Economic Impact of Workforce Center Operations · 2015. 7. 1. · Economic Impact of Workforce...

Impact of Arapahoe/Douglas Works! on Business Earnings, Sales, & Job Growth in the Denver-Aurora Metropolitan Area

Arapahoe/Douglas Works!Program Year 2008July 1, 2008 – June 30, 2009

Economic Impact of Workforce Center Operations

Executive Summary ...................................................................... 2Study Overview ........................................................................... 3 Mission, Vision & Key Results ........................................................ 10Background ................................................................................ 10Study Objective ........................................................................... 10Economic Base Denver-Aurora Metropolitan Statistical Area (MSA) ...... 11Study Methodology ....................................................................... 13Overall Regional Economic Impact of Arapahoe/Douglas Works! ....... 14Impact by Industry Sector ............................................................... 15

Bioscience and Health CareAviation, Aerospace and Homeland SecurityInformation TechnologyFinanceRenewable Energy and ConservationEnabling Occupations

Impact by Program ....................................................................... 27Workforce Investment Act (WIA) Adult, Dislocated Worker American Recovery and Reinvestment Act (ARRA) Adult, and Dislocated Worker Youth Programming, Including WIA, ARRA, and Other ProjectsTrade Adjustment Act (TAA)Child Support EnforcementEmployment FirstTemporary Assistance for Needy Families (TANF)/Colorado WorksIncumbent Worker Projects

Conclusion ................................................................................... 36Sources ....................................................................................... 38Glossary of Terms ......................................................................... 39

Table of Contents

Economic Impactof Workforce Center Operations Arapahoe/Douglas Works! Program Year 2008, July 1, 2008 – June 30, 2009

STuDY CONDuCTED BYPatrick Holwell, M.A.Workforce Economist, Arapahoe/Douglas Works!

Credits

SuBSTANTIAl CONTRIBuTORSJoseph M. BarelaDivision Manager, Arapahoe/Douglas Works!

Allyson HathawayColorado Department of Labor and Employment, Labor Market Information Division

larry lemmonsColorado Department of Labor and Employment, Connecting Colorado

Terence HughesColorado Department of Labor and Employment, Connecting Colorado

leo ChavezColorado Department of Labor and Employment, Unemployment Insurance Division

Gary HorvathUniversity of Colorado at Boulder, Business Research Analyst Department

Brian lewandowskiUniversity of Colorado at Boulder, Business Research Analyst Department

Mark BeauchampEconomic Modeling Specialists, Inc.

Phillip McCready, PhDInnovation Economics

Judith Cohen, PhDMarket Views, LLC

linda MurphyColorado Urban Workforce Alliance

Danny SisnerosArapahoe/Douglas Works!

Kelly FolksArapahoe/Douglas Works!

Najwa KhalafArapahoe/Douglas Works!

Dawn GardnerArapahoe/Douglas Works!

Michael SuooArapahoe/Douglas Works!

lorie SmithArapahoe/Douglas Works!

Darcy KennedyArapahoe County Administrative Services

Haley McKeanArapahoe County Communication Services

Economic Impactof Workforce Center Operations Program Year 2008, July 1, 2008 - June 30, 2009

April 1, 2010

Dear Reader,

This first annual study was conducted for Arapahoe/Douglas Works!, a division of the Community Resources Department of Arapahoe County Government, to create benchmarks to measure and improve its effectiveness in serving the workforce development needs of its community. Arapahoe/Douglas Works! is one of nine federally funded workforce development regions serving Colorado and is responsible for delivering services under the Workforce Investment Act and American Recovery and Reinvestment Act to Arapahoe and Douglas counties, which together make up the southeast part of the Denver-Aurora Metro Area in Colorado

Nationally, the workforce development system is part of an overall system that works with business to add jobs, increase earnings and sales and maintain global competitiveness. It stands alongside K-12, vocational and two-year colleges, four-year and graduate universities and apprenticeship programs, which all exist for the purpose of preparing people to contribute economically to the nation through gainful employment.

The purpose of the study was to determine the economic effect, that Arapahoe/Douglas Works! had on the Denver-Aurora Metro Area in terms of regional increase in jobs, increased regional business earnings and increased sales during the program year beginning July 1, 2008 and ending June 30, 2009 (PY08).

The study found that Arapahoe/Douglas Works! can be credited with 7,208 people entering employment in the Denver-Aurora Metro Area during PY08. This increased aggregate regional business earnings by over $675 million and aggregate sales by $1.2 billion. Public costs totaling $94.3 million were calculated against these gains. These costs included the $8.5 million that Arapahoe/Douglas Works! spent in PY08, plus unemployment, welfare and food stamp payments associated with achieving a regional increase of 7,208 jobs. Results show that even carrying public costs over eleven times its annual operating budget, Arapahoe/Douglas Works! showed a return on public investment (ROPI) of $7.16 in aggregate increases in earnings for each $1 public dollar spent and $12.82 in aggregate increases in regional business sales for each $1 public dollar spent.

The intent is that this study and others like it will become part of a national dialogue on how the United States can boost its national security through purposeful management of its workforce to keep key industries competitive in a global economy, and how the effectiveness of federally funded workforce development programs may be gauged.

Thank you to the Arapahoe and Douglas County Boards of County Commissioners and the Arapahoe/Douglas Workforce Board for their continued support and investments in human capital for sustained economic vitality.

Regards,

Joe Barela Patrick J. Holwell, M.A.Division Manager Workforce EconomistArapahoe/Douglas Works! Arapahoe/Douglas Works!

letter to the Reader

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The Arapahoe/Douglas Workforce Board is keenly aware of the need for transparency in government at all levels. It asked Arapahoe/Douglas Works, its operator, to assess the economic impact of its operations over a one year period to create a performance benchmark, and then to complete annual studies of economic impact. The Board realizes that the investments in human capital it makes have great benefit for the customers served, but is convinced that each placement in employment has benefits shared by the entire community. The study measures the effect job placements made by Arapahoe/Douglas Works! had upon regional job growth, aggregate earnings and sales. The time period covered in the study is Program Year 2008 (PY08), which began July 1, 2008 and ended June 30, 2009.

• Arapahoe/Douglas Works! provided intensive and training services to 15,431 people in PY08, and can be credited with 7,208 job placements. The economic impact of these placements on the region:

• This put an additional $675.5 million of earnings into the region to be spent on goods and services.

• Aggregate regional sales increased over $1.2 billion due to the increased earnings.

• This benefit to the community was offset by $97 million in public costs, of which only $8.55 million are the monies spent directly by Arapahoe/Douglas Works!, unemployment payments, welfare, food stamps and other public monies spent serving this group.

When benefits were divided by costs, Arapahoe/Douglas Works! achieved a return on public investment of:

• Over $7.16 in increased earnings for each $1 public dollar spent.

• $12.82 in increased aggregate sales for each $1 public dollar spent.

Executive Summary

3


OverviewThis study was conducted at the request of the Arapahoe/Douglas Workforce Board (WIB) for Arapahoe/Douglas Works!, a division of the Community Resources Department of Arapahoe County Government, which serves Arapahoe and Douglas counties on the southeast part of the Denver-Aurora Metropolitan Area in Colorado. It is one of nine workforce development regions serving the state, and is part of the national, publicly funded workforce development system designed to meet the needs of American jobseekers and employers.

The mission of the Arapahoe/Douglas Workforce Board is to invest in human capital for the sustained economic vitality and competitiveness of regional businesses in a global economy. The workforce development system stands alongside K-12, vocational and two-year colleges, four-year and graduate universities and apprenticeship programs, all of which exist for the purpose of preparing people to contribute economically to the region and the nation through gainful employment.

Arapahoe/Douglas Works! provides training assistance in critical occupational skills for unemployed persons, and teaches unemployed workers how to effectively transfer their skills to new industries and become marketable in the labor force. Customers may access workforce center staff and resources at offices in Greenwood Village, Castle Rock and Aurora.

Arapahoe/Douglas Works! also works with businesses to add jobs, increase earnings and sales and maintain competitiveness. The organization strives to contribute to the strategic goal of both Arapahoe and Douglas counties to enhance the quality of life for citizens, which we believe may be accomplished through job growth, increased business earnings and sales, increased property values and a healthy tax base.

Arapahoe/Douglas Works! and the national workforce development system at-large primarily are

federally funded through the Workforce Investment Act of 1998 and the American Recovery and Reinvestment Act of 2009.

Study PurposeThis study highlights the performance of Arapahoe/Douglas Works! during Program Year 2008 (PY08), beginning July 1, 2008 and ending June 30, 2009, and attempts to gauge its economic impact on the Denver-Aurora Metro Area during that period.

The study also attempts to identify, quantify and set a baseline for relevant demand-side performance measures for the workforce development system, which has historically only been gauged based on supply-side measures.

It is hoped that this study, and future efforts like it, will become part of a national dialogue in determining appropriate demand-side accountability measures that might be applied to the workforce development system.

Labor Supply and DemandLike most economic markets, the labor market in the United States is governed by supply and demand.

I f t h e

Labor supply (number of skilled workers seeking employment) exceeds the demand for labor (employers seeking qualified workers), then larger numbers of people go unemployed and the local economy suffers. If labor demand is larger than labor supply, businesses lose the opportunity to increase earnings and sales because they can’t find qualified people with the skills to fill critical jobs. Only when

SuPPLy SiDe(Investment in Human Capital

DemanD SiDe(Critical labor Needs of

Key Industry Sectors)

Study Overview

4


skilled labor supply is equal to the demand for skilled labor is equilibrium achieved.

Although unemployment rates are high at the writing of this study, much has been written about the increasing shortage of workers in the United States with the critical skills necessary to keep the nation’s businesses competitive in a global economy. According to the 2008 Employment Dynamics and Growth Expectations (EDGE) Report published by Robert Half International, even in the current recession with a high number of unemployed workers from which to choose, it takes an average of 4.5 to 14.4 weeks for a business to fill a position with a qualified candidate, depending on the level of the position.

For any training or labor exchange entity, a business that hires the graduate or job-seeker is the final and critical customer. The workforce development system is charged with addressing this demand for labor, by helping employers find a qualified candidate, as well as offering training assistance to candidates to ensure the labor pool is equipped with critical skills to support growing industries.

Performance measures in Workforce DevelopmentSince its inception in the early 1960s, the performance of the nation’s workforce development system has been gauged by supply-side measures that are currently called ‘Common Performance Measures.’

These measures all relate to the labor supply (job-seeking customers), including how many people attain employment (Entered Employment Rate), whether they retained their jobs after six months (Six-Month Job Retention Rate), and the difference in their personal earnings (Increase in Earnings) after receiving workforce center services.

However, it is increasingly apparent that the nation’s workforce development system must address both supply and demand-side measures in managing the skilled labor force in the United States. To demonstrate its return on public investment (ROPI), the system should evaluate its impact on the demand side of the labor supply, and gauge whether it has positively supported the nation’s economic competitiveness.

On the demand side of the labor market, several relevant performance measures are possible. This study concentrates on three demand-side measures for economic impact achieved by Arapahoe/Douglas Works! in PY08, including: new jobs added to the workforce region (Jobs Added), earnings of local workers (Earnings Change), and an impact on business gross receipts (Sales Change). See Glossary for definitions.

How This Study Was DoneThis study evaluates the overall economic impact of Arapahoe/Douglas Works in PY2008 on Adams, Arapahoe, Broomfield, Denver, Douglas and Jefferson counties, which make up a major urban economic region, referred to henceforth as the Denver-Aurora Metro Area.

The study also evaluates the economic impact on the workforce region’s targeted industry sectors. The Arapahoe/Douglas Works! Workforce Investment Board, which governs workforce development in Arapahoe and Douglas counties, selected the following industries in 2004 as being critical to the economic well-being and continued global competitiveness of the region: Aerospace/Aviation/Homeland Security, Bioscience/Health Care,

Study Overview

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Finance, and Information Technology. The Board subsequently also targeted Renewable Energy and Conservation as another high-growth industry that is critical to the region’s economic well-being. In addition, the study assesses the impact on enabling

occupations, which are critical to the performance of key industries.

Industries in the study are classified using the North American Industry Classification System (NAICS), which employs two-digit codes for macro-level industries and six-digit codes for micro-level ‘sub-sectors’ of an industry. All key regional industry sectors were defined with input from industry associations, industry literature and research with companies within each six-digit NAICS sub-sector.

For example, NAICS 52 is Finance and Insurance, which is comprised of many two-digit sub-sectors, such as central banks, commercial banks, securities

brokers, personal financial advisors, portfolio managers, and life, health and casualty insurance carriers. Table 1- Biosciences Sector shows how the Biosciences Sector (NAICS 31-33) is defined in Arapahoe and Douglas counties.

Occupations in the study are classified using the Standard Occupational Classification system of ONET-SOC codes, which are used by workforce development regions to classify unemployed workers who register and receive training assistance services. Critical and difficult-to-fill occupations for key industries have been identified using data from the U.S. Bureau of Labor Statistics, state departments of labor, economic modeling tools, and through outreach to local businesses in those targeted sectors.

