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At the request of Governor Murkowski, through Commissioner of Labor and Workforce Development Greg O'Claray, Commonwealth North produced a workforce development study, co-chaired by Dr. Alice Galvin and Jeff Staser.
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ALASKA’S JOBS FOR ALASKA’S PEOPLE June 2003
Study Co-Chairs: Dr. Alice Galvin and Jeff Staser Editor: Duane Heyman
Underwritten by
Preface In January 2003, Governor Frank Murkowski, through Commissioner of Labor and Workforce Development Greg O’Claray, asked Commonwealth North to develop recommendations for workforce development in Alaska, especially as they relate to economic development.
On January 21, 2003 the CWN Board approved a study group for that purpose, cochaired by Dr. Alice Galvin and Jeff Staser. Since then a group of more than 50 volunteers comprised of CWN members and a broad range of workforce development professionals has been meeting twice weekly at the BP Energy Center to gather information, analyze the topic, and assist Commonwealth North in looking ahead to the future in its recommendations to the Governor. This report is a result of these study group sessions.
Original scope: The Commonwealth North Board requested that the Study Group review the following types of workforce development programs in relationship to economic development and perform a “gap analysis” looking for redundancies or missing elements and make recommendations for bringing the system into alignment:
1. Post high school programs 2. Federal programs 3. State programs, prisons 4. Non-profit and union apprentice programs 5. Proprietary programs and schools
As the Study Group began to accumulate information and discuss the topic, it quickly became apparent that workforce development does not occur in a vacuum. While the CWN Board had directed a review of the interface between workforce development and economic development, the study group determined that two other significant aspects of society need to be considered: healthy communities and quality education.
Modified scope The framework for a workforce investment system needs to define relationships with economic development, education and community values and wellness.
Comments by Commissioner O’Claray “On behalf of the Murkowski Administration, I would like to thank Commonwealth North for the valuable work done by the study group to define the critical issues facing Alaska relative to its workforce. The report ‘Alaska's Jobs for Alaska's People’ is a solid basis for action, and is well aligned with the work that we have started that will strengthen workforce investment efforts and ensure they are a key part of Alaska's economic development. The specific goals of this administration are outlined on page 20. Thanks to your work, now more than ever before, leaders from across Alaska are realizing the tremendous importance of workforce issues, and are seeing the value of investing in our state’s most valuable resource, its people.” Thank you, Greg O'Claray, Commissioner Alaska Department of Labor and Workforce Development
“Wanted: 68,000 residents for jobs in Alaska” Interested? All Alaskans should be. This is the number of existing jobs, from all sectors of our economy including medicine, civil engineering and dozens of other careers, which are held by non-residents. Subtract 82,300 resident government workers from Alaska’s 308,000 employed people and you find that about 30% of the market for private sector jobs goes to non-residents. Meanwhile, Alaska’s unemployment rate is about 50% above the national average. Is this a problem?
This is essentially the question raised by State Commissioner of Labor and Workforce Development Greg O'Claray when he asked Commonwealth North (CWN) President Joe Griffith to commission a study on Alaska’s workforce development. Are there gaps in the relationship between economic and workforce development? If so, what would CWN recommend we do? With Board approval, funding from BP, and the active participation of over 50 volunteers meeting twice a week for months, the results point out significant gaps. Among our recommendations we urge much more public involvement.
Ours is essentially a service economy, with only 10% of employment in the “goods producing” sector comprised of construction, mining, oil/gas extraction, fish processing and manufacturing. 90% of us are government or “service producing” employees, or employees of over 4,000 separate non-profit organizations. The number of employees in the “goods producing” sector is about equal to the number employed by non-profits, 30,000. Small business employers are a vital part of our economy. We are vulnerable to dramatic and unpredictable swings of the economic pendulum by forces beyond our control, yet most of us are content to live in the present, responding to today’s economic conditions. As a state, we have had no overarching plan to shape our economic future, leaving workforce development efforts reactive rather than proactive. According to our survey, 90% of us – rural and urban – are satisfied with our jobs and over 80% are satisfied with our family incomes. We are generally comfortable where we are, and generally do not perceive a need for “workforce development.”
Workforce development is the lifelong process of preparing and placing people into jobs. It is fused with community health, education and the economy. We found effective parts but no accountability for the effectiveness of the “whole.” The “system of systems” we discovered was so complex that even professionals within the system had difficulty identifying all the parts, let alone how they all work together. Therefore, some of our recommendations relate to government management: setting goals, fixing responsibility commensurate with authority, resource allocation, organizing structures, providing evaluation and feedback, and optimizing to achieve measurable and specific results. About $40-65,000,000 is spent in Alaska each year though government programs, with no overarching accountability under one entity.
Where government assistance seems most valued is where it targets those who otherwise lack effective access to other preparation assistance or employment contacts. Of those surveyed, 95% found jobs without government help, less than 20% are aware of the training or placement services available through government “One-Stop” programs, and 10% use them. However, government assistance also includes our education system and we offer recommendations to strengthen it.
