Linking Economic and Workforce Development: National & Regional Perspectives September 18, 2012

Linking Economic and Workforce Development: National & Regional Perspectives September 18, 2012

Key Points • Postsecondary education is the best insurance policy in an uncertain global economy • Talent pipelines built on strong public-private partnerships will define winning regions • Economic developers have a key role to play—linking, leveraging, and aligning

http://tipstrategies.com/geography-of-jobs/

http://mjperry.blogspot.com/2012/06/chart-of-day-education-matters.htmlhttp://mjperry.blogspot.com/2012/06/chart-of-day-education-matters.html

http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/CollegeAdvantage.FullReport.081512.pdfhttp://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/CollegeAdvantage.FullReport.081512.pdf

Source: US Bureau of Economic Analysis, US Census Bureau

Source: US Bureau of Labor Statistics, US Census Bureau

Education: What’s at stake? • 37% (7.5M) of all new jobs in US expected by 2020 will require postsecondary degree* • 16 out of top 25 fastest growing occupations in US will require postsecondary degree • 91 out of top 100 highest paying occupations in US require postsecondary degree Springfield (MSA): 31% of workforce age 18-64 has associate’s degree or higher—86,000 out of 273,000—will it be enough to compete for the jobs of the future? Source: U.S. Bureau of Labor Statistics. *Degree as used here includes one or two-year certifications.

“49% of business owners hired or tried to hire in the last three months and 37% reported few or no qualified applicants for open positions.” http://thehill.com/blogs/on-the-money/economy/248355-skills-gap-is-hampering-labor-market

Our #1 Challenge: Skills Gap 67% of employers reported that high unemployment is not making hiring easier. Lack of technical skills (advanced welding, tool programming) is largest barrier. http://www.areadevelopment.com/AnnualReports/Winter2012/26th-Corporate-Consultants-RE-survey-results-287677888.shtml

Where the Jobs Are Is Where the Skills Aren’t “A serious mismatch is developing between the kinds of skills needed for areas of high projected job growth and the skills that will be available in the U.S. labor force.” September 19, 1988

Texas: Staring Down the Skills Gap Source: EMSI

Source: U.S. Bureau of Labor Statistics

Key Points The talent pipeline is broken, especially for skilled trades. Employers are defining job requirements in such a way that applicants need to have done the job already. Limited number of formal apprenticeship programs, esp. in manufacturing.

Are these realistic expectations about employer needs and how the labor market works?

http://www.prosperity2020.com

http://www.louisianaeconomicdevelopment.com/incentives--programs/led-faststart.aspxhttp://www.louisianaeconomicdevelopment.com/incentives--programs/led-faststart.aspx

regional intermediary leading cluster effort Northeast Ohio Speed‐To‐Market Accelerator will employ a step‐by‐step process to help accelerate the commercialization of products, increase the global competitiveness of cluster companies, attract additional private capital to the region, and attract students, incumbent workers, and the unemployed to educational and training programs. entrepreneurship workforce industry http://www.nortech.org/news-room/press-releases/northeast-ohio-winner-of-white-house-jobs-and-innovation-accelerator-challenge

Taking action • Re-imagine the role of economic development organizations in the talent pipeline—start with how we talk about workforce development • Adopt measureable human capital goals as part of your organization’s strategic plan • Read Cappelli’s book—what public-private partnerships are needed in Springfield?

http://www.austinchamber.com/education-talent/education-initiatives/http://www.austinchamber.com/education-talent/education-initiatives/

Modeled after apprenticeship programs in Germany Cost to school district: $15K of federal Title I funds Company promising that 75% of participating students will be offered full-time jobs as well as tuition assistance http://www.tuscaloosanews.com/article/20120914/NEWS/120919880/1291/

Government-funded programs love planning exercises—look for opportunities to align economic and workforce strategies. http://www.pennyrilefuture.com

Think creatively about how you can use data to align goals and market workforce assets. http://www.wfscapitalarea.com/images/stories/full%20report_state%20of%20workforce.pdf

http://www.reditn.com/redi-college-access

Key Takeaways • Advocate for alignment in #econdev, #wkdev, and education whenever possible, especially with state and federal policy makers • Shovel-ready sites & work-ready jobs—regions able to respond quickly with scalable training customized to employers will stand out • Keep doing what you’re doing

Brian Kelsey, Principal • Civic Analytics LLC • brian@civicanalytics.com • 512-731-7851 http://civicanalytics.com @brianjkelsey linkedin.com/in/brianjkelsey

Linking Economic and Workforce Development: National & Regional Perspectives September 18, 2012