Oklahoma’s Advantage“GROWING OUR OWN”

Governor’s CouncilStrategic Plan

VisionOklahoma HAS a competitive advantage through integrated workforce and economic development objectives

MissionADVANCES demand-driven workforce and economic development systems

ResultACHIEVES wealth-creation for business, individuals, and communities throughout Oklahoma

Guiding PrinciplesFor Creating Oklahoma’s Competitive Advantage

Oklahoma Will Always ----• Know its status relative to changing employer and workforce conditions due to globalization, new science, technology, and demographics.• Have a competitive labor pool that addresses the quality needs of current and anticipated industry clusters and employer groups.• Command a strong base of public awareness and support for workforce and economic development issues and initiatives, including education.• Work through collaborative systems of policy-governance, benchmarking, evaluation, and rewards.

OKLAHOMA YOUTH COUNCIL

Oklahoma’s Advantage

The beginning of a new day…

What’s at Stake?• For Business

– Expansion– Quality workforce

• For Oklahomans– Higher wages– Quality Jobs– Better standard of living

• For Communities– Population growth– Economic vitality– Oklahoma’s reputation

Issues • Baby Boomers are will be retiring at an increasingly rapid

pace for the next 15 years• Potential shortage of 10 million workers by 2010• Only significant source for additional skilled workers is

from immigration• Homeland Security issues are currently problematic for

immigration• Skills Gaps: Mismatch of worker skills and job profiles• Increased diversity of the workforce will create language

and cultural challenges

WHAT MATTERS TO YOU, NOW?

THE RIGHT WORKERS WITH THE RIGHT SKILLS FOR THE RIGHT

JOB-----IN YOUR REGION!

Oklahoma Solutions • Industry Sector Studies• Career Management System• Career Readiness Certificate• Workforce Board Development/ Certification • State Partnership Agreement• Talent development strategies • Grow Our Own• ADVANTAGE CENTERS• Existing Worker Training• State Youth Council for Workforce Initiatives

Issues

• Worker Shortages

• Skills Shortages

Annual employment Annual employment growth, projected 2004-2014growth, projected 2004-2014

Source: U.S. Bureau of Labor Statistics

1.30%-1.50%

1.20%-1.29%

1.11%-1.19%

0.98%-1.10%

From 1994-2004, OK met its employment From 1994-2004, OK met its employment demand largely by population growth…demand largely by population growth…

Source: U.S. Bureau of Labor Statistics, U.S. Census Bureau

1.371.40

1.15

1.41

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Employment Working Age Population (18 & Over)

U.S.

OK

Average annual growth in employment and working age population, 1994-2004Percent

Working Age Population ProjectionOK

16+ 65+ 16-642004 2,720,601 461,329 2,259,2722005 2,733,466 464,645 2,268,8212006 2,747,673 468,588 2,279,0852007 2,761,503 473,878 2,287,6252008 2,774,759 480,945 2,293,8142009 2,786,428 488,422 2,298,0062010 2,796,813 494,966 2,301,8472011 2,806,395 502,155 2,304,2402012 2,815,775 515,880 2,299,8952013 2,825,433 528,871 2,296,5622014 2,835,825 541,041 2,294,784

……but also by increased labor but also by increased labor force participationforce participation

OklahomaUnited States

Source: U.S. Bureau of Labor Statistics

Non-metro Oklahoma may have an Non-metro Oklahoma may have an advantage: an untapped labor supplyadvantage: an untapped labor supply

Labor Force Participation Rates, 2000

50

55

60

65

70

Large metroareas

Smaller cities Rural areas

Pe

rce

nt

OK US

Source: U.S. Census Bureau

Issues

• Worker Shortages

• Skills Shortages

The Knowledge Economy

“Because technological advances have freed up companies from traditional business costs,

knowledge, skills, and experience

embodied in individualshave become more valuable than capital

equipment and even capital itself.”

