Workforce Education: Economic Demand, Student Access, and Financial Need Bryan Wilson Associate Director-Workforce Board & Maralyn Chase State Representative 32 nd Leg District December 2006

Economic Demand

Projected Job Openings by Training Level, Four Years or More, 21% More Than One but Less Than Four Years, 21% One to 12 Months, 16% Less Than One Month or No Postsecondary Training, 42% Economic Demand

Gap Between Demand and Supply for Postsecondary Workforce Education 26,400 28,400 29,500 31, Supply as of 2004 Supply if supply increases at the rate of student-age population growth Demand based on number of net job openings

Economic Demand Level of Education Estimated # of Firms Having Difficulty Finding Qualified Workers with that Education Neither H.S.Diploma or GED 4,700 4,700 H.S. Diploma or GED 14,100 Some College Course Work 18,900 Vocational Certificate 19,200 Vocational Associates Degree 18,100 Academic Associates Degree 10,700 Baccalaureate Degree 13,900 Masters Degree 8,700 8,700 Doctorate or Professional Degree 3,800 3,800

Student Access and Retention

Barriers to Student Access and Completion  Financial costs of tuition, fees, and living expenses  Lack of information about training opportunities and financial aid  Child care  Time involved and location of training opportunities  Academic preparation

Actions to Reduce Barriers to Student Access and Completion  Increase financial aid  Provide better access to comprehensive information about training opportunities and financial aid  Provide comprehensive support services, including child care, tutoring, and transportation assistance

Actions to Reduce Barriers to Student Access and Completion  Provide more convenient training opportunities, such as on the job training  Integrate Adult Basic Education/ English as a Second Language and developmental education with workforce education  Create more modularized programs

Financial Need Study Methods  Analysis of Student Financial Aid Records (Traditional Financial Aid Programs) and Community and Technical College Student Records  Analysis of Workforce Development Program Records

Workforce Education Student Unmet Need After Traditional Student Aid Number With Unmet Need Total Amount of Unmet Need Median Amount of Unmet Need Per Student with Unmet Need Need, before aid31,369$277,616,514$8,820 Unmet need, after grant/scholarship/ waivers 30,652$200,413,625$6,314 Unmet need, after grants and work study 30,550$194,178,675$6,158 Unmet need, after grants, work study, and loans 27,424$151,351,654$4,921

Workforce Education Student Unmet Need in After Traditional Student Aid and Aid from Workforce Development Programs Total Amount of Unmet Need Need, before aid$277,616,514 Unmet need after traditional student aid $151,351,654 Estimated unmet need after traditional student aid and aid from Workforce Development Program $97 million

Conclusions  There is Economic Demand for More Workforce Education  The Biggest Barrier to Increased Student Access and Retention is Financial Need  The Best Available Estimate of Unmet Financial Need among Current Workforce Education Students is approximately $97 million per year

Fiction or Fact  Wa State does not supply enough BA degrees…  We are supplying the number needed but a mismatch between the fields of study and the occupations that are in demand.

Fact or Fiction  Washington ranks near the bottom of states in BA attainment  Washington ranks 28, about in the middle among all states for BA attainment.

Where do we want to rank?  A middle ranking is the ideal, because some states produce more than they need and some produce less than they need.  If Washington aims for “Number 1” in BA attainment, it would be supplying the rest of the country with people who have BAs

Fact or Fiction  Washington State’s economy needs more people with BA degrees  Washington State needs more people with postsecondary training, particularly mid-level; i.e. more than one but less than four years post secondary training

The Supply of Educated Workers  We are currently supplying only 83% of employer needs through our community and technical colleges, private career schools or apprenticeship programs.

Workforce  Job openings for new workers in Washington with between one and four years of postsecondary education or training is expected to reach 28,600 in 2007 and 29,700 in 2010

Workforce  To close the gap by 2010, the state will need more than 22,400 additional students FTEs than in current workforce education programs and produce over 6,000 more completers per year.

Employer Needs  Most employers have difficulty finding job applicants with a BA degree.  More employers have difficulty finding job applicants with a postsecondary vocational credential than have difficulty at the BA level.

Worker Shortage  In 2003, 67% of Washington employers who recently attempted to hire workers with postsecondary vocational training reported difficulty finding qualified job applicants

Worker Shortage  This shortage of vocationally trained workers affected over 17,000 employers – more employers than at any other educational level.

Employer Needs  Employers most frequently reported difficulty finding job applicants with occupation-specific skills  e.g., they wanted to hire a registered nurse but had trouble finding one.