That system cannot be left to government alone. The larger challenge is for all of us to take action now to be prepared for future needs. Demographic projections predict a widening gap of these unmet needs. If you are an employer, experts suggest your future employee may opt out of pursuing a career in your sector as early as age 7. Clearly, how the private sector engages our education system with “career pathways,” P-16 (pre-school through university) plays a dominant role. Individual Alaskans apparently accept responsibility for their own careers. When asked their one wish – “I wish I’d paid more attention in school” was a frequent response. Employers voiced a common wish: that graduates have basic literacy and computational proficiency, and a “ready to work” ethic. The study group supports the concept of a “certificate of employability” that sets standards responding to the employers’ wish list. According to professionals working on this concept, it could be implemented by October 2003.
As federal Secretary of Education Rod Paige remarked during his CWN forum earlier this month: “all of us are smarter than any one of us.” Assistant Secretary of Commerce David Sampson, Administrator of the federal Economic Development Agency, echoes this message. Dr. Sampson stressed the need for Alaskans to take advantage of our regional “competitive advantages,” encourage “cluster business” and think in terms of “Alaska’s Jobs for Alaska’s People,” the title of our report. The study confirmed that where we have good collaboration, particularly with employers, we have excellent results. Some sectors and regions of Alaska are ahead of others. Successes, such as Industry Consortia, need to be shared, understood and expanded. There appears to be plenty of room for improvement and enhanced collaboration, but who is responsible for this collaboration? This report suggests the Governor set the benchmarks, and that he hold the Alaska Workforce Investment Board (AWIB) accountable to pull it all together.
Federal and Alaska statutes require that the AWIB adopt a priority list each year based on economic, employment and other relevant data in order to focus training dollars on critical workforce needs and employment opportunities. Highest need “job clusters” are based on growth potential, statewide impact and availability of jobs, the accessibility of career ladders within an industry and the level of non-resident hires. Health care is the highest priority based on extreme needs. Construction, information technology and transportation continue to be AWIB priorities based primarily on their growth potential. Seafood, education and hospitality are new additions to the priority list based on their high number of non-resident workers or a shortage of a strong recruiting pool. Special social and economic development issues in Alaska’s rural and bush communities exacerbate the challenge of finding workers in those areas.
Are today’s Alaskans ready to step into these jobs? Apparently not in sufficient numbers. Experts predict with some certainty that 48,000 new jobs will be created by 2010. That number could be dwarfed by potential “mega-projects” such as a gas pipeline that could produce both temporary construction and permanent legacy jobs. Are we adequately preparing ourselves for the future? The study group documented wide gaps among various public and private workforce development providers and placement programs, educators (P-16) and employers – to succeed we need to close those gaps.
We learned that competition for resources often pits our schools, vocation training centers, colleges and university against one another. Therefore another recommendation suggests how to improve collaboration. The report calls for a P-16 integrated strategy, and better collaboration between School Boards and the Board of Regents of our University system. The recent memorandum of collaboration signed by UAA, Charter College, Anchorage School District and Alaska Pacific University is an excellent example of such collaboration. All of us need to think in terms of P-16 and beyond, and all the divergent career pathways in between, as one integrated process of learning over a lifetime.
How economic development and workforce development work together depends on community values and priorities. The Study Group suggests a “talent pool strategy using regional economic growth as the driver.” The Study Group looks to the Governor to articulate these points statewide and to provide leadership under new integrated strategies. As a first step, the study also recommends better collaboration among state commissioners charged with the currently disjointed confederation of departments responsible for education, economic development and labor development. As a second step, businesses must make their needs known and participate.
Failure to appreciate the urgency of immediate action dooms another generation of Alaskans. Alaska’s base industries will face a more severe worker shortage in the future as Baby Boomers continue to advance into retirement. The Study Group recognized, however, that the ultimate responsibility to prepare for and employ Alaskans is with you, the reader of this report. Each of us has a role to play in developing and employing Alaska’s workforce. We must act now. If we fail to act, the opportunities we see on the horizon may become tomorrow’s crisis.
The "ideal" workforce development system
The goal of workforce development in Alaska is to increase and maximize Alaska’s jobs for all of Alaska’s people. A high percentage of Alaskans should be filling Alaska’s best career jobs.
A further goal is to increase income for individual Alaskans who live in or are born in Alaska. It is more important to create wealth and good lives for Alaskans than to create growth for its own sake.
Efficient use of resources and stewardship must be valued. Alaska wants to rationalize and develop its opportunities. This will require discipline and accountability around integrating, coordinating and managing existing structures effectively instead of creating new ones.
Effective workforce development does not occur in a vacuum; four key components are
Numerous successful models in Alaska and across the nation share characteristics in common. They are: Grounded in support of economic development. Industry-based and industry-driven. Based on demand-driven priorities. Efficient users of resources. Contributors to community values, goals, and wellness. Accountable based on end-user (employer and worker) satisfaction. “What gets measured gets done.”
The net result is increased opportunities and per capita income for Alaskans.