Lastly, the study evaluates the economic impact of each workforce center program in PY08, including those serving adult and dislocated workers, youth, non-custodial parents who are behind in their child

NAICSAdjusted

Jobs Added

Adjusted Increased

Earnings (K)

Adjusted Increased Sales (K)

EPW (K)

423450 Medical equipment merchant wholesalers 26 3,036$ 5,435$ 123$ 339112 Surgical and medical instrument manufacturing 20 1,679$ 3,006$ 90$ 541710* Physical, engineering and biological research (33%) 9 827$ 1,481$ 97$ 334510 Electromedical and electrotherapeutic apparatus manufacturing 6 513$ 919$ 84$ 333319 Other commercial and service machinery manufacturing 6 343$ 613$ 61$ 325412 Pharmaceutical preparation manufacturing 5 614$ 1,099$ 124$ 339116 Dental laboratories 4 205$ 367$ 49$ 339113 Surgical appliance and supplies manufacturing 3 261$ 468$ 82$ 339114 Dental equipment and supplies manufacturing 3 87$ 155$ 35$ 334516 Analytical laboratory instrument manufacuring 1 45$ 81$ 57$ 339115 Ophthalmic goods manufacturing 1 20$ 36$ 31$ 325413 In-vitro diagnostic substance manufacturing 0 17$ 31$ 119$ 333298 All other industrial machinery manufacturing 0 4$ 8$ 39$ 339111 Laboratory apparatus and furniture manufacturing 0 3$ 6$ 45$ 325414 Other biological product manufacturing 0 5$ 9$ 131$ 334517 Irradiation apparatus manufacturing 0 3$ 6$ 108$ 325411 Medicinal and botanical manufacturing c 43$ 76$ 90$

Biosciences Sector

Source: EMSI Complete Employment - 2nd Quarter 2009 v. 2*This NAICS Code has been broken into two separate codes

Total Biosciences 85 7,707 13,796 54$

Table 1

Study Overview

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support payments, residents receiving certain cash or food assistance benefits, and two customized projects supporting incumbent workers at local businesses.

Study efforts involved first obtaining a list of all placements (persons hired after being referred to a job by the workforce center) by industry from several statewide sources. Overall raw placement data originated with Connecting Colorado, which is the Colorado Department of Labor and Employment’s tracking system for its workforce development operations.

Data came from the Colorado Department of Human Services for the Parents to Work Program, serving non-custodial parents behind in their child support payments; the Colorado Works program, serving work ready Temporary Assistance to Needy Family recipients; and the Employment First Program, serving food assistance recipients. Literature reviews were conducted where necessary to supplement incomplete raw data sets with state and/or national averages.

The Labor Market Information and Unemployment Insurance Divisions of Colorado’s Department of Labor and Employment turned raw data supplied by Arapahoe/Douglas Works! into a frequency list of placements by industry at the six-digit NAICS level.

This list was then input into EMSI (Economic Modeling Systems, Inc), and run to determine overall economic impact, impact for each targeted industry sector and impact by program, in terms of jobs added, increased earnings and increased sales as a result of the efforts of Arapahoe/Douglas Works! during PY08 (7/1/08 through 6/30/09).

input-Output modeling and multiplier effectsThe EMSI input-output model was used to determine the effect that adding a job in one industry might have on other industries in terms of multiplying jobs,

earnings and sales changes, causing a positive ripple effect throughout the local economy. A ‘multiplier’ effect is measured using known economic relationships between industries within a region.

For example, consider that Arapahoe/Douglas Works! provided training assistance in PY08 to 209 persons to become Registered Nurses. If ten of those individuals found employment at a general medical and surgical hospital in the Denver-Aurora Metro Area, EMSI data tells us that 18 additional jobs would be created in the region, because the Jobs Multiplier for this industry is 1.82 (.82 jobs created for every one industry job added).

By filling these positions, the hospital could serve more patients, which equates to increased sales and hospital earnings. These earnings are distributed

into the community through wages, which are used by the earners to buy goods and services. This causes jobs to be added in other industries, such as local government, real estate, entertainment, retail, restaurants and even the postal service.

For each $1 in increased earnings for the newly hired hospital workers, workers hired in peripheral industries earn another $0.58.

For each $1 increase in sales by the same regional industry, sales of businesses within the region increase by $0.80. This is the ‘Sales Multiplier.’

Therefore if ten nursing jobs are added, the earnings in the general medical and surgical hospital industry as a whole would increase by $677,000. Revenues

7 jobs added to other industries

1 job added to local

government

10 jobs added to hospitals

Study Overview

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for local government would increase by $30,000; for attorney’s offices by $17,000; for the Postal Service by $13,000; for full-service restaurants by $7,000 and so on.

It is important to note that a job added in one industry will likely have different jobs, earnings and sales multipliers. For example, the search, detection and navigation instruments manufacturing sector (in the aerospace/homeland security industry) has a ‘Jobs Multiplier’ of 2.8 in the region. This means that for every one job added in that sector, an additional 1.8 jobs are added in other industries. The concept is the same for earnings and sales multipliers.

Supply-Side Performance for arapahoe/Douglas Works! Py08In PY08, 60,048 unemployed people registered with Arapahoe/Douglas Works! Of those, 16,373 found jobs. Of the 16,373, Colorado Department of Labor and Employment had wage and employment data on 14,671.

When a person becomes unemployed, they must register with a workforce development region in order to receive their unemployment checks. However, they are not required to get services from the workforce development region. Because of this, Arapahoe/Douglas Works! took credit for only a portion of the 14,671 placements.

Internal data obtained from Connecting Colorado shows that of the 60,048 registrants, just over

15,400 (25.69%) actually came to Arapahoe/Douglas Works! and obtained direct services. For purposes of this study, the 14,671 placements were

reduced by multiplying that number by .2569, resulting in the 3,769 placements for which Arapahoe/Douglas Works! can ethically be credited. This is the number of placements for which Arapahoe/Douglas Works! is actually credited in this study.

S u p p l y - s i d e performance measures for Arapahoe/Douglas Works! in

PY08 can be seen in Table 2— Arapahoe/Douglas Works! Performance Results PY08.

The study also suggests that services offered through Arapahoe/Douglas Works! and other workforce centers significantly increase an unemployed person’s chances of finding work. Data was available on employment outcomes for web registrants and for persons receiving services through the Workforce Investment Act (WIA), American Recovery and Reinvestment Act (ARRA) and Trade Assistance Act (TAA). The study found:

• Web registrants had a 71% chance of finding work.

• Persons receiving workforce center services through WIA, ARRA and TAA programs had an 82% chance of finding employment.

• Persons receiving assistance through WIA and ARRA adult and dislocated worker programming had an 89% chance of finding employment.

• Persons receiving services through the WIA dislocated worker program had a 94% chance of finding employment.

Table 2: Arapahoe/Douglas Performance Results PY08

SuPPlY SIDE PERFORMANCE INDICATORSCombined Performance MeasuresEntered Employment Rate 69.75%Six-Month Retention Rate 82.89%Increased Quarterly Earnings $16,550

DEMAND SIDE PERFORMANCE INDICATORSEconomic Impact: Jobs, Earnings, & SalesAdjusted Entered Employments 3,769Adjusted Jobs Change 7,208Adjusted Earnings Change (in thousands) $675,505Adjusted Sales Change (in thousands) $1,209,153

Source: Connecting Colorado 9002 Report, PY08 ARSource: EMSI Complete Employment - 2nd Quarter 2009 v. 2

Study Overview

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Cost Per PlacementTo determine the return on public investment (ROPI) of Arapahoe/Douglas Works! in PY08, the study first addressed the total cost of offering services in contrast to the number of persons who found gainful employment after receiving services.

As described earlier, the workforce center took credit for providing services and placing 3,769 customers during that time (Entered Employment). Total expenditures by Arapahoe/Douglas Works! in PY08 was $8,555,997. The result is a public investment of $2,270 for each person who entered employment.

Because of the overall quality of placements, the Jobs Multiplier for the study was 1.91. This means that the original 3,769 placements credited to Arapahoe/Douglas Works! spurred the addition of 3,439 new jobs in other industries throughout the region. Therefore, Arapahoe/Douglas Works! can be credited with a total of 7,208 persons employed. This means a public investment of $1,187 per person gaining employment.

Return on Public investment Using the earnings multiplier of 1.81 and sales multiplier of 1.79 for the region, the study determined that by helping 7,208 people find employment, Arapahoe/Douglas Works! supported $675,504,558 in adjusted regional business earnings (Earnings Change), and $1,209,153,159 in adjusted regional sales (Sales Change). See Table 4— Overall Economic Impact of ADW PY08.

To assess a total return on public investment of the workforce center in the region or on an industry-specific basis, these demand-side measures can viewed in light of the workforce center’s operating costs.

However, for purposes of this study, the total $8.5 million in costs for Arapahoe/Douglas Works! in PY08 is not sufficient to determine its total ROPI.

Other public costs, such as average unemployment, welfare and food assistance benefits paid to job-seeking customers, should also be considered in relation to the overall return on investment of the publicly-funded system.

As shown in Table 4, these costs are equivalent to nearly 11 times the PY08 budget of Arapahoe/Douglas Works! and bring the total related system costs to $94,338,232 (shown in Table 3— Cost Factors in Calculating Overall Economic Impact of Arapahoe/Douglas Works! Operations).

Nevertheless, in relation to $94.3 million in public investment to support its customers, Arapahoe/Douglas Works! yielded a return on each $1 public investment of $7.16 in increased regional business earnings, and $12.82 in increased regional business sales.

Table 5— Current Jobs, Earnings, Sales & Earnings Per Worker, shows how key regional industry sectors fared in terms of increased earnings and sales as a result of efforts by Arapahoe/Douglas Works! to match skilled workers with open positions, and its training of new workers in critical skill areas. Targeted sectors that experienced the greatest impact through Arapahoe/Douglas Works! in PY08 were finance, information technology, health care and renewable energy/conservation.

Future Outlook

Arapahoe/Douglas Works! intends to repeat this study annually to demonstrate its progress toward improving the quality of life for the region’s citizens.

The organization will continue striving for ever-greater returns on public investment by partnering with business leaders in key regional industries, other local workforce centers and K-12 and higher education systems, in order to provide a steady supply of labor with the critical skills needed to support local economy at a hiring cost. This study shows that such a strong skill-pipeline infrastructure

Study Overview

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will benefit the regional economy by increasing business earnings and sales.

Measuring these demand-side outcomes will be vital for Arapahoe/Douglas Works! to assess its success

in achieving its mission of “investing in human capital for the sustained economic vitality and competitiveness of regional businesses in a global economy.”

Arapahoe/Douglas Works! Total Expenditure PY08 8,555,997$

Additional Cost in Unemployment Insurance Payments for 3,769 Placements, PY08 (calculated at the .6545 claimant ratio for 2,467 times $8,005)

19,746,713$

Additional Cost in Unemployment Insurance Payments for 5,619 Claimants With Staff Service But Did Not Find Employment (calculated at the state average of $8,005 each)

44,980,095$

Additional Cost in Unemployment Insurance Payments for 119 PY08 TAA Participants (calculated at the national average of $310 per week times 52 weeks)

1,918,280$

Cost for 631 TANF/Colorado Works Participants Served by Arapahoe/Douglas Works! at Arapahoe County Average Cost $1,870/mo.

7,642,905$

Cost for for Employment First placements at (30 Placements/Mo. @ $280) 661,602$

Cost for 3,224 other Food Stamp Recipients Registered with Arapahoe/Douglas Works 10,832,640$

Total Public Cost for Facilitating Addition of 7,208 Jobs in Region 94,338,232$ Sources: Arapahoe/Douglas Works PY08 Fiscal Report, TANF/Colorado Works Annual Reports, Housing Colorado, CDLE Unemployment Insurance Division

Cost Factors in Calculating Overall Economic Impact of Arapahoe/Douglas Works! Operations

Table 3

Total Public Costs of Arapahoe/Douglas Works PY08 Outcomes 94,338,232$ Adjusted Increase in Regional Business Earnings 675,504,558$ Adjusted Increase in Regional Business Sales 1,209,153,159$ Return on Public Investment for $1 Spent in Increased Earnings for Regional Businesses 7.16$ Return on Public Investment for $1 Spent in Increased Sales for Regional Businesses 12.82$

Overall Economic Impact Arapahoe/Douglas Works! PY08

Source: Economic Modeling Specialists, Inc. (EMSI)

Table 4

Table 5

Denver-Aurora MSA Jobs, Earnings, Sales and Earnings Per Worker (EPW): Targeted and Non-Targeted Industry Sectors

Jobs Earnings Sales EPW

Aerospace 31,936 4,474,712,292$ 9,746,042,910$ 123,444$

Information Technology 71,764 7,750,842,512$ 29,500,533,848$ 90,082$

Bioscience 16,104 1,380,946,585$ 3,828,689,477$ 79,328$

Aviation 25,678 1,322,649,897$ 4,048,877,120$ 77,327$

Finance 190,659 11,669,969,331$ 40,338,927,037$ 70,141$

Renewable Energy & Conservation 68,892 4,361,953,699$ 11,885,169,769$ 67,937$

Homeland Security 46,761 2,543,716,910$ 5,336,816,711$ 59,914$

Healthcare 97,469 5,889,399,561$ 11,253,468,083$ 55,166$ Total Jobs, Earnings, Sales & Average EPW: Targeted Industries 549,262 39,394,190,788$ 115,938,524,955$ 72,646$ Percent Jobs, Earnings, Sales & Avg. EPW: Targeted Industries 34.01% 42.63% 43.81%

Education 33,814 1,082,984,869$ 2,098,068,625$ 31,530$

All Other Industries 1,031,785 51,937,351,888$ 146,621,353,916$ 56,253$ Total Jobs, Earnings, Sales & Average EPW: Targeted Industries 1,065,599 53,020,336,757$ 148,719,422,541$ 55,468$ Percent Jobs, Earnings, Sales & Avg. EPW: Targeted Industries 65.99% 57.37% 56.19%Total Jobs, Earnings, Sales & Average EPW: Denver-Aurora MSA 1,614,861 92,414,527,545$ 264,657,947,496$ 61,311$

Current Jobs, Earnings, Sales & Earnings Per Worker (EPW)Denver-Aurora MSA, 2nd Quarter 2009

Source: EMSI Complete Employment - 2nd Quarter 2009 v. 2

Study Overview

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mission & VisionThe mission of Arapahoe/Douglas Works! is to invest in human capital for the sustained economic vitality and competitiveness of regional businesses in a global economy. Its vision is to be aligned with Workforce Regions throughout the Denver-Aurora Metro Area, economic developers, educators, and industries as a center of excellence in developing human capital.

