Workforce Developments

Required reading

From Hidden Costs to High Returns: Unlocking the Potential of the Lower-Wage Workforce
National Network of Sector Partners
August 2010

American companies tend to view their low-skill, low-wage workers as a disposable resource — necessary but transient, plentiful enough to hire and lose and hire again as needed. Like many forms of waste, this approach to human capital has the advantage of simplicity, but it’s loaded with hidden costs. Chief among these is the constant expense of recruiting and training new employees. But there are other costs, too, like the stunting of employees’ loyalty, ambition, and attention to quality. A culture of transiency, where paychecks don’t pay the bills and opportunities for advancement are few or nil, is one sure way to wipe out any incentive to perform above average, to push for excellence, to get the details right.

A growing number of companies, large and small, are investing in a different approach. These companies view the lower-skill workforce as a durable asset: a means of continually improving quality and a potential talent pool for higher-level positions.... Continue reading

Tuning In to Local Labor Markets: Findings From the Sectoral Employment Impact Study 
by Sheila Maguire, Joshua Freely, Carol Clymer, Maureen Conway and Deena Schwartz
Public/Private Ventures
July 2010

For American workers, having a high school or general equivalency diploma (GED) — which once represented a means of entrance to the middle class — is no longer adequate for finding steady employment. In fact, three quarters of low-wage workers have these qualifications but lack the relevant occupational skills and connections to employers needed to launch a career. At the same time, in some regions of the country there are persistent skills gaps clustered in particular industries, such as manufacturing and healthcare. Many of these jobs are expected to grow and require specific technical skills that can be gained only through focused training that is closely linked to the needs of local businesses.

Over the past two decades, an innovative approach to workforce development known as sectoral employment has emerged, resulting in the creation of industry-specific training programs that prepare unemployed and underskilled workers for skilled positions and connect them with employers seeking to fill such vacancies.... Continue reading

High school students recommend careers in early care and education

If you like kids and are looking for a rewarding career, I have some videos you might want to see.

High school students in an Early Care and Education High School Recruitment program in Los Angeles recently competed in a video contest promoting ECE careers. The students got some basic training on video production and Flip cameras, then were let loose to do their best.

Watch the winning entry here:

You can see all the entries on the ECEHSR YouTube channel. The ECEHSR Program is funded by First 5 LA. 

ECE as a career category isn't well defined across our traditional workforce development data collectors. The Bureau of Labor Stats projects employment for its Child Care Workers category to grow by 11 percent through 2018. O*NET shows Preschool Teachers as growing 14 to 19 percent in the same category, which is faster than average. 

Readers, if you're aware of other workforce-related video contests like this, please let me know. I'd love to highlight them here on the blog.

Sector initiatives: speak up on a new survey

The National Network of Sector Partners is doing another round of its biennial Sector Snapshots (2007 findings) survey. This is an opportunity to help advance knowledge of the field, while informing other sector practitioners about your program.

What is NNSP interested in learning about? Among other things,

How are sector initiatives adapting to the economic crisis?

How are sector initiatives funded, and in what ways has that changed?

What types of organizations lead (and support) sector initiatives?

In which industries do sector initiatives concentrate, and how has that changed?

Do organizations leading sector initiatives typically focus on just one industry or on several?

The world of workforce development sector initiatives has changed dramatically over the past ten years. The Sector Snapshots survey helps keep track of those changes.

To take the survey, click here. 

DOL rules for green jobs training grants

The Department of Labor's Employment and Training Administration (DOLETA) has just issued guidance on how it plans to use Recovery Act (ARRA) funds to make grants for green jobs training programs.

It's not a small chunk of change. Out of $750 million in the Recovery Act set aside for competitive grants for worker training and placement in high growth and emerging industries $500 million will be granted to projects preparing workers for careers in energy efficiency and renewable energy.

