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The Workforce Development Challenges Facing Hawai`i. Hawai`i NGA Project January 2007. Declining Per Capita Personal Income as a Percent of U.S. Average Hawai`i, 1960-2005. Source: U.S. Census Bureau, Bureau of Economic Analysis.
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The Workforce Development Challenges Facing Hawai`i Hawai`i NGA Project January 2007
Declining Per Capita Personal Income as a Percent of U.S. AverageHawai`i, 1960-2005 Source: U.S. Census Bureau, Bureau of Economic Analysis
Over Dependent on a Dominant Mature Industry Export Earnings 1975-2004 Millions Source: Hawaii DBEDT
Hawai`i Employment by Industry - 1962 State government County government 3.1% 5.8% Federal civilian Agriculture 10.4% 5.0% Construction 5.7% Federal military Manufacturing 22.5% 9.7% Transportation Other services 3.8% 6.4% Communication Business services 1.0% 1.1% Utilities Health services 0.9% 1.9% Wholesale Hotel services Retail 4.8% Finance 1.7% 12.3% Real estate Source: P. Brewbaker, BOH, Aug. 02 Insurance 1.7% 1.6% 0.7%
Employment by Job Type, 2000 (%) Source: Tony Carnevale and Donna Desrochers, ETS (PUMS 2000 5% Sample, source data extracted from www.ipums.org at the University of Minnesota)
Earnings by Job Type, 2000 ($) Source: Tony Carnevale and Donna Desrochers, ETS (PUMS 2000 5% Sample, source data extracted from www.ipums.org at the University of Minnesota)
Hawai`i’s Future is Dependent Upon a Skilled and Diverse Workforce To be Successful We Need to Address Our: • Job Quality Gap • Worker Supply Gap • Worker Preparation Gap
The Job Quality Gap An Insufficient Number of Living Wage Jobs
Need to address Critical Issues • Weaknesses (State Rank) • 49 Cost of Urban Housing • 48 Home Ownership Rate • 47 Industrial Diversity • 46 Crime Rate • 39 Involuntary Part-Time Employment • 34 Net Migration Source: Corporation for Enterprise Development, 2007
Oahu’s Economic Development Agenda • Create more good paying jobs for residents • Support and fund P-12 quality education • Build a 21st Century leading university system • Accelerate growth and diversification of knowledge/tech businesses
The Worker Supply Gap An Insufficient Number of Qualified Workers
Unemployment Rates—Hawaii and U.S., 1995-2006 Source: U.S. Bureau of Labor Statistics
We Need to Fill 29,000 Jobs Annually Through 2012 Source: EMSI June 2005
Most Require Education Beyond HS Source: EMSI June 2005
We Need to be Ready to Replace Skilled People in Critical Jobs Source: U.S. Census Bureau, 2000 Census; 5%PUMS Files
HS Graduates Supply Less Than 1/2 of the 29,000 Annual Jobs to Fill Source: WICHE High School Graduate Projections
Projected Change in Population by Age Group, 2000 to 2020 Age: <15 15-24 25-34 35-44 45-54 55-64 65+ Source: U.S. Census Bureau Population Projections
Homes on O‘ahu—Beyond Affordable We can no longer depend on an imported workforce. $591,300** $369,400** $356,100 $128,400 * Price of an affordable home based on state’s median household income, average mortgage rate, and a 30-year mortgage with 20% down. ** Projected ** Source: The Honolulu Advertiser, University of Hawaii economist Carl Bonham
806 607 1,151 -5,778 -2,132 -11,761 -819 -1,787 2,108 -1,962 1,187 603 2,301 -20,078 -3,000 -2,000 -1,000 0 1,000 2,000 3,000 -25,000 -20,000 -15,000 -10,000 -5,000 0 5,000 Hawaii Net Migration by Degree Level and Age Group 22- to 29-Year-Olds 30- to 64-Year-Olds Less than High School High School Some College Associate Bachelor’s Graduate/Professional Total Source: U.S. Census Bureau, 2000 Census; 5% Public Use Microdata Sample (PUMS) Files
Percent of Civilian Population Participating in the Workforce, 2004 Source: U.S. Census Bureau
Who is Not Currently in our Workforce (age 25-64)? • More Likely to: • Be Poorly Educated; • Be a TANF Recipient (Welfare); • Have a Disability; • Be an Ex-Offender; or • Reside Outside the Urban Core
