21st Century Skilled Workforce Demands

Partnerships and PathwaysSeptember 17, 2008

Steve Maas

Department of Workforce Services

Utah’s Current Economic Snap Shot

• Utah unemployment rate August 2008 =3.7% US = 6.1%

• Utah year over year job growth rate = 0.3%3,260 jobs added year over year

US = -0.03%• Utah total wage and salary employment

256,960 an increase of 200,000 jobs since the 2002 recession

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0% UtahUS

Year-Over Percent Change

In Non-farm Jobs

Stretching the economy to accommodate new workers

Stretching the economy to accommodate new workers

150,000 100,000 50,000 0 50,000 100,000 150,000

0- 4

5- 9

10- 14

15- 19

20- 24

25- 29

30- 34

35- 39

40- 44

45- 49

50- 54

55- 59

60- 64

65- 69

70- 74

75- 79

80- 84

85+

Population

Worker Vacuum

Worker Vacuum

15 10 5 0 5 10 15

0- 4

5- 9

10- 14

15- 19

20- 24

25- 29

30- 34

35- 39

40- 44

45- 49

50- 54

55- 59

60- 64

65- 69

70- 74

75- 79

80- 84

85+

Population

Source: U.S. Bureau of the Census

FemaleMale

Utah’s Population by Age and Sex: 2005

FemaleMale

U.S. Population by Age and Sex: 2005

Millions

Dominating the Labor Force

Utah Employment (seasonally adjusted)

1,020

1,070

1,120

1,170

1,220

1,270

00 01 02 03

Source: U.S. Bureau of Labor Statistics; September 2007

04 05 06 07

Employment

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0% UtahUS

Year-Over Percent Change

In Non-farm Jobs

State of Utah Components of Population Change

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

1950 1956 1962 1968 1974 1980 1986 1992 1998 2004

Per

son

s

Net Migration Natural Increase Total Population Change

Source: Utah Population Estimates Committee

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0% UtahUS

Year-Over Percent Change

In Non-farm Jobs

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

UtahUS

Year-Over Percent Change

In Non-farm Jobs

1998 2000 2002 2004 2006 2008

Utah State Employment Growth Rates1950 – 2010f

-4%

-2%

0%

2%

4%

6%

8%

10%

1960 1970 1980 19901950

Source: Utah Department of Workforce Services: April 2008 f = forecast

2000

3.3% average since 1960

2010

Short-term OJT $10.40/Hr

32.7%

Mod-term OJT $14.30/Hr

20.4%Long-term OJT

$17.80/Hr8.1%

Work Exp $23.80/Hr

10.1%

Applied Tech $16.80/Hr

4.8%

Assoc Degree $22.80/Hr

3.5%

BS Degree + $32.70/Hr

20.4%

Percent of Utah Jobs in 2006by Training Level & Average Wage (2006)

Source: Utah Department of Workforce Services, Workforce Information, May 2008.

Short-term OJT $10.40/Hr

29.1%

Mod-term OJT $14.30/Hr

21.1%Long-term OJT

$17.80/Hr8.8%

Work Exp $23.80/Hr

9.6%

Applied Tech $16.80/Hr

5.0%

Assoc Degree $22.80/Hr

4.4%

BS Degree + $32.70/Hr

22.1%

Percent of New Jobs in Utah 2006-2016by Training Level & Average Wage (2006)

Source: Utah Department of Workforce Services, Workforce Information, May 2008.

Typical Skills Requirements for Occupations in Utah (2006)

Low Skills Occupations33%

Middle Skills Occupations

47%

High Skills Occupations20%

Note: Low skills occupations typically require: short-term on-the-job training. Middle skills occupations typically require: medium-term and long-term on-the-job training, w ork experience in a related occupation, post-secondary vocational training, or an associates degree. High skills occupations typically require: bachelor's degree, bachelor's degree or higher degree and w ork experience, master's degree, f irst professional degree, or a doctoral degree.Source: Utah Department of Workforce Services.

Typical Skills Requirements for Occupations in Utah (2016)

Low Skills Occupations32%

Middle Skills Occupations

47%

High Skills Occupations21%

Note: Low skills occupations typically require: short-term on-the-job training. Middle skills occupations typically require: medium-term and long-term on-the-job training, w ork experience in a related occupation, post-secondary vocational training, or an associates degree. High skills occupations typically require: bachelor's degree, bachelor's degree or higher degree and w ork experience, master's degree, f irst professional degree, or a doctoral degree.Source: Utah Department of Workforce Services.

