Business Leaders for
Job Growth in America
29 June 2025

Education

Education

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Over the last several decades, the U.S. education system has fallen from the best of the world to one of the worst among industrialized countries. The next generation of American workers lacks preparation for today's jobs. The problem is making America less competitive in the global economy. Reforms such as No Child Left Behind have made progress in raising standards at the K-12 level. Nevertheless, the U.S. still lags well behind. 
 
The U.S. education system was once the envy of the world, today America lags well behind many industrialized countries in education. In a recent international test of student proficiency, the U.S. finished just 14th out of 34 industrialized countries in reading skills. The results in science and math we’re even more discouraging. The same test placed the U.S. 25th in math and 17th in science. 
 
The poor performance of America’s schools can’t be attributed to lack of money thrown at the problem. The U.S. tops the world in spending per student on education. But, much of that money is being wasted in Administrative overhead rather than going to pay teachers and buy books.
 
A highly-skilled workforce has big economic benefits in the long run. Effective education reform will contribute trillions to the U.S. economy in the long run. A recent study published by the OECD and the Hoover Institution at Stanford University estimates that improving U.S. scores on the international PISA test by just 25 points over the next 20 years would result in a $41 trillion increase in economic growth over the lifetime of the next generation of students. 

SOLUTIONS 
Raise the Status of Teachers in Society 
One of the major differences between the U.S. and higher performing countries is the relatively low status of teachers in society. In the best performing countries, teachers are viewed on the same professional level as doctors and lawyers. While this is a cultural problem not easily corrected with policy alone, there is much that can be done. Teachers that excel should be recognized financially and socially, administrative burdens and regulatory headaches should be eliminated wherever possible, and more resources should be directed towards attracting the brightest minds into the teaching profession.
 
Expand Merit Pay and Professional Advancement for Teachers 
The debate over teacher pay too often centers on across-the-board increases that make little distinction between performance and compensation. No business runs like this, even the Federal government does a better job of providing opportunities for professional advancement. First, states should reallocate funds from administrative overhead functions and increase pay for teachers. Second, teachers should have more opportunities for professional advancement within their field such as seniority gained through performance and leadership not just time served in the job.
 
Establish National Best Practices for Education Budgets 
The U.S. is first in the world in education spending yet is still not performing. A comprehensive national evaluation for education spending should be conducted that identifies best practices for education spending. Education budgets should focus on directing resources to the most efficient uses in driving student outcomes and less on needless administrative functions. 
 
Expand the Role of Business in Education 
Business can play a greater role by helping to shape policy and curriculum to provide the skills required for tomorrow’s workforce. A recent report from the Institute for a Competitive Workforce highlights several productive collaborations between business leaders and school districts. For example, the Austin Chamber of Commerce actively wades into issues of education policy to encourage increased college enrollment and produces a report card that holds education officials accountable. The results are unmistakable. Between 2006 and 2009, the number of Austin-area students applying to college using the Texas Common Application rose from 47% to 64%.
 
Increase Emphasis on Science and Math Education 
Worldwide, America ranks an abysmal 52nd in math and science education, according to the World Economic Forum’s most recent global competitiveness report. Indeed, fewer than one third of U.S. elementary and high school students have a firm understanding of science according to national test results . The poor performance of America’s K-12 students in science and math is reflected in the number of students who pursue degrees in the basic sciences, math, and engineering at the college level. This presents a significant problem for a country that has long relied on innovation for economic growth and job creation. 
 
Invite Business Leaders into Education Policy Process 
State education officials should welcome input from the business community in education policy. By bringing business leaders into the education policy process education officials can gain resources and expertise that help them design curriculum to prepare students for the demands of a competitive workforce.
 
Create a Voluntary National Science Education Curriculum for K-12 
Convene a panel of leaders in the field of science, education and technology to develop a voluntary national curriculum that strengthens education in the sciences with a particular focus on the needs of today’s high tech workforce. An earlier focus on science education will encourage more students to pursue science degrees in college and to seek careers in science and technology. This was a key recommendation of the National Academies of Sciences “Rising Above the Gathering Storm” report.
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