Key ResultsArapahoe/Douglas Works! strives to achieve four Key Results:

1. 100% employment for all those who want to work2. Exceeding all performance measures3. Preferred workforce center for employers and job seekers4. 100% customer service/satisfaction

BackgroundArapahoe/Douglas Works! exists to invest public dollars in human capital for the sustained economic vitality of the Denver-Aurora Metro Area. It is part of the national workforce development system that works

with businesses to add jobs, increase earnings and sales, and maintain global competitiveness. It adds value to the community by facilitating the connection between skilled workers and local employers at no cost to local businesses.

At this writing Arapahoe/Douglas Works! has an inventory of 118,759 workers at all levels of educational attainment and in virtually all occupations. It also collaborates closely with business partners to find the most critical skill sets that are hardest to fill and then uses public monies to provide training for otherwise qualified individuals in those skills. For example, in PY08, Arapahoe/Douglas Works! trained 209 Registered Nurses to offset a 7% local vacancy rate among area health care providers. In addition,

287 job seekers were trained in critical information technology occupations, 54 in finance, 30 in aviation and 6 as water/wastewater treatment plant operators.

Study ObjectiveThe objective of this study is to determine the economic impact Arapahoe/Douglas Works! has on the Denver-Aurora Metro Area in terms of new jobs, increased regional sector earnings, and increased regional sales, and to propose these as relevant demand-side measures of performance for the workforce system as a whole. Learning from the results of this study will help Arapahoe/Douglas Works! better align service delivery so as to improve return on investment for each public dollar spent.

A key strategic goal of both Arapahoe and Douglas County Governments is to enhance the quality of life for residents. The assumption behind this study is that by maximizing return on investment of public dollars to ensure ongoing economic vitality and sustainable global competitiveness of key regional industries does in fact enhance the quality of life for all Arapahoe County residents, as well as residents of Douglas County and the Denver-Aurora Metro Area in general.

Mission, Background, & Study Objective

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economic Base Denver-aurora metropolitan Statistical area (mSa)It is necessary to give a background overview of the regional economy for the Denver-Aurora Metro Statistical Area prior to defining targeted industries and assessing economic impact, of Arapahoe/Douglas Works! in PY08.

During the last great recession, which occurred in 1983, Colorado saw almost crippling job loss in the oil and gas industry. The state consciously determined it would absorb this loss by attracting a diverse industry base to mitigate dependence on any one sector. During subsequent decades, and into the 21st Century, Colorado became a regional transportation and finance hub. Colorado’s leading industries and those which the Arapahoe Douglas WIB has targeted as key sectors include: finance; information technology; light manufacturing, including bioscience, aviation, and aerospace; homeland security, energy, including renewable energy and conservation; transportation and warehousing; construction; and a growing health care sector. Tables 6 & 7 show the Gross Receipts of these high growth industries in PY08.

Table 6

IndustryArapahoe/ Douglas

Combined

Percent Metro Denver

Percent Colorado Denver Metro

Percent Colorado Colorado

Information 15,421,719.38$ 50.47% 36.27% 30,558,615.92$ 71.86% 42,522,399.51$ Finance and insurance 11,271,134.63$ 46.86% 33.92% 24,051,355.89$ 72.39% 33,224,930.29$ Professional and technical services 7,725,968.87$ 36.41% 22.10% 21,217,648.06$ 60.69% 34,960,256.51$ Real estate and rental and leasing 5,940,905.87$ 32.35% 20.23% 18,362,871.71$ 62.54% 29,361,822.22$ Government 5,361,505.06$ 22.40% 9.41% 23,935,290.20$ 42.03% 56,951,673.53$ Wholesale trade 4,625,878.51$ 30.69% 21.80% 15,074,045.48$ 71.05% 21,215,692.69$ Construction 4,611,682.05$ 37.71% 18.38% 12,229,605.97$ 48.73% 25,094,972.36$ Health care and social assistance 4,591,726.79$ 35.32% 19.57% 12,999,871.21$ 55.40% 23,464,466.56$ Retail trade 4,249,516.86$ 37.94% 19.16% 11,200,428.76$ 50.49% 22,183,900.56$ Manufacturing 3,950,511.92$ 12.36% 7.33% 31,958,240.44$ 59.27% 53,919,705.44$ Mining 3,637,747.34$ 27.59% 16.42% 13,185,104.60$ 59.53% 22,149,698.17$ Administrative and waste services 2,429,979.34$ 33.28% 19.39% 7,302,116.61$ 58.27% 12,530,669.14$ Management of companies and enterprises 2,060,004.07$ 29.50% 25.80% 6,982,278.31$ 87.45% 7,984,748.54$ Accommodation and food services 1,967,885.29$ 29.87% 13.54% 6,588,699.12$ 45.32% 14,538,456.43$ Other services, except public administration 1,819,585.63$ 32.00% 17.17% 5,686,407.24$ 53.66% 10,596,339.20$ Arts, entertainment, and recreation 907,933.62$ 41.09% 17.81% 2,209,728.26$ 43.35% 5,096,838.71$ Transportation and warehousing 875,806.80$ 9.73% 6.71% 9,005,148.27$ 69.01% 13,049,750.43$ Educational services 622,486.44$ 29.77% 20.50% 2,091,315.88$ 68.88% 3,036,006.81$ Utilities 281,534.50$ 9.91% 4.50% 2,841,766.30$ 45.42% 6,256,844.85$ Agriculture, forestry, fishing and hunting 146,341.83$ 31.35% 2.19% 466,768.03$ 6.98% 6,691,497.87$

Totals 82,499,854.81$ 31.98% 18.55% 257,947,306.26$ 57.99% 444,830,669.83$


Gross Receipts (in Thousands)

Table 7

IndustryArapahoe/ Douglas

Combined

Percent Metro Denver

Percent Colorado Denver Metro

Percent Colorado Colorado

Retail trade 58,043 38.94% 18.58% 149,054 47.70% 312,456Professional and technical services 55,933 36.90% 20.83% 151,574 56.45% 268,524Government 48,459 26.94% 11.35% 179,904 42.13% 427,047Health care and social assistance 48,175 34.65% 17.50% 139,029 50.51% 275,262Finance and insurance 46,679 46.68% 29.23% 100,001 62.63% 159,670Construction 37,545 36.38% 16.67% 103,201 45.82% 225,225Administrative and waste services 34,329 34.99% 19.21% 98,124 54.90% 178,736Accommodation and food services 32,110 29.92% 13.41% 107,325 44.81% 239,497Real estate and rental and leasing 32,026 39.72% 19.13% 80,628 48.16% 167,412Other services, except public administration 26,225 34.93% 17.20% 75,074 49.25% 152,429Information 26,078 48.23% 29.63% 54,073 61.43% 88,018Wholesale trade 19,900 27.29% 18.19% 72,929 66.66% 109,398Manufacturing 12,236 17.40% 8.24% 70,337 47.35% 148,540Arts, entertainment, and recreation 12,159 38.10% 14.92% 31,914 39.15% 81,509Transportation and warehousing 9,886 16.00% 10.24% 61,788 64.02% 96,515Educational services 9,274 27.68% 16.40% 33,503 59.25% 56,544Management of companies and enterprises 8,905 36.36% 28.41% 24,488 78.14% 31,340Mining 6,395 40.65% 15.01% 15,731 36.91% 42,614Agriculture, forestry, fishing and hunting 1,839 34.53% 3.42% 5,325 9.90% 53,768Utilities 486 12.54% 5.44% 3,876 43.39% 8,932

Totals 526,682 33.81% 16.86% 1,557,876.13 49.88% 3,123,436.06


Jobs

Economic Base

12


In the United States, industries are classified with NAICS, which stands for North American Industry Classification System. NAICS uses up to six digits to classify industries from the two-digit macro level to the six-digit micro level. The Gross Receipts (total revenue before deducting expenses) and Jobs tables in this section were done at the (two-digit NAICS) macro level to present the reader with a high level view of the region’s economy. Together, in sales, the Information and

Finance sectors make up 32% of gross receipts in the two-county region and almost 50% of the gross receipts in the Denver-Aurora Metro Area.

Arapahoe/Douglas Works! serves Arapahoe and Douglas counties, which make up the southeastern part of the Denver metro area. This metropolitan region, for purposes of this study, also includes Adams, Broomfield, Denver and Jefferson counties. Commuter patterns obtained from the U.S. Census Bureau show that the labor shed for the Denver-Aurora Metro Area stretches from the Wyoming border along the front range of the Rocky Mountains to

southern Douglas County. For this reason, it was determined that an in depth exploration of the region’s economic base would necessarily be meaningless unless it included the entire metropolitan area. The map to the left shows the relationship between the Arapahoe/Douglas workforce region and the Denver-Aurora MSA at large.

Table 5 shows the relative strength of each targeted sector in the Denver-Aurora Metro Area in terms of jobs, earnings and sales. The targeted sectors in it have been analyzed, and data compiled at the micro (six-digit NAICS) level. Such an approach gives a horizontal view of each sector, from manufacturing to consumer sale to regulatory compliance. Again, note the relative power of the Finance sector. Targeted industries are more thoroughly defined at the micro (six-digit NAICS) level later in this study, under the section on Impact by Industry Sector. Notice the EPW is significantly higher for industry sectors targeted by the Arapahoe/Douglas Workforce Investment Board. This is by design, as job placements within these key industry sectors have a greater aggregate effect on the regional economy.

Table 5


Jobs Earnings Sales EPW

Aerospace 31,936 4,474,712,292$ 9,746,042,910$ 123,444$

Information Technology 71,764 7,750,842,512$ 29,500,533,848$ 90,082$

Bioscience 16,104 1,380,946,585$ 3,828,689,477$ 79,328$

Aviation 25,678 1,322,649,897$ 4,048,877,120$ 77,327$

Finance 190,659 11,669,969,331$ 40,338,927,037$ 70,141$

Renewable Energy & Conservation 68,892 4,361,953,699$ 11,885,169,769$ 67,937$

Homeland Security 46,761 2,543,716,910$ 5,336,816,711$ 59,914$

Healthcare 97,469 5,889,399,561$ 11,253,468,083$ 55,166$ Total Jobs, Earnings, Sales & Average EPW: Targeted Industries 549,262 39,394,190,788$ 115,938,524,955$ 72,646$ Percent Jobs, Earnings, Sales & Avg. EPW: Targeted Industries 34.01% 42.63% 43.81%

Education 33,814 1,082,984,869$ 2,098,068,625$ 31,530$

All Other Industries 1,031,785 51,937,351,888$ 146,621,353,916$ 56,253$ Total Jobs, Earnings, Sales & Average EPW: Targeted Industries 1,065,599 53,020,336,757$ 148,719,422,541$ 55,468$ Percent Jobs, Earnings, Sales & Avg. EPW: Targeted Industries 65.99% 57.37% 56.19%Total Jobs, Earnings, Sales & Average EPW: Denver-Aurora MSA 1,614,861 92,414,527,545$ 264,657,947,496$ 61,311$

Current Jobs, Earnings, Sales & Earnings Per Worker (EPW)Denver-Aurora MSA, 2nd Quarter 2009


Map of Arapahoe & Douglas Counties

Arapahoe

Douglas

Economic Base

13


The study was conducted using the following methodology:

1. Data was gathered to answer the question of how much more likely a person using the Arapahoe/Douglas Works! Workforce Center is to find employment, compared to someone who merely registers in Connecting Colorado (web registrants) but does not use any workforce center services.

2. Define and assess relative economic power of targeted industry sectors in the Denver-Aurora Metro Area using data supplied by Economic Modeling Specialists, Inc. (EMSI).

3. Determine total public monies spent on members of the public who gained employment in PY08 through Arapahoe/Douglas Works! and other agencies by obtaining average cost per individual in Colorado for unemployment payments, TANF and other community assistance such as housing and food stamps.

4. Obtain a frequency list of each job added in PY08 categorized by six-digit NAICS code from the Colorado Department of Labor and Employment (CDLE).

5. Determine the actual number of jobs added for which Arapahoe/Douglas Works! can legitimately take credit by dividing the number who received on-site staff assistance and using the resultant multiplier to adjust totals.

6. Use the EMSI economic impact modeling engine to assess impact by sector on jobs and earnings in the labor shed served in part by Arapahoe/Douglas Works, which makes up the two southeastern-most counties in the Denver-Aurora Metro Area as defined in this study.

7. Adjust jobs added and earnings by service multiplier.

8. Determine overall economic impact by dividing total public monies spent on jobs-added population into adjusted regional business earnings and sales.

9. Determine overall economic impact by sector by dividing proportional amount of public monies that went toward added jobs in each industry sector into adjusted earnings growth.

10. Determine economic impact for jobs added and earnings growth in each sector by dividing the proportion of public monies spent on the adjusted population entering jobs in the sector, and divide this number into the sector’s adjusted earnings growth.

11. Determine the economic impact of placements in each program (Workforce Investment Act, Youth, Temporary Assistance to Needy Families/Colorado Works, Employment First, Child Support Enforcement) by dividing the non-adjusted earnings growth by the total amount of public dollars spent on that program’s population.

