The shift to a global economy and changes in technology, the nature of work, and workforce demographics are challenging customary federal approaches to education and employment. The global economy and advances in technology enable work to be shifted to other countries or render some jobs obsolete. If we are to compete effectively in a growing, knowledge-based economy, our educational system must equip children with appropriate skills to meet high standards and provide means for adults to continue to learn new skills and enhance their existing abilities. This will require ensuring that diverse populations have access to postsecondary, vocational, and adult education. As an increasingly volatile job market creates and eliminates jobs, federal programs that train new workers or support workers who lose their jobs must also be capable of responding to sudden changes in the economy. Federal efforts to protect workers must account for changes in the nature of work: membership in organized labor has declined, traditional work arrangements are giving way to alternatives such as temporary employment and teleworking, and lifelong service with a single employer is becoming much less common. Changes in workforce demographics pose additional challenges. The U.S. labor force has more than doubled in the past 50 years but is now growing at a much slower rate.

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Children's social interactions involve a dynamic interplay of personal goals and social goals, as well as inter play among different social goals. Reciprocity of social interactions means that individuals both participate in cultural practices and can stand apart from culture and take a critical approach to social practices. Typically, there are elements both of harmony and tension or conflict. Moreover, though the development of different domains of judgment, individuals deal with social situations from more than one perspective, taking into account varying features of situations and contexts. The diversity in judgments of individuals includes domain specificity in people's thinking and contextual variations in the ways judgments are applied. People in so-called individualistic cultures have multiple social orientations, including concerns with social duties, the collective community, and interdependence, as well as independence, rights, freedoms, and equality. People in so-called traditional, collectivistic cultures endorse traditions, status, and role distinctions, but they also endorse individual freedoms and rights even when in contradiction with status and hierarchy. Another issue of importance to moral and social functioning that involves contextual variations in judgments and actions is that of honesty. Honesty is often regarded as one of those moral matters that once acquired by the individual will be and should be applied consistently.

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The Department of Education will conduct a national competition among states this year for $4 billion of the Race to the Top Fund to improve education quality and results statewide. The Race to the Top Fund will support states' effort to drive substantial gains in student achievement. These grants will focus on four reform goals using data to drive instruction, raising standards, turning around historically low-performing schools, and improving teacher and principal quality as described in the American Recovery and Reinvestment Act. Additionally, the ARRA allocates $650 million for the "Invest in What Works and Innovation Fund."The money will be awarded to school districts and non-profit groups with strong track records of results. Guidelines and applications for the competitive funds will be posted on the Federal Register next month. Race to the Top grants will be made in two rounds. Secretary Duncan will give two more major policy speeches leading up to the request for proposals. He will speak about school turnarounds on June 22 at the National Charter School Conference in Washington DC, and he will discuss teacher quality July 2 at the National Education Association annual meeting in San Diego.