Percent of Population Age 16 and Older Participating in the Workforce, 2004 Honolulu Kauai 66 .6% to 66 .9% Maui 60 .6% to 66 .6% 58 .0% to 60 .6% 39 .4% to 58 .0% Hawaii Hawaii = 64.7% Source: U.S. Census Bureau
In Civilian Workforce Not in Civilian Workforce NumberPercentNumberPercent Less than High School High School Diploma or GED Some College, No Degree Associate Degree Bachelor's Degree Graduate or Professional Degree 34,623 63.8 19,658 36.2 144,239 75.4 46,967 24.6 104,974 78.1 29,469 21.9 55,994 81.1 13,074 18.9 111,765 83.9 21,485 16.1 53,100 84.5 9,724 15.5 Hawaii Civilians Age 25-64 in the Workforce by Education Attainment, 2005 Source: U.S. Census Bureau, 2005 ACS PUMS File
The Worker Preparation Gap An Insufficient Number of People with Needed Skills
Iowa Utah Ohio Idaho Texas Maine Illinois Hawaii Alaska Florida Indiana Kansas Virginia Oregon Arizona Nevada Georgia Missouri Vermont Montana Alabama Michigan Colorado Kentucky Maryland Arkansas Wyoming Delaware California Louisiana Nebraska New York Wisconsin Oklahoma Minnesota Mississippi Tennessee New Jersey Washington Connecticut New Mexico West Virginia North Dakota Rhode Island Pennsylvania United States South Dakota North Carolina South Carolina Massachusetts New Hampshire Number of 2-Year Degrees and Certificates in Health Sciences Awarded (2003) Per 100 HS Graduates Three Years Earlier, 2000 Source: NCES-IPEDS Completions 2002-03; WICHE High School Graduates, 2000
Utah Ohio Iowa Idaho Maine Texas Illinois Hawaii Alaska Florida Indiana Kansas Virginia Oregon Arizona Nevada Georgia Missouri Vermont Montana Alabama Michigan Colorado Maryland Kentucky Arkansas Wyoming Delaware California Nebraska Louisiana New York Wisconsin Oklahoma Minnesota Mississippi Tennessee New Jersey Connecticut Washington New Mexico North Dakota West Virginia Rhode Island Pennsylvania United States South Dakota North Carolina South Carolina Massachusetts New Hampshire Number of 4-Year Degrees in Health Sciences Awarded (2003) Per 100 High School Graduates Six Years Earlier, 2000 Source: NCES-IPEDS Completions 2002-03; WICHE High School Graduates 1997
Number of 4-Year Degrees Awarded (2003) Per 100 High School Graduates Six Years Earlier, 2000 Source: NCES-IPEDS Completions 2002-03; WICHE High School Graduates, 1997
10.8 6.2 3.3 Utah Iowa Ohio Idaho Texas Maine Illinois Alaska Hawaii Florida Indiana Virginia Kansas Oregon Arizona Nevada Georgia Missouri Vermont Montana Alabama Michigan Colorado Maryland Kentucky Arkansas Wyoming California Delaware Nebraska Louisiana New York Wisconsin Oklahoma Minnesota Mississippi Tennessee New Jersey Washington Connecticut New Mexico Rhode Island West Virginia North Dakota Pennsylvania United States South Dakota North Carolina South Carolina Massachusetts New Hampshire We Need to Get More Adults to Enroll in Further EducationPart-Time Undergraduate Enrollment as a % of Population Age 25-44, 2000 5.2 Source: NCES-IPEDS, U.S. Census Bureau
POSTSECONDARY PARTICIPATION AND COMPLETION Top States Chance for college by age 19 53% 32% 18- to 24-year-olds enrolling in college 41% 36% 1st year community college students returning their 2nd year 62% 51% Students completing a bachelor’s degree within 6 years 64% 47% HI
We Need Better Outcomes • We are less successful than the top states in the rate of persistence and graduation of adult students. • There are major barriers to adult degree completion • Inadequate financial support for low and moderate income individuals • Insufficient employer incentives to support employee continuing education • Lack of affordable child care • Scheduling conflicts between work and school • Lack of preparation and curricular options
Education Pipeline Performance An Insufficient Number of Individuals Prepared for Further Education or Training
We Need Better Outcomes • We have a leaky education to work pipeline, resulting in an insufficient number of individuals prepared for further education or training.
