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Oklahoma’s Advantage“GROWING OUR OWN”
Governor’s CouncilStrategic Plan
VisionOklahoma HAS a competitive advantage through integrated workforce and economic development objectives
MissionADVANCES demand-driven workforce and economic development systems
ResultACHIEVES wealth-creation for business, individuals, and communities throughout Oklahoma
Guiding PrinciplesFor Creating Oklahoma’s Competitive Advantage
Oklahoma Will Always ----• Know its status relative to changing employer and workforce conditions due to globalization, new science, technology, and demographics.• Have a competitive labor pool that addresses the quality needs of current and anticipated industry clusters and employer groups.• Command a strong base of public awareness and support for workforce and economic development issues and initiatives, including education.• Work through collaborative systems of policy-governance, benchmarking, evaluation, and rewards.
OKLAHOMA YOUTH COUNCIL
Oklahoma’s Advantage
The beginning of a new day…
What’s at Stake?• For Business
– Expansion– Quality workforce
• For Oklahomans– Higher wages– Quality Jobs– Better standard of living
• For Communities– Population growth– Economic vitality– Oklahoma’s reputation
Issues • Baby Boomers are will be retiring at an increasingly rapid
pace for the next 15 years• Potential shortage of 10 million workers by 2010• Only significant source for additional skilled workers is
from immigration• Homeland Security issues are currently problematic for
immigration• Skills Gaps: Mismatch of worker skills and job profiles• Increased diversity of the workforce will create language
and cultural challenges
WHAT MATTERS TO YOU, NOW?
THE RIGHT WORKERS WITH THE RIGHT SKILLS FOR THE RIGHT
JOB-----IN YOUR REGION!
Oklahoma Solutions • Industry Sector Studies• Career Management System• Career Readiness Certificate• Workforce Board Development/ Certification • State Partnership Agreement• Talent development strategies • Grow Our Own• ADVANTAGE CENTERS• Existing Worker Training• State Youth Council for Workforce Initiatives
Issues
• Worker Shortages
• Skills Shortages
Annual employment Annual employment growth, projected 2004-2014growth, projected 2004-2014
Source: U.S. Bureau of Labor Statistics
1.30%-1.50%
1.20%-1.29%
1.11%-1.19%
0.98%-1.10%
From 1994-2004, OK met its employment From 1994-2004, OK met its employment demand largely by population growth…demand largely by population growth…
Source: U.S. Bureau of Labor Statistics, U.S. Census Bureau
1.371.40
1.15
1.41
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Employment Working Age Population (18 & Over)
U.S.
OK
Average annual growth in employment and working age population, 1994-2004Percent
Working Age Population ProjectionOK
16+ 65+ 16-642004 2,720,601 461,329 2,259,2722005 2,733,466 464,645 2,268,8212006 2,747,673 468,588 2,279,0852007 2,761,503 473,878 2,287,6252008 2,774,759 480,945 2,293,8142009 2,786,428 488,422 2,298,0062010 2,796,813 494,966 2,301,8472011 2,806,395 502,155 2,304,2402012 2,815,775 515,880 2,299,8952013 2,825,433 528,871 2,296,5622014 2,835,825 541,041 2,294,784
……but also by increased labor but also by increased labor force participationforce participation
OklahomaUnited States
Source: U.S. Bureau of Labor Statistics
Non-metro Oklahoma may have an Non-metro Oklahoma may have an advantage: an untapped labor supplyadvantage: an untapped labor supply
Labor Force Participation Rates, 2000
50
55
60
65
70
Large metroareas
Smaller cities Rural areas
Pe
rce
nt
OK US
Source: U.S. Census Bureau
Issues
• Worker Shortages
• Skills Shortages
The Knowledge Economy
“Because technological advances have freed up companies from traditional business costs,
knowledge, skills, and experience
embodied in individualshave become more valuable than capital
equipment and even capital itself.”
