The High Growth Job Training Initiative AACC Workforce Development Institute January 29, 2004 This presentation provides: An overview of the vision to create a demand-driven workforce system An overview of the workforce challenges and the need to transform the system An introduction to the BRG, its goals, and the federal/state/local team and Briefing on the Partnerships for Jobs and President’s High-Growth Job Training Initiatives, and Capacity Building project. eta EMPLOYMENT AND TRAINING ADMINISTRATION UNITED STATES DEPARTMENT OF LABOR
Workforce Development = Economic Development Building and retaining a qualified and productive workforce is essential to enable every U.S. business to be successful, to promote job creation, and to grow our nation’s economy.
Top Factors Determining Employer Site Selection* 1. Availability of skilled labor 90.9% 2. Labor costs 89.9% 3. Tax exemptions 88.2% 4. State and local incentives 88.0% 5. Highway accessibility 86.6% 6. Corporate tax rate 84.6% 7. Proximity to major markets 83.7% 8. Occupancy or construction costs 82.4% 9. Energy availability and costs 80.9% 10. Environmental regulations 76.7% * Area Development Magazine 2002 Survey
21st Century Workforce Challenges Globalization Labor Pool Demographics Increased Diversity Technology and Innovation Changing the Work Skill Gaps
Create a Demand-Driven No Worker is Left Behind The Vision Create a Demand-Driven System to Ensure No Worker is Left Behind Our nation’s ability to be competitive in a global economy depends on the quality of our workforce. To succeed, our policies must embrace the emerging changes in our economy – in how we actually work, where we work, what skills we need, and how we balance our professional and family lives.
What is Demand Driven? Knowing where the jobs are – both new jobs and current jobs that may be changing Knowing the skills and competencies necessary to do those jobs Understanding the labor market context Strategic investment of $15 billion public workforce system resources Working collaboratively with business and training providers to develop workforce solutions.
Framework for Solutions A Partnership must exist between Employers, Community Colleges and Education providers, and the local Workforce Investment System The Power of E3 – employment, education, and economic development – is a theme adopted by the Department of Labor. The underlying principle behind this theme is that we must bring the resources devoted to employment, education and economic development together and use them strategically if we are to build the skilled workforce that employers need to remain globally competitive and if workers are going to be able to get good jobs at good wages with opportunities for advancement. This is integral to creating a demand-driven system.
Role of the Partners Industry defines the workforce challenges Community Colleges assist in developing competency models and curricula The public workforce system accesses human capital and places trained workers in jobs
Why HGJTI? In the next decade, approximately 80% of available jobs will require some level of post-secondary education* 61% will require more than a high-school education but less than a bachelor’s degree * Bureau of Labor Statistics & Employment Policy Foundation
Why HGJTI? 97% of youth hope to go to college* 63% of youth enroll in college* 30% receive a bachelor’s degree* *U.S. Dept of Ed./Office of Educational Research and Improvement
High-Growth Definition “High-Growth” includes . . . Industries with significant job growth Industries that are critical to the nation’s economic viability and development Industries that significantly impact the growth of other growth industries New and emerging industries The high growth industries have been selected after engaging in rigorous information gathering. BRG staff use a variety of sources to find this information, including labor market information sites such as the Bureau of Labor Statistics and acinet.org, in addition to information gained from industry and economic development representatives.
Targeted Industries Automotive Services Biotechnology Geospatial Construction Health Services Information Technology High-Tech Manufacturing Retail Transportation Hospitality Financial Services Energy This initiative focuses on high-growth industries where specialized skills training curricula needs to be developed or upgraded to ensure that workers have the right skills for the right jobs at the right time. Based upon high-growth industry projections, economic development needs, and micro-enterprise efforts, the following sectors are the initial project focus (name industries). These industries usually fall into two categories: 1. New and emerging industries (for example, geospatial) 2. Industries that are shifting or evolving toward being more high tech (for example, automotive services)
High Growth Job Training Initiative “All the worker wants is to be helped, to be given the skills necessary to realize his or her dreams. The High-Growth Job Training Initiative in this administration is aiming to do just that. It's a collaborative effort with community colleges to help team up people with the jobs that are needed, to make sure that the changes in our economy don't leave people behind.” - President George W. Bush Labor Day 2003
Strategies National leadership to engage industry leaders Investment in national models and demonstrations of workforce solutions in high growth/high demand industries Sharing information and models widely with the workforce system
New Roles for Workforce System Catalyst for bringing partners together Building sustainable relationships Focus on solutions Resource leveraging
Challenges & Solutions Competency Models Post-Secondary Alternatives (Community Colleges, Apprenticeship) Pipeline (youth, entry-level) New Labor Pools (Immigrants, Seniors, Vets, Persons with Disabilities) Retention (Incumbent Workers) Transitioning (Declining Industries)
Expected Results Putting People Back to Work Transitioning Workers from Declining Industries to Growing Industries Meeting Employers’ Needs for Skilled Workers Leveraging Private Sector Dollars Driving Change
Jobs for the 21st Century Announced in President’s State of the Union address $250 million targeted to support training in high growth/high demand industries/occupations through community colleges Extension of the President’s High Growth Job Training Initiative Operational Details Not Yet Available
Community Colleges Critical Strategic Partners How can we most effectively ensure that community colleges are at the table and engaged? What are key capacity issues facing community colleges? How can we promote collaborative work among community colleges? How can we promote sharing of HGJTI products (competencies, curriculum, models for clinicals, etc.) among community colleges?
The Business Relations Group Contact Information Gay Gilbert, Director Business Relations Group U.S. Department of Labor Employment and Training Administration businessrelations@dol.gov (202) 693-3949