1. NORTH SHORE WORKFORCE INVESTMENT BOARD Annual Board Meeting January 10, 2013

2. N ORTH S HORE WI B Chair’s Report WIB Association Quarterly meeting – Health Care Reform in Massachusetts Status of federal activities Other We put the North Shore to Work -

3. N ORTH S HORE WIB We put the North Shore to Work - Labor Market Trends on the North Shore – Comparison to Northeast, Massachusetts, and USA data – Will Sinatra

4. N ORTH S HORE WIB Total Industrial Employment on the North Shore from Jan 2007 to March 2012 Recession period from 4 th Quarter 2007 to 4 th Quarter 2009 Recovery period from 4 th Quarter 2009 to 4 th Quarter 2011 Source: EOLWD, LAUS, 1/07-3/12

5. N ORTH S HORE WIB The Recession on the North Shore 4 th Quarter 2007- 4 th Quarter 2009 The North Shore 4 th Quarter 2009 Employment is 154,651 5,121 jobs lost during this period 3% decline 4 th Quarter 2009 Employment 4Q 07- 4Q 09 Percent Change Source: EOLWD, ES202, 4thQ07-4thQ09

6. N ORTH S HORE WIB NE employment at 402,017 but lost 15,500 jobs during this period, a 3.7% decline Northeast Region Massachusetts MA employment at 3,009,046 but lost 130,000 jobs during this period, a 4.0% decline

7. N ORTH S HORE WIB Outcome of the Recession 4 th Q2007-4 th Q2009 Areas of Significant Change North ShoreNortheast Massachusetts/ All Regions Gained JobsInformationManagement of CompaniesHealth Care, Education Lost Jobs---Wholesale, Information Manufacturing, Construction, Administrative Support & Waste Services, Financial Services, Professional & Technical Services, Retail Recession Outcomes: Health Care and Education gained employment Manufacturing, Construction, Administrative Support Waste Services, Financial Services, and Real Estate were the hardest hit

8. N ORTH S HORE WIB The Recovery on the North Shore 4 th Quarter 2009 – 4 th Quarter 2011 The North Shore total employment in the 4 th Quarter 2011 was 168,911 recovered 4,267 Jobs during this period 2.6% growth 4 th Q 2011 Employment 4Q 09- 4Q 11 Percent Change Source: EOLWD, ES202, 4thQ09-4thQ11

9. N ORTH S HORE WIB Northeast Recovery 417,486 Employment, 3.6% Growth Massachusetts Recovery 3,234,889 Employment, 2.9% Growth 4 th Quarter 2011 Employment 4 th Q 09-4 th Q 11 Percent Change Source: EOLWD, ES202, 4thQ09-4thQ11

10. N ORTH S HORE WIB Areas of Significant Change North ShoreNortheastMassachusetts/All Regions Gained Jobs Durable Goods Durable Goods, Professional & Technical Services Health Care, Accommodation & Food Services, Administrative Support and Waste Services, Construction Lost Jobs Utilites, Public Administration, Finance, Real Estate Management of Companies, Real Estate Finance, Non-Durable Goods Current State of Recovery Recovery Outcomes: Health Care continues to grow Education’s growth has slowed down Manufacturing is returning, concentrated growth in Durable Goods in the Northeast and North Shore Very slow growth in Construction Tourism pick up throughout Growth in Accommodation & Food Services and Arts, Entertainment, and Recreation. Financial Services employment decline is nearly double the rate on the North Shore compared to the Northeast and Massachusetts Real Estate is weak on the North Shore and Northeast compared to Massachusetts

11. N ORTH S HORE WIB Unemployment Rate for the USA, Massachusetts, and North Shore North Shore Unemployment follows Massachusetts Seasonal Trends Rises in Dec-Jan and April/May-June Falls from Feb-April/May and Sept-Oct Remains steady during the Summer Source: EOLWD, LAUS, 1/07-9/12

