DETROIT WORKFORCE

DEVELOPMENT

June 2019

Detroit Lags In Jobs & Employment

2

Held by

Residents

26%

Held by

Non-

Residents

74%

JOBS IN DETROIT

(2014) : 258,807

3 / 4 of the City’s jobs are held

by non-residents

Detroit employment rate lags

peers, state and US

49%

55%

61% 61%

67%68%

69%

RESIDENT EMPLOYMENT(2015, AGE 16 -64)

Sources: CSW/Chase Report -Detroit’s Untapped Talent & U.S. Department of Labor BLS Data

37%

46% 45%48%

61%

118%

183%

JOBS AS % OF

POPULATION (2014)

Detroit has only 1 job for every 3

residents

…and Too Many Residents Living in

Poverty

Sources: U.S. Census Bureau (2015). American Community Survey 1-year estimates, https://censusreporter.org/profiles/01000US-united-states/; Brookings Institute;

https://www.brookings.edu/research/u-s-concentrated-poverty-in-the-wake-of-the-great-recession/3

Residents in poverty have weaker job-seeking networks and less financial security

NEIGHBORHOOD POVERTY RATES, 2010 -2014

40%

35%

26%

23% 23%

16%15%

Detroit Cleveland Philadelphia Baltimore Atlanta Michigan USA

PEER POVERTY RATES, 2015

Disconnect Between Jobs & Residents

14%

33%

54%

0%

10%

20%

30%

40%

50%

60%

Bachelor's degree or higher Some College or Associate'sDegree

HS diploma, or less

DETROIT EDUCATIONAL ATTAINMENT VS. JOB

REQUIREMENTS

(2014)

Jobs

4

Too few Detroiters with Bachelor’s degrees, too many with a HS diploma or less

Less

than

HSResidents

Jobs

Jobs

Residents

Residents

9-Year High for Employment

229,881

203,734

200000

205000

210000

215000

220000

225000

230000

235000

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Rebooted DESC/Workforce Board

Highest Residential Employment in 10 years

22k more Detroiters employed since 2014 (5,000 + YOY)

Overall Goals

6

Our Goal

7

Increase Residential

EmploymentReduce Poverty

Increase Financial

Stability

Provide Career Pathway and Job

Opportunities for all Detroiters

~55% 34.5% $30,344Current State:

Our Strategic Pillars

8

The Mayor’s Workforce Development Board is advancing a number of programs and initiatives across these three strategy areas:

SYSTEMS CHANGE EXPAND TRAINING &

CAREER PATHWAYSBARRIER ELIMINATION

CONNECTIONS TO EMPLOYERS AND JOBS

Our Structure

• The US Department of Labor and the State of Michigan oversee the public workforce development system

• The Mayor’s Workforce Development Board is appointed by the Mayor to oversee the city’s workforce strategy and use of federal funds, as required by federal law

• Detroit Employment Solutions Corporation (DESC) is designated by the MWDB to serve as the fiscal and administrative entity that manages funds to implement programs and oversees the performance of service providers

• Third-Party Service Providers are competitively procured by DESC to provide employment and training services directly to job seekers

9

State of Michigan

Chief Local Elected OfficialMayor, City of Detroit

Detroit Employment Solutions Corporation

[501(c)3]

Mayor’s Workforce Development Board

US Department of Labor

Third-Party Service Providers

Governance: Mayor’s Workforce

Development Board

10

Our Team

Employer

Engagement

Career Pathways, Industry-Led Training

Systems

Alignment &

Policy

Focus on Barriers & Special Populations

Youth

Employment

CTE, Summer Employment,

Opportunity Youth

Outreach &

Communication

Community Engagement

11

Our Strategic Pillars

12

SYSTEMS CHANGE EXPAND TRAINING &

CAREER PATHWAYSBARRIER ELIMINATION

CONNECTIONS TO EMPLOYERS AND JOBS

Focus On Growth Industries

5,946

13

Five growth industries with jobs and solid career pathways

23,0503,27314,14611,386Q4 2017 Online

Job Postings

(Wayne, Oakland, & Macomb)

Construction, Skilled

Trades & Logistics

Information

TechnologyManufacturing

Retail, Hospitality &

Entertainment

Healthcare

Detroit at Work Launched

Creating a Clear Path to Employment

Employer-Led: DMC, St. John, and Henry Ford hospital systems designed program for Patient Care Tech roles

