implemented by the Okaloosa County School District in school year 2003-04. This is Phase II of CHOICE replication which was started under a similar grant solicitation issued in November 2004. Submissions are due July 25, 2006; 5:00 PM, Eastern For more information go to: http://www.workforceflorida.com/wages/wfi/rfp/index.htm#grant.

State Grants

(none)

Federal Grants

High Growth Job Training Initiative Grants for the Advanced Manufacturing Industry (REPEAT)

Transportation Planning/Investment Operations Effects on Minority and Low-Income Populations Research and Demo Projects

Strategies to Promote Employment in Transit Construction Projects by Members of Minority and Low-income Communities (Repeat)

Rural Access to Emergency Devices

Rural Domestic Violence Pilot Program

National Technical Assistance Program

Small Minority Producer Grant

National Quality Improvement Center on Non-Resident Fathers

Partnerships for Innovation (PFI) (Repeat)

Community Services Block Grant Training and Technical Assistance Program: Special State Technical Assistance

Demonstration Projects in Post-Adoption Services and Marriage Education

Homeless Veteran Reintegration 2006 Stand Down Grants (Repeat)

Foundation Grants

WHO Foundation Grants

YSA Youth Venture Funding

American Legion Child Welfare Foundation Grants

Scholarships/Awards

(none)

Upcoming Meetings, Conferences and Events

Workforce Florida Board and Related Meetings Schedule:

For up-to-date WFI board meeting info please check the calendar at the WFI website.

June 21, 2006
Council Chairs Teleconference 9:00am – 10:00am
Executive Committee Teleconference 10:00am – 11:30am
Contact Peggy Dransfield at: pdransfield@workforceflorida.com

June 25-27, 2006
FEDC/WFI First Annual Summit for Leadership - “ED + WD = Formulas for Success”
Orlando, FL

“ ED + WD = Formulas for Success”, will be held June 25-27, 2006 at the Renaissance Orlando Resort at SeaWorld. This summit will bring together the state's top economic development and workforce development professionals and leaders for the purpose of networking and sharing strategies and best practices for attracting and developing world-class talent to enhance Florida's innovation economy and global competitiveness. Invited participants from the workforce development community include Workforce Florida Board Members; Regional Workforce Board Chairmen and Regional Workforce Board Executive Directors. For more information contact: Andra Cornelius, WFI at: acornelius@workforceflorida.com.

July 19, 2006
Council Chairs Teleconference 9:00am – 10:00am
Executive Committee Teleconference 10:00am – 11:30am
Contact Peggy Dransfield at: pdransfield@workforceflorida.com

August 23, 2006
Executive Directors Meeting (Partners Meeting)

1:00pm – 4:00pm
Hyatt Regency Jacksonville – Riverfront Hotel
Contact Peggy Dransfield at: pdransfield@workforceflorida.com

August 24, 2006
Council & Committee Meetings

10:00am – 12:00pm
Hyatt Regency Jacksonville – Riverfront Hotel
Contact Peggy Dransfield at: pdransfield@workforceflorida.com

August 24, 2006
Board of Directors Meeting

1:00pm – 4:00pm
Hyatt Regency Jacksonville – Riverfront Hotel
Contact Peggy Dransfield at: pdransfield@workforceflorida.com

Other Meetings/Conferences/Events:

June 15, 2006
Winning the Global Competition Summit
Sandestin Baytowne Wharf Conference Center
“Winning the Global Competition” features Ed Barlow, renowned speaker and futurist; Don Gaetz, Superintendent, Okaloosa County Schools; Lt. Governor Toni Jennings; Curtis Austin, President, Workforce Florida; Dr. Rick Harper, Director, Haas Center, University of West Florida; and Mark Howard, Florida Trend magazine. This event is presented by the Workforce Development Board of Okaloosa and Walton Counties in conjunction with the June 14, 15, 16, 2006 CHOICE Replication Workshop. Registration fee for the one-day summit only is $75. Registration for the three day CHOICE Replication Workshop is $150. Limited seats available so visit www.jobsplusonestop.com for more information and registration options for both the Summit and the CHOICE Replication Workshop.