Ten Recommendations: We can get there from here
From vigorous debate and discussion, briefings and presentations from Alaska's experts in study topic areas, and a consensus on goals and assumptions, the Study Group emerged with ten actionable recommendations:
1.The Governor must set clearly quantified targets for Alaskan participation in quality jobs and challenge all departments to meet them. The Governor must set a specific target reduction of the 68,000 Alaska jobs that currently are filled by non-resident workers and positive goals for the 48,000 future jobs that have been identified.
Establish a specific timeframe for this reduction.
Champion workforce development as an economic driver for the state, ensuring the health of our current industry and for future economic development in the coming decades. This includes identifying strategic occupations that will help expand the production base of the economy.
2. Utilize the full capacity of the Alaska Workforce Investment Board (AWIB) as the point of contact for system improvement. Return the Alaska Workforce Investment Board to the Governor’s office to forge strong alignment across the Departments of Labor & Workforce Development, Commerce, Education and Health & Human Services. Their workforce development-related missions are inter-related and
The AWIB must be:
3. Establish an economic development plan for Alaska that integrates workforce development, education and healthy communities. Appropriate state divisions and agencies must work together to maximize returns on the natural, financial and human assets available in Alaska. Each component must have a shared vision, a unique mission and participate in complementary action. The 1998 CWN report “Alaska’s Asset Portfolio: Managing for Maximum Return,” addresses asset management issues and policies (for more information, see http://www.commonwealthnorth.org/).
4. Ensure that all funding spent on workforce development in Alaska includes integration with economic development, healthy communities and education reforms efforts. Funding proposals should address all of these elements.
5. Establish an Information Clearinghouse within AWIB that will have three major components:
a) Information Base: The Clearinghouse will maintain a repository of information on workforce development, education and training activities, programs and resources across Alaska. It will include descriptive information, performance and cost data. It will be both a portal to existing information resources and an organized database to access projects, programs and grants around the state that are currently difficult to identify and understand. With this information, investors, training providers, policy makers and employers can avoid duplication of programs, identify and promote best practices, and create synergy among related efforts. While the information may initially focus on government funding sources, it is intended to provide a view into the full range of workforce investment activities that are funded by multiple sources.
b) Evaluation: The AWIB will evaluate proposals for training and workforce project funding in Alaska. This information will support the state and Congressional delegation in their funding allocation decisions. The AWIB will utilize Alaska's Future Workforce Strategic Policies and Investment Blueprint as a tool to assess the strength of proposals for new investments and to identify potential improvement of proposals based on known best practices.
c) Technical Assistance: The Clearinghouse will offer assistance to organizations as they develop workforce investment programs within their communities. It will again rely on the Blueprint and the Information Base for context, guidelines and promising practices. The goal is clear, well-designed proposals for workforce development. Programs must be demand-driven, accessible, interconnected, accountable, have collaborative governance and be sustainable, i.e. 'built to last.' This technical assistance role will also develop funding beyond existing governmental sources to generate financial synergy, leverage assets and access private sources.
6. Forge strong alignment between the Departments of Labor and Workforce Development and the Department of Commerce and Economic Development. Their missions are inseparable. All their plans and actions should reflect the opportunity for cohesive, strategic economic development.
7. Reconfigure the educational system into a well-articulated "P-16" (preschool through university) structure that provides Alaskans with strong foundations to progress into high-quality careers. Integrate Career Pathway concepts into learning: Create career awareness in grade school, career exploration in middle school (visits to fire house, power plant, etc.—job shadows, etc.), and career preparation in high schools (internships, system curriculum. In addition to the exit exam, require certification of employability of "soft" skills (such as teamwork, work ethics, promptness and critical thinking). Transcripts must reflect employability learning (courses taken, critical life skills learned, specific training received and certifications achieved).
8. The Board of Regents and the Board of Education must coordinate and align their goals. Today's education system is fragmented and ill-prepares Alaskans for the world of work and careers. Too many high school graduates are not adequately prepared for employment. The forty percent of students entering the University of Alaska system that need remedial training drains resources that could be more effectively employed. Current political reality pits K-12 versus the University for funding. Coordinated P-16 planning can present a more united and effective front to the legislature, industry and the public.
9. Promote healthy communities. The vitality of Alaska's communities, both large and small, depends upon good jobs and the creation of economic opportunities. Workforce programs need meaningful local participation, leadership and buy-in. Establish and use principles for program development and service delivery that avoid creating dependencies and encourage self-reliance. Economic development, education and workforce development will have failed if they do not ultimately result in healthy communities.
10. The interest, participation and enthusiasm of industry must be engaged in Alaska’s future workforce development. Industries and employers are in the best position to project the skills and competencies that workers will need in the future. They are in the best position to assess the effectiveness of programs delivered through the workforce development “system.” Without a commitment to hear and implement industry insights, employers will soon lose interest. Business-learning partnerships and other private sector organizations can promote and strengthen this outreach. In short, without industry’s voice as a leading partner, the “system” will default to lackluster processes and outcomes that do little to promote and support economic growth.
The four Components: Economic Development, Education, Healthy Communities & Workforce Development System Goals, findings, research and ideas were discussed for all four of the interrelated components that are considered critical for the success of any economic development or workforce-building effort. The sections that follow summarize and elaborate on the study group's findings and recommendations in each component.
