Federal Reserve Leader Discusses Early Childhood & Workforce - SC First Steps

Early Advantage briefing highlights connections between early childhood, education and workforce

COLUMBIA, S.C. – South Carolina’s long-term workforce strength depends on investments in early childhood development, according to remarks delivered Tuesday by Federal Reserve Bank of Richmond President Tom Barkin during a briefing of state lawmakers, business leaders, and education officials.

The briefing was convened by South Carolina First Steps, in partnership with the South Carolina Department of Education and the South Carolina Department of Employment and Workforce, to examine how early childhood programs and services contribute to school readiness, workforce participation, and long-term economic growth.

Barkin discussed national economic trends affecting labor supply, including population aging, declining birth rates, and changing skill demands. He noted that efforts to strengthen future workforce participation often begin well before formal schooling, as early development lays the foundation for later learning and work-related skills.

Following Barkin’s remarks, a moderated discussion featured State Superintendent of Education Ellen Weaver, Dr. Joseph Von Nessen, a research economist at the University of South Carolina’s Darla Moore School of Business, and Jack McBride, founder and CEO of Contec Inc., a global manufacturer based in Spartanburg, South Carolina.

The discussion was moderated by Sonya Waddell, vice president and economist at the Federal Reserve Bank of Richmond.

Panelists discussed how early childhood investments include a range of strategies that support children’s development from birth to age 5. These include programs that support parents during the infant and toddler years, as well as high-quality child care and preschool programs that prepare children for kindergarten and beyond.

Approximately 56,000 children enter kindergarten in South Carolina each year, yet results from the state’s Kindergarten Readiness Assessment show that only 39% demonstrated readiness when they entered school in fall 2024.

Improving kindergarten readiness is a key step toward strengthening both educational outcomes and the future workforce, and South Carolina First Steps has set a strategic goal that at least 75% of children will demonstrate readiness by 2030.

Reaching that goal will require close collaboration among the many organizations that serve young children and families, across both the public and private sectors.

Quotes

"You start building the foundation from a young age — not only for hard skills but for soft skills — which are crucial to success at later stages of the education pipeline and in the workforce." — Tom Barkin, President & CEO, Federal Reserve Bank of Richmond

"When children start school ready to learn, they start stronger. South Carolina’s investment in early childhood education, including the expansion of four-year-old kindergarten, is one of the most important investments we can make in our state." — Governor Henry McMaster

"School readiness starts in the earliest years, shaped by families and strengthened by high quality early childhood programs. These early investments build the literacy, problem solving, and resilience children need to succeed in school—and later as contributors to a strong, capable workforce." — Ellen Weaver, State Superintendent of Education

"Early childhood investments are strongly linked to improved school readiness and better long-term economic outcomes. Research shows that strengthening early learning and supporting families early improves educational attainment, workforce participation, and long-term health, while also reducing costly downstream impacts. Even modest improvements in early childhood outcomes can generate significant positive returns." — Dr. Joseph Von Nessen, Darla Moore School of Business

"The jobs of today and tomorrow are very different from those of 30 and 40 years ago, especially for manufacturing companies like Contec.  With the increase in automation and cross-functional teams, we need reliable employees who can work well with others and are good at problem-solving.  These skills require a higher education level as well as the social skills which enable them to be part of a team.  Both education and socialization skills need to start during the birth to three ages, so investing in early childhood now is critical to keeping South Carolina competitive in the long-term." — Jack McBride, Founder & CEO, Contec, Inc.

"Strong parenting support is one of the most effective ways to keep youth out of the juvenile justice system. Early targeted support for families improves outcomes for children, reduces long-term system costs, and strengthens communities." — Eden Hendrick, Executive Director, SC Department of Juvenile Justice

"We know that high-quality parent education programs in combination with strong preschool experiences ensure that more children are reading and math ready. We know that school readiness is highly predictive of 3rd grade reading proficiency, and reading proficiency is predictive of future academic growth and success in life. To ensure that at least 75% of South Carolina’s children achieve 'demonstrated school readiness,' compared to the current rate of 39%, the early childhood system must work together to improve services and support for roughly 9,000 more children. Advanced collaboration and additional investments will support that goal." — Ann Vandervliet, Agency Director, South Carolina First Steps

"The evidence is clear: the skills South Carolina’s workforce depends on begin developing long before a child enters a classroom. When we invest early, especially in supporting parents, we see measurable gains in school readiness, academic success, and successful adulthood. The challenge now is scaling what we know works." — David Morley, Chairman, South Carolina First Steps Board of Trustees

Topics: Early Care and Education, Parenting, Health, Home Visiting, Data


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