Workforce Education: Economic Workforce Education: Economic Demand, Student Access, and Demand, Student Access, and

Financial NeedFinancial Need

Bryan WilsonBryan WilsonAssociate Director-Workforce Associate Director-Workforce

Board Board &&

Maralyn ChaseMaralyn ChaseState RepresentativeState Representative

3232ndnd Leg District Leg District

December 2006December 2006

Economic DemandEconomic Demand

Projected Job Openings by Training Level, 2009-2012

Four Years or More, 21%

More Than One but Less Than Four

Years, 21%

One to 12 Months, 16%

Less Than One Month or No Postsecondary Training, 42%

Economic DemandEconomic Demand

Economic DemandEconomic Demand

Gap Between Demand and Supply for

Postsecondary Workforce Education

26,400 26,400

28,400

29,500

31,000 31,000

2009 2012

Supply as of 2004

Supply if supply

increases at the rate of

student-age population

growth

Demand based on

number of net job

openings

Economic DemandEconomic Demand

Level of EducationLevel of Education Estimated # of Firms Having Estimated # of Firms Having Difficulty Finding Qualified Difficulty Finding Qualified Workers with that EducationWorkers with that Education

Neither H.S .Diploma or GEDNeither H.S .Diploma or GED 4,7004,700

H.S. Diploma or GEDH.S. Diploma or GED 14,10014,100

Some College Course WorkSome College Course Work 18,90018,900

Vocational CertificateVocational Certificate 19,20019,200

Vocational Associates DegreeVocational Associates Degree 18,10018,100

Academic Associates DegreeAcademic Associates Degree 10,70010,700

Baccalaureate DegreeBaccalaureate Degree 13,90013,900

Masters DegreeMasters Degree 8,7008,700

Doctorate or Professional DegreeDoctorate or Professional Degree 3,8003,800

Student AccessStudent Access and and

Retention Retention

Barriers to Student Access and Barriers to Student Access and CompletionCompletion

Financial costs of tuition, fees, and living Financial costs of tuition, fees, and living expensesexpenses

Lack of information about training Lack of information about training opportunities and financial aidopportunities and financial aid

Child careChild care Time involved and location of training Time involved and location of training

opportunitiesopportunities Academic preparationAcademic preparation

Actions to Reduce Barriers to Actions to Reduce Barriers to Student Access and CompletionStudent Access and Completion

Increase financial aidIncrease financial aid Provide better access to comprehensive Provide better access to comprehensive

information about training opportunities information about training opportunities and financial aidand financial aid

Provide comprehensive support services, Provide comprehensive support services, including child care, tutoring, and including child care, tutoring, and transportation assistancetransportation assistance

Actions to Reduce Barriers to Actions to Reduce Barriers to Student Access and CompletionStudent Access and Completion

Provide more convenient training Provide more convenient training opportunities, such as on the job trainingopportunities, such as on the job training

Integrate Adult Basic Education/ English as Integrate Adult Basic Education/ English as a Second Language and developmental a Second Language and developmental education with workforce educationeducation with workforce education

Create more modularized programsCreate more modularized programs

Financial NeedFinancial Need

Study MethodsStudy Methods

Analysis of Student Financial Aid Records Analysis of Student Financial Aid Records (Traditional Financial Aid Programs) and (Traditional Financial Aid Programs) and Community and Technical College Student Community and Technical College Student RecordsRecords

Analysis of Workforce Development Analysis of Workforce Development Program RecordsProgram Records

Workforce Education Student Unmet NeedWorkforce Education Student Unmet Need After Traditional Student Aid 2004-2005 After Traditional Student Aid 2004-2005

Number With Unmet Need

Total Amount of Unmet Need

Median Amount of Unmet Need Per Student with Unmet Need

Need, before aid 31,369 $277,616,514 $8,820

Unmet need, after grant/scholarship/ waivers

30,652 $200,413,625 $6,314

Unmet need, after grants and work study

30,550 $194,178,675 $6,158

Unmet need, after grants, work study, and loans

27,424 $151,351,654 $4,921

Workforce Education Student Unmet Need inWorkforce Education Student Unmet Need in2004-2005 After Traditional Student Aid2004-2005 After Traditional Student Aid

and Aid from Workforce Development Programsand Aid from Workforce Development Programs

