United States High Growth United States High Growth Industry InitiativesIndustry Initiatives

Gregg WeltzGregg WeltzDirector of Youth ServicesDirector of Youth ServicesU.S. Department of LaborU.S. Department of Labor

XIV Inter-American Conference of Ministers of Labor XIV Inter-American Conference of Ministers of Labor (IACML of the OAS)(IACML of the OAS)

Why Do We Need Demand-Driven High Growth Strategies?

Responding to the challenges of the 21st century economy

Evolving to help workers upgrade skills to open up opportunities in high growth industries

Helping American businesses compete in the global marketplace

Evolution of the Economy

When the workforce system was first created:

– U.S. was an industrial economy

– Labor was virtually interchangeable

– Cyclical layoff and hiring patterns

– Work required just a High School diploma

Evolution of the Economy

Now in a knowledge economy – specialized skills are needed– 90% of the fastest growing jobs will require

education and training past high school– 32% of U.S. labor force has a Bachelor’s Degree

or higher

Evolution of the Economy

Less than High

School

High School Grad

Some College

Assoc. Degree

4-Year Degree

and Higher

Employment

Growth (thousan

ds)

-129 87 177 380 723

Average Weekly

Earnings

$479 $660 $767 $812 $1243

Unemploy-ment

Rate

8.5% 5.0% 4.5% 3.7% 2.7%Source: BLS Current Population Survey 2004

What is Demand Driven?

Knowing where the jobs are – both new jobs and current jobs that may be changingKnowing the skills and competencies necessary to do those jobsUnderstanding the labor market contextStrategic investment of $5 billion public workforce system resourcesWorking collaboratively with business and training providers to develop workforce solutions

Transforming the WorkforceSystem

Through the stages of economic evolution, the workforce system has always operated outside the other economic structures of a community.– Little or no interaction with area employers– Minimal contact with existing education institutions;

instead created own cottage industry of job trainers– No coordination with economic development

Each of these issues are now being addressed by national initiatives such as President’s High Growth Job Training Initiative (HGJTI)

President’s High Growth Job Training Initiative (HGJTI)

Involved employers from leading sectors of the economy in the design and development of training programs.

Used existing education resources such as community colleges.

Invested over $285 million in 150 projects that develop education and training solutions to specific workforce challenges.

High Growth Definition

“High Growth” includes . . .– Industries with significant job growth

– Industries that are critical to the nation’s economic viability and development

– Industries that significantly impact the growth of other growth industries

– New and emerging industries

– Transformed by technology requiring significant changes in the workforce skill sets

Targeted Industries

Advanced ManufacturingAerospaceAutomotive ServicesBiotechnologyConstructionEnergyFinancial ServicesGeospatial TechnologyHealth ServicesHospitalityInformation TechnologyRetail TradeTransportation

HGJTI Initial Steps

HGJTI began with tiered approach. Key initial steps before financial investment are:– Identification of high growth, high demand industries– Industry Scans– Industry Executive Forums– Workforce Solutions Forums– Investments in Workforce Solutions Addressing

Industry Identified Challenges

HGJTI Funding

Initially distributed funds through unsolicited proposals that were innovative and responded directly to issue areas defined by industry.HGJTI moved to competitive funding opportunities in targeted, industry sectors.– Designed to provide incentive to the workforce

investment system and other partners to drive demand-drive, innovation workforce solutions at state/local levels.

Dissemination strategies for HGJTI Products

Website (www.workforce3one.org)ETA’s 2007 Workforce Innovations Conference – Distribute CD of 125 products to all 3,000 participants. Partnership with League for Innovation in Community Colleges and American Association of Community Colleges to distribute CDs to all 1,900 community colleges. Industry promotion of products

HGJTI Products*

CurriculumCourse MaterialsCareer LaddersCareer GuidanceReplication Guides

* Distributed on CDs

Outcomes and Performance

Assessment:– Grantees report on number of individuals trained– ETA moving to collect the data required by the

Workforce Investment Act (common performance measures – job placement, retention, and earnings)

– Grantees reporting on impact of all capacity building products, models and activities

– Two-Phase Evaluation– Collection of Anecdotal Information

HGJTI Evaluation

Part 1 – Focuses on Implementation and Sustainability for 20 early HGJTI grantees

Part 2 – Analysis of early impacts of training provided by six HGJTI grantees

Top Factors DeterminingEmployer Site Selection*

1. Availability of skilled labor 90.9% 2. Labor costs 89.9% 3. Tax exemptions 88.2% 4. State and local incentives 88.0% 5. Highway accessibility 86.6% 6. Corporate tax rate 84.6% 7. Proximity to major markets 83.7% 8. Occupancy or construction costs 82.4% 9. Energy availability and costs 80.9% 10. Environmental regulations 76.7%

* Area Development Magazine 2002 Survey

Innovation Economy

Economic development must now establish the conditions for innovation.Three requirements for innovation:– Infrastructure (transportation, technology)– Investment (availability of capital)– Talent

These conditions should be maximized at the regional level, where the forces of the economy combine to spur growth.

Overall WIRED Goals

Create and implement a regional strategy that will:

1. Establish and build a regional identity across political jurisdictions.

2. Leverage and align public and private investments.

3. Transform the regional economy through innovative and effective talent develoment.