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The Skills Gap Problem: Interim Literature Review

Presentation to the Indiana Career Council August 19, 2013. The Skills Gap Problem: Interim Literature Review. What is the issue? Why does it matter? How can we narrow the gap?. Dr. Jerry Conover, Director Indiana Business Research Center. What is meant by “skills gap?”.

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The Skills Gap Problem: Interim Literature Review

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  1. Presentation to the Indiana Career Council August 19, 2013 The Skills Gap Problem:Interim Literature Review What is the issue? Why does it matter? How can we narrow the gap? Dr. Jerry Conover, Director Indiana Business Research Center

  2. What is meant by “skills gap?” • A loosely-defined term, referring to a range of things • Basic concept: a mismatch between the capabilities employers need in workers and what job applicants or incumbent workers currently offer • Capabilities may include: • “hard skills” – specialized or technical expertise or knowledge • “soft skills” – interpersonal & communications skills, adaptability, problem-solving ability, professional attitude, motivation, etc. • Sometimes used very broadly • Overall level of educational attainment • General traits & behaviors such as reliability, “work ethic,” etc.

  3. Why does it matter? • Brain drain: mismatched supply & demand for talent • Indiana exports bachelor’s degrees but imports people with 2-yr degrees & certificates • By 2018, Indiana will have demand for 123,000 STEM-related jobs – will we have enough qualified workers? • 65% of the new jobs created this decade will require at least some post-secondary education • Nearly half of the new jobs are considered middle-skill, requiring an associate degree or certificate • Education programs targeting middle-skill technical jobs have high enrollment but low completion rates

  4. More reasons the skills gap matters • Lean businesses prefer hiring those who already have the skills, rather than provide on-the-job training • Some high-tech and advanced-manufacturing industries say it’s hard to find qualified workers in Indiana • The unemployment rate will stay uncomfortably high until more people have the skills firms need

  5. Employers say they need: • Workers with specific hard skills & professional certifications • “Renaissance technicians” with well-developed critical-thinking & problem-solving skills, familiarity with several disciplines, and ability to optimize production • Universities to develop post-baccalaureate courses geared to industry-specific topics

  6. Challenges to guiding students early • Many high-school & college students don’t see a clear link between their program of study and a career path they can build a future on • K-12 students receive little career guidance, so they’re unsure which courses and programs to pursue • Few opportunities in traditional high-school and college curricula to develop technical skills or experience • CTE programs are often downplayed or disparaged – they can be a key element in preparing tomorrow’s workforce

  7. How can we close the gap? • More, early emphasis on career options & pathways • Better career guidance for undergraduate students • Helping those who didn’t complete high school or college to resume studies toward credentials; consider prior-learning experiences since they left school • Explore programs bridging the last two years of high school with one or more years of post-secondary training leading to industry-recognized credentials • Greatereducator engagement with employers to develop and implement work-based learning experiences, starting as early as middle school with job shadowing & projects

  8. Closing the gap (continued) • Develop paid work-based learning experiences (internships) for high school students • Higher-education curriculum development should seekguidance from industry leaders to ensure that graduates gain marketable skills • A variety of policies have been proposed to make higher education more affordable and career-relevant • Broaden eligibility for financial aid & OJT assistance • Establish & support Lifelong Learning Accounts program • Improve articulation of Associate of Applied Sciences degrees with applications-oriented baccalaureate programs

  9. What’s left to figure out or do? • How best to assess skills in a robust, yet practical, way • Monitoring skills gaps systematically without repeated, expensive surveying? LMI data-based skill modeling? • Best practices and outcomes of successful employer engagement and CTE programs around the nation • Use IWIS to analyze the employment outcomes of different programs of study, types of learning situations, retraining programs, etc. • Determine which approaches have the best impacts • and…?

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