Training and Employment Administrators of Missouri
Missouri’s unemployment rate remains three-tenths of a point below the national average, according to data released today by the Missouri Department of Economic Development.
Missouri’s unemployment rate for August is 8.8 percent, up one-tenth of a point from the July report. The state’s unemployment rate remains seven-tenths of a point lower than it was in January.
The national unemployment rate is currently 9.1 percent. The state’s nonfarm payroll employment decreased by 3,100 during August.
The National League of Cities published a news analysis on May 2nd on the effectiveness of the public workforce system. The NCL represents more than 19 thousand communities nationwide.
If there is a single mantra that is heard over and over again, it is that the country must find a way to put Americans back to work. Though a major obstacle to putting people back to work is a lack of jobs, another obstacle is the mismatch between the skills of unemployed workers and what business needs. This mismatch has contributed substantially to the slow rate of return of America’s unemployed to the workforce.
Recognizing this is one part of the solution. Addressing it head on is yet another part. There is at least one important way to address this problem at the local level and that is through the nation’s workforce development system. Established by the Workforce Investment Act (WIA), the nation’s workforce development system is designed to provide a wide range of services to individuals in need of job training and placement assistance.
For example, last year, the workforce development system provided more than 10 million Americans with a wide range of services including apprenticeships, job training, basic education and job placement assistance. More than 8 million of those came through the Workforce Investment Act system alone. The remainder came through a range of workforce development programs designed to meet the needs of specific populations like migrant workers, American Indians, seniors and youth. And if you add those who received Internet-based assistance, an additional 8.5 million adults were helped.
As one travels across the country, one will find example after example of individual job training programs that have provided individuals with excellent job training assistance that have resulted in them being placed in well-paying if entry level jobs. Programs funded by the WIA are placing nearly 60 percent of their enrollees in jobs paying on average nearly $14,000 per year. And of those in jobs, nearly 80 percent were still on the job after one year.
The modern era of “workforce development” traces its roots back to the Manpower Development and Training Act (MDTA) of the 1960s and the Comprehensive Employment and Training Act (CETA) of the 1970s. These federal workforce programs were followed by the Job Training Partnership Act (JTPA) of the 1980s which established a stronger role for employers via “private industry councils,” and the 1990-era Workforce Investment Act (WIA) which emphasized service/funding coordination via “one stop centers.” It is apparent to me that we are about to enter another milestone transition, one that will greatly affect employers, the workforce, as well as professionals in the system. The changes that I foresee will be shaped by these factors.
Agility
More than ever, the workforce system must rapidly respond to changing situations. The next three years will probably be the most volatile period ever faced by the workforce development system. It will be marked by economic restructuring, continuing high unemployment, political unrest, and severe constraints on public spending. To be successful, state and regional leaders must be prepared to navigate this environment skillfully and will need new models of employer and community engagement to do so. Traditional models of strategic planning resulting in changes at the margins will not suffice in this environment. We will need to act with speed in “acting our way to a new plan” instead of “planning for new ways of acting.”
The federal Workforce Investment Act (WIA) will change, perhaps substantially
Congress will soon either reauthorize the Workforce Investment Act with significant restructuring or will replace this act outright. Originally enacted in 1998 as a five-year law, a review of this program is long overdue. While federal policy makers will reshape and fund this program, the core issues faced by employers and job seekers will remain at the state, regional and community levels. The workforce development system – employers, staff, educators and the economic development community — must be prepared for major transitions requiring new partnerships, new political alliances, and the use of new technology. Given the current federal budget discussions, doing more with less with be the rule of the day.
Skill certifications will drive the system
Skill certifications are rapidly becoming the currency for both hiring by employers and advancement in progressive levels of education. Employers are placing much higher value on whether its workers come to them ready to work with the specific skills needed for the job rather than general degrees. They’re looking at the demonstration of skills through the prism of work experience or specialized training. In addition, education systems are rapidly developing and deploying “stackable certificates” to define articulation agreements and to accelerate students’ degree attainment. This trend includes the increased practice of allowing adult students to “test out” of courses where they already have competencies achieved on the job or via industry-specific training. Finally, the high cost of college has led many students to begin their training through lower-cost industry-defined certifications or at community colleges, where credits earned are then transferred to higher-cost institutions. Successful workforce development programs will need to be adept at managing a certification-driven system with stronger partnerships among employers, community colleges and technical schools, while providing better transitional guidance for workers who are laid off and receiving unemployment compensation.