- James Irvine Foundation
IT IS A NEW DAY
• Old – Industrial Economy
– Economies of scale
• (lower unit costs)
– Cheap labor & land
• (keep input costs as low as possible)
– Access to natural resources for product input
• (inputs had greatest transportation costs)
New – Knowledge Economy
• Smaller niches in global marketplace
– (little fish, but big pond)
– Knowledge labor applying technology-based solutions
• (heads not hands)
– Entrepreneurial emphasis (creativity, innovation, & flexibility key)
1. Skill Requirements are Increasing--Jobs are smarting up
•Need broader array of skills•Need for continuous upgrading of technical
--Changing workplace organization •Teamwork, creativity, problem- solving, adaptability--Technology
•Training needed to adapt to new technologies
--Increased need for basic skills and strong work ethic
•Strong academics skills for ALL!!!! •Motivation and responsibility•Self-esteem and confidence
Chart source: Council on Competitiveness
What’s changing?What’s changing?
• Labor Market – Enhanced Mobility of People – Loss of internal career paths and company commitments – Cultural barriers • Increased inequality – Wages related to educational attainment
• Chart Source: Council on Competitiveness
WHAT’S CHANGING?
OKLAHOMA EMPLOYER SURVEYS
2004 – 78% NEEDED WORKERS WITH HIGH SCHOOL
DIPLOMA
2006 – 71% SEE INCREASE IN NEED FOR WORKERS
WITH POST-SECONDARY CREDENTIAL OR DEGREE
Source: National Association of Manufacturers – The skills gap 2004
Why are manufacturers rejecting job applicants?
Inadequate basic employability skills – 69%
Inadequate reading/writing skills – 32%
Inadequate math skills – 21%
Inadequate oral communications skills- 17.5%
Source: National Association of Manufacturers – The Skills Gap 2004
Most Serious Skill Deficiencies Current Employees
Poor basic employability skills – 59%
Poor reading/writing skills – 32%
Inadequate math skills – 26%
Inability to communicate verbally- 25%
PRODUCTIVITY RISES WITH EDUCATION
• When education level is increased one-year, productivity rises:
• Manufacturing workers: 8.0%• Non-manufacturing workers: 13%
• When average educational attainment is increased by 10% (about one grade level):
• Firms experience a 8.6% rise in productivityNational Center on the Educational Quality of the
Workforce
USA Projected Employment By Education Level
Educational Band
Projected Employment
2007
Net New Jobs
(2007-2017)
Average Earnings
2007
% Total Employment
(2007)% New Jobs (2007-2017)
Advanced Degree 6,442,947 1,559,103 $88,639 3.7% 5.2%
4-year College Degree
28,672,368 6,171,171 $80,623 16.5% 20.6%
Tech-Some Post 14,680,694 3,319,873 $49,305 8.4% 11.1%
HS or GED & Some Experience
23,161,040 3,352,418 $50,040 13.3% 11.2%
HS or GED for Entry
37,931,763 5,300,947 $38,055 21.8% 17.7%
Less than HS Degree
63,244,115 10,312,306 $25,275 36.3% 34.4%
Total 174,132,926 30,016,818 $44,837 100.0% 100.0%
Source: Forecasts from Regional Dynamics, calculated by CREC
Oklahoma must ensure potential workers Oklahoma must ensure potential workers obtain the training necessary to succeedobtain the training necessary to succeed
Projected annual employment growth through 2012,by training needed by workers to become fully qualified
1.21.1
1.9
1.6
2.0
0.0
0.5
1.0
1.5
2.0
2.5
No degree, no workexperience
No degree, withwork experience
Associate orvocational degree
Bachelor's degree Graduate orprofessional degree
Per
cen
t
Source: U.S. Bureau of Labor Statistics
15 U.S. industries projected to 15 U.S. industries projected to ADD jobs the fastest through 2014*ADD jobs the fastest through 2014*
* Among industries with more than 100,000 employees* Among industries with more than 100,000 employees
Business servicesBusiness services
3. Management consulting services3. Management consulting services
5. Facilities support services 5. Facilities support services
6. EMPLOYMENT SERVICES6. EMPLOYMENT SERVICES
7. Office administrative services7. Office administrative services
13. Accounting, tax, & payroll services13. Accounting, tax, & payroll services
High-tech servicesHigh-tech services
2. Software publishers2. Software publishers
8. Computer systems design8. Computer systems design
Health and social servicesHealth and social services
1. Home health care services 1. Home health care services
4. Residential care facilities4. Residential care facilities
9. Outpatient & laboratory services9. Outpatient & laboratory services
10. Child day care services10. Child day care services
12. Offices of health practitioners12. Offices of health practitioners
15. Rehabilitation services15. Rehabilitation services
Education servicesEducation services
11. Other educational services11. Other educational services
14. Colleges & universities 14. Colleges & universities
Source: U.S. Bureau of Labor Statistics
15 U.S. industries projected to 15 U.S. industries projected to SHED jobs the fastest through 2014*SHED jobs the fastest through 2014*
* Among industries with more than 100,000 employees* Among industries with more than 100,000 employees