Economic Development Economic development and the economy create the boundaries within which workforce development can occur.
Introduction: Critical labor needs call for strong action. Employers import workers while Alaskans are unemployed. In 2001, 68,000 nonresident workers held jobs and earned over one billion dollars in wages, which went into the economies of their home states. Over 20,000 of those jobs are lucrative and desirable for many Alaskans. Private sector Alaskan businesses reported that 21% of their work force is not eligible for the Permanent Fund Dividend, according to March 2003 data.
A cohesive workforce policy can address these critical problems: a. Many high school students are not job ready. b. Too many Alaskans are locked in dead end jobs.
There is no cohesive economic development policy for Alaska. Our economy faces a time of change both from advances in technology in the work place and the increasing global nature of business. The workforce must evolve in parallel to changing employment needs. A proactive economic development policy will align a clear economic development vision for Alaska with workforce needs. Strategic occupations must be identified that will expand the productive economic base of Alaska. It is imperative that Alaska builds an adaptable, flexible workforce with the ability to recalibrate skills as required by the labor marketplace.
Challenges: Alaska workforce development has grown without coordination and needs major alignment and reform. Alaska’s size and regional diversity require region-specific workforce and economic development responses. There are substantial differences in employment opportunities in different regions of Alaska. There are many needs in rural Alaska, but many people do not want to work there. There are greater opportunities and resources in urban Alaska. A further complication is that in some high-demand areas wages are insufficient to attract workers. Examples of this are entry-level jobs in fisheries, hospitality, wholesale-retail and the social service sectors. Higher skill positions are often difficult to fill in rural areas.
Economic conditions control both the number and kinds of jobs that become available. Alaska’s ability to identify jobs of the future is constrained by the state’s lack of either an economic development or fiscal plan. In turn, economic development opportunities are constrained by the quantity and quality of the Alaska workforce. Workforce development and economic development are a classic “chicken and egg” situation.
Education and training lead times do not correspond to business and industry demand time frames for new workers. Many programs are uncoordinated and do not relate to real world demand for jobs. There is a lead-time gap between industry needs and the ability of the system to create programs to satisfy those needs. Even the workforce development community lacks sufficient understanding of the lead-time required for education and training changes. Current and future jobs will go unfilled, or will be filled by imported labor, unless training programs for Alaskans have enough lead time to take advantage of projected business needs. As a major employer, the State of Alaska also needs to improve its own workforce training.
Programs are fragmented, and not coordinated throughout the career of people in the workforce. Workforce development needs to address all three phases of individual worker needs: a. Entry into the workplace; b. Evolving and advancing skills once employed; and c. Training and opportunity awareness for people with special needs.
Opportunities: Better coordination of the significant current workforce development expenditures could make a big difference in the impact! Demand driven programs can offer realistic career opportunities if the system can respond in a timely manner. Better communication and collaboration between businesses and education and training sources can improve response times.
Coordinate and focus existing funds from all sources, including non-government sources of training funds. Coordination and cooperation can make the most of workforce development investment funds. If all current workforce development investment funds could be identified and aligned, the total amount of funding may actually be sufficient to make a significant difference.
Current employees need constant skills development. An up-to-date workforce can itself create economic opportunities as employers find ways to utilize the talent.
Building worker capability expands future businesses opportunities. Appropriate workforce preparation unleashes the innovation and creativity of our youth and existing workers in response to opportunities we cannot yet anticipate. Workforce development that builds the capability of people to be flexible, creative, innovative and disciplined creates opportunities, as well as a competent labor force.
Findings: Alaska can prepare for both predictable and unknown future workforce needs. Alaska’s economy functions in a global, not a parochial environment. To enhance economic opportunities of individual Alaskans, public policies and economic development need to enhance value-added processes in our resource based industries and seek out opportunities in knowledge-based industries (success stories: McKinley Capital and Alaska Permanent Capital). Workforce development needs to be in support of and in tandem with economic development. The Alaska economic development strategy needs to focus on clearly identified markets, which have different workforce requirements: a. The statewide Alaska market; b. The national market; and c. International markets.
The Department of Labor tracks many occupations and clearly predicts future needs for them. However, emerging businesses and workforce requirements based on technology advances may not be easily predicted based on existing jobs. The jobs of the future require a labor force capable of flexibility and with adaptable skills. Therefore, workforce development has two major prongs or opportunities: a. Filling predictable jobs and careers in existing occupations; and b. Filling knowledge-based jobs of the future.
Small businesses (under 500 employees) comprise the largest component of Alaskan employers. The needs of small businesses for labor and on the job training must be evaluated since they employ a large percentage of the workforce and create many economic opportunities.
Recommendations: We need a consistent long-term plan for workforce development with a strategy for integrating all available tools. a. Workforce development and economic development need to be integrated. b. Students must be provided opportunities to engage in community service based learning projects where they will learn about the needs and challenges of our community and industry. This can result in new business opportunities. c. The overall coordinated plan needs to have a meaningful long-range time horizon—perhaps at least ten years. d. Use the Department of Labor occupational information to coordinate and rationalize programs for predictable job and career needs. e. Identify specific training needs in rural Alaska. f. Think beyond government. Do not rely on government to solve all the problems.
