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EASTERN REGIONAL HEALTHCARE SUMMIT. ECONOMIC GROWTH THROUGH SECTOR STRATEGIES. GOVERNOR’S COUNCIL STRATEGIC PLAN. VISION Oklahoma has a competitive advantage through integrated workforce and economic development objectives. MISSION
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EASTERN REGIONAL HEALTHCARE SUMMIT ECONOMIC GROWTH THROUGH SECTOR STRATEGIES
GOVERNOR’S COUNCIL STRATEGIC PLAN VISION Oklahoma hasa competitive advantage through integrated workforce and economic development objectives. MISSION Advances demand-driven workforce and economic development systems. RESULTS Achieves wealth-creation for business, individuals, and communities throughout Oklahoma.
Workforce Trends Affecting Industry • “Smarting up” of jobs • Need for broader array of skills – esp. “how to learn” • Need for continuous learning of technical skills • Increased need for basic skills & entrepreneurial work ethic • Strong academics • Self-motivation, responsibility, esteem, confidence • Not just your “8 to 5” worker • Increasingly flexible workplace • Adaptability and support for learning • Teamwork and creativity in problem solving • More democratic/less hierarchical • Aging demographics
Issues • Worker Shortages • Skills Shortages LEARNING IS THE ONLY OPTION!
Oklahoma’s Projected Population, 2005-2015 • 18 to 24 year olds decrease -5% • 25 to 44 year olds decrease -2% • 45 to 64 year olds increase +7% • 65+ year olds increase +19%
Annual employment growth, projected 2004-2014 1.30%-1.50% 1.20%-1.29% 1.11%-1.19% 0.98%-1.10% Source: U.S. Bureau of Labor Statistics
From 1994-2004, OK met its employment demand largely by population growth… Average annual growth in employment and working age population, 1994-2004 Percent Source: U.S. Bureau of Labor Statistics, U.S. Census Bureau
…but also by increased labor force participation United States Oklahoma Source: U.S. Bureau of Labor Statistics
Non-metro Oklahoma may have an advantage: an untapped labor supply Source: U.S. Census Bureau
OKLAHOMA’S ADVANTAGE “GROWING OUR OWN”
What’s at Stake? • For Business • Expansion • Quality workforce • For Oklahomans • Higher wages • Quality Jobs • Better standard of living • For Communities • Population growth • Economic vitality • Oklahoma’s reputation
OUTCOMES FOCUS ON SUPPLY AND DEMAND OF LABOR IN RELATION TO ECONOMIC DEVELOPMENT NEEDS A. Have a competitive labor pool based on verified industry and economic development needs. B. Build collaborations and alliances that will better leverage resources and provide a comprehensive state response to business.
Economic Development Depends on Talent Development and Management: How do we get it? • Recruit it • Retain it - Graduate Retention • Develop it / Grow our Own • Education/ Training Pipeline • Demand Driven education system • Demand occupations • Industry sector development
There will be a greater need to: • Upgrade the skills of workers at all levels: existing, transitioning and emerging workers • Retrain middle income existing workers • Upgrade skills of low wage and low-skilled workers • Retrain middle age and seniors • Retrain AND REEMPLOY dislocated workers • Retain and Retrain Exiting Military
There will be a greater need to: • Retrain retirees • Continuous development of innovative skills through lifelong learning • Increase percent of disabled workers • Transition offenders into workforce • Increase of dropouts recovered and high school completion success
Oklahoma Solutions • Industry Sector Studies • Career Management System • Oklahoma’s Career Readiness Certificate • Workforce Board Development/ Certification • State Partnership Agreement • Talent Development strategies • Oklahoma Advantage Centers • Grow Our Own • State Youth Council for Workforce Initiatives
STRATEGIC PLANS • STATE WORKFORCE TWO-YEAR PLAN • STRATEGIC WORKFORCE AND ECONOMIC DEVELOPMENT PLAN 2007 T0 2011 (INCLUDING YOUTH COUNCIL) • RELATED AGENCY, BOARD, COMMISSION STRATEGIC PLANS • LOCAL WORKFORCE BOARD PLANS
Why are manufacturers rejecting job applicants? • Inadequate basic employability skills – 69% • Inadequate reading/writing skills – 32% • Inadequate math skills – 21% • Inadequate oral communications skills- 17.5% Source: National Association of Manufacturers – The skills gap 2004
