Transformation, Integration, and Workforce Intelligence April 11, 2008

1. Transformation, Integration, and Workforce Intelligence April 11, 2008

2. Presenters • Stewart Knox, Executive Director - North Central Counties Consortium (Workforce Investment Board) and Grant Coordinator - Northern California WIRED • Steve Saxton, Chief, Labor Market Information Division, California Employment Development Department

3. Imperatives for Change • Respond to Employer Demand • Address Aging Populations • Prepare Citizens for Global Skill Markets • Cope with Limited Resources • Demonstrate System’s Value

4. Change Focus • Reinvent Services and Delivery—Improve Skills of All • Build on Partnerships—Integrate Customer Pool and Flow • Redefine and Improve Results—Understand Market Demand • Base Decisions on Data • Improve “Workforce Intelligence”

5. New Workforce System Vision Bottom/Up • New Economy “Skill-Match” • Business Customers Skilled Workers • Individual Customers Need New Skills • Workforce System Maturation • Private Sector Expectations

6. Information Action Plan • Form broad-based Workforce Intelligence Work Group representing stakeholder organizations • Conduct an environmental scan and gap analysis • Identify workforce information needed, what is available, where are the gaps • Develop an implementation plan • Identify resources and priorities • Recommend solutions

7. Workforce Intelligence Goals • Provide policy makers with access to information and resources that help them address workforce and economic development issues • Provide employers with access to better information about the local economy • Provide information about available resources that can help every person become a better job applicant

8. Targeted Information Uses • Administrative planning • Business Services • Client Services • Self Services

9. Administrative Planning Key Questions— • What industries are significant or developing now? What industries do we anticipate being significant in the future? • What are the skill needs and skill gaps we are experiencing now? What do we anticipate in the future? • What changing forces will affect the conduct of business, now and in the future?

10. Administrative Planning Information Gaps— • Skill supply • Educational system capacity

11. Business Services Key Questions— • What are the skill needs—by industry? • What are the driving technologies and business processes? • Which companies to target—demographics/connections/churning? • How is small business different? • What does business need? • Where is business finding talent? • Which jobs provide a sustainable wage, including benefits

12. Business Services Information gaps— • Knowledge of business needs • Information about labor supply—who they are and where they are • Knowledge of available benefit packages

13. Client Services Key Questions— • Best ways to conduct client assessments? • How to relate assessment outcome to opportunities—jobs, wages, long term strategy—likelihood of finding a job—moving to employment and/or training leading to a career • How to look for work (job search and interviewing skills)? or • How to become ready for selected work path (supportive services, training, transportation, etc.)?

14. Client Services Information gaps— • Career ladders • Currency of data • Geographic specificity

15. Workforce Intelligence for the Northern California Regional Competitiveness Network April, 2008 Mendocino Nevada Placer El Dorado Yolo Sonoma Alpine Napa Sacramento Amador Solano Calaveras Marin San Tuolumne Contra Joaquin Costa San Francisco Alameda Mariposa Stanislaus San Mateo Santa Clara Merced Madera Santa Cruz Recent Example

16. Scope of the Research • Industry Cluster Analysis • Small Business Study–5 or less employees • Self-Employment Study • Demand Occupations and Skills

17. What is a Cluster of Opportunity? • Expanding Opportunity > Job Growth and/or Establishment Growth • Job Quality • > Higher Average Payroll • > Wage Growth after Inflation Adjustment • Improving Competitiveness > Strong or Growing Regional Specialization Measured by Employment Concentration (Location Quotient) • Career Potential > Opportunities spread across high, medium, and entry-level jobs

18. 4.00 Agri-tech/Agribusiness Cluster 35,553 3.00 Employment Concentration (2005) Education & Health Services 41,840 2.00 Natural Resources &Mining Specialized 19,083 Manufacturing Cluster 9,172 Construction 17,112 1.00 Manufacturing 19,101 Information Technology Cluster Information 12,219 4,307 0.00 -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Annual Average Growth Rate (1996-2005) Northern CaliforniaIndustry Cluster Summary Source: Quarterly Census of Employment and Wages

19. Key Clusters Identified • Agricultural Technology & Agribusiness • Niche Manufacturing • Information Technology

20. Agricultural Technology & Agribusiness Cluster Source: Quarterly Census of Employment and Wages

21. Niche Manufacturing Cluster Source: Quarterly Census of Employment and Wages

22. Small Business Study • Looked at establishments reporting at least one employee in at least one month of the quarter but not more than five employees in any month. • Annual weekly payroll computed for the monthly average employment in the 3rd quarter of 2005. • Level of industry detail – 2-digit NAICS Source: Account Management Reports (QCEW)

23. Number of Small Businesses by Employment Size - 2005 Over 56% of establishments have 1-2 employees. Source: Quarterly Census of Employment and Wages 2005

24. Growth in Small Business Establishments, 1996-2005 Source: Quarterly Census of Employment and Wages 2005

25. Growth in Small Business Employment 1996-2005 Source: Quarterly Census of Employment and Wages 2005

26. Self-Employment Study • Tracked businesses with no paid employees that are subject to federal income tax, using non-employer statistics from the U.S. Census Bureau • Self-employed individuals • Very small unincorporated businesses • May or may not be the owner’s principal source of income. Entrepreneurship in the Northern California Competitiveness Network Region Number of Firms for All Industries - over 62,000 Total Receipts - over $2.8 billion Source: U.S. Census Bureau

27. Self-Employment Firms2002 – 2005(Non-employer Statistics) Source: U.S. Census Bureau

28. Self-Employment Receipts2002 – 2005(Non-employer Statistics, in millions) Source: U.S. Census Bureau

29. Occupational and Skills Research • Analyze staffing patterns to identify high, medium, and low-wage distribution; develop data tables of high, medium, and entry-level wage occupations; develop chart for each cluster depicting wage distribution • Use projections to identify occupations with growth potential • Identify STEM occupations • List key occupations in each industry for small business section Source: North Coast Targets of Opportunity

30. Occupational and Skills Research Pinpoint most common skills, tasks, knowledge, abilities, work activities, etc; develop chart showing skills data, develop occupational handout showing SKA’s, tools and technology, etc.

31. Comments? Questions? Feel free to get in touch with your ideas! Stewart Knox 530.822.7145 sknox@ncen.org Steve Saxton 916.262.2602 ssaxton@edd.ca.gov