As Baby Boomers Retire, New Report Finds Their Successors May Be Less Prepared to Take Over.

MINNEAPOLIS -- Report Cites Three Types of Disparities That Could Threaten Twin Cities Region's Economic Competitiveness; Gives Region High Marks For Its Exceptional Assets and Position of Strength

Disparities among race and ethnic groups, among income levels, and between cities and suburbs are accelerating at a time when the Twin Cities' most-productive workers are thinking about retiring - a situation that could threaten the entire region's economic leadership beginning in less than six years.

This is one finding from a major study, "Mind the Gap: Reducing Disparities to Improve Regional Competitiveness in the Twin Cities," by Washington, D.C.-based Brookings Institution that was released today by the Itasca Project, a group of approximately 40 Twin Cities-based CEOs, academic leaders and public officials who focus attention and action on the region's most pressing competitive threats.

According to Amy Liu, deputy director of Brookings' Metropolitan Policy Program, the Twin Cities is headed straight for a workforce shortage as 776,000 baby boomers - many of whom are college educated - begin to retire in 2011 and throughout the next 15 years. If population projections hold over that period of time, these retirees will be replaced with a more diverse workforce, many of whom will not have the same skill or education levels as their predecessors.

"These findings mean the next generation of workers will be less prepared, as a whole, for the jobs that Twin Cities employers will require," Liu said. Brookings' Metropolitan Policy Program developed this report for the Itasca Project, and has completed similar reports for several cities across the country.

Right thing to do, smart thing to do

The Brookings findings reinforce the observations that led Twin Cities business leaders to form the Itasca Project two years ago and to select "Close the Gap" as one of the group's six major initiatives, according to Mary Brainerd, CEO and president of HealthPartners and chair of Itasca Project's Socio-Economic Disparities Task Force.

"Businesses are attracted to the Twin Cities primarily because of our highly skilled and educated workforce," Brainerd said. "Since we're gaining population more slowly than other areas of the country, we must continue to grow our own qualified workforce. That will be more difficult if we aren't able to replace the region's retiring baby boomers with equally skilled workers. Closing the gap on race, income level and place disparities becomes not only the right thing to do, but the smart thing to do."

Not all residents benefit from the Twin Cities' storied quality of life

The Twin Cities region is blessed with assets that make it an exceptionally strong region, according to the Brookings study. It has one of the most highly educated populations in the country, its job and income growth outpaced the nation for the last decade, and its poverty rate is among the nation's lowest.

But the region isn't working for everyone, said Brookings' Liu. "In an area where household income is among the highest in the nation, our report found that black household income is among the lowest. In a region that has the country's largest share of adults with a high school diploma, the Twin Cities ranks only 40th among the 100 largest metro areas for Latinos who graduate from high school. And, the Twin Cities has the second-largest gap in the nation between poverty rates in its central cities and poverty rates in its suburbs."

The Brookings research uncovered many more examples of where the overall health of the region masked stark disparities. But the report also emphasized the up-side. Unlike many cities, the Twin Cities is operating from a position of strength, it said. If businesses and the broader community begin now to close the gap before the problems worsen, the Twin Cities can continue to thrive and enable all residents to participate in the region's prosperity.

Close the Gap is a four-part initiative

In addition to the report, which will be distributed broadly via the internet and in hard copy, the Itasca Project's Close the Gap initiative consists of:

--An employer tool kit with practical actions that businesses of any size can take advantage of today to help reduce disparities in the workplace.

The tool kit, which was developed in partnership with Greater Twin Cities United Way, will be distributed to regional businesses beginning Nov. 16 at an unprecedented meeting of members of seven leading business organizations. At the meeting, attendees will be invited to take at least five actions within the year to help their employees close a disparities gap.

"Many of these suggestions will help employers be aware of and use the resources already available to qualified employees such as Individual Development Accounts (IDAs), Earned Income Tax Credit and child care assistance," Brainerd said. "We believe it's important to look at what's available, but not yet fully used."

--A speakers bureau, managed by Greater Twin Cities United Way, that will take the disparities conversation to a broader community.

The business voice is important, but it's only one voice. Organizations beyond the business community - civic, faith-based and others - should develop their own responses to the findings in partnership with the many nonprofit groups that work every day to close the gaps that the Brookings report references.

--A regional monitoring system to measure the Twin Cities' efforts to close the gap.

The Close the Gap task force is exploring options with organizations that have the capacity to take this on. A decision will be made before year-end.

The Brookings Institution report, a draft of the employer tool kit, information about the Close the Gap speakers' bureau and other information about the Itasca Project's Close the Gap initiative can be found at www.unitedwaytwincities.org/closethegap.cfm.