Education Strive for simple and effective ways to reform education
Introduction: Good education is the prerequisite for good workers. Workforce development and economic development require quality and relevant education from preschool through university, otherwise referred to as P-16. Welleducated individuals tend to be self-motivated who can in turn work, adapt, change and find resources to meet their own goals. Self-sufficient individuals contribute to and build a strong economy and healthy communities.
Map of ideal workforce development and education system
This map illustrates that workforce development is a part of a system of learning. At the heart of workforce development are individuals who understand opportunities they have and how to pursue related education and training they need. Top down efforts will not be effective unless individuals are aware of opportunities, motivated to learn and supported by healthy communities. Each one of us, as individuals, are the ultimate input to the workforce system as parents, involved members of the community and workers pursuing our own education and training. Finally, the map underscores that workforce development must truly serve workers and industry to be successful.
Community
Work, OJT, and Individual Parents Students - Tech training and Employment with K-12 Learning Two-year College Lifelong learning, Recreation, Family,
Four-year University Teachers Education
Learner-focused workforce development, aligned with industry demand
Challenges: Current structures and approaches are not meeting our needs. a. We need strong, clear leadership at all levels to create and maintain a common vision. b. We need to think out of the box to provide options and relevance to students both in curriculum, smarter use of resources and facilities and new technologies. c. The economies across the state in urban and rural areas are vastly different and need to be accounted for and further developed. d. Problems that schools face are complex and outside resources such as business and communities should be engaged in the solutions. e. Rural Alaskans need to be equitably represented at the policy levels. f. Recognize the challenges with the implementation of the No Child Left Behind law as it impacts schools. g. A significant number of students drop out of the K-12 system, resulting in reduced individual skill attainment. h. The transitory nature of the school population brings additional challenges to the system.
Opportunities: Great educational improvements can be made through innovation and alignment. a. We need a clear pathway through the school system that leads students to successful transition to the workforce. b. A new administration and a new State School Board of Education provide an opportunity for doing things in a new way. c. Engage local people in the system to develop the larger system sensitive to regional needs. d. Regional Learning Centers should be explored as a way to fill educational gaps and to enable all students to be able to measure up to higher standards. Students could re-enter the system to improve exit scores and gain new skills. e. Activate the structure and framework of the Clearinghouse concept to help educators, parents, students and community members to connect with the system. f. Reconfigure the system in a P-16 structure so greater connectivity is provided throughout the system. g. Involve business and industry throughout the education process.
Findings: Education affects all, must involve all. a. Our ability to provide quality workforce preparation is limited by the segmentation that exists in our current systems. b. There is no quick fix so we must develop a plan, based on a shared vision with key stakeholders, that can be implemented in a phased approach over time. c. When a program like Career Pathways is explained fully to a community, they will buy into it. d. There is a role to play in improving the system and the preparation of our workforce by Chambers of Commerce, industry consortia, concerned citizens and community leadership. e. Too many of our communities and employers are leaving the entire development of our children to the schools.
Recommendation: Do not shy away from bold steps. a. Local school boards need to take responsibility to ensure that parents are involved in dialogue with the schools at critical points in their child’s education, particularly aligned with competency exams. Villages and communities need to demonstrate ownership of their school systems. b. The State School Board needs to assume a strong and clear leadership role in ensuring a unity of purpose across the system and a coordinated effort to restructure the state school system. c. Local school boards must rigorously review their policies to ensure they are aligned with the goals of No Child Left Behind and the development of selfsufficient individuals who will contribute to and build a strong economy and healthy communities. d. Integrate Career Pathways into all grades with direct relationships to industry and the community. Mandate Employability Performance Standards. e. Build more bridges across the educational system to include:
A significant Technical Preparation Consortia finding:
Students who have had one career or technical education class in high school test higher on their SATs.
Healthy Communities Good workforce development programs respect community values, support community wellness and help build healthier individuals.
Introduction: There are no quick fixes. Wellness and healthy communities are critical components and determining factors for effective workforce initiatives in both urban and rural Alaska. Many Alaskans are unemployed due to complex emotional or physical challenges. Like all efforts to improve life for challenged Alaskans, workforce development must constructively addresses the core issues of wellness.
Training and a job are secondary efforts to an individual who is not well or who is struggling from chronic depression, substance abuse, sense of powerlessness or a suicide of a friend or family member. An Alaska Native may be challenged by historical trauma, or self-destructive behaviors or substance abuse. A Vietnam Vet may face problems due to post-traumatic stress syndrome. A physically handicapped person may need to overcome depression, anxiety or fear.
Every interaction between an individual or community and an outside entity has the potential to either increase or decrease that community’s wellness. How services are delivered is very important. Healthy Community is directly tied to community ownership and control over change. Community ownership is measured by the degree to which the community uses its own values and knowledge to direct decisions. This is essential for independent living, obtaining self-sufficiency and having a healthy sense of sovereignty.