12. N ORTH S HORE WIB Unemployment Challenges RegionCensusTotal Labor Force Under 3535 & Over % of Unemployed % of Labor Force % of Unemployed % of Labor Force USA2009-2011 ACS156,456,69452%36%48%64% Massachusetts2009-2011 ACS3,573,91948%35%52%65% Northeast2008-2011 ACS556,27245%32%55%68% North Shore2007-2011 ACS220,03847%32%53%68% The Under 35 population are disportionately represented in the percentage of unemployed throughout the country The Northeast and North Shore Labor Forces are older than Massachusetts and USA Northeast

13. N ORTH S HORE WIB Educational Attainment of the Population Over 18 Years Old EUC= Customer’s with more than 26wks of unemployment Sampling of Extended Unemployment Coverage customers enrolled from May19th to July 31st Source: US Census Bureau, American Community Survey, 2007-2011, 2008-2011

14. N ORTH S HORE WIB What is the education data telling us? The North Shore has a comparable educational attainment level to the Northeast The North Shore & Northeast both have a lower rate of Graduate degrees than Massachusetts but a higher rate of Associates' and Some College Massachusetts, Northeast, and the North Shore all have an educational attainment higher than the USA. The EUC Cohort has an educational attainment lower than all regions Northeast

15. N ORTH S HORE WIB Educational Attainment by Age Groups for EUC, North Shore, & Massachusetts Source: US Census Bureau, American Community Survey, 2007-2011, 2008-2011

16. N ORTH S HORE WIB What is the education data telling us? The population Under 35 has a higher educational attainment than the 35 and Over Cohort when considering the number still in High School and College The North Shore and Northeast have similar educational attainments Both regions are lower than Massachusetts However, the EUC Cohort has a reversal of the educational trends with the 35 and Over having a higher attainment level compared the Under 35 Cohort. Both groups are lower than their regional counterparts

17. N ORTH SHORE WIB Putting it all together The North Shore economy is still recovering from the recession If the current growth rate is maintained we should recover all jobs lost to recession by the end of 2013, but unemployment will still remain higher than prerecession levels due to population growth and individuals returning to the labor force. The unemployed will be at a disadvantage in returning to employment due to their lower level of educational attainment compared to their peers. This is especially true for the Under 35 EUC group Opportunities should exist in Durable Goods manufacturing

18. N ORTH S HORE WIB Sample Durable Goods Manufacturing Jobs in Essex County OccupationEmployerCitySalary Electronic AssemblerRaytheonAndover$40,000 MachinistFlowserveLawrence$42,000 CNC Lathe Set-UpSterling MachineLynn$39,000 QC InspectorJohnson ControlsLynnfield$31,000 Mechanical AssemblerCommunication & Power Industries Beverly$33,000 CNC ProgrammerA.W. Chesterton Company Groveland$58,000 An online search of Wantedanalytics found 298 jobs in manufacturing posted from September 1 st to January 8th

19. N ORTH S HORE WIB We put the North Shore to Work - Workforce Systems Committee – State of our Career Centers Mark Whitmore

20. VISION The North Shore Career Centers, chartered by the North Shore Workforce Investment Board to provide the highest quality, workforce development services to individuals and employers within the North Shore area, leading to economic self-sufficiency for individuals and strong human resource choices for employers. The values under which we operate and bring this vision to fruition include the following: We know who our customers are and have an innate respect for them. We believe in high quality customer service that meets customer needs. We are responsible for seeking out, developing, and providing this service. We are responsible to our funding sources and to our community. We will serve the customer fully and completely We put the North Shore to Work! 20

21. S ERVICE D EMAND Customers Served at the North Shore Career Centers We put the North Shore to Work! 21

22. T RAINING I MPACT Results of Individualized Occupational Training 2012 People who complete individualized occupational training enter the workforce at nearly 2X the rate of those who do not receive training WHAT? We put the North Shore to Work! 22 Customers employed after receiving services

