21 st Century Workforce: Central Illinois

21st Century Workforce:

Central Illinois

Richard W. Judy

Workforce Associates, Inc.wf21@WorkforceAssociates.com

317-841-0133

221st Century Workforce: Central Illinois

Workforce 2020 was the starting point.

321st Century Workforce: Central Illinois

Central Illinois defined

Illinoi

Marshall

Peoria

Stark

Tazewell

Woodford

Map 1Central Illinois

Illinoi

Marshall

Peoria

Stark

Tazewell

Woodford

Illinoi

Illinoi

Marshall

Peoria

Stark

Tazewell

Woodford

Map 1Central Illinois

421st Century Workforce: Central Illinois

Five axioms1. Economic Development and Workforce

Development are “joined at the hip.”2. Every region needs a strong export

sector.3. Productivity is the key to growth &

prosperity.4. Plans for progress & change must

come from the inside.5. Follow-through and implementation

are the keys to success.

521st Century Workforce: Central Illinois

An overview

1. A brief look at how Central Illinois has fared economically in recent years.

2. Ten basic findings of the study.3. Three scenarios of the future.4. Developing a 21st century

workforce for Central Illinois: 10 key challenges.

621st Century Workforce: Central Illinois

The area’s economic growth has lagged the state’s and nation’s

Indexes of GDP Growth for the U.S., Illinois, and the Central Illinois Region,

1977-1998 1977=100

60

80

100

120

140

160

180

200

Year

GD

P G

row

th In

dex

19

77=1

00

Central Illinois

Illinois

United States

Source: Bureau of Economic Analysis and estimates based on BEA data.

Recent years (conc.)

721st Century Workforce: Central Illinois

Central Illinois’ Three Historical Eras of Economic Development, Early Times Into the 21st Century (An impressionistic view)

1800 1900 2000 2100

Farming

Agricultural Processing

Heavy Equipment Manufacturing

Tomorrow’s Leader or leaders

Number of Jobs

Time

Finding

#1

821st Century Workforce: Central Illinois

Central Illinois needs new & stronger “export” clusters

Export or die. Conducive conditions:

Excellent schools & culture of learning. Physical infrastructure. Fair and reasonable taxes. Institutional & government coherence. Regional cooperation. First class public services. A workforce adequate in quantity and high

in quality

Finding

#2

921st Century Workforce: Central Illinois

Powerful forces are creating a “knowledge economy” in America

Forces driving change: Technology Globalization Changing industrial & occupational

structure Profound demographic change

Finding

#3

1021st Century Workforce: Central Illinois

Competitive success in a “knowledge-based” economy

Depends on the ability to: Produce new ideas, transform old ones, & convert them

into intellectual property. Incorporate & commercialize knowledge into products

& services. Respond quickly to rapidly changing opportunities,

threats and other market conditions. Quickly acquire new technologies, skills and

knowledge. True for communities, companies and

individuals. Central Illinois must become part of America’s

new “knowledge-based” economy or fall behind.

Finding

#3 (conc.)

1121st Century Workforce: Central Illinois

Wanted: A strategy for economic development in C.I.

C.I. has lacked a coherent strategy & defined direction for its economic development in the early 21st century.

The Bioscience initiative and its outgrowths are steps in the right direction.

“We need more than one vine to climb.”

Finding

#4

1221st Century Workforce: Central Illinois

C.I.’s workforce growth has lagged seriously.

Index of Workforce Size, U.S., Illinois, and Central Illinois, 1975-2000

90

100

110

120

130

140

150

160

1975 1980 1985 1990 1995 2000

Ind

ex

: 1

97

5=

10

0

United States

Illinois

Central Ilinois

Source: IDES

Finding

#5

1321st Century Workforce: Central Illinois

Worker dearth: The quantitative workforce challenge

Finding

#5 (conc.)

A Looming Worker Shortage by 2008 in Central Illinois?

23,822

5,839

-17,983

-25,000

-20,000

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

25,000

30,000

ProjectedEmployment Growth,

1998-2008

Projected Growth ofWorking Age

Population, 1998-2008

Possible Shortfall

Nu

mb

er

of

Wo

rker

s o

r P

ers

on

s

Sources: Employment growth projections are from Illinois Department of Employment Security. Projected growth of the working age population is from Illinois Department of Commerce and Community Affairs.