The ability for the community and individuals to make decisions, to receive recognition and to take responsibility is directly linked to a sense of self-esteem and health. In order to be effective, workforce development programs must follow principles that address the special needs of all people and that support healthy individuals and communities. The way a program is designed and how resources are accessed are central to wellness as well as to effective workforce development.
Challenges: How you do it is what you get. Many existing workforce development programs do not support healthy communities. A major overhaul of program design and delivery is required.
Opportunities: Hope, choice and inclusion are essential components of individual and community success. Choice and accessible paths to meaningful jobs with adequate pay central to individuals and communities.
Findings: Define and use principles of wellness. Effective workforce development programs involve communities as they articulate and
Recommendations: Use principles of wellness as the measure of success.
The Workforce Development System Pulling it all together
Introduction: It’s a new landscape. Alaska stands on the threshold of navigating disturbing waters for employers, but with the promise of opportunity for the future. The demographic composition of today’s workforce and labor pool will erode the ranks of experienced, highly educated and trained professionals as the Baby Boom generation moves into retirement, with too few younger workers to take their places. Yet new opportunities for economic development lie before the state.
The creation of and long-term commitment to a plentiful workforce—educated and skilled for the occupations of the future—is the key to economic vitality.
Recognizing the complexity of the workforce development “system” as it evolved in political environments of the 20th century, the national landscape is undergoing a fundamental sea-change in education and training.
No longer are the benchmarks for “success” calculated on the basis of training-hours delivered or the number of individuals who have cycled through government-funded programs. In today’s environment, the measure of success is based on “customer satisfaction.” The “customers” are the employers and individuals who make use of the federal, state and regional/local programs that provide training, job placement and related “workforce” services.
More to the point, under the sweeping reforms in the federal Workforce Investment Act (WIA) of 1998, virtually all programs funded with federal dollars are grounded on regional economic development outcomes. If you happen to be in the private sector, this connection of training and job services to economic demand in the marketplace is, in the vernacular, a no-brainer. The WIA, for the first time, recognizes the critical, essential need to accommodate the real, marketplace demand for workers in trade and commerce
Put simply, in the new revolution of the federal WIA, industry is in the driver’s seat, for the first time, in charting the course of workforce and education development for the future.
Challenges and opportunities: We have what it takes to meet the challenges. Major stakeholders in the workforce development environment recognize that the system today is complex, fragmented, inefficient and inadequately responsive to employers and workers. At the same time, Alaska's assets are in place to position our state for highwage, lifelong careers that employers will need to succeed.
For states and regions nationwide, the challenge ahead lies in engaging industry to participate at the table and chart the programs that will meet the demands of local economic development. Aligning economic development reality with the human capital it will take to achieve it. Business and industry is the primary resource for identifying and defining the skills that are and will be in demand for new enterprise, growth of core industry sectors and sustaining economic vitality.
Findings: The menu for a successful workforce development system Business and industry leadership and participation must be engaged as the driving force for workforce development. Like all other states, the engine that drives Alaska’s workforce development initiatives is the federal government. The new WIA mandates that Workforce Investment Boards be comprised of a majority of industry membership. In other words, Congress intended that industry (i.e. the demand side of the equation) guide, oversee and govern workforce development programs.
From state programs to local education and regional training initiatives, outreach and an open-door invitation for policy-making participation must be pursued with industry. Collaborations such as that achieved by organizations such as the Industry Skills Coalition and Alaska Business Education Partnership should be encouraged and supported—both to enable industries to connect with the system and leverage federal and foundation funding and other assets.
Coordination and creativity are required. Greater coordination and creativity must be employed to:
Recommendations: The Governor and the Alaska Workforce Investment Board (AWIB) are keys. The reform and effective delivery of services for any program must begin at the top, where leadership, collaboration and cooperation can be focused.
Reconstitute the AWIB. The Study Group recommends that a redesigned, reconstituted and reinvigorated AWIB, answering directly to the Governor and returned to the office of the Governor, can best achieve this coordination. The weight and influence of the Governor can raise the level of importance for sound workforce development and capture the attention of employers that are critical to Alaska’s economic development success.
The new AWIB should be constituted as envisioned and required by the federal Workforce Investment Act of 1998, to be:
Coordinate state programs. The Departments of Labor and Workforce Development, Community and Economic Development, and Education and Early Development need to work closely together to address the full scope of workforce development issues. The AWIB, located in the office of the Governor, can transcend “turf” issues and facilitate policies and procedures among workforce-related departments that will stimulate and encourage programs to meet industries’ demand for skills and employee competencies.
Set targets for performance. It is not enough to measure “success” by the number of “new jobs” in labor and employment statistics. Alaska needs a sustained increase in workers who aspire to “careers,” rather than McJobs. The state needs to replace nonresident, high-wage workers with Alaskans who live and make their homes here. The state needs to encourage and assist our existing workforce to achieve higher skills and competencies through ongoing up training.
The state Administration must raise the bar for economic vitality—with the primary measure for success based on the growth of per capita income. Whatever the targeted goal, this must be the target for state agencies with missions related to training and educating Alaskans. “What gets measured gets done.”