Nondurable manufacturingNondurable manufacturing
1. Cut and sew apparel mfg.1. Cut and sew apparel mfg.
2. Fabric mills2. Fabric mills
3. Basic chemical mfg.3. Basic chemical mfg.
6. Rubber product mfg.6. Rubber product mfg.
8. Synthetic materials mfg.8. Synthetic materials mfg.
13. Pulp & paper mills13. Pulp & paper mills
14. Petroleum & coal mfg.14. Petroleum & coal mfg.
Durable manufacturingDurable manufacturing 4. Industry machinery mfg.4. Industry machinery mfg.
5. Electrical equipment mfg.5. Electrical equipment mfg.
7. Foundries7. Foundries
10. Computer mfg.10. Computer mfg.
12. Metalworking machinery mfg.12. Metalworking machinery mfg.
15. Other machinery mfg.15. Other machinery mfg.
Natural resourcesNatural resources 9. Sawmills & wood preservation9. Sawmills & wood preservation
11. Crop production11. Crop production
Source: U.S. Bureau of Labor Statistics
U.S. and Oklahoma job growth is projected to U.S. and Oklahoma job growth is projected to be fastest among high-paying occupationsbe fastest among high-paying occupations
Projected Annual Job Growth by Average Pay
Through 2012
Source: U.S. Bureau of Labor Statistics
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Bottom Quintile(<$20,730)
Second Quintile($20,730-$25,270)
Middle Quintile($25,270-$33,350)
Fourth Quintile($33,350-$47,610)
Top Quintile(>$47,610)
U.S.OK
Oklahoma City is projected to have a Oklahoma City is projected to have a higher share of the long-term job growth higher share of the long-term job growth
Source: U.S. Bureau of Labor Statistics
Projected Annual Job Growth,2004 - 2014
(if area's industries grow at national rate)
1.15
1.05
1.14
1.231.23
0.95
1.00
1.05
1.10
1.15
1.20
1.25
1.30
US OK OKC Tulsa OK - All Other
Percent
SHIFT IN THINKING
FROM: OKLAHOMA HAS WONDERFUL, PRODUCTIVE WORKERS WITH A STRONG WORK ETHIC…
TO: OKLAHOMA HAS A HIGHLY SKILLED PRODUCTIVE WORKFORCE WITH A STRONG WORK ETHIC
Economic Development Depends on Talent Development and Management:
How do we get it? • Recruit it
• Retain it - Graduate Retention
• Develop it / Grow our Own
• Education/ Training Pipeline – Demand Driven education system – Demand occupations– Industry sector development
72
4238
29
12
71
100
16 4
9th GradeEnrollment
HighSchoolGrads
17.18.19 EnrolledDirectly
intoCollege
First-timeFull-timeDegreeSeekingCohort
RetainedAfter 1Year
GraduatedWithin 6Years
WithAssociate
Degree
WithBachelorDegree
Percent 93-94 Oklahoma 9th Grader’s Progression into High School and College (percent)
Fall 1997 College Freshmen
100%
42%
76%
30%
93-94 Oklahoma 9th Grader’s Progression into High School and College (number)
34,228
19,95618,244
13,884
5,550
33,645
2,1477,697
47,604
9th GradeEnrollment
HighSchoolGrads
17.18.19 EnrolledDirectly
intoCollege
First-timeFull-timeDegreeSeekingCohort
RetainedAfter 1Year
GraduatedWithin 6Years
WithAssociate
Degree
WithBachelorDegree
Fall 1997 College Freshmen
100%
76%
42% 30%
IMPLICATIONS FOR YOUNG OKLAHOMANS• ACE (END OF INSTRUCTION TESTS ARE THE LAW)
WITH INTERVENTION STRATEGIESWITHOUT INTERVENTION
• WHATEVER IT TAKESTUTORING, SUMMER, REPEATING,
ALTERNATIVE SCHOOL, APPLIED COURSES, • THE ALLIANCE, OHLAP, GEAR UP, YEAR 13,
SCHOLARSHIPS, ACADEMIES, (PRE-ENGINEERING, ADV. MFG, HEALTH, CONSTRUCTION, BIO-TECH,
• GETTING READY! O-3, 3-6, 1ST – 3RD, 4TH – 6TH, 7TH – 8TH , 9TH , 10TH – 13TH (GED PLUS POST SECONDARY)
• OKLAHOMA’S CAREER READINESS CERTIFICATE - OCRC• READY FOR COLLEGE, FOR WORK, LIFE
Measuring up: National Report Card on Higher Education (2004)
• Oklahoma has made notable improvements over the past decade in preparing young people for higher education.