11. Survey longer-term, less tangible benefits to the community.

12. Conclude by identifying opportunities for systemic improvements.

13. Provide source documentation.

Study Methodology

14


Overall Regional Economic ImpactTables 3 and 4 show the overall economic impact of Arapahoe/Douglas Works! on the Denver-Aurora Metro Area in PY08.

The first concern of Arapahoe/Douglas Works! in this study was to calculate all public costs relevant to facilitating the addition of 7,208 new regional jobs in PY08. Table 3 shows that costs were calculated not only for Arapahoe/Douglas Works! PY08 expenses, but for unemployment claimants and Trade Adjustment Act participants who were served but did not enter employment during PY08.

This study suggests that Arapahoe/Douglas Works!, as well as other workforce regions throughout the state and nation, pay substantial dividends to their communities in terms of jobs added, business earnings growth and sales. It is replicable in any workforce region in the United States or its territories, provided they can access an economic modeling data engine such as EMSI.

Table 4

Total Public Costs of Arapahoe/Douglas Works PY08 Outcomes 94,338,232$ Adjusted Increase in Regional Business Earnings 675,504,558$ Adjusted Increase in Regional Business Sales 1,209,153,159$ Return on Public Investment for $1 Spent in Increased Earnings for Regional Businesses 7.16$ Return on Public Investment for $1 Spent in Increased Sales for Regional Businesses 12.82$

Overall Economic Impact Arapahoe/Douglas Works! PY08

Source: Economic Modeling Specialists, Inc. (EMSI)

Table 3

Arapahoe/Douglas Works! Total Expenditure PY08 8,555,997$

Additional Cost in Unemployment Insurance Payments for 3,769 Placements, PY08 (calculated at the .6545 claimant ratio for 2,467 times $8,005)

19,746,713$

Additional Cost in Unemployment Insurance Payments for 5,619 Claimants With Staff Service But Did Not Find Employment (calculated at the state average of $8,005 each)

44,980,095$

Additional Cost in Unemployment Insurance Payments for 119 PY08 TAA Participants (calculated at the national average of $310 per week times 52 weeks)

1,918,280$

Cost for 631 TANF/Colorado Works Participants Served by Arapahoe/Douglas Works! at Arapahoe County Average Cost $1,870/mo.

7,642,905$

Cost for for Employment First placements at (30 Placements/Mo. @ $280) 661,602$

Cost for 3,224 other Food Stamp Recipients Registered with Arapahoe/Douglas Works 10,832,640$

Total Public Cost for Facilitating Addition of 7,208 Jobs in Region 94,338,232$ Sources: Arapahoe/Douglas Works PY08 Fiscal Report, TANF/Colorado Works Annual Reports, Housing Colorado, CDLE Unemployment Insurance Division

Cost Factors in Calculating Overall Economic Impact of Arapahoe/Douglas Works! Operations

15


Table 8 shows the overall economic impact of Arapahoe/Douglas Works! by key regional industry sectors in the Denver-Aurora Metro Area. In 2004, the Arapahoe/Douglas Workforce Investment Board targeted finance, information technology, biosciences/healthcare, and aviation/aerospace/homeland security for outreach based on data supplied by the Southeast Business Partnership and CDLE.

The following notes are common to all tables in this section:• The ‘c’ in the Adjusted Jobs Added column for medicinal and botanical manufacturing means data on

number of jobs added was suppressed for confidentiality

• Some sub-sectors show zero jobs added, yet show increases in earnings and sales. This is because of the inter-relationship of these sub-sectors with other sectors where jobs were added

Biosciences & Health careTables 1 and 9 on the following page show jobs added, earnings and sales facilitated by Arapahoe/Douglas Works! for the biosciences and health care sectors in PY08. The reader will notice that each of the larger sectors is made up of numerous sub-sectors, which are industries in their own right.

The level of support in PY08 for the bioscience and health care sector can be seen in Table 10, which shows the number of Individual Training Accounts that Arapahoe/Douglas Works! issued for occupations supporting that sector. The reader should note that Arapahoe/Douglas Works! encourages participants in its training programs to choose occupations that support key regional sectors by allowing a greater amount of tuition assistance ($4,000) for those occupations.

Impact by Industry Sector

Table 8


Adjusted Jobs Added

Adjusted Earnings Increase (K)

Adjusted Sales (K)Sector

EPW (K)

Bioscience 85 7,707$ 13,796$ 54$ Healthcare 919 51,257$ 91,749$ 55$ Aerospace 88 9,625$ 17,229$ 95$ Aviation 149 9,112$ 16,311$ 84$ Homeland Security 287 11,868$ 21,245$ 54$ Information Technology 571 61,310$ 109,744$ 93$ Finance 1,507 88,548$ 158,501$ 67$ Renewable Energy & Conservation 522 31,048$ 55,577$ 70$

Total Jobs, Earnings, Sales & Average EPW: Targeted Industries 4,128 270,476$ 484,152$ 69$ Percent Jobs, Earnings, Sales & Avg. EPW: Targeted Industries 57.27% 40.04% 40.04%Education 182 5,510$ 9,863$ 32$ All Other Industries 2,898 399,518$ 715,138$ 56$

Total Jobs, Earnings, Sales & Average EPW: Targeted Industries 3,080 405,028$ 725,001$ 55$ Percent Jobs, Earnings, Sales & Avg. EPW: Targeted Industries 42.73% 59.96% 59.96%Total Jobs, Earnings, Sales & Average EPW: Denver-Aurora MSA 7,208 675,505$ 1,209,153$ 63$

Increases in Jobs, Regional Business Earnings and Regional Business Sales Facilitated by Arapahoe/Douglas Works! in PY08


16


Table 10

Table 1 Table 9

Number Onet Occupation Title

2 11911100 Medical and Health Services Managers6 19203100 Chemists1 29101100 Chiropractors2 29106999 Physicians and Surgeons, All Other

209 29111100 Registered Nurses4 29112300 Physical Therapists9 29112600 Respiratory Therapists1 29201100 Medical and Clinical Laboratory Technologists1 29201200 Medical and Clinical Laboratory Technicians5 29202100 Dental Hygienists7 29203400 Radiologic Technologists and Technicians8 29203401 Radiologic Technologists 1 29203402 Radiologic Technicians

20 29204100 Emergency Medical Technicians and Paramedics8 29205200 Pharmacy Technicians1 29205400 Respiratory Therapy Technicians6 29205500 Surgical Technologists3 29205600 Veterinary Technologists and Technicians

86 29206100 Licensed Practical and Licensed Vocational Nurses12 29207100 Medical Records and Health Information Technicians

1 29208100 Opticians, Dispensing10 29909999 Healthcare Practitioners and Technical Workers, All Other2 31101100 Home Health Aides

41 31101200 Nursing Aides, Orderlies and Attendants2 31202100 Physical Therapist Assistants3 31901100 Massage Therapists

13 31909100 Dental Assistants12 31909200 Medical Assistants2 31909300 Medical Equipment Preparers9 31909400 Medical Transcriptionists1 31909500 Pharmacy Aides3 31909600 Veterinary Assistants and Laboratory Animal Caretakers4 31909999 Healthcare Support Workers, All Other1 43601300 Medical Secretaries1 49906200 Medical Equipment Repairers

497

Source: Connecting Colorado Special Report (JOLS)

Individual Training Accounts in Bioscience & Healthcare Occupations PY08

Total ITAs Issued in Bioscience and Healthcare Occupations

NAICSAdjusted

Jobs Added

Adjusted Increased

Earnings (K)


EPW (K)

622110 General medical and surgical hospitals 205 11,849$ 21,210$ 61$ 621111 Offices of physicians, except mental health 171 15,065$ 26,966$ 93$ 623110 Nursing care facilities 127 4,652$ 8,327$ 39$ 621610 Home health care services 100 2,807$ 5,025$ 30$ 621210 Offices of dentists 84 4,600$ 8,235$ 58$ 622310 Other hospitals 27 1,747$ 3,126$ 68$ 621491 HMO medical centers 26 2,439$ 4,366$ 101$ 621399 Offices of miscellaneous health practitioners 22 718$ 1,286$ 34$ 621991 Blood and organ banks 19 924$ 1,654$ 50$ 621420 Outpatient mental health centers 19 609$ 1,091$ 34$ 621511 Medical laboratories 18 941$ 1,685$ 56$ 621340 Offices of specialty therapists 17 730$ 1,306$ 45$ 621910 Ambulance services 13 555$ 994$ 45$ 621310 Offices of chiropractors 12 471$ 844$ 40$ 621330 Offices of mental health practitioners 11 411$ 735$ 39$ 621512 Diagnostic imaging centers 8 465$ 833$ 61$ 621320 Offices of optometrists 7 347$ 621$ 49$ 621493 Freestanding emergency medical centers 6 442$ 792$ 76$ 621492 Kidney dialysis centers 6 433$ 776$ 77$ 622210 Psychiatric and substance abuse hospitals 5 210$ 376$ 42$ 621112 Offices of mental health physicians 5 288$ 516$ 67$ 621999 Miscellaneous ambulatory health care services 3 228$ 408$ 71$ 621498 All other outpatient care centers 3 188$ 336$ 61$ 621410 Family planning centers 2 49$ 87$ 25$ 621391 Offices of podiatrists 2 87$ 155$ 57$

Adjusted Healthcare Impact 919 51,257$ 91,749$ 55$

Healthcare Sector


NAICSAdjusted

Jobs Added

Adjusted Increased

Earnings (K)


EPW (K)

423450 Medical equipment merchant wholesalers 26 3,036$ 5,435$ 123$ 339112 Surgical and medical instrument manufacturing 20 1,679$ 3,006$ 90$ 541710* Physical, engineering and biological research (33%) 9 827$ 1,481$ 97$ 334510 Electromedical and electrotherapeutic apparatus manufacturing 6 513$ 919$ 84$ 333319 Other commercial and service machinery manufacturing 6 343$ 613$ 61$ 325412 Pharmaceutical preparation manufacturing 5 614$ 1,099$ 124$ 339116 Dental laboratories 4 205$ 367$ 49$ 339113 Surgical appliance and supplies manufacturing 3 261$ 468$ 82$ 339114 Dental equipment and supplies manufacturing 3 87$ 155$ 35$ 334516 Analytical laboratory instrument manufacuring 1 45$ 81$ 57$ 339115 Ophthalmic goods manufacturing 1 20$ 36$ 31$ 325413 In-vitro diagnostic substance manufacturing 0 17$ 31$ 119$ 333298 All other industrial machinery manufacturing 0 4$ 8$ 39$ 339111 Laboratory apparatus and furniture manufacturing 0 3$ 6$ 45$ 325414 Other biological product manufacturing 0 5$ 9$ 131$ 334517 Irradiation apparatus manufacturing 0 3$ 6$ 108$ 325411 Medicinal and botanical manufacturing c 43$ 76$ 90$

Biosciences Sector

Source: EMSI Complete Employment - 2nd Quarter 2009 v. 2*This NAICS Code has been broken into two separate codes

Total Biosciences 85 7,707 13,796 54$


17


aerospace, aviation & Homeland SecurityTables 11 through 13 show the economic impact facilitated by Arapahoe/Douglas Works! for the aerospace, aviation & homeland security sectors.

Table 11

Table 12

Table 13


NAICSAdjusted

Jobs Added

Adjusted Increased

Earnings (K)


EPW (K)

541690 Other technical consulting services 21 1,435$ 2,569$ 71$ 517510 Cable and other program distribution 15 868$ 1,554$ 62$ 336414 Guided missile and space vehicle manufacturing 12 4,160$ 7,447$ 352$ 541710 Physical, engineering and biological research (33%) 9 827$ 1,481$ 97$ 541370 Other surveying and mapping services 7 403$ 722$ 61$ 541380 Testing laboratories 5 288$ 516$ 61$ 334513 Industrial process variable instruments 4 271$ 486$ 74$ 517410 Satellite telecommunications 3 297$ 531$ 99$ 332313 Plate work manufacturing 3 173$ 310$ 64$ 541330 Engineering services (2.5%) 3 273$ 489$ 102$ 334519 Other measuring and controlling device manufacturing 2 135$ 241$ 77$ 334511 Search, detection, and navigation instruments 1 267$ 478$ 192$ 334220 Broadcast and wireless communications equipment 1 123$ 219$ 113$ 332420 Metal tank, heavy gauge, manufacturing 1 44$ 79$ 53$ 332410 Power boiler and heat exchanger manufacturing 0 1$ 2$ 65$ 333314 Optical instrument and lens manufacturing c 29$ 52$ 62$ 333414 Heating equipment, except warm air furnaces c 2$ 3$ 48$ 334514 Totalizing fluid meters and counting devices c 28$ 49$ 59$

Total Aerospace 88 9,625 17,229 95$

Aerospace Sector


NAICSAdjusted

Jobs Added

Adjusted Increased

Earnings (K)


EPW (K)

481111 Scheduled passenger air transportation 83 4,864$ 8,706$ 62$ 488190 Other support activities for air transportation 20 1,032$ 1,847$ 54$ 488119 Other airport operations 18 623$ 1,115$ 37$ 336411 Aircraft manufacturing 16 1,622$ 2,903$ 110$ 541330 Engineering services (5%) 6 547$ 978$ 102$ 481211 Nonscheduled air passenger chartering 3 255$ 457$ 81$ 481212 Nonscheduled air freight chartering 1 73$ 130$ 56$ 532411 Transportation equipment rental and leasing 1 35$ 63$ 38$ 336413 Other aircraft parts and equipment 1 32$ 58$ 50$ 481112 Scheduled freight air transportation 0 8$ 14$ 74$ 481219 Other nonscheduled air transportation 0 9$ 17$ 144$ 488111 Air traffic control 0 11$ 21$ 191$ 336412 Aircraft engine and engine parts manufacturing c 0$ 1$ 98$

Total Aviation 149 9,112 16,311 84$

Aviation Sector


NAICSAdjusted

Jobs Added

Adjusted Increased

Earnings (K)


EPW (K)

561612 Security guards and patrol services 115 2,807$ 5,025$ 26$ 238212 Nonresidential electrical contractors 68 3,686$ 6,598$ 57$ 561621 Security systems services, except locksmiths 44 1,980$ 3,544$ 47$ 930000 Local government (Law Enforcement, Firefighting, Nat'l Security) 31 1,588$ 2,843$ 54$ 423610 Elec. equip. and wiring merchant wholesalers 15 1,069$ 1,914$ 76$ 561613 Armored car services 7 385$ 689$ 55$ 561611 Investigation services 4 280$ 501$ 74$ 561622 Locksmiths 2 73$ 131$ 46$

Total Homeland Security 287 11,868 21,245 54$

Homeland Security Sector


18


The level of support in PY08 for the aerospace, aviation and homeland security sectors can be seen in Table 14, which shows the number of Individual Training Accounts that Arapahoe/Douglas Works! issued for occupations supporting that sector.

information TechnologyTable 15 shows the economic impact facilitated by Arapahoe/Douglas Works! for the information technology sector. The level of support in PY08 for the information technology sector can be seen in Table 16, which shows the number of Individual Training Accounts that Arapahoe/Douglas Works! issued for occupations supporting that sector.

