Andy Levin Chief Workforce Officer, State of Michigan Deputy Director, Department of Energy, Labor...

Andy LevinAndy Levin

Chief Workforce Officer, State of MichiganChief Workforce Officer, State of Michigan

Deputy Director, Department of Energy, Labor and Deputy Director, Department of Energy, Labor and Economic GrowthEconomic Growth

November 17, 2009November 17, 2009

No Worker Left Behind and No Worker Left Behind and National Career Readiness National Career Readiness

Certificate:Certificate:Michigan’s Workforce Michigan’s Workforce

Transformation Transformation

A timely opener

We must invest in education

K-12 education is key to MI’s long-term success

Additional revenue is needed to avoid massive cuts in core programs in schools across the state

And - we must restore the MI Promise

The Great Recession – Worst Since ‘30s

1981 Recession

Current Recession

1990 Recession

2001 Recession

Source: Lawrence Mishel, President, Economic Policy Institute, “Sounding the Alarm:Update on the Economic Downturn”

Source: NASWA

0

2

4

6

8

10

12

14

1620

00

2001

2002

2003

2004

2005

2006

2007

2008

2009

Ann

ual A

vg U

nem

ploy

men

t Rat

e

U.S.

Michigan

sources: Bureau of Labor Statistics, and National Bureau of Economic Research

(Recessions shaded )

Michigan September 2009:

15.3% unemployed(But then add 71,000 marginally attached

and 257,600 involuntary part-time. . .)

20.7% un- and underemployed

Unemployment & Underemployment

Right now: 56 applicants for every job

18,887

1,051,606

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Jobs AvailableResumes Available

Educational Attainment

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

> 9th grade

Some HS

HS Grad

Some college

AD BA BA < and professional

MIUS

No HSD692,101

English Less than Very Well

239,128

Low wages (<$15.45)

and no PSE1,153,040

372,414

239,800

41,568

38,322

839,528 123,85135,390

Percent of the total working-age adults (5,041,710): 34%Source: U.S. Census Bureau, 2006 American Community Survey (Public Use Microdata Samples)

1,690,870 Michigan Working-Age Adults (18-64) Need Improved Basic Skills, 2006

The Good Jobs of Today & Tomorrow Require Training

Occupation Network systems and data communications analysts Physician assistants Computer software engineers, applications Physical therapist assistants Dental hygienists Computer software engineers, systems software Network and computer systems administrators Database administrator Physical therapist Forensic science technician

650,000 New Middle-Skill Jobs Predicted for MI by 2016

Source: Calculated by TWA from MDELEG data

More education means lower unemployment rates

Source: U.S. Census Bureau, 2007 American Community Survey

17.4%

10.0%

6.9%

3.4%

Less Than HS

HS Graduate

Some College orAssociate's

Bachelor's Degree +

$18,642

$26,296

$32,592

$47,171

$64,244Graduate orProfessional

Bachelor's

Associate's orSome College

High SchoolGraduate

Less Than HighSchool

Michigan – 2007 American Community Survey, U.S. Census Bureau

The more you learnThe more you earn

Weekly Earnings and Unemployment Rate by Educational Level, U.S.Source: Current Population Survey, April 2009

$0

$200

$400

$600

$800

$1,000

$1,200

< 9th Grade HS AA Deg BA Deg

2%

4%

6%

8%

10%

12%

14%

Weekly Earnings Unemployment Rate

Source: DELEG, Bureau of Labor Market Information & Strategic Initiatives Michigan Job Vacancy Survey 2006

$34.15

$22.50

$19.59

$11.68$9.50$8.00

0%

10%

20%

30%

40%

50%

60%N

o D

iplo

ma

HS

/GE

DV

ocat

iona

l Tra

inin

gA

ssoc

iate

's D

egre

eB

ache

lor's

Deg

ree

Adv

ance

d D

egre

e

Pe

rce

nt

of

Jo

b V

ac

an

cie

s (

%)

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

Me

dia

n W

ag

e (

$)

Education Median Wages

Our Jobs Dilemma

There IS hope hope – key sectors have grown since MI’s last economic peak in 200334%

10%13%

24%

16%

0%

5%

10%

15%

20%

25%

30%

35%

Econom

ic Grow

th from 2003-2008

AgricultureArts/Ent.