2003 Department of Labor reorganization steps The following section is submitted by K. J. Farnham, Executive Director of the Alaska Workforce Investment Board
CONTEXT: Alaska is positioned for strategic change that will strengthen our workforce investment efforts as a tool for economic development. The Administration has a heightened focus on performance and is strengthening the relationship of economic development to business / employer needs.
The business-led Alaska Workforce Investment Board (AWIB) plays a central role, which is to: assess workforce needs, maintain a strategic perspective on workforce investments, define strategies to align economic development and employer needs, evaluate the effectiveness of the system and recommend performance improvements.
The current structure includes a total of 59 designated seats across three boards:
The Department of Labor & Workforce Development (DLWD) administers all services across the Balance of State; while the Municipality of Anchorage (MOA) has provided support for a portion of the Anchorage/Mat-Su services, specifically job training programs. Twenty-five MOA staff work alongside DLWD staff in the Anchorage/Mat- Su region to deliver workforce investment services.
STRATEGY: The Administration’s strategy for change is to streamline and strengthen the board to result in a single state board, the AWIB, and a single workforce investment area, with a more senior level of membership on the board and a more strategic agenda.
The changes will:
The charts below represent a major breakthrough in identifying how the parts of the workforce development system fit together.
Baseline data, research & information
Dittman Research Corporation May 2003 survey
Overview
During the period May 5, 2003 through May 9, 2003, three hundred and ten (n=310) Alaskans over the age of 18, located in 64 communities, were personally contacted via telephone by professional interviewing employees of the Dittman Research Corporation of Alaska. The views and opinions of the Alaska residents were recorded on a strictly confidential basis.
Two samples of n=155 each were selected throughout the state: one sample from areas that have access to state job centers, and one sample from areas without access to state job centers. A random sample design was featured which ensured that all households listed in the most current telephone directory for communities in each area had essentially an equal chance of being interviewed.
For the Communities with Job Centers portion of the Workforce Development research (n=155), a random sample design was featured which provided that all households listed in the most current telephone directory for each of the 20 Job Center communities had essentially an equal chance of being contacted.
Community w/access to Job Center Population Sample Bethel 5471 n=6 Delta Junction 840 n=1 Dillingham 2466 n=3 Eagle River (in Anc.) n=7 Ketchikan 7922 n=3 Kodiak 6334 n=3 Kotzebue 3082 n=3 Nome 3505 n=4 Petersburg 3224 n=1 Seward 2830 n=1 Sitka 8835 n=3 Valdez 4036 n=1
For the Communities without Job Centers portion of the Workforce Development research (n=155), a random sample design was featured which provided that all households listed in the most current telephone directory for 38 non-Job Center communities had essentially an equal chance of being contacted.
Community w/out Job Center Population Sample Size Anderson 367 n=2 Central 134 n=1 Fort Yukon 595 n=3 Galena 675 n=3 Kaktovik 293 n=1 King Salmon 442 n=2 Kivalina 377 n=2 McGrath 300 n=1 Nenana 402 n=2 Point Hope 757 n=3 Port Graham 171 n=1 Sand Point 952 n=4 Unalakleet 747 n=3 Yakutat 680 n=3
Summary
Alaska’s looming challenge—the future will not and should not be the same as the past—per Alaska Department of Labor and Workforce Development a. Worker gap: Historically, our growing economy has depended on the dramatic growth of our workforce. Future workforce growth may be difficult to achieve. b. Skills gap: Our productivity has also been substantially boosted by our ability to steal skilled workers from the Lower 48 states—a strategy that will be more difficult in the future. We need more focus on growing our own.
Training needs to fit into the overall wage environment While certain employment sectors are in crisis securing necessary workers, it is not accurate to assume the reason is simply because adequate training programs do not exist. Training programs are adequate but industry wages are insufficient to attract people to the jobs (e.g. fisheries, hospitality, teacher education); in other cases, training programs exist and have sufficient capacity for additional training, but students are not selecting these occupations (e.g. aviation, culinary arts, some allied health, construction trades); those employment situations that require limited training, students are graduating from high school with inadequate basic skills necessary to hold a job. It is a complicated situation that needs more than a focus on the training side. An example of this can be found in nursing. As the hospitals have begun to raise wages and improve working conditions, more trained people are coming back into the profession and more people are being attracted to training programs.
Non-resident jobs In 2001, 68,000 non-resident workers held jobs vital to Alaska’s economy and earned over $1 billion in wages. The lion’s share of these wages went into the economies of the workers’ home states. Private sector employers reported 21% of their workforce was not eligible for a Permanent Fund Dividend. (Voc/Tech MOU 4/9/03)
a. In the future, most jobs will require a four-year degree. Untrue: the biggest slice of the pie is jobs requiring less than one month of on-the-job training b. All of the high-wage jobs of the future will require a four-year technical degree. c. Only fast-growing occupations provide good employment opportunities. d. Employers put the highest premium on technical skills. Actually, general foundation skills are just as important.
