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  1. 1. Copyright © 2018 Deloitte Development LLC. All rights reserved. 11 Copyright © 2018 Deloitte Development LLC. All rights reserved. Closing the talent gap Five ways government and business can team up to reskill workers Closing the talent gap: Five ways government and business can team up to reskill workers

  2. 2. The economy is changing in dramatic ways Middle-skill” jobs account for 53% of the U.S. labor market, but only 43% of the country’s workers are at that level. In 2018, unemployment rate has hovered around 4.0% and the number of unemployed people per job opening is at a historic low of 0.9 The workforce participation rate declined from 67.3% in early 2000 to 62.9% in March 2018 People are living and, in many cases, working longer, prompting many workers to plan a 50-year career to meet their financial needs. WEF predicts that about 75 million jobs will be eliminated due to AI and about 133 million new jobs will be created Lack of skilled workers Tight labor market Rising number of discouraged workers Older population Impact of new technologies Copyright © 2018 Deloitte Development LLC. All rights reserved. Source: National Skills Coalition, Bureau of Labor Statistics, Deloitte Insights, World Economic Forum2

  3. 3. Worker reskilling is becoming critical… According to the Bureau of Labor Statistics, there are more open jobs than the number of applicants to fill them. Copyright © 2018 Deloitte Development LLC. All rights reserved. Source: Bureau of Labor Statistics3

  4. 4. Lower wage jobs are most at risk of automation 83% 31% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Less than $20 Dollars $20 to $40 Dollars More than $40 Dollars Median Hourly Wage in 2010 Median Probability of Job Automation Learning new skills is critical to navigating the disruptions caused by emerging technologies Copyright © 2018 Deloitte Development LLC. All rights reserved. Source: The White House4

  5. 5. The federal government helps displaced workers mostly through traditional job training programs spent annually on government workforce development programs 47 $18 billion Federal job training programs 8 million participants per year But do these programs work? According to GAO, “Only 5 programs have had an impact study…with only some demonstrating positive impact that tended to be small, inconclusive, or restricted to short- term impacts.” Copyright © 2018 Deloitte Development LLC. All rights reserved. Source: United States Government Accountability Office5

  6. 6. So how can government help businesses close the “talent gap” Flip the script: Tailor training to the individual and the job 3 1 2 4 5 3 1 2 4 5 Expand thinking around apprenticeships Focus on the lesser skilled workers Reimagine higher education Play a matchmaker role to connect employers and job seekers Copyright © 2018 Deloitte Development LLC. All rights reserved. 6

  7. 7. Start with the job. Work with the employer community to design workforce programs that create a talent pipeline for specific needs Use Workforce Innovation and Opportunity Act (WIOA) data to improve training programs by tailoring offerings Flip the script: Tailor training to the individual and the job11 Copyright © 2018 Deloitte Development LLC. All rights reserved. 7

  8. 8. Expanding apprenticeships to newer job categories MC2 in Missouri, designed an apprenticeship program focused on cybersecurity in partnership with businesses, government, and military officials to tap into workers from diverse backgrounds, including retirees, veterans, and former teachers. Old apprenticeship thinking: Apprenticeships are only for trades and vocational skills New apprenticeship thinking: Apprenticeships can be valuable for middle skill jobs such as lab technicians and high skill jobs such as cybercrime analysts 22 Expand thinking around apprenticeships Copyright © 2018 Deloitte Development LLC. All rights reserved. Source: CXO Magazine8

  9. 9. 33 Focus on lesser skilled workers Lower skilled workers are most at risk of automation and less likely to receive training Governments can partner with non-profits and community organizations to assist in building a pathway to better jobs and higher wages for lower skilled workers. They can also play a convening role bringing employers, community colleges, and other ecosystem partners together to help develop the skills of these individuals. Copyright © 2018 Deloitte Development LLC. All rights reserved. 9

  10. 10. 44 Reimagine higher education Consider college education as a platform for life- long learning Integrate work experiences deeply into the curriculum #1 #2 Copyright © 2018 Deloitte Development LLC. All rights reserved. 10

  11. 11. 55 Play a matchmaker role to connect employers and job seekers How can government help bridge the gap? By sharing information about job openings, by bringing ecosystem players together, by identifying needs within industry clusters Copyright © 2018 Deloitte Development LLC. All rights reserved. 11

  12. 12. Read more Reinventing workforce development Closing the talent gapThe future(s) of public higher education Copyright © 2018 Deloitte Development LLC. All rights reserved. 12

  13. 13. John O’Leary State and local government research leader Deloitte Services LP +1 617 437 3576 jpoleary@deloitte.com Contacts Scott Malm Principal Government and Public Services Deloitte Consulting LLP +1 612 397 4429 smalm@deloitte.com China Widener Principal Government and Public Services Deloitte Consulting LLP +1 513 723 4174 cwidener@deloitte.com Copyright © 2018 Deloitte Development LLC. All rights reserved. 13

  14. 14. Copyright © 2018 Deloitte Development LLC. All rights reserved. 14 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Disclaimer

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