February 1, 2012 Madison Club

1. Wisconsin Insurance Alliance Annual Meeting Secretary Reggie Newson Wisconsin Department of Workforce Development Wisconsin: The Workforce of Choice February 1, 2012 Madison Club

2. Wisconsin Is Open for Business “We are turning things around. We are headed in the right direction.” • Governor Walker’s Strategies Working • Recent State Address Shows Results: • Unemployment rate down, lowest since 2008 • Added 13,500 private sector jobs last year vs. 150,000 loss previous three years • 94% of job creators say Wisconsin’s on right track • Majority of employers surveyed plan to expand, hire workers

3. Wisconsin Is Open for Business “We are turning things around. We are headed in the right direction.” • “Wisconsin Working” Builds on Successful Strategies • First day in office, declared Wisconsin open for business • Affirmed job creation goal, called special sessions to spur growth • Won approval of tax credits to help create jobs • Achieved regulatory reform • Created new economic development agency • Working with employers to find quality employees • Moving Wisconsin forward

4. Property & Casualty Insurance, Key WI Industry • Economic impact – 2010 payroll topped $1.22 Billion • Nearly 500 firms, 18,870 direct employees • Average annual salary, nearly $65,100 vs. $40,000 average overall • Among leading private sector employers in communities • American Family, Madison • QBE, Sun Prairie • Sentry, Stevens Point • ACUITY, Sheboygan

5. Wisconsin Worker’s Compensation First in Nation WC Program • Advisory Council with equal membership • 5 labor, 5 management • Competing interests committed to consensus • Latest example, AB-499, subject of public hearing today • Raises permanent partial disability benefit • At $312 per week, still among lowest • Iowa, highest, at $1,300 per week • Industry has key role in successful process • Sentry, Liberty Mutual & QBE are non-voting Advisory Council members

6. Wisconsin Worker’s Compensation Wisconsin Worker’s Compensation Rates Among Lowest

7. Wisconsin Worker’s Compensation • Wisconsin Average Cost per WC Case Among Nation’s Lowest • Wisconsin ranks 39th among 45 states with comparable plans • Average cost of $8,120 = 7th lowest nationally • Illinois ranks 4th highest at $19,805 average cost per case • Minnesota ranks 15th highest at $12,853 • Iowa ranks 28th highest at $10,290 • Michigan ranks 38th at $8,313

8. Wisconsin Worker’s Compensation Wisconsin Gets High Marks in National Studies • Workers back on job faster → 1st among 11 study states • Study states include Calif., Tex., Mich., Penn., Fla. • Worker satisfaction → 1st among 11 states in HC study • States include Calif., Tex., Mich., Penn., Fla. • Time loss ranking →lowest of 16 study states • Temporary disability average 4 weeks shorter than median • Study states include Calif., Tex., & Midwest states Source: Workers Compensation Research Institute

9. Rising Healthcare Costs Among Challenges • WC has strong safety focus, employer partnerships • Single “Wrap Up” Coverage of major construction projects • Multiple contractors, one policy, one safety plan • Site visits, inspections, pro-active approach to prevent accidents • Examples: Marquette Interchange, UW-Madison Discovery Center • Wisconsin Corporate Safety Awards • Highlights successful safety programs as examples for others • Funded in part by DWD

10. Wisconsin Working Special Cabinet on Economic and Workforce Investment Plan “For over a year we have been building a better job creation environment in Wisconsin. These new initiatives will continue our efforts to create jobs for Wisconsin families.” Governor Walker.

11. Wisconsin Working – DWD Role Plan helps address skills gap, promote private sector job creation • Double the number of job fairs held in 2012 • Hire 14 additional staff to assist in re-employment services • Partner with WEDC to identify employers’ labor needs and supply interested workers to fill openings • Work with the Dept. of Veterans’ Affairs to assist veterans in finding meaningful employment • Create College and Workforce Readiness Council to recommend improvements that will result in immediate job creation • Support “Wisconsin Wins” legislation to help unemployed workers gain skills

12. Workforce Challenge: Skills Gap • When we entered office, we were surprised by the skills gap: 120,000 people on unemployment, yet employers telling us, “I can’t find welders.” • What are we doing to match workers to jobs? • Sending targeted email job recruitments to over 77,000 jobseekers • Organizing almost 200 job fairs serving 1,400 employers and 24,000 jobseekers • Unemployment Insurance claimants must now register with Job Center of Wisconsin and complete a resume

13. Wisconsin workers -- Age 26 & older Workforce Challenge High School Drop Out • Many occupations require at least technical degree • 65.8% lack technical degree Four-year College Degree, or more 11% 25.4% High School Grad Associates Degree 34.3% 8.8% Some College(no degree) 20.5% Source: U.S. Census, 2005-2009 American Community Survey

14. JobCenterofWisconsin.com = opportunities • Job openings exceeding 32,000 • Top 10 job openings statewide on JCW.com Transportation / Moving Computer & Math Architecture & Engineering Military Personal Care & Service Production / Manufacturing Office and Administrative Support Healthcare Practitioners (RNs/LPNs) Management Sales

15. DWD Strategic Goals • Connect job seekers to jobs (250,000 jobs) • Support development of highly skilled labor force • Achieve unemployment insurance solvency and increase program integrity • Deliver DWD services more efficiently and support increased transparency and accountability

16. Wisconsin: The Workforce of Choice • DWD Strategic Goals • Connecting job seekers to jobs • Promote Job Center of Wisconsin, job services DWD & partners provide • Connect unemployment insurance claimants to employment & training services • Empower individuals with barriers to employment to become economically self sufficient

17. Wisconsin: The Workforce of Choice • DWD Strategic Goals • Support development of highly skilled labor force • Engage Governor’s Council on Workforce Investment • Coordinate, align workforce development programs with public & private sector partners • Focus resources on key sectors with high growth, strong demand for workers

18. Wisconsin: The Workforce of Choice • DWD Strategic Goals • Achieve UI solvency, increase program integrity • Engage Unemployment Insurance Advisory Council • Increase UI program efficiency and cost effectiveness

19. Wisconsin: The Workforce of Choice DWD Strategic Goals Deliver DWD Services More Efficiently and Support Increased Transparency and Accountability • Continuously identify and implement strategies to deliver programs and services more efficiently • Improve funding and efficiency of the Equal Rights and Worker’s Compensation programs • Measure results to allow for informed decision making on resource allocations • Enhance efficiencies by implementing high-priority IT projects

20. Thank You! Questions? Secretary Reggie Newson Department of Workforce Development 201 East Washington Avenue P.O. Box 7946 Madison, WI 53707-7946 Telephone: (608) 267-1410 Email: sec@dwd.wisconsin.gov www.dwd.wisconsin.gov