Careers in Quality January 21, 2011 Purdue University Calumet Robyn Minton Vice President of Operations Center of Workforce Innovations

Careers in Quality The Recession and Recovery A look at Northwest Indiana Challenges and Opportunities Ahead Recent Developments in Quality Questions and Answers

The Recession: Rapid increase in unemployment rate Sharpest rise in post-WWII era Slow or no recovery in the job market Few large layoffs recently, but little hiring activity Nationally, job openings have increased 29% since July 2009, but still 1.1 million less than in December 2007 Source: Bureau of Labor Statistics

Industry Projections Fastest growing: professional and business services, health care and social assistance More than half of projected job growth between 2008 and 2010 will come from these industries Among professional and business services, management, scientific, and technical consulting firms projected to be fastest-growing Manufacturing projected to continue declines, but at slower pace Projected increases in overall output for goods-producing industries (mining, construction, and manufacturing)

Occupation Projections Replacement and Job Turnover will create more openings than job creation Increasing regulations and push for accountability will drive demand for: Accountants Auditors Management Analysts 4 in 10 new business and financial operations jobs will be one of these three jobs

Northwest Indiana Economy is more diverse Manufacturing no longer the largest source of jobs National trends in our Region Increases in health care, professional and business services industries

Source: Economic Modeling Specialists, Inc. Complete Employment – 1 st Quarter 2010

Northwest Indiana’s Industries Employment by Industry in Northwest Indiana Source: Indiana Department of Workforce Development

Northwest Indiana Average Annual Labor Force Estimates (Not Seasonally Adjusted),

Northwest Indiana & Chicago

The Chicago Connection Source: Local Employment Dynamics, U.S. Census Bureau

Earnings Per Worker by Industry 2010 Average Earnings Per Worker in NWI Utilities $101,338 Construction$61,370 Manufacturing$83,016 Transportation$56,659 Information$41,213 Government$45,956 Management of Companies$84,720 Health Care$44,197

Northwest Indiana: Steel #1  Earnings $ 1,546,647,000  Sales $13,276,512,000  Average Weekly Wages $ 1,538  Jobs Multiplier 3.77  Earnings Multiplier 2.26  Jobs 17,460  Sales Multiplier 1.50

Challenges Ahead Transforming Northwest Indiana to a knowledge economy Capitalizing on top resources (location, location, location)

One of the strongest predictors of income growth in metropolitan areas over the past decade is the level of education of the local population. Source: The Young and Restless in a Knowledge Economy - Joseph Copyright, Impresa Consulting 2005

Knowledge Equals Earnings

Knowledge Worker Shortage?  Other countries are turning out larger numbers of post-secondary trained workers, particularly in technology fields.  900,000 engineers graduate in China each year.  300,000 engineers graduate in the U.S. each year.

One half of one percent (0.5%) of the population in China with the highest IQs Is greater than the population of Indiana In India, it is the top 0.6% of the population

Did you know? Sometimes size does matter... In 2016 China will soon become the #1 English speaking country in the world

Knowledge Worker Shortage?  In the next 20 years, large numbers of skilled workers will retire.  Too many of those coming into the workforce lack basic skills and motivations for post-secondary learning, particularly in technology fields.

High School Graduation Rates in Northwest Indiana, School Year

Northwest Indiana Adult Literacy  10% of residents in Northwest Indiana live in households where a language other than English is spoken.  40% of adults in Northwest Indiana cannot read above Literacy Level 2.

Adults in Need of Adult Education and Training (Ages 18-64) 2008 Total Population = 848,305 People Served Through Adult Education – 4,629 No High School Diploma 73,293 Less Than Level 3 on Adult Literacy 339,322 No College Education, Speak Little or No. English 324,476 Total Target Population – 339,322

Action of the Northwest Indiana Workforce Board and WorkOne  Developing programming and providing resources for training based on specific employer expectations  Leading regional task force to develop adult education system

Action of the Northwest Indiana Workforce Board and WorkOne  Providing information to all schools on employment expectations  Utilizing evidence-based programming to improve high school outcomes  Increasing resources to employers to encourage hiring and training

Recent Developments in Quality Control Demand for Lean Talent outpacing Six Sigma (Avery Point Group, 2009) Companies might prefer Lean over Six Sigma Almost half of companies surveyed prefer candidates with skills in both Lean and Six Sigma

Fastest Growing Industries: Professional and Business Services Health Care and Social Assistance More Regulations, Accountability  Management Analysts in demand Hot Industries in Chicagoloand/Northwest Indiana: Nuclear Energy, Pharmaceuticals Other Goods News: Length of Unemployment down Recent Developments in Quality Control

What Can You Do?

Northwest Indiana Workforce Board Vision: A NWI workforce that is highly skilled, motivated and diverse, earning sustainable or higher wages and actively engaged in skill advancement and life long learning. Mission: To mobilize and integrate the leadership, services and resources of the community to support workforce development. Center of Workforce Innovations, Inc. Vision: To stimulate and sustain community growth and global competitiveness through the optimal utilization of talent. Mission: CWI is a catalyst for community and business investment in workforce, education, and economic development to build and enhance collective capacity to succeed in a new global economy. Robyn Minton