Creating Career Pathways, Training Workers for Jobs of the Future, Building Best Workforce

1. Creating Career Pathways, Training Workers for Jobs of the Future, Building Best Workforce Secretary Roberta GassmanDepartment of Workforce DevelopmentJuly 21, 2008Wisconsin Legislative Council Senate Committee on Building Wisconsin’s Workforce

2. You asked: • The role of the Wisconsin Council on Workforce Investment • What DWD & the state & federal governments are doing to address worker shortages in 5 areas • What the Council is doing to address worker shortages • What the state can do to address worker shortages, skills & retention

3. Outline: Building a Skilled Workforce • Workforce Development System • Challenges & Opportunities • Grow Wisconsin – Next Steps • Meeting Skilled Workforce Needs

4. Workforce Development System Governor’s Council on Workforce Investment Represents major stakeholders: • Business, labor, local government, community groups • Legislators • State agencies

5. Workforce Development System Governor’s Council on Workforce Investment State Agencies: • Workforce Development • Commerce • Corrections • Vet Affairs • Health Services • Public Instruction • WI Technical College System

6. Workforce Development System Governor’s Council on Workforce Investment Advise Governor on policies that: • Increase education, skills, wages • Make smart, strategic regional investments • Develop opportunities in emerging sectors • Foster entrepreneurship • Initiatives: • Grow grants - MSSC - Innovation grants

7. Workforce Development System 11 Workforce Development Areas Bayfield Douglas Ashland Iron Vilas Washburn Sawyer 7 Burnett Florence Price Forest Oneida Polk Marinette Rusk Lincoln Barron Langlade 6 Oconto Taylor Chippewa St Croix Dunn 8 Meno- Marathon 5 minee Clark Shawano Pierce Door EauClaire Pepin Kewaunee Wood Waupaca Portage Buffalo Trem- Outagamie Brown pea- Jackson leau Manitowoc Calumet Winnebago Juneau Adams Waushara 4 Monroe LaCrosse Green Marquette 9 Lake Sheboygan FondduLac Vernon Dodge Columbia Sauk Ozaukee Richland Washing- 10 ton Crawford 3 Dane Milwaukee Jefferson Waukesha Iowa 2 11 Grant Racine Green Walworth Rock Lafayette 1 Kenosha

8. Workforce Development System: State Roles Federal law defines state role: • Oversight of system, Workforce Investment Act local plan approvals, Council on Workforce Investment & compliance • Collaboration with local workforce development boards in job centers through Wagner Peyser Job Service & Vets staff, DVR

9. Workforce Development System Main DWD Job Center Programs – PY08 Workforce Investment Act = primary $ for workforce dev • Core services for all; intensive & training services for eligible adults, dislocated workers, youth • 85% of $ to 11 WDBs • Requires one comprehensive job center in each WDA $47.7 M federal Wagner Peyser Act created in 1931 • Established nationwide system of public employment offices • Funds 113 FTE (state staff), technology, facilities • Provides: • Labor exchange to connect job seekers & employers • Job assistance, referral & placement for job seekers & employers • No eligibility requirements for service $13.4 M federal $3.0 M federal Veterans Employment & Training • 30+ state staff; case management, job placement

10. Workforce Development System:Regional Workforce Development Boards Federal law defines WDB role: • Oversee local one-stop system • Set local workforce investment policy • Develop & submit comprehensive 5-year local plan to state • Assist employers in meeting hiring needs • Select local service providers • Direct disbursement of local WIA funds • Negotiate local performance measures w/ local elected officials & Governor

11. Challenges 1. Shrinking federal resources

12. Challenges • Shrinking federal resources • Dramatic demographic changes, soaring skills shortages

13. Challenges • Shrinking federal resources • Dramatic demographic changes, soaring skills shortages • Technological advances impacting skill needs

14. Challenges • Shrinking federal resources • Dramatic demographic changes, soaring skills shortages • Technological advances impacting skill needs • Limited student, parent, school knowledge about labor force

15. Challenges • Shrinking federal resources • Dramatic demographic changes, soaring skills shortages • Profound technological advances impacting skill needs • Limited student, parent, school knowledge about labor force • Poverty, drop out rates

16. Challenges • Shrinking federal resources • Dramatic demographic changes, soaring skills shortages • Profound technological advances impacting skill needs • Limited student, parent, school knowledge about labor force • Poverty, drop out rates • Employers lack skilled workers

17. Challenges 73% decline in federal funding* *1985 through FY08, adjusted for inflation Source: Public Policy Forum

18. Challenges • Population will increase by 1.1m by 2030 • Labor force will increase by only 330,000 Source: Public Policy Forum

19. Challenges Jobs of the future will require: • Multiple skill sets – technical, communications, interpersonal, computer • Multiple levels of interactions and relationships • Ability to work in teams • Ability to handle multiple time zones and languages • Increased education and training

20. High School Drop Out 5% Four-year College Degree High School or more, 29% Grad, 35% Associate Degree, 15% Some College (no degree), 16% Challenges Wisconsin workers Age 26 & older Source: UW-Madison COWS, 2008

21. Opportunities Move More Workers Up the Pathway to Skills, Better Jobs & Earnings $37,400+/yr $24,960 – $37,400/yr $18,720 – $24,960/yr • MSSC/other industry cert • Journey Card • Occupational License • Bachelors + $18,720/yr • Associate Degree • Apprenticeship • Industry credentials • H.S. Diploma • GED • HSED • YA Certificate • Pre-Apprenticeship K-12 Econ Disadv Low Skilled Dis Workers TANF K – 12 Tech / College

