Andy LevinAndy Levin
Chief Workforce Officer, State of MichiganChief Workforce Officer, State of Michigan
Deputy Director, Department of Energy, Labor and Deputy Director, Department of Energy, Labor and Economic GrowthEconomic Growth
November 17, 2009November 17, 2009
No Worker Left Behind and No Worker Left Behind and National Career Readiness National Career Readiness
Certificate:Certificate:Michigan’s Workforce Michigan’s Workforce
Transformation Transformation
A timely opener
We must invest in education
K-12 education is key to MI’s long-term success
Additional revenue is needed to avoid massive cuts in core programs in schools across the state
And - we must restore the MI Promise
The Great Recession – Worst Since ‘30s
1981 Recession
Current Recession
1990 Recession
2001 Recession
Source: Lawrence Mishel, President, Economic Policy Institute, “Sounding the Alarm:Update on the Economic Downturn”
Source: NASWA
0
2
4
6
8
10
12
14
1620
00
2001
2002
2003
2004
2005
2006
2007
2008
2009
Ann
ual A
vg U
nem
ploy
men
t Rat
e
U.S.
Michigan
sources: Bureau of Labor Statistics, and National Bureau of Economic Research
(Recessions shaded )
Michigan September 2009:
15.3% unemployed(But then add 71,000 marginally attached
and 257,600 involuntary part-time. . .)
20.7% un- and underemployed
Unemployment & Underemployment
Right now: 56 applicants for every job
18,887
1,051,606
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Jobs AvailableResumes Available
Educational Attainment
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
> 9th grade
Some HS
HS Grad
Some college
AD BA BA < and professional
MIUS
No HSD692,101
English Less than Very Well
239,128
Low wages (<$15.45)
and no PSE1,153,040
372,414
239,800
41,568
38,322
839,528 123,85135,390
Percent of the total working-age adults (5,041,710): 34%Source: U.S. Census Bureau, 2006 American Community Survey (Public Use Microdata Samples)
1,690,870 Michigan Working-Age Adults (18-64) Need Improved Basic Skills, 2006
The Good Jobs of Today & Tomorrow Require Training
Occupation Network systems and data communications analysts Physician assistants Computer software engineers, applications Physical therapist assistants Dental hygienists Computer software engineers, systems software Network and computer systems administrators Database administrator Physical therapist Forensic science technician
650,000 New Middle-Skill Jobs Predicted for MI by 2016
Source: Calculated by TWA from MDELEG data
More education means lower unemployment rates
Source: U.S. Census Bureau, 2007 American Community Survey
17.4%
10.0%
6.9%
3.4%
Less Than HS
HS Graduate
Some College orAssociate's
Bachelor's Degree +
$18,642
$26,296
$32,592
$47,171
$64,244Graduate orProfessional
Bachelor's
Associate's orSome College
High SchoolGraduate
Less Than HighSchool
Michigan – 2007 American Community Survey, U.S. Census Bureau
The more you learnThe more you earn
Weekly Earnings and Unemployment Rate by Educational Level, U.S.Source: Current Population Survey, April 2009
$0
$200
$400
$600
$800
$1,000
$1,200
< 9th Grade HS AA Deg BA Deg
2%
4%
6%
8%
10%
12%
14%
Weekly Earnings Unemployment Rate
Source: DELEG, Bureau of Labor Market Information & Strategic Initiatives Michigan Job Vacancy Survey 2006
$34.15
$22.50
$19.59
$11.68$9.50$8.00
0%
10%
20%
30%
40%
50%
60%N
o D
iplo
ma
HS
/GE
DV
ocat
iona
l Tra
inin
gA
ssoc
iate
's D
egre
eB
ache
lor's
Deg
ree
Adv
ance
d D
egre
e
Pe
rce
nt
of
Jo
b V
ac
an
cie
s (
%)
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
Me
dia
n W
ag
e (
$)
Education Median Wages
Our Jobs Dilemma
There IS hope hope – key sectors have grown since MI’s last economic peak in 200334%
10%13%
24%
16%
0%
5%
10%
15%
20%
25%
30%
35%
Econom
ic Grow
th from 2003-2008
AgricultureArts/Ent.