June 15, 2006
Webinar - Driving the Local Economy: The Chicagoland Experience
Time: 11:00am EST (10am/Central, 9am/Mountain, 8am/Pacific) Length: 75 min.
NEW!
The American Association of Community Colleges (AACC) in partnership with the U.S. Department of Labor's Employment and Training Administration is proud to present a webinar series on the role of community colleges in workforce and economic development. This webinar will describe how nine Workforce Investment Boards (WIBs), sixteen community colleges, and local employers in the Chicago metropolitan region collaborated to devise and coordinate strategies to meet current and projected demands for qualified workers in critical regional industries. Learn how these groups collectively developed industry and cross-career awareness plans and lattice opportunities for area employees. Discover the initiatives that included career pathway models with bridge program components; online, accelerated, evening and/or weekend education; group classes; and student retention practices. Find out how the boundaries were expanded to develop a regional approach across multiple sectors. Presenters: Linda Kaiser, Executive Director, Chicago Workforce Board, IL and Dr. Bill McMillan, Assistant Vice Chancellor, Workforce Development, City Colleges of Chicago, IL. Moderator: Dr. James McKenney, V.P., Economic Development and International Programs, A.A.C.C., Washington, D.C. The metropolitan region of Chicago is unique in that it is not overly dependent on any one sector, unlike regions historically dependant on sectors such as manufacturing, tourism, high technology, telecommunications, or finance. In June 2003, Moody's Investors Services, Inc., the bond rating agency, named Chicago's regional economy as number one in business-sector diversity, and concluded that Chicago's economy is most like the nation's in that it does not rely heavily on a single industry. Despite the diversity of its industries, Chicago's metropolitan region faces a critical juncture in the development of a skilled workforce. Registration for this Webinar is limited and seating is on a first-come, first-served basis. Click the link below to login to Workforce3 One and register. http://www.workforce3one.org/public/skillbuilding/webinar_info.cfm?id=105.

July 11-13, 2006
Workforce Innovations
Anaheim, California
Co-sponsored by the U.S. Department of Labor/Employment and Training Administration and the American Society for Training and Development, Workforce Innovations 2006 is one conference you do not want to miss. The conference is shaping up to be the biggest and best Workforce Innovations yet, with more than 3,000 participants expected.
Already confirmed conference highlights include:

  • A keynote address by respected author and PBS host, James Burke, on his interpretation of global economic realities and what we can do to "Innovate for the Day After Tomorrow."
  • An educational tour to the Tiger Woods Learning Center, a brand new facility providing youth from diverse backgrounds with opportunities for career orientation, career exploration and career preparation.
  • Tools and strategies to support you in regional economic development efforts, whether your community is just starting this process or is well underway.
  • Dozens of dynamic Super Workshops, Learning Labs, Roundtable Discussions, and "Quick Takes" on cutting edge issues for workforce professionals and their partners from economic development, education, community colleges, and industry.

Watch the Conference website for further program updates and to register at: http://www.workforceinnovations.org/.

August 21 –August 23, 2006
Florida Coalition for the Homeless 11th Annual Statewide Conference
Tampa, FL
The Florida Coalition for the Homeless 11th Annual Statewide Conference is moving. In order to increase our participation and maintain the many events and activities of the Conference, we have chosen to move the Conference to the Double Tree WestShore in Tampa. This move does not change the cost of registration or attendee room cost. We hope you can still join us for this exciting and informative annual event and apologize for any inconvenience this may have caused.
Conference Registration Fee: $250.00 before July 1st after July 1st $275.00
Daily Fee: 100.00
Hotel Fee: $99.00 per night.
You can book your hotel reservations now: Double Tree, Tampa Westshore: 1.800.222.8733
We are working diligently to finalize the agenda for the conference and we are lining up some great speakers and fun activities for this networking opportunity. The National Health Care for the Homeless will be providing two full days of training sessions. The Homeless Liaisons from the state will have a track for youth in school districts. We are working with several state agencies to provide some much needed training on workforce and health issues. We look forward to seeing you in Tampa! If you have any questions please do not hesitate to contact our offices for more details. For more information on this conference contact Barbara Finnegan at: (813) 223-6115 or barbara@homelessofhc.org. Visit the website at: http://www.flacoalitionhomeless.com/.

Nov. 30 - Dec. 2, 2006
2006 ACTE Convention and Career Tech Expo
Connecting Education and Careers:
Georgia World Congress Center, Atlanta, Georgia
Atlanta is gearing up for a great professional development experience. At the end of November, more than 5,000 career and technical educators will travel to the PeachPico Collection State to participate in the only professional development event dedicated to the entire career and technical education (CTE) field. From November 30 to December 2, career and technical educators will have their choice of workshops, seminars and sessions on a wide variety of CTE topics. Register today and you can get the best rates, your choice of hotel options, and first choice on the pre-Convention workshop. All of the information you need is located in the right-hand navigation bar. So, take some time, take a look, and then make the choice to join your colleagues in Atlanta. For more information and to register visit: www.acteonline.org.

USDOL’s Workforce Tools of the Trade Workforce Investment Systemwide Events Page. http://www.workforcetools.org/calendar.asp

Odds and Ends

The latest Update on the National Work Readiness Credential (NWRC) is available online.
The National Work Readiness Credential (NWRC) project moves closer to its launch date, as the partners and technical team put the final pieces in place. The updates provide more information about the milestones achieved since the last update in March – and what users have to look forward to in the months ahead. Headlines include:
Getting Ready for the Soft Launch
Increasing Interest in the Concept of Work Readiness
Policy Council Sets Final Form of NWRC
Dollar General Literacy Foundation Awards $160,000 Grant
National Work Readiness Council Begins Search for Executive Director

The June 6 Update is available on the WFI website at: http://www.workforceflorida.com/wages/wfi/news/docs/
NWRC_June_Update_060613_FINAL.pdf
.