Technology will continue to change the way we find jobs and acquire training
Employers are increasingly using a variety of job boards and social media sites to search for talent, and states are working to have greater relevance to employers in a crowded field of sites. Improvements in state platforms provide the opportunity for numerous applications that are customer-friendly and cost-effective at a time when customers increasingly expect 24/7 service access with high functionality. Advances in instructional technology will also lead to an increase in on-line training and educational offerings. Greater use of skill certifications and new technology will enable workforce development staffs to offer more creative and attractive options to laid-off workers and to the employers who hire them. Community colleges and technical schools are already working to increase on-line access for workers impacted by the movement of jobs overseas and to use improved technology to attract, retain, track, and ultimately place candidates. Workforce development staffs will need to be well-versed in the new tools and technologies and be able to assist staff and system customers in applying them in ways that connect seamlessly to services offered through one-stop centers.
Regional Leadership
The key partners in the workforce development world must continue their work at strategically thinking and acting at the regional level. Regional sector-based leadership will be the hallmark among workforce investment board and their partners in economic development and education. The workforce boards must strategically plan for talent development and retention as a primary asset for regional economic growth. New leadership skills will be necessary to develop joint planning processes aimed at partnership building with economic development and education officials. From these strategic partnerships, it will be essential to engage employers on a sector-by-sector basis in new and creative ways that demonstrate a clear menu of value-added services, customer-friendly access points, and joint solutions involving multiple agencies and funding sources. Business contact programs must be refined and re-invented to provide new level of efficiency in providing information to employers and in coordinated responsiveness for solutions to their needs.
The current environment is a source of anxiety for everyone in the system. For workers and employers, the overall job market along with much discussed yet not realized growth areas such as “green jobs” provide great anxiety. It is also an uncertain time for workforce development and education staffs as anticipated funding cutbacks threaten both their jobs and their resources for serving their customers at a time of increased service demands and high stress. We cannot allow the current uncertainty to lead to paralysis. Rather, it is a time when new ideas and new partnerships need to flourish in the environment that is described above.
The issues related to skills and education deficits, along with related barriers of drug abuse and deteriorating family support structures, will not go away. A high school dropout is likely to enter a life of poverty, and a high school graduate lacking a post-secondary credential is increasingly unlikely to enter the middle class as we have known it. Leadership at the state and local levels to craft solutions and communicate key messages to employers and to the public has never been more important than it is now.
Roy Vanderford is Senior Vice President of Workforce Solutions at Thomas P. Miller and Associates, an Indianapolis-based consulting firm. He has previously led Workforce Development agencies in Indianapolis, Evansville and Louisville.
An official proclamation signed by Governor Nixon designating March 17, 2011 as “Career Readiness Day,” and a statewide summit of workforce and education practitioners will herald Missouri’s launch of a new National Career Readiness Certificate (NCRC). NCRC is a new initiative administered by the Missouri Department of Economic Development’s Division of Workforce Development (DWD) that will help the state’s businesses and workers be more competitive.
The proclamation calls development of a well-prepared workforce “vital to the future success of our state, its people and its businesses,” and outlines how usage of the NCRC will make it easier for businesses to access talented workers.
Issued by ACT (American College Testing) and offered through the state’s 43 Missouri Career Centers and network of community colleges, the NCRC is a portable evidence-based credential that measures essential workplace skills and is a reliable predictor of workplace success. Job seekers can achieve a certificate in one of four levels — bronze, silver, gold and platinum — by successfully passing a series of skills assessments. Businesses can then consider the certificate among applicants’ résumé and other qualifications to select the employee who will have the best skills match for the job.
“States that best address their workforce training issues are states that are in the best position to move their economies forward,” said David Kerr, Director of the Missouri Department of Economic Development. “Under Governor Nixon’s leadership, Missouri has demonstrated an increased commitment to job training, as illustrated by the millions of dollars our administration has invested into training and education. The NCRC is another example of our commitment to a well-prepared workforce.”
An NCRC Summit held Thursday at the Governor’s Office Building in Jefferson City brought together leaders and practitioners from all of Missouri’s community colleges and workforce investment regions to strategize how to use the certificate to prepare a 21st century workforce for employers. The Summit featured practical implementation advice from the leader of the state of Michigan’s highly successful NCRC efforts. The Southwest and Jefferson-Franklin WIB regions presented local best practices through panel presentations.
