2. The views expressed are my own and do not necessarily reflect official positions of the Federal Reserve System.

3. Overview The Shrinking Middle Class
Collaborating with Industry to Build Talent Pipelines
Banks Engaging in Workforce Development

4. The Shrinking Middle Class: Job Polarization in the United States
High-Skill Occupations
Traditional Middle-Skill Occupations
Low-Skill Occupations
THE VANISHING MIDDLE
Job Polarization in the United States
25%
39%
Percent of U.S. Workforce by Occupation Skill Level
61%
43%
14%
18%
NOTE: Data are restricted to workers ages 16 to 64 who are not self-employed and are not employed in military or agricultural occupations. SOURCE: The original chart is from “The Vanishing Middle: Job Polarization and Workers’ Response to the Decline in Middle-Skill Jobs,” Didem Tuzemen and Jonathan Willis, Federal Reserve Bank of Kansas City, The original chart has been updated to begin in 1979 and end in September Data was provided by Didem Tuzeman.

5. Low Wage Jobs and the Shrinking Middle Class
Low Wage Jobs and the Declining Middle Class
NOTES: Calculations include workers over age 15 with positive wages and exclude the self-employed. Quartiles based on the Texas and US wage distributions from the 1980 decennial census, which refers to 1979 wages. SOURCES: 1980 Census; 2015 ACS; “Employment Growth and Labor Market Polarization,” Chapter 7, Ten-Gallon Economy: Sizing Up Economic Growth in Texas by Pia M. Orrenius Jesús Cañas and Michael Weiss, 2015. 

6. Low Wage Jobs and the Shrinking Middle Class
Low Wage Jobs and the Declining Middle Class
NOTES: Calculations include workers over age 15 with positive wages and exclude the self-employed. Quartiles based on the Texas and US wage distributions from the 1980 decennial census, which refers to 1979 wages. SOURCES: 1980 Census; 2015 ACS; “Employment Growth and Labor Market Polarization,” Chapter 7, Ten-Gallon Economy: Sizing Up Economic Growth in Texas by Pia M. Orrenius Jesús Cañas and Michael Weiss, 2015. 

7. Increasing Need for Higher Education in Current Economy
NOTE: These data refer to the civilian workforce aged 25 and older. SOURCE: Center for Public Policy Priorities’ analysis of Current Population Survey iPUMS data, IPUMS-CPS, University of Minnesota,

8. TALENT DEVELOPMENT PIPELINES
Aligning Education, Workforce and Economic Development
Education Pathways
Career
Pathway
System
Career & technical education (diploma &
certificate)
Community
& technical college
(diploma &
certificate)
All sectors are critically important in this model
Designs by

9. TALENT DEVELOPMENT PIPELINES
Aligning Education, Workforce and Economic Development
TALENT DEVELOPMENT PIPELINES
Aligning Education, Workforce and Economic Development
Education: Train & Pray Career Pathways

10. Career Pathways: Guided Pathway Systems
Aligning Education, Workforce and Economic Development
Career & technical education (diploma &
certificate)
Community college
(diploma &
certificate)
Designs by

11. CAREER PATHWAY SYSTEMS
Aligning Education, Workforce and Economic Development
GUIDED PATHWAY SYSTEMS
Aligning Education, Workforce and Economic Development
Linked and aligned programs that have well-connected education, training and support services informed by employer needs
Multiple entry points, or on-ramps including for those with limited education, English, skills, and work experiences (i.e., bridge programs)
Multiple exit points at successively higher levels of family-supporting employment and aligned with subsequent entry points
Career Pathway System
SOURCE: “Shared Vision, Strong Systems: Alliance for Quality Career Pathways, Framework Version 1.0,” Center for Law and Social Policy, June 2014.

12. TALENT DEVELOPMENT PIPELINES
Aligning Education, Workforce and Economic Development
TALENT DEVELOPMENT PIPELINES
Aligning Education, Workforce and Economic Development
Workforce Development: Unemployment Services Sector Partnerships

13. SECTOR PARTNERSHIPS SECTOR PARTNERSHIPS Convener
Aligning Education, Workforce and Economic Development
SECTOR PARTNERSHIPS
Aligning Education, Workforce and Economic Development
Convener
Business Champions
Employers
Employer Champions
Business
Table
Designs by

14. SECTOR PARTNERSHIPS SECTOR PARTNERSHIPS Community Partners Convener
Aligning Education, Workforce and Economic Development
SECTOR PARTNERSHIPS
Aligning Education, Workforce and Economic Development
Community Partners
Community Colleges
K-12
Universities
Convener
Business Champions
Employers
Employer Champions
Adult Basic Education
Business
Table
Community-Based Organizations
Economic Development Organizations
Workforce Solutions
Designs by

15. TALENT DEVELOPMENT PIPELINES
Aligning Education, Workforce and Economic Development
TALENT DEVELOPMENT PIPELINES
Aligning Education, Workforce and Economic Development
Economic Development: Tax Breaks for Large Firms Industry Clusters

16. Industry Clusters
Designs by

17. Brazos Valley High Growth Industries
Advanced Manufacturing
Construction
Healthcare
Education
Government
Energy
Retail/Hospitality
Technology

18. TALENT DEVELOPMENT PIPELINES
Aligning Education, Workforce and Economic Development
Education Pathways
Career
Pathway
System
Career & technical education (diploma &
certificate)
Community
& technical college
(diploma &
certificate)
Designs by

19. Career Pathways Education Pathways Designs by Career Pathway System
Career & technical education (diploma &
certificate)
Community
& technical college
(diploma &
certificate)
Designs by

20. Career Pathways Education Pathways Designs by Career Pathway System
Career & technical education (diploma &
certificate)
Community
& technical college
(diploma &
certificate)
Designs by

21. SOURCE: “An Assessment of Current and Future Workforce and Training Needs in the Research Valley Education Analysis Area,” The Perryman Group, August 2016.