1421st Century Workforce: Central Illinois

How to cope with potential worker dearth?

Augment workforce growth Spur growth of working age population. Boost participation rates among all groups

(including minorities, women, older residents and persons with disabilities).

Raise net inbound commuting. Raise productivity

Increase investment & improve management.

Improve workforce quality. Improve the match of workers with jobs.

Finding

#5 (conc.)

1521st Century Workforce: Central Illinois

Improving workforce quality: What it means.

In America’s 21st century “knowledge-based” economy, a successful person and a valuable worker will need: Great powers of flexibility, creativity,

and the capability to quickly acquire new skills & knowledge.

The motivation and ability to quickly learn what he/she does not yet know.

A sound basic education.

Finding

#6

1621st Century Workforce: Central Illinois

A sound high-school education is an essential prerequisite

Without it, the prospect is for a life of dismal jobs and meager earnings.

Much room for improvement in C.I In 2000-2001, nearly 700 C.I. high students

dropped out of school. Probably 500 of those will never receive a

high school diploma or G.E.D. Over the course of 10 years, that totals to

5,000 young people, Even among those who do graduate, too

many fail to demonstrate at least the minimum level of achievement according to state standardized tests.

Finding

#6 (conc.)

1721st Century Workforce: Central Illinois

Improving K-12 education is key to workforce development in C.I.

K-12 education is the most important formal workforce development most people ever experience.

Reduce dropout rates & raise graduation rates.

Improve learning outcomes; Cognitive skills (The four “Rs” – reading,

‘riting, ‘rithmetic, and reasoning.) Communication & computer skills. “Soft skills” including teamwork, leadership

& customer relations, & other “people” skills. Ability to find and use information and to

learn things that you don’t already know.

Finding

#7

1821st Century Workforce: Central Illinois

Learning must continue throughout life.

A dynamic and ever-changing “knowledge-based” economy means that one’s old skills & knowledge can become obsolete rapidly & frequently.

To maintain their employability & earning power, workers must retool, refresh & augment their skills & knowledge continually.

Incumbent workforce needs: Motivation to retool, refresh, gain new skills,

etc. Opportunities to do so.

Finding

#8

1921st Century Workforce: Central Illinois

The match of workers with jobs

Already pretty good in C.I. But it can be improved:

Career counseling. Students. Marginal workers Incumbent workers.

Student & worker assessment. Job profiling. Comprehensive and up-to-date labor market

information.

Finding

#9

A promising area for business-education collaboration!

2021st Century Workforce: Central Illinois

C.I.’s workforce development system

Much improved in recent years. But it is still too fragmented.

Multiple agencies & departments delivering services.

Each with its own funding streams and bureaucratic turf to defend

Impedes full implementation of the “one-stop” concept

It’s past time to bury all bureaucratic and other parochialisms.

Finding

#10

2121st Century Workforce: Central Illinois

Ten key challenges1. Make C.I. a “Learning Community” and

“brand” it as such.2. Reduce high school dropout rates &

raise graduation rates.3. Improve educational outcomes of K-12

education.4. Ensure proper mix of educational and

training opportunities as well as of career guidance and counseling.

5. Make the C.I. worker training and retraining system the nation’s most responsive & efficient

Challenges

2221st Century Workforce: Central Illinois

What is a learning community?Two essential components:

Motivation High awareness among all members of the

community of the value and critical importance of education and lifetime learning.

An avid enthusiasm and drive for learning & knowledge throughout the community.

Opportunity Affordable and accessible opportunity for

every person of every age to further their drive for learning and self improvement.

A definitionConc.

2321st Century Workforce: Central Illinois

Ten key challenges (concluded)

6. Recruit & retain a skilled workforce pool for Central Illinois.

7. Lower barriers to workforce participation for all.

8. Make C.I. highly attractive place to live & work for the kind of talent needed. (PEEP)

9. Work together. Banish petty parochialisms.10. Bring the Bioscience Strategy and other

viable economic development strategies to fruition.

ChallengesConc.

Thanks Very Much

Richard W. JudyWorkforce Associates, Inc.

dickjudy@WorkforceAssociates.com317-841-0133