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California’s Career Technical Education Challenge John Husing, Ph.D. Chief Economist Inland Empire Economic Partnership.

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Presentation on theme: "California’s Career Technical Education Challenge John Husing, Ph.D. Chief Economist Inland Empire Economic Partnership."— Presentation transcript:

1 California’s Career Technical Education Challenge John Husing, Ph.D. Chief Economist Inland Empire Economic Partnership

2 After Losing 8.71 Million Jobs … U.S. Jobs Now Beyond All The Way Back

3 U.S. & CA Unemployment History Cold War Ends Great Recession Prime Rate: 21% 5.9% 7.3%

4 California Job Gains/Losses ,066,400 Defense Cutbacks Dot.Com Great Recession ,315, Up +249,158 Recovery

5 Regions Central Valley Expanded Bay Area Inland Empire Los Angeles So. Coast Rest of Calif.

6 Huge Adult Workforce Education Issue With 1 of 2 to 1 of 3 Adults Marginally Educated

7 Great Disparity in Share: BA or Higher

8 Poverty

9 Much of Our Future Workforce Is Living In Poverty

10 Ethnicity of Poverty, One Region

11 Low Public Health Rankings of 58 Counties, 2014

12 Causes of Public Health Difficulties 1.Socio-Economics 40% 2.Population’s Health Behaviors30% 3.Access to Medical Care20% 4.Environmental 10% Source: Different Perspectives For Assigning Weights To Determinants of Health, University of Wisconsin, Public Health Institute, %

13 What is Needed To Attack Poverty? Short Course Adult & New Entrant Training in Specific Skills Sectors With Few Education Barriers to Entry Median Incomes Approaching Middle Class Earnings Skill Ladders Up Which Workers Can Move To Median Incomes Sectors That Are Adding Jobs

14 Median Incomes Near To Middle Class Needs, Minimum Entry Level Requirements Can Help Put a Household in the Middle Class Middle Class Earnings, Minimum Skills To Enter

15 Share of Jobs: Minimal Academic Requirements to Entry

16 What Sectors Are Growing/Shrinking

17 Manufacturing

18 California Just 0.98% of U.S. Manufacturing Job Growth Jobs Are Becoming Available To Replace Aging Baby Boomer Technicians Median Pay: $48,923

19 CA Electrical Costs vs. Western States

20 Nestle to close Valley food Plant 360 California jobs will be lost as Hot Pockets production goes to Kentucky “In higher skilled industries they are hesitant to move because the labor force is not available anywhere. But lower- skilled one, they have an easier time leaving. That trend in California has the potential to leave lower-educated workers behind. BUSINESS Thursday, August 7, 2014 LATIMES.COM/BUSINESS :: Companies Can Leave or Not Come … It is the Workers Who Pay the Price

21 Logistics

22 Port Container Volumes

23 Modern Manufacturing Is Logistics!

24 Fulfillment Centers

25 E-Commerce Growth Rates Year Over Year by Quarter Strong Job Creation Median Pay = $43,911

26 CARB: Diesel Pollution Is Disappearing Exhibit 6.-PM 2.5 Days over National Standard vs. Total Square Feet of Net Industrial Absorption Since Highest PM2.5 level Monitoring Sites Mira Loma-Van Buren Riverside- Magnolia Riverside- Rubidoux Fontana-Arrow Highway Ontario-1408 Francis Street San Bernardino- 4th Street * *** 2005 ** *27.2** ***** 2008 * * * Change From Highest Change -80.1%-96.6%-94.8%-95.9%-100.0%-96.3% Net Absorptiont Since Highest 101,204,114198,737,217244,793,404198,737,217244,793,404198,737,217 AQMD & CARB Want To Reduce The Sector’s Growth

27 Construction & Real Estate: Finally A Recovery

28 Share of Underwater Homes Plunging

29 Negative Equity: CA is now Average

30 Notices of Default At Low Levels

31 Home Price Trends 70.1% 37.7% Above Existing Home -32.2% 2014,

32 BUSINESS Thursday, August 7, 2014 LATIMES.COM/BUSINESS New home shrinkage Pared-down project illustrates a cause of limited housing affordability “Original plans called for a multifamily development with three times as many homes, with many more affordable options.” Now with plans modified to include 208 single family homes, prices will range from about $400,000 to 1.1 million.” NIMBY & Lawyer power under what was suppose to be the CA Environmental Quality Act

33 Construction Prognosis Construction Sector Finally Strengthening Companies Are Having Trouble Finding Workers Median Pay = $51,923

34 Health Care

35 Physician Coverage An Issue In Many Places

36 Health Care Demand Set To Explode People Without Health Insurance (2013) 6,500,179 (17.2%) People Will Age, Already 55 & Over 9,197,344 (24.0%) Population Growth Will Resume ( ) 4,093,385 (12.1%)

37 ACS Enrollment Statistics Source: Covered California California Non-Subsidized 173,609 Subsidy Eligible1,222,320 Total1,395,929 Oct. 1, 2013 through Mar.31, 2014 Medi-Cal Almost 3-Times That Amount

38 Health Care Prognosis Sector Is Working Through The Implications of the ACA Sector Will Undergo Tremendous Change Para-Professions/Technicians Will See Much of the Workload Median Pay = $55,475

39 Other Sectors Retail Management Restaurant Management Office Assistant Escrow, Tile, Insurance, Real Estate Financial Management

40 April 28, 2014 by Courtney M. Fowler California career technical education funding struggles to make the grade Shulock and her colleagues Jodi Lewis and Connie Tan created their study, “ Workforce Investments: State Strategies to Preserve Higher- Cost Career Education ” to analyze the performance of CTE programs at colleges in 20 states around the country. Workforce Investments: State Strategies to Preserve Higher- Cost Career Education “California is really lacking in terms of the importance that is being placed on CTE programs,” Shulock said. “In other states they want to support and cultivate them so that they can continue to grow, but the problem is that here we don’t seem to see how important they are so, we’re a century behind other states in an industry that important.”

41 Who Is Hurt … If We Continue To Have Career Tech Under Funded? Workers Among the 9,836,900 Adults Needing Training To Reach the Middle class

42 A Final Thought … Given The Importance of Career Technical Education Those Running the Efforts on Campuses Should Report Directly to their CEOs … Otherwise They are Lost in the Academic Power Struggle

43 www. Johnhusing.com


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