The Workforce Development Challenges Facing Hawaii

1. Hawai`i NGA Project June 2007 The Workforce Development Challenges Facing Hawai`i

2. Hawai`i’s Changing Economy Major shifts in the world and U.S. economies have had a substantial impact in Hawai`i. These shifts have had a dramatic affect on the type of jobs, the level of personal income, and the quality of life.

3. Overly Dependent on a Dominant Mature Industry Export Earnings 1975-2004

4. The highlighted industries (gold) were the major driver of the Hawai`i economy in 1962. Over the past 40 years the Hawaii job market has undergone a dramatic transformation. The process is hard to see on an annual basis, but has been a major force for changing what we need to teach, the type of facilities we build, how we equip them, and the new skills and knowledge our faculty must acquire. Over the past 20 years we have established a rigorous program review and renewal process. We have terminated more than 20 degree and certificate programs, we have redesigned and re-equipped programs, and we have developed and financed new programs to meet new community needs despite declining state resources The highlighted industries (gold) were the major driver of the Hawai`i economy in 1962. Over the past 40 years the Hawaii job market has undergone a dramatic transformation. The process is hard to see on an annual basis, but has been a major force for changing what we need to teach, the type of facilities we build, how we equip them, and the new skills and knowledge our faculty must acquire. Over the past 20 years we have established a rigorous program review and renewal process. We have terminated more than 20 degree and certificate programs, we have redesigned and re-equipped programs, and we have developed and financed new programs to meet new community needs despite declining state resources

6. Declining Per Capita Personal Income as a Percent of U.S. Average Hawai`i, 1960-2005

7. Need to address Critical Issues Weaknesses (State Rank) 49 Cost of Urban Housing 48 Home Ownership Rate 47 Industrial Diversity 46 Crime Rate 39 Involuntary Part-Time Employment 34 Net Migration

8. Hawai`i’s Future is Dependent Upon a Skilled and Diverse Workforce To be Successful We Need to Address Our: Job Quality Gap Worker Supply Gap Worker Preparation Gap

9. The Job Quality Gap An Insufficient Number of Living Wage Jobs

10. Employment by Job Type, 2000 (%)

11. Earnings by Job Type, 2000 ($)

12. Oahu’s Economic Development Agenda Create more good paying jobs for residents Support and fund P-12 quality education Build a 21st Century leading university system Accelerate growth and diversification of knowledge/tech businesses

14. The Worker Supply Gap An Insufficient Number of Qualified Workers

17. HS Graduates Supply Less Than 1/2 of the 28,000 Annual Jobs to Fill

18. We Need to be Ready to Replace Skilled People in Critical Jobs

19. We are Exporting the Experienced Core of Our WorkforceHawaii Net Migration by Degree Level and Age Group

20. Homes on O‘ahu—Beyond Affordable

21. We Can Expect Continued Difficulty in Filling Job Vacancies Well Into the FutureProjected Change in Population by Age Group, 2000 to 2020

22. Unemployment Rates—Hawaii and U.S., 1995-2006

23. We Need to Increase the Rate of Participation in the WorkforcePercent of Civilian Population Participating in the Workforce, 2004

25. Who is Not Currently in our Workforce (age 25-64)? More Likely to: Be Poorly Educated; Be a TANF Recipient (Welfare); Have a Disability; Be an Ex-Offender; or Reside Outside the Urban Core

26. An Individual’s Level of Education is Directly Related to Their Ability to Participate in the WorkforceHawaii Civilians Age 25-64 in the Workforce by Education Attainment, 2005

27. The Worker Preparation Gap An Insufficient Number of People with Needed Skills

28. A Lack of Investment Has Resulted in Shortages in Critical FieldsNumber of 2-Year Degrees and Certificates in Health Sciences Awarded (2003) Per 100 HS Graduates Three Years Earlier, 2000

29. Number of 4-Year Degrees in Health Sciences Awarded (2003) Per 100 High School Graduates Six Years Earlier, 2000

30. Number of 4-Year Degrees Awarded (2003) Per 100 High School Graduates Six Years Earlier, 2000

31. As Experienced Workers Leave the Workforce, We Need to Get More Incumbent Workers to Enroll in Further EducationPart-Time Undergraduate Enrollment as a % of Population Age 25-44, 2000

32. Jobs & Education Demand/Supply Gap2005

37. Eighth graders in Hawaii perform very poorly on national assessments in math, science, reading, and writing, indicating that they are not well prepared to succeed in challenging high school courses. Hawaii is among the lowest-performing states in science and reading. Low-income 8th graders perform very poorly on national assessments in math.

