Planning in the Knowledge Economy

MSU Center for Community & Economic Development

Talent

« Data & Indicators

Cultivation, retention and attraction of talent poses a critical challenge to Northern Michigan communities as talented residents are needed to become local entrepreneurs and provide leaders and skilled workers in the knowledge economy.

Talent indicators include seven measures of High School Performance and Higher Education Attainment. High school graduation rates and ACT composite scores were obtained for the over 60 public high schools in the three regions. Data on the number of certificates and degrees conferred by public colleges and universities in or near the three regions, including Northwestern Michigan College (Traverse City), North Central Community College (Petoskey), West Shore Community College (Ludington-Scottville), Alpena Community College (Alpena), Kirtland Community College (Roscommon), Bay Mills Community College (Brimley), and Lake Superior State University (Sault Ste. Marie), was also obtained.

Higher education, as pointed out by the Cherry Commission Report on Higher Education and Economic Growth (Lt. Governor's Commission on Higher Education and Economic Growth, 2004), "fosters the discovery of new ideas that create new goods, services, and whole industries" and builds "dynamic communities where creativity and culture create the quality of place that is critical to attracting (and retaining) knowledge jobs."

Moreover, no factor other than educational attainment has a statistically-significant impact on the expansion of the regional job or wage base, according to the U.S. Department of Commerce Economic Development Administration's 2003 report on Technology Transfer and Commercialization.

Certificates are defined here as 2-4 years, 1-2 years, less than 1 year, post baccalaureate, post-master's, and first-professional certificates. Degrees are defined as Associate's, Bachelor's, Master's, Doctor's, and professional. In addition, data on undergraduate, graduate, and professional student enrollments of northern Michigan residents at the 15 state universities was obtained.

Although formal education and training capacity are extremely important in the knowledge economy, communities should also keep in mind that non-traditional learning avenues can also be created for residents to acquire valuable skills and knowledge. On-the-job training (OJT), for example, can be highly instrumental in providing specialized training to niche industry workers. Innovative mentoring arrangements, high school students taking college courses, and other options can be also used to cultivate, retain, and attract talent to local communities.

Specific talent attributes as identified by a recent Canadian report on science, technology, and innovation include leading-edge research skills; complex problem-solving skills; commitment to lifelong training and updating skills; ability to put new technology to work; leadership and entrepreneurship; ability to bring products, processes, and services to markets; and the ability to engage and cooperate at the international level.

As the regions re-design their EDA-required Comprehensive Economic Development Strategies (CEDS) to better align their priorities with the demands of the global knowledge economy, regional planners and stakeholders may want to evaluate these talent indicators and identify strategies to elevate education performance and attainment. This is an appropriate time to do that.

Talent: High School Performance

To compete successfully in the knowledge economy, a region must have the ability to cultivate a base of high school graduates. Indeed, President Barack Obama took this performance criteria to the next level. In an interview with the New York Times, the President stated "everybody should have at least one year of post-high-school training" while emphasizing "that part of the challenge is making sure that folks are getting in high school what they need as well" (Leonhardt, 2009).

The economic results of educational achievement are dramatic. The national average annual earnings for high school graduates ages 25-34 were $6,000 greater than those without a high school diploma in 2007. High school graduates ages 25-34 earned $29,000 per year (Planty, Kena, & Hannes, 2009).

Nationally, May, 2009 unemployment rates for those without a high school diploma climbed to 15.5% compared to 10.0% for those with high school diplomas and 4.8% for college graduates (Alini & Lahart, 2009).

Public High School Graduation Rates (2007)

Public high school graduation rates are calculated by the Michigan Department of Education based on "tracking individual students from the time they were enrolled as first-time ninth-graders" (Center for Educational Performance and Information, n.d.). This tracking system accounts for students who complete high school in four years, transfer, are held back, or leave school and later return.

Northeast MI1 Northwest MI2 Eastern UP3 Michigan
H. S. Graduation Rate 80.67% 85.67% 75.17% 76.73%
Source: Four-Year Cohort Graduation and Dropout Reports, Michigan Center for Educational Performance and Information (2009).

With both the Northwest and Northeast regions' graduation rates reaching 80% or greater, these regions are competitive with the top rates in the country. Wisconsin has the highest reported rate at 87.5% (just thirteen other states have rates of 80% or better). The Northwest's 86% outperforms the statewide rate by nearly nine percentage points and the Northeast's rate of 80.7% is four percentage points better. The Eastern Upper Peninsula's rate of 75.2% is just one and a half percentage points below the statewide rate.

The regions, even with these commendable rates, may want to consider increasing high school graduation rates as a strategic objective.