• However, the state’s performance is weak in providing students with an affordable higher education, which may undermine its efforts to send clear messages to them about the importance of being prepared academically for college.
Measuring up: National Report Card on Higher Education (2004)
• Oklahoma has had a substantial decline in the percentage of working-age adults enrolling in college-level education.
• A smaller proportion of high school students enroll immediately in college.
• POST SECONDARY EDUCATION INCLUDES CAREER TECH APPLIED CREDENTIALS
• HEALTH CAREERS, ADV. MFG., FAST TRACK
Linear Movement of 2004 Oklahoma High School Graduates intoOklahoma Public & Private Colleges by County of Origin
Remediation Rates of 2004 Oklahoma High School Graduates asFall 2004 Freshmen in Oklahoma Public Higher Education
Remediation Rates of 2004 Oklahoma High School Graduates asFall 2004 Freshmen in Oklahoma Public Higher Education
State Per Capita Personal Income v. Share of AdultPopulation with Bachelor's Degree or Higher (2004)
$16,000
$18,000
$20,000
$22,000
$24,000
$26,000
$28,000
$30,000
$32,000
$34,000
$36,000
$38,000
15% 20% 25% 30% 35% 40% 45% 50%
Percentage of Adult Population with a Bachelor's Degree or Higher
Per
Cap
ita
Inco
me
Source: U.S. Census Bureau, ACS 2004
NV
MTIDLA
AL
TNIN
KY
AR
MS
WV
CT
MA
DC
NMSDTX NE
ORKS
UT
CA
HI
MNNY
WAVT
CO
NHVA
MDNJ
ND
IA
OH
WY
GA
FLME
RIAK
DE
IL
AZSCNC
MO
MI PA
WI
OK
From 2000 to 2004, Oklahoma increased in the number of bachelor’s degrees for Oklahomans age 25 and older from 20.2 to 22.2 and from 47th to 42nd in the state rankings.
16.3% - 23.3%
23.6% - 29.7%
30.5% - 37.4%
State Population Age 25 Years and Older with Bachelor’s Degree or Higher, 2004
22.223.6
33.7
25.6
28.3 24.3
21.5
EMPLOYMENT OUTCOMES REPORT
Certificate Assoc. inAppliedScience
Assoc. inArts/Science
Bachelor Master Professional Doctoral
94% 94%89% 88% 89%
85%82%
73%
47%
61%
48%
33%
42% 41%
Oklahoma Employment by Residency Status and Level of Degreefor 2003-04 State System Graduates
After One Year Non-Resident
Resident
EMPLOYMENT OUTCOMES REPORT
Certificate Assoc. inAppliedScience
Assoc. inArts/Science
Bachelor Master Professional Doctoral
80%82%
73%
65%70%
59%
67%
N/A
20%
11%
22%
13%
21%16%
Oklahoma Employment by Residency Status and Level of Degreefor 1999-00 State System Graduates
After Five YearsNon-Resident
Resident
EMPLOYMENT OUTCOMES REPORT
“Give a man a fish; you have fed him for today. Teach a man to fish; and you have
fed him for a lifetime”—Author unknown
Average Salary of 1999-00 Bachelor Degree Holders After Five Years:• Engineering ($49,150)• Computer Science ($47,568)
• Transportation ($46,738)
• Health professions ($44,773)
• Engineering technologies ($41,537).