The reader should note that many occupations within the information technology sector are transferable to most, if not all, other industry sectors. Information technology is an enabling set of occupations. According to the U.S. Bureau of Labor Statistics, over 90% of individuals in computer related occupations work outside the information technology industry.

Table 14


Number Onet Occupation Title1 11904100 Engineering Managers5 17102100 Cartographers and Photogrammetrists2 17207100 Electrical Engineers7 17214100 Mechanical Engineers4 17301101 Architectural Drafters2 17302200 Civil Engineering Technicians1 15101100 Computer and Information Scientists, Research1 33302100 Detectives and Criminal Investigators2 33302103 Criminal Investigators and Special Agents3 33305101 Police Patrol Officers5 47211100 Electricians1 49209200 Electric Motor, Power Tool and Related Repairers1 49209300 Electrical and Electronics Installers and Repairers7 49301100 Aircraft Mechanics and Service Technicians

14 49301101 Airframe and Power Plant Mechanics1 49904200 Maintenance and Repair Workers, General4 49909999 Installation, Maintenance and Repair Workers, All Other2 51404100 Machinists2 51412100 Welders, Cutters, Solderers and Brazers1 51412200 Welding, Soldering and Brazing Machine Setters, Operators and Repairers7 53201200 Commercial Pilots2 53202200 Airfield Operations Specialists

75

Individual Training Accounts in Aerospace, Aviation & Homeland Security Occupations PY08

Total ITAs Issued in Aerospace, Aviation & Homeland Security Occupations


19


FinanceTable 17 on the following page shows the economic impact facilitated by Arapahoe/Douglas Works! for the finance sector. It is important to note that the Denver-Aurora Metropolitan Area, particularly in southeastern Denver, southern Arapahoe County and northern Douglas County, is a regional hub for this key industry sector. Though the recent economic downturn has had some effect on finance, the sector is still strong.

Arapahoe/Douglas Works! had the greatest effect on this sector, facilitating the addition of over 1,500 new jobs in the Denver-Aurora Metropolitan Area in PY08, which increased earnings by $88.5 million and sales by $158.5 million.

Table 15


NAICSAdjusted

Jobs Added

Adjusted Increased

Earnings (K)


EPW (K)

517110 Wired telecommunications carriers 220 27,527.2$ 49,274$ 132$ 541512 Computer systems design services 106 9,600.0$ 17,184$ 95$ 541511 Custom computer programming services 64 5,942.0$ 10,636$ 98$ 518210 Data processing and related services 57 5,715.9$ 10,231$ 106$ 511210 Software publishers 30 3,809.6$ 6,819$ 132$ 423430 Computer and software merchant wholesalers 23 3,092.9$ 5,536$ 140$ 541519 Other computer related services 23 1,869.4$ 3,346$ 85$ 443120 Computer and software stores 9 666.7$ 1,193$ 77$ 334412 Bare printed circuit board manufacturing 8 344.8$ 617$ 44$ 425110 Business to business electronic markets 7 629.9$ 1,127$ 98$ 518111 Internet service providers 5 490.4$ 878$ 101$ 334413 Semiconductors and related device manufacturing 4 360.3$ 645$ 94$ 334611 Software reproducing 4 486.8$ 871$ 135$ 541513 Computer facilities management services 4 238.5$ 427$ 71$ 334111 Electronic computer manufacturing 3 191.4$ 343$ 79$ 334418 Printed circuit assembly manufacturing 2 133.7$ 239$ 71$ 518112 Web search portals 1 58.5$ 105$ 54$ 334119 Other computer peripheral equipment mfg. 1 97.6$ 175$ 111$ 334112 Computer storage device manufacturing 0 30.2$ 54$ 64$ 333295 Semiconductor machinery manufacturing c 0.5$ 1$ 63$ 334417 Electronic connector manufacturing c 23.1$ 41$ --

Total Information Technology 571 61,310 109,744 93$

Information Technology Sector


Number Onet Occupation Title26 11302100 Computer and Information Systems Managers

1 15101100 Computer and Information Scientists, Researchers4 15102100 Computer Programmers

23 15103100 Computer Software Engineers, Applications24 15103200 Computer Software Engineers, Systems81 15104100 Computer Support Specialists

6 15105100 Computer Systems Analysts48 15106100 Database Administrators80 15107100 Network and Computer Systems Administrators

7 15108100 Network Systems and Data Communication Analysts13 15109999 Computer Specialists, All Other

1 15301100 Mathematical Technicians2 49201100 Computer, Automated Teller and Office Machine Repairers

316

Individual Training Accounts in Information Technology Occupations PY08

Total ITAs Issued in Information Technology Occupations

Table 16


20


NAICSAdjusted

Jobs Added

Adjusted Increased

Earnings (K)


EPW (K)

531210 Offices of real estate agents and brokers 150 2,979$ 5,332$ 21$ 524210 Insurance agencies and brokerages 117 6,571$ 11,762$ 59$ 531110 Lessors of residential buildings 106 4,427$ 7,925$ 44$ 522292 Real estate credit 94 8,994$ 16,100$ 101$ 531311 Residential property managers 75 2,987$ 5,347$ 42$ 541219 Other accounting services 71 3,141$ 5,623$ 46$ 521110 Monetary authorities - central bank 71 5,652$ 10,116$ 83$ 531390 Other activities related to real estate 65 1,526$ 2,731$ 25$ 524126 Direct property and casualty insurers 55 4,259$ 7,623$ 82$ 522110 Commercial banking 52 3,475$ 6,220$ 71$ 541211 Offices of certified public accountants 50 3,710$ 6,640$ 78$ 524113 Direct life insurance carriers 45 4,449$ 7,964$ 104$ 523920 Portfolio management 45 4,948$ 8,856$ 117$ 522320 Financial transaction processing and clearing 44 3,061$ 5,479$ 74$ 524114 Direct health and medical insurance carriers 42 3,195$ 5,719$ 80$ 531120 Lessors of nonresidential buildings 40 2,079$ 3,721$ 55$ 523120 Securities brokerage 32 3,627$ 6,492$ 121$ 522310 Mortgage and nonmortgage loan brokers 31 1,752$ 3,137$ 60$ 522390 Other credit intermediation activities 31 1,350$ 2,417$ 46$ 522130 Credit unions 26 1,235$ 2,212$ 51$ 541213 Tax preparation services 25 549$ 982$ 23$ 523930 Investment advice 25 1,328$ 2,377$ 57$ 531312 Nonresidential property managers 23 1,271$ 2,275$ 58$ 522291 Consumer lending 19 1,093$ 1,956$ 62$ 541214 Payroll services 19 1,297$ 2,322$ 74$ 531130 Miniwarehouse and self-storage unit operators 15 387$ 693$ 27$ 531190 Lessors of other real estate property 13 375$ 670$ 30$ 524292 Third party administration of insurance funds 12 570$ 1,020$ 49$ 522210 Credit card issuing 11 912$ 1,633$ 87$ 525910 Open-end investment funds 11 1,152$ 2,063$ 116$ 524298 All other insurance related activities 10 638$ 1,142$ 69$ 531320 Offices of real estate appraisers 10 233$ 417$ 25$ 522220 Sales financing 9 615$ 1,101$ 74$ 524127 Direct title insurance carriers 8 612$ 1,096$ 81$ 524291 Claims adjusting 8 411$ 736$ 56$ 523910 Miscellaneous intermediation 7 487$ 872$ 71$ 523110 Investment banking and securities dealing 7 1,073$ 1,920$ 162$ 523999 Miscellaneous financial investment activities 5 266$ 477$ 52$ 523991 Trust, fiduciary, and custody activities 5 309$ 553$ 61$ 522298 All other nondepository credit intermediation 5 307$ 549$ 65$ 522120 Savings institutions 4 194$ 348$ 48$ 525110 Pension funds 3 191$ 342$ 58$ 525190 Other insurance funds 3 289$ 517$ 88$ 524128 Other direct insurance carriers 3 227$ 406$ 80$ 525120 Health and welfare funds 2 37$ 67$ 21$ 525920 Trusts, estates, and agency accounts 1 85$ 152$ 82$ 525930 Real estate investment trusts 1 12$ 22$ 21$ 523130 Commodity contracts dealing 1 72$ 128$ 135$ 522190 Other depository credit intermediation 1 36$ 64$ 73$ 525990 Other financial vehicles 0 30$ 53$ 77$ 524130 Reinsurance carriers 0 34$ 60$ 101$ 522294 Secondary market financing 0 24$ 43$ 177$ 523140 Commodity contracts brokerage 0 9$ 15$ 71$ 523210 Securities and commodity exchanges 0 7$ 12$ 88$ 522293 International trade financing c 0$ 0$ 391$

Total Finance 1,507 88,548 158,501 67$

Finance Sector


Table 17


21


The level of support in PY08 for the finance sector can be seen in Table 18, which shows the number of Individual Training Accounts that Arapahoe/Douglas Works! issued for occupations supporting that sector.

The reader should note that many occupations within the finance sector are transferable to most, if not all, other industry sectors. All businesses in all industries depend on persons skilled in financial occupations in their day-to-day operations. Thus, occupations supporting the finance sector are also enabling occupations.

Number Onet Occupation Title1 13104102 Licensing Examiners and Inspectors

12 13111100 Management Analysts8 13119999 Business Operations Specialists, All Other5 13201100 Accountants and Auditors

18 13201101 Accountants 2 13205100 Financial Analysts1 13205200 Personal Financial Advisors3 13207200 Loan Officers4 13209999 Financial Specialists, All Other3 43904100 Insurance Claims and Policy Processing Clerks1 43904101 Insurance Claims Clerks

58

Individual Training Accounts in Finance Occupations PY08

Total ITAs Issued in Finance Occupations

Table 18


22


Renewable energy & ConservationThe renewable energy and conservation sector is included in this study because of increased national emphasis on eventual energy independence. When a new industry sector is targeted, several questions must be asked. First, how far up- and downstream should one go in defining the sector? What industry sub-sectors should go into the mix? What parts of the new sector will evolve from existing sub-sectors, and what parts will emerge as new sub-sectors? What occupations are critical to the new sector?

Many regions around Colorado are working together, with input from economic developers, business leaders and educators, to provide such definition. A consensus has been built around the sub-sectors listed in Table 19; however, it should be noted that only a percentage of the business conducted in each of the sub-sectors applies to renewable energy or conservation. Also, as the sector evolves, more sub-sectors may be added or subtracted. The renewable energy and conservation sector, as now defined in Colorado, can be split into seven major sub-sectors:

1. Utilities (evolving)

2. Construction (evolving)

3. Manufacturing (emergent)

4. Wholesale Merchants (evolving)

5. Professional, Technical and Scientific (evolving)

6. Waste Management and Remediation (evolving)

7. Urban Transit (emergent)

The utilities sub-sector is comprised of power generation and distribution, water distribution and wastewater management. Recently, Xcel Energy has worked to create a ‘smart energy grid’ in Boulder, Colorado (northwest of Arapahoe and Douglas Counties). This project has been carefully watched throughout the nation for two reasons. First, an intelligent power grid enhances national security by enhancing power distribution infrastructure, so that an outage in any one area can be compensated for and power easily re-routed from other areas. Second, at the consumer level, such a grid offers much more control over how much energy is used, and when. Occupations critical to this sector are power plant (and water/wastewater plant) operators, engineers, electricians and a variety of installation, maintenance and repair skill sets. The sub-sector is evolving because a power grid already exists; as the system ‘greens’, or becomes more energy efficient, skilled workers will evolve new proficiencies.

Both residential and commercial construction are already well on the way in evolving toward ‘green.’ The new LEEDS certification for commercial buildings requires only a modification of most skills in existing trades. Both residential and commercial demand for more environmentally friendly buildings is being driven by significant tax breaks. Building inspectors are now evolving skills toward energy audits as well, and all skilled trades are developing the skills they need to meet ‘green’ demand.


