SBDC Economic Outlook Conference

Linking Economic and Workforce Development: National & Regional PerspectivesSeptember 18, 2012

September 18, 2012 | SBDC Economic Outlook Conference

Key Points

• Postsecondary education is the best insurance policy in an uncertain global economy

• Talent pipelines built on strong public-private partnerships will define winning regions

• Economic developers have a key role to play—linking, leveraging, and aligning

http://tipstrategies.com/geography-of-jobs/

http://tipstrategies.com/geography-of-jobs/


http://mjperry.blogspot.com/2012/06/chart-of-day-education-matters.html


http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/CollegeAdvantage.FullReport.081512.pdf


http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/CollegeAdvantage.FullReport.081512.pdf


Source: US Bureau of Economic Analysis, US Census Bureau


Source: US Bureau of Labor Statistics, US Census Bureau


Education: What’s at stake?• 37% (7.5M) of all new jobs in US expected by

2020 will require postsecondary degree*

• 16 out of top 25 fastest growing occupations in US will require postsecondary degree

• 91 out of top 100 highest paying occupations in US require postsecondary degree

Source: U.S. Bureau of Labor Statistics. *Degree as used here includes one or two-year certifications.

Springfield (MSA): 31% of workforce age 18-64 has associate’s degree or higher—86,000 out of 273,000—will it be enough to compete for the jobs of the future?

http://thehill.com/blogs/on-the-money/economy/248355-skills-gap-is-hampering-labor-market

“49% of business owners hired or tried to hire in the last three months and 37% reported few or no qualified applicants for

open positions.”


http://www.areadevelopment.com/AnnualReports/Winter2012/26th-Corporate-Consultants-RE-survey-results-287677888.shtml

Our #1 Challenge: Skills Gap

67% of employers reported that high unemployment is not making hiring easier. Lack of technical skills (advanced welding, tool programming) is largest barrier.

Where the Jobs Are Is Where the Skills Aren’t

“A serious mismatch is developing between the kinds of skills needed for areas of high projected job growth and the skills that will be available in the U.S. labor force.”

September 19, 1988


Texas: Staring Down the Skills Gap

Source: EMSI


Source: U.S. Bureau of Labor Statistics

Key Points

The talent pipeline is broken, especially for skilled trades.

Employers are defining job requirements in such a way that

applicants need to have done the job already.

Limited number of formal apprenticeship programs,

esp. in manufacturing.

Staffing Pattern for Electrical Equipment & Component ManufTop 5 Hiring Needs by % of Total Workforce Education Experience On-The-Job Training

Team Assemblers High school diploma None Up to 12 months

Electrical and Electronic Equipment Assemblers High school diploma None Up to 1 month

Extruding and Drawing Machine Setters, Operators, and Tenders High school diploma None Up to 12 months

First-Line Supervisors of Production and Operating Workers Postsecondary award 1-5 years None

Inspectors, Testers, Sorters, Samplers, and Weighers High school diploma None Up to 12 months

Are these realistic expectations about

employer needs and how the labor

market works?

http://www.prosperity2020.com

http://www.louisianaeconomicdevelopment.com/incentives--programs/led-faststart.aspx

http://www.louisianaeconomicdevelopment.com/incentives--programs/led-faststart.aspx

http://www.nortech.org/news-room/press-releases/northeast-ohio-winner-of-white-house-jobs-and-innovation-accelerator-challenge

regional intermediary leading cluster effort

entrepreneurship workforce industry

Northeast Ohio Speed To Market Accelerator‐ ‐ will employ a step by step ‐ ‐process to help accelerate the commercialization of products, increase

the global competitiveness of cluster companies, attract additional private capital to the region, and attract students, incumbent workers,

and the unemployed to educational and training programs.


Taking action

• Re-imagine the role of economic development organizations in the talent pipeline—start with how we talk about workforce development

• Adopt measureable human capital goals as part of your organization’s strategic plan

• Read Cappelli’s book—what public-private partnerships are needed in Springfield?


http://www.austinchamber.com/education-talent/education-initiatives/

http://www.austinchamber.com/education-talent/education-initiatives/

http://youtu.be/gfHL7_xfkcY

Modeled after apprenticeship programs in Germany

Cost to school district: $15K of federal Title I funds

Company promising that 75% of participating students will be offered full-time jobs as well as tuition assistance

http://www.tuscaloosanews.com/article/20120914/NEWS/120919880/1291/

http://www.pennyrilefuture.com

Government-funded programs love planning exercises—look for opportunities to align economic

and workforce strategies.


http://www.wfscapitalarea.com/images/stories/full%20report_state%20of%20workforce.pdf

Think creatively about how you can use data to align goals and market workforce assets.

http://www.reditn.com/redi-college-access


Key Takeaways

• Advocate for alignment in #econdev, #wkdev, and education whenever possible, especially with state and federal policy makers

• Shovel-ready sites & work-ready jobs—regions able to respond quickly with scalable training customized to employers will stand out

• Keep doing what you’re doing


@brianjkelsey

http://civicanalytics.com

linkedin.com/in/brianjkelsey

Brian Kelsey, PrincipalCivic Analytics [email protected]

Business

SBDC Economic Outlook Conference