Utah’s Training Trends

• USOE estimates 144,000 new students will enter our school system over the next 10 years

• Census data estimates 211,000 current Utah adult workers without a high school diploma

• Our demographics are rapidly changing• Our system must give access to all learners• Increasing need for workers with post-secondary

training; technical skills, flexible, transferable• Research scientists are critical – but so are

machinists

Utah’s Training Trends

• Rigor and Relevance• Emphasis on both 4 year degree and post-secondary

training• Innovation comes from both• STEM (Science, Technology Engineering and Math)

Education is essential to compete• Need for more guidance counselors at the K-12 level

who have knowledge of all post-secondary training opportunities

• K-12 graduation credits for Applied Math and Science - articulation to post-secondary studies

State/Regional Council on Workforce Services

• Partnership between Industry, Higher Education, USOE, USOR, GOED, and DWS

• Identify current and future skills needs to meet Industry demand

• State and Regional Workforce Development strategies

• Information and tools for parents, students and education on careers/occupations, skills

• 21st Century Workforce Initiative – Council;WEEDA/Partnership system on steroids!

Industry Issues

Rich Thorn – President/CEO – Utah Associated General ContractorsState Council on Workforce Services:

Construction Industry Sector Expert• We need our educational system to better prepare

students to go to work• We need to have a balanced emphasis on both the

preparation of the 25% of the students for University studies as well as the 75% who will directly enter the workforce

• Competency Based

Partnerships and Pathways!

Examples at Work

Current Areas of Focus

GOED Cluster Initiatives• Aerospace• Defense & Homeland

Security• Energy & Natural

Resources• Financial Services• Life Sciences• Outdoor Products &

Recreation• Software & Information

Technology

DWS Sector Initiatives

• Automotive/Diesel Tech

• Construction

• Energy

• Healthcare

• Composites/Advanced Manufacturing

• Demand Occupations

Current Partnership CTE/Sector Activities/Events

• Private Sector lead Task Forces in Automotive, Construction, Energy, Healthcare - Deliverables

• Energy Sector Super Tour – July/August• Gear Up! – Davis County – Sept 30 – Oct 1• MotorFest –SLCC – Oct 6 & 7• Construction Sector Super Tour – Oct 16• Healthcare Career Days – Uinta Basin – Nov 6• Healthcare Career Days – Granite – Feb12• Construction Career Days – March/April ’09• Healthcare Super Tour – Summer ’09?• Manufacturing Career Days – Cedar City

CTE Related Training Grants Through State Council/Partnership System

• U of U Nursing $871k• WETC Energy Training $2.8m• CEU San Juan Campus Nursing $1.2m • SLCC/GTI Bio-manufacturing $2.0m• UVU Manufacturing - Mechatronics $1.8m• DATC Manufacturing - Composites $2.3m• WIRED – 19 Partners – Life Sciences $5.2m

WIRED To make Utah a world-class location for biotechnology life sciences by

building integrated, innovative educational programs that create an available, adaptable, and highly-skilled workforce.

Goal #1: “Collaboration & Partnerships”– Promote and enhance partnerships among economic development, workforce development, education, and

industry stakeholder in Utah to better leverage and integrate assets and be more responsive to economic change.

Goal #2 “Remove Barriers to Training”– Build up capacity and opportunities for to join the life sciences workforce . Remove Barriers to entry for new

workers into the system by changing the perception about the future of life sciences in the state.

Goal #3 “Industry Outreach and Cluster Building”– Support the growth and formation of bio-related industries through new assessments and outreach programs

promoting a competency approach to building a life science cluster in Utah.

Governor’s Office of Economic Development

Uniting Utah’s Universities, Associations, Chambers, and GOED on a Common Platform

Utah Recruitment Initiative

What is the Utah Recruitment Initiative?

Real Time Recruiting to fill many currently open positions in the state that need to be

filled to grow Utah businesses

Job Board with Current Listings

Job Seeker Profile Database Active and Passive Candidates

What is www.utahworksforyou.com?

          

Education’s Challenge

• The high school graduating class of 2021 just entered the public education system

• It’s a 13 year production cycle

• Kids are born prepared to learn

• 3rd graders who can’t read seldom catch up – and represent our future drop outs

Conclusions

• More jobs are requiring higher levels of skill• Jobs requiring less than a 4-year degree are

value added to Utah’s economy• Both advanced degree and post-secondary

training are needed for economic growth/innovation

• More guidance counselors skilled in advising on all occupations are needed

• It should be difficult to drop out of school• Our economy cannot afford drop outs

“If the pace of change inside theorganization is slower than the pace ofchange outside the organization…

the end is near.”

Jack Welch

Retired CEO

General Electric

Partnerships and Pathways!

Questions?smaas@utah.gov