The Job Market Current and Future Trends Source: Industry Workforce Needs Council

Population Differences  Up to 78 million Baby Boomers will be retiring from the U.S. workforce  Only 40 million from “X” and “Y” generations will be available to replace them

Skills Gap Workplace will require advanced technical skills through high tech developments Current workforce skills need updating to keep up with changing demands Future workforce needs to be prepared for upcoming trends

By % of fastest growing jobs will require training beyond high school 31% of small business owners and 41% of manufacturers can’t fill jobs Production costs in China will be equal to the U.S.

On-Shoring  Increased wages in China  Increased shipping costs due to oil prices  Natural gas in Asia costs 4 times more than US  Decreased quality  Expensive and time consuming having engineering separate from production  Tax credits/government incentives

Education Challenges  Teacher shortages (particularly CTE)  Scheduling obstacles = less time for CTE  Academic achievement focus  4-year degree mentality  Reduced funding  Lack of parental support  Disconnect with industry (esp. manufacturing)

Employer Challenges  Negative perception of industry  Employee market  Employees being recruited by competitors  Education steering students towards degree  Lack of time  Employees lacking in technical skills and/or soft skills

College by the Numbers 100 students enrolled in a four year institution -35 drop out first year (35%) don’t complete (37%) 41 complete (It took 19 students 6 years to complete a bachelor’s degree) -What happened to the other 59 students? -Average $30,000 student loan debt (1.1 trillion total) Source: USA Today

What is Registered Apprenticeship  A centuries old concept of “EARN and LEARN”.  A U.S. Department of Labor program in partnership with businesses and labor organizations. The National Apprenticeship Act of 1937 authorized the Federal government, in cooperation with the states, to oversee the nation’s Apprenticeship System.  Provides on-the-job training and industry-specific classroom education producing highly skilled workers.  Minimum 144 hours a year related classroom instruction.  Programs range from 1-5 years (2,000-10,000 OJT hours)

What is Registered Apprenticeship  Pathway to a career.  Creates beneficial programs for both apprentices and their employers.  Training programs tailored to the needs of the industry or organizations.  Range in size from one apprentice to hundreds.  Apprenticeship Programs can be set up as time-based, competency-based, and/or a combination of both. competency-based, and/or a combination of both.

Registered Apprenticeship by the numbers  Over 1200 occupations recognized by the USDOL.  Approximately 500,000 apprentices nationwide, 2500 in KY.  Over 250,000 employers have RA programs.  150 Individual and Joint Sponsored Programs in KY representing over 1000 employers  70% Non-Union 30% Union  40% Construction Related  Corning, Dana, Dow Corning, Gibbs Die Cast Mazak, Jim Beam Brands, LG&E, Phillips Lighting, Martinrea, nth works, Reynolds Metals, Stober Drives, IBEW, IEC, Pipefitters, Carpenters, Iron Workers, Sheet Metal Workers, Messer Construction, Davis H. Elliot, Co., Inc

Highly Skilled Workforce  All Registered Apprenticeship programs are based on industry standards, and apprentices earn nationally recognized certifications upon completion

Registered Apprenticeship in KENTUCKY  Administered by the Labor Cabinet  Part of the strategic plan of the Kentucky Workforce Investment Board  Partnerships with Office of Career and Technical Education, KWIB, Kentucky Community and Technical College Systems, Kentucky Career Centers, Cabinet for Economic Development, Education and Workforce Development Cabinet, Adult Education, Job Corps, YouthBuild, Local WIB’s

Example… Stober Drives, Inc. Manufacturer in Maysville, KY –Electrical Technician –Machinist –Maintenance Mechanic –Salesperson Parts –Accounting Technician

Why Apprenticeships?  Kentucky initiative to model the European ideal of apprenticeship  Industry-driven “Grow Your Own” approach  Earn as you learn; no student loans  Nationally recognized journeyperson certificate  Highly skilled employees  Reduced turnover/increased productivity  Can be used for new hires, in-house employees, and/or pre-apprenticeship students

Why Pre-Apprenticeship?  Infrastructure in place using CTE  No costs involved  Provide a foundation for employer to build upon  Provide a pipeline of skilled graduates for local industry  Students have a good base knowledge and an interest in the occupation

How it works…  Employer registers apprenticeship program with Labor Cabinet  Employer works with school to identify students/selection process  Employer chooses at least 4 courses; one course needs to be a co-op  Employer determines if student completes successfully  Student to receive industry certification; on-the-job hours are credited  Post-secondary requirements determined by employer

Pre-Apprenticeship: The Employer’s Advantage  Employer selects students for program  Employer selects courses  Employer selects post-secondary requirements  Employer develops a loyal employee  Works with any number of trainees  Grant/tax incentives

Pre-Apprenticeship: The Student’s Advantage  Student will get paid for on-the-job training; no student loans  Student’s on-the-job hours will count toward apprenticeship (comparable to dual credit)  Student will receive an industry certification  Student’s successful completion will result in acceptance in apprenticeship program  Student will become a journeyperson and receive a portable credential that is recognized nationally  Appeals to hands-on learner

Pre-Apprenticeship: The District’s Advantage  Preparing students for the workforce  Industry certification will be measured in College and Career Ready accountability index  Students will be a completer based on Kentucky’s Perkins plan  Promotes positive partnerships with local businesses and community  Helps create and retain local jobs for students  Engages the hands-on learner

Industry Certification List  Successful completion of the TRACK program serves as a Kentucky approved industry certification for Career Readiness

HURDLES  Obstacle: Parents, educators, and students not aware of apprenticeship benefits  Solution: Marketing, outreach, career pathways  Obstacle: Need to increase number of registered apprenticeship programs  Solution: 1) Employer buy-in 2) Federal assistance  Obstacle: Negative perception of apprenticeships  Solution: Awareness and education

HURDLES  Obstacle: Working with students under 18  Solution(s):  YES agreement- Youth Employment Solutions with Adecco  Youth education waiver  Look at alternate insurance carriers who allow youth education opportunities; pay for a policy rider  District to employ student; reimbursed by company

TRACK Record! Pilot Year- 100% of students placed in apprenticeship programs! Manufacturing available statewide school year Skilled Trades agreements in development Potential for expansion into ‘non-traditional’ occupations

Making TRACKS! Cabinet for Economic Development using to promote KY in recruiting new businesses The Labor Cabinet invited to Washington, D.C. for youth apprenticeship panel Tax credits and incentives

Join the race and help students win! Click on TRACK logo