1. United States High Growth Industry Initiatives Gregg Weltz Director of Youth Services U.S. Department of Labor XIV Inter-American Conference of Ministers of Labor (IACML of the OAS)

2. Why Do We Need Demand-Driven High Growth Strategies? Responding to the challenges of the 21 st century economy Evolving to help workers upgrade skills to open up opportunities in high growth industries Helping American businesses compete in the global marketplace

3. Evolution of the Economy When the workforce system was first created: –U.S. was an industrial economy –Labor was virtually interchangeable –Cyclical layoff and hiring patterns –Work required just a High School diploma

4. Evolution of the Economy Now in a knowledge economy – specialized skills are needed –90% of the fastest growing jobs will require education and training past high school –32% of U.S. labor force has a Bachelor’s Degree or higher

5. Evolution of the Economy Less than High School High School Grad Some College Assoc. Degree 4-Year Degree and Higher Employm ent Growth (thousan ds) -12987177380723 Average Weekly Earnings $479$660$767$812$124 3 Unemplo y-ment Rate 8.5 % 5.0%4.5%3.7%2.7% Source: BLS Current Population Survey 2004

6. What is Demand Driven? Knowing where the jobs are – both new jobs and current jobs that may be changing Knowing the skills and competencies necessary to do those jobs Understanding the labor market context Strategic investment of $5 billion public workforce system resources Working collaboratively with business and training providers to develop workforce solutions

7. Transforming the Workforce System Through the stages of economic evolution, the workforce system has always operated outside the other economic structures of a community. –Little or no interaction with area employers –Minimal contact with existing education institutions; instead created own cottage industry of job trainers –No coordination with economic development Each of these issues are now being addressed by national initiatives such as President’s High Growth Job Training Initiative (HGJTI)

8. President’s High Growth Job Training Initiative (HGJTI) Involved employers from leading sectors of the economy in the design and development of training programs. Used existing education resources such as community colleges. Invested over $285 million in 150 projects that develop education and training solutions to specific workforce challenges.

9. High Growth Definition “High Growth” includes... –Industries with significant job growth –Industries that are critical to the nation’s economic viability and development –Industries that significantly impact the growth of other growth industries –New and emerging industries –Transformed by technology requiring significant changes in the workforce skill sets

10. Targeted Industries Advanced Manufacturing Aerospace Automotive Services Biotechnology Construction Energy Financial Services Geospatial Technology Health Services Hospitality Information Technology Retail Trade Transportation

11. HGJTI Initial Steps HGJTI began with tiered approach. Key initial steps before financial investment are: –Identification of high growth, high demand industries –Industry Scans –Industry Executive Forums –Workforce Solutions Forums –Investments in Workforce Solutions Addressing Industry Identified Challenges

12. HGJTI Funding Initially distributed funds through unsolicited proposals that were innovative and responded directly to issue areas defined by industry. HGJTI moved to competitive funding opportunities in targeted, industry sectors. –Designed to provide incentive to the workforce investment system and other partners to drive demand-drive, innovation workforce solutions at state/local levels.

13. Dissemination strategies for HGJTI Products Website (www.workforce3one.org)www.workforce3one.org ETA’s 2007 Workforce Innovations Conference – Distribute CD of 125 products to all 3,000 participants. Partnership with League for Innovation in Community Colleges and American Association of Community Colleges to distribute CDs to all 1,900 community colleges. Industry promotion of products

14. HGJTI Products* Curriculum Course Materials Career Ladders Career Guidance Replication Guides * Distributed on CDs

15. Outcomes and Performance Assessment: –Grantees report on number of individuals trained –ETA moving to collect the data required by the Workforce Investment Act (common performance measures – job placement, retention, and earnings) –Grantees reporting on impact of all capacity building products, models and activities –Two-Phase Evaluation –Collection of Anecdotal Information

16. HGJTI Evaluation Part 1 – Focuses on Implementation and Sustainability for 20 early HGJTI grantees Part 2 – Analysis of early impacts of training provided by six HGJTI grantees

17. Top Factors Determining Employer Site Selection* 1. Availability of skilled labor 90.9% 2. Labor costs 89.9% 3. Tax exemptions 88.2% 4. State and local incentives 88.0% 5. Highway accessibility 86.6% 6. Corporate tax rate 84.6% 7. Proximity to major markets 83.7% 8. Occupancy or construction costs 82.4% 9. Energy availability and costs 80.9% 10. Environmental regulations 76.7% * Area Development Magazine 2002 Survey

18. Innovation Economy Economic development must now establish the conditions for innovation. Three requirements for innovation: –Infrastructure (transportation, technology) –Investment (availability of capital) –Talent These conditions should be maximized at the regional level, where the forces of the economy combine to spur growth.

19. Overall WIRED Goals Create and implement a regional strategy that will: 1.Establish and build a regional identity across political jurisdictions. 2.Leverage and align public and private investments. 3.Transform the regional economy through innovative and effective talent develoment.