23


NAICSAdjusted

Jobs Added

Adjusted Increased

Earnings (K)


EPW (K)

236220 Commercial building construction 61 4,423$ 7,917$ 77$ 238222 Nonresidential plumbing and HVAC contractors 57 3,201$ 5,730$ 59$ 238221 Residential plumbing and HVAC contractors 46 2,042$ 3,654$ 47$ 485113 Bus and other motor vehicle transit systems 32 1,094$ 1,958$ 36$ 238312 Nonresidential drywall contractors 30 972$ 1,740$ 34$ 236118 Residential remodelers 27 1,593$ 2,852$ 62$ 236115 New single-family general contractors 25 2,202$ 3,942$ 92$ 237110 Water and sewer system construction 22 1,290$ 2,310$ 61$ 562910 Remediation services 20 1,231$ 2,204$ 66$ 562111 Solid waste collection 18 1,060$ 1,898$ 62$ 238311 Residential drywall contractors 17 495$ 886$ 31$ 541620 Environmental consulting services 15 894$ 1,601$ 63$ 221122 Electric power distribution 13 1,441$ 2,579$ 114$ 485111 Mixed mode transit systems 13 587$ 1,052$ --238292 Other nonresidential building equipment contractors 13 870$ 1,558$ 72$ 541310 Architectural services 10 708$ 1,268$ 72$ 236116 New multifamily general contractors 10 1,004$ 1,798$ 109$ 238992 All other nonresidential trade contractors 10 318$ 569$ 35$ 221320 Sewage treatment facilities 8 560$ 1,003$ 72$ 333415 AC, refrigeration, and forced air heating 6 289$ 517$ 53$ 332321 Metal window and door manufacturing 6 249$ 446$ 46$ 562211 Hazardous waste treatment and disposal 5 651$ 1,166$ 134$ 321911 Wood window and door manufacturing 5 246$ 441$ 52$ 485999 All other ground passenger transportation 5 100$ 179$ 21$ 236117 New housing operative builders 5 479$ 858$ 110$ 423730 HVAC equip. merchant wholesalers 4 367$ 657$ 86$ 335911 Storage battery manufacturing 4 227$ 406$ 59$ 335129 Other lighting equipment manufacturing 4 236$ 422$ 64$ 236210 Industrial building construction 3 222$ 398$ 74$ 423330 Roofing and siding merchant wholesalers 3 203$ 364$ 72$ 238192 Other nonresidential exterior contractors 3 111$ 198$ 47$ 423390 Other const. material merchant wholesalers 2 108$ 192$ 54$ 238991 All other residential trade contractors 2 63$ 113$ 32$ 562212 Solid waste landfill 2 150$ 268$ 80$ 238191 Other residential exterior contractors 2 82$ 147$ 44$ 221310 Water supply and irrigation systems 2 419$ 749$ 228$ 335122 Nonresidential electric lighting fixture mfg. 2 74$ 133$ 47$ 221330 Steam and air-conditioning supply 2 244$ 437$ 156$ 562920 Materials recovery facilities 2 57$ 102$ 38$ 485210 Interurban and rural bus transportation 1 53$ 95$ 38$ 562998 Miscellaneous waste management services 1 69$ 124$ 51$ 221121 Electric bulk power transmission and control 1 114$ 204$ 110$ 562991 Septic tank and related services 1 52$ 94$ 57$ 541350 Building inspection services 1 32$ 57$ 39$ 562112 Hazardous waste collection 1 55$ 98$ 86$ 335931 Current-carrying wiring device manufacturing 1 31$ 56$ 52$ 335311 Electric power and specialty transformer mfg. 0 11$ 19$ 49$ 562119 Other waste collection 0 13$ 23$ 60$ 238291 Other residential building equipment contractors 0 7$ 12$ 36$ 335929 Other communication and energy wire mfg. 0 13$ 23$ 84$ 221119 Other electric power generation 0 18$ 33$ 149$ 221111 Hydroelectric power generation 0 12$ 21$ 144$ 335912 Primary battery manufacturing 0 3$ 6$ 54$ 562219 Other nonhazardous waste disposal c 1$ 2$ 33$

Total Adjusted Renewable Energy and Conservation 522 31,048$ 55,577$ 70$ Source: EMSI Complete Employment - 2nd Quarter 2009 v. 2

Renewable Energy & ConservationTable 19


24


The presence of the National Renewable Energy Laboratory in Golden, within the Denver-Aurora Metro Area has created an economic environment that is conducive to emergent manufacturers. Wind, solar, geothermal, hydroelectric and biofuels will all emerge in Colorado, and in the Denver-Aurora Metro Area, as both market and resource availability will bear. Though many manufacturing skill sets are emergent, there is some transferability. Oil and gas workers, such as derrick operators and well loggers, have skills easily transferable to a new energy economy, as do those presently skilled in high-tech manufacturing, such as working in a vacuum or clean room environment.

Wholesale merchants have been included because they are an integral part of the new energy and conservation industry. They will take the lead in stocking critical parts and products that support the new sector.

Professional, technical and scientific sub-sectors, such as environmental consulting, engineering services and testing laboratories, will evolve to serve the new sector, and will interface with utilities, construction, waste management and remediation, and urban transit to stimulate evolution toward higher return on investment.

Colorado is poised to become a regional hub for both emergent and evolving ‘green’ industries, and the new sector’s labor force must be managed and supported by a strong (and also evolving) training infrastructure.

The level of support in PY08 for the renewable energy and conservation sector can be seen in Table 20, which shows the number of Individual Training Accounts that Arapahoe/Douglas Works! issued for occupations supporting that sector.

Many of the occupations in this new sector demand talent development in the form of medium and long-term on-the-job-training. This suggests the need for a greater integration of registered apprenticeships into the region’s training infrastructure.

Number Onet Occupation Title1 19204100 Environmental Scientists and Specialists, Including Health and Safety2 19305100 Urban and Regional Planners1 47101100 First Line Supervisors/Managers of Construction Trades1 47207300 Operating Engineers and Other Construction Equipment Operators1 47401100 Construction and Building Inspectors2 47404100 Hazardous Materials Removal Workers5 49902100 Heating, Air Conditioning and Refrigeration Mechanics6 51803100 Water & Liquid Waste Treatment Plant System Operators3 53302100 Bus Drivers, Transit and Intercity

22

Individual Training Accounts in Renewable Energy & Conservation Occupations PY08

Total ITAs Issued in Renewable Energy/Conservation OccupationsSource: Connecting Colorado Special Report (JOLS)

Table 20


25


enabling OccupationsThe majority of ITAs issued by Arapahoe/Douglas Works! in any given program year are for occupations important to the entire business infrastructure. These are called ‘enabling’ occupations, because they enable successful operations in virtually any business. These occupations include management, business and financial, computer and office/administrative support. Of the 1,319 ITAs issued by Arapahoe/Douglas Works! in PY08, 569 (43%) were for enabling occupations.

It is noteworthy that while all of these enabling occupations have suffered during the current downturn, the 21st Century labor market evolves so quickly that many times workers are laid off because they lack a specific skill within the overall skill set of their occupation. The Arapahoe/Douglas Works! policy structure calls for a training request application, which includes several informational interviews and employer contacts, as well as the submission of three job announcements or ads that call for the specific skill set in which the job seeker wants training. In this way, Arapahoe/Douglas Works! ensures that those jobseekers it trains in enabling occupations are able to find work.

It is also important to note that though workforce centers in general train in areas that require only vocational or associate level degrees, or medium- or long-term on-the-job-training, Arapahoe/Douglas Works! also helps many degreed individuals with post-baccalaureate certificates in demand areas.


26


Number Onet Occupation Title

4 11102100 General and Operations Managers3 11202100 Marketing Managers2 11202200 Sales Managers3 11301100 Administrative Services Managers

26 11302100 Computer and Information Systems Managers11 11304000 Human Resources Managers

1 11304999 Human Resources Managers, All Other27 11919999 Managers, All Other

8 13119999 Business Operations Specialists, All Other5 13201100 Accountants and Auditors

18 13201101 Accountants 2 13205100 Financial Analysts4 15102100 Computer Programmers

23 15103100 Computer Software Engineers, Applications24 15103200 Computer Software Engineers, Systems81 15104100 Computer Support Specialists

6 15105100 Computer Systems Analysts48 15106100 Database Administrators80 15107100 Network and Computer Systems Administrators

7 15108100 Network Systems and Data Communication Analysts13 15109999 Computer Specialists, All Other6 43101100 First Line Supervisors/Managers of Office and Administrative Workers9 43301100 Bill and Account Collectors3 43302102 Billing, Cost and Rate Clerks

49 43303100 Bookkeeping, Accounting and Auditing Clerks2 43305100 Payroll and Timekeeping Clerks4 43416100 Human Resources Assistants, Except Payroll and Timekeeping2 43417100 Receptionists and Information Clerks1 43503200 Dispatchers, Except Police, Fire and Ambulance

49 43601100 Executive Secretaries and Administrative Assistants3 43906100 Office Clerks, General

13 43919999 Office and Administrative Support Workers, All Other537

Individual Training Accounts in Enabling Occupations PY08

Total ITAs Issued in Enabling Occupations


Table 21


27


Table 22 shows the returns on public investment, (ROPI), for each program run by Arapahoe/Douglas Works! In all cases, both the costs for Arapahoe/Douglas Works! and other public costs, such as unemployment payments, TANF and food stamp payments, have been included. Each program’s ROPI is based upon its associated costs. In this way, improvement opportunities can be identified that drive improvements to specific programs, and controls imposed upon operational processes to enhance ROPI outcomes on all programming.

Placement data was not available for two Arapahoe/Douglas Works! programs: the Pre-release workshops done for offenders (shortly released) from various correctional facilities, and the 50+ and Fabulous Program, which serves job seekers over age 50.

Wia adult/Dislocated Worker ProgramTable 23 on the following page shows the economic impacts by sector and overall for the WIA Adult/Dislocated Worker Program, which provides intensive help with job search and training stipends for in-demand occupations to participants. The reader should note that jobs, earnings and sales multipliers are different than the overall Arapahoe/Douglas Works! result expressed in Table 5 (Jobs: 1.91, Earnings: 1.81, Sales: 1.79). This is because the ratio of placements by industry sector versus overall is different. EMSI uses input/output ratios that it purchased from the U.S. Bureau of Economic Analysis. These ratios show the effect that a job added in one industry has on jobs, earnings and sales in other industries. EMSI regionalizes these calculations based on the local strength of each industry relative to the national strength of each industry (also expressed as Location Quotient).

In PY08, the WIA Adult/Dislocated Worker Program achieved a 51.3% placement rate in targeted industries in PY08. This compares with 64.2% in PY07 and 38.5% in PY06. The reader should note that Arapahoe/Douglas Works! made significant changes to its NAICS definitions of targeted industries between PY07 and PY08, which accounts for what seems to be superior performance in PY07. In addition, the economic downturn in PY08 adversely affected both the overall number of placements, and the PY08 ratio of placements in targeted industries versus overall. ROPI for the WIA Adult/Dislocated Worker program includes unemployment expenditure for its PY08 client base.

Program Total Jobs

Added

Earnings Growth (K)

Sales Growth (K)

ROPI to Earnings

($1)

ROPI to Sales ($1)

All Programs 7,208 675,505$ 1,209,154$ 8.04$ 14.39$ Applicant Services (Wagner-Peyser) 5,493 614,598$ 1,099,229$ 10.21$ 18.29$ Workforce Investment Act Adult/Dislocated Worker (WIA AD/DW) 442 22,256$ 40,283$ 5.81$ 10.51$ Youth 79 3,230$ 5,846$ 4.11$ 7.44$ Trade Adjustment Assistance (TAA) 42 2,021$ 3,658$ 0.84$ 1.52$ Child Support Enforcement (Parents to Work) 179 7,887$ 13,960$ 23.47$ 41.55$ Employment First (EF) 571 14,966$ 27,088$ 22.62$ 40.94$ Temporary Aid to Needy Families/Colorado Works (TANF/Colorado Works) 402 10,547$ 19,090$ 1.38$ 2.50$ Totals 7,208 675,505 1,209,154

Economic Impact by Program, PY08

Sources: Arapahoe/Douglas Works PY08 Fiscal Report, Connecting Colorado, Other Internal Data, EMSI Complete Employment - 3rd Quarter 2009

Table 22

Impact by Program

28


At this time Arapahoe/Douglas Works! has a policy in place allowing substantially more tuition assistance for Adult/Dislocated Worker clientele in critical occupations, but is in the early stages of developing relationships with local business leaders in targeted industries that result in greater numbers of job placements in targeted industries.

At this writing, in Combined Performance Measures, which are supply-side indicators, Arapahoe/Douglas Works! performed at over 100% of its benchmark for Entered Employment Rate, Six-Month Job Retention and Increased Earnings.

youth ProgramTables 24 and 25 show the economic impact by sector for the Youth in the Works! Program. Table 24 shows that 50 direct placements and a total of 79 jobs were added to the local economy. ROPI on earnings and growth is $4.11 and $7.44, respectively. Two factors influenced the number of placements made by the Youth program in PY08:

1. The severe economic downturn with local area unemployment spiking at 8.2% in March 2009 dramatically affected employment of youth over the summer. So many highly qualified adults with years of work experience were out of work, and they competed successfully for summer jobs traditionally held by youth. This cut employment options for youth significantly in PY08, rendering the total number of job placements significantly lower than prior years.

