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Amy Walstien

Minnesota Chamber of Commerce

Aligning Educationand Workforce Needs

Senate Higher Education and Workforce

Development Committee

March 5, 2013

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The Minnesota Jobs OutlookBetween 2010 and 2020:

o Minnesota businesses will fill 1,031,000 job vacancies(1)

663,000 replacement jobs (retirements and vacancies) 368,000 new jobs due to economic expansion

o 70% of jobs in MN will require some level of

postsecondary education(2)

o Minnesota will be one of five states leading the nation in

jobs requiring postsecondary education/degrees(2)

Source: (1) Minnesota Jobs Outlook 2010-2020, Department of Employment and Economic Development (July 2012); (2) Georgetown Center on Education and

Workforce Help Wanted: Protecting Jobs and Education Requirements through 2018 (2010)

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Jobs Outlook Concerns AheadLabor force shortage

o 150,000 workers short of projected workforce needs(1)

o

Minnesota is NOT currently on track to produceworkers with training to fill forecasted job openings

Skills gap with incumbent workforce(2)

o Strong academic background in core subjects

o Technical competencies/hard skills

o Soft skills

Source: (1) Tom Stinson Presentation to House Joint Education Committee (February 2013); (2) Deloitte, Manufacturing Skills Gap: Economic

Implications and Strategies for Narrowing It (Dec. 2012)

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Developing the Best TalentImmediate Need:

Greater supply of workers

with postsecondaryeducation

Long Term Goal:

Strengthen the education-to-workforce pipeline

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Changing Levels of Education

Source: (1) Lumina Foundation: A Stronger Nation Through Higher Education (2012); (2) Georgetown Center on Education and Workforce Help Wanted:

Protecting Jobs and Education Requirements through 2018 (2010)

Jobs Requiring: 2010 Projected2018

Change

Bachelors Degree

31.5% 36% +4.5Completed PostsecondaryDegree/Credential

45% 57% +12

Some Postsecondary

(not completed)

23% 13% -10

High School Graduate 24% 23% -1Some High School 6% 6% -

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Minnesotas Completion ChallengeONE: Increase the number of students coming outof K-12 education system, going into postsecondary

TWO: Increase completion rates of studentsalready enrolled in college

THREE: Increase training efforts aimed at non-

traditional students

FOUR: Improve college readiness of high-schoolgraduates

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Workforce Alignment SessionsSpring/Summer 2012

GOAL: engage employers in developing

projections for how many workers andprofessionals, with what kinds of skills,will be needed, for what kinds of jobs

MnSCU + Minnesota Chamber + DEED

Over 50 employer-based sessions

Sector Reports Available:

http://www.mnscu.edu/business/workforceassessment/

http://www.mnscu.edu/business/workforceassessment/http://www.mnscu.edu/business/workforceassessment/

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Alignment Session - Key TakeawaysWhat Minnesota Employers Look For:o Generally, employers want employees with broad

knowledge that prepares them for work in their sectoro But many employers also need employees with very

specific skill sets and training

o Growing number prefer to hire a worker with solid

academic and communication skillsand good work ethic

AND provide the worker with on-the-job training andhave the worker advance skills by enrolling informal training

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Alignment Session - Key TakeawaysWhat Minnesota Employers Said:

o Critical skills lacking in new hires, regardless of industrysector or geographic location

o Greater math aptitude needed(and applied math)

o Improvement also needed in basic literacy skills

o Work experience is critical for students entry-leveljobs, internships, apprenticeships, applied learning, etc.

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Alignment Session - Key TakeawaysBroader Issues: Rapid technological advances - difficult for education

programs keep pace with training needs Stronger connection between high schools and

higher education

Employers felt data did not accurately reflect the real

demand for workers (underestimated demand) Lack of awareness among students about high

demand careers in Minnesota

Need forsnapshots of regional labor markets and

related education programs

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Step One: Enhance Labor Market Data

Itasca Project - Workforce Alignment Team

o Working to build enhanced labor market data

system

Real-time labor market projections

Help employers forecast hiring needs

o Recommendations forthcoming Spring 2013

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Step Two: Supply & Demand Reporto Match DEMANDdata with SUPPLYdata

o Help students and incumbent workers understand

workforce demand areaso Identify programs and institutions producing

degrees/credentials in the industries and regions

where businesses are hiring

o Assist higher education institutions in betteraligning programs with states economic needs

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Step Three: Use Data to Drive TrainingProgram Offerings

o MnSCU - using findings from Workforce Alignment

Sessions to drive program offeringso Focus on scaling up programs in high-need/high-

growth sectors

Student Awarenesso Increase student demand for programs in high-

need/high-growth sectors

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What It Looks Like Skills@Work

developedSkills Profilesusing existingdata

SF 899 would

require similarreports statewide andregional on

DEED website

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Re-Cap What S.F. 899 Does:o State and regional supply/demand reports,

easily accessible on DEED website

o MnSCU uses as one of its tools to drivealignment of programs with state andregional needs

o Workforce Centers help incumbent workersfind information on credentialing programs

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Questions, Comments?

Amy Walstien

Director, Education &Workforce Development PolicyMinnesota Chamber of Commerce651.292.4661awalstien@mnchamber.comTwitter: @MCC_AWalstien