Rural Alaska Rural Alaska is difficult to predict and in the highest state of crisis. The Department of Labor does not forecast for rural Alaska. The size of Alaska’s labor market does not allow for accurate predictions in rural Alaska.
Alaska has the babies and the “Baby Boomers.” Our population age distribution mirrors that of the rest of the country. That means that we will have trouble importing workers. Alaska has a large population bubble in the 35-54 year old and 0-19 year old categories. However, the intervening generation, the 20-34 year old group is about one-third smaller than the other groups.
Over the last decade, Alaska lost people in the 20-34 year age range.
A Decade of Change 1990-2000
Not enough younger workers will be available. As today’s workers get older, a smaller number of younger workers will be following them.
Industry Employment Forecast Alaska (2000 – 2010) The Alaska Department of Labor and Workforce Development’s occupational employment forecasts are the end product of a three-part system: employer surveys, construction of a matrix of industries and occupations and industry employment forecasts. Highlights of the 2000-2010 industry forecast include:
The following graph shows the ten occupations that are expected to add the most jobs over the forecast period. Approximately one of every six workers will be working in one of these occupations in 2010.
What about potential big projects in the future?
Potential large development projects are unpredictable and challenging to plan from a workforce development point of view. ANWR or a gas line would result in a huge number of workers during construction. Alaska’s labor force is too small to provide a large percentage of project construction workers. However, there may be a better opportunity to train workers for the permanent, ongoing operational phase of these projects. Certain jobs, such as electricians, are highly transferable, could be used on a project, and could be targeted.
Alaska’s “best bet” jobs are those that have higher than average wages and a higher than average projected growth in employment.
Alaska’s Best Bet Skills according to the Dept. of Labor and Workforce Development:
Total funding for workforce development is hard to track, but stateadministered funds are declining.
The chart above does not include tribal, foundation, union, apprentice, school, other directed federal funds or other non-statemanaged funds.
Therefore, the funding that remains will need to be more effectively spent.
How it is being spent now:
Tech Prep for Alaska Tech Prep is a process that provides technical and academic preparation and where possible, work-based learning in a specific career field. It partners secondary education, post-secondary education, labor and business in a sequential course of study without duplication of coursework that will lead a student to a post secondary certificate, Students can receive regular UAA credit by completing articulated courses, completing a registration form and paying a $15 per credit administrative fee. Partnerships courses are based on a set of competencies that are agreed to by the UAA faculty and the partner
Measures Prior to Spring 2002 Spring Fall Spring Tech Prep students (non-duplicated) who 0 (Students did receive 40 86 120 received concurrent credit at UAA concurrent credit at Tech Prep Student Credit Hours at UAA 0 531* 367 670*
UAA programs with Tech Prep agreements 9 9** 10 10 Sections for concurrent UAA Tech Prep credit 0 15 25 49 Total # of courses approved for articulation at Approximately 60 81 105*** 115
Other Tech Prep options are available at The University of Alaska Fairbanks, The University of Alaska Southeast and Charter College
Potential implementation steps for Commonwealth North 1. Presentations of draft document to Commissioner O’Claray, the Governor, departments and legislators (Presented May 8, 2003) 2. Publication of Board approved draft for statewide comment and thereafter the final document (Completed May 13, 2003) 3. Testimony on the report as requested 4. Accountability – seek feedback on benchmarks that could be used by AK 2020, the annual State of the State address, etc. 5. Report distribution plan 6. Presentations to UA Board of Regents, Alaska School Board, Fairbanks and Juneau chambers. PowerPoint available to the group to use. Follow-up cards. 7. A series of Compass pieces 8. Draft specific executive orders to speed execution of recommendations 9. Assure adequate AWIB staffing 10. Affected departments and agencies sign Memorandum of Understanding for cooperation and coordination 11. AWIB actively recruit employers to serve on the Board 12. Study Group members will continue to meet on their own and create an awards 13. Press conference with top employers—have a statewide forum with them 14. Additional related studies needed:
Glossary:
Information Sources 1. AWIB, Alaska’s Future Workforce Strategic Plan and Investment Blueprint 2. Alaska Department of Labor and Workforce Development, Research and Analysis a. Labor Market Data c. Brynn Keith—occupational analysis 3. ISER—employer demand, key issues 4. Governor Murkowski’s plan 5. Eligible Training Provider’s List (ETPL) 6. Alaska Commission on Postsecondary Education list of providers 9. Career-cluster Website 10. ITCC’s publication "The ABCs of WIA", written for employers 11. ISC’s publication "Partners in the Works" about industry-led workforce efforts and their “co-opetition” efforts.
Success stories:
Resource people interviewed:
Study group members
Commonwealth North board and officers
Special thanks To the Study Group members who contributed editing and writing to the study: Audrey Aanes, Mike Andrews, Dr. Milton Bryd, Patricia DeMarco, Katherine Farnham, Ky Holland, Mona McAleese, Tana Myrstol, David Rees, Sarah Scanlan,
810 N Street, Suite 202, Anchorage, AK 99501 Phone: 907.276.1414 Fax: 907.276.6350 www.commonwealthnorth.org