ACT Scores (2008)

All 11th-grade public school students in the state are required to take the Michigan Merit Examination that includes the ACT Plus Writing. Only two other states (Colorado and Illinois) require all public high school students to take the ACT. The ACT Plus Writing test is used by many U.S. college admissions offices to evaluate applicants.

ACT Composite Scores (Range: 1-36)
Northeast MI1 Northwest MI2 Eastern UP3 Michigan
ACT Composite Score 18.8 19.5 18.4 18.8
Source: Michigan Merit Examination Data Files, Michigan Office of Educational Assessment and Accountability (2009).

The regions compare well with the overall state ACT scores. Northeast Michigan's ACT composite scores equal the statewide scores and Northwest Michigan's scores exceed the statewide scores. The Eastern Upper Peninsula's scores lagged slightly behind the statewide scores.

ACT Writing Scores (Range: 2-12)
Northeast MI1 Northwest MI2 Eastern UP3 Michigan
ACT Writing Score 6.5 6.6 6.3 6.6
Source: Michigan Merit Examination Data Files, Michigan Office of Educational Assessment and Accountability (2009).

The regions also compare well with the overall state ACT Writing scores. Northwest Michigan's writing scores are equal to the average state score. Northeast Michigan and the Eastern Upper Peninsula lag slightly behind the statewide average, by 0.1 and 0.3, respectively.

Talent: Higher Education Attainment

The knowledge economy relies heavily on a college-educated workforce. Reliance on college-educated workers can only be expected to increase in the future as knowledge and learning skills assume an increasingly greater economic role. The current Administration has set a goal that by 2020 the U.S. will have the highest proportion of college graduates to compete for high-tech, high-wage jobs. Community colleges, universities, and other higher education institutions, then, are an important source and gauge of talent.

The number of students from each region receiving degrees, independent of where they earn those degrees, is an important talent indicator. A key concern, however, is that many students do not return to their home communities after obtaining their college degrees. Those who do return bring critical knowledge skills that can be used to contribute to their regional economies and communities.

Michigan ranked 31st in the nation for the percentage of 25-34 year-olds with a bachelors degree or higher. That is 2 percentage points below the national average (27.1% vs. 29.1%), according to the 2007 U.S. Census Bureau American Community Survey. In the 2000 Census, Michigan ranked 30th in that category. That was 1.5 percentage points below the national average (26.0% vs. 27.5%). This lag in higher education performance challenges the state to ramp up its educational opportunities so that all Michigan residents can attain higher levels of achievement.

It should be noted that comparing the regions' performances to statewide higher education data may be misleading in that the state's performance is below the national average. Michigan ranks in the bottom 25. That is, regional performance levels at or lower than state performance levels put those regions at a disadvantage relative to other areas in the U.S. and the world.

Certificates Conferred in the Regions (2006)

Certificates are conferred for completing programs of up to four years. First-professional certificates, post-baccalaureate, and post-master's are granted by colleges and universities. Certificates for completing vocational training programs typically lack general requirements (e.g., English or Math courses) and take less time to complete. The data reported here includes certificates conferred on students who reside outside the respective regions.

Northeast MI1 Northwest MI2 Eastern UP3 Michigan
Certificates 304 162 56 20,922
Per 1,000 population 2.19 0.55 1.00 2.09
Source: IPEDS Data Center, Integrated Postsecondary Education Data System, National Center for Education Statistics, U.S. Department of Education (2009).

Community and private colleges offering various certificate programs play an important role in Northern Michigan's knowledge economy. Northeast Michigan's level of certificates adjusted for population exceeds the statewide level. The Eastern Upper Peninsula and Northwest Michigan levels of conferred certificates are significantly below the statewide level. Regions may want to further investigate these performance levels to identify specific issues associated with improving these levels that can be addressed through targeted strategies.

College Degrees Conferred in the Regions (2006)

Degrees include Associate's, Bachelor's, Master's, Doctor's, and professional degrees conferred by colleges and universities. As above, this data includes degrees conferred on students who reside outside the respective regions.

Northeast MI1 Northwest MI2 Eastern UP3 Michigan
Degrees 633 1,035 680 103,183
Per 1,000 population 4.57 3.48 12.03 10.31
Source: IPEDS Data Center, Integrated Postsecondary Education Data System, National Center for Education Statistics, U.S. Department of Education (2009).

