Pennsylvania’s 21st Century Workforce Initiatives

Overview

• 21st Century Economic Realities

• PA Workforce Development Goals

• Job Ready PA Investments

• Focus on Targeted Industry Clusters

• Discussion

The Knowledge Based Economy“Today, the knowledge required to run the

economy which is far more complex than in our

past, is both deeper and broader than ever

before. We need to ensure that education in the

United States, formal or otherwise, is supplying

skills adequate for the effective functioning of our

economy.”…………Alan Greenspan, Former Chairman of the Board of Governors

of the US Federal Reserve, at the Greater Omaha Chamber of

Commerce 2004 Annual Meeting, Omaha, 20 February 2004

21st Century Economic Realities• Rapidly changing new technologies

• Globalization

• Shift to a service-dominated economy

• Business restructuring

• Erosion of career ladders

• Increase in career and job changes

21st Century Economic Realities

Median Personal Income of Pennsylvania Workers

by Educational Attainment, 2005

$17,001

$26,581

$35,000

$45,480

$61,012

$25,263

0 10000 20000 30000 40000 50000 60000 70000

Less than a High School Diploma

High School Diploma or GED only

Some College, No degree

Associates Degree

Bachelor's Degree

Post-Graduate Degree

21st Century Economic RealitiesUnskilled jobs are disappearing and demand for

higher skills is rising

Source: U.S. Bureau of Census and Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis (Pennsylvania statewide)

PA Workforce Development Goals• Strengthen Pennsylvania Industries and

Create Industry-Led Training Strategies

• Increase Opportunities for Pennsylvania’s Residents

• Prepare Our Youth for the Careers of

Tomorrow

• Implement Rigorous Accountability Standards

Job Ready PA: $91 million in new investment

Job Ready PA: Keeping Pennsylvania Competitive; Creating Opportunities

**Increased funding for community colleges of $22.8 million in fiscal year 05/06, the largest increase in 15 years, is enhanced with another increase of $12.6 million in fiscal year 06/07

   

New State Funds Redirected FundsCreating Industry Partnerships $5,000,000

Incumbent Worker Training $15,000,000

Workforce Advancement Grant For Education (WAGE) $10,000,000

Advanced Technology Workers $3,000,000

Community College ** $12,600,000

Career & Technical Education $2,955,000 $8,000,000

High School Reform – Project 720 $9,000,000

Tutoring $66,000,000

Expanding Nurse Education Capacity $10,000,000 $10,000,000

2006 - 2007 Proposed Budget

Job Ready PA: Industry Partnerships

Strengthen Pennsylvania Industries and Create

Industry-Led Training Strategies

• Develop Regional Industry Partnerships– Align training and education resources to

industry demand– Aggregate training needs– Promote industry-recognized certifications

and develop career ladders within and between firms

Pennsylvania’s Workforce System Must Be Industry-Led: Nationally Award Winning Cluster Analysis

2002 Average 2002 AverageMonthly Employment Annual Wages

867,868 $39,366 Bio-Medical 81,564 $64,457 Health Care  786,304 $36,763

776,404 $42,845 536,572 $35,121 495,482 $43,061

Chemicals, Rubber and Plastics 79,936 $46,643

Electronics 75,760 $50,792 Metals and Metal Fabrication 141,001 $41,060 Printing 42,397 $37,196 Vehicle and Vehicle Equipment 45,029 $48,267

347,795 $40,927

314,088 $26,308 Food Processing 86,865 $36,106

209,442 $56,742 136,946 $36,588 105,525 $34,317

3,790,122 $39,741

5,507,323 $35,791 68.80% 111.00%

Targeted Industry ClusterLife Sciences

Business and Financial ServicesEducationAdvanced Materials and Diversified Manufacturing

Building and Construction 

Agriculture and Food Production

Information and Communication Services

Percent of Total in Targeted Clusters

Logistics and TransportationLumber Wood and PaperTargeted Industry Clusters

Total Statewide

Focus on High Priority Occupations• Aligns workforce training and

education dollars with targeted industry clusters

• Defined as: – Job categories in demand by employers– Have higher skill needs– Most likely to provide family-sustaining

wages

Focus on High Priority Occupations

• High Priority Occupations Will Govern:– Equipment and curriculum development grants

to Career and Technical Education centers– WAGE - financial aid for working adults– Community College stipends for credit

workforce development courses and reimbursement for non-credit workforce development courses

