The Job Market

Current and Future Trends

Source: Industry Workforce Needs Council

www.iwnc.org

Population Differences

Up to 78 million Baby Boomers will be retiring from the U.S. workforce

Only 40 million from “X” and “Y” generations will be available to replace them

Skills Gap

• Workplace will require advanced technical skills through high tech developments

• Current workforce skills need updating to keep up with changing demands

• Future workforce needs to be prepared for upcoming trends

By 2018•90% of fastest growing jobs will require training beyond high school

• 31% of small business owners and 41% of manufacturers can’t fill jobs

• Production costs in China will be equal to the U.S.

On-Shoring

Increased wages in China

Increased shipping costs due to oil prices

Natural gas in Asia costs 4 times more than US

Decreased quality

Expensive and time consuming having engineering separate from production

Tax credits/government incentives

Education Challenges

Teacher shortages (particularly CTE)

Scheduling obstacles = less time for CTE

Academic achievement focus

4-year degree mentality

Reduced funding

Lack of parental support

Disconnect with industry (esp. manufacturing)

Employer Challenges

Negative perception of industry

Employee market

Employees being recruited by competitors

Education steering students towards degree

Lack of time

Employees lacking in technical skills and/or soft skills

College by the Numbers

100 students enrolled in a four year institution-35 drop out first year (35%) 65-24 don’t complete (37%) 41 complete (It took 19 students 6 years to complete a bachelor’s

degree)

- What happened to the other 59 students?

- Average $30,000 student loan debt (1.1 trillion total)Source: USA Today

How is Kentucky going to weather

“The Perfect Storm”?

Apprenticeships:

The other 4-year degree

What is Registered Apprenticeship

A centuries old concept of “EARN and LEARN”.

A U.S. Department of Labor program in partnership with businesses and labor organizations. The National Apprenticeship Act of 1937 authorized the Federal government, in cooperation with the states, to oversee the nation’s Apprenticeship System.

Provides on-the-job training and industry-specific classroom education producing highly skilled workers.

Minimum 144 hours a year related classroom instruction.

Programs range from 1-5 years (2,000-10,000 OJT hours)

What is Registered Apprenticeship

Pathway to a career.

Creates beneficial programs for both apprentices and their employers.

Training programs tailored to the needs of the industry or organizations.

Range in size from one apprentice to hundreds.

Apprenticeship Programs can be set up as time-based, competency-based, and/or a combination of both.

competency-based, and/or a combination of both.

Registered Apprenticeship by the numbers

Over 1200 occupations recognized by the USDOL.

Approximately 500,000 apprentices nationwide, 2500

in KY.

Over 250,000 employers have RA programs.

150 Individual and Joint Sponsored Programs in KY representing over 1000 employers

70% Non-Union 30% Union

40% Construction Related Corning, Dana, Dow Corning, Gibbs Die Cast Mazak, Jim Beam Brands,

LG&E, Phillips Lighting, Martinrea, nth works, Reynolds Metals, Stober Drives, IBEW, IEC, Pipefitters, Carpenters, Iron Workers, Sheet Metal Workers, Messer Construction, Davis H. Elliot, Co., Inc

Highly Skilled Workforce

All Registered Apprenticeship

programs are based on industry

standards, and apprentices earn

nationally recognized certifications

upon completion

Registered Apprenticeship in KENTUCKY

Administered by the Labor Cabinet

Part of the strategic plan of the Kentucky Workforce Investment Board

Partnerships with Office of Career and Technical Education, KWIB, Kentucky Community and Technical College Systems, Kentucky Career Centers, Cabinet for Economic Development, Education and Workforce Development Cabinet, Adult Education, Job Corps, YouthBuild, Local WIB’s

Example…Stober Drives, Inc.

Manufacturer in Maysville, KY

– Electrical Technician

– Machinist

– Maintenance Mechanic

– Salesperson Parts

– Accounting Technician

Why Apprenticeships?

Kentucky initiative to model the European ideal of apprenticeship Industry-driven “Grow Your Own” approach Earn as you learn; no student loans Nationally recognized journeyperson certificate Highly skilled employees Reduced turnover/increased productivity

Can be used for new hires, in-house employees, and/or pre-apprenticeship students

Why Pre-Apprenticeship?

Infrastructure in place using CTE

No costs involved Provide a foundation for employer to build upon Provide a pipeline of skilled graduates for local industry Students have a good base knowledge and an interest in the occupation

How it works…

Employer registers apprenticeship program with Labor

Cabinet

Employer works with school to identify students/selection

process

Employer chooses at least 4 courses; one course needs to

be a co-op

Employer determines if student completes successfully

Student to receive industry certification; on-the-job hours

are credited

Post-secondary requirements determined by employer

Pre-Apprenticeship:The Employer’s

Advantage

Employer selects students for program

Employer selects courses

Employer selects post-secondary requirements

Employer develops a loyal employee

Works with any number of trainees

Grant/tax incentives

Pre-Apprenticeship:The Student’s Advantage

Student will get paid for on-the-job training; no student loans

Student’s on-the-job hours will count toward apprenticeship (comparable to dual credit)

Student will receive an industry certification

Student’s successful completion will result in acceptance in apprenticeship program

Student will become a journeyperson and receive a portable credential that is recognized nationally

Appeals to hands-on learner

Pre-Apprenticeship:The District’s Advantage

Preparing students for the workforce

Industry certification will be measured in

College and Career Ready accountability

index

Students will be a completer based on

Kentucky’s Perkins plan

Promotes positive partnerships with local

businesses and community

Helps create and retain local jobs for

students

Engages the hands-on learner

Industry Certification List

Successful completion of the TRACK program serves as a Kentucky approved industry certification for Career Readiness

HURDLES Obstacle: Parents, educators, and students not aware of

apprenticeship benefits

Solution: Marketing, outreach, career pathways

Obstacle: Need to increase number of registered apprenticeship programs

Solution: 1) Employer buy-in 2) Federal assistance

Obstacle: Negative perception of apprenticeships

Solution: Awareness and education

HURDLES

Obstacle: Working with students under 18

Solution(s):

YES agreement- Youth Employment Solutions with Adecco

Youth education waiver

Look at alternate insurance carriers who allow youth

education opportunities; pay for a policy rider

District to employ student; reimbursed by company

TRACK Record!

Pilot Year- 100% of students placed in apprenticeship programs!

Manufacturing available statewide 14-15 school year

Skilled Trades agreements in development

Potential for expansion into ‘non-traditional’ occupations

Making TRACKS!

• Cabinet for Economic Development using to promote KY in recruiting new businesses

• The Labor Cabinet invited to Washington, D.C. for youth apprenticeship panel

• Tax credits and incentives

Join the race and help students win!

www.KentuckyApprenticeship.com

Click on TRACK logo

THANK YOU!