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1 Overview of Presentation PA Overview & CWIA Products/Services Workforce Investment Act Cost/Benefit Study Workforce Data Quality Initiative Update Sue Mukherjee Director, Center for Workforce Information & Analysis February 06, 2013 Only through strong linkages and enhanced collaboration among education, economic development, business and workforce partners will we increase our return on investment... and increase the business community s satisfaction with the education and workforce development systems. Carnevale, A. and Fry, R.A., The Economic and Demographic Roots of Education and Training 1

2 PA and US Pennsylvania Labor Market Data United States Labor Market Data 6 million employed million employed 517,000 unemployed 12.2 million unemployed 7.9% unemployment rate 7.8% unemployment rate 61,000 jobs lost since start of recession 4 million jobs lost since start of recession 355,000 business establishments 9.2 million business establishments 5.0% of workforce aged % of workforce aged million students 36.6 million students 172,000 online job postings 4.4 million online job postings Total PA Jobs, 5.8 million Total US Jobs, million 2

3 What L&I Produces Career Products Products that help students/jobseekers and educators determine skills and education for a job, find training opportunities, build career awareness through data Examples: PA Career Guide, PA Career Coach (career exploratory web-tool), Ten Year Occupational and Industry Projections Economy Products Data, analysis, or studies about some focused aspect of the economy Examples: Minimum Wage Report, Workforce Needs Assessment Report (for Reemployment or Economic Development), Input/output Analysis, Performance Measures, Profile of the Unemployed, High Priority Occupation model, SEWN model Labor Market Products Data, analysis, or studies of broad labor market trends or outcomes Examples: Fast Facts series (Pennsylvania FF, Marcellus Shale FF, Workforce Investment Area FF), Pennsylvania Economic Outlook report, Employer Job Posting Analysis, Industry Cluster Report

4 Workforce Investment Act (WIA) Cost/Benefit Study 4

5 Cost-Benefit Analysis of WIA Guiding Questions: What is the economic value created by WIA participants in Pennsylvania? What is the cost-effectiveness of WIA programs? How is WIA performance influenced by the Pennsylvania economy? What impact does regional workforce spending have in the local economy with respect to both income and jobs? Advantages: Study will go beyond the standard performance measures to assess cost-effectiveness of WIA programs Set a baseline criteria to measure, monitor, and improve future performance 5

6 Employment & Training Programs (Federal) 6

7 WIA Participants by County ($1,900 cost per participant) CRAWFORD 560 MERCER 771 LAWRENCE 693 BEAVER 528 WASHINGTON 718 GREENE 193 ERIE 833 BUTLER 660 ALLEGHENY 3,518 VENANGO 217 FAYETTE 1160 WARREN CLARION FOREST WESTMORELAND 1, ARMSTRONG 496 JEFFERSON INDIANA SOMERSET 685 MCKEAN ELK 477 CAMBRIA CLEARFIELD 641 BEDFORD 586 CAMERON BLAIR POTTER 154 CLINTON CENTRE 1224 HUNTINGDON FULTON MIFFLIN FRANKLIN TIOGA 200 JUNIATA 244 LYCOMING PERRY 364 ADAMS 631 1,042 UNION 434 SNYDER 525 CUMBERLAND 1,267 DAUPHIN 915 YORK BRADFORD 1, SULLIVAN 36 COLUMBIA 1,178 MONTOUR 212 LANCASTER 1,787 LUZERNE SCHUYLKILL 1,217 SUSQUEHANNA WYOMING 98 NORTHUMBERLAND 1,709 LEBANON 595 1,647 BERKS LACKAWANNA CARBON 363 LEHIGH CHESTER ,169 WAYNE 160 MONROE 872 NORTHAMPTON 1027 BUCKS 1,225 MONTGOMERY 1,036 DELAWARE 1,119 PIKE 165 PHILADELPHIA 8, ,360 1,361 3,518 3,519 8,370 7

8 Cost-Benefit Analysis of WIA What is the economic value created by WIA participants in Pennsylvania? Example*: The adult program is projected to yield an added value of $3.27 in income per dollar spent on the participant. (Higher the amount, more effective the investment.) What is the cost-effectiveness of WIA programs? Example*: It costs $2,840 to place an adult participant into employment and $3,400 for them to retain employment for six months. Understanding what impact regional staff and operational spending have in the economy with respect to both income and jobs Example*: Every dollar of payroll at the region yields $0.92 in income in the economy. Every full-time employee at the region yields an additional 1.11 jobs in the economy. Timeline: Data collection by March 01, 2013 Draft report by April 15, 2013 Final Report by early May 2013 * Examples not specific to Pennsylvania; used from similar study for demonstrating deliverables from project only 8

9 Workforce Data Quality Initiative (WDQI) 9

10 1 0 Workforce Data Quality Initiative Grant: Pennsylvania Department of Labor & Industry was awarded a $1 million WDQI grant in June 2012; three year period Agencies Involved: Pennsylvania Departments of Labor & Industry (L&I), Education (PDE), and Public Welfare (DPW) Goals: (1) Link welfare, workforce, and education program data at an individual level (building on work done by Statewide Longitudinal Data System grant that linked education data at an individual level); (2) Allow for analysis (at the aggregate level) that ties welfare, education, workforce data to make better informed policy and funding decisions.

11 PHASE 3 (August 2014 to June 2015) 1. Develop roles/responsibilities in use of a federated data system and assure data security and system sustainability 2. Conduct analysis that ties welfare, education, workforce, labor market data 1 1 Three Phases (2012 to 2015) PHASE 1 (July 2012 to July 2013) 1. Establish organization structure 2. Develop policy questions to guide data linkage between programs/agencies 3. Refine prioritized policy questions (to align to datasets being linked; refine questions to make them specific and actionable) 4. Assess technical architecture needs for project 5. Conduct research: of established WDQI systems (Florida, Louisiana, Virginia, Washington); on best practices for identity matching (SLDS) 6. Establishing interagency agreements PHASE 2 (August 2013 to July 2014) 1. Develop federated longitudinal data system connecting workforce, education, and welfare data

12 1 2 Select WDQI Policy Questions What educational and training programs lead to long-term employment and self-sufficiency? What is the return on investment of education/training programs? What is the wage differential for individuals before/after postsecondary education? What is the educational attainment of individuals that receive public assistance? Do workforce program outcomes vary by educational attainment? What programs graduates have the highest rate of employment within 3 and 6 months of graduation?

13 1 3 Technical Architecture: A Federated System What Is a Federated System? One database (WDQI) that connects multiple autonomous databases (Education, Workforce, Welfare) In the federated database, identifiable information is captured but not seen or shared to ensure that privacy is protected A federated database is subject to all federal and state education, workforce, and welfare laws.

14 Technical Architecture: Data Matching Hub PDE L&I DPW Basic Education CTE Higher Ed CWDS UC Wage Record New Hire Early Childhood TANF 1:1 Automated data matching process WDQI Index Links

15 1 5 Example: Business Intelligence Platform Select Workforce Indicators of Population by Educational Attainment Educational Attainment of PA's Labor Force HS Dropout HS Graduate CTE Associate Degree Bachelors Degree Professional Degree Average Length of time from Graduation/Completion to Job Placement Percent Receiving a Welfare Benefit (Medical Assistance, TANF or SNAP) Average Wage (or Average Annual Salary) Percent of Individuals Working in the Field of their Degree/Training Unemployment Rate

16 Thank you! Questions?? Sue Mukherjee Office: Mobile:

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