The survey of 500 senior executives found that the majority feel there is a significant skills gap in the US workforce. However, the gap is seen as primarily lacking soft skills like communication rather than technical or computer skills. Manufacturing and technology industries are seen as most affected. The skills gap poses threats to businesses from lost growth and investment abroad rather than being a major threat to the overall economy. Senior executives believe the skills gap stems more from deficiencies in the education system rather than lack of worker interest, and that training programs could help but are costly to develop. High labor costs in the US are also viewed as a challenge for expanding foreign companies.

1. State of the Economy and Employment
September 16, 2013

2. SURVEY BACKGROUND
Slide 2

3. Methodology & Background
• Adecco Group North America’s survey of senior executives (VP and above) gathered insights into the
current state of the economy and employment situation.
• Telephone survey of 500 senior executives*
• Fielded by Braun Research
• Conducted August 15-23, 2013
• Differences between various demographics groups were also explored:
• Gender
• Generation
• Geographic Region
• Company Size
• Company Revenue
• Industry
• Survey results have a margin of error +/-4.4% for this sample size.
*Defined senior executives as having a title of VP or above
Slide 3

4. Key Findings
America’s skills gap is not just about technical skills
• An overwhelming majority of senior executives (92 percent) feel that there is a gap in the U.S. workforce
skills.
• Surprisingly, the majority of the gap is not technical (22 percent), leadership (14 percent) or
computer skills (12 percent) that the U.S. workforce is lacking today – senior executives feel the gap
is in the soft skills (44 percent) such as communication, critical thinking, creativity and collaboration.
• However when it comes to computer skills specifically, Gen X senior executives (21 percent -- more
than any other generation of senior executives surveyed) feels this is where the gap in skills most
affects the U.S. workforce.
• Thirty percent of senior executives overall feel the skills gap most affects the manufacturing industry.
• Other industries noted for having a gap include technology (21 percent) and professional and
business services (19 percent).
Slide 4

5. Key Findings
The skills gap is a threat to businesses, but not a direct threat to the economy
• Of senior executives who believe there is a U.S. skills gap, most (64 percent) feel the greatest threat
to U.S. businesses is investment going to companies abroad instead of staying in U.S.
• Nearly half (45 percent) of senior executives believe businesses are missing out on growth
opportunities as a result of the skills gap in the U.S and about one-third (34 percent) feel R&D /
product development is suffering as a result of the U.S. skills gap.
• Only 30 percent of senior executives who believe there’s a skills gap in the U.S. workforce feel
company profits are suffering as a result.
• Yet, as dire as the need is for skilled workers in the U.S., only slightly more than one in 10 (13
percent) senior executives feel a lack of skilled workers is a top threat to the U.S. economy.
• Senior executives cited federal spending (24 percent), global competition (22 percent) and high
unemployment (20 percent) as what they feel to be the greatest threats to the U.S. economy.
• However there were some discrepancies on what the greatest threats to the U.S. economy were
when it came to generation and geographic region:
• Gen X senior executives (33 percent) are more likely than Boomer senior executives (14
percent) to feel that high unemployment is the greatest threat to the U.S. economy.
• And senior executives in the Northeast (29 percent) are more likely than those in the West (8
percent) and South (6 percent) to think that a lack of skilled workers to fill jobs is the greatest
threat to the U.S. economy.
Slide 5

6. Key Findings
Senior executives believe the skills gap has less to do with complacency on the part of American
workers and more to do with the U.S. education system and costs associated with in-house
training programs
• More than half (59 percent) of senior executives do not feel colleges / universities in the U.S. offer
curriculums that prepare graduates with the skills needed for today’s workforce.
• Less than one-quarter (23 percent) of senior executives feel the skills gap is the result of a lack of
interest from job seekers in pursuing careers in sectors / fields affected by the skills gap.
• Among those senior executives who believe there is a U.S. workforce skills gap, the vast majority (89
percent) thinks that corporate apprenticeship or training programs could help alleviate the skills gap
in the U.S. workforce.
• Among senior executives who believe there is a skills gap in the U.S. workforce, 42 percent feel the
greatest barrier to creating in-house training programs is the cost of development.
• Fewer than one-in-five (17 percent) senior executives believe a lack of employee participation is a
barrier to creating in-house training programs.
Labor costs in the U.S. stifling growth and employment
• Six in 10 (61 percent) senior executives feel that the top challenge facing foreign companies
expanding to the U.S. is the high cost of labor in the U.S.
• Secondary to this issue are U.S. healthcare costs (37 percent), U.S. labor regulations (36
percent), lack of skilled workers in the U.S. (33 percent) and U.S. union demands (32 percent).
Slide 6

7. America’s skills gap is not just about technical skills
MAIN FINDINGS
Slide 7

8. The U.S. Skills Gap is not defined as a lack of
Technical, Leadership or Computer skills...
The majority of senior executives (92 percent) feel that there is a gap in the U.S.
workforce skills.
Which of the following do you feel BEST defines
the "gap" in the U.S. workforce skills gap?
Surprisingly, the majority of the gap is not technical
(22 percent), leadership (14 percent) or computer
skills (12 percent) that senior execs feel the U.S.
workforce is lacking today – senior executives feel
the largest gap is in the soft skills (44 percent)
such as communication, critical thinking, creativity
and collaboration.
When it comes to computer skills specifically,
Gen X senior executives (21 percent – more than
any other generation of senior executives
surveyed) feel this best defines the U.S. workforce
skills gap.
Q1) Which of the following do you feel BEST defines the "gap" in the U.S. workforce skills gap? (N=500)
Slide 8

