Building A Skilled Workforce

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Building A Skilled Workforce Job Ready
Pennsylvania
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Over the Last Two Years the Foundation for a More
Vibrant Economy Was Prepared

• Three Corners of the Foundation
• Property Tax Relief
• Boosting Student Achievement
• Economic Stimulus
• Fourth Corner of the Foundation
• Building a Skilled Workforce

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The Knowledge Based Economy

• Today, the knowledge required to run the
  economy, which is far more complex than in our
  past, is both deeper and broader than ever
  before. We need to ensure that education in the
  United States, formal or otherwise, is supplying
  skills adequate for the effective functioning of
  our economy.
• ---Alan Greenspan, Chairman of the Board of
  Governors of the US Federal Reserve System, at
  the Greater Omaha Chamber of Commerce 2004 Annual
  Meeting, Omaha, 20 February 2004

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Median Pennsylvania Income by Educational
Attainment (2004)
Educational Attainment Opportunity
Source U.S. Bureau of Census, Current Population
Survey (CPS), March Supplement
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Pennsylvanias Challenges

• Businesses often cant find skilled workforce to
  compete in the global, technologically driven
  economy
• Low educational levels compared to other states
  and too few opportunities for adults to increase
  skills or participate in lifelong learning
• Students not prepared for todays world of work
• Fragmented workforce development system, lacking
  accountability

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Unskilled jobs are disappearing and demand for
higher skills is rising
Pennsylvanias Challenges
Source U.S. Bureau of Census and Pennsylvania
Department of Labor and Industry, Center for
Workforce Information and Analysis (Pennsylvania
statewide)
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• 60 of job growth through the year 2012 will be
  in occupations that require postsecondary
  vocational training or higher

Pennsylvanias Challenges

• Biological Technicians (37,170)
• Registered Nurses (49,390)
• Dental Hygienists (49,660)
• Computer Support Specialists (39,900)
• Massage Therapists (28,750)
• Automotive Service Technicians and Mechanics
  (31,410)
• Emergency Medical Technicians and Paramedics
  (24,280)

A sample of growing occupations that require
postsecondary education with estimated average
salary
Source PA Department of Labor Industry, Center
for Workforce Information Analysis
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• Our aging workforce means that new workers
• must replace skilled retirees

Pennsylvanias Challenges
Millions of Pennsylvanians
Source U.S. Bureau of Census, Current Population
Survey, March Supplement and PA Department of
Labor Industry, Center for Workforce
Information Analysis
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Businesses cannot find the skilled workers they
need
Pennsylvanias Challenges

• 82 of businesses surveyed by the Business
  Calling Program since 2003 say they are having
  difficulty recruiting the skilled workforce they
  need
• PA ranks 46th among states in percent of persons
  with a high school diploma or less

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• Too few PA workers have the education to keep up
  with rapid technological change

Pennsylvanias Challenges
Educational Attainment for the Pennsylvanian
Labor Force (2004)
Source U.S. Bureau of Census, Current Population
Survey (CPS), Basic
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Less education means lower earnings
Pennsylvanias Challenges

• 37 of all working Pennsylvania residents aged 25
  and up earn an hourly wage that would equate to
  annual earnings of less than 25,364 if they
  worked full-time year-round

Source Keystone Research Center Analysis of the
Current Population Survey
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Wages are growing too slowly for too many
Pennsylvanians
Pennsylvanias Challenges

• Adjusted for inflation hourly wages in PA
  declined by 0.3 in 2003 while national wages
  rose by 1.1

Source Keystone Research Center, Economic Policy
Institute analysis of Current Population Survey
data
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Workers with less education are more likely to
become unemployed
Pennsylvanias Challenges
Pennsylvania Unemployment Rate by Educational
Attainment
Source U.S. Bureau of Census, Current Population
Survey, Basic
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Building a Skilled WorkforceKeeping
Pennsylvania Competitive, Creating Opportunity
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Building a Skilled Workforce

• Four Critical Strategies for Keeping Pennsylvania
  Competitive and Creating Opportunity
• Strengthen Pennsylvanias industries Create
  industry-led training strategies
• Increase opportunities for Pennsylvanias
  residents
• Prepare youth for the careers of tomorrow
• Implement rigorous accountability standards

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The Strategy is Long Overdue

• In 1997 Representative Flick called upon the
  House Pennsylvanias workforce system should
  be guided by the following principles be driven
  by the private sector be based on performance
  focus on high-skills/high-wage jobs support a
  stronger economy be universally accessible be
  regionally coordinated be locally implemented
  be a vehicle for lifelong learning and be
  competitively bid.
• House Subcommittee on Workforce Development
  Report (October 1, 1997)

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• Strengthen Pennsylvanias Industries
• Create Industry-Led Training Strategies

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• Pennsylvanias Workforce System Must Be
  Industry-Led

Industry-Led
Nationally Award Winning Cluster Analysis
Source PA Department of Labor Industry, Center
for Workforce Information Analysis,
Pennsylvanias Targeted Industry Clusters
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Use Labor Market Information to develop
High Priority Occupations
Industry-Led

