Indiana Department of Workforce Development

1. Indiana Department of Workforce Development Changes, Challenges, and Opportunities

2. Workforce Investment Priorities • Development of Regional Economies • Development of the Future and Potential Workforce • Development of the Incumbent Workforce

3. Development of Regional Economies • Progress measure by: - Increase in value added per wage dollar - Increase in employee wages, with a living wage as a target - Reduction in unemployment in pockets of high unemployment.

4. Development of Regional Economies Challenges: • Indiana ranks 36th in the nation in wage growth • Indiana ranks 43rd in value added per wage dollar • Since 1969, total personal income has grown by 84%, but the nation has seen an advance of 124%.

5. Development of the Future and Potential Workforce Progress measure by: • Graduation rates based on 4 grades • Retention and Recovery of dropouts through alternative education • Percent of Students earning Certificates of Technical Achievement • Increase in secondary students’ participation in work-based learning

6. Development of the Future and Potential Workforce Challenges • Only 55.2% of 1997 graduates enrolled in postsecondary education the following year • Indiana’s 4 year graduation rate was 87.69% in school year 96-97 • Limited numbers of secondary students engage in work-based learning.

7. Development of the Incumbent Workforce Progress measured by: • Number of workers with skill credentials • Increase in personal investments in skill development • Increase in private sector investments

8. Development of the Incumbent Workforce Challenges: • Indiana ranks 45th nationally in the percent of adults with postsecondary education • More than 20% of Hoosier adults do not have a high school diploma or GED

9. The Manufacturing Challenge • 9,886 mfg. establishments • 676,770 mfg. Workers • 220 mfg. Establishments over 500 employees (2%) • Job growth of 30,000 by 2005 (4%) • 160,000 workers lost through attrition by 2005 (23%)

10. Low Unemployment Rates • Labor shortages - Anecdotal evidence of companies not locating in Indiana. - Economic studies: Hudson Institute found very tight labor market for entry- level and skilled workers in central Indiana.

11. Indiana’s situation in a nutshell: • Brain Drain • Poor mfg. productivity rankings • Large scale attrition due to retirements, deaths, other turnovers. Aging workforce major issue in Indiana. • Poor infrastructure for training (community college system just now being developed).

12. Major New Focus: Incumbent Workers • Indiana will maximize use of the state setaside under WIA for incumbent worker projects that build regional alliances • Incumbent worker councils (IWCs) are established as subgroups of WIBs: • 1/3 labor, 1/3 business, 1/3 economic development, commerce, and DWD • Recomment incumbent worker plan to WIB

13. New focus, continued • Planning grant received from DOL to provide technical assistance to IWCs and to develop state plan from regional IWC plans • P&I fund created for incumbent worker training • Portion of state dislocated worker fund targeted to incumbent workers at risk to avert lay-offs

14. New focus, continued • Certificates of Technical Achievement expanded from education system to incumbent workers • Market-driven vocational education funding formula • Community college system in development

15. GOALS • Increase the number of Hoosiers with skill credentials • Increase worker wages as a result of training • Enhance the productivity and competitiveness of business • Increase personal investments in training • Increase private investments in training

16. Goals, continued • Increase local public dollar investments in training • Link economic development and workforce development • Develop a statewide plan for incumbent worker training with regional level input and commitment to achieving goals.