- James Irvine Foundation

IT IS A NEW DAY

• Old – Industrial Economy

– Economies of scale

• (lower unit costs)

– Cheap labor & land

• (keep input costs as low as possible)

– Access to natural resources for product input

• (inputs had greatest transportation costs)

New – Knowledge Economy

• Smaller niches in global marketplace

– (little fish, but big pond)

– Knowledge labor applying technology-based solutions

• (heads not hands)

– Entrepreneurial emphasis (creativity, innovation, & flexibility key)

1. Skill Requirements are Increasing--Jobs are smarting up

•Need broader array of skills•Need for continuous upgrading of technical

--Changing workplace organization •Teamwork, creativity, problem- solving, adaptability--Technology

•Training needed to adapt to new technologies

--Increased need for basic skills and strong work ethic

•Strong academics skills for ALL!!!! •Motivation and responsibility•Self-esteem and confidence

Chart source: Council on Competitiveness

What’s changing?What’s changing?

• Labor Market – Enhanced Mobility of People – Loss of internal career paths and company commitments – Cultural barriers • Increased inequality – Wages related to educational attainment

• Chart Source: Council on Competitiveness

WHAT’S CHANGING?

OKLAHOMA EMPLOYER SURVEYS

2004 – 78% NEEDED WORKERS WITH HIGH SCHOOL

DIPLOMA

2006 – 71% SEE INCREASE IN NEED FOR WORKERS

WITH POST-SECONDARY CREDENTIAL OR DEGREE

Source: National Association of Manufacturers – The skills gap 2004

Why are manufacturers rejecting job applicants?

Inadequate basic employability skills – 69%

Inadequate reading/writing skills – 32%

Inadequate math skills – 21%

Inadequate oral communications skills- 17.5%

Source: National Association of Manufacturers – The Skills Gap 2004

Most Serious Skill Deficiencies Current Employees

Poor basic employability skills – 59%

Poor reading/writing skills – 32%

Inadequate math skills – 26%

Inability to communicate verbally- 25%

PRODUCTIVITY RISES WITH EDUCATION

• When education level is increased one-year, productivity rises:

• Manufacturing workers: 8.0%• Non-manufacturing workers: 13%

• When average educational attainment is increased by 10% (about one grade level):

• Firms experience a 8.6% rise in productivityNational Center on the Educational Quality of the

Workforce

USA Projected Employment By Education Level

Educational Band

Projected Employment

2007

Net New Jobs

(2007-2017)

Average Earnings

2007

% Total Employment

(2007)% New Jobs (2007-2017)

Advanced Degree 6,442,947 1,559,103 $88,639 3.7% 5.2%

4-year College Degree

28,672,368 6,171,171 $80,623 16.5% 20.6%

Tech-Some Post 14,680,694 3,319,873 $49,305 8.4% 11.1%

HS or GED & Some Experience

23,161,040 3,352,418 $50,040 13.3% 11.2%

HS or GED for Entry

37,931,763 5,300,947 $38,055 21.8% 17.7%

Less than HS Degree

63,244,115 10,312,306 $25,275 36.3% 34.4%

Total 174,132,926 30,016,818 $44,837 100.0% 100.0%

Source: Forecasts from Regional Dynamics, calculated by CREC

Oklahoma must ensure potential workers Oklahoma must ensure potential workers obtain the training necessary to succeedobtain the training necessary to succeed

Projected annual employment growth through 2012,by training needed by workers to become fully qualified

1.21.1

1.9

1.6

2.0

0.0

0.5

1.0

1.5

2.0

2.5

No degree, no workexperience

No degree, withwork experience

Associate orvocational degree

Bachelor's degree Graduate orprofessional degree

Per

cen

t

Source: U.S. Bureau of Labor Statistics

15 U.S. industries projected to 15 U.S. industries projected to ADD jobs the fastest through 2014*ADD jobs the fastest through 2014*

* Among industries with more than 100,000 employees* Among industries with more than 100,000 employees

Business servicesBusiness services

3. Management consulting services3. Management consulting services

5. Facilities support services 5. Facilities support services

6. EMPLOYMENT SERVICES6. EMPLOYMENT SERVICES

7. Office administrative services7. Office administrative services

13. Accounting, tax, & payroll services13. Accounting, tax, & payroll services

High-tech servicesHigh-tech services

2. Software publishers2. Software publishers

8. Computer systems design8. Computer systems design

Health and social servicesHealth and social services

1. Home health care services 1. Home health care services

4. Residential care facilities4. Residential care facilities

9. Outpatient & laboratory services9. Outpatient & laboratory services

10. Child day care services10. Child day care services

12. Offices of health practitioners12. Offices of health practitioners

15. Rehabilitation services15. Rehabilitation services

Education servicesEducation services

11. Other educational services11. Other educational services

14. Colleges & universities 14. Colleges & universities

Source: U.S. Bureau of Labor Statistics

15 U.S. industries projected to 15 U.S. industries projected to SHED jobs the fastest through 2014*SHED jobs the fastest through 2014*

