WIOA and what it means to economic development

1#EDbridgeWD#EDbridgeWD

Workforce Innovation and Opportunity Act

of 2014 (WIOA):

What it Means to Economic Development

Presented by: Colleen LaRose


Founded in 2012, the North East Regional

Employment and Training Association

(www.nereta.org) provides training to economic

development organizations (EDOs) and workforce

investment boards (WIBs) throughout the country.

This organization has significantly opened lines of

communication between professionals in economic

development, workforce development, education,

and business through LinkedIn groups and

professional development webinars that NERETA

provides on a national basis.

Camoin Associates (www.camoinassociates.com)

specializes in providing economic development

solutions to both public and private sector clients,

serving economic development organizations (EDOs),

local and state governments from Maine to Texas,

private sector corporations, and developers.

The firm’s work includes economic development

strategies where we build consensus among

leadership around critical opportunities and issues in

communities across the country, from small, rural

communities to large metropolitan areas and entire

states.

http://www.nereta.org/

http://www.camoinassociates.com/


What is Workforce Development?

Wikipedia: WD is an American economic development approach that attempts to enhance a region's economic stability and prosperity by focusing on people rather than businesses.

Federal Reserve of St Louis: WD has come to describe a relatively wide range of activities, policies and programs employed by geographies to create, sustain and retain a viable workforce that can support current and future business and industry.

Colleen’s definition: WD is the government system that helps put people to work.


Purpose of WF Development

Economic • Align local business needs with skills in the

workforce

• Learn specific marketable skills

• Facilitate career pathways

• Learn to be innovative, creative, resilient

• Provide for adult basic survival needs

• Financial literacy

• Adult education

• English as a second language (ESL)

• Coping with a disability in the workplace

• Workplace readiness skills

• Connections to childcare, housing,

transportation, addiction counseling,

mental health needs, etc.

Purpose of Education

Economic• Basic survival (reading, writing, basic math)

Cultural Understanding• Cultural appreciation

• Values (why is my culture the way it is)

• Why is the culture of other people the way it is

Social• Make intelligent decisions as a society

• Uphold democracy

• Involvement with other people (appreciate

individual differences)

• Conform to society

Personal• Develop Individual talents and aptitudes

• Appreciate learning


History of Workforce Development

• Land Grant Universities: Morrill Acts (1862 and 1890)

• Creation of Federal Department of Labor (1913)

• New Deal: Works Progress Admin - WPA and Wagner Peyser (1933-1942)

• Manpower Development and Training Act –MDTA (1962)

• Comprehensive Employment and Training Act – CETA (1973)

• Job Training and Partnership Act –JTPA (1983)

• Workforce Investment Act -WIA (1998)

• Workforce Innovation and Opportunity Act - WIOA (2014)


Too Little funding: 1979 peak funding. In real dollars, funding has dropped by 70 %!

(12% drop between 2000-2007)

Shift away from Developing Human capital: emphasis on “work first” …with training

as a last resort…over time has caused deterioration of workforce skills in the marketplace at a

time when even more skills are needed due to burgeoning technologies

Smaller share of low-skilled, low income and youth being provided training

Major Problems with WIA


Other Problems with WIA• Not coordinated with economic development

• Social service mentality, not proactive in supporting business

• Grant driven…chasing dollars. Change strategies with new funding opportunities.

• Lack alignment (local, regional, state, federal) of strategic planning priorities

• Changing priorities with new administrations

• Boards too big and ineffective

• Silos of service – not leveraging resources and collaborating as needed

• Training that does not result in employment

• Reactive not proactive (too tied up with red tape)

• Best practices not widely shared, little to no training for WIBs other than legislation rules

• Not supportive of entrepreneurship

• Civil servants not “motivated”

• Need more OJT and apprenticeship


Workforce Innovation and Opportunity ACTWIOAThe Improvements it Brings


Coordination of Key ProgramsStrategically aligns and promotes coordination of key programs in employment,

education, and training at fed, state, regional and local levels through American Job

Centers (former One Stop Career Centers).

Wagner Peyser

Adult education

Vocational rehabilitation

and former WIA programs (adult, dislocated worker and youth programs)

• now required to co-locate, share resources, utilize integrated intake and reporting systems

• all now be subject to reporting outcome measures (such as credential attainment, entered employment, employment retention and wage gains)


Increased Accountability and Transparency of Programs

• All training providers must report on outcomes of students

• Assures accountability and transparency of training programs

• Those seeking training are not forced into “work first” before training is considered as an option


Best Practices Focus

Builds on proven best practices such as:

• sector strategies

• career pathways

• regional economic development approaches

• work-based learning (such as apprenticeships and on-the-job training)

• incumbent worker training.