HealthcareInformation

Prof. & Tech. Services

Key Economic Sectors

Source: Center for Michigan, June 3 2009, Analyzing U.S. Bureau of Economic Analysis data on state gross product,

Major ChallengeMajor ChallengeRebuilding adult ed in MIRebuilding adult ed in MI CLEG unanimously

approved comprehensive recommendations to transform the adult learning system

Goal: cut the # in need of basic job skills in HALF

MI NCRC complements everything we are discussing in adult learning transformationRelevant education

and training

Real payoffs for the adult learner

Alignment

No Worker Left Behind (NWLB)

Double # of Double # of Michiganders TrainedMichiganders Trained

In-demand occupationsIn-demand occupations To over 100,000To over 100,000 Over 3 yearsOver 3 years

Where is NWLB Today? 102,413 people enrolled in training

by Columbus Day We surpassed 100,000 goal 10

months early First outcomes report released Governor makes NWLB permanent Obama Administration awards

DELEG $38M to train 8,644 workers in three regions (27 counties)

We have greatly accelerated the pace of enrollment – we are putting WIA participants into training at double nat’l rate

17.50% 42%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

WIA Adult + DW Participants Enrolled in Training

NationalMichigan

Source: NWLB Outcomes Report – Adult and Dislocated Workers (Workforce Investment Act) Data

NWLB = 3X more people in long-term training (training longer than one year)

24% 77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

NationalMichigan

Source: NWLB Outcomes Report – Adult and Dislocated Workers (Workforce Investment Act) Data

What are people studying?

Job retention training is helping companies grow and giving employees necessary skills upgrades

Examples: St. Mary’s Healthcare, Wolverine Coil, NK Manufacturing, Cove Quality Foods, Fleet Engineering, North Coast Component

Is anybody who completes training actually finding work in this super tough job market?

After the first 18 months, 11,613 core NWLB participants completed training. Of those trained, 5,559 people got a new job or retained their current job

52% 48%

Got new job

Still looking forjob

Source: NWLB Outcomes Report

Bottom line: Is training helping people get jobs? 86% of unemployed or underemployed people who

got jobs, got jobs related to their training

14%

86%

Not related totrainingTraining related

Source: NWLB Outcomes Report: WIA and TAA participants

NCRC is key credential for NWLB Last year, at this conference, we

announced our MI NCRC policy A year later the National Career Readiness

Certificate is the standard job readiness credential for NWLB program participants

Michigan is the only state in the nation that has aligned K-12 and workforce system with one job readiness credential that is nationally portable

One year later: Implementation of MI NCRC at a glance

Policy Issuance 0830 Michigan Career Readiness Certificate – July 1st, 2009 Nearly $4M allocated to MWAs for implementation for

testing licenses, set up of testing centers, training, new software, administrative support, etc.

Made it state policy that NCRC is the standard credential Focused first year on integrating it with NWLB

Regional training sessions through out the state 100 staffers trained

NCRC testing now available at all 25 MWAs Special MI Certificate – extending Michigan’s brand 7,000 certificates since July 1st

More certificates at a faster rate

NCRC is a major component of DELEG designed NWLB-affiliated programs NCRC requirements at entry

and exit Enter with Bronze Exit with Gold

RCAR 163 certificates thus far

ECAR

Michigan ranks 2nd in certificates earned nationally – we have 25% of all certificates

Goal: 500,000 certificates by 2013 We have an ambitious goal to have over a half

million Michigan residents in our workforce and K-12 systems earn Michigan National Career Readiness Certificates by 2013

““I want to applaud Governor Granholm for the No Worker I want to applaud Governor Granholm for the No Worker

Left Behind program. It's providing up to two years' worth of Left Behind program. It's providing up to two years' worth of

free tuition at community colleges and universities across free tuition at community colleges and universities across

the state. The rest of the country should learn from the the state. The rest of the country should learn from the

effort.” effort.”

-President Obama at Macomb Community College, 7-13-09-President Obama at Macomb Community College, 7-13-09

Looking forward: Influencing national workforce policy

NCRC can play an important role as MI increasingly enters national policy fray

President’s community college initiative

Tackling the elephant in the room: millions of unprepared adult workers

Trying to make WIA reform the basis for a true 21st Century national workforce policy

Moving Forward Questions?