Workforce Skills & the Economy:Ventura County’s Pathway to Economic
Recovery
Bruce Stenslie, EDC-VC, October 22, 2010Bruce Stenslie, EDC-VC, October 22, 2010
For years prior to the Great For years prior to the Great Recession, Ventura County had been Recession, Ventura County had been a national leader in jobs & economic a national leader in jobs & economic vitality, vitality, our success built on the skills of our our success built on the skills of our workforce.workforce.
Since 2007, Ventura County has taken Since 2007, Ventura County has taken a hard fall, so severe a hard fall, so severe that we approach the bottom that we approach the bottom of labor market and economic of labor market and economic performance.performance.
Economic recovery will be found Economic recovery will be found throughthrougha high road strategy, a high road strategy, built on quality of life & productivity, built on quality of life & productivity, through workforce skills applied to through workforce skills applied to quality jobs.quality jobs.
Focus on the Good Years Forbes/Milken Index, Best Places to Do
Business 2002, Ventura County #4 out of 200 nationally 2005, #7 nationally, 5-year wage & salary growth 2007, still in top 15% nationally, all measures
Current State of Ventura Current State of Ventura CountyCounty
► 31,400 jobs lost since December 2007, over 11% of our 31,400 jobs lost since December 2007, over 11% of our basebase
► Milken Best Cities Index dropped us from #4 in the nation Milken Best Cities Index dropped us from #4 in the nation in 2002 to 158 out of 200 nationally in 2009, and all the in 2002 to 158 out of 200 nationally in 2009, and all the way down to 180way down to 180thth in 2010 in 2010
► Since 2002 we have had a net DECREASE in total non-farm Since 2002 we have had a net DECREASE in total non-farm employment by employment by 10,70010,700 jobs jobs
► Since 2002 we have ADDED 26,900 workers to our labor Since 2002 we have ADDED 26,900 workers to our labor forceforce
► In January 2002 we had 24,200 unemployed workers, 6.0%, In January 2002 we had 24,200 unemployed workers, 6.0%, in August 2010, 48,200 unemployed, 11.2%in August 2010, 48,200 unemployed, 11.2%
► Mix of retained occupations & industries increasingly Mix of retained occupations & industries increasingly becoming lower wage, service sectorbecoming lower wage, service sector
The Hard Fall: The Hard Fall: The National The National
ProfileProfile
Risk of layoff is higher now than any prior period measured
More workers in the transition from job to job: experience unemployment, for
longer periods lose their benefits, risk financial
disaster face some period of poverty
Fewer workers in transition: have any savings to carry them are eligible for unemployment
insurance have a retirement package
Reasserting our Reasserting our competitive edge is competitive edge is fraught with risk & fraught with risk & challenge, for workers & challenge, for workers & business.business.► Fast-changing economy & markets, Fast-changing economy & markets,
resulting in a turbulent workplaceresulting in a turbulent workplace
► Workers are unprepared for a labor Workers are unprepared for a labor market in which employers expect & market in which employers expect & demand multiple skillsdemand multiple skills
► Talent is concentrated in our Talent is concentrated in our incumbent workforce, but there are incumbent workforce, but there are few pathways for skills advancementfew pathways for skills advancement
► The old compact between workers & The old compact between workers & business is broken, a relic of the pastbusiness is broken, a relic of the past
“Unemployed finding old jobs now require more skills:
Companies willing to wait for workers who cover multiple needs”
Ventura County Star Headline, Sunday, October 16, 2010Ventura County Star Headline, Sunday, October 16, 2010
Credit: Ventura County Star, posted October 16, 2010 at 3:01 p.m., by Christopher S. Rugaber, AP economics writer. Photo credit: Keith Srakocic/AP.www.vcstar.com/news/2010/oct/16/unemployed-finding-old-jobs-now-require-more/#ixzz12ez65dP0, at www.vcstar.com
“Joe Bozada, chief of staff of Bayer Corp. in Pittsburgh, had a hard time filling a job because Bayer is demanding more skills in available positions. Employers are combining duties and skills that used to be spread across several jobs.”
Unprecedented Long-term Unprecedented Long-term UnemploymentUnemployment
U.S. Bureau of Labor Statistics, Issues in Labor Statistics, October 2010, U.S. Bureau of Labor Statistics, Issues in Labor Statistics, October 2010, www.bls.govwww.bls.gov
Education Pays: More Education Education Pays: More Education Leads to Higher Earnings, Lower Leads to Higher Earnings, Lower
UnemploymentUnemployment
The Reality of Middle Skills The Reality of Middle Skills JobsJobs
From the National Skills From the National Skills CoalitionCoalition
California’s Forgotten California’s Forgotten Middle Skills JobsMiddle Skills Jobs
http://nationalskillscoalitiohttp://nationalskillscoalitio
n.org/ n.org/
Question for today, how do we Question for today, how do we find our way back to better find our way back to better
times?times?► First, we need a reality check on the importance & place of First, we need a reality check on the importance & place of
workforce skills & education. workforce skills & education. ► Second, we need a frame of reference to understand our policy Second, we need a frame of reference to understand our policy
options, a means of evaluating our solutions.options, a means of evaluating our solutions.► Third, we need to clarify what are the problems for which we Third, we need to clarify what are the problems for which we
seek solutions.seek solutions.► Fourth, support the good work toward recovery already Fourth, support the good work toward recovery already
underway, launch other well-directed initiatives.underway, launch other well-directed initiatives.
