Workforce Development: A Critical Component of Economic Growth Strategies Sharon Sewell Vice Preside

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Workforce Development A Critical Component of
Economic Growth StrategiesSharon SewellVice
President Workforce ServicesWadley-Donovan
GrowthTech, LLC
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AGENDA

• WDG Overview
• Current Workforce Situation
• Public Workforce System (WIBs)
• The Recovery Act (ARRA)
• Aligning Workforce Economic Development
• Action Steps/Recommendations
• Questions?

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Wadley-Donovan GrowthTech,LLC (WDG)

• 34 year old consulting company
• Specializes in workforce and economic development
  consulting
• Sister firm Wadley-Donovan-Gutshaw is a leader in
  corporate relocation consulting
• WDG MISSION
• To enhance the well-being and communities and
  their residents through creation and delivery of
  innovative solutions
• Connecting the silos (Workforce, Economic
  Development, Education)

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Need for Workforce Development Critical

• Growing need for a skilled workforce (knowledge
  workers)
• Education Training critical for economic
  recovery, growth and global competition
• Key to filling labor force gaps

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Need for Workforce Development

• invested in workforce development returned by
  creating job opportunities at higher wages
  means more tax revenues
• Skilled workforce attracts and retains business

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Todays Workforce Challenges

• Unstable economy
• High Unemployment
• Soaring high-school dropout rates
• Shortage of qualified workers
• Aging workforce
• Diverse workforce

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Tomorrows Workforce Challenges

• Changing demographics
• Labor force growth slowing
• 1.6 - .6 annually
• Aging labor force
• Baby boomer retirements
• About 8,000 people turn 60 every day
• Workers over 55 13
• By 2020 20
• Diverse Labor force
• Immigration

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More Diverse Workforce
National Statistics
U.S. Census Bureau
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Tomorrows Workforce Challenges

• Severe shortage of skilled workers
• By 2028 there will be 19 million more jobs than
  workers
• United States ranks 11th in percentage of adults
  with HS Diploma among OECD Countries
• 88 million adults have at least one education
  barrier (no high school diploma speak limited
  English have high school diploma but no college
  degree)

U.S. Census Bureau, 2006 American Community
Survey Center for Higher Education Management
Systems
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Tomorrows Workforce Challenges

• New economic-development reality
• Skilled workforce has become as or more important
  than land and buildings
• Availability of a skilled workforce leads in
  three of four factors influencing growth (next
  slide)

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Ranking of Growth Factors According to Their
Importance to Economic Growth (Ranking by
statistical correlation, at 95 confidence level)
Growth Rate of
Source Cleveland Federal Reserve Bank, 2006
W.E. Upjohn Institute and Kleinhenz Associates
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Tomorrows Workforce Challenges

• Skills Gap Issue
• 39 current workforce and 26 of new hires have
  basic skills deficiencies
• 42 of new job growth requires some level of
  post-high school training
• 65 of American employment requires specific
  skills
• 75 of workforce needs training just to retain
  their jobs
• Skills gap and salary gap growing wider
• Workforce development is critical

U.S. Census Bureau
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Workforce Development System

• Workforce Investment Act (1998)
• Approx. 5B funding nationally
• 650 Workforce Investment Boards (WIBs)
• One-Stop delivery system
• Universal access
• Training
• Accountability/performance

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WIB Role Responsibilities

• Governance
• Oversee One-Stop delivery system
• Community conveners
• Ensure competitive advantage

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American Reemployment Recovery Act (ARRA)

• Preserve create jobs, promote economic recovery
  
• Assist those most impacted by the recession
• Provide investments to increase economic
  efficiency - spur technology advancement in
  science health
• Invest in infrastructure projects such as
  transportation, environmental protection, etc
• Stabilize state local government budgets to
  minimize cuts in needed services

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ARRA Funding Overview

• DOL Activity Amount Timeline
• WIA Adult 500M 30 days/6-30-10
• WIA Youth 1.2B 30 days/6-30-10
• WIA DW 1.250B 30 days/6-30-10
• SCSEP 120M 30 days/6-30-10
• UI/ES 400M (250M Remp) 30
  days/6-30-10
• YouthBuild 50M (competitive) 90
  days/6-30-10
• HG/Green Jobs 750M (competitive)
  6-30-2010/same
• NEG 200M (application)
  6-30-2010/same
• Job Corp 250M
• USDOL TWA

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ARRA Funding Overview Contd

• Activity Amount
• Pell Grant Program (DOEd) 15.6 B
• OJT/SS (DOT 20M
• Electric delivery Energy reliability 100M
• (DOE)
• HRSA Work Development (HHS) 500M
• CSBG (HHS) 1B
• CDBG (HUD) 1B
• Voc Rehab (DOEd) 540M
• Work Study (DOEd) 200M
• USDOL TWA

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Link Workforce Economic Development

• Workforce challenges are an economic-development
  issue
• Build strong partnerships between workforce
  development, economic development, and education
• Improved/efficient system responsive to business,
  residents 21st century workforce challenges
• Leverage resources
• Eliminate duplication
• Grow regional economies
• Increase competitive advantage

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Collaboration between ED WD

• Requires
• Understand roles responsibilities
• Shared vision
• Committed leadership
• Joint planning

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Economic Recovery/Growth Strategies

• Build strengthen partnerships
• Continuous research education
• Leverage funds
• Focus on workforce development/talent retention
  and attraction
• Retain expand mature industries
• Focus on industry sector development
• Promote small business development
• Create/improve infrastructure system to better
  serve business and 21st century workforce

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Federal State Efforts

• Federal Funds
• Workforce Innovation Regional Grants (WIRED)
• Regional Innovations Grants (RIGS)
• Stimulus (Formula, competitive, application,
  leverage)
• State Grants
• Minnesota First Grants
• New York 13M Grants

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Q A

• For more information, contact
• Sharon Sewell, Vice President Workforce
  Development Services
• www.wdgtech.com
• ssewell_at_wadley-donovan.com
• or call [phone] ext. 106

Image credit NASA, ESA, and the Hubble Heritage
(STScI/AURA)-ESA/Hubble Collaboration