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

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Presentation on theme: "No Worker Left Behind December 12, 2007 Andy Levin, Deputy Director Michigan Dept. of Labor & Economic Growth 517-373-6334www.michigan.gov/nwlb."— Presentation transcript:

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

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

3 Major Challenge Rebuilding adult ed in MI We radically defunded it: from $80M to $20MWe radically defunded it: from $80M to $20M It wasn’t working anywayIt wasn’t working anyway Massive numbers of Michiganders areMassive 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!We MUST NOT AND WILL NOT leave these brothers and sisters behind!

4 Our blessing, our curse MI has nearly 1/4 of US auto jobs

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

6 Manufacturing Decline of over 270,000 jobs from 1999 to 2007Decline of over 270,000 jobs from 1999 to 2007 Apr ,500 Jan ,300 Jul ,200 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)bizjournal.com report on 100 largest U.S. job markets (9/07) Coldest job marketsColdest job markets –Grand Rapids - #10 –Lansing - # 6 –Detroit - # 1

9 Educational Attainment

10 The World in a Grain of Sand General Motors & Flint Flint, MI employees: 86, Flint, MI employees: 86, U.S. employees: 73, U.S. employees: 73,000

11 Flint today… Flint residents living in poverty has increased 62.5 %Flint residents living in poverty has increased 62.5 % In 2004, 26.4 % of the 124,000 people in Flint lived below the poverty lineIn 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 time80 % 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 The Good Jobs of Today & Tomorrow Require Training OccupationOccupation –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

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

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15 Source: DLEG, Bureau of Labor Market Information & Strategic Initiatives Michigan Job Vacancy Survey 2006 $34.15 $22.50 $19.59 $11.68 $9.50 $8.00 0% 10% 20% 30% 40% 50% 60% No Diploma HS/GED Vocational Training Associate's Degree Bachelor's Degree Advanced Degree Percent of Job Vacancies (%) $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 Median Wage ($) Education Median Wages Our Jobs Dilemma

16 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.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.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.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.In effect we need to “grow our own” skilled workforce from among the workers we already have.

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

18 No Worker Left Behind RevitalizeRevitalize –New Vision ReorganizeReorganize –Many funding streams, one face ReplenishReplenish –Add’l $ for training: federal, state, private

19 Double # of Michiganders Trained In-Demand OccupationsIn-Demand Occupations To Over 100,000To Over 100,000 In the Next Three YearsIn the Next Three Years

20 Who is Eligible for NWLB? Any person whoAny 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 $40KAny person who is currently employed whose family income is less than $40K Excluded: year olds who recently graduated HS or are in collegeExcluded: year olds who recently graduated HS or are in college

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

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

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

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

25 NWLB By the Numbers Public interest: the sky is the limitPublic interest: the sky is the limit 2,000 have joined an unadvertised list2,000 have joined an unadvertised list Participation in one-stop orientation sessions up %Participation in one-stop orientation sessions up % A sustained publicity campaign would overwhelm the systemA sustained publicity campaign would overwhelm the system

26 No Worker Left Behind By the Numbers Enrolled in Training Month August2,5282,3122,4771,603 September2,6412,3802,7561,502 October1,8792,2241,4971,191 November*7401,5671,2911,153 Total7,7888,4838,0215,449 * Thru 11/23/07

27 Career Education Consumer Report (CECR) Activity Month Programs Updated /Added 2007 Schools Updating Programs 2007 July34964 August September October735117

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

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

30 No Worker Left Behind December 12, 2007 Andy Levin, Deputy Director Michigan Dept. of Labor & Economic Growth www.michigan.gov/nwlb


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