Key Transition Points in the Education to Work Pipeline • Complete High School • Enter College • Finish College • Enter the Workplace
Student Pipeline - 2002 Of 100 9th Graders, How Many… Source: The National Center for Public Policy and Higher Education 2004
We are a top state when we measure rate of HS graduation. • We are far behind, however, when we look at actual student performance in skills critical to success in post-secondary education and the new jobs. • Despite improvement, Hawaii lags many other states in preparing students to succeed in college.
Age 25-34 Age 45-64 55% 45% 35% 25% 15% Iowa Utah Ohio Idaho Texas Maine Illinois Alaska Florida Hawaii Indiana Oregon Kansas Virginia Arizona Nevada Georgia Missouri Vermont Montana Michigan Alabama Colorado Maryland Kentucky Wyoming Delaware Arkansas California Nebraska Louisiana New York Wisconsin Oklahoma Minnesota Mississippi Tennessee Washington Connecticut New Jersey New Mexico Rhode Island West Virginia North Dakota Pennsylvania South Dakota UnitedStates North Carolina South Carolina Massachusetts New Hampshire Differences in College Attainment (Associate and Higher) by Age Group Source: U.S. Census Bureau, 2000 Census 41
Differences in College Attainment (Assoc. and Higher) by Age Group—Hawaii, U.S. and Leading OECD Countries, 2004 Source: OECD, Education at a Glance 2005
The Bottom Line • We Need to Enhance the State’s Stock of Human Capital • Improved Competencies of High School Graduates • Increased Skills of Adults with Less than a High School Education • Improve Participation and Graduation Rates of College Students • (continued)
The Bottom Line (cont.) • We Need to Prepare More Skilled Workers in Critical Need Areas • Nursing/Allied Health • Teachers • Science Technologies • We Need to Expand and Diversify the State’s Economy • Technology Transfer • Rapid Response to Employer’s Training Needs
The Bottom Line (cont.) We Nee to Address These Issues as Appropriate in All Parts of the State
Education and Training Pay Investment in Education Returns Future Economic Benefits
Education and Training PayIncreased Employability Source: Bureau of Labor Statistics
Education and Training PayIncreased Annual Earnings Source: Bureau of the Census
12,000 10,400 10,000 9,000 8,300 8,200 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 7,900 7,700 7,300 7,200 7,100 7,000 7,000 7,000 7,000 7,000 6,800 6,700 6,700 6,600 6,500 6,200 6,100 6,100 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 5,800 5,700 6,000 5,400 5,300 5,100 5,000 4,600 4,400 4,000 4,000 4,000 3,000 0 Ohio Utah Iowa Idaho Texas Maine Alaska Illinois Hawaii Florida Kansas Oregon Nevada Arizona Virginia Indiana Georgia Missouri Montana Vermont Alabama Michigan Colorado Maryland Arkansas Kentucky Delaware Nebraska Wyoming California Louisiana New York Wisconsin Oklahoma Minnesota Mississippi Tennessee New Jersey Washington Connecticut New Mexico Pennsylvania Rhode Island West Virginia North Dakota United States South Dakota North Carolina Massachusetts South Carolina New Hampshire Education and Training Pay Difference in Median Earnings Between a High School Diploma and an Associate Degree, 2000 Source: U.S. Census Bureau, Public Use Microdata Samples, 2000
20,000 19,000 18,000 18,000 18,000 17,200 16,800 15,300 15,200 14,500 15,000 14,300 14,000 14,000 14,000 14,000 13,600 13,500 13,400 13,300 13,100 13,000 13,000 13,000 13,000 13,000 13,000 12,600 12,400 12,200 12,200 12,000 12,000 12,000 12,000 12,000 12,000 11,700 11,400 11,200 11,200 11,100 11,000 11,000 10,800 10,700 10,000 10,000 10,000 9,400 9,000 9,000 8,300 7,600 5,000 0 Ohio Utah Iowa Idaho Texas Maine Illinois Alaska Hawaii Florida Kansas Oregon Nevada Arizona Virginia Indiana Georgia Missouri Montana Vermont Michigan Alabama Colorado Maryland Arkansas Kentucky Wyoming Nebraska New York Delaware Louisiana California Wisconsin Oklahoma Minnesota Tennessee Mississippi New Jersey Washington Connecticut New Mexico Pennsylvania Rhode Island West Virginia North Dakota United States South Dakota North Carolina Massachusetts South Carolina New Hampshire Education and Training Pay Difference in Median Earnings Between a High School Diploma and a Bachelor’s Degree Source: U.S. Census Bureau, Public Use Microdata Samples, 2000