How Important Is the "Service Sector Effect" on Productivity? (by Jim Heskett HBSWK Pub. Date: May 29, 2006.) In the cost-driven U.S. service economy, are worker benefits being sacrificed in the name of lower-cost services to customers? Are these social costs more than offset by the benefits of job creation, the consumption stimulus that spurs job creation, and lower unemployment? One can make the argument that a small group of organizations like the Vanguard Group, Southwest Airlines, and Wal-Mart (in the U.S.) have had a profound impact on the way we live and work. They share several things in common: (1) a penchant for driving down costs in their respective industries, (2) a focus on serving customers, and (3) policies and competencies that have literally changed the rules of the game for their respective industries worldwide. In spite of recent adverse publicity regarding Wal-Mart's personnel practices, all of these organizations have made their places of work so attractive that their employees may work harder over longer hours than they otherwise might. Whether this leads to a higher standard of living than that of their European counterparts is debatable. But there is growing evidence that providing pleasant work environments, aided to some degree by new technology, has spearheaded the continued high rate of improvement in productivity in the U.S. in recent years. In fact, a recent report by the McKinsey Global Institute has found that five of the top seven industries that have led productivity growth in the period of 2000 to 2003 are service industries like retailing and financial services. Increasing productivity in the service sector has been accompanied by increasing employment, a phenomenon somewhat at odds with experience in the glory days of manufacturing. Thanks in part to new technology, service sector workers work smarter. But they are working just as many hours as before. Perhaps lower-paying jobs force people to work more hours to sustain a certain lifestyle. But it may also be that more customers (including workers who need more services if they are to maintain their "work style") want and are able to afford the services these workers deliver. Whatever it is, Americans continue to work long hours at a time when people in some other countries increasingly stand by watching them do it. Read the rest of this article at: http://hbswk.hbs.edu/item.jhtml?id=5362&t=heskett&oid=5362&rid=5374&hid=-1&aid=-1.
Read how readers responded to Jim Heskett’s article “How Important Is the "Service Sector Effect" on Productivity?” at: http://hbswk.hbs.edu/item.jhtml?id=5374&t=heskett&oid=5362&rid=5374&hid=-1&aid=-1

Kauffman Foundation Study on Entrepreneurial Activity Shows Entrepreneurs Increasingly Foreign-Born and Getting Grayer. (KANSAS CITY, Mo.), May 23, 2006 - Immigrants far outpaced native-born Americans in entrepreneurial activity last year while African Americans were the only major ethnic or racial group to experience a year-to-year increase in the rate of entrepreneurship, according to a national assessment of entrepreneurial activity by the Ewing Marion Kauffman Foundation. The rate of entrepreneurial activity for immigrants in 2005 was 0.35 percent compared to 0.28 percent for native-born Americans, according to the Kauffman Index of Entrepreneurial Activity. In other words, approximately 350 out of 100,000 immigrants started a business per month in 2005 compared to 280 out of 100,000 native-born Americans. These rates represent approximately 85,000 immigrants creating new businesses per month and 379,000 native-born individuals creating new businesses per month. While annual government statistics indicate that approximately ten percent of the U.S. workforce owns a business, the Kauffman Index illustrates the number of people starting new businesses each month. With 0.29 percent of the total adult population starting new businesses per month, there was an average of approximately 464,000 people creating new businesses each month in 2005. This rate represents a slight decline from the 470,000 people creating new businesses per month in 2004. For more information and to download a copy of the report go to: http://www.kauffman.org/items.cfm?itemID=703.

“The New South: Lofts, Lattes in Mayberry” (From Southern Compass, June 13th). A recent article in the Atlanta Journal-Constitution characterizes the “small-town Now South” as “a wireless, latte-fueled, even hip update on places etched in Old South traditions.” It tells the stories of communities such as Greenville, South Carolina, where downtown condos and microbrew restaurants have sprouted in recent years, Greenwood, Mississippi, where visitors are lured by an upscale cooking school and boutique hotel, and Mount Airy, North Carolina, where a tobacco warehouse is being converted into apartments. It’s not just upscale singles, but also empty nesters and former city-dwellers or who are fueling these trends, they observe. Read, “The New South: Lofts, Lattes in Mayberry,” at: http://www.ajc.com/today/content/epaper/editions/today/news_449734fe2506a16b00ea.html

Quote for the Week:

“To know the way ahead, ask those coming back.

Chinese proverb