Quarterly

Monitor

"The challenge is to develop a skilled labor pool and create the types of jobs to keep them here. The key is education." Knight Kiplinger, nationally recognized business analyst and co-editor of the Kiplinger Washington Letter, made these pointed observations to a large gathering of business leaders convened by the Oklahoma State Chamber of Commerce this October. Kiplinger's comments follow a raft of other studies and analyses which confirm that in the emerging information economy job growth, wealth and income, and general economic well-being are increasingly correlated with high levels of education.

National attention is being focused on the importance of highly skilled workers to continued economic expansion. The map on page 2 shows states' educational attainment and personal income have already become closely related. This trend is expected to accelerate, putting those states lagging in educational attainment at risk of falling further behind their economic competitors.

Business Climate Studies Zero in on Human Capital:

Businesses increasingly consider educated labor force in their analyses of states business climates. Two new studies of state business climate rankings include state educational attainment (measured by percentage of population with a Bachelor's degree) as a major factor in overall ranking. A study commissioned by MasterCard International, which focuses on the financial services industry, and a study commissioned by Financial World Magazine and undertaken by Regional Financial Associates, both highlight the importance of human capital in business location and expansion decisions (see blue sidebar).