THE JOB MARKET Current and Future Trends Source: Industry Workforce Needs Council www.iwnc.org

2. THE JOB MARKETCurrent and Future TrendsSource: Industry Workforce Needs Councilwww.iwnc.org

3. Population Differences • Up to 78 million Baby Boomers will be retiring from the U.S. workforce • Only 40 million from “X” and “Y” generations will be available to replace them

4. Skills Gap • Workplace will require advanced technical skills through high tech developments • Current workforce skills need updating to keep up with changing demands • Future workforce needs to be prepared for upcoming trends

5. By 2018 • 90% of fastest growing jobs will require training beyond high school • 31% of small business owners and 41% of manufacturers can’t fill jobs • Production costs in China will be equal to the U.S.

6. On-Shoring • Increased wages in China • Increased shipping costs due to oil prices • Natural gas in Asia costs 4 times more than US • Decreased quality • Expensive and time consuming having engineering separate from production • Tax credits/government incentives

7. Education Challenges • Teacher shortages (particularly CTE) • Less time for CTE • Academic achievement focus • 4-year degree mentality • Scheduling obstacles • Reduced funding • Lack of parental support • Disconnect with industry (esp. manufacturing)

8. Manufacturer Challenges • Negative perception • Employee market • Employees being recruited by competitors • Education steering students towards degree • Lack of time • Employees lacking in technical skills and/or soft skills

9. College by the Numbers 100 students enrolled in a four year institution -35 drop out first year (35%) 65 -24 don’t complete (37%) 41 complete (It took 19 students 6 years to complete a bachelor’s degree) • What happened to the other 59 students? • Average $30,000 student loan debt (1 trillion total) Source: USA Today

10. How is Kentucky going to weather“The Perfect Storm”? Apprenticeships: The other 4-year degree

11. What is Registered Apprenticeship • A centuries old concept of “EARN and LEARN”. • A U.S. Department of Labor program in partnership with businesses and labor organizations. The National Apprenticeship Act of 1937 authorized the Federal government, in cooperation with the states, to oversee the nation’s Apprenticeship System. • Provides on-the-job training and industry-specific classroom education producing highly skilled workers. • Minimum 144 hours a year related classroom instruction. • Programs range from 1-5 years.

12. What is Registered Apprenticeship • Pathway to a career. • Creates beneficial programs for both apprentices and their employers. • Training programs tailored to the needs of the industry or organizations. • Range in size from one apprentice to hundreds. • Apprenticeship Programs can be set up as time-based, competency-based, and/or a combination of both. • competency-based, and/or a combination of both.

13. Registered Apprenticeship by the numbers • Over 1200 occupations recognized by the USDOL. • Approximately 500,000 apprentices nationwide, 2500 in KY. • Over 250,000 employers have RA programs. • 150 Individual and Joint Sponsored Programs in KY representing over 1000 employers • 70% Non-Union 30% Union • 40% Construction Related • UPS, Ford, CVS, Corning, Dana, Mazak, Jim Beam Brands, LG&E, MAG, Phillips Lighting, Reynolds Metals, IBEW, IEC, Pipefitters, Carpenters, Iron Workers, Sheet Metal Workers, ABC, Messer Construction

14. Highly Skilled Workforce • All Registered Apprenticeship programs are based on industry standards, and apprentices earn nationally recognized certifications upon completion

15. Registered Apprenticeship in KENTUCKY • Administered by the Labor Cabinet • Part of the strategic plan of the Kentucky Workforce Investment Board • Partnerships with Office of Career and Technical Education, KWIB, Kentucky Community and Technical College Systems, Kentucky Career Centers, Cabinet for Economic Development, Education and Workforce Development Cabinet, Adult Education, Job Corps, YouthBuild, Local WIB’s

16. Why Apprenticeships? • Kentucky initiative to replicate European model of apprenticeships • Industry-driven “Grow Your Own” approach • Earn as you learn; no student loans • Nationally recognized certificate • Highly skilled employees • Reduced turnover/increased productivity • Upgrade skills of current workforce

17. Why Pre-Apprenticeship? Infrastructure in place using CTE No costs involved Provide a foundation for employer to build upon Provide a pipeline of skilled graduates for local industry

18. How it works… • Employer registers apprenticeship program with Labor Cabinet • Employer works with school to identify students/selection process • Employer chooses at least 4 courses; one course needs to be a co-op • Employer determines if student completes successfully • Student to receive industry certification; on-the-job hours are credited • Post-secondary requirements determined by employer

19. Pre-Apprenticeship:The Employer’s Advantage • Employer selects students for program • Employer selects courses • Employer selects post-secondary requirements • Employer develops a loyal employee • Works with any number of trainees • Potential for tax incentives

20. Pre-Apprenticeship:The Student’s Advantage Student will get paid for on-the-job training; no student loans Student’s on-the-job hours will count toward apprenticeship (comparable to dual credit) Student will receive an industry certification Student’s successful completion will result in acceptance in apprenticeship program Student will become a journey-person and receive a portable credential that is recognized nationally Appeals to hands-on learner

21. Pre-Apprenticeship:The District’s Advantage • Preparing students for the workforce • Industry certification will be measured in College and Career Ready accountability index • Students will be a completer based on Kentucky’s Perkins plan • Promotes positive partnerships with local businesses and community • Helps create and retain local jobs for students • Engages the hands-on learner

22. Staying on TRACK to Meet College and Career Readiness GoalsKentucky Board of Education Goals Increase the percentage of students who are college- and career- ready from 34 to 67 percent by 2015. Increase the Average Freshman Graduation Rate from 76 to 90 percent by 2015.

23. KDE College Ready, Career Ready, and College AND Career Bonus

24. Industry Certification List • Successful completion of the TRACK program serves as a Kentucky approved industry certification for Career Readiness

26. Obstacles/Solutions • Obstacle:Parents and educators not aware of apprenticeship benefits • Solution:KWIB marketing campaign; economic development and professional association outreach • Obstacle:Need to increase number of registered apprenticeship programs • Solution:Labor Cabinet and OCTE partnership • Obstacle:Employer hesitant to invest time • Solution: Answer to skilled employee shortage

27. Obstacles/Solutions • Obstacle:Working with students under 18 • Solution(s): • Youth education waiver • Look at alternate insurance carriers who allow youth education opportunities • District to employ student; reimbursed by company • Employer sends someone to school to work with student • Mentoring/job shadowing

28. Successes • Kentucky students on TRACK to a career pathway! • Fifteen companies participating in fall 2013 pilot • Breckinridge County ATC

29. For more information… www.KentuckyApprenticeship.com Click on TRACK logo

30. THANK YOU!