1. State Of The Workforce 2005 Workforce Dilemma Research assistance: CERC and DataCore Partners

2. State Of The Workforce 2005 Q uantity A shortage of people in the labor force Q uality An even bigger shortage of today’s most needed work skills

3. East Haddam Haddam South Central Connecticut Workforce Investment Area East Hampton Portland Cromwell Middletown Meriden Middle- field Chester Deep River Essex Old Saybrook West- brook Clinton Killing- worth Durham Wallingford Madison Guilford Branford North Branford East Haven New Haven West Haven Orange Milford Wood- bridge Bethany Hamden North Haven = CTWorks One-Stop Career Center = Community College Campus = Adult Education at Work Site

4. Regional Snapshot VariableDateNumber% CT Population2003720,79420.7 Land area2003766 mi 2 15.8 Businesses200435,21920.3 Jobs2003327,70220.0 Personal income2004$19.7 billion18.6 Individuals in poverty200058,11422.4 vs CT Population Density2003942 mi 2 130.9 mi 2 Unemployment rate*04/055.0%4.9% Median HH Income2003$55,293$57,838 * New Haven Labor Market Area

5. Three Critical Economic Trends Continue to Exert Significant, Adverse Impacts on South Central Connecticut

6. Critical Economic Trends Overall job growth in the 30 town South Central CT region has been flat to slightly negative for the past 15 years There has been a swing in job quality: jobs have been growing in low-wage industries and shrinking in high-wage industries Demographic change has resulted in an ever increasing share of the current and future workforce that lacks the requisite skills for success in the workplace

7. Job Growth Flat for Last 15 Years in South Central Connecticut Source: CERC

8. Connecticut Employment Dec 2003Nov 2001 Source: CT DOL In Thousands 1,639,700 Jobs 1,676,600 Jobs 1,700,000 Jobs Jul 2000Apr 2005 1,669,200 Jobs - 30,800 Total Jobs

9. Low-wage vs High-wage Job Growth Between 2001 and 2002 employment in the Region declined by 570, a loss of less than 0.2%---essentially, a stable employment base However, that figure hides a more troubling finding---the loss of 3,521 jobs in industries that pay above the average wage and the gain of 3,261 jobs that pay below the average wage

10. The Shift from High Paying Jobs in Middlesex and New Haven Counties Average Wage 2003 $58,042 Average Wage 2003 $38,937 Source: Economy.Com

11. The net effect is that the Region lost nearly $121.6 million in income for 2003. IndustriesChange in Employment 1990-2003 Annual Average Wage 2003 Annual Effect on Regional Income Manufacturing- 17,243$58,024- $1,000,790,926 Health Care and Social Assistance + 15,885$38,937$618,513,466 Educational Services + 5,954$43,788$260,694,047 Total Effect4,596- $121,583,413 Source: CERC & CT DOL

12. Net Change in # of U S Jobs 1963-1970 Source: PPI

13. Net Change in # of U S Jobs 1983-1990 Source: PPI

14. Net Change in # of U S Jobs 1992-2000 Source: PPI

15. Income required for Area Average Rentals Source: SCRCOG Municipality2 BR Avg. RentIncome Needed East Haven$933$37,320 Meriden$716$28,640 Middletown$856$34,240 New Haven$897$35,880 North Haven$925$37,000 Wallingford$856$34,240 West Haven$845$33,800

16. Income required for Area Average Rentals vs. Annual Salaries of CT Jobs w/Most Openings Municipality2 BR Avg. Rent Income Needed Job Title by Rank Annual Salary East Haven$933$37,320Retail Sales$24,111 Meriden$716$28,640Cashiers$17,901 Middletown$856$34,240Waiters$17,240 New Haven$897$35,880Reg. Nurses$53,934 North Haven$925$37,000Food Prep$18,405 Wallingford$856$34,240Clerks$26,570 West Haven$845$33,800Janitors$23,034 Source: SCRCOG & CT DOL