Created industry standard training with entry requirements build into program (ex. drug and tobacco screen)

Beaumont Health added to program in June

Focus: Hope and Oakland University selected as training providers through RFP

Employers providing feedback to

Year 1: 148 trained

91% placement rate for first two cohorts

Additional cohorts in job search phase now

15

New Training Program: Healthcare

From left, Linda Price, of Detroit, lies in bed as Shalynn McKinney, a nursing student in the Detroit at

Work healthcare training program, prepares to take her blood pressure on Friday, Dec. 15, 2017 at St.

John Hospital & Medical Center in Detroit. Detroit at Work addresses joblessness by connecting

Detroit residents to a free training program in certain career paths. Rachel Woolf / Special to The

Detroit News (Photo: Rachel Woolf / Special to The Detroit News)Training connected to job openings

Workforce/Economic Dev. Partnership:

Flex N Gate

New Manufacturing Facility in Detroit

Jointly developed training program

Company HiresDetroit at Work

Provides Training

16Training provided for 400 Detroiters

• Partnership with City and Detroit Public Schools Community District

• Modernize CTE facilities, equipment, and curriculum

• Employer and union partnerships

• Add adult training in evenings and weekends

• Align CTE programming with five growth industries:

• Construction & Skilled Trades

• Retail, Hospitality & Entertainment

• IT

• Manufacturing

• Healthcare

17

Revitalizing Career Tech Education

Why CTE?

• CTE centers important feeder of Detroit’s

talent pipeline

• Opportunity to increase youth and adults

entering into industry training

Detroit’s Career Tech System

• Fall 2017 re-launch

• Lead Sponsor: DTE Energy

18

Construction and Skilled Trades Culinary Arts, Hospitality

& Service Industries Future: Tech & Innovation Hub

GolightlyCareer Technical Center

• Fall 2018 re-launch

• Lead Sponsor: Quicken

Loans/Bedrock

Over 1,500 Detroiters Benefiting from Partnership

Grow Detroit’s Young Talent

Over 8,000 Youth Employed Each Summer

19

▲9%

▲9%▲4%

Taking SAT

Consistent Attendance

High School Graduation

GDYT participants outperformed their peers,

demonstrating increases in:

Detroit Promise - Tuition Free College

A Detroit resident graduating from any High School in Detroit is eligible:

• 2-year scholarship for anyone accepted by a community college.

• 4-year university scholarship for those with 3.0 GPA and 21 on ACT.

New for 2019: Detroit Promise will pay for Technical Certifications at partner

community colleges

• Examples: Welders, Cyber Security, Overhead Lineman, Pharmacy Technician,

Mechanic, Emergency Med Tech

201,421 Detroit students enrolled

Our Strategic Pillars

21

SYSTEMS CHANGE EXPAND TRAINING &

CAREER PATHWAYSBARRIER ELIMINATION

CONNECTIONS TO EMPLOYERS AND JOBS

System Redesign Approach

GOAL SETTING STAKEHOLDER

ENGAGEMENT

RESEARCH &

ANALYSIS

DESIGN LAB SYSTEM

REDESIGN

STRATEGY

Identified

objectives based

on values of

reducing poverty

and increasing

financial stability

Conducted

stakeholder

outreach with

key leaders,

partners and

customers

Analyzed Detroit

and national

workforce data,

identified gaps in

current system,

and researched

best practices

Held three

intensive Design

Labs with key

leaders to

develop vision

for workforce

system

Set goals and

strategies to

support new

vision; released

new funding

opportunities

22

Detroit Labor Market Findings

23

• Lack of transportation

• Lack of stable

childcare

• Foundational skills

gaps

• Physical and/or

mental health issues

• Other barriers,

including lack of

stable housing or legal

issues

DETROIT RESIDENTS

FACE MULTIPLE

CHALLENGES:

Source: 1 CSW Primary Research on Workforce Organizations 2 IPUMS-USA, University of Minnesota 3 2016 Michigan Department of Corrections, analyzed by

Wayne State University Center for Urban Studies, March 2018 4 ACS 1-year 2016 estimate

