1 Washington State’s Perspective: Strategies for Economic Stabilization and Renewed Economic Growth René Ewing Governor’s Special Assistant for Management and Quality Improvement December 6, 2001

2 Overview Our economy, our challenges How we’re using training resources to respond How we’re sustaining public-private partnerships How we’re maintaining progress in difficult times

3 Software and Jets drive Washington’s economy (2000 Annual Average) Source: Employment Security Department, LMEA 4.7%16.1%

4 The state’s rate of nonagricultural employment growth has slowed Source: Employment Security Department, LMEA 10-year Average September to September change - Seasonally Adjusted

unemployment rate rose at year’s end, projected to remain high 2002 Forecast Source: Employment Security Department, LMEA Seasonally Adjusted

6 Our challenges Respond to structural changes in economy, i.e., aluminum and pulp and paper industries, Boeing, dot.com bust Respond to cyclical nature of economic downturn

7 How are we responding? Washington has a better safety net than many other states: Red Flag report and rapid response teams Worker Retraining Program Training Benefits Program Short-term customized training WorkSource one-stop system on the web:

8 Red Flag report, rapid response Red Flag report Provides status of projected and actual dislocations Sent twice monthly to workforce investment councils, key state agencies Rapid response Teams active in all areas of the state Takes services to employers before layoffs

9 Worker Retraining Program Annually budgeted for 5,400 FTEs at two-year colleges, 550 FTEs at private career schools Results: Increasing enrollment in high-wage programs High post-program wage recovery, employment Program represents 13 percent of colleges’ workforce training FTEs

10 Training Benefits Program For dislocated workers enrolled in full-time training Up to 52 weeks of unemployment insurance benefits Dislocated aerospace, timber and fin fishing workers eligible for 74 weeks of UI benefits

11 Short-term customized training Pilot program Short-term, employer-based training Designed to avert dislocation $1.3 million to workforce development councils this program year

12 WorkSource one-stop system – past six months Number of resume postings, job searches, job applications increasing Number of jobs posted, resume searches declining Most ever number of user sessions in October – 106,399 Significant community partnerships including state’s two-year colleges

13 Our strategy in current situation: Use resources effectively May be additional federal money in economic recovery package Governor and state’s community and technical college system are working to add training capacity at two-year schools Need for additional training will increase pressure on our two-year college system

14 After the recession, we’ll still have a skills shortage to address Labor force growth is slowing We’ll continue working with business and industry so they we are positioned to meet their needs How? Supporting key industry clusters

15 Attending to our future: youth We want to help young people focus on their future career Partner with the K-12 system on new program standards for career and technical education Example of success – Pierce County Careers Consortium

16 Sustaining public-private partnerships Continue our industry cluster strategy Funding eight more skill panels this year Community and technical colleges responding to business needs Governor’s Competitiveness Council making recommendations on human capital

17 Maintaining progress in difficult times Strengthen partnerships with workforce development councils Encourage councils to use strategic management tools Develop good incentive policies