Total Amount of Unmet Need

Need, before aid $277,616,514

Unmet need after traditional student aid

$151,351,654

Estimated unmet need after traditional student aid and aid from Workforce Development Program

$97 million

ConclusionsConclusions

There is Economic Demand for More There is Economic Demand for More Workforce EducationWorkforce Education

The Biggest Barrier to Increased Student The Biggest Barrier to Increased Student Access and Retention is Financial NeedAccess and Retention is Financial Need

The Best Available Estimate of Unmet The Best Available Estimate of Unmet Financial Need among Current Workforce Financial Need among Current Workforce Education Students is approximately $97 Education Students is approximately $97 million per yearmillion per year

Fiction or FactFiction or Fact

Wa State does not supply enough BA Wa State does not supply enough BA degrees…degrees…

We are supplying the number We are supplying the number needed but a mismatch between the needed but a mismatch between the fields of study and the occupations fields of study and the occupations that are in demand.that are in demand.

Fact or FictionFact or Fiction

Washington ranks near the bottom of Washington ranks near the bottom of states in BA attainmentstates in BA attainment

Washington ranks 28, about in the Washington ranks 28, about in the middle among all states for BA middle among all states for BA attainment.attainment.

Where do we want to rank?Where do we want to rank?

A middle ranking is the ideal, A middle ranking is the ideal, because some states produce more because some states produce more than they need and some produce than they need and some produce less than they need.less than they need.

If Washington aims for “Number 1” in If Washington aims for “Number 1” in BA attainment, it would be supplying BA attainment, it would be supplying the rest of the country with people the rest of the country with people who have BAswho have BAs

Fact or FictionFact or Fiction

Washington State’s economy needs Washington State’s economy needs more people with BA degreesmore people with BA degrees

Washington State needs more people Washington State needs more people with postsecondary training, with postsecondary training, particularly mid-level; i.e. more than particularly mid-level; i.e. more than one but less than four years post one but less than four years post secondary trainingsecondary training

The Supply of Educated The Supply of Educated WorkersWorkers

We are currently supplying only 83% We are currently supplying only 83% of employer needs through our of employer needs through our community and technical colleges, community and technical colleges, private career schools or private career schools or apprenticeship programs.apprenticeship programs.

WorkforceWorkforce

Job openings for new workers in Job openings for new workers in Washington with between one and Washington with between one and four years of postsecondary four years of postsecondary education or training is expected to education or training is expected to reach 28,600 in 2007 and 29,700 in reach 28,600 in 2007 and 29,700 in 20102010

WorkforceWorkforce

To close the gap by 2010, the state To close the gap by 2010, the state will need more than 22,400 will need more than 22,400 additional students FTEs than in additional students FTEs than in current workforce education current workforce education programs and produce over 6,000 programs and produce over 6,000 more completers per year.more completers per year.

Employer NeedsEmployer Needs

Most employers have difficulty Most employers have difficulty finding job applicants with a BA finding job applicants with a BA degree.degree.

More employers have difficulty More employers have difficulty finding job applicants with a finding job applicants with a postsecondary vocational credential postsecondary vocational credential than have difficulty at the BA level.than have difficulty at the BA level.

Worker ShortageWorker Shortage

In 2003, 67% of Washington In 2003, 67% of Washington employers who recently attempted to employers who recently attempted to hire workers with postsecondary hire workers with postsecondary vocational training reported difficulty vocational training reported difficulty finding qualified job applicantsfinding qualified job applicants

Worker ShortageWorker Shortage

This shortage of vocationally trained This shortage of vocationally trained workers affected over 17,000 workers affected over 17,000 employers – more employers than at employers – more employers than at any other educational level.any other educational level.

Employer NeedsEmployer Needs

Employers most frequently reported Employers most frequently reported difficulty finding job applicants with difficulty finding job applicants with occupation-specific skillsoccupation-specific skills

e.g., they wanted to hire a registered e.g., they wanted to hire a registered nurse but had trouble finding one.nurse but had trouble finding one.