Training and Employment Notice (TEN) 44-08, as the guidance document is known, is available here. Info about all DOL grants is here. DOLETA's page on how it's using Recovery Act funds is here.  

DOLETA is expecting to make grants in five major areas:

State labor market information improvement grants. That means we get to do some background research before jumping into programs.

Energy training partnership grants. Looks like these are primarily for labor-management organizations or partnerships that include them. Some of these will be set aside for areas heavily dependent on the auto industry.

Pathways out of poverty grants. Targeting low income adults and youth, eligible parties will be community- and faith-based organizations or partnerships that include them.

State sector training grants. Sector initiatives hit the big time! Some of these funds will also be set aside for auto-dependent areas.

Green capacity building grants. Designed to build the capacity of current DOL grantees to "prepare targeted populations for employment in the energy efficiency and renewable energy sectors."

DOLETA expects to issue solicitations for grant proposals in June 2009 with application closing dates in the summer. So read up and get ready now.

Learn about sector initiatives from the pros: Become a Sector Skills Academy fellow

Applications are now being accepted for the 2009-2010 class of Sector Skills Academy.

As the Academy website explains,

The Academy provides emerging leaders with an opportunity for experiential learning with practical applications for present and future work in the sector field. The Academy consists of three workshops over roughly a 12-month period that allow participants to acquire new skills, engage in peer exchange and benefit from relationships with mentors. Faculty and mentors are drawn from experienced leaders in the field of sectoral employment development. As a result of participating in the Academy, fellows are expected to apply the lessons they learn in ways that enhance their work in their chosen sector.

The Sector Skills Academy is a joint project of The Aspen Institute Workforce Strategies Initiative, the National Network of Sector Partners, and Public/Private Ventures. Major funding is provided by the Charles Stewart Mott Foundation.

In related news, I'll be doing a webinar on web 2.0 and social media for current and past Sector Academy Fellows on April 30.

To learn more about the Academy, including a list of past fellows, or to learn more about sector initiatives, visit their website. 

New legislation to make sector initiatives part of the economic recovery

The SECTORS Act is back. With the economy in such dire shape and so many people out of work, and with ARRA stimulus investments on the way, I hope it gets more traction this time around.

According to this morning's announcement from The Workforce Alliance - who's been working hard on this legislation along with other workforce development experts -

The legislation would support "sector" or "industry partnerships," which allow businesses, unions, educators, and the public workforce system to develop and implement plans that help workers train for and advance in high-demand and emerging industries.

Senators Olympia Snowe (R-ME), Sherrod Brown (D-OH) and Patty Murray (D-WA) announced yesterday that they will reintroduce the Strengthening Employment Clusters to Organize Regional Success (SECTORS) Act. Over in the House, Congressmen Dave Loebsack (D-IA) and Todd Platts (R-PA) are introducing companion legislation.

TWA's announcement goes on to point out that

Industry partnerships are a proven strategy utilized for years in many states and communities but has never received congressionally authorized funding. These partnerships have successfully connected local residents to training for jobs in industries with skilled worker shortages.

I can remember a day when sector strategies (click here for a definition of the term) weren't as well known and certainly weren't as widespread in the workforce development world as they are today. To learn more about early development of the field and what was learned, check out this recent report from Public/Private Ventures: Targeting Industries, Training Workers and Improving Opportunities: The Final Report from the Sectoral Employment Initiative. More on P/PV's Sector Employment Initiatives is also available here.

Do you run a pre-apprentice program? Take the Aspen survey

This just in from the Aspen Institute's Workforce Strategies Initiative. If you run a program that prepares workers for construction trades apprenticeships, please take their survey. More info:

Last week, the Aspen Institute's Workforce Strategies Initiative released a census aimed at sector initiatives that people prepare for and connect to jobs in the construction industry.

The purpose of this census is to develop a better understanding of number of existing entry-level construction trades training programs (sometimes referred to as pre-apprentice programs), their size, geographic distribution, range of services, and capacity to serve low-income job seekers. This information is particularly important, given the recent federal investment in public works projects and green jobs.