• Analysis of clusters identifies gaps in skills
  and points to career opportunities
• Industry Partnerships deepen learning about how
  traditional careers have changed
• Experts reveal new and/or redefined occupations
  created in technologically transformed industries
• Educators need this information to revise,
  update, create curriculum

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Grow and Support Multi-Employer Collaborations
Industry-Led

• A 5 million initiative to develop Industry
  Partnerships
• Organize clusters of businesses that share
  similar workforce challenges, markets and
  suppliers
• Create economies of scale for job training and
  education
• Identify key occupations
• Promote innovation
• Working together, business can identify worker
  skill gaps, address training needs, and develop
  regional strategies to build stronger economies

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Partnering with Employers HelpsClose Workforce
Gaps
Industry-Led
Most Pennsylvanians are employed by small and
medium-sized firms that cannot afford to update
the skills of their workforce on their own
Total Employees by Size of Firm
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National Recognition for Pennsylvanias
Industry-Led Strategies
Industry-Led

• This initiative is part of our commitment to
  help American workers obtain good jobs at
• good wages with solid career paths in order to
  leave no worker behind.
• Emily Stover DeRocco, USDOL Deputy Secretary for
  ETA
• Selected as one of two states for President
  Bushs Demand Driven Incubator Project
• Selected as only state to participate in National
  Foundations intermediaries project

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Industry-Led Initiatives Also Create Opportunity
for Pennsylvanians
Industry-Led

• Help businesses meet their needs for high skilled
  workforce
• Help people already working get better jobs and
  advance their careers
• Create career ladders
• Target resources to High Priority Occupations
  jobs that are in high demand and pay higher wages

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• Increase Opportunities
• for Pennsylvanias Residents

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Target Investments to Growing Occupations Paying
Good Wages and Benefits
Opportunities

• Redirect existing workforce development funds to
  High Priority Occupations, making better use of
  600 million
• Provide more training opportunities for people
  already working
• Make education more affordable for working and
  unemployed adults
• Invest in Community Colleges
• Accelerate degree attainment
• Develop assessments for prior learning

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Sample High Priority Occupations
Opportunities
Source PA Department of Labor Industry, Center
for Workforce Information Analysis, Long-Term
Occupational Employment Projections
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Industry-led Initiatives Keep Businesses
Competitive and Create Opportunity
Opportunities

• Address Pennsylvanias Critical Health Career
  Needs
• A 40 million PHEAA-funded initiative supporting
  PA Center
• for Health Careers Nurse Education Capacity
• Recommendations
• Nurse Educator Fellowships
• Clinical Education Expansion Programs
• Attraction and Retention Projects

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Improve the Skills of the Current Workforce
Opportunities

• New investment in a 15 million training fund for
  people
• already working
• Train workers for occupations needed by employers
  in targeted industry clusters
• Help workers move up career ladder
• Invest in innovative strategies
• Require collaboration across programs and
  departments

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Investing in Training for Existing Workforce is
Good for Workers, Good for Businesses, and Good
for PA
Opportunities

• Improve Opportunities for Child Care and
• Direct Care Workers
• Quality training to workers
• Career ladders and lattices
• Improves recruitment and retention for employers
• Improves quality of life for Pennsylvanians

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Generate New Advanced Technology Skills in
Workers to Promote PAs Competitive Edge
Opportunities

• Invest 3 million in Advanced Technology
  Knowledge Workers
• Recruit top faculty researchers to create new
  jobs, businesses
• and industries in advanced technology fields
• Starter Kits are a new 3 million program
  designed to recruit top faculty researchers
• Discretionary up-front funds for researchers to
  build out labs and hire staff, acquire
  equipment, and leverage their research
• 1 to 1 university match required

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Make Getting More Education and a Degree More
Affordable for Adults
Opportunities

• Make Education and Training More Affordable For
  Adults
• Only 3 of Pennsylvanias adult working
  population are enrolled in post-secondary
  education, compared to 6 in the nations
  benchmark states
• Making higher education more affordable for
  working adults is crucial for our businesses and
  residents to compete in the global economy

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Make Getting More Education and a Degree More
Affordable for Adults
Opportunities

• Provide Financial Aid for Working Adults
• Invest 10 Million from PHEAA in Opportunities
  for Less
• than Full-time Students
• Provide grants for part-time students
• Provide aid for certificate programs less than
  two years in duration
• Provide loans to working adults for costs
  associated with room and board, child care

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Make Getting More Education and a Degree More
Affordable for Adults
Opportunities

• Nearly half of all adult students are enrolled in
  Community
• Colleges
• Invest 22.8 million in Community Colleges to
  keep up with
• increased enrollment
• More predictable operating and capital funding
• Incentives to develop and offer courses in high
  priority occupations
• Hold Community Colleges accountable

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Make Getting More Education and a Degree More
Affordable for Adults
Opportunities

