December 2, 2015 Developing the Workforce Innovation and Opportunity Act Unified State Plan
The Opportunity Act • Workforce Innovation & Opportunity Act replaces Workforce Investment Act of 1998 • Passed the US Senate 95-3; House of Representatives 415-6 • NC 5th District Representative Virginia Fox has major role • July 22, 2014, the Opportunity Act was signed by President Obama • Initial elements of the Opportunity Act took effect on July 1, 2015 • Full implementation of the Opportunity Act Unified State Plans takes effect on July 1, 2016
Federal Guidance and NC Goals & Strategies Opportunity to be Intentionally Better • Alignment in Job Training • Integrated Service Delivery • Improved Efficiency • Job-Driven System • Sector Strategies • Career Pathways
Opportunity Act Core Programs • Title I – Youth, Adult, & Dislocated Worker Activities • Title II – Adult Education & Literacy Activities • Title III – Wagner-Peyser Employment Services • Title IV – Vocational Rehabilitation Services
Unifying Partners • WIOA core program partners form Cross-Agency Steering Council and • NC Department of Commerce Workgroups to develop Unified State Plan • NC Community College System • Strategic and operational • NC Department of Health & Human components, consistent with Services NCWorks Commission Strategic • NCWorks Commission Plan • Office of Governor
Steering Council • Barbara Boyce, Associate Vice President, NC Community College System • Brenda Savage, Chief of Planning & Policy Development DWS • Catherine Moga Bryant, Deputy Assistant Secretary of Workforce Solutions • Claudia Horn, Sr. Director of Employment Services, DHHS • Danny Giddens, Director of Field Operations DWS • Lisa Chapman, Senior Vice President, NC Community College System • Phil Protz, Chief of Program Policy, VR, DHHS • Will Collins, Assistant Secretary of Workforce Solutions
Drafting Workgroups • The Steering Council Alignment & Coordination designated eight Economic & Workforce System Data & Analysis workgroups tailored to Services to Youth plan components and Services to Persons w/ Barriers to Employment staffed each with Core Programs Operations membership representing Systems & Policies all three core agencies: • Commerce IT/Data Integration • Community Colleges Summit Planning • DHHS
Stakeholder Engagement • Statewide Summit – Durham 07/31 • Eastern Summit – Greenville 08/06 Events to educate and gather input on • Western Summit – Lenoir 08/11 writing Unified State Plan and implementing core themes of the Opportunity Act • Central Summit – Greensboro 08/19 • NCWorks Partnership Conference – Greensboro, 10/28-10/30
Review/Approval Drafting Review Submission • January 2016 Public • October 2015 • March 3 2016 Workgroups began Governor submits Public Comment Period submitting section drafts final Unified State • December 2015- to Steering Council Plan to Federal February 2016 • November 2015 agencies NCWorks Commission reviews completed draft Steering Council • July 1, 2016 plan finalizes unified draft Program Year 2016 plan • January 22, 2016 begins under State Federal agencies • December 2, 2015 publish final rules to Unified Four Year NCWorks Commission implement WIOA Plan and Regional plan introduction & • February 17, 2016 and Local Area Four status update NCWorks Commission Year Plans • December 2015 recommends final State Plan to Governor for Draft plan provided to approval and signature Governor’s Office for feedback
Status of NC Unified State Plan • All workgroups have submitted assigned draft components to Steering Council • Steering Council is synthesizing content, finalizing draft, and preparing to submit to the NCWorks Commission
Economic & Workforce Analysis
5 Trends in NC’s Economy Economy’s Expanding Shift in Industry Composition Changing Participation in the Labor Force New Demands of the Workforce Worker – Employer Mismatch 12
Basic Economic Conditions Monthly Change in Employed from Start of Each Recession 1980 1981 1990 2001 2008 • Unemployment Rate Down 0% 6.0 percentage pts from Jan 2010-15 -1% • More Employed Residents -2% 318,500 more jobs, Jan 2010-2015 -3% • Jobs Up 361,00 more jobs, Jan 2010-2015 -4% • Unemployment Rate Not Yet -5% Back from Pre-Recession 5.3%, Jan 2015 vs 4.7%, Jan 2007 -6% -7% 0 2 4 6 8 10 1 Year 14 16 18 20 22 2 Years 26 28 30 32 34 3 Years 38 40 42 44 46 4 Years 50 52 54 56 58 5 Years 62 64 66 68 70 6 Years 13