38. We are a top state when we measure rate of HS graduation. We are far behind, however, when we look at actual student performance in skills critical to success in post-secondary education and the new jobs. Despite improvement, Hawaii lags many other states in preparing students to succeed in college.

39. Hawaii Postsecondary vs. Leading States

40. There are consequences.

41. Hawaii is almost 30 percentage points below the national benchmark in workforce preparation as reflected in professional licensure examinations. Hawaii also ranks more than 35 percentage points below the national benchmark in preparing students for graduate study. Hawaii is about 15% below the national benchmark with respect to pass rates on the state’s teacher examinations.

42. WE NEED BETTER OUTCOMES We are less successful than the top states in the rate of persistence and graduation of adult students. There are major barriers to adult degree completion Inadequate financial support for low and moderate income individuals Insufficient employer incentives to support employee continuing education Lack of affordable child care Scheduling conflicts between work and school Lack of preparation and curricular options

43. WE NEED BETTER OUTCOMES We have a leaky education to work pipeline, resulting in an insufficient number of individuals prepared for further education or training.

44. Education Pipeline Performance An Insufficient Number of Individuals Prepared for Further Education or Training

45. Key Transition Points in the Education to Work Pipeline Complete High School Enter College Finish College Enter the Workplace

46. Student Pipeline—2004

47. UH Community Colleges’ Entering Student Placement

48. WE NEED BETTER OUTCOMES We are falling behind other states in the U.S. and competitors in the Pacific region in the education of our future workers.

49. Differences in College Attainment (Associate and Higher) by Age Group

50. Differences in College Attainment (Assoc. and Higher) by Age Group—Hawaii, U.S. and Leading OECD Countries, 2004

51. The Bottom Line We Need to Enhance the State’s Stock of Human Capital Improved Competencies of High School Graduates Increased Skills of Adults with Less than a High School Education Improve Participation and Graduation Rates of College Students

52. The Bottom Line (cont.) We Need to Prepare More Skilled Workers in Critical Need Areas Nursing/Allied Health Teachers Science Technologies We Need to Expand and Diversify the State’s Economy Technology Transfer Rapid Response to Employer’s Training Needs

54. Education and Training Pay Investment in Education Returns Future Economic Benefits

55. Education and Training PayIncreased Employability

56. Education and Training PayIncreased Annual Earnings

57. Education and Training Pay Difference in Median Earnings Between a High School Diploma and an Associate Degree, 2000

58. Education and Training Pay Difference in Median Earnings Between a High School Diploma and a Bachelor’s Degree

59. David Heenan – Flight Capital (2005) Know Thy Competition Adapt – or Die Spur Immigration Reform Dust off the Welcome Mat Target the Best Minds Encourage Dual Loyalties Reform – Really Reform – Public Education Nourish the Halls of Ivy Celebrate Science and Technology Expand the Workforce Reconsider National Service Act Now

60. Confronting the Future We won't lose by taking bold action. But we will probably be hurt badly if we're too slow to prevent the worst-case scenario. Hawai'i needs no outside permission. The next generation will thank us. Let's get on with it. Mike Fitzgerald, President and CEO of Enterprise Honolulu

61. For Further Information Contact: Michael Rota mrota@hawaii.edu The Workforce Development Challenges Facing Hawai`i

63. Hawai`i NGA Project Team Mr. Micheal Boughton, WDC Ms. Susan Doyle, WDC Mr. Mike Fitzgerald, WDC Ms. Kathy Kawaguchi, DOE Mr. Gary Kemp, DHS Mr. Ramsey Pederson, HCC Ms Chris Mc Colgan, OWIB Mr. Michael Rota, U of Hawai`i, Team Leader Senator Norman Sakamoto, WDC Mr. Robert Shore, DBEDT Mr. Mark Valencia, Gov. Office

64. Hawai`i NGA ProjectVision

65. Hawai`i NGA ProjectGOAL 1

66. Hawai`i NGA ProjectGOAL 2

67. Hawai`i NGA ProjectGOAL 3

68. Hawai`i NGA ProjectGOAL 4

69. Hawai`i NGA ProjectGOAL 5

70. For Further Information Contact: Michael Rota mrota@hawaii.edu The Workforce Development Challenges Facing Hawai`i