2. Under WIA, the Youth Program is not geared specifically to create placements; rather, it is structured to build soft skills, employability and address literacy/numeracy deficiencies. A positive outcome for a participant of the Youth program can be:

a. Placed in a jobb. Entered collegec. Obtained High School Diploma or GED

Economic Impact Arapahoe/Douglas Works! WIA Adult/Dislocated Worker Programming, PY08

IndustryNumber

Placements

Total Jobs

Added

Earnings Growth (K)

Sales Growth (K)

EPW (K)

Bioscience 5 9 200$ 362$ 54$

Healthcare 56 103 3,733$ 6,757$ 55$

Aerospace 1 2 122$ 221$ 95$

Aviation 2 4 192$ 348$ 84$

Homeland Security 5 9 210$ 380$ 54$

Information Technology 14 26 1,664$ 3,012$ 93$

Finance 24 44 2,917$ 5,280$ 67$

Renewable Energy & Conservation 16 29 1,046$ 1,893$ 70$

Education 11 20 429$ 776$ 32$

Other 106 195 11,743$ 21,255$ 56$ Totals 240 442 22,256$ 40,283$ 66$ Number in Targeted Industry Sectors 123 226 10,084$ 16,359$ 74$ Percent in Targeted Industry Sectors 51.3% 51.3% 45.3% 40.6%ADW PY08 Expenditure (K) 3,832 Return on Public Investment for Each $1 Spent 5.81$ 10.51$ Sales Multiplier 1.81Jobs Multiplier 1.84Earnings Multiplier 1.78

Sources: Connecting Colorado, EMSI Complete Employment - 3rd Quarter 2009

Table 23

Impact by Program

29


d. Obtained Vocational Certificate or Associate Degreee. Enhanced [pre employment, soft and employment retention] skills

Table 25 shows an additional economic impact of over $151,000 in individual earnings in the community due to 81 Youth participants obtaining their High School Diploma or GED. These additional individual

earnings are not calculated into the demand-side results proposed by this study, though they are included here because they are worth mentioning.

In addition, Arapahoe/Douglas Works! runs a Youth Energy Conservation Corps., which consists of teams of participants who perform Tier 1 energy inspections for LEAP-eligible homes in Arapahoe and Adams counties. This award-winning program produced significant economic impact by saving

community residents more than $500,000 in energy costs, freeing up monies that can then be spent with other industries in the Denver-Aurora Metro Area. The Youth Energy Conservation Corps has also served as a training vehicle for young people considering entering the emergent renewable energy and energy conservation field.

IndustryNumber

Placements

Total Jobs

Added

Earnings Growth (K)

Sales Growth (K)

EPW (K)

Bioscience 0 - 11$ 20$ 54$

Healthcare 8 13 472$ 854$ 55$

Aerospace 0 - 13$ 24$ 95$

Aviation 1 2 97$ 176$ 84$

Homeland Security 0 - 18$ 33$ 54$

Information Technology 0 - 101$ 183$ 93$

Finance 0 - 183$ 331$ 67$

Renewable Energy & Conservation 0 - 66$ 119$ 70$

Education 2 3 71$ 129$ 32$ Other 39 62 2,198$ 3,978$ 56$ Totals 50 79 3,230$ 5,846$ 66$ Number in Targeted Industry Sectors 9 14 961$ 1,620$ 74$ Percent in Targeted Industry Sectors 18.0% 18.0% 29.8% 27.7%ADW PY08 Expenditure (K) 786 Return on Public Investment for Each $1 Spent 4.11$ 7.44$ Sales Multiplier 1.79Jobs Multiplier 1.58Earnings Multiplier 1.76


Economic Impact Arapahoe/Douglas Works! Youth Programming, PY08

Table 24

48%81

426$ 591$ 9.0%5.7%

151,238$

Additional Economic Impact of Youth Programming, PY08

Percent of Youth Classified as Drop Outs When Served by Arapahoe/Douglas WorksNumber Earning High School Diploma or GED PY08Average Weekly Earnings for High School DropoutsAverage Weekly Earnings for High School or GED GraduatesAverage Unemployment Rate, DropoutsAverage Unemployment Rate, High School or GED GraduatesYear, Accounting for 5.7% Average Unemployment

Source: U.S. Department of Education

Table 25

Impact by Program

30


In terms of supply side outcomes, in PY08 the Arapahoe/Douglas Youth program far exceeded 100% of its benchmark goals in Literacy & Numeracy Gain, Entered Employment or Higher Education Rate, and Attainment of Degree/Certificate.

Trade adjustment act (Taa) ProgramApplicant Services (Wagner-Peyser), Veterans Programs and the Trade Adjustment Act Program were housed at Arapahoe/Douglas Works! in PY08, but were not run by Arapahoe/Douglas Works!

Table 26 shows results for the Trade Adjustment Assistance program. It should be noted that the TAA program absorbs many costs outside of Arapahoe/Douglas Works! In PY08, 119 participants were served. These participants received TRA assistance in the form of weekly payments in addition to an average of over $6,800 in training assistance.

In terms of supply side indicators, the TAA program in PY08 came in at 73.81% Entered Employment Rate, falling short of its benchmark by 14.2%. Six-Month Job Retention was 82.76%, falling short of its benchmark goal by 3.8%. Earnings substantially exceeded the state benchmark at $22,133.

Child Support enforcement (Parents to Work) ProgramThe Child Support Enforcement (Parents to Work) Program showed the second highest ROPI of all programming administered by Arapahoe/Douglas Works! in PY08. In less than one program year, Parents to Work added 155 jobs, over $6.8 million in increased local business earnings, and over $12 million in increased regional business sales. Table 27 shows the economic impact of the Parents to Work Program in PY08.

Parents to Work is a pilot program designed to increase child support from non-custodial parents who are substantially in arrears on child support payments. It is a voluntary program, though a small number of

IndustryNumber

Placements

Total Jobs

Added Earnings

Growth (K) Sales

Growth (K) EPW (K) Bioscience 0 - 8$ 14$ 54$

Healthcare 4 7 320$ 579$ 55$

Aerospace 0 - 16$ 29$ 95$

Aviation 1 2 93$ 168$ 84$

Homeland Security 0 - 11$ 20$ 54$

Information Technology 1 3 188$ 340$ 93$

Finance 0 2 100$ 181$ 67$

Renewable Energy & Conservation 0 1 40$ 72$ 70$ Education 0 - 8$ 14$ 32$ Other 15 27 1,237$ 2,239$ 56$ Totals 21 42 2,021$ 3,658$ 66$ Number in Targeted Industry Sectors 6 15 776$ 1,332$ 74$ Percent in Targeted Industry Sectors 28.6% 36.3% 38.4% 36.4%ADW PY08 Expenditure (K) 1,918$ Return on Public Investment for Each $1 Spent 1.05$ 1.91$ Sales Multiplier 1.78Jobs Multiplier 1.85Earnings Multiplier 1.78


Economic Impact Arapahoe/Douglas Works!TAA Programming, PY08

Table 26

Impact by Program

31


referrals are court-ordered. Currently, Arapahoe/Douglas Works! is working with the Arapahoe County Department of Human Services to refine the program’s operations and improve results. The main issue relevant to this study is job retention.

According to the Parents to Work Second Interim Report, prepared October 2009 by Jessica Pearson, Ph.D. and Lanae Davis, MPA, from the Center for Policy Research, the program has a 44% job retention rate. However, 24% of participants were placed in

subsidized temporary jobs for 500 total hours, and when the temporary jobs ended, these were counted against retention rate.

While child support payments are taken from the wages from these temporary jobs, called WTE, the reader should note that the primary purpose of these subsidized positions is to give participants who are not marketable when they come into the program job experience, so they can find more permanent work. Pearson and Davis note in their Second Interim Report that an additional 17% of participants who left their first ‘job’ obtained a second, permanent job. This brings total job retention to 62% in real terms.

In addition, though Arapahoe/Douglas Works! showed a total of 166 placements in PY08, 27% of these were part-time or had variable hours. Therefore, for purposes of determining economic impact from Parents to Work in PY08, the following adjustments were made:

IndustryNumber

Placements

Total Jobs

Added

Earnings Growth (K)

Sales Growth (K)

EPW (K)

Bioscience 1 2 110$ 194$ 54$ Healthcare 2 3 228$ 404$ 55$ Aerospace 0 - 28$ 49$ 95$ Aviation 1 2 79$ 139$ 84$ Homeland Security 4 7 112$ 199$ 54$ Information Technology 0 - 171$ 303$ 93$ Finance 2 3 418$ 740$ 67$ Renewable Energy & Conservation 7 12 620$ 1,097$ 70$ Education 1 2 57$ 101$ 32$ Other 71 124 4,993$ 8,837$ 56$ Totals 89 155 6,815$ 12,063$ 66$ Number in Targeted Industry Sectors 17 30 1,765$ 3,125$ 74$ Percent in Targeted Industry Sectors 19.1% 19.1% 25.9% 25.9%ADW PY08 Expenditure (K) 336$ Return on Public Investment for Each $1 Spent 20.28$ 35.90$ Margin of Error at 95% Certainty 3.67 Sales Multiplier 1.77Jobs Multiplier 1.74Earnings Multiplier 1.79

Economic Impact Arapahoe/Douglas Works! Parents to Work Programming, PY08

Source: Arapahoe/Douglas Works! Child Support Enforcement Program; EMSI Complete Employment 3rd Quarter 2009

Table 27

Impact by Program

32


• Only 103 (62%) jobs were credited in this study, not the original 166.

• This number was further reduced by 14 jobs to compensate for the 27% who only went to work part time.

• Parents to Work had data on only 87 of 166 (52.4%) of its placements. Therefore, in calculating the economic impact of placements it was necessary to use a standard margin of error (95% certainty) calculation.

Since, according to the U.S. Department of Health and Human Services TANF 8th Annual Report to Congress, 14.6% of the custodial parents impacted by child support enforcement programs are receiving TANF benefits, it is worthy to note that Parents to Work has the additional benefit of reducing Arapahoe County’s overall TANF expenditure. Though not counted in this report, the economic impact of child support is substantial. According to the Center for Law and Social Policy, it reduces TANF payments dollar for dollar, and on average pays families with children an additional $4,300 per year. With 89 placements, this increases the purchasing power of custodial parents in the community by almost $382,700 per year. This additional purchasing power contributes to increased sales throughout the region.

employment FirstThe Employment First Program had the highest return on public investment (ROPI) of all programs that Arapahoe/Douglas Works! ran during PY08. Main performance indicators for the Employment First Program are Number Processed, Number Placed and Enhanced Funding. Enhanced funding is earned by Arapahoe/Douglas Works! when it places an Employment First participant in a job, and the earned income reduces that

IndustryNumber

Placements

Total Jobs

Added

Earnings Growth (K)

Sales Growth (K)

EPW (K)

Bioscience 1 2 149$ 269$ 54$

Healthcare 34 54 1,373$ 2,471$ 55$

Aerospace 1 2 137$ 246$ 95$

Aviation 3 5 122$ 219$ 84$


Information Technology 7 11 561$ 1,010$ 93$

Finance 12 19 1,004$ 1,807$ 67$

Renewable Energy & Conservation 12 19 737$ 1,327$ 70$

Education 16 25 304$ 548$ 32$

Other 211 335 8,050$ 14,490$ 56$

Totals 301 479 12,548$ 22,712$ 66$ Number in Targeted Industry Sectors 74 118 4,194$ 7,549$ 74$ Percent in Targeted Industry Sectors 24.6% 24.6% 33.4% 33.2%

662$ 18.97$ 34.33$

3.62 1.801.591.78

Return on Public Investment for Each $1 Spent

Economic Impact Arapahoe/Douglas Works! Employment First Programming, PY08

ADW PY08 Expenditure (K)

Margin of Error at 95% ConfidenceSales MultiplierJobs MultiplierEarnings Multiplier

Source: Arapahoe/Douglas Works! Employment First Program; EMSI Complete Employment 3rd Quarter 2009

Table 28

Impact by Program

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participant’s food assistance benefit amount, either in-part or in-full. Enhanced funding is equal to 1.5 times the reduction over one month. Arapahoe/Douglas Works! was paid over $130,000 in enhanced funding over PY08 for reductions to food stamp benefits for 359 participants.

Employment First provides intensive help with job search to food assistance recipients and is the highest volume program run by Arapahoe/Douglas Works! The Employment First Program serves an average of 293 participants per week. Of these, an average of 27 persons per week obtain employment. Others are made exempt from participation due to disabilities, family care or other issues, or are referred to other services and programs. Enhanced funding was earned for only 25.7% of all participants placed. Since no data was available for retention, 359 was used instead of 1,396 to calculate economic impact.

Of the 359 placements credited for purposes of this study, 68% were full-time and 32% were part-time, according to the Colorado Department of Human Services. Because of this, the number of placements credited for purposes of this study was lowered to 301 to compensate for part-time placements. Data was available for 67% of the total placements, so a standard margin of error was calculated at 95% certainty.

For cost calculations, Arapahoe County Department of Human Services reports the average food assistance benefit is $200 for each Employment First participant. In addition, according to the Arapahoe/Douglas Works! Final Fiscal Report for PY08, the agency spent $589,802 running Employment First.

TanF/Colorado WorksArapahoe/Douglas Works! contracts with the Arapahoe County Department of Human Services to serve welfare (Temporary Assistance to Needy Families – TANF) recipients who are deemed by that department to be ‘job ready.’ The remaining recipients are served by other community organizations, such as Goodwill Industries.

Specific employment data was not available for the TANF/Colorado Works population, save the gross number of placements and percent of placements that were full-time versus part-time. Since demographics for this population most closely resemble those for Employment First, earnings, jobs and sales multipliers from that program’s placements were used to derive the economic impact of the TANF/Colorado Works program run by Arapahoe/Douglas Works!

TANF/Colorado Works participants are referred to Arapahoe/Douglas Works! monthly and are processed through its award-winning Rapid Attachment to Employment (RATE) service model.