Missouri’s NCRC initiative is being led by Molly Tallarico of DWD, the agency that administers the Missouri Career Center system in cooperation with the state’s 14 workforce investment boards. To learn more about the NCRC, visit the official website at www.ded.mo.gov/ncrc or call the nearest Missouri Career Center at (888) 728–JOBS (5627).
Agriculture Secretary Tom Vilsack announced the debut of an online mapping tool that captures a broad range of demographic, economic, and agricultural data on rural areas across the United States. The Atlas of Rural and Small-town America, developed by USDA’s Economic Research Service, provides county-level mapping of over 60 statistical indicators depicting conditions and trends across different types of nonmetro regions.
“The new Atlas will complement USDA’s efforts in promoting rural development and well-being by helping policy makers pinpoint the needs of particular regions, recognize their diversity, and build on their assets,” said Vilsack. “The Atlas is part of a broad USDA initiative to make relevant data easily accessible to the public, including researchers, journalists, public officials, and other professionals.”
Nearly 50 million people — 17 percent of the U.S. population — live in nonmetropolitan (nonmetro) America, covering approximately 2,000 counties. Economic and social challenges facing rural areas and small towns differ greatly from those affecting larger U.S. cities, and vary substantially from one nonmetro county to the next.
The Atlas allows users to geographically compare selected states or regions using data on population, age structure, race and ethnicity, income, employment, agricultural well-being, and other measures. Regional planners in the rural Southwest, for example, could compare population trends in their area with counties or states in the Midwest. Maps can be filtered to show only counties of a certain type, such as those with high levels of manufacturing or with persistent poverty. For example, this option could be used to show high unemployment in manufacturing-dependent counties.
This web-based product assembles the latest county-level statistics from the U.S. Census Bureau, the Bureau of Labor Statistics, the Bureau of Economic Analysis, USDA, and other Federal sources. Of particular note, the Atlas incorporates data from the first full set of county-level data in the Census Bureau’s American Community Survey (ACS). Data from the various agencies are combined in four broad categories that users can select:
Users can click on a county and view a pop-up box showing data on all the indicators in each of these four categories. In addition, users can view an indicator (e.g., employment data) for the entire country, or can zoom into specific regions, states, or sub-state areas, and pan across the U.S. at different scales on the map. Maps can be downloaded for use in documents and presentations, and data are accessible via downloadable spreadsheets.
The Rural Atlas is visually and functionally similar to another product developed by the Economic Research Service – the Food Environment Atlas – which maps U.S. counties by factors that reflect a communities’ access to affordable, healthy food. That web-based tool has attracted considerable attention from the media and among professionals concerned with diet and public health.
The Atlas of Rural and Small-Town America is available online at http://www.ers.usda.gov/data/ruralatlas.
A recent article posted by Associated Press should have U.S. manufacturers very excited about the future, as noted by Jack Schultz in the latest Agurban ezine. In the AP’s January 31, 2011, article titled, “U.S. factories remain on top in manufacturing”, several key points were made, including:
We are excited by the continued positive news relating to the manufacturing sector! Stay tuned!
Jack Schultz is the CEO of Agracel Inc., an industrial development firm majoring in rural America, and author of Boomtown USA – The 7 1/2 Keys to Big Success in Small Towns.The Agurban is a free newsletter distributed each week to community and economic development professionals throughout the United States. Permission is hereby granted to forward, print, circulate, or quote with credit to The Agurban and Jack Schultz.
Christopher Chung of the Missouri Partnership penned an article for Government Technology magazine on Missouri’s competitive edge for jobs and investment in the data storage industry sector. The feature includes a screenshot of Missouri’s I.T. scene. Chung boats of Missouri’s competitive operating costs, infrastructure, and workforce. Background information on the certified sites program promotes ideal locations around the state.
U.S. DOL released a new guide to respond to numerous local requests around the country for more options and insights on using labor market data. The Guide to State and Local Workforce Data: For Analysis and Informed Decision Making makes it easy for a wide variety of users to understand what state and local labor market information/workforce information (LMI/WI) is available on various topics and to locate specific data tables quickly.
Workforce Development is prominent in the strategies drafted statewide to advance the economic development efforts throughout Missouri. Missouri’s initiative to identify the tools and industries that will transform the state’s economy for the 21st Century reached an important milestone today, as the Strategic Initiative for Economic Growth submitted its initial recommendations to Gov. Jay Nixon.