So, if you provide construction-related training or employment services to job seekers, take about 20 minutes to respond. If you don't provide construction-related training or workforce development services but know programs that do, please ask them to respond. The survey is also accessible through the Aspen-WSI home page to anyone who would like to see a little background information before responding. All surveys must be completed by Friday, April 10th, 2009.

If you're interested in the results of the census – stay tuned! The results of the survey will be analyzed and a short paper highlighting the key findings will be written and shared with policymakers and practioners.

This project was funded by the Annie E. Casey Foundation. If you have further questions, feel free to contact Allison Gerber. 

To go directly to the survey, click here. I'll post a link to the results and findings when they're available.

Hammering Man vor Messeturm photo by Andrew Kohler

Mapping the workforce world of sector initiatives

Sector initiatives have been all the rage in workforce development in recent years. I've worked for several myself, so I've seen first-hand what effective programs can do to help people get good jobs.

If you're interested in getting a birds-eye view of sector initiatives, visit the National Network of Sector Partners' new map of sector initiatives across the country. It's searchable by state, industry and type of organization (such as One-Stop, union, or community-based organization).

Here's an image of the map. To get into the interactive tools, click here.

If you know of a sector initiative that isn't on this map but should be, get in touch with NNSP and let them know.

What is a sector initiative? Admittedly, it's a vague term, and different people mean different things when they talk about it. NNSP defines it this way:

Sector initiatives are regional, industry-focused approaches to workforce and economic development. They improve access to good jobs and/or increase job quality in ways that strengthen an industry’s workforce.

For more on sector initiatives:

• Website for the National Network of Sector Partners
• Research on sector initiatives, by the Aspen Institute
• Information about the Sector Skills Academy (applications available soon) 
• Previous coverage of sector initiatives on Workforce Developments
• Federal policy recommendations on sector initiatives, from The Workforce Alliance

Update on the stimulus: Senators talk about workforce provisions

In Friday's debate on the American Recovery and Reinvestment Act bill (H.R.1), Senator Patty Murray (D-WA), Senator Tom Harkin (D-IA) and Senator Debbie Stabenow (D-MI) engaged in a colloquy on the floor of the Senate.

They discussed the intent of various workforce development-related provisions in the bill, and talked about how they intend for funds to be distributed through the Workforce Investment Act system, and what their priorities are for those funds. Here are few highlights: 

Mrs. MURRAY. First, is it the Senator's understanding that the additional funding provided through the Workforce Investment Act formula grants for adults and dislocated workers will be used predominantly for the direct delivery of services to those who are the most heavily impacted by this recession--the unemployed and the underemployed?

Mr. HARKIN. Yes, the Senator's understanding is correct. I included a provision in this recovery bill that reinforces the requirement in the WIA to use adult State grant funding to serve certain priority populations, such as those with low incomes or on public assistance. I believe that we should target these funds on the delivery of services to those who have been adversely impacted by our recent economic crisis. I also believe local workforce boards should utilize existing authority to support needs-related payments to help engage individuals in training, if such support is appropriate and effective.

And later,

Ms. STABENOW. Is it also the Senator's understanding that the most effective strategies in helping workers maintain and secure new jobs in emerging and viable industries, including the energy efficient and advanced drive train vehicle industry, the biofuels industry, the energy-efficient building, construction, and retrofits industries, and the aerospace industry are those supported by strategic partnerships among State and local workforce boards; institutions of higher education, including community colleges and other training providers; labor organizations; industry; and economic development entities that use sector or cluster-based training approaches for developing job training strategies and career pathway initiatives that lead to economic self-sufficiency?

Mrs. MURRAY. The Senator from Michigan is correct and makes an important point. Effective strategies for helping workers retool for jobs in viable industries should be informed by the critical stakeholders she noted.