Using data obtained from 2005 and 2007 Colorado Annual Reports on state TANF programs, (data supplied through the Colorado Department of Human Services and the U.S. Department of Health and Human Services’ TANF 8th Annual Report to Congress) the average cost per TANF/Colorado Works participant was shown to be $1,870 per month, including basic cash assistance, Medicaid coverage, child care and other services. In addition, the PY08 Arapahoe/Douglas Works! Fiscal Report showed totals of $760,855.79 and $45,309.30 were expended to operate TANF/Colorado Works Programs in Arapahoe and Douglas counties, respectively. These operating costs were included in the total public cost calculated in Table 29.

Impact by Program

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Table 29 shows the economic impact of the TANF/Colorado Works program operated by Arapahoe/Douglas Works! in PY08.

incumbent Worker ProjectsArapahoe/Douglas Works! engaged in two incumbent worker projects in PY08. In the first project, a prominent regional employer asked for $143,000 to train 25 aerospace engineers in high-level cyber security systems. Without the training, these engineers would otherwise have been laid off. Table 31 shows that should 25 high-skilled workers be laid off from this key regional industry, the actual cost to the community would be 70 jobs. This means that 70 people would be laid off, file for unemployment and receive an average of $8,005 in compensation. In addition, regional businesses would suffer a loss in earnings of just over $6 million, and a loss in sales of $10.5 million. The expenditure of $143,000 in public monies to avert this event yielded a return on public investment of $42.50 in earnings and $73.53 in sales for each public dollar spent.

The second incumbent worker project was with a long-standing regional health care industry partner, which asked Arapahoe/Douglas Works! to pay supportive services for 12 incumbent Registered Nurses while they received advanced training to allow them to function successfully in critical care settings. Arapahoe/Douglas Works! agreed, the nurses were trained and their old jobs backfilled with less experienced Registered Nurses. Table 30 shows this project, which cost only $36,000 in public funds, added 22 jobs to the region, and increased regional business earnings by almost $1.3 million and boosted sales by over $2.3 million. This yielded a return on public investment for each dollar spent of $35.67 in additional business earnings and $65.25 in increased sales.

IndustryNumber

Placements

Total Jobs

Added

Earnings Growth (K)

Sales Growth (K)

EPW (K)

Bioscience 5 8 126$ 224$ 54$

Healthcare 59 94 1,153$ 2,052$ 55$

Aerospace 1 2 115$ 205$ 95$

Aviation 2 3 103$ 183$ 84$


Information Technology 15 24 471$ 838$ 93$

Finance 25 40 844$ 1,502$ 67$

Renewable Energy & Conservation 17 27 619$ 1,102$ 70$

Education 12 19 255$ 454$ 32$

Other 112 178 6,767$ 12,045$ 56$

Totals 253 402 10,547$ 19,090$ 66$ Number in Targeted Industry Sectors 129 205 3,525$ 5,173$ 74$ Percent in Targeted Industry Sectors 51.0% 51.0% 33.4% 27.1%

7,643 1.38$ 2.50$

Margin of Error at 95% Confidence 5.04 1.801.591.78

Return on Public Investment for Each $1 Spent

Economic Impact Arapahoe/Douglas Works!TANF/Colorado Works Programming, PY08

PY08 Public Expenditure (K) offset by 25,500 volunteer hours @ $7.38/hr

Sales MultiplierJobs MultiplierEarnings Multiplier

Source: Arapahoe/Douglas Works! TANF/Colorado Works Program; EMSI Complete Employment 3rd Quarter 2009

Table 29

Impact by Program

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Registered Nurses 12

Total Regional Jobs Added 22

Regional Gain in Business Earnings 1,267,000$

Regional Gain in Business Sales 2,280,600$

Cost in Public Funds for Retraining 36,000$

ROPI for $1 Spent in Regional Business Earnings 35.19$

ROPI for $1 Spent in Regional Business Sales 63.35$ Source: EMSI Complete Employment 3rd Quarter 2009

Health Care Incumbent Worker Project

Aerospace Engineers 25

Total Regional Jobs Lost 70

Unemployment Compensation 560,350$

Regional Loss in Business Earnings Averted 6,078,000$

Regional Loss in Business Sales Averted 10,514,940$

Cost in Public Funds for Retraining 143,000$

ROPI for $1 Spent in Regional Business Earnings 42.50$

ROPI for $1 Spent in Regional Business Sales 73.53$ Source: EMSI Complete Employment 3rd Quarter 2009

Aerospace Incumbent Worker ProjectTable 31

Table 30

Impact by Program

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It is clear from this study that, at least in the Denver-Aurora Metro Area, the regional economic impact from the publicly funded workforce system is significant. The key conclusions listed below have ramifications for all publicly funded workforce centers throughout the United States and its territories.

• To answer the question of how much more likely a person using the Arapahoe/Douglas Works! workforce center is to find employment, compared to someone who merely registers in Connecting Colorado (web registrants) but does not use any workforce center services, data was available on employment outcomes for web registrants and for persons receiving services through the Workforce Investment Act (WIA), American Recovery and Reinvestment Act (ARRA) and Trade Assistance Act (TAA). The study found:- Web registrants had a 71% chance of finding work- Persons receiving workforce center services through WIA, ARRA and TAA programs had an 82%

chance of finding employment- Persons receiving assistance through WIA and ARRA adult and dislocated worker programming had

an 89% chance of finding employment- Persons receiving services through the WIA dislocated worker program had a 94% chance of finding

employment. This suggests that services offered through Arapahoe/Douglas Works! and other workforce centers

significantly increase an unemployed person’s chances of finding work.

• This study shows that a publicly funded workforce center’s effectiveness can be measured in terms of regional economic impact. Employment growth, increases in regional business earnings and increases in regional business sales are valid demand side performance measures for the publicly funded workforce system, and this study establishes a performance baseline for Arapahoe/Douglas Works!

• Even when carrying public costs over eleven times its yearly budget, including unemployment benefit payments, welfare, food stamps, child care and housing, Arapahoe/Douglas Works! yielded a return on each dollar of public investment of $7.16 in increased regional business earnings, and $12.82 in increased regional business sales in the Denver-Aurora Metro Area.

• Employment outcomes achieved by Arapahoe/Douglas Works! in PY08 resulted in increased business earnings in the Denver-Aurora Metro Area of $675.5 million, and increased regional aggregate sales in excess of $1.2 billion.

• Industries critical to the Denver-Aurora Metro Area include biosciences, health care, aerospace, aviation, homeland security, information technology, finance and renewable energy/conservation. Aggregate business earnings rose by over $270 million and aggregate sales by over $484 million for these targeted industries as a result of the employment and training outcomes of Arapahoe/Douglas Works! in PY08.

• By aligning and improving business processes, publicly funded workforce centers can directly drive demand-side performance. If a larger percentage of the 60,000+ registrants in PY08 received staff-assisted services and found employment as a result, the center could be credited with employment growth in excess of the 7,208 jobs actually counted in the study.

Conclusion

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ConclusionIn addition, several limitations of the study emerge:

• While the study shows that Arapahoe/Douglas Works! can be credited for an employment increase of 7,208 in the Denver-Aurora Metro Area, the region experienced an aggregate net employment loss of 124,248 in the same time period. This study provides no insight about how many jobs would actually have been lost in the region were Arapahoe/Douglas Works! and its sister workforce centers not present.

• Over 60,000 workers registered with Arapahoe/Douglas Works! in PY08, but only 15,458 (25.69%) received staff assisted services. Though internal data does suggest a slight improvement in employment results for persons who received staff assisted services (3/10 of a percent) over those who did not, data is not available at this time to provide a statistically valid comparison of employment results for these two populations.

• At the time this initial study was written, data was not available to show any increase in likelihood of obtaining employment between those who were registered, but did not receive any services from Arapahoe/Douglas Works!; those who did receive ‘staff assisted services,’ and those who actually obtained training and intensive help with job search. Arapahoe/Douglas Works! is in the process of compiling such data and will include it in subsequent studies.

• Currently, government at all levels in Colorado is experiencing structural funding problems. This study made no provision to measure growth in tax revenues or other social impacts as a result of employment outcomes.

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American Research Group, Inc. “Margin of Error Calculator,” http://americanresearchgroup.com/moe.html

Center for Law and Social Policy, “Research Fact Sheet: Child Support Substantially Increases Economic Well-Being of Low- and Moderate-Income Families,” 2005

Colorado Department of Labor and Employment, Labor Market Information Division

Colorado Department of Labor and Employment, Unemployment Insurance Division

Connecting Colorado (Statewide Workforce System Database)

Economic Modeling Specialists, Inc.

Regional Input/Output Matrix, U.S. Bureau of Economic Analysis

U.S. Department of Commerce data on gross national and regional outputs, in/out commuter patterns, regional DIRT data, imports and exports

Farrell, Mary et al, “Colorado Works Evaluation: 2007 Annual Report,” Lewin Group, October 2007

Independent Sector, “Research: Value of Volunteer Time,” http://www.independentsector.org/programs/research/volunteer_time.html, 2009

National Center for Children in Poverty, “Colorado Food Stamps,” http://www.nccp.org/profiles/CO_profile_29.html, August 2008

Richards, Kevin R. et al, “Annual Report on State TANF and MOE Programs - 2005, Colorado,” U.S. Department of Health and Human Services Administration for Children and Families, December 30, 2005

Robert Half International, “Employment Dynamics and Growth Expectations (EDGE) Report,” 2008

Smart, Alana, et al, “2009 Housing Colorado Facts Book,” Housing Colorado, 2008

Topoleski, John J., “Trade Adjustment Assistance for Workers (TAA) and Reemployment Trade Adjustment Assistance (RTAA),” Cornell University ILR School, February 19, 2009

U.S. Department of Census, “Housing Report 2004,” Denver MSA

U.S. Department of Health and Human Services, “TANF Eighth Annual Report to Congress,” November 19, 2008

Sources

39


Glossary of TermsAdult/Dislocated WorkerProgramming offered under the Workforce Investment Act of 1998 that allows the provision of supportive services and training assistance to unemployed adults and dislocated workers; dislocated workers are those persons who have been laid off or have lost their jobs through no fault of their own.

ARRAThe American Recovery and Reinvestment Act of 2009 (known as the ‘stimulus’ package)

Aggregate Business Earnings Wages, salaries, distribution of Profits (dividends), benefits and other compensation that flow back into the community as a result of changes in gross receipts due to jobs added.

Common MeasuresSupply-side accountability measures currently used to gauge workforce development region effectiveness; includes EER, 6-Month Retention and Earnings Change.

Connecting ColoradoColorado’s Workforce Development data tracking system, also known as Job Link.

Earnings ChangeAll monies that come into the community through wages, benefits, profit sharing, pension plans, dividends, ownership draws, and other compensation.

Earnings Per Worker (EPW)Earnings Per Worker, defined as the total yearly earnings of an industry or sector, including wages, salaries, profits, benefits and other compensation, divided by the total employment base of the industry.

Economic BaseModeling developed by Robert Murray Haig in 1928; shows jobs, earnings and sales provided by a business, set of businesses or industry sectors, or all industries in a geographic area.

EEREntered Employment Rate; calculated by dividing the total number of persons who found employment into the total number served; a supply side measure of workforce development region effectiveness; one of the Common Measures.

Employment FirstArapahoe/Douglas Works! Program serving food assistance recipients.

EMSIEconomic Modeling Specialists, Inc. specializing in input-output modeling for economic impact.

Incumbent WorkerWorkers who are employed presently, but could lose their jobs of they do not upgrade skills with specific training.

Input-Output ModelingMathematical modeling theory developed by Wassily Leontief (for which he won the Nobel Memorial Prize in

40


Economic Sciences) that predicts the effect of changes in one industry on other industries and on consumers.

ITAIndividual Training Account; the training assistance available to eligible participants in WIA programming; training is usually done for middle skill jobs that require vocational certificate, associate level degree, medium or long-term on-the-job training; can also be a post-baccalaureate certificate; there must be a reasonable chance of employment after completion of training in the local labor market.

labor Market InformationThe United States began collecting information on the labor market in 1948; includes demographic, wage,

MOEMaintenance of Effort payments made to TANF recipients to help them work toward gainful employment.

MultiplierThe number of jobs, earnings and sales changes that occur within a region as a result of adding or subtracting jobs in a given industry.

NAICSNorth American Industry Classification System

ONET-SOCStandard Occupational Classification system used in the United States. There are 965 occupations listed in ONET-SOC

Parents to Work ProgramPilot program designed to increase child support from non-custodial parents who are substantially in arrears on child support payments.

PYProgram year. A time period used in Workforce Development to gauge performance. Each program year begins July 1 and ends June 30.

Sales Gross receipts of an industry or sector

Six-Month RetentionSix Month Employment Retention Rate; calculated by dividing the total number of persons still working after six months into the total number of persons who found work as a result of being served by a Workforce Development region; one of the Common Measures.

TAATrade Adjustment Act; a training program designed to serve participants who lost their job as a result of the North American Free Trade Act

TANF/Colorado Works ProgramProgram helping welfare (Temporary Aid to Needy Families – TANF) recipients to find work

Glossary of Terms

41


TRACost of living stipend, similar to Unemployment Insurance benefit paid to TAA participants weekly; the national average TRA payment is $310/wk for 63 weeks.

Wagner-PeyserWagner-Peyser Act of 1935 as amended under the Workforce Investment Act of 1998

WIAWorkforce Investment Act of 1998

YouthProgramming under the Workforce Investment Act of 1998 for persons aged 14-21 (14-24 under ARRA) designed to generate career awareness, build leadership, teamworking, pre-employment and employment retention skills.

Glossary of Terms

Arapahoe/Douglas Works! 5500 S. Quebec Street, Suite 175 | Greenwood Village, Colorado | 80111 | 303.636.1160

www.adworks.org

Economic Impact of Workforce Center Operations

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