YOUTH

25,000 young adults are unemployed and out of school1; 17,000 are

in poverty2

RETURNING CITIZENS

60% of Detroiters with felonies are unemployed3

DISENGAGED WORKERS

38% of working-age Detroiters are not in the labor force; 42% of

those out of the labor force have a disability4

MOTHERS AND FAMILIES WITH YOUNG CHILDREN

32% of female-headed households are in poverty; 47% of families

with children under 5 are poverty4

Certain populations are more likely to be unemployed or in poverty:

Projected Benefits of New System

24

INCREASED NEIGHBORHOOD

ACCESS

SALESFORCE CUSTOMER

DATABASE LAUNCH

MORE RESIDENTS SERVED

Our Strategic Pillars

25

SYSTEMS CHANGE EXPAND TRAINING &

CAREER PATHWAYSBARRIER ELIMINATION

CONNECTIONS TO EMPLOYERS AND JOBS

Detroiters Face Numerous Barriers

26

Skills and

Support Gap

Transportation

Childcare

Criminal Records

Low Math & Reading

Proficiency

Lack of High School

Diploma or GED

Disabilities

Long Term & Youth Unemployment

Health & Mental Health Issues

Drivers Responsibility Fee Elimination

Full Forgiveness of all Drivers Responsibility Fees in October 2018

27

Detroit• 76,000 Detroiters with DRF

• $1,600 Average fee owed

• $120MM fees forgiven

• Top reasons: Driving without Insurance,

Driving w/ suspended license

Michigan• 350,000 Michiganders with DRF

• $600MM in fees forgiven

Detroit at Work 10-Hour Training Program• 1,696 completed early forgiveness program

• Only on-line program in State of Michigan

Criminal Records: Scope of the Issue

It is estimated that 150,000 Detroiters have a criminal record

28

By age 23, roughly 1 in 3 individuals in the US will have a criminal

record, nearly equal to the number of college graduates

Approximately 1,000,000 children in Michigan have at least one parent with a record

Collateral Consequences of a Record

29

Nearly 80% of landlords exclude people with criminal records

Entry-level job applicants with a criminal record are half as likely to get a call-back

Michiganders with a criminal record cannot obtain a state license for nearly 160 occupations – including 25 in construction trades, 45 in healthcare occupations and barbers

Employed people with a criminal record are twice as likely to avoid a brush with the law as those who are unemployed

Supporting Residents with Criminal

Records

30

Reentry Support & In-Prison Training

• Career coaching & training

• Group career readiness workshops

• Working with high-risk probationers

• Preparing individuals for transitional work

Project Clean Slate –

Criminal Record Expungement

• Integration with Detroit at Work Career

Centers since June 2018

• Online Screening for accessibility

• 2 Full-Time Attorneys

31

Skills Gaps in Detroit

200,000

Adults have a Gap in

their Foundational Skills

90,000

of whom do not have a HS Diploma

Foundational skills are the basic,

entry level skills that are pre-requisites

for success in most jobs and careers,

including literacy, numeracy, work

readiness and digital literacy

The Need in Detroit

Expanding Foundational Skills Capacity

• Increase number of Detroiters on the path to earn a diploma at an accelerated pace

• Link foundational skills with occupational training

• Develop paid work experiences with a training component

• Create training programs for Detroiters at all skill levels that end in

stackable credentials and employment

32

Other Critical Barriers to Employment

Housing

Insecurity &

Homelessness

• Foreclosure

• Displacement

• Rental property

violations

Childcare

• Nearly 30,000 missing seats

• One licensed 24 hr facility

Transportation

• No regional transit

• Avg insurance - $5,000

Addressing these Barriers at an Individual, Policy and Systems Level is Critical to Achieving Goals

Adults with Disabilities in Detroit

77,024 adults (16 and 64) have a Disability – 18.6% of Population

20%

5%75%

Employment for Detroiters with Disabilities

Employed Unemployed Not in Labor Force

• Late 2018 – Began convening providers who serve the largest number of Detroiters with Disabilities and have a goal of employment

• Now through Summer – Deep dive into best practices, data and scope of services in Detroit to uncover gaps & opportunities

• Fall 2019 – Present findings & recommendations to Workforce Board

Objectives of Sub-Committee

Understanding the Data

Understand the Current System

Understand and Build Opportunities for System Collaboration