workforce statewide presentation 2012
DESCRIPTION
Grow Minnesota Presentation on skilled workforce gap, present economic growth problems, and labor force issues.TRANSCRIPT
Grow Minnesota!
… Generally: ”Eyes & Ears” on the Development & Growth of Our Economy
…Today’s Focus: Workforce: What We’re Hearing
What Is Grow MN!?
• Private sector economic development……strategic links to public sector
• MN Chamber sponsored
• 59 local chamber partners
• 3 parts to the program: – Business retention– Business assistance– Business expansion
Grow Minnesota! Visit – 3 Parts
• Say, “Thank you!”
• Ask, “How can we help your business?”
• Ask, “How to make business environment better?”
Grow MN! 2010-2011 Results
• 990 one-on-one business retention visits
• 23% are revisits
• 122 firms assisted, affecting 4,900 jobs……15 expansions
• BusinessConnection:– 940 on line searches completed– 50 email questions answered
Sales (2010-2011)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Increased RelativelyStable
Decreased FluctuatedWidely
Responses
Per
cen
tag
e
State (N=582) St. Cloud (N=49)
Sales & Profitability -- Last 2 Years
Profitability (2010-2011)
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Increased RelativelyStable
Decreased FluctuatedWidely
Responses
Pe
rce
nta
ge
State (N=541) St. Cloud (N=48)
58%
60%
62%
64%
66%
68%
70%
72%
74%
76%
78%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Fiscal Year
Pe
rce
nt
Businesses Creating New Products in the Last Two Years
Expansions – Next Two Years
Current Community 66%
In MN 15%
Another State 9%
Another Country 2%
Don’t Know 8%
• 2010: 147 (25%)
• 2011: 198 (29%)
• Where: 2011
Workforce: A “New Normal”
• Jobs are being created…
• But, they are different……Mismatch of current skills & current openings
• Persistent problem…growth or recession
Expected Job Growth, Next Year
4%
66%
27%
3%6%
52%
41%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Unsure Stable Increase Decrease
Perc
en
t
2009-2010
2010-2011
Responses 2009-10 N = 600
2010-11 N = 488
Recent Issues Recruiting Employees?(2010-2011 Results)
33%
66%
1%
Yes
No
Unsure
N=667
Key Workers – Still in Short Supply(2010-2011 Grow MN! Results, N = 488 companies)
72%
42%37%
31%
25%22%
19%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Job Type
Per
cen
tag
e
Job Type# of Companies Seeking Workers
% Reporting Unfilled Jobs
Precision Production 216 72%
Professional/Management 185 42%
Clerical/Office Staff 185 37%
Sales/Marketing 178 31%
Information Technology 155 25%
Other 73 22%
Part-Time 149 19%
Temporary/Contract 127 9%
Key Workers – Still in Short Supply(2010-2011 Grow MN! Results)
Labor Force Growth Will Slow Sharply(Source: State Demographer)
1.12%
0.75%
0.43%
0.10% 0.13%
0.27%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
2005-10 2010-15 2015-20 2020-25 2025-30 2030-35
Ave
An
nu
al C
han
ge
Migration: Best Source of New Workers?
-100,000
0
100,000
200,000
300,000
400,000
500,000
2000-10 2010-20 2020-30
Total Natural Part Rate Migration
Net Labor Force Growth
State Demographer projection revised 2007
What Should We Do?
• Understand what employers need
• Change systems accordingly
• Be ready to change again!
Employers: 4 Patterns
• Basic skills, work ethic & OJT
• Basic skills, work ethic, OJT then “higher” ed
• “Jack of all trades” & work ethic
• Basic skills & higher ed
• 300 Employees
• 15% - 4 Yr Degree
• 10% - GED
• 75% - 2 yr (at least) technical training
Albert Lea High School Curriculum
Change The Systems
• K12 – What’s “basic” today? Tomorrow?
• Higher ed – all types– Right courses– Right content
• Dislocated worker programs – time to rethink them?
Be Ready To Change Again!
Questions?