Neither Northeast nor Northwest Michigan has a four-year state university, which may account for their lower numbers of college degrees conferred per 1,000 compared to the Eastern Upper Peninsula. The Eastern UP, on the other hand, has Lake Superior State University in Sault Ste. Marie. Northeast and Northwest Michigan lag significantly below the statewide level of college degrees conferred while the Eastern UP exceeds it. Given the regions' quality levels of high school performance, regions may want to consider strategies to improve their performance in the conferring of college degrees.

Student Enrollment by Region at Michigan Public Universities

Michigan's 15 public universities report their undergraduate and graduate student enrollments for each county (based on students' home addresses prior to enrollment).

Undergraduate Enrollment in MI Public Universities (2008)
Northeast MI1 Northwest MI2 Eastern UP3 Michigan
Enrollment 2,230 6,247 1,610 234,780
Per 1,000 population 16.10 21.02 28.64 23.47
Source: Office of Institutional Analysis, Grand Valley State University (2009).

The higher Eastern UP undergraduate enrollment corresponds to being the only region of the three that is home to a four-year state university, Lake Superior State University, in Sault Ste. Marie. Northwest Michigan lags slightly; Northeast Michigan lags significantly behind.

Graduate/Professional Enrollment in MI Public Universities (2008)
Northeast MI1 Northwest MI2 Eastern UP3 Michigan
Enrollment 342 1,106 214 55,113
Per 1,000 population 2.47 3.72 3.81 5.51
Source: Office of Institutional Analysis, Grand Valley State University (2009).

All three regions lag behind the statewide level of graduate/professional enrollments in state public universities with Northeast Michigan lagging most seriously.

Figure. Public Universities and Community Colleges in Michigan
Map of Michigan with university and community college locations markered and project regions highlighted.
Public Universities
  1. Michigan Technological University, Houghton
  2. Northern Michigan University, Marquette
  3. Lake Superior State University, Sault Ste. Marie*
  4. Ferris State University, Big Rapids
  5. Central Michigan University, Mt. Pleasant
  6. Saginaw Valley State University, University Center
  7. Grand Valley State University, Allendale
  8. Western Michigan University, Kalamazoo
  9. Michigan State University, East Lansing
  10. University of Michigan-Flint
  11. Oakland University, Rochester
  12. University of Michigan-Ann Arbor
  13. Eastern Michigan University, Ypsilanti
  14. University of Michigan-Dearborn
  15. Wayne State University, Detroit
Community Colleges
  1. Gogebic Community College, Ironwood
  2. Bay De Noc Community College, Escanaba
  3. Bay Mills Community College, Brimley*
  4. North Central Michigan College, Petoskey*
  5. Alpena Community College, Alpena*
  6. Northwestern Michigan College, Traverse City*
  7. Kirtland Community College, Roscommon*
  8. West Shore Community College, Scottville
  9. Saginaw Chippewa Tribal College, Mt. Pleasant
  10. Mid Michigan Community College, Harrison
  11. Delta College, University Center
  12. Muskegon Community College, Muskegon
  13. Grand Rapids Community College, Grand Rapids
  14. Montcalm Community College, Sidney
  15. Mott Community College, Flint
  16. St. Clair Community College, Port Huron
  17. Lansing Community College, Lansing
  18. Lake Michigan College, Benton Harbor
  19. Southwestern Michigan College, Dowagiac
  20. Kalamazoo Valley Community College, Kalamazoo
  21. Glen Oaks Community College, Centreville
  22. Kellogg Community College, Battle Creek
  23. Jackson Community College, Jackson
  24. Washtenaw Community College, Ann Arbor
  25. Schoolcraft College, Livonia
  26. Oakland Community College, Bloomfield Hills
  27. Macomb Community College, Warren
  28. Henry Ford Community College, Dearborn
  29. Wayne County Community College, Detroit
  30. Monroe County Community College, Monroe
Other
  1. University Center at Gaylord & Kirtland Community College M-TEC*

Note: Asterisks (*) indicate sites in regions.

Source: OnTheMap 3, Longitudinal Employer-Household Dynamics, U.S. Census Bureau (2009).

Definitions

  1. Northeast Michigan corresponds to the Northeast Michigan Council of Governments (NEMCOG) region of eight counties in the Lower Peninsula: Alcona, Alpena, Cheboygan, Crawford, Montmorency, Oscoda, Otsego, and Presque Isle.
  2. Northwest Michigan corresponds to the Northwest Michigan Council of Governments (NWMCOG) region of ten counties in the Lower Peninsula: Antrim, Benzie, Charlevoix, Emmet, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee, and Wexford.
  3. The Eastern Upper Peninsula corresponds to the Eastern Upper Peninsula Regional Planning and Development Commission (EUPRPDC) region of three counties: Chippewa, Luce, and Mackinac.