What Is Economic What Is Economic Development?Development?
► Investment in resources for business Investment in resources for business prosperityprosperity
► Creation of wealth for community benefitCreation of wealth for community benefit
► Leveraging public & private sector capitalLeveraging public & private sector capital
► Creation & retentionCreation & retentionof businesses & jobsof businesses & jobs
► Inducing actions that Inducing actions that improve business activity,improve business activity,increasing:increasing: EmploymentEmployment WagesWages Quality of lifeQuality of life
Policy Framework:Policy Framework:Economic DevelopmentEconomic Development
► Business Retention & ExpansionBusiness Retention & Expansion Invest in the existing business base, maintaining jobs & Invest in the existing business base, maintaining jobs &
market share, growing existing companiesmarket share, growing existing companies
► Growth by Start-ups & EntrepreneurshipGrowth by Start-ups & Entrepreneurship Improve the conditions conducive to business Improve the conditions conducive to business
development by networking resources, educationdevelopment by networking resources, education
► Business AttractionBusiness Attraction Market to, incentivize & draw new employers to our Market to, incentivize & draw new employers to our
region to increase the base number of businesses & jobsregion to increase the base number of businesses & jobs
Policy Framework:Policy Framework:Workforce DevelopmentWorkforce Development
► Income PoliciesIncome Policies Increase wage rates, hours of work, decrease tax Increase wage rates, hours of work, decrease tax
liabilities & other expenses (e.g., EITC, child care)liabilities & other expenses (e.g., EITC, child care)
► Labor Supply PoliciesLabor Supply Policies Enhance the attributes, assets & productivity of Enhance the attributes, assets & productivity of
workers, job training & education, worker suitability, workers, job training & education, worker suitability, increase supply of workersincrease supply of workers
► Labor Demand PoliciesLabor Demand Policies Wage subsidies, job creation via industry expansion & Wage subsidies, job creation via industry expansion &
attraction, addressing conditions of the workplace to attraction, addressing conditions of the workplace to attract & retain workersattract & retain workers
Policy Choices Tailored to Policy Choices Tailored to Source of ProblemSource of Problem
► Labor shortageLabor shortage
► Insufficient employee skills (skills Insufficient employee skills (skills gap)gap)
► Shortage of quality jobsShortage of quality jobs
► Regional sectoral imbalanceRegional sectoral imbalance
► Loss of existing jobsLoss of existing jobs
What Can the Workforce What Can the Workforce System Do for Economic System Do for Economic
Development?Development?► Focus on industry demandFocus on industry demand
Invest in employer-based training as well as new hiresInvest in employer-based training as well as new hires
► Industry sector concentrationIndustry sector concentration E.g., health care skills shortages, manufacturing, focus on industries E.g., health care skills shortages, manufacturing, focus on industries
which have high volume, high value, quality pay & benefitswhich have high volume, high value, quality pay & benefits Heading off layoffs by pre-employment & incumbent worker skills Heading off layoffs by pre-employment & incumbent worker skills
enhancements, adapting to technology, networking subcontractorsenhancements, adapting to technology, networking subcontractors
► Skills concentrationSkills concentration Build a pipeline connecting education, workforce training, employer Build a pipeline connecting education, workforce training, employer
demanddemand Identify & invest in skills that cross industries & occupationsIdentify & invest in skills that cross industries & occupations
► Industry development/job creationIndustry development/job creation Help identify & promote Ventura County’s economic assetsHelp identify & promote Ventura County’s economic assets Help identify industries & businesses adding jobsHelp identify industries & businesses adding jobs Offset losses in downsizing industries by developing new businesses & Offset losses in downsizing industries by developing new businesses &
facilitating the workforce transitionfacilitating the workforce transition
2121stst Century Solutions Century Solutions
► Provide All Californians Access to Provide All Californians Access to High Quality Postsecondary High Quality Postsecondary Education & Skills TrainingEducation & Skills Training
► Provide Working Adults with Provide Working Adults with Opportunities:Opportunities: to learn new skills & remain to learn new skills & remain
competitivecompetitive to move up the career ladderto move up the career ladder
► Improve Pathways from Education Improve Pathways from Education & Training to High Wage Jobs& Training to High Wage Jobs
► A New Compact for Sustained Joint A New Compact for Sustained Joint Investment:Investment: Workers committed to lifelong Workers committed to lifelong
learninglearning Businesses committed to Businesses committed to
investing in skillsinvesting in skills
ContactContact
Bruce Stenslie, President/CEOBruce Stenslie, President/CEO
Economic Development Collaborative – Economic Development Collaborative – Ventura CountyVentura County
1601 Carmen Drive 1601 Carmen Drive
Suite #215Suite #215
Camarillo, CA 93010Camarillo, CA 93010
[email protected]@edc-vc.com
805-384-1800, ext 24805-384-1800, ext 24
www.edc-vc.comwww.edc-vc.com
