With unemployment up, consumer spending down, and governments facing revenue shortfalls, Arizona must become more competitive than ever before. AZ Workforce: Latinos, Youth and the Future, produced as part of the ASU Office of Public Affairs’ César E. Chávez Leadership Lecture, examines the “unfinished business” of Arizona’s workforce. The report notes reasons why the workforce remains a critical issue: A skilled workforce is critical to expanding the state’s economy. Arizonans must have the skills employers need. Arizona ranks 17th on Milken Institute’s State Science and Technology Index overall, but 33rd among states on the Human Capital Index; Demographic shifts have put workforce issues front and center. Aging and minority growth in light of enduring disparities make Arizona’s current workforce a priority; and, Arizona’s employers will have to look harder at homegrown workers. Conservatively speaking, for everyK-12 student another Arizonan needs help with skills. For example, more than 430,000 Arizonans do not speak English well, while more than 600,000 Arizonans did not finish high school. AZ Workforce looks at big picture facts and figures about the state’s 3-million-strong workforce. By 2030, Arizona may have more than 10 million residents. A key part of the big picture is that the generation replacing older workers has less education than today’s mature workforce.

In step with other organizations, the Greater Phoenix Economic Council (the Valley’s regional public-private economic development organization) published a comprehensive 10-year economic development strategy that codified its change in direction to quality economic development in aerospace, bio-industry, advanced business and financial services, technology, and software. In early 2004, the Governor’s Council on Innovation and Technology issued Building Arizona’s Knowledge-Based Economy with scores of recommendations on venture capital, higher education, collaboration, workforce development, and other topics. Separately, each of these items would have been notable. Taken together, they demonstrate a strong commitment to the growth of a knowledge economy and to the multifaceted approaches needed to develop it.

This report both updates statistics and perceptions and adds new features. Thus, readers may look at quality of life based on how residents feel or on the trend lines revealed in the numbers. What Matters reports what people think about Greater Phoenix, how they view their own lives, and whether they believe the region is on the right or wrong track. The sections are presented in the order of importance assigned to them by the survey rankings (i.e., Education appears first, Public Safety and Crime second, etc).

What Matters is intended to support decision-making on public issues and to provide a reference for policy makers, civic and business leaders, community activists, and other residents. In response to feedback on previous issues, this edition includes additional indicators for healthcare and more information on higher education. Price and income data have been adjusted for inflation, and more information has been added where appropriate for a fuller picture of trends. Different approaches or completely new sources of data were required in some of this issue’s indicators because of changes in data sources. While every effort was made to choose items that would be stable, there is no way to control for how data are collected or reported over the years. On the whole, however, the 1997 baseline remains intact.

This publication offers comparative data and analysis on 10 public policy issues. With its scope and detail, "How Arizona Compares" will be of interest to many throughout Arizona and strives to encourage leaders and residents to discuss and move ahead on the state's most pressing public policy issues. The intent is for this publication to be studied and used for dialogue and action. The following sections are included: (1) Polishing the 48th Star; (2) Inside "How Arizona Compares"; (3) Arizona's Land and People; (4) Crime and Punishment; (5) Health and Health Care; (6) Education; (7) Business Futures; (8) Families and Incomes; (9) Signal Measures on Hot Topics; (10) Government; (11) Arts and Culture; (12) Housing; (13) Transportation; and (14) Environment. A list of selected sources is appended.