23. S ERVICE D ETAILS Gloucester Access Point Total Customers – 2,343 Customers with Training Services –101 Customers in Workshops – 953 Veteran Customer – 175 Unemployment Insurance Walk-In – N/A Full Service Center Salem Total Customers – 12,256 Customers with Training Services– 385 Customers in Workshops – 7,518 Veteran Customers - 859 Unemployment Insurance Walk-In - 48,175 Full Service Center Lynn Total Customers – 17,010 Customers with Training Services– 425 Customer in Workshops – 10,569 Veteran Customers – 933 Unemployment Insurance Walk-In - 38,893 Functional Service Map – 7-1-2010 through 6/30/2012 *Business Services Unit – 2,685 (services cover all centers) We put the North Shore to Work! 23

24. R EORGANIZATION OF S ERVICE D ELIVERY Realities of Current Status: Demand for our services continue to grow The opportunity to receive training has a large impact on a person’s ability to find employment. Unfortunately, training funds will be greatly limited in the future. A need exists to re-invent our service delivery mechanism. Overhead costs reduce the funds available for training. New access points are present in the community, e.g., public libraries and community organizations. Technology presents new opportunities to expand service delivery options. 24

25. R EORGANIZATION OF S ERVICE D ELIVERY Re-Invention Action Measures Underway: Significantly Reduce “Bricks and Mortar“ commitment in favor of Consolidated Career Center and Community Access Points. Streamline the Administrative Staffing Patterns. Reorienting existing frontline staff into teams to provide enhanced core services that lead to jobs in our critical growth sectors. Identify and cross-train existing staff into teams that can deliver training and services at remote locations on a regular basis Utilizing technology to improve access and reduce selected service delivery costs. 25

26. C OMMITTEE R ECOMMENDATIONS HOW can we change our Service Delivery? One example… We put the North Shore to Work! Access Point Sites Kiosk Sites

27. C OMMITTEE R ECOMMENDATIONS Making these changes is expected to increase training hours and reduce costs: and broaden the impact of the services we can provide by focusing our delivery on growth sectors and bringing service delivery closer to customers Allowing us to better meet the needs of customers and businesses in our region. Provide computer and other occupational training to over 350 additional individuals Reduce overhead by at least $150,000 and We put the North Shore to Work! 27

28. N ORTH SHORE WI B Skills Gap Committee On-Line Learning Research Approximately 17 North Shore Career Center Customers have used ITA money for on-line learning with similar outcomes to traditional learning environments Have identified numerous on-line courses at NSCC and SSU and will be meeting with these colleges to get information on how these courses are use Long Term Unemployed Research Tend to be younger Tend to be less educated We need to target our program design with these issues in mind We put the North Shore to Work -

29. N ORTH S HORE WIB Partnership Committee Marketing Plan Update Update Labor Market Blueprint, WIB Brochure, and Sector Reports Report to Legislature – done by end of January Bi-monthly newsletter Four editorials New Partnership Development Manufacturing 1.Four WIB Consortium 2.Proposal sent in earlier this week Life Sciences – learning so much about this industry and hopefully developing a consortium with these companies We put the North Shore to Work -

30. N ORTH S HORE WIB Youth Pipeline Committee F1rstJobs 2012 http://www.northshorewib.com/documents/F1rstJobsReport2012.pdf http://www.northshorewib.com/documents/F1rstJobsReport2012.pdf Placed 458 teens, which is 11 more than last year Continues to be a local, regional, state-wide, and national concern State-wide Research Report to be completed shortly, confirming our experiences with this challenge F1rstJobs 2013 already on its way! Gateway Cities Career Academy Health Care Program with Salem High School, North Shore Medical Center, Cataldo Ambulance, Bane Skilled Care, North Shore Community College, Salem State University, Others Awaiting funding – keep your fingers crossed! Amp it Up Manufacturing Project Partnership with North Shore Technology Council Introduce Teachers to the North Shore Manufacturing Industry We put the North Shore to Work -

31. NORTH SHORE WORKFORCE INVESTMENT BOARD 70 Washington Street Suite 314 Salem, MA 01970 Tel. 978.741.3805 www.northshorewib.com 31 Next meetings: March 14, 2013 May 9, 2013