Why Oklahoma Must Address the Skills Gap. Vision. Data

Transcription

1 Why Oklahoma Must Address the Skills Gap Oklahoma has a substantial skills gap in its workforce. As we look to the year 2020, the state s greatest challenge will be increasing the students with workforce credentials and/or associates degrees, as well as increasing college graduates. Currently, 46 percent of Oklahomans have a high school diploma or less; 31 percent have some college/workforce credential/associate s degree; 16 percent have a bachelor s degree; and 8 percent have a post-graduate degree. In 2020, the state s labor market will demand 23 percent of the workforce with a high school degree or less; 49 percent with some college/workforce credential/associate s degree; 24 percent with a bachelor s degree; and 4 percent with a post-graduate degree. This equates to a 23 point gap between our current workforce and the skilled workforce necessary for 2020 (only 5 years away). For Oklahoma businesses to meet labor demands and for Oklahoma citizens to maintain wealth building occupations, we must understand the new minimum for success requires a post-secondary degree or credential. Governor Fallin created Oklahoma Works to address this crisis. Vision Governor Mary Fallin s vision is to implement wealth-generating policies so all Oklahomans can achieve the American Dream. To accomplish this vision, the Governor s Council for Workforce and Economic Development will coordinate strategic priorities and plans across education, training and economic agencies to increase alignment of the entire education and training pipeline. Data The Governor s Council for Workforce and Economic Development has created metrics that will be the foundation of the Governor s Council Dashboard. This dashboard will allow the use of data to inform policy, track progress and measure success as an overall statewide measurement. State Workforce Partners, departments and agencies impacting career readiness, are developing metrics for targeted wealth generation. The State will launch OklahomaWorks.gov that will serve as a comprehensive platform for education and workforce assets statewide including job openings, degree and credential requirements, and relevant education and training programs.

2 Partnerships The Governor s Council for Workforce and Economic Development is being empowered to build industry and education partnerships and to generate wealth for Oklahomans. The Council is comprised of business leaders from every region and ecosystem, as well as key representatives from the Governor s Cabinet, state agencies, labor associations, workforce entities and advocacy organizations for the underserved. Regional private business leaders and regional State Workforce Partners staff will lead Key Economic Networks (KENs) to provide regional and statewide qualitative data on local economies and foster regional partnerships. Key Economic Networks (KENs) will identify local and regional challenges to wealth generation and will develop locally based solutions through business leaders, economic development organizations and regional agency partners. Each concern will be presented and discussed at monthly State Workforce Partners meetings to find solutions. Resource and Incentive Goals The State Workforce Partners will establish an annual review of funding sources and incentives provided by federal, state and local sources. In addition, State Workforce Partners will chart the effectiveness of federal and state funding used by the State s education, workforce and economic development system. Performance funding for Oklahoma s Higher Education and CareerTech Systems should be prioritized to improve post-secondary outcomes.

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4 Projected Workforce Demand High School Sufficient Associates/Certificate/Credential Bachelors and Above Expand OK's Economy Maintain Growth Aerospace & Defense AD 2025 Ag Bio AG 2025 Energy E 2025 Info & Financial Services I&F 2025 Transportation & Distribution T&D

5 VISION Governor Mary Fallin s vision is to implement wealth-generating policies so all Oklahomans can achieve the American Dream. To accomplish this vision, the Governor s Council for Workforce and Economic Development will coordinate strategic priorities and plans across education, training and economic agencies to increase alignment of the entire education and training pipeline in support of Oklahoma s five wealth generating ecosystems.

6 Oklahoma s Ecosystems Driver Systems Aerospace and Defense Agriculture and Bio Energy Information and Financial Services Transportation and Distribution Complementary Systems Construction Health Care Education Creative Industries

7 DATA The Governor s Council for Economic and Workforce Development has created metrics that will be the foundation of the Governor s Council Dashboard. This dashboard will allow the use of data to inform policy, track progress and measure success as an overall statewide measurement. State Workforce Partners, departments and agencies impacting career readiness, are developing metrics for targeted wealth generation. The state will launch OklahomaWorks.gov as a comprehensive platform for education and workforce assets statewide including job openings, degree and credential requirements, and relevant education and training programs.

8 WEALTH Wealth Generation Measure OK US Per capita personal income (% of US) Per capita disposable income (% of US) Median household income Median net worth Income poverty rate Per capita income maintenance % of households with savings account Homeownership rate Gini Index Note: Green categories are moving toward the goal, yellow categories are not moving, and red categories are moving away from the goal.

9 EMPLOYMENT Employment Growth Measure OK US Nonfarm total employment annual growth rate Ecosystem employment 1.9 Low-wage jobs Average annual wage Small business ownership rate Microenterprise ownership rate Unemployment rate (quarterly rolling average) Labor underutilization U-6 (quarterly rolling average) Youth unemployment rate (16-19) Note: Green categories are moving toward the goal, yellow categories are not moving, and red categories are moving away from the goal.

10 Workforce Participation Measure OK US WORKFORCE Labor force annual growth rate Labor force participation, total HS degree and higher Associates degrees Bachelors degree and higher Persons above 18 and under Note: Green categories are moving toward the goal, yellow categories are not moving, and red categories are moving away from the goal.

11 PARTNERSHIPS The Governor s Council on Workforce and Economic Development is being empowered to build industry and education partnerships and to generate wealth for Oklahomans. Regional private business leaders regional and State Workforce Partners staff will lead Key Economic Networks (KENs) to provide regional and statewide qualitative data on local economies and foster effective regional partnerships. KENs will identify local and regional challenges to wealth generation and develop locally based solutions through business leaders, economic development organizations and regional agency partners. Each concern will be presented at monthly State Workforce Partners meetings to find solutions.

12 State Workforce Partners State Department of Education Department of Career and Technology Education State Regents for Higher Education Key Economic Networks (KENs) Board of Private Vocational Schools Regional Businesses Governor Mary Fallin Governor s Council on Workforce and Economic Development Employment Security Commission Department of Rehabilitative Services Department of Human Services Oklahoma Department of Health HealthCare Authority Economic Development Orgs. Local Economic Developers Chambers of Commerce Regional Medical Providers Workforce Investment Boards Department of Mental Health and Substance Abuse Services Private Vocational Schools Department of Corrections Regional State Workforce Partner Staff Office of Management and Enterprise Services

13 RESOURCE and INCENTIVE GOALS The State Workforce Partners will establish an annual review of funding sources and incentives provided by federal, state and local sources. In addition, the State Workforce Partners will chart the effectiveness of federal and state funding for education, workforce and economic development systems throughout the state. Performance funding for Oklahoma s Higher Education and CareerTech Systems should be prioritized to improve postsecondary outcomes.

14 Goal and Targets # of classes $ per person # trained BEFORE Old Method Used by Oklahoma: Only measured programs and activities Oklahoma s New Goal = Wealth Generation Targets = Steps to achieve goal Measures = System performance Data = % ready for career/college % engaged in workforce # employed in critical occupations % increase in income/disposable income Private Sector and System Partner Activities Career Readiness Workforce Participation Employment Growth Wealth Generation