* Among industries with more than 100,000 employees* Among industries with more than 100,000 employees

Nondurable manufacturingNondurable manufacturing

1. Cut and sew apparel mfg.1. Cut and sew apparel mfg.

2. Fabric mills2. Fabric mills

3. Basic chemical mfg.3. Basic chemical mfg.

6. Rubber product mfg.6. Rubber product mfg.

8. Synthetic materials mfg.8. Synthetic materials mfg.

13. Pulp & paper mills13. Pulp & paper mills

14. Petroleum & coal mfg.14. Petroleum & coal mfg.

Durable manufacturingDurable manufacturing 4. Industry machinery mfg.4. Industry machinery mfg.

5. Electrical equipment mfg.5. Electrical equipment mfg.

7. Foundries7. Foundries

10. Computer mfg.10. Computer mfg.

12. Metalworking machinery mfg.12. Metalworking machinery mfg.

15. Other machinery mfg.15. Other machinery mfg.

Natural resourcesNatural resources 9. Sawmills & wood preservation9. Sawmills & wood preservation

11. Crop production11. Crop production

Source: U.S. Bureau of Labor Statistics

U.S. and Oklahoma job growth is projected to U.S. and Oklahoma job growth is projected to be fastest among high-paying occupationsbe fastest among high-paying occupations

Projected Annual Job Growth by Average Pay

Through 2012

Source: U.S. Bureau of Labor Statistics

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Bottom Quintile(<$20,730)

Second Quintile($20,730-$25,270)

Middle Quintile($25,270-$33,350)

Fourth Quintile($33,350-$47,610)

Top Quintile(>$47,610)

U.S.OK

Oklahoma City is projected to have a Oklahoma City is projected to have a higher share of the long-term job growth higher share of the long-term job growth

Source: U.S. Bureau of Labor Statistics

Projected Annual Job Growth,2004 - 2014

(if area's industries grow at national rate)

1.15

1.05

1.14

1.231.23

0.95

1.00

1.05

1.10

1.15

1.20

1.25

1.30

US OK OKC Tulsa OK - All Other

Percent

SHIFT IN THINKING

FROM: OKLAHOMA HAS WONDERFUL, PRODUCTIVE WORKERS WITH A STRONG WORK ETHIC…

TO: OKLAHOMA HAS A HIGHLY SKILLED PRODUCTIVE WORKFORCE WITH A STRONG WORK ETHIC

Economic Development Depends on Talent Development and Management:

How do we get it? • Recruit it

• Retain it - Graduate Retention

• Develop it / Grow our Own

• Education/ Training Pipeline – Demand Driven education system – Demand occupations– Industry sector development

72

4238

29

12

71

100

16 4

9th GradeEnrollment

HighSchoolGrads

17.18.19 EnrolledDirectly

intoCollege

First-timeFull-timeDegreeSeekingCohort

RetainedAfter 1Year

GraduatedWithin 6Years

WithAssociate

Degree

WithBachelorDegree

Percent 93-94 Oklahoma 9th Grader’s Progression into High School and College (percent)

Fall 1997 College Freshmen

100%

42%

76%

30%

93-94 Oklahoma 9th Grader’s Progression into High School and College (number)

34,228

19,95618,244

13,884

5,550

33,645

2,1477,697

47,604

9th GradeEnrollment

HighSchoolGrads

17.18.19 EnrolledDirectly

intoCollege

First-timeFull-timeDegreeSeekingCohort

RetainedAfter 1Year

GraduatedWithin 6Years

WithAssociate

Degree

WithBachelorDegree

Fall 1997 College Freshmen

100%

76%

42% 30%

IMPLICATIONS FOR YOUNG OKLAHOMANS• ACE (END OF INSTRUCTION TESTS ARE THE LAW)

