WASHINGTON, July 29 (UPI) -- U.S. President Barack Obama Thursday called for more stringent educational standards in touting his Race to the Top education program.

Calling education an economic issue, Obama, in a speech before the National Urban League convention, said Race to the Top has "leveraged change" across the country. His remarks came as school districts across the country laid off thousands of teachers and other school personnel, and gutted programs because of budget shortfalls.

"It's an economic issue when the unemployment rate for folks who've never gone to college is almost double for what is it for those who have gone to college," Obama said. "It's an economic issue when 8 in 10 new jobs will require workforce training or a higher education by the end of this decade.

"It's an economic issue when countries that out-educate us today are going to out-compete us tomorrow."

Obama said the achievement gap is widening, with U.S. students falling further and further behind their foreign counterparts in science and math.

"We've talked about it. We know about it, but we haven't done enough about it. And this status quo is morally inexcusable, economically indefensible, and all of us are going to have to roll up our sleeves to change it," he said.

Obama cited the need for national education standards and said his Race to the Top program differs from the previous administration's No Child Left Behind because the No Child program gave states "the wrong incentives," encouraging them to water down standards to keep districts from being penalized for lack of achievement. Nothing is wrong with testing, Obama said, as long as the tests are better.

"Race to the Top isn't simply the name of an initiative. It sums up what's happening in our schools. It's the single most ambitious meaningful education reform effort we've attempted in this country in generations," he said.

Obama said teachers must be held accountable to ensure results in the classroom. He also defended testing and shaking things up.

"Nothing is more important than teachers." Obama said, adding: "I want teachers that have higher salaries. I want them to have more support. I want them to be trained like the professionals they are, like rigorous residencies like the ones that doctors go through. I want to give them a career ladder so they have opportunities to advance and earn real financial security. I don't want talented young people to say, 'I'd love to teach, but I can't afford it.'

"So, even as we applaud teachers for their hard work, we've got to make sure that we're seeing results in the classroom. If we're not seeing results in the classroom, then let's work with teachers to help them become more effective. If that doesn't work, let's find the right teacher for that classroom."

Tennessee and Delaware were the only two states to receive funds in the first round of competition.

Eighteen states and the District of Columbia were selected as finalists to receive more than $3 billion in the second round of funding for the program, officials said. The finalists will present their plans in August and winners will be announced in September.

In his remarks, Obama also praised the Urban League and touched on the economy, health insurance and financial reform, cocaine sentencing laws and racism.