Labor Force Declining Participation Rates 67% • NC’s dropped 5.2 pts • Nearly 2x US decline 66% 65% • NC Peaked in 1989 US 64% 62.9% 63% 62% 61% NC 60.0% . 60% 59% 58% Jan Oct Jul Apr Jan Oct Jul Apr Jan '09 '09 '10 '11 '12 '12 '13 '14 '15 14
Causes Found in Demographics 30% 29.2% • Retirees 29% 28.5% 55 years old or older • Youth Choosing 28% School over Work 27% • High School & College 25.9% 26% 35 to 54 year olds 25% 24.5% 24% 23% 22% 2009 2011 2013 2015 2017 2019 15
Youth Unemployment Still Up 30% • Youth obtain jobs at similar 25% rate to adults Youth Ages 20% 16-21 22.5% 15% 10% 11.5% Adults Over Age 21 5% 6.8% 2.9% 0% 2000 2002 2004 2006 2008 2010 2012 2014 16
High Job Separation Rate 4.5% • Nearly 2x rate of adults 16 to 24 • Could youth make better Year Olds career decisions early on? 3.0% 2.6% • Could youth be better informed or prepared about work? 1.5% 1.1% 25 to 54 Year Olds 0.0% 2005 2008 2011 2014 17
Industry Employment Changes 2000-2014 Goods-Producing Health Care & Social Assistance 177,602 to Accommodation & Food Services 103,000 Service-Delivering 82,518 Educational Services Professional & Technical Services 63,918 Administrative & Waste Services 52,659 Finance & Insurance 27,849 -11,616 Information Transportation & Warehousing -12,548 -52,080 Construction Manufacturing -310,192 18
Occupational Growth Projections 2012-2022 Projections by Minimum Educational Attainment Occupations Less than High School 12% requiring Post-Secondary ed. High School or Equivalent 11% growing faster 13% Some College, no degree Postsecondary non-degree 18% Associate’s Degree 21% Bachelor’s Degree 16% Master’s Degree 22% 20% Doctoral or Professional Degree 19
Educational Supply vs Demand 2014’s Working Age Supply vs 2025’s Occupational Demand 67% NC’s workforce Current 2014 Supply (CPS) Demand 2025 (Georgetown) will need more 54% education for 2025’s 46% demands 36% 33% 28% 22% 17% 9% 9% HS, Equivalent or Associate Degree or Bachelor's Degree Master's, Post Secondary Ed Below Some College no Professional, and/or Degree Doctorate Degree 20
Job Openings Peaking Unemployment Rate Still High Signs of a Mismatch 160,000 138,956 140,000 According to 2014 Employer Needs Survey: • 44% of Employers had 120,000 difficulty filling at least one position 100,000 • At least 40% of those cited 80,000 workers’ lack of • Work Experience 60,000 • Education Credentials or • Technical Skills 40,000 Jan Dec Nov Oct Sep Aug Jul Jun '09 '09 '10 '11 '12 '13 '14 '15 21
Strategic Elements
Vision To grow the North Carolina economy by strengthening the state’s workforce and connecting employers to skilled, high quality employees. “…Through the NCWorks initiative, partners create a stronger alignment of services and resources to meet the workforce needs of businesses, connect North Carolinians to career and technical training and quality employment, provide the appropriate supports for populations with barriers to employment, and use data to monitor and assess program outcomes .”
Goals • Create an integrated, seamless, and customer-centered workforce system • Create a workforce system that is responsive to the changing needs of the economy • Prepare workers to succeed in the North Carolina economy and continuously improve their skills • Use data to drive strategies and ensure accountability
Strategies Strategies for the Unified State Plan were developed using the NCWorks Commission’s Strategic Plan, as well as strategic plans from the NC Department of Health and Human Services and the North Carolina Community College System.
State Strategy Implementation The Unified State Plan describes how: • NC will fund core program activities to implement the plan, including how such activities will be aligned across core programs and partner programs; • Activities will achieve alignment & coordination NCWorks Career Centers, partners outside the plan, and activities such as Registered Apprenticeship, Career Technical Education, and human services programs such as Temporary Assistance to Needy Families (TANF); • will coordinate activities and resources to provide comprehensive, high quality, customer - centered services to Job Seekers, including those with barriers to employment; • will coordinate activities and resources to provide high quality, comprehensive services to employers to meet their current workforce needs;
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