22. Opportunities • Move low-wage, low-skilled workers onto career pathways to success • Build strong families • Prepare skilled workers for high value employers • Grow Wisconsin’s economy

23. Governor Doyle’s Grow Wisconsin Plan Meeting Our Challenges, Building Skilled Workforce • 2003, 2005, 2008 • Investments to ensure students are workforce ready • Investing in people • Pathways to good-paying jobs • Successes since 2003 • With aging workforce, changes in technology, labor shortages, investments more important than ever

24. Grow Wisconsin – The Next Steps Building on Success • Address Skills Shortages • Opportunity Grants • Skills Jump Start • Expand Youth Apprenticeship • Expand Adult Apprenticeship • Expand Minority Retention in Apprenticeships • Virtual Job Center • Minimum Wage

25. Grow WisconsinInnovate Wisconsin Wisconsin must retain edge in R&D, drive private sector investment to compete globally • New Innovate Tax Credits will foster R&D • Reward businesses that boost R&D by 25% • Will grow technology and knowledge economy

26. Grow WisconsinAccelerate Wisconsin Grow new funds and attract new investors to help entrepreneurs launch dreams • Budget boosts angel and venture capital investment • Expands tax credits available to $100M • Will grow Wisconsin’s technology and knowledge economy

27. Grow WisconsinRenewable Energy State has research capacity and natural resources to be the source for renewable energy • $150M Wisconsin Energy Independence Fund • Invest in biodiesel, wind, solar and ethanol • Create high-end businesses and high-paying jobs • Help free county from foreign oil

28. Grow Wisconsin Next Generation Agriculture Invest in efficiency and quality to ensure WI remains dairy and agriculture leader • Dairy plant investment credits • New market development for cheese producers • Modernizing the meat processing industry • Water and land conservation initiatives • Workforce opportunities

29. Grow WisconsinNext Generation Manufacturing Adopt lean practices and innovation while educating highest-skilled workers • $1.2M to expand MEPs for small-and mid-sized manufacturers • Help manufacturers adopt lean practices; invest $750,000 to leverage $500,000 • Create next generation manufacturing tax credits • Workforce opportunities

30. Grow WisconsinEconomic Cornerstones • Exports show world depending on Wisconsin for manufacturing and agriculture • Investing in next generation practices critical to remaining a global leader

31. Grow Wisconsin Investing in People, Education & Training • Quality Early Childhood Education • Investments in PK-12 • Wisconsin Covenant • Project Lead the Way / STEM • UW Growth Agenda: Increasing WI college graduates • Expanded WTCS Worker Training • Select Committee on Health Care Workforce Development

32. Grow Wisconsin Manufacturing Skills Standards Certification • Applies to all manufacturing sectors and production occupations • Governor Doyle’s goal: 40% of production workforce certified by 2016 • Certified Production Technician • Safety • Quality • Manufacturing Processes & Production • Maintenance

33. Grow Wisconsin Regional Industry Skills Education - RISE • $1M grant from the Joyce Foundation • Align low-income workers with modular training that eventually leads to middle skill occupations • Develop in concert with employers • Joint effort between DWD and tech colleges

34. Grow Wisconsin Sector Efforts • Address employer demand by focusing on workforce needs of specific sectors • Address worker supply with formal career paths, reducing barriers • Foster regional economic development • Engage key stakeholders • Promote systemic change National Governors Association Policy Academy

35. Grow Wisconsin National Governors Association Policy Academy By end of one-year academy, will develop & begin to implement strategic plan to: • Align policies & resources across systems • Address skill, recruitment & retention needs of key industries • Address worker training, employment & career advancement needs

36. Grow Wisconsin Milwaukee Initiative • Pilot targeting unemployed, underemployed & ex-offenders • $400,000 partnership with DWD, DOC & Milwaukee Area Workforce Development Board We need a strong Milwaukee economy for Wisconsin to thrive!

37. Grow Wisconsin Opportunity Grants • $1.5M in grants for low-wage workers • 723,000 with only HS diploma • 2 of 3 new jobs require more education • $1,000 a year for training in targeted areas • Health care, biotechnology, manufacturing • support services

38. Grow Wisconsin Competing at High End in the New Economy Emerging Industries Skills Partnership Grants • $850,000 in grants to ensure skilled workers • Target biotech, renewable fuels, advanced manufacturing

39. Grow Wisconsin WIRED • Workforce Innovation in Regional Economic Development • Partners government, industry & education • $5 million grant in SE • $5 million grant shared by SC & SW

40. Grow Wisconsin Improve Services to WI Workers • Redirect DWD’s Job Service and Vets staff to provide mobile services out of 22 comprehensive hub sites • Reduce fixed costs – rent & facilities • Redirect savings to service improvements without cutting any staff positions

41. Grow Wisconsin Improve Services to WI Workers • Serve every community, with mobile staff, outreach, network of community office hour sites • Increase connections to tech colleges, employers, citizens, including vets, dislocated workers, those with disabilities • Establish baseline measures, service targets, evaluation standards

42. Grow Wisconsin Improve services to WI workers Virtual job center • Easy to use • Available everywhere • 24 hours a day, 7 days a week • Post resumes • Video conferencing / online workshops

43. Thank You!Questions? Secretary Roberta GassmanDepartment of Workforce DevelopmentJuly 21, 2008Wisconsin Legislative Council Senate Committee on Building Wisconsin’s Workforce