Washington State’s Perspective: Strategies for Economic Stabilization and Renewed Economic Growth

1. Washington State’s Perspective: Strategies for Economic Stabilization and Renewed Economic Growth René Ewing Governor’s Special Assistant for Management and Quality Improvement December 6, 2001

2. Overview • Our economy, our challenges • How we’re using training resources to respond • How we’re sustaining public-private partnerships • How we’re maintaining progress in difficult times

3. Software and Jets drive Washington’s economy(2000 Annual Average) 4.7% 16.1% Source: Employment Security Department, LMEA

4. The state’s rate of nonagricultural employment growth has slowed September to September change - Seasonally Adjusted 10-year Average Source: Employment Security Department, LMEA

5. 2001 unemployment rate rose atyear’s end, projected to remain high Seasonally Adjusted 2002 Forecast Source: Employment Security Department, LMEA

6. Our challenges • Respond to structural changes in economy, i.e., aluminum and pulp and paper industries, Boeing, dot.com bust • Respond to cyclical nature of economic downturn

7. How are we responding? Washington has a better safety net than many other states: • Red Flag report and rapid response teams • Worker Retraining Program • Training Benefits Program • Short-term customized training • WorkSource one-stop system on the web: www.go2worksource.com

8. Red Flag report, rapid response Red Flag report • Provides status of projected and actual dislocations • Sent twice monthly to workforce investment councils, key state agencies Rapid response • Teams active in all areas of the state • Takes services to employers before layoffs

9. Worker Retraining Program • Annually budgeted for 5,400 FTEs at two-year colleges, 550 FTEs at private career schools • Results: • Increasing enrollment in high-wage programs • High post-program wage recovery, employment • Program represents 13 percent of colleges’ workforce training FTEs

10. Training Benefits Program • For dislocated workers enrolled in full-time training • Up to 52 weeks of unemployment insurance benefits • Dislocated aerospace, timber and fin fishing workers eligible for 74 weeks of UI benefits

11. Short-term customized training • Pilot program • Short-term, employer-based training • Designed to avert dislocation • $1.3 million to workforce development councils this program year

12. WorkSource one-stop system • www.go2worksource.com – past six months • Number of resume postings, job searches, job applications increasing • Number of jobs posted, resume searches declining • Most ever number of user sessions in October – 106,399 • Significant community partnerships including state’s two-year colleges

13. Our strategy in current situation:Use resources effectively • May be additional federal money in economic recovery package • Governor and state’s community and technical college system are working to add training capacity at two-year schools • Need for additional training will increase pressure on our two-year college system

14. After the recession, we’ll still havea skills shortage to address • Labor force growth is slowing • We’ll continue working with business and industry so they we are positioned to meet their needs • How? Supporting key industry clusters

15. Attending to our future: youth • We want to help young people focus on their future career • Partner with the K-12 system on new program standards for career and technical education • Example of success – Pierce County Careers Consortium

16. Sustaining public-private partnerships • Continue our industry cluster strategy • Funding eight more skill panels this year • Community and technical colleges responding to business needs • Governor’s Competitiveness Council making recommendations on human capital

17. Maintaining progress in difficult times • Strengthen partnerships with workforce development councils • Encourage councils to use strategic management tools • Develop good incentive policies