9. Manufacturing industry hit hardest by skills gap
Nearly one-third (30 percent) of senior executives overall feel the skills gap most affects the
manufacturing industry.
Other industries noted for having a gap include technology (21 percent),
and professional and business services (19 percent).
Which of the following industries do you feel is MOST affected by the skills gap in the U.S. workforce?
Manufacturing
Technology
30%
21%
Professional / Business
Services
Engineering
19%
12%
Construction
Finance
4%
2%
Healthcare
Services
11%
Leisure /
Hospitality
2%
Q3) Which of the following industries do you feel is MOST affected by the skills gap in the U.S. workforce? (N=460)
Slide 9

10. The skills gap is a threat to businesses,
but not a direct threat to the economy
MAIN FINDINGS
Slide 10

11. Fear of investment going abroad as a result of the U.S. skills gap
Of senior executives who believe there is a U.S. skills gap, most (64 percent) feel the greatest
threat to U.S. businesses is investment going to companies abroad instead of staying in U.S.
Which of the following, if any, is a threat to U.S. business
as a result of the skills gap in the U.S. workforce?
Only 30 percent of senior
executives who believe there’s a
skills gap in the U.S. workforce
feel company profits are
suffering as a result.
Q2) Which of the following, if any, is a threat to U.S. business as a result of the skills gap in the U.S. workforce? (select all that apply) (N=469)
Slide 11

12. Federal spending is seen as the greatest threat to the U.S. economy
As dire as the need is for skilled workers in the U.S., only slightly more than one in 10
(13 percent) senior executives feel a lack of skilled workers is a top threat to the U.S.
economy.
Which of the following, do you think is currently the GREATEST threat to the U.S. economy?
Gen X senior executives (33 percent) are
more likely than Boomer senior executives (14
percent) to feel that high unemployment is the
greatest threat to the U.S. economy.
Senior executives in the Northeast (29
percent) are more likely than those in the West
(8 percent) and South (6 percent) to think that a
lack of skilled workers to fill jobs is the
greatest threat to the U.S. economy.
Q9) Which of the following do you think is currently the GREATEST threat to the U.S. economy? (N=500)
Slide 12

13. Senior executives believe the skills gap has less to do with complacency
on the part of American workers and more to do with the U.S. education
system and costs associated with in-house training programs
MAIN FINDINGS
Slide 13

14. The U.S. education system is at the heart of the skills gap
It isn’t lack of interest or lack of on-the-job training opportunities that contribute most to the
skills gap – it’s a lack of education and preparation, which senior executives blame on the
U.S. education system.
Do you believe colleges /universities in the U.S.
offer curriculums that prepare graduates with the
skills needed for today’s workforce?
Less than one-quarter (23 percent) of
senior executives who think there is a skills
gap feel the greatest contributing factor to
the skills gap is a lack of interest from job
seekers in pursuing careers in sectors /
fields affected by the skills gap. Over half
(54 percent) blame the U.S. education
system.
Q4) Which of the following do you feel is the GREATEST contributing factor to the skills gap in the U.S. workforce? (N=-474)
Q8) Do you believe colleges / universities in the U.S. offer curriculums that prepare graduates with the skills needed for today’s workforce?
(N=500)
Slide 14

15. Many feel training could alleviate the skills gap, but cost is a barrier
Among those senior executives who believe there is a U.S.
workforce skills gap, the vast majority (89 percent) think that
corporate apprenticeship or training programs could help alleviate
the skills gap in the U.S. workforce – just 11 percent do not agree.
Cost of creating these programs, however, is a barrier.
Which of the following is the BIGGEST barrier to creating in-house training programs that could help address the
skills gap in the U.S. workforce?
The cost of developing
training programs
42%
Executive team doesn’t
think it’s a priority or is
needed
Lack of interest from
employees participating
in training programs
Not enough personnel to
conduct training
programs
30%
18%
10%
Q5) Which of the following is the BIGGEST barrier to creating in-house training programs that could help address the skills gap in the U.S.
workforce? (N=469)
Q6) Do you think corporate apprenticeship/ training programs (i.e., one-on-one shadowing, cross training) could help alleviate the skills gap
in the U.S. workforce? (N=482)
Slide 15

16. Labor costs in the U.S. are stifling growth and employment
MAIN FINDINGS
Slide 16

17. Senior executives feel companies abroad are challenged by the high cost
of labor in the U.S. when looking to expand their business here
Six in 10 (61 percent) senior executives feel that the top challenge facing foreign
companies expanding to the U.S. is the high cost of labor in the U.S.
Which of the following, if any, do you think is a challenge foreign companies face
when expanding locations into the U.S.?
Q7) Which of the following, if any, do you think is a challenge foreign companies face when expanding locations into the U.S.? (select all that apply)
(N=500)
Slide 17

18. State of the Economy and Employment
September 16, 2013