Most Serious Skill Deficiencies Current Employees • Poor basic employability skills – 59% • Poor reading/writing skills – 32% • Inadequate math skills – 26% • Inability to communicate verbally- 25% Source: National Association of Manufacturers – The Skills Gap 2004
21st Century Curriculum • Analytical and problem solving skills • Business organization and environment • Communications skills • Core hardware/ Software computer skills • Project and process flows • Content (engineering, accounting etc.) • Oklahoma State of the Workforce Report
21st Century Employability Skills • Communication • Organization • Team contribution and leadership • Team collaboration • Critical thinking and decision making • Self-directed and continuous learning • Customer relations • State of the Workforce Report
SOFT OR JOB SUCCESS SKILLS • SOCIAL SKILLS IN THE WORKPLACE • APPROPRIATE WORKPLACE BEHAVIOR • ANGER MANAGEMENT • TRANSPORTATION, HOUSING AND WELLNESS AS FACTORS IN JOB SECURITY • AVOIDING DESTRUCTIVE BEHAVIOR • COMMUNICATION SKILLS • PROBLEM SOLVING AND FLEXIBILITY
When applications meet the education requirements, how much difficulty has your firm had finding employees with the following soft skills? Source: Oklahoma Workforce Employer Survey: Oklahoma Department of Commerce, 2006
PERCENT OF EMPLOYERS WHO HAVE MUCH/SOME DIFFICULTY – SOFT SKILLS
PRODUCTIVITY RISES WITH EDUCATION • When education level is increased one-year, productivity rises: • Manufacturing workers: 8.0% • Non-manufacturing workers: 13% • When average educational attainment is increased by 10% (about one grade level): • Firms experience a 8.6% rise in productivity National Center on the Educational Quality of the Workforce
U.S. and Oklahoma job growth is projected to be fastest among high-paying occupations Projected Annual Job Growth by Average Pay Through 2012 Source: U.S. Bureau of Labor Statistics
Oklahoma must ensure potential workers obtain the training necessary to succeed Source: U.S. Bureau of Labor Statistics
15 U.S. industries projected to ADD jobs the fastest through 2014* * Among industries with more than 100,000 employees High-tech services 2. Software publishers 8. Computer systems design Health and social services 1. Home health care services 4. Residential care facilities 9. Outpatient & laboratory services 10. Child day care services 12. Offices of health practitioners 15. Rehabilitation services Business services 3. Management consulting services 5. Facilities support services 6. EMPLOYMENT SERVICES 7. Office administrative services 13. Accounting, tax, & payroll services Education services 11. Other educational services 14. Colleges & universities Source: U.S. Bureau of Labor Statistics
15 U.S. industries projected to SHED jobs the fastest through 2014* * Among industries with more than 100,000 employees Nondurable manufacturing 1. Cut and sew apparel mfg. 2. Fabric mills 3. Basic chemical mfg. 6. Rubber product mfg. 8. Synthetic materials mfg. 13. Pulp & paper mills 14. Petroleum & coal mfg. Durable manufacturing 4. Industry machinery mfg. 5. Electrical equipment mfg. 7. Foundries 10. Computer mfg. 12. Metalworking machinery mfg. 15. Other machinery mfg. Natural resources 9. Sawmills & wood preservation 11. Crop production Source: U.S. Bureau of Labor Statistics
SHIFT IN THINKING FROM: OKLAHOMA HAS WONDERFUL PRODUCTIVE WORKERS WITH A STRONG WORK ETHIC… TO: OKLAHOMA HAS A HIGHLY SKILLED PRODUCTIVE WORKFORCE WITH A STRONG WORK ETHIC
2004 – 78% NEEDED WORKERS WITH HIGH SCHOOL DIPLOMA 2006 – 71% SEE INCREASE IN NEED FOR WORKERS WITH POST-SECONDARY CREDENTIAL OR DEGREE
HOW DO WE GET THERE? • IMPLEMENT INDUSTRY SECTOR FINDINGS • PIPELINE ISSUES • REGIONAL ISSUES • POLICY ISSUES • LEGISLATIVE ISSUES EXISTING WORKER SKILLS SHORTAGE • SKILLS UPGRADES FOR PRESENT NON-PARTICIPATING WORKERS RETRAINING DISLOCATED WORKERS • WORKER RECRUITMENT • YOUTH (EMERGING WORKER ISSUES)
IMPLEMENT SECTOR STRATEGIES WHAT IS AN INDUSTRY SECTOR/CLUSTER? A COLLECTION OF COMPANIES AND ORGANIZATIONS WITHIN AN INDUSTRY, COLLABORATING AS A COHESIVE UNIT TO WORK WITH EDUCATORS, TRAINING PROVIDERS AND A REGIONAL WORKFORCE SYSTEM TO ADDRESS INDUSTRY SPECIFIC WORKFORCE NEEDS.