WITH INTERVENTION STRATEGIESWITHOUT INTERVENTION

• WHATEVER IT TAKESTUTORING, SUMMER, REPEATING,

ALTERNATIVE SCHOOL, APPLIED COURSES, • THE ALLIANCE, OHLAP, GEAR UP, YEAR 13,

SCHOLARSHIPS, ACADEMIES, (PRE-ENGINEERING, ADV. MFG, HEALTH, CONSTRUCTION, BIO-TECH,

• GETTING READY! O-3, 3-6, 1ST – 3RD, 4TH – 6TH, 7TH – 8TH , 9TH , 10TH – 13TH (GED PLUS POST SECONDARY)

• OKLAHOMA’S CAREER READINESS CERTIFICATE - OCRC• READY FOR COLLEGE, FOR WORK, LIFE

Measuring up: National Report Card on Higher Education (2004)

• Oklahoma has made notable improvements over the past decade in preparing young people for higher education.

• However, the state’s performance is weak in providing students with an affordable higher education, which may undermine its efforts to send clear messages to them about the importance of being prepared academically for college.

Measuring up: National Report Card on Higher Education (2004)

• Oklahoma has had a substantial decline in the percentage of working-age adults enrolling in college-level education.

• A smaller proportion of high school students enroll immediately in college.

• POST SECONDARY EDUCATION INCLUDES CAREER TECH APPLIED CREDENTIALS

• HEALTH CAREERS, ADV. MFG., FAST TRACK

Linear Movement of 2004 Oklahoma High School Graduates intoOklahoma Public & Private Colleges by County of Origin

Remediation Rates of 2004 Oklahoma High School Graduates asFall 2004 Freshmen in Oklahoma Public Higher Education

Remediation Rates of 2004 Oklahoma High School Graduates asFall 2004 Freshmen in Oklahoma Public Higher Education

State Per Capita Personal Income v. Share of AdultPopulation with Bachelor's Degree or Higher (2004)

$16,000

$18,000

$20,000

$22,000

$24,000

$26,000

$28,000

$30,000

$32,000

$34,000

$36,000

$38,000

15% 20% 25% 30% 35% 40% 45% 50%

Percentage of Adult Population with a Bachelor's Degree or Higher

Per

Cap

ita

Inco

me

Source: U.S. Census Bureau, ACS 2004

NV

MTIDLA

AL

TNIN

KY

AR

MS

WV

CT

MA

DC

NMSDTX NE

ORKS

UT

CA

HI

MNNY

WAVT

CO

NHVA

MDNJ

ND

IA

OH

WY

GA

FLME

RIAK

DE

IL

AZSCNC

MO

MI PA

WI

OK

From 2000 to 2004, Oklahoma increased in the number of bachelor’s degrees for Oklahomans age 25 and older from 20.2 to 22.2 and from 47th to 42nd in the state rankings.

16.3% - 23.3%

23.6% - 29.7%

30.5% - 37.4%

State Population Age 25 Years and Older with Bachelor’s Degree or Higher, 2004

22.223.6

33.7

25.6

28.3 24.3

21.5

EMPLOYMENT OUTCOMES REPORT

Certificate Assoc. inAppliedScience

Assoc. inArts/Science

Bachelor Master Professional Doctoral

94% 94%89% 88% 89%

85%82%

73%

47%

61%

48%

33%

42% 41%

Oklahoma Employment by Residency Status and Level of Degreefor 2003-04 State System Graduates

After One Year Non-Resident

Resident

EMPLOYMENT OUTCOMES REPORT

Certificate Assoc. inAppliedScience

Assoc. inArts/Science

Bachelor Master Professional Doctoral

80%82%

73%

65%70%

59%

67%

N/A

20%

11%

22%

13%

21%16%

Oklahoma Employment by Residency Status and Level of Degreefor 1999-00 State System Graduates

After Five YearsNon-Resident

Resident

EMPLOYMENT OUTCOMES REPORT

“Give a man a fish; you have fed him for today.  Teach a man to fish; and you have

fed him for a lifetime”—Author unknown

Average Salary of 1999-00 Bachelor Degree Holders After Five Years:• Engineering ($49,150)• Computer Science ($47,568)

• Transportation ($46,738)

• Health professions ($44,773)

• Engineering technologies ($41,537).