17. Annual Salaries of CT Jobs w/Most Openings Retail Salespersons$24,111 Cashiers$17,901 Waiters and Waitresses$17,240 Registered Nurses$53,934 Food Preparation and Serving Workers$18,405 General Office Clerks$26,570 Janitors and Cleaners$23,034 Customer Service Representatives$31,794 Nursing Aides, Orderlies, and Attendants$26,294 Freight Stock and Material Movers$24,792 Teacher Assistants$23,323 Food Counter Attendants$17,485 Landscaping and Groundskeeping Workers$26,276 General and Operations Managers$99,844 Maids and Housekeeping Cleaners$19,866 Source: CT DOL

18. How many McJobs does it take to produce a social security check The current ratio of workers to retirees is 3-1 In August 2004 the average Social Security check was $926.90 The average worker at Wal-Mart is reported to earn $9.70 an hour with minimal benefits At this rate it takes almost 5 Wal-Mart workers to produce the average monthly check To produce the current maximum Social Security check of $1,793.61 it would take 9 workers Source: MSN

19. $5.15/hr Minimum Wage States Source: US DOL

20. Key Demographic Changes: 1990-2000 CT had the greatest relative decline in the 18-34 age group than any state in the nation - more than 200,000 fewer in 2000 – twice the national average CT ranked 45 th in total population growth in 2001 South Central CT population increased 21,821 – but foreign-born, Puerto Rican and U.S. Island Immigrants increased 30,114 offsetting what would have been negative growth for the region There are more people over the age of 62 than there are teenagers in CT

21. National Survey Data One-third of companies report poor reading and writing skills among hourly workers 80% of manufacturers report a moderate to severe shortage of qualified job candidates 40 million adults have limited literacy skills that make filling out a job application difficult 52% of high school graduates and 16% of college graduates have inadequate literacy skills Source: US Chamber, NALS and NAM

22. Future Workforce Entrants by Residence Most Affluent & Least Affluent

23. Ex-Offenders are an Increasing Share of the Workforce 5,051 ex-offenders were released to the South Central Region in 2003 Of those, 2,584 ex-offenders were released to New Haven – 215 per month – 54 per week Of estimated 630,000 offenders released in 2003 nationwide, 74.7% had been incarcerated for non-violent offences 92.7% of the current inmates are male 34% are between the ages of 22 to 30 Source: CT DOC, USDOL & NIFL

24. Workforce Turnaround If we don’t succeed, we run the risk of failure. J. Danforth Quayle I don’t intend for this to take on a political tone. I’m just here for the drugs. Nancy Reagan Three Ideas

25. Workforce Turnaround One Raise the legal age for leaving school to 18 years or issuance of a diploma

26. United States CTNon- Urban New Haven Other Urban Towns Individuals 25 Years and Older Without a High School Diploma or GED So Central CT Region

27. Workforce Turnaround Two Require literacy training for all prison inmates

28. Require Literacy Training for all Prison Inmates It is estimated that the majority of the inmate population are high school dropouts and at least 70% are functionally illiterate Every major study shows that recidivism rates decrease as the rate of educational program completion during incarceration increases The average daily cost of incarcerating an inmate in CT is $76/day - $27,740/year Providing literacy training to 70% of CT’s inmates would cost $3.22/day - $1,175/year Source: CT DOC, CT DOE & Public Private Ventures

29. Workforce Turnaround Three Provide full tuition to a CT state college or university for CT high school graduates who achieve proficiency in the CAPT, who have maintained a “C” average and whose family income is less than $45,000 per year

30. CT ranks 43 rd nationally in affordability for residents to attend 2-year institutions and 34 th for 4-year public institutions CT ranks 35 th nationally in the rate of African American and Hispanic high school to college completion CT Graduation Rates –UConn (Storrs)69% –UConn (regional campuses)42% –CT State University System38% –Community College System14%

31. Priced Out of a B.A. HIGH INCOME $75,000 and above LOW INCOME $24,999 and below 62%21% College-qualified High School Graduates Who Completed a Bachelor’s Degree - 2002 Source: Business Week

32. Percent of Households with Income Below $45,000 in 2000 United States CTNon-Urban Towns Other Urban Towns New Haven Source: U.S. Census Bureau

33. State Of The Workforce 2005 “Keep your tax incentives and highway interchanges; we will go where the highly skilled people are.” Carley Fiorina Former CEO Hewlett-Packard