There's more, on youth programs, sector initiatives and community colleges and other training providers. You can read the full colloquy on pages 1796-98 of the Congressional Record.

Big thanks to the good folks at the National Center on Education and the Economy and to the California Workforce Association for distributing this info.

Wall Street slashes jobs - is the workforce system ready?

It's stunning to see just how many people are put out of work when one of these Wall Street titans collapses. The numbers can look like the populations of small towns. In some cases, the companies are bigger. Lehman Brothers had 28,600 employees in 2007. That compares to 28,351 people in Jackson, Wyoming, 21,296 in Hood River, Oregon, and 13,227 in Ketchikan, Alaska. If Lehman Bros. was its own micropolitan statistical area, it would be the 100th largest in the U.S.

Merrill Lynch, being bought out by Bank of America, is estimated to have some 64,000 employees (437 American towns have fewer residents). How many of those will still be employed after the dust settles is unclear. If the Bear Stearns buyout is any indicator, though, more than half the Merrill Lynch workforce will be pounding the pavements soon. That's on top of some 83,000 former bank and brokerage employees who've been laid off already.

Bank of America, Merrill's new boss, already has a payroll more than triple the size, with 210,000 employees.  They're bigger than Springfield, Illinois (pop. 207,361), Gainesville, Georgia (180,175) and Bangor, Maine (148,784).

AIG, rumored to be next in line for collapse, has 116,000 employees. Washington Mutual, another big bank at risk, comes in at 49,403 employees.

All this at a time when funding for our nation's workforce development system is being cut. Sure, some of these folks will be able to land jobs on their own. But not all of the people losing jobs are high flying MBA-trained traders. A lot of blue and pink collar workers will join the ranks of job hunters. That's not even counting the ripple effect through the rest of the economy.

If an entire American town were to go under, would the feds step in to help? If so, would they offer more than rapid response services?

Are we about to see a major restructuring of the American economy? Financial services has been promoted heavily as a high-growth job generator. As people leave that industry, what new jobs will they train for? And will we in the workforce system be ready?

Act now - tell Congress to pass SECTORS initiative

Late last month Senators Sherrod Brown (D-OH) and Olympia Snowe (R-ME) introduced a new bill to promote and fund sector-based workforce development initiatives. The purpose of the Strengthening Employment Clusters to Organize Regional Success (SECTORS) Act of 2008 is

to promote industry or sector partnerships that lead collaborative planning, resource alignment, and training efforts across multiple firms for a range of workers employed or potentially employed by a targeted industry cluster, in order to encourage industry growth and competitiveness and to improve worker training, retention, and advancement in targeted industry clusters.

You can read a summary here, a press release from The Workforce Alliance announcing the bill, or the full text of S.3368.

This is terrific news. As we know from earlier research by the Aspen Institute and others, sector initiatives are an extremely effective approach to increasing the skills of workers in a way that strengthens industry and communities.

Now we need to make sure the SECTORS Act gets passed. The Workforce Alliance, who spearheaded the legislation, is leading the charge to organize support. To send a letter to Senator Brown endorsing the bill on behalf of your organization, email TWA Senior Policy Analyst Kermit Kaleba at [email protected]. To send a letter directly to your senator, just click here.

Your future in geriatrics

My local public radio station, KPCC, had a great story yesterday about one medical specialty with a bright future: geriatrics. With the U.S. population aging, it's a growing field. Unfortunately, it's not "cool" and it doesn't pay as well as many other specialties.

Here's a quote from Dr. Michelle Lee about what she loves about geriatrics:

I really enjoy taking care of older people and I enjoy just what a geriatrician does, which is, you know, how you imagine a doctor to be: you get to know a person. You focus on the person, rather than, you know, this lab value, that lab value. You get to know their families.

Remember when going to the doctor was like that?

We're going to see a shortage of geriatric specialists soon. Fewer people are choosing the profession, while we're all growing older. It's not just doctors, but nurses, techs, aides, physical therapists and anyone else who provides medical care.