Which of the following satisfaction measures were found to be

correlated to Academic success? 1. Classroom Instruction 2. Number and Variety of Course Offerings 3. Grading Practices and Policies 4. Number and kinds of tests given 5. Guidance Services provided by Guidance Office 6. School Rules, Regulations and Policies 7. Library or Learning Center 8. Laboratory Facilities 9. Provisions for Special Help in Reading, Math, etc10. Provisions for Academically Outstanding Students11. Adequacy of Programs in Career Education Planning12. Overall Rating of High School

Which of the following satisfaction measures were found to be

correlated to Academic success? 1. Classroom Instruction 2. Number and Variety of Course Offerings 3. Grading Practices and Policies 4. Number and kinds of tests given 5. Guidance Services provided by Guidance Office 6. School Rules, Regulations and Policies 7. Library or Learning Center 8. Laboratory Facilities 9. Provisions for Special Help in Reading, Math, etc10. Provisions for Academically Outstanding Students11. Adequacy of Programs in Career Education Planning12. Overall Rating of High School

• Enable people with at least two years of college to finish a bachelor’s degree

• Flexible and accelerated schedule to meet the needs of working adults

• Curriculum designed to ensure that students are prepared to succeed in the workplace

Adult Degree Completion ProgramProgram Design

• Involve multiple learning environments. • Common curriculum and offered at multiple locations.• Developed by faculty from participating universities.• Will be approved through academic processes.

There will be a greater need to:

• Upgrade the skills of workers at all levels: existing, transition, emerging workers

• Retrain middle income existing workers• Upgrade skills of low wage and low-skilled

workers• Retrain middle age and seniors• Retrain AND REEMPLOY dislocated workers• Retain and Retrain Exiting Military

There will be a greater need to:

• Retrain retirees

• Continuous development of innovative skills through lifelong learning

• Increase percent of disabled workers

• Transition offenders into workforce

• Increase of dropouts recovered and high school completion success

Desired State:

The State of Oklahoma will have a labor pool which is:

• Competitive: SKILLED, HEALTHY• Advances the economic objectives of

the state and local communities, • Meets the employment interests of

industry clusters and employer groups.

1970’s 1990’s 2010

Implications• Application, application, application

– Of Math– Of Science

• New technologies• Current and emerging Industries

– Aerospace/ Manufacturing/ Energy/ Health Care– Biotechnology/ Nanotechnology

21st Century Curriculum

• Analytical and problem solving skills

• Business organization and environment

• Communications skills

• Core hardware/ Software computer skills

• Project and process flows

• Content (engineering, accounting etc.)

• Oklahoma State of the Workforce Report

21st Century Employability Skills• Communication• Organization• Team contribution and leadership• Team collaboration • Critical thinking and decision making• Self-directed and continuous learning• Customer relations • State of the Workforce Report

SOFT OR JOB SUCCESS SKILLS

• SOCIAL SKILLS IN THE WORKPLACE• APPROPRIATE WORKPLACE BEHAVIOR• ANGER MANAGEMENT• TRANSPORTATION, HOUSING AND

WELLNESS AS FACTORS IN JOB SECURITY• AVOIDING DESTRUCTIVE BEHAVIOR• COMMUNICATION SKILLS• PROBLEM SOLVING AND FLEXIBILITY

ResultsConnecting the dots between workforce

and economic development across all levels so that we -

LEAVE NO WORKER BEHIND!

Retain & attractmore graduates

Produce moregraduates

Partner withbusiness

Attract new,high-qualitybusinesses

Employgraduates

OUR YOUTH COUNCIL ISSUES

• DECREASING THE MIDDLE SCHOOL AND HIGH SCHOOL DROPOUT RATE

• GREATER LEARNING SUCCESS• INCREASE THE NUMBER OF YOUTH

PREPARED FOR HIGH DEMAND/HIGH SKILLED JOBS

• SUCCESSFUL INTERVENTION STRATEGIES THROUGH YEAR 13

• INCREASE GRADUATE RETENTION RATES• EMPLOYER ENGAGEMENT IN EDUCATION• COMMIT TO FACT BASED DECISION MAKING• TWO-YEAR STRATEGIC PLAN (3 PRONG)