Which of the following satisfaction measures were found to be
correlated to Academic success? 1. Classroom Instruction 2. Number and Variety of Course Offerings 3. Grading Practices and Policies 4. Number and kinds of tests given 5. Guidance Services provided by Guidance Office 6. School Rules, Regulations and Policies 7. Library or Learning Center 8. Laboratory Facilities 9. Provisions for Special Help in Reading, Math, etc10. Provisions for Academically Outstanding Students11. Adequacy of Programs in Career Education Planning12. Overall Rating of High School
Which of the following satisfaction measures were found to be
correlated to Academic success? 1. Classroom Instruction 2. Number and Variety of Course Offerings 3. Grading Practices and Policies 4. Number and kinds of tests given 5. Guidance Services provided by Guidance Office 6. School Rules, Regulations and Policies 7. Library or Learning Center 8. Laboratory Facilities 9. Provisions for Special Help in Reading, Math, etc10. Provisions for Academically Outstanding Students11. Adequacy of Programs in Career Education Planning12. Overall Rating of High School
• Enable people with at least two years of college to finish a bachelor’s degree
• Flexible and accelerated schedule to meet the needs of working adults
• Curriculum designed to ensure that students are prepared to succeed in the workplace
Adult Degree Completion ProgramProgram Design
• Involve multiple learning environments. • Common curriculum and offered at multiple locations.• Developed by faculty from participating universities.• Will be approved through academic processes.
There will be a greater need to:
• Upgrade the skills of workers at all levels: existing, transition, emerging workers
• Retrain middle income existing workers• Upgrade skills of low wage and low-skilled
workers• Retrain middle age and seniors• Retrain AND REEMPLOY dislocated workers• Retain and Retrain Exiting Military
There will be a greater need to:
• Retrain retirees
• Continuous development of innovative skills through lifelong learning
• Increase percent of disabled workers
• Transition offenders into workforce
• Increase of dropouts recovered and high school completion success
Desired State:
The State of Oklahoma will have a labor pool which is:
• Competitive: SKILLED, HEALTHY• Advances the economic objectives of
the state and local communities, • Meets the employment interests of
industry clusters and employer groups.
1970’s 1990’s 2010
Implications• Application, application, application
– Of Math– Of Science
• New technologies• Current and emerging Industries
– Aerospace/ Manufacturing/ Energy/ Health Care– Biotechnology/ Nanotechnology
21st Century Curriculum
• Analytical and problem solving skills
• Business organization and environment
• Communications skills
• Core hardware/ Software computer skills
• Project and process flows
• Content (engineering, accounting etc.)
• Oklahoma State of the Workforce Report
21st Century Employability Skills• Communication• Organization• Team contribution and leadership• Team collaboration • Critical thinking and decision making• Self-directed and continuous learning• Customer relations • State of the Workforce Report
SOFT OR JOB SUCCESS SKILLS
• SOCIAL SKILLS IN THE WORKPLACE• APPROPRIATE WORKPLACE BEHAVIOR• ANGER MANAGEMENT• TRANSPORTATION, HOUSING AND
WELLNESS AS FACTORS IN JOB SECURITY• AVOIDING DESTRUCTIVE BEHAVIOR• COMMUNICATION SKILLS• PROBLEM SOLVING AND FLEXIBILITY
ResultsConnecting the dots between workforce
and economic development across all levels so that we -
LEAVE NO WORKER BEHIND!
Retain & attractmore graduates
Produce moregraduates
Partner withbusiness
Attract new,high-qualitybusinesses
Employgraduates
OUR YOUTH COUNCIL ISSUES
• DECREASING THE MIDDLE SCHOOL AND HIGH SCHOOL DROPOUT RATE
• GREATER LEARNING SUCCESS• INCREASE THE NUMBER OF YOUTH
PREPARED FOR HIGH DEMAND/HIGH SKILLED JOBS
• SUCCESSFUL INTERVENTION STRATEGIES THROUGH YEAR 13
• INCREASE GRADUATE RETENTION RATES• EMPLOYER ENGAGEMENT IN EDUCATION• COMMIT TO FACT BASED DECISION MAKING• TWO-YEAR STRATEGIC PLAN (3 PRONG)