Linking Economic and Workforce Development:A Regional Sector Approach

Bob SheetsBusiness and Industry ServicesNorthern Illinois University

September, 2005

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The Challenge for States

How to link economic and workforce development to:

Meet the needs of employers in key industry sectors (e.g., manufacturing, healthcare) driving state economic growth

Expand access to economic opportunities to make sure no worker or community is left behind

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The Challenge for States

Creating a competitive environment for employers to achieve sustainable competitive advantages in:

Sourcing, developing, utilizing, maintaining, and transitioning workers better, cheaper and faster than their global competitors

Using strategies that result in expanded access to economic opportunity

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In the context of…. Global economy with rapid technological

change and shifts in business investment Reduced federal and state resources and

long-term structural deficits Growing private sector presence in workforce

development within a truly public-private “workforce development industry”

Breakthrough information technology applications that have the potential to transform the industry

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How Do We Respond?

What should be the primary role and strategic approach of states?

Public program/system manager--building public workforce development systems

Strategic investor and catalyst in the industry--building public-private markets and supply chains/networks (pipelines)

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Illinois Approach Regional Economies: One Size Does Not Fit All

States are diverse mixtures of regional economies with different competitive opportunities and challenges in the global economy

Regions require different economic development and workforce development strategies

Industry Sectors: Focus on What Matters Regional economic development strategies should focus on key

industry sectors that are expected to drive growth in the new global economy

Examples: Healthcare, Manufacturing, Logistics and Transportation Public-Private Pipelines: Sustainable Solutions

Leverage and integrate workforce and education resources (e.g., P-20 initiatives).

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Defining Regions Ten geographic areas, known as Economic

Development Regions (EDRs), designated by the Governor for economic development

The regions are groups of counties with defined population centers and commuting patterns

Economic development plans—Opportunity Returns plans—have been developed for each region.

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Critical Skill Shortages Initiative (CSSI)

Launched CSSI as part of Opportunity Returns Plans

CSSI establishes LWIB-led coalitions to: Determine key industry sectors Determine size and distribution of shortages in

critical occupations Determine root causes and solutions Develop proposals to pilot-test and implement

solutions that leverage existing resources CSSI provides $3 million in planning grants to

compete for $15 million for implementing solutions

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Determining Key Industry Sectors

LWIB-led consortia select major industry sectors that are creating good jobs and are targeted by economic development organizations within the regions

Key sectors selected in the 10 regions: Healthcare Manufacturing Transportation and Logistics

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Determining Size and Distribution of Shortages

Targeted occupations must: represent strong employment demand; be critical to industry competitiveness; provide good earnings and benefits; and be appropriate for targeting by the system.

Utilize both primary and secondary data Primary—Employer surveys, industry focus groups Secondary—Projections, enrollment/completion and follow-up

data Getting consensus on shortages

Size—How Big is the Shortage? (e.g., 100 or 200 nurses per year)

Distribution--Where Are the Shortages Concentrated? (e.g., all hospitals and long-term care facilities or only rural hospitals)

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Determining Causes of Shortages in the PipelineExample: Nurses

Employee Retention

Working conditions, pay Career advancement opportunities Unrealistic expectations on work

Graduate Placement

Leaving region Not taking jobs in rural hospitals

Program Capacity and Student Completion

Childcare and financial support needs Finding qualified faculty Lack of clinical opportunities

Building Program Applicant Pool

Lack of career awareness Poor academic preparation

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Developing Solutions

Root Cause Solutions

Traditional Nursing Students Do Not Take Jobs in Rural Facilities

Expand enrollment of adult rural residents in programs Provide workplace-based upgrading programs for nursing aides in rural facilities

Non-Traditional Students Lack Academic Preparation

Adult bridge programs Healthcare K-12 programs with strong academic emphasis

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Comprehensive Pipeline Solutions Retention of nurses in practice and

recapturing of nurses not in practice Recruitment/placement into high need

areas Expanding program enrollment/capacity

and improving skills and completion rates Developing better pool of qualified youth

and adult program applicants

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Challenges and Issues

Getting the Facts Straight ---Size and distribution of shortages vary widely even in occupations with widely reported national and state shortages such as nurses

Doing More of the Same Thing Won’t Get Different Results--More training is not always the solution. Many of the major causes require different strategies, not just enrolling and placing more people

Leveraging Existing Resources—Most solutions can be done by aligning and integrating existing public and private resources. Challenge is how to provide incentives for doing it and sustaining the effort

Expanding Access---Need to make sure that solutions expand access to adults and youth facing major barriers including basic skills

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Next Steps Improving integration of LMI and performance

management systems to manage regional strategies to address short-term and long-term shortages

Changing incumbent worker and training policies to provide more flexibility in developing workforce development solutions at the regional level

Expanding the vision and scope of CSSI in address manufacturing and transportation and logistics and take the next step in healthcare

Establishing innovation grants to promote continuous improvement of regional pipeline solutions