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No Worker Left Behind

No Worker Left Behind. December 12, 2007 Andy Levin, Deputy Director Michigan Dept. of Labor & Economic Growth levina@michigan.gov 517-373-6334 www.michigan.gov/nwlb. MI Workforce System Snapshot. Strong, decentralized CC system (28)

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No Worker Left Behind

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  1. No Worker Left Behind December 12, 2007 Andy Levin, Deputy Director Michigan Dept. of Labor & Economic Growth levina@michigan.gov 517-373-6334 www.michigan.gov/nwlb

  2. MI Workforce System Snapshot • Strong, decentralized CC system (28) • Proud, decentralized WDB/one-stop system (“Michigan Works!”) (25) • Little statewide collaboration or strategy • Misfit between federal programs & what we need • WIA: reemployment vs. training • TAA: better, but misses most

  3. Major ChallengeRebuilding adult ed in MI • We radically defunded it: from $80M to $20M • It wasn’t working anyway • Massive numbers of Michiganders are • Functionally illiterate • Non-English speaking • Not ready for associate’s level work in anything • We MUST NOT AND WILL NOT leave these brothers and sisters behind!

  4. Our blessing, our curseMI has nearly 1/4 of US auto jobs

  5. “Detroit 3” U.S. Market Share • Plummeted by almost half in a decade • From 73 % in 1996 to 54% in 2006

  6. Jul 1999 906,200 Jan 1992 780,300 Apr 2007 634,500 Manufacturing • Decline of over 270,000 jobs from 1999 to 2007 Source: U.S. Department of Labor, Bureau of Labor Statistics. Source: Economic and Revenue Forecasting Division, Michigan Department of Treasury, 5/30/07

  7. Unemployment

  8. Michigan Job Market Frigid • bizjournal.com report on 100 largest U.S. job markets (9/07) • Coldest job markets • Grand Rapids - #10 • Lansing - # 6 • Detroit - #1

  9. Educational Attainment

  10. The World in a Grain of SandGeneral Motors & Flint • 1955 - Flint, MI employees: 86,700 • 2007 - U.S. employees: 73,000

  11. Flint today… • Flint residents living in poverty has increased 62.5 % • In 2004, 26.4 % of the 124,000 people in Flint lived below the poverty line • 80 % of those households have individuals who are employed full or part time Source: "Poverty in Genesee County: A social crisis," from a study conducted in 2004 by Michigan Department for Career Development and the Genesee Action Resource Department.

  12. Occupation Network systems and data communications analysts Physician assistants Computer software engineers, applications Physical therapist assistants Dental hygienists Computer software engineers, systems software Network and computer systems administrators Database administrator Physical Therapist Forensic science technician The Good Jobs of Today & Tomorrow Require Training

  13. Jobs Requiring Education Growing Faster Source: DLEG, Bureau of Labor Market Information & Strategic Initiatives Occupational Employment Forecasts 2004-2014

  14. Our Jobs Dilemma Education MedianWages 60% $40.00 $35.00 50% $34.15 $30.00 40% $25.00 Median Wage ($) Percent of Job Vacancies (%) 30% $22.50 $20.00 $19.59 $15.00 20% $10.00 $11.68 $9.50 10% $8.00 $5.00 0% $0.00 HS/GED NoDiploma Advanced Degree Vocational Training Bachelor's Degree Associate's Degree Source: DLEG, Bureau of Labor Market Information & Strategic Initiatives Michigan Job Vacancy Survey 2006

  15. School reform can’t fix this alone • About two-thirds (65 percent) of our 2020 workforce is already beyond the reach of K-12 schools. • Current potential pool of skilled workers among prime-age adults (18-44) is equal to the next 17 years of high school graduating classes. • Michigan has seen rapid growth in high school grads in last 5 years but that will peak this year and fall rapidly over next ten years. • In effect we need to “grow our own” skilled workforce from among the workers we already have.

  16. Grand Rapids High School Alpine Elementary Grand Rapids Community College Culture of Life Long Learning

  17. No Worker Left Behind • Revitalize • New Vision • Reorganize • Many funding streams, one face • Replenish • Add’l $ for training: federal, state, private

  18. Double # of Michiganders Trained • In-Demand Occupations • To Over 100,000 • In the Next Three Years

  19. Who is Eligible for NWLB? • Any person who • Is unemployed (broadly defined) or • Has received notification of termination; and • Any person who is currently employed whose family income is less than $40K • Excluded: 18-23 year olds who recently graduated HS or are in college

  20. What NWLB Offers Michigan Workers • Up-front assessment & counseling • Up to two years worth of free tuition and fees to complete a certificate or degree • Up to $5,000 per year, $10,000 for two years • Help with child care and transportation • Placement assistance after training • Hope for a new beginning!

  21. And what level student is included?Everyone from ABE to MA students!

  22. Worker’s End of the Deal • Go to local MWA for assessment • Pursue certificate/degree towards: • In-demand occupation • Growing or emerging industry • Entrepreneurship • (What training qualifies decided by each MWA) • Continued funding depends on performance • Sign up within three years (Aug. 2007 – July 2010) • Complete training within four years of starting

  23. Funding • All available student financial aid first • Federal funding second • Workforce Investment Act • TAA • TANF • Vocational Rehab • State “General Fund” funding last (if/when we get it)

  24. NWLB By the Numbers • Public interest: the sky is the limit • 2,000 have joined an unadvertised e-mail list • Participation in one-stop orientation sessions up 100-500% • A sustained publicity campaign would overwhelm the system

  25. No Worker Left Behind By the Numbers Enrolled in Training * Thru 11/23/07

  26. CareerEducation Consumer Report (CECR) Activity

  27. Fiscal Situation → Future Cloudy • MI had to close $1.8B deficit for FY 2008 • Partisan rancor; brief shutdown 10/1/07 • FY 2009: deficit of $500-600M or more • Gov has said she won’t ask for any new revenue • Time to get creative!

  28. Bottom Line: NWLB Shows Transformation Possible! • Upskilling is independent contributor to diversification and resurgence • Cultural change to lifelong learning requires concrete opportunity and hope • Public demand is evident • The impact full scale NWLB program would have on MI would be staggering • The political challenge: how to get the business community to demand what is in its best interest

  29. No Worker Left Behind December 12, 2007 Andy Levin, Deputy Director Michigan Dept. of Labor & Economic Growth levina@michigan.gov 517-373-6334 www.michigan.gov/nwlb

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