21 st Century Job and Talent Development in SE MN

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1 21 st Century Job and Talent Development in SE MN April 2013 Randy Johnson Executive Director Workforce Development, Inc.

2 Mission & Strategic Goals MISSION - To develop and advance the workforce of southeastern Minnesota To build a pipeline of higher skilled workers to meet business demand. To align business, workforce, education, human services and economic development policies and programs to grow a healthy local economy. To build the capacity of the workforce development system to respond to local needs.

3 Unemployment Map

4 Jobs Changing Rapidly The Skills Gap Jobs lost to cyclical change 49% 21% Jobs lost to structural change 51% 79%

5 Employment Change SE MN Industry Clusters and Segments 40.0% Employment Size as a Function of LQ and Employment Change Social Assistance 30.0% 20.0% Business Support Services Merchant 'Wholesalers Agriculture 10.0% Retail Stores Gambling Hospitals Nursing Homes Clinics 0.0% -10.0% Chemical Mfg Wood Product Mfg. Composites Trade Contractors Auto Service Truck Transportation Education Gas Stations Food and Bev Stores Fabricated Metal Product Mfg. Glass Mfg. Food Mfg % Printing -30.0% Computer/Elec. Mfg % Location Quotient

6 SE MN Economic Sectors

7 Notes on Living Wage Job Growth In the 4 th Quarter of 2012, SE MN posted the largest number of job openings in 7 years but only ½ of the openings were full time The median wage for all openings was just $10.84/hr. Only 40% of the openings offer health care benefits (1,850 jobs) In nearly every case, the jobs that offered healthcare require post-secondary education Only 15% of all openings required a 4-year degree (700 jobs) A single person working full time must earn $11.46/hr to meet basic needs.

8 Occupations in Demand Healthcare Healthcare is the fastest growing sector for full time, living wage employment in SE Minnesota Clinics 31.5% increase Hospitals 36.5% increase Home Healthcare 120.2% increase Elderly Care 70.5% increase

9 Occupations in Demand Manufacturing Highest growth occupational groups are in advanced/precision manufacturing Automation technology Machine technology Welding Mechanical design Production technology All require some post-secondary education or extensive on-the-job training and pay above average wages

10 Occupations in Demand Information Technology Demand for occupations in the IT field is high for all major occupational groups and all require post secondary education - Science & Engineering - Information & technology - Infrastructure & systems - Management & administration Employment in computer systems design has now equaled the peak of 2001 Nationally, it is estimated that over half of the new growth in high-tech careers over the next 10 years will be that of independent consultants

11 Energy Occupations in Demand The U.S. has a target of producing 20% of its electrical energy needs using wind power by 2030 The state of MN is the 4 th largest producer of electricity through wind energy Highest Demand Energy Jobs Avg. Wage Education Industrial Engineering tech $19.07/hr. 2-yr degree Mechanical engineers $33.75/hr. 4-yr degree Nuclear engineers $49.86/hr. 4-yr degree Welders $17.71/hr. Graduate certificate Industrial machine mechanics $20.71/hr. On-the-job training

12 Occupations in Demand Agriculture Jobs related to agriculture are in unusually high demand in SE MN and essential to the region s competitiveness Technological changes require ag technicians and operators to have advanced skill training

13 Occupations in Demand Agriculture Ag science occupations in high demand Service technicians Mechanics Food science technicians PhD level scientists in food, soil and animal science Agricultural loan officers and sales people A wave of retirements is expected to hit the industry

14 Hot Jobs List Career Information Sites Job Information Sites Job Listings Sites Labor Market Information

15 New Economic Pyramid (in 10 years if all goes well)

16 Challenges to Employers-Population Projected Growth in Working Age Population in SEMN,

17 Challenges to Employers-Retirements In 2008, there were 30% more people reaching the age of 62 than those in There are now more people over age 60 than there are people under age 20. Baby boomers will retire at the rate of 10,000 per day and will continue for 20 years until 70 million have left the workforce.

18 Challenges The to Employers-Skills Gap Gap 1. Finding good workers 2. Training workers for the job Employers need to identify the differences between the required and the existing skill levels in order to close the skills gap.

19 Hierarchy of Jobs Technical Skills Soft/Critical Skills Basic Skills

20 Critical Skills 1. Allocation of Time 2. Working with Money 3. Allocation of Material and Facility Resources 4. Allocation of Human Resources 5. Acquire and evaluate information 6. Organize and maintain information 7. Interpret and communicate information

21 Critical Skills 8. Use Computer to Process Information 9. Develop Team Work Skills 10. Able to Teach Others 11. Customer Service 12. Exercise Leadership 13. Negotiation Skills 14. Work with Cultural Diversity

22 Critical Skills 15. Understand Systems 16. Able to Monitor and Correct Performance 17. Improve and Design Systems 18. Selective Use of Technology 19. Application of Technology to a Task 20. Maintain and Troubleshoot Technology

23 Critical Skills STEM skills are a huge, critical factor for the success of most businesses in our area Caring and customer service skills are next on the critical list for our region

24 Technical Skills Traditional Machine Operators Set up Operate Tend Measure Dexterity Steadiness Strength

25 Technical Skills Mechanical Engineering Technicians Design Analyze Interpret Critical Thinking Active Listening Reasoning Deductive and Inductive Oversee Installation

26 Education for Careers 70% of Minnesota Jobs Will Require Education Beyond High School by 2018

27 Education Pays Source: Bellevue University

28 Key Guidelines for Post-Secondary Ed The Skills Gap 1. Ensure that the college and the specific program of study is fully accredited and recognized by industry as essential. 2. Ensure that your program of study requires an internship with an outside business in order to complete. 3. Never borrow more funds for your entire college education than you could expect in gross earnings from your 1 st year of working post graduation.

29

30 Randy Johnson Executive Director

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