New Jersey’s Health Care Cluster Aaron Fichtner, Ph.D. Assistant Commissioner, New Jersey Department of Labor and Workforce Development Ashley Conway, Senior Policy Analyst, State Employment and Training Commission Sandy Lopacki, Coordinator, New Jersey Healthcare Talent Network at Rutgers University New Jersey Partnership to Build a Strong Health Care Workforce

2 Key Principles for Talent Development Grounded in an understanding of the workforce needs of industries Connected to other workforce and education intermediaries Connected to economic development efforts, when appropriate Focused on using data to inform program and policy decisions

Understand Talent Needs Develop Strategy Implement Programs

Understand Talent Needs Develop Strategy Implement Programs Industry Focused Labor Market Intelligence

Labor Market Information as a Tool to Inform Talent Development Strategies Talent Development Strategy Transaction Indicators Employer Feedback Industry / Occupation Data Education / Training Data

New Jersey Health Care Highlights There are roughly 21,300 establishments employing about 421,000 people of all ages, genders, races, and educational backgrounds in New Jersey in 2010 From 1990 through 2010, the health care sector has added 164,700 new jobs, while all other private sector employment has had a net decline of 11,100 jobs Health care is the only industry that has added jobs in the state every year from 1990 through 2010 while increasing its share of jobholding from 7.5 percent in 1990 to 11.3 percent in 2010

The health care industry has been the driving force of employment in New Jersey over the last two decades From 1990 through 2010, the health care sector has added 164,700 new jobs, while all other industries combined have had a net gain of only 54,700 Employment in Ambulatory Health Care Services and Nursing and Residential Care Facilities has nearly doubled over the last 20 years Slow, and recently stagnant, growth in Hospital employment has led to it being the laggard among Health Care’s three major components (1990=100) Source: Current Employment Statistics

With employment surpassing 420,000, the health care sector accounts for over 11% of all employment in the state in 2010, up from 7.5% in 1990 Ambulatory Health Care Services surpassed Hospitals as the top employer in the Health Care sector in 2003, and has widened the gap every subsequent year Nursing and Residential Care Facilities, the smallest component, has grown more than three times the rate (3.1%) of Hospitals (1.0%) since 1990 Together, the three Health Care components have grown by 2.4% annually since 1990, compared to only 0.3% for total nonfarm employment and a job decline for all private sector excluding health care Source: Current Employment Statistics

60,925 Health Care Employment in Bergen County

The health care sector offers opportunities for employment for all levels of education and experience… Source: Occupational Employment Statistics Survey

Employment status and personal earnings of individuals in the health care industry Source: American Community Survey

Gender, racial, and ethnic profile of New Jersey’s health care work force Source: American Community Survey Females outnumber males by a 3 to 1 margin in the health care workforce The workforce is far more diverse than average, particularly among the black and Asian population The workforce has just slightly fewer Hispanics than average

From 2003 to 2009, the total number of degrees and certificates awarded has increased by 82% Source: Integrated Postsecondary Education Data System

The health care industry has steadily gained employment over the last 20 years and will continue that trend through 2018 Source: Current Employment Statistics New Jersey Industry and Occupational Projections Employment is still growing, but getting slower Grew by 3% per year during 1990s Grew by 2% per year during 2000s Projected to grow by 1.3% from There will still be many opportunities for employment as the industry struggles to increase workforce for growing demand while also replacing workers who will retire The health care cluster is projected to add over 56,000 jobs, and account for more than 45% of net job growth from

Understand Talent Needs Develop Strategy Implement Programs Health Care Workforce Council Industry Focused Labor Market Intelligence

The outlook for health care employment is bright. From 2008 through 2018, it is projected that more than 56,000 jobs will be added, an annual increase of 1.3 percent - NJ Dept. of Labor and Workforce Development Projected significant growth and critical shortages Fewer jobs available and unemployment in some health care occupations The outlook is bright, but… Expanding ambulatory and home care Constricting acute care provided in institutions

What health care jobs will be in demand? Trends Employer needs

National Health Care Reform and fundamental changes in how health care is delivered New health care technologies and knowledge Aging population with greater health care needs Current health Care workforce at or nearing retirement Rising costs and high utilization Severe economic downturn Moving from hospital-based care to community-based care Changes in reimbursement (who, what and where) and financial incentives Unemployment of licensed professionals and predicted critical shortages Trends that impact the health care workforce: ModelsPipelines Economics Potential health care coverage of 450,000 more NJ residents in 2014

Workforce Employers Education New Jersey Health Care Workforce Council The Health Care Workforce Council mission is to strengthen New Jersey’s health care workforce to support a sustainable, quality health care system for the good of the State and all of its residents. The Council makes recommendations to the State Employment and Training Commission to ensure quality workforce investments to meet the needs of health care employers for a highly-trained and diverse workforce, which will benefit individuals who are starting or advancing in health care careers.

Greater alignment of training and education with current and future workplace needs. Health care workforce issues being addressed by the Council: Need for greater collaborative learning linking fields/disciplines and transcending the isolation of silos. The need for shared, coordinated state health care workforce data that is meaningful and accessible. How will changes in health care delivery change the health care workforce? Clarify health care career pathways and improve career entry and up skilling. What is the current health care occupation demand and supply? What will be needed in the future? Pipelines Pathways Data Models

Coordinate Sector Resource Innovate Conduct outreach Cultivate relationships Link likely partners Facilitate communication between stakeholders Provide sector intelligence Qualitative data collection (employer needs) Identify and help mitigate barriers to workforce development Support partners’ initiatives Collect and seed best practices Initiate “short term fix” solutions and improvements to the health care workforce system New Jersey Health Care Talent Network To leverage workforce development resources to their fullest through coordinated communication, greater sector understanding, and the encouragement of innovation.

Speak with employers Systematically, regularly, often In forums where HR executives already go NJHA, Primary care association, Home care, ambulatory groups

Health Care Talent Network New, “work in progress” Collaborative Data-driven Innovative Pilot and share best practices

First steps Exploring ways to train coders for high demand IP positions Developing models for veterans to transfer training to credit in health care ed programs Planning summits with employers and university Careers Offices Testing concept of virtual job fairs

discussion