– Equipment grants for areas of the state that are educationally underserved

Job Ready PA Investments

Increase Opportunities for Pennsylvania’s Residents

• Opportunities for those already employed– Train 7,000 incumbent workers in targeted

industries– Provide 10,000 adult students with financial

aid through Workforce Assistance Grants for Education (WAGE)

– Increased funding for community colleges

Industry led Initiatives Keep Businesses Competitive and Create OpportunityAddress Pennsylvania’s Critical Health

Career NeedsA $40 million PHEAA funded initiative

supporting PA Center for Health Career’s Nurse Education Capacity Recommendations:– Nurse Educator Fellowships– Clinical Education Expansion Programs– Attraction and Retention Projects

Make Getting More Education and a Degree More Affordable for Adults

Accelerate Degree AttainmentCore-to-Core Articulation

– Require colleges to accept all credits from one community college to another and from community colleges to 4-year colleges and universities

– Accelerate degree attainment by making credits transferable

Make Getting More Education and A Degree More Affordable for Adults

Accelerate Degree AttainmentPrior Learning Assessment• Develop a credit course or a non-credit

instructional program that assists students in evaluating and awards credit for knowledge and skills gained from non-traditional education and work experience

• Accelerate degree attainment through prior learning assessment

Higher Education in the 2006-07 Budget: Higher Education in the 2006-07 Budget: Pennsylvania is making significant investments in higher education funding in the 2006-07 budget, increasing funding by 3.7 percent. According to a 2005-06 study by the College Board, Pennsylvania had the best

national ranking for tuition at four-year public institutions.

5.0% increase for the 5.0% increase for the Community Colleges . . . . . . . . . . . . . . . . .. . . . . . . . . $ 264.7 M $ 264.7 M

4.5% operating increase for 4.5% operating increase for State System of Higher Education ……………... $483.0 M ……………... $483.0 M

4.0% operating increases for the 4.0% operating increases for the State-Related UniversitiesState-Related Universities Penn State University . . . . Penn State University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . $322.4 M $322.4 MUniversity of Pittsburgh . . . .University of Pittsburgh . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . $163.1 M $163.1 MTemple University . . .Temple University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $168.7 M $168.7 MLincoln University . . . . Lincoln University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13.5 M $13.5 M

Total – State-Related Universities . . . . . . . . . . . . . . . . . . Total – State-Related Universities . . . . . . . . . . . . . . . . . . $667.7 M $667.7 M

3.0% for 3.0% for Non-State Related Universities and CollegesNon-State Related Universities and Colleges . . . . $ 87.5 M . . . . $ 87.5 M

4.9% increase for the 4.9% increase for the Pennsylvania Higher EducationPennsylvania Higher EducationAssistance Agency’sAssistance Agency’s Grants to Students program . . . . . Grants to Students program . . . . . . . .. . . $386.2 M $386.2 M

119.4% for 119.4% for SciTech ScholarshipsSciTech Scholarships . . . . . . . . . . . . . . . . . . . . . $ 6.8 M . . . . . . . . . . . . . . . . . . . . . $ 6.8 M

Expansion of clinical education opportunities and student Expansion of clinical education opportunities and student retention activities to address a projected retention activities to address a projected shortage of nursesshortage of nurses $ 10.0 M $ 10.0 M

Job Ready PA Investments

 

Prepare Our Youth for the Careers of Tomorrow

•Improve the skills of high school graduates

–Project 720

–Dual Enrollment

–Career and Technical Education

Performance Management Plan

 Implemented July 1, 2004

•Workforce and economic indicators demonstrating how Pennsylvania compares to other states

•Common quantitative measures for all programs

•Strategic measures that determine whether the program met overall commonwealth goals

•Publish Annual Reports

High Performance Local Workforce Investment Boards

 

Prepare Our Youth for the Careers of Tomorrow

•Set new standards based on industry needs, high priority occupations

•Demand high performance

- $22 million in incentives

•Provide technical assistance

•Require corrective action

•Institute interventions

Discussion & Questions

For more information on any projectscontact our office at (717) 783-7184

Online at

www.paworkforce.state.pa.us