For that matter, it's not just medical care. A friend recently said she was thinking about starting a small business to provide personalized services like picking up prescriptions and groceries for folks living in two assisted living centers near her home.

In other words, careers helping people grow old with dignity are ones to keep an eye out for, both for you and your job seeking clients.

To read the KPCC story, click here. You'll find audio and other web links as well. For other pieces on solutions to the looming shortage of geriatrics caregivers, click to The Century Foundation and the Association of Professors of Medicine.

Shortage of skilled workers "our biggest challenge"

Last week the Aerospace Futures Alliance held a strategy retreat in Seattle to talk about what Washington can do to keep what aerospace production it has and lure more back to the state. The event was reported by Bryan Corliss in Washington CEO magazine.

Thanks to the aerospace industry, manufacturing is on the rise in Washington while it has been falling elsewhere in the country. According to Deloitte, aerospace accounts for 25% of manufacturing employment in the state. What will it take to keep the aerospace industry? At the top of the Alliance's list is investment in workforce development.

Short haul truckers in the news

A study I worked on for a client of mine, Port Jobs, was quoted in a Seattle Times article last week about short haul truckers in the Puget Sound region. Here's an excerpt:

But this is a particularly challenging time to be a driver. A 2006 study by Port Jobs, a Seattle nonprofit, found the average short-haul trucker at the Port of Seattle drove an 11-year-old rig, worked 11 hours a day and earned $31,000 a year. But that was two years ago — before cargo volumes dipped almost 10 percent and diesel prices nearly doubled to almost $5 a gallon. Most drivers do not have health insurance, retirement plans or paid vacation.

See the world - alternative career options

The merchant marine is looking for a few good men and women. A recent survey by the U.S. Department of Transportation's Maritime Administration found demand for merchant mariners has begun to outstrip supply.

What's a "merchant mariner?" These are the people who work on cargo and passenger ships that are registered in the U.S. While the majority of ships that transport goods internationally are flagged in countries like Liberia or Panama, some 684 are registered in the U.S. and by law are staffed by U.S. workers. Only U.S.-flagged ships are permitted to ply the 25,000 miles of America's inland waterways.

Even though "marine" is in the title, these workers are not part of the armed services. However, in times of war the merchant marine is called on to deliver goods and soldiers across the ocean.

Seventy-one percent of companies responding to the survey reported having trouble recruiting workers last year, and more than half of respondents reported having trouble with retaining mariners. You can read the full survey report here, or a summary is available here.

Unlike so many of today's occupations, career pathways up through the ranks is clear and well organized. Training for the field is similar to that in an apprenticeship program, including a good share of paid on-the-job training.

For more info, check out the U.S. Merchant Marine Academy, or the sites for the six state merchant marine academies. The Transportation Institute, which advocates for the industry, has a wealth of information on its site, including a fascinating history of the merchant marine.

World War II-era poster

Quick resources for jobs in the energy sector

Another industry that's poised for high labor demand is energy. I wrote about a projected shortage of line workers a while back, but concerns aren't limited to that occupation. Whether you're talking about jobs in traditional electrical utilities or the emerging new field of green energy, growing demand for electricity (check out the table below) combined with baby boomer retirements means jobs will be opening up. Here are two resources workforce development professionals may find useful in helping inform and direct job seekers to opportunities in the energy sector.

For old-fashioned energy companies, check out the Center for Energy Workforce Development (CEWD). They have an interactive website where, in addition to the articles, videos, curricula and other materials you'll find there, CEWD encourages you to add your own materials and best practices. It looks like there's a fee to join, but you don't need to be a member to access much of the info.

The Apollo Alliance focuses on green jobs and green energy, and their website has a wealth of information, including this recent report on "green collar" jobs. You can join the discussion on the Apollo blog.

