Aligning Education and Workforce Needs

Senate Higher Education and Workforce Development Committee March 5, 2013

Amy Walstien Minnesota Chamber of Commerce

The Minnesota Jobs Outlook

Between 2010 and 2020:
o Minnesota businesses will fill 1,031,000 job vacancies(1) 663,000 replacement jobs (retirements and vacancies)

368,000 new jobs due to economic expansion

o 70% of jobs in MN will require some level of postsecondary education(2)

o Minnesota will be one of five states leading the nation in jobs requiring postsecondary education/degrees(2)
Source: (1) Minnesota Jobs Outlook 2010-2020, Department of Employment and Economic Development (July 2012); (2) Georgetown Center on Education and Workforce Help Wanted: Protecting Jobs and Education Requirements through 2018 (2010)

Jobs Outlook Concerns Ahead

Labor force shortage
o 150,000 workers short of projected workforce needs(1) o Minnesota is NOT currently on track to produce workers with training to fill forecasted job openings Skills gap with incumbent workforce(2) o Strong academic background in core subjects o Technical competencies/hard skills o Soft skills
Source: (1) Tom Stinson Presentation to House Joint Education Committee (February 2013); (2) Deloitte, Manufacturing Skills Gap: Economic Implications and Strategies for Narrowing It (Dec. 2012)

Developing the Best Talent

Immediate Need:
Greater supply of workers with postsecondary education Long Term Goal:

Strengthen the educationto-workforce pipeline

Changing Levels of Education

Jobs Requiring:
Bachelors Degree Completed Postsecondary Degree/Credential

2010

Projected 2018

Change

31.5% 45%

36% 57%

+4.5 +12

Some Postsecondary (not completed) High School Graduate

Some High School

23% 24% 6%

13% 23% 6%

-10 -1 -

Source: (1) Lumina Foundation: A Stronger Nation Through Higher Education (2012); (2) Georgetown Center on Education and Workforce Help Wanted: Protecting Jobs and Education Requirements through 2018 (2010)

Minnesotas Completion Challenge

ONE: Increase the number of students coming out of K-12 education system, going into postsecondary TWO: Increase completion rates of students already enrolled in college THREE: Increase training efforts aimed at nontraditional students

FOUR: Improve college readiness of high-school graduates

Workforce Alignment Sessions

Spring/Summer 2012
GOAL: engage employers in developing projections for how many workers and professionals, with what kinds of skills, will be needed, for what kinds of jobs MnSCU + Minnesota Chamber + DEED

Over 50 employer-based sessions

Sector Reports Available:
http://www.mnscu.edu/business/workforceassessment/

Alignment Session - Key Takeaways

What Minnesota Employers Look For:
o Generally, employers want employees with broad knowledge that prepares them for work in their sector

o But many employers also need employees with very specific skill sets and training
o Growing number prefer to hire a worker with solid academic and communication skills and good work ethic AND provide the worker with on-the-job training and have the worker advance skills by enrolling in formal training

Alignment Session - Key Takeaways

What Minnesota Employers Said:
o Critical skills lacking in new hires, regardless of industry sector or geographic location

o Greater math aptitude needed (and applied math)

o Improvement also needed in basic literacy skills o Work experience is critical for students entry-level jobs, internships, apprenticeships, applied learning, etc.

Alignment Session - Key Takeaways

Broader Issues:
Rapid technological advances - difficult for education programs keep pace with training needs Stronger connection between high schools and higher education Employers felt data did not accurately reflect the real demand for workers (underestimated demand) Lack of awareness among students about high demand careers in Minnesota Need for snapshots of regional labor markets and related education programs

Step One: Enhance Labor Market Data

Itasca Project - Workforce Alignment Team
o Working to build enhanced labor market data system
Real-time labor market projections Help employers forecast hiring needs

o Recommendations forthcoming Spring 2013

Step Two: Supply & Demand Report

o Match DEMAND data with SUPPLY data o Help students and incumbent workers understand workforce demand areas o Identify programs and institutions producing degrees/credentials in the industries and regions where businesses are hiring o Assist higher education institutions in better aligning programs with states economic needs

Step Three: Use Data to Drive Training

Program Offerings
o MnSCU - using findings from Workforce Alignment Sessions to drive program offerings o Focus on scaling up programs in high-need/highgrowth sectors

Student Awareness
o Increase student demand for programs in highneed/high-growth sectors

What It Looks Like

Skills@Work developed Skills Profiles using existing data SF 899 would require similar reports statewide and regional on DEED website

Re-Cap What S.F. 899 Does:

o State and regional supply/demand reports, easily accessible on DEED website o MnSCU uses as one of its tools to drive alignment of programs with state and regional needs o Workforce Centers help incumbent workers find information on credentialing programs

Questions, Comments?
Amy Walstien Director, Education &Workforce Development Policy Minnesota Chamber of Commerce 651.292.4661 awalstien@mnchamber.com Twitter: @MCC_AWalstien