1

Washington State’s Perspective: Strategies for Economic Stabilization and Renewed Economic Growth

René EwingGovernor’s Special Assistant for

Management and Quality Improvement

December 6, 2001

2

Overview

Our economy, our challenges How we’re using training resources

to respond How we’re sustaining public-

private partnerships How we’re maintaining progress in

difficult times

3

Software and Jets drive Washington’s economy (2000 Annual Average)

Source: Employment Security Department, LMEA

Covered Industry Total Empl % of Tot Empl % of Tot WagesPrepackaged Software 30,248 1.3% 10.2%Aircraft 76,621 3.4% 5.9%Eating Places 169,853 7.6% 2.8%Hospitals 55,154 2.5% 2.6%Medical Doctors 42,434 1.9% 2.1%Grocery Stores 61,955 2.8% 1.6%Help Supply Services 49,582 2.2% 1.4%Department Stores 47,453 2.1% 1.3%Telephone Communications 14,812 0.7% 1.3%Computer Programming Services 13,413 0.6% 1.3%

4.7% 16.1%

4

The state’s rate of nonagricultural employment growth has slowed

4.0%

3.0%

1.9%2.3%

0.10%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Sept '97 Sept '98 Sept '99 Sept '00 Sept '01

Source: Employment Security Department, LMEA

10-year Average

September to September change - Seasonally Adjusted

5

2001 unemployment rate rose atyear’s end, projected to remain high

0%

1%

2%

3%

4%

5%

6%

7%

8%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1999 2000 2001 2002

2002 Forecast

Source: Employment Security Department, LMEA

Seasonally Adjusted

6

Our challenges

Respond to structural changes in economy, i.e., aluminum and pulp and paper industries, Boeing, dot.com bust

Respond to cyclical nature of economic downturn

7

How are we responding?

Washington has a better safety net than many other states:

Red Flag report and rapid response teams

Worker Retraining Program Training Benefits Program Short-term customized training WorkSource one-stop system on the

web: www.go2worksource.com

8

Red Flag report, rapid response

Red Flag report Provides status of projected and actual

dislocations Sent twice monthly to workforce

investment councils, key state agencies

Rapid response Teams active in all areas of the state Takes services to employers before

layoffs

9

Worker Retraining Program

Annually budgeted for 5,400 FTEs at two-year colleges, 550 FTEs at private career schools

Results: Increasing enrollment in high-wage programs High post-program wage recovery, employment

Program represents 13 percent of colleges’ workforce training FTEs

10

Training Benefits Program

For dislocated workers enrolled in full-time training

Up to 52 weeks of unemployment insurance benefits

Dislocated aerospace, timber and fin fishing workers eligible for 74 weeks of UI benefits

11

Short-term customized training

Pilot program Short-term, employer-based training Designed to avert dislocation $1.3 million to workforce development

councils this program year

12

WorkSource one-stop system

www.go2worksource.com – past six months Number of resume postings, job searches, job

applications increasing Number of jobs posted, resume searches

declining Most ever number of user sessions in October –

106,399

Significant community partnerships including state’s two-year colleges

13

Our strategy in current situation:Use resources effectively

May be additional federal money in economic recovery package

Governor and state’s community and technical college system are working to add training capacity at two-year schools

Need for additional training will increase pressure on our two-year college system

14

After the recession, we’ll still havea skills shortage to address

Labor force growth is slowing

We’ll continue working with business and industry so they we are positioned to meet their needs

How? Supporting key industry clusters

15

Attending to our future: youth

We want to help young people focus on their future career

Partner with the K-12 system on new program standards for career and technical education

Example of success – Pierce County Careers Consortium

16

Sustaining public-private partnerships

Continue our industry cluster strategy

Funding eight more skill panels this year

Community and technical colleges responding to business needs

Governor’s Competitiveness Council making recommendations on human capital

17

Maintaining progress in difficult times

Strengthen partnerships with workforce development councils

Encourage councils to use strategic management tools

Develop good incentive policies