Emphasis on Proper Planning

Requires four-year state plans be submitted to the Federal Department of Labor with two-year updates (first report due March 2016).

Local plans must align with state plans

Plans must include:

• strategic planning elements

• operational planning elements

• operating systems and policies

• program specific requirements

• implementation strategy

• assurances


Employer Emphasis

• Enhanced employer services

• Employer satisfaction surveys

• Benchmarks of performance (yet to be determined) –How well are employer needs being met by the American Job Centers?


WD/ED Collaboration

Collaboration of regional economic development with workforce development initiatives

• Joint planning

• Joint research

• Sharing of data

• Collaborative grant applications

• CEDS planning


New Focus for Workforce System on Employer

1. Make federal workforce training programs and policies more focused on imparting relevant skills with job-market value

2. More easily accessed by employers and job seekers

3. More accountable for producing positive employment and earning outcomes


Economic development and workforce development collaboration required to:

• Share information about business needs

• Align local goals

• Coordinate service delivery

• Leverage resources

• Create a common vision


Ready to Work: Job-Driven Training and American Opportunity

Job Driven Checklist

“We are using the Job driven checklist as a tool to maximize the effectiveness of 25 competitive grant programs.”

New and existing CEDS plans

State WIB plans(likely required of local WIBs by State WIBs)


Job Driven Checklist

ESMORES

1. ENGAGE EMPLOYERS

2. SMART CHOICES

3. MEASUREMENT MATTERS

4. OPENING DOORS

5. REGIONAL PARTNERSHIPS

6. EARN AND LEARN

7. STEPPING STONES


ENGAGING EMPLOYERS

• Work up-front with employers to determine local hiring needs

• Design training programs responsive to those needs –from which employers will hire


SMART CHOICES

• Better use of data to drive accountability

• Inform what programs are offered

• Inform what is taught

• Offer user-friendly information for job seekers to choose programs and pathways that work for them and are likely to result in


MEASUREMENT MATTERS

• Measure and evaluate employment and earnings outcomes.

• Know outcomes of training programs

• how many people become and stay employed

• what they earn

• help job seekers decide what training to pursue

• help programs continuously adjust to improve outcomes.

• NJ consumer report card


OPENING DOORS

• Break down barriers

• Access to job-driven training and hiring for any American who is willing to work

• Access to include supportive services and relevant guidance.


REGIONAL PARTNERSHIPS

• Coordinate American Job Centers with:• Local employers

• Education and training providers

• Economic development agencies

• Other public and private entities

• Make the most of limited resources


EARN AND LEARN

• Offer work-based learning opportunities with employers –As training paths to employment.

• On-the-job training (OJT)

• Internships (paid is preferable!)

• Pre-apprenticeships and Registered Apprenticeships

(also volunteer opportunities in the community)


STEPPING STONES

• Seamless progression from one educational stepping stone to another (career pathways)

• Across work-based training and education, so individuals’ efforts result in logical and sequential progress.

• Opportunity to progress in careers by obtaining new training and credentials.


ESMORES

ENGAGE EMPLOYERS

SMART CHOICES

MEASUREMENT MATTERS

OPENING DOORS

REGIONAL PARTNERSHIPS

EARN AND LEARN

STEPPING STONES


Why Should Workforce Development matter to Economic Developers?

Workforce development is the number one reason that businesses now choose their location, surpassing:

• tax incentives

• low cost of business

• Transportation

• and even quality of life!


What’s the workforce worth in cold hard cash?

$ Total cash in the world is about 45 T

$ Total assets in the world about 500T(not including human capital)

$ US wealth – + = 58T

+ + = 118T

US-4.5 % of world’s population, 12% of the hard assets wealth

By the way, US debt is 16T…one fourth of all physical assets.

About $50,000 per every man, woman and child in the US)


Workforce Development:

Coordination of skillsdevelopment initiatives that

prepare individuals for current and future occupations, giving

businesses the human capitalnecessary to meet demand.

Economic Development:

Implementation of businessdevelopment and quality of

life policies that influence thegrowth and restructuring of aregion to improve its overall

economic well-being.