In addition, WIRED Nation is currently setting up an Energy Regions section on its wiki, similar to its sections on Bioscience and Transportation/Distribution/Logistics. It will be yet another resource you'll want to bookmark.

If you know of other resources on jobs in the energy sector, please pass them along.

For more fun with electricity, check out this classic Schoolhouse Rock! video:

(Can't see the embedded video? Click here.)

Energy Consumption Table: US Department of Energy

NYC transit workers online

Want to know what it's like to work in New York City's Metropolitan Transportation Authority? Ask these folks. Or this blogger. 

The web 2.0 revolution is creating ever more opportunities for workers to talk directly to each other, and to share their stories with the wider world. These web pages, blogs and other online media are a great source of info for job seekers, as I highlighted last year.

HomeStation Online is a web portal by and for NYC transit workers. The Underground is a blog by Marvin Holland, MTA Station Cleaner, former Shop Steward, and editor-in-chief of HomeStation Online. Check out his analysis of a new blue ribbon report on Engaging, Recognizing and Developing the MTA Workforce.

Image credit: NYC MTA

Sector Skills Academy - still time to apply for 2008

But you've got to act fast.

The Sector Skills Academy - run jointly by the Aspen Institute Workforce Strategies Initiative, the National Network of Sector Partners, and Public/Private Ventures - is now accepting applications for its 2008 class of fellows. The purpose of the academy is

to improve the quantity, quality and sustainability of sector efforts on the ground, such that greater progress can be made toward improving economic opportunities available for lower-income individuals while supporting overall economic competitiveness.

They do this by training leaders of workforce and anti-poverty programs around the country in how to use the sector approach in their local community. They bring in expert practitioners from across the country to teach, and they're building a cadre of trained professionals who can support each other. Major funding for the Academy is provided by the Mott Foundation.

For more info on how to apply, click here. Applications are due on March 3. 

Workforce development stars on YouTube

Project QUEST has just uploaded video testimonials online from three of its graduates. They're great! In addition to the video below, you'll find one more here, and another one here.

Project QUEST provides long-term training to residents of San Antonio, Texas, who would otherwise be out of work or on public assistance. They use a sector-based approach to workforce development, and they're currently focused on health care/medical, information technology/business services and installation, maintenance and repair sectors. 

Their work has been honored by the Enterprise Foundation, J.P. Morgan Chase Foundation, and they've won an Innovations Award from the Ford Foundation and the Kennedy School of Government at Harvard. You can read more about Project QUEST in this Investing in People report, and in this case study from the Aspen Institute. Or just listen to what this graduate has to say:

If you don't see the embedded media player, just click here to get to the Project QUEST Channel on YouTube.

Big bucks for social workers

The newest issue of the Chronicle of Philanthropy highlights big spenders for 2007. That is, the top fifty donors of the year, who gave a combined total of $7.3 billion. First, some non-surprises:

• Largest share of their donations went to colleges and universities (44 in all);
• The northeastern U.S. received by far the largest number of donations (1,156); and
• Top donor of the year was William Barron Hilton, who pledged $1.2 billion to... the Conrad Hilton Foundation. (No jokes on this blog about who would get the money if he let his heirs inherit it.)

The enjoyable surprise was the article about a $50 million pledge from Martin and Dr. Constance Silver to the School of Social Work at New York University. The purpose? Scholarships for students interested in helping minorities, operating support, and an endowed professorship in poverty research. Part of the funds will also go to launch an institute that "incorporates the expertise of social workers into research on poverty."

It's terrific not just to see the interest in poverty and the willingness to invest in understanding it, but that this grant will recognize and tap into the expertise of our nation's social workers. It's a job that's not well understood or well-remunerated, but it plays an important role in workforce development and other human services.  I have a lot of respect for people who can do this tough job, day in and day out.

The Chronicle says that mega-gifts in higher education generally go to schools of law and business, and that gifts like these for social work programs are rare. Kudos to the Silvers for bucking the trend.