Developing Wisconsin s Talent Pipeline

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1 Developing Wisconsin s Talent Pipeline Manufacturing Matters 3/1/2018 BJ Dernbach Assistant Deputy Secretary Department of Workforce Development

2 Presentation Overview Economic Update Labor Force Projections Talent Development Strategies Budget Update Career Creator Closing and Questions

3 State of Wisconsin s Economy State unemployment rate at 3% in December 2017 tied for the lowest rate on record. Sizes of state s labor force was at an all-time high in December 2017 Most recent monthly jobs data showed Wisconsin added 43,500 private-sector jobs from Dec. 16 to Dec ,500 manufacturing jobs were added from Dec. 16 to Dec. 17 Statement from Sec. Allen: Wisconsin's economy continues to perform exceptionally, with our unemployment rate decreasing to 3 percent, tied for the lowest rate on record, and our total labor force and employment once again reaching all-time highs. As we move forward, we will continue to develop comprehensive plans and programs that prepare all individuals, regardless of age, education and barriers to employment, to enter into one of the thousands of gainful employment opportunities Wisconsin has to offer."

4 Wisconsin Labor Force Participation Rate Consistently Above US

5 Labor Force Participation Rate Changes as the Baby Boom Generation Ages

6 Long Term Projections of Manufacturing Industries ( )

7 DWD Talent Development Strategies Expand demand driven workforce models at the state, regional and local level High-demand CTE programming & credentialing in K-12 schools and tech colleges Further align partners, resources & networks to support economic development, business expansion/attraction strategies Enhance workforce strategies and funding models

8 Skilled Manufacturing Talent Shortage an International Issue Germany The economics ministry estimates a chronic skills shortage costs the economy up to $27 billion a year. The education system s inability to produce the skills needed by export industries could inflict long-term damage. China Companies already having a hard time finding enough skilled workers to fully operate factories. With one child policy that problem will become far more serious. Japan A rapidly aging population and a low birth rate 80 percent of employers experience difficulty finding qualified talent (Manpower)

9 Addressing the Skills Gap Work Based Learning and Training Youth Apprenticeship Registered Apprenticeship Wisconsin Fast Forward Worker Training Grants WisConnect Internship Portal Division of Vocational Rehabilitation Services WiscJobsForVets Website Job Center of Wisconsin Website and In-Person Services

10 Youth Apprenticeship Statewide School-to-Work initiative since 1991 One-year or two-year program Combines 180 hours/year of related technical instruction with mentored onthe-job training Students work a minimum of 450 hours/year being paid at least minimum wage Available to ALL youth in participating school districts

11 Registered Apprenticeship Industry-driven model Combines on-the-job learning with job-related instruction Earn and Learn Flexible can be customized to meet the needs of any business Apprenticeship is used in more than 1,000 occupations to meet business needs for qualified workers Apprenticeship leads to higher performance outcomes in employment, retention, earnings and credential attainment

12 Youth & Registered Apprenticeship, Bridging Talent Development Programs Bridge

13 Youth & Registered Apprenticeship, Bridging Talent Development Programs State sponsored Youth Apprenticeship (YA) to Registered Apprenticeship (RA) career pathway or "Bridge" Provides seamless transition for high school students into registered apprenticeship and gainful employment Completed Bridge program crosswalks in manufacturing include: YA Program RA Program Work Hour Credit Recommendation YA Manufacturing RA Machine Tool Trades Credit of 50% - 100% YA hours to RA hours Machining Unit YA Manufacturing RA Industrial Manufacturing Credit of 0% - 75% All units except Welding Technician YA hours to RA hours Welding Welding Fabricating Credit 50% - 100%

14 Wisconsin Fast Forward Created worker training grants to prepare workers for jobs available today and in the years to come Grants are available to support employer-led worker training Demand-Driven: Must include employers with a skill demand for new/existing workers Over 20,000 employees have gained additional skills enhancements

15 WisConnect College students who intern for a Wisconsin company are more likely to stay in the state after graduation, making internships a valuable workforce retention strategy that will continue our work to strengthen Wisconsin s workforce. To help shape the internship program, seven listening sessions were held throughout Wisconsin with over 300 attendees in the fall of Developed WisConnect at InternshipWisconsin.com: Website to connect employers and interns Resource library for businesses on providing internships Resource library for students on job search skills

16 Division of Vocational Rehabilitation (DVR) DVR s mission: Assist individuals with disabilities obtain, maintain, and advance in employment WI DVR customers: 15,000+ people who want to work and the businesses that want to connect to their talent

17 WiscJobsForVets

18 Job Center of Wisconsin

19 Wisconsin s State Budget Workforce Development Highlights CTE Incentive Grants totaling $3.5 million in each year of the biennium $5 million in 1 st year of biennium for Technical College Workforce Training Grants $1 million in grant money to fund creation and operation of mobile classrooms to provide those reentering the workforce from correctional institutions the training needed to succeed $11.5 million in Wisconsin Fast Forward grant funding and increased flexibility to fund additional projects and programs Grants from DWD s workforce training grants appropriation to support school district s technical education programs Continued full funding of DWD s DVR to support integrated employment for individuals with disabilities

20 Governor Walker s Career Creator Initiative $5 million for College Head Start expanding dual enrollment course offerings $7 million for Scholarships for Training and Education to address the need to match high demand employers with open positions with workers with the necessary credentials $2 million for Flexible Technical College Funds to maximize workforce participation by helping to recruit, retain and successfully credential hard-toserve populations $6 million for the Upskill Initiative Launching Sector Centers, launching Middle School Youth Apprenticeship, purchasing mobile job centers, preparing the incarcerated population for the workforce, upskilling military veterans and more

21 Questions? BJ Dernbach

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