Sector Strategy Vision- Goals • Use sector-based strategies to integrate workforce and economic development • Create a sense of urgency regarding the current and future worker and skills shortage crises • Create the Desired State: Employers report that there is a plentiful, skilled & productive workforce • Look at specific populations within Oklahoma and map what needs to be done to achieve the “Desired State”
Purpose Of Sector Strategies • To help states and communities develop a sector-based approach to workforce issues • To provide an opportunity to learn from other states and national experts • To provide focus to workforce issues and help effect policy changes • To increase the number of skilled workers needed by particular industry sectors
Desired State: Plentiful, skilled productive workforce Manufacturing Health Care Aerospace Career Pathways Strategy to enter and then to advance Career Pathways Strategy to enter and then to advance Career Pathways Strategy to enter and then to advance Special Populations: Working Poor, Re-entry, Middle School students, Parents, Minority groups, High School students and Graduates, College students and Graduates, Tech School students and Graduates, Community College students and Graduates, Underemployed, Unemployed, Disabled, Drop Outs, etc.
Strategies Identified to Date: • Develop Career Pathways and Career Explorations strategies starting in early grades • Parental involvement • Internships and mentoring • Career maps within Industry sectors • Career Information Specialist • Career Management system as a virtual tool- providing consistent info • Create a paradigm shift toward lifelong learning and a high value placed on skills development • Branding marketing and communications effort • Stakeholder by-in and support- communicated throughout Education, ED and Employment • Valuing Certifications • Career Management system (OK3e) as a key tool • Bridging employment, education and economic development
Strategies Identified to date: • Create seamless service delivery models • A framework for all entities to work within- toward common goals • Silo busting strategies- seamless service delivery process to business • Integrate Workforce and Economic development regionally • Develop specific strategies for: • Existing worker development • Emerging worker development • Transitioning worker development • Keeping Oklahoma workers in Oklahoma & bringing Oklahomans back to Oklahoma
SECTOR POLICY ACADEMY GOALS • DEVELOP CAREER PATHWAYS AND CAREER EXPLORATION STRATEGIES THAT ALL OKLAHOMANS CAN ACCESS • CREATE A PARADIGM SHIFT AMONG OKLAHOMANS AND EMPLOYERS TOWARD VALUING LIFELONG LEARNING.
SECTOR POLICY ACADEMY GOALS • CREATE COORDINATED, RESPONSIVE AND PROACTIVE SERVICE DELIVERY MODELS TO MEET THE NEEDS OF INDIVIDUALS AND EMPLOYERS (AT THE STATE AND REGIONAL LEVELS). • ENSURE OKLAHOMA EMPLOYERS HAVE ACCESS TO A SKILLED WORKFORCE AND THAT OKLAHOMANS HAVE THE EDUCATION AND TRAINING TO SUCCEED.
INCREASE GRADUATES AT ALL LEVELS LEARNING IS THE ONLY OPTION!
Fall 1997 College Freshmen 93-94 Oklahoma 9th Grader’s Progression into High School and College (number) 100% 76% 42% 30%
EMPLOYMENT OUTCOMES REPORT Average Salary of 1999-00 Bachelor Degree Holders After Five Years: • Engineering ($49,150) • Computer Science ($47,568) • Transportation ($46,738) • Health professions ($44,773) • Engineering technologies ($41,537). “Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime”—Author unknown
Critical Skill Shortages InitiativeProcess plan Identify sectors & industries Identify critical skill shortage occupations Determine root causes of shortages Develop regional solutions Implement solutions to fill gaps
Healthcare Strategies Research / Study Report With Recommendations Governor’s Task Force Governor’s Council Regional Strategies Skills Panel Resource Center Steering Committee Funding Policy Change
Texoma Regional ConsortiumEXAMPLE A Two-State Regional Consortium for Joint Economic and Workforce Development Strategic Planning