• Accelerate Degree Attainment
• Core-to-Core Articulation
• Require colleges to accept all credits from one
  community college to another and from community
  colleges to 4-year colleges and universities
• Accelerate degree attainment by making credits
  transferable

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Make Getting More Education and a Degree More
Affordable for Adults
Opportunities

• Accelerate Degree Attainment
• Prior Learning Assessments
• Develop a credit course or a non-credit
  instructional program that assists students in
  evaluating and awards credit for knowledge and
  skills gained from non-traditional education and
  work experience
• Accelerate degree attainment through prior
  learning assessment

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• Prepare Youth for the Careers
• of Tomorrow

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Prepare Youth for the Careers of Tomorrow
Tomorrows Workforce

• Pennsylvanias Challenges Mirror Those of the
• Nation
• More than half of all high school students cannot
  meet our math standards
• One in four of our high school students cannot
  meet PA reading standards
• More than half of our students graduate from high
  school unprepared to do college-level work

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Higher standards are needed to prepare our
students for todays economy
Tomorrows Workforce

• Pennsylvania is 1 of 8 States Without
• High School Course Requirements

ME
VT
NH
NY
MI
MA
CT
PA
RI
OH
NJ
IN
MD
DE
WV
VA
KY
No course requirements
TN
NC
AR
SC
Single diploma
Two-tiered diploma
FL
Three-tiered diploma
Four-tiered diploma
AK
HI
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High School Reform is essential to better prepare
tomorrows workforce
Tomorrows Workforce

• PA Will Meet the National Goals for High School
  Reform
• Pennsylvania students attend high school for 720
  days from the beginning of 9th grade to the end
  of 12th grade
• Project 720 will transform Pennsylvanias high
  schools through
• four strategies
• All students will take challenging courses in
  reading, writing, science math to prepare them
  for college and the workforce
• Schools will make learning more personalized so
  that every student has the opportunity for
  success
• Students will receive high-quality guidance
  counseling and career advising
• Students will have more options to go from high
  school to college or high-skill careers and
  will get an early start in
• making the transition

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High Schools for the Future will ensure our youth
have earnings opportunities
Tomorrows Workforce

• Building High Schools for the Future
• Create statewide models of successful high
  schools and implement effective strategies
  statewide
• Invest 4.7 million to double the number of
  Project 720 high schools from 41 to 80
• Pay for tuition and book charges so at-risk
  students who are ready can gain college credit
  while completing their high school diploma
• Invest 5 million in college credit for high
  school students (allowing for dual enrollment)

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Improving Vo-techs is essential
Tomorrows Workforce

• Significantly Improve PAs Career Technical
• Education System
• Much improvement is needed if CTE is to play its
  rightful role as an important contributor to the
• economic strength of the state and the economic
  advancement of its residents.
• JFF Report on Pennsylvanias Career and
  Technical Education System (February 2005)
• Pennsylvania will over the next five years
• Hold CTE students to high academic standards
  80 do not currently meet proficiency levels
• Target tutoring to students who need help
• Move 80 of all training to industry-approved
  standards over next five years
• Upgrade CTE equipment
• Improve data, tracking and staff development to
  ensure that CTE programs achieve higher goals

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• Implement Rigorous
• Accountability Standards

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Implement Rigorous Accountability Standards
Accountability

• Implemented Performance Management Plan across
  all workforce programs on July 1, 2004
• Provide incentives for High Performance Local
  Workforce Investment Boards
• Insist on High Performance CareerLinks
• Align the 22 fragmented workforce development
  funding streams

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Performance Management Plan
Tomorrows Workforce

• Implemented July 1, 2004
• Workforce and economic indicators demonstrating
  how Pennsylvania compares to other states
• Common quantitative measures for all programs
• Strategic measures that determine whether the
  program met overall Commonwealth goals
• Publish Annual Report

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High Performance Local Workforce Investment
Boards
Tomorrows Workforce

• Set new standards based on industry needs, high
  priority occupations
• Demand high performance
• 22 million in incentives
• Provide technical assistance
• Require corrective action
• Institute interventions

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Clear expectations will help bring local training
in line with employer needs
Tomorrows Workforce

• High Performance WIB Milestones
• Understand the regional labor market and survey
  the needs of regional employers
• Organize Industry Partnerships in targeted
  industries
• Identify high priority occupations that match up
  with regional demand
• Improve CareerLinks performance by linking
  training to needs of Industry Partnerships
• Improve fiscal performance

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Demand High Performing CareerLinks
Tomorrows Workforce

• Determine location by demand for services
• Deliver seamless services
• Staff development for certified career planners
• New evaluation mechanism
• Measure outcomes for all customers

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Outcomes
Tomorrows Workforce

• Better and deeper understanding of high growth
  occupations
• More effective career education
• New educational and earning opportunities for
  residents
• Better outcomes through improved performance
• More highly skilled workforce in key sectors
• Stronger, more innovative, highly competitive
  companies

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