Definitions


Workforce Development1. Job Development (who has jobs)

2. Collaborative

3. Federally funded

4. Attempts to be a system

5. Employer services related to acquiring employees (job postings, screening, OJT, etc.)

6. Jobseeker services (Eligibility/Resumes)

7. Coordination of education providers

8. Youth Support

9. Coordination of social services supports

10. Holistic support system

Economic Development1. Job Creation (make jobs)

2. Compete locally/regionally

3. Locally and state funded

4. Not a system

5. Business recruitment/retention services such as Tax Incentives, Location Hunting

6. Infrastructure/transportation support

7. Business development support

8. Community Development support

9. Bottom-Line $$$

10. Quality of Life (e.g.. Parks)

Comparisons

31#EDbridgeWD

Ten Steps to Aligning Workforce Development and Economic Development

1. Evaluate local economic/workforce strengths and weaknesses.

2. Evaluate community’s place in the broader regional economy.

3. Evaluate community’s economic development and workforce development vision and goals.

4. Evaluate community’s strategy to attain its goals.

5. Evaluate connections between economic development, workforce development and other local

policies.

6. Evaluate the regulatory environment.

7. Evaluate local economic development and workforce stakeholders and partners.

8. Evaluate the needs of your local business community.

9. Help create an environment that supports the start-up, growth and expansion of local businesses.

10. Evaluate community’s economic development and workforce development message.

Inspired by a report from National League of Cities and IEDC: “The Role of Local Elected Officials in Economic Development. 10 things

you should know.”


• 3033 counties nationally, and 285 cities with more than 100,000 people

• 380 EDD Regions, 568 WIB regions

• Multiple economic development partners (county, city, state, regional, private, public etc.) who are competing with one another

• Some regions have no active economic development planning

• Workforce development seen as service provider, (job seeker focused)

• Workforce development - “new kid on the block”

Coordinating…no one said this was going to be easy!


• Dynamic Environment business cycles impact amount of capital companies can invest in expansion/growth (ie tax revenue to fund eco dev), the public workforce system can be limited in investments it can make (Incumbent worker training in good economic times/OJT in bad economic times).

• Forecasting is an inexact science

• Conflicting priorities (Globalization/Buy American)

• Economic Gardening vs. Recruitment

• Infrastructure support/growth vs. tax base (new schools, new neighborhoods, more traffic, etc)

• Business vs. environmental/quality of life

• Business vs. sustainable wages

25% of jobs in the US pay below the poverty line,(less than $23,000 yr for family of 4)50% of the jobs in the US pay less than $34,000 a yearFrom Economic Policy Institute

Goal Setting Challenges


Prioritizing the most important asset:

WORKFORCE!

• Career awareness through education

• Lifelong career planning/pathways

• Lifelong preparation and training

• Retention (of businesses and talent)

• Succession planning

• Employer outreach (Sector and Cluster Strategies)

• Goal setting

• Marketing

• Grant writing

• CEDS planning

• Entrepreneurship Support

• Community volunteering activities

Finding the Synergies!


How CamoinHelps

Provides research

services to guide decision-

making

Facilitates goal-setting

Develops Action Plans

Evaluates progress

Convenes the right parties at the right times


Presentation by:

Colleen LaRose

Founder & CEO | North East Regional Employment &

Training Assoc.

Workforce Development Specialist | Camoin Associates

For questions or comments, please contact:Colleen LaRose

Camoin Associates & NERETA

E-mail: [email protected]

Phone: 908-995-7718

Website: www.nereta.org

Twitter: @neretaorg

For more information about Camoin Associates: Visit our blog for information about upcoming webinars:

http://www.camoinassociates.com/blog/

Visit our website: www.camoinassociates.com

Follow us on Twitter: @camoinassociate

Find us on Facebook



mailto:[email protected]


https://twitter.com/neretaorg



https://twitter.com/camoinassociate

https://www.facebook.com/camoinassociates

37#EDbridgeWD

Presentation by:

Colleen LaRose

Founder & CEO | North East Regional Employment & Training Assoc.

Workforce Development Specialist | Camoin Associates

For questions or comments, please

contact:Colleen LaRose

Camoin Associates & NERETA

E-mail: [email protected]

Phone: 908-995-7718

Website: www.nereta.org

Twitter: @neretaorg

For more information about Camoin

Associates: Visit our blog for information about upcoming

webinars: http://www.camoinassociates.com/blog/

Visit our website: www.camoinassociates.com

Follow us on Twitter: @camoinassociate

Find us on Facebook



mailto:[email protected]


https://twitter.com/neretaorg



https://twitter.com/camoinassociate

https://www.facebook.com/camoinassociates

WIOA and what it means to economic development

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