Executive Women in Government

Remarks Prepared for Delivery by
U.S. Secretary of Labor Elaine L. Chao
Executive Women in Government
Washington, D.C.
Wednesday, March 22, 2006

Thank you, Maria [Vickers, President, Executive Women in Government] for that very kind introduction.

I'm so glad to be with you. It's good to be among colleagues and professionals who think strategically, manage effectively, and understand the value of a great pair of shoes.

I'd like to chat with you today about the state of America's workforce, the achievements and accomplishments of women to our country's workforce, and the challenges that women leaders face.

Outside of Washington, many Americans do not fully understand the important work of the Senior Executive Service. But, those of us who have worked in the federal government understand and appreciate deeply what you do. And I am here to thank you for your service to America. Like the women who serve in our nation's military, you have taken an oath to serve this country. And by serving your fellow citizens, you are helping to keep our country strong, prosperous and free.

Over 30 years ago, when your organization was formed, there were only about 100 women in senior positions in the federal government. Now there are well over 4,000. Women have made tremendous progress. But there is still more work to do. I'm proud to work for a President who recognizes, appreciates and promotes talented, accomplished women. He appointed the first woman to head the Department of Interior, the first African-American woman to head the State Department and the first Asian Pacific American woman to serve in the cabinet in U.S. history.

At the Department of Labor, half of our senior leadership team is comprised of women. That's an all-time high and the best record, I believe, in government.

These milestones are a reflection of the advancements that women have made in the past 50 years. In 1948, women were less than one third of the U.S. workforce. Today, we are close to half the workforce. And we're not stuck in the bottom half. Women are increasingly assuming top management positions in business and their participation in the professions is exploding. Women owned businesses are growing at twice the national average. The driver behind these numbers is the fact that women are accessing education, especially higher education, in unprecedented numbers.

Today American women complete high school at higher rates than men. And they are more likely to enter and graduate from college than men. In fact, half of our college graduates today are women. Nearly half of all law school graduates, 44 percent of all medical school graduates and nearly 40 percent of all MBA holders are women. And let's not forget community colleges, which provide valuable, marketable skills training. 60 percent of all associate degrees today are awarded to women.

A look down the road reveals that women are positioning themselves for even greater gains over the next twenty years. For example, last year women comprised more than half of all advanced degree holders under the age of 40.

The fact that women "get it" when it comes to education has translated into substantial increases in earnings. 5 million net new jobs have been created in the last two-and-a-half years. And the majority of these new jobs require some understanding of technology and post-secondary education. The trend is clear: our country is transitioning to a knowledge-based economy. And the jobs of the future require higher education and higher skills.

Women understand that college graduates earn twice as much over their working lives as those with no postsecondary education. And educational achievement is helping women make steady progress in terms of their earnings relative to men.

From 1979 to 2004, women's earnings as a percent of men's increased by 18 percentage points — up from 62 to 80 percent. The difference is narrowing. There is always room for improvement. But part of the differential is related to the fact that many women work part time — or interrupt their careers-in order to take care of their families.

The fact that American women can make this choice is a positive reflection on our economy, not a negative one. In many countries in the world, women — and great numbers of children, as well — are forced to work because they have no other choice.

Women who choose to stay in the workforce need more options so they can balance work and family needs. That's why this Administration supports giving women in the private sector the same choices that women in the federal government have. Currently, women working in the federal government can choose comp time instead of paid annual leave. And flex time is also available. This Administration would like to extend these choices — on a strictly voluntarily level — to workers in the private sector.

Our economy can offer unprecedented labor market choice because it so flexible. In many of the old countries of Europe, workers find a job and they must hang onto it for life because new jobs are not being created.

By contrast, America's economy is strong and getting stronger every day. We've seen 30 straight months of uninterrupted job growth, for a total of 5 million net new jobs created since August 2003. The unemployment rate has fallen to 4.8 percent, lower than the 5.7 percent average unemployment rate of the decade of the 1990s! More Americans are working than ever before. And the economy grew at a solid rate of 3.5 percent in 2005 — stronger than any major industrialized nation. In fact, our country has created more jobs than the European Union and Japan combined.

This was made possible, in part, by strong leadership that encouraged the climate for growth. And women are an integral part of the economic success of our country.

As many of you just heard, my career has spanned the public, private and non-profit sectors. The challenges presented in each of these sectors has helped me grow as a leader — I learn something new everyday. But it also taught me that there are certain common values and challenges shared by leaders in each sector. Let me share a few of these with you.

First, there is no substitute for knowing the business of your organization. That's true whether you're working in the private, public or non-profit sector.

Second, it's important to understand the special culture of your organization, and the subtle, unwritten rules of how things are done. This often comes more naturally to women than to men.

And third, while technical proficiency is often an advantage, it is not sufficient. Unless you understand the people in your organization and how best to motivate them — you cannot be an effective leader and accomplish your goals. Because the truth of senior management is that you work through other people. That's why the so-called soft skills are so important to professional advancement in a complex organization like the federal government. Managers today are leaders. And leadership requires the ability to communicate, motivate and inspire others to follow you.

Finally, managers in all three sectors share an important challenge that is growing more important every year. Today, our society is demanding more transparency and accountability on the part of its leaders and its institutions. It doesn't matter if you're in the public, private or non-profit sector. The public expects leaders in each of these sectors to conduct themselves with integrity, honesty and accountability.

As public servants, we're used to this kind of challenge. But during this era of heightened public sensitivity, it more important than ever before to conduct the government's business in an open, accountable and transparent manner. That's a key element of the President's management agenda. And it's a goal that I know each of you, as senior managers, share.

In this administration and throughout my career, I have had the opportunity to work with very talented and dedicated women. They have taught me so much and helped pave the way for other women to follow. So today, I'd like to leave you with one more challenge.

Today, the federal workforce is undergoing an unprecedented transformation. We are facing an enormous wave of retirements. The next peak of this wave is expected between 2008 and 2010. This represents a great challenge and a tremendous opportunity.

Today, women comprise 26.5 percent of federal employees in the senior pay levels. So the impending wave of retirements will mean new opportunities for women to advance within the senior career ranks of government.

I'd like to ask you to reach out and mentor other women who want to serve in the senior levels of government. You have invaluable experiences and insights to share. And mentoring is a great way to help other women access the tremendous opportunities that government service offers.

So thank you for inviting me here today. And thank you for everything you are doing to ensure that the doors of opportunity remain wide open for the next generation of women.

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