“To compete in the 21st-century economy, Missouri must strategically review where we are investing our resources to create the jobs of tomorrow,” Gov. Nixon said. “Refining our economic-development efforts to ensure the best return on investment is what this strategic initiative is all about. I applaud Director David Kerr and the hundreds of leaders from the private sector, educational institutions and economic-development organizations who are stepping forward to share their insights and expertise through this process. The final result truly will be a roadmap to jobs, economic growth and prosperity for years to come.”
Following recent focus groups held in regional quadrants across Missouri, the project solicited white papers from various channel leaders to help guide the steering committee. The initiative now has 40 white papers across a wide array of economic development categories with two position papers specifically on workforce development and an additional eight on education.
Launched in May, Gov. Nixon established the strategic initiative to develop a five-year economic roadmap for Missouri. Under the leadership of Director of Economic Development David Kerr and an executive advisory board of private-sector leaders, the initiative today submitted its preliminary strategic objectives to Gov. Nixon.
When he announced the planning initiative, Gov. Nixon instructed the steering committee to submit a set of preliminary objectives to spark growth in targeted industries by Dec. 1. Over the next three months, the steering committee will develop detailed tactical plans, which could include legislative and policy proposals, to carry out each of the eight broad objectives identified by the group.
Eight strategic objectives
• Missouri will attract, develop and retain a workforce with the education and skills to succeed in a 21st-Century economy
• Missouri will support its local economic-development organizations in the retention and expansion of existing businesses and employers
• Missouri will optimize its tax, incentive and regulatory policies to best support the growth of high-value target business sectors
• Missouri will invest in technology and innovation to attract, launch and sustain the growth companies of the future
• Missouri will aggressively market the state to domestic and select international audiences
• Missouri will develop a best-in-class foreign trade initiative
• Missouri will develop a culture that encourages small- and minority-business development and entrepreneurship
• Missouri will provide the infrastructure necessary for companies and communities to be successful
Based on the data they have reviewed, the members of the steering committee believe these strategic objectives are important steps to create a business climate conducive for the development of the high-growth industries of the future, including:
• Advanced Manufacturing, including transportation equipment, aerospace and defense
• Energy Solutions
• Bioscience, including plant and agricultural technology; companion- and feed-animal science; and biomedical
• Health Sciences and Services, including health care innovation, services and sciences;
• Information Technology, including software, hardware, systems design and data centers
• Financial and Professional Services
• Transportation and Logistics, including freight haulers, warehousing and wholesalers
The final plan will outline specific steps Missouri should take to create jobs in these industries over the next five years.
“As Governor, my top priority is creating jobs and putting Missourians to work in the high-demand industries of the 21st Century,” Gov. Nixon said. “By focusing on these critical industries, we are laying a granite foundation for economic growth in our state.”
The strategic objectives are the product of three meetings of the statewide steering committee and six regional planning forums, which took place in every region of Missouri in September. The next step in the planning process will involve a second series of regional forums, in which local leaders will be asked to help formulate detailed tactical plans to execute the strategic objectives. Those regional meetings will take place in early January.
After the second round of regional meetings, the statewide steering committee and executive advisory board will finalize the detailed tactical plans. Those plans will be submitted to Gov. Nixon by March 31, 2011.
“From global giants to one-room start-ups, every successful business has a detailed plan for growth and development,” said David Kerr, director of the Missouri Department of Economic Development. “Missouri should not be any different. To compete against other states and foreign countries for the jobs and investments of tomorrow, we need a clear roadmap of where we’re headed and how we’re going to get there. I encourage the local leaders who took part in our first round of regional forums to participate again in January. We need input from leaders in every industry and every corner of Missouri to make sure our plan is as detailed and comprehensive as possible.”
The members of the initiative’s private-sector executive advisory team are: Ann Marie Baker, UMB, Springfield; Paul Combs, Baker Implement, Kennett; Bill Downey, Kansas City Power & Light, Kansas City; and David Steward, World Wide Technology, St. Louis.
A new report released from the International Economic Development Council (IEDC) offers helpful advice that workforce development leaders and system staff could emulate as well. The Role of Local Elected Officials in Economic Development: 10 Things You Should Know is a valuable tool in building relationships of local developers with their local elected officials. The guidebook outlines the “top 10 list” of things elected officials should know about economic development in order to be effective leaders. The publication is the result of a partnership between the National League of Cities Center for Research and Innovation and the International Economic Development Council.
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