HealthcareInformation
Prof. & Tech. Services
Key Economic Sectors
Source: Center for Michigan, June 3 2009, Analyzing U.S. Bureau of Economic Analysis data on state gross product,
Major ChallengeMajor ChallengeRebuilding adult ed in MIRebuilding adult ed in MI CLEG unanimously
approved comprehensive recommendations to transform the adult learning system
Goal: cut the # in need of basic job skills in HALF
MI NCRC complements everything we are discussing in adult learning transformationRelevant education
and training
Real payoffs for the adult learner
Alignment
No Worker Left Behind (NWLB)
Double # of Double # of Michiganders TrainedMichiganders Trained
In-demand occupationsIn-demand occupations To over 100,000To over 100,000 Over 3 yearsOver 3 years
Where is NWLB Today? 102,413 people enrolled in training
by Columbus Day We surpassed 100,000 goal 10
months early First outcomes report released Governor makes NWLB permanent Obama Administration awards
DELEG $38M to train 8,644 workers in three regions (27 counties)
We have greatly accelerated the pace of enrollment – we are putting WIA participants into training at double nat’l rate
17.50% 42%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
WIA Adult + DW Participants Enrolled in Training
NationalMichigan
Source: NWLB Outcomes Report – Adult and Dislocated Workers (Workforce Investment Act) Data
NWLB = 3X more people in long-term training (training longer than one year)
24% 77%
0%
10%
20%
30%
40%
50%
60%
70%
80%
NationalMichigan
Source: NWLB Outcomes Report – Adult and Dislocated Workers (Workforce Investment Act) Data
What are people studying?
Job retention training is helping companies grow and giving employees necessary skills upgrades
Examples: St. Mary’s Healthcare, Wolverine Coil, NK Manufacturing, Cove Quality Foods, Fleet Engineering, North Coast Component
Is anybody who completes training actually finding work in this super tough job market?
After the first 18 months, 11,613 core NWLB participants completed training. Of those trained, 5,559 people got a new job or retained their current job
52% 48%
Got new job
Still looking forjob
Source: NWLB Outcomes Report
Bottom line: Is training helping people get jobs? 86% of unemployed or underemployed people who
got jobs, got jobs related to their training
14%
86%
Not related totrainingTraining related
Source: NWLB Outcomes Report: WIA and TAA participants
NCRC is key credential for NWLB Last year, at this conference, we
announced our MI NCRC policy A year later the National Career Readiness
Certificate is the standard job readiness credential for NWLB program participants
Michigan is the only state in the nation that has aligned K-12 and workforce system with one job readiness credential that is nationally portable
One year later: Implementation of MI NCRC at a glance
Policy Issuance 0830 Michigan Career Readiness Certificate – July 1st, 2009 Nearly $4M allocated to MWAs for implementation for
testing licenses, set up of testing centers, training, new software, administrative support, etc.
Made it state policy that NCRC is the standard credential Focused first year on integrating it with NWLB
Regional training sessions through out the state 100 staffers trained
NCRC testing now available at all 25 MWAs Special MI Certificate – extending Michigan’s brand 7,000 certificates since July 1st
More certificates at a faster rate
NCRC is a major component of DELEG designed NWLB-affiliated programs NCRC requirements at entry
and exit Enter with Bronze Exit with Gold
RCAR 163 certificates thus far
ECAR
Michigan ranks 2nd in certificates earned nationally – we have 25% of all certificates
Goal: 500,000 certificates by 2013 We have an ambitious goal to have over a half
million Michigan residents in our workforce and K-12 systems earn Michigan National Career Readiness Certificates by 2013
““I want to applaud Governor Granholm for the No Worker I want to applaud Governor Granholm for the No Worker
Left Behind program. It's providing up to two years' worth of Left Behind program. It's providing up to two years' worth of
free tuition at community colleges and universities across free tuition at community colleges and universities across
the state. The rest of the country should learn from the the state. The rest of the country should learn from the
effort.” effort.”
-President Obama at Macomb Community College, 7-13-09-President Obama at Macomb Community College, 7-13-09
Looking forward: Influencing national workforce policy
NCRC can play an important role as MI increasingly enters national policy fray
President’s community college initiative
Tackling the elephant in the room: millions of unprepared adult workers
Trying to make WIA reform the basis for a true 21st Century national workforce policy
Moving Forward Questions?
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