The views expressed are my own and do not necessarily reflect official positions of the Federal Reserve System.

Overview The Shrinking Middle Class Collaborating with Industry to Build Talent Pipelines Banks Engaging in Workforce Development

The Shrinking Middle Class: Job Polarization in the United States High-Skill Occupations Traditional Middle-Skill Occupations Low-Skill Occupations THE VANISHING MIDDLE Job Polarization in the United States 25% 39% Percent of U.S. Workforce by Occupation Skill Level 61% 43% 14% 18% NOTE: Data are restricted to workers ages 16 to 64 who are not self-employed and are not employed in military or agricultural occupations. SOURCE: The original chart is from “The Vanishing Middle: Job Polarization and Workers’ Response to the Decline in Middle-Skill Jobs,” Didem Tuzemen and Jonathan Willis, Federal Reserve Bank of Kansas City, 2013. The original chart has been updated to begin in 1979 and end in September 2016. Data was provided by Didem Tuzeman.

Low Wage Jobs and the Shrinking Middle Class Low Wage Jobs and the Declining Middle Class NOTES: Calculations include workers over age 15 with positive wages and exclude the self-employed. Quartiles based on the Texas and US wage distributions from the 1980 decennial census, which refers to 1979 wages. SOURCES: 1980 Census; 2015 ACS; “Employment Growth and Labor Market Polarization,” Chapter 7, Ten-Gallon Economy: Sizing Up Economic Growth in Texas by Pia M. Orrenius Jesús Cañas and Michael Weiss, 2015. 

Low Wage Jobs and the Shrinking Middle Class Low Wage Jobs and the Declining Middle Class NOTES: Calculations include workers over age 15 with positive wages and exclude the self-employed. Quartiles based on the Texas and US wage distributions from the 1980 decennial census, which refers to 1979 wages. SOURCES: 1980 Census; 2015 ACS; “Employment Growth and Labor Market Polarization,” Chapter 7, Ten-Gallon Economy: Sizing Up Economic Growth in Texas by Pia M. Orrenius Jesús Cañas and Michael Weiss, 2015. 

Increasing Need for Higher Education in Current Economy NOTE: These data refer to the civilian workforce aged 25 and older. SOURCE: Center for Public Policy Priorities’ analysis of Current Population Survey iPUMS data, IPUMS-CPS, University of Minnesota, www.ipums.org.

TALENT DEVELOPMENT PIPELINES Aligning Education, Workforce and Economic Development Education Pathways Career Pathway System Career & technical education (diploma & certificate) Community & technical college (diploma & certificate) All sectors are critically important in this model Designs by

TALENT DEVELOPMENT PIPELINES Aligning Education, Workforce and Economic Development TALENT DEVELOPMENT PIPELINES Aligning Education, Workforce and Economic Development Education: Train & Pray Career Pathways

Career Pathways: Guided Pathway Systems Aligning Education, Workforce and Economic Development Career & technical education (diploma & certificate) Community college (diploma & certificate) Designs by

CAREER PATHWAY SYSTEMS Aligning Education, Workforce and Economic Development GUIDED PATHWAY SYSTEMS Aligning Education, Workforce and Economic Development Linked and aligned programs that have well-connected education, training and support services informed by employer needs Multiple entry points, or on-ramps including for those with limited education, English, skills, and work experiences (i.e., bridge programs) Multiple exit points at successively higher levels of family-supporting employment and aligned with subsequent entry points Career Pathway System SOURCE: “Shared Vision, Strong Systems: Alliance for Quality Career Pathways, Framework Version 1.0,” Center for Law and Social Policy, June 2014.

TALENT DEVELOPMENT PIPELINES Aligning Education, Workforce and Economic Development TALENT DEVELOPMENT PIPELINES Aligning Education, Workforce and Economic Development Workforce Development: Unemployment Services Sector Partnerships

SECTOR PARTNERSHIPS SECTOR PARTNERSHIPS Convener Aligning Education, Workforce and Economic Development SECTOR PARTNERSHIPS Aligning Education, Workforce and Economic Development Convener Business Champions Employers Employer Champions Business Table Designs by

SECTOR PARTNERSHIPS SECTOR PARTNERSHIPS Community Partners Convener Aligning Education, Workforce and Economic Development SECTOR PARTNERSHIPS Aligning Education, Workforce and Economic Development Community Partners Community Colleges K-12 Universities Convener Business Champions Employers Employer Champions Adult Basic Education Business Table Community-Based Organizations Economic Development Organizations Workforce Solutions Designs by

TALENT DEVELOPMENT PIPELINES Aligning Education, Workforce and Economic Development TALENT DEVELOPMENT PIPELINES Aligning Education, Workforce and Economic Development Economic Development: Tax Breaks for Large Firms Industry Clusters

Industry Clusters Designs by

Brazos Valley High Growth Industries Advanced Manufacturing Construction Healthcare Education Government Energy Retail/Hospitality Technology

TALENT DEVELOPMENT PIPELINES Aligning Education, Workforce and Economic Development Education Pathways Career Pathway System Career & technical education (diploma & certificate) Community & technical college (diploma & certificate) Designs by

Career Pathways Education Pathways Designs by Career Pathway System Career & technical education (diploma & certificate) Community & technical college (diploma & certificate) Designs by

Career Pathways Education Pathways Designs by Career Pathway System Career & technical education (diploma & certificate) Community & technical college (diploma & certificate) Designs by

SOURCE: “An Assessment of Current and Future Workforce and Training Needs in the Research Valley Education Analysis Area,” The Perryman Group, August 2016.