Workforce Development in the 21st Century · Workforce Development in the 21st Century A discussion...
Transcript of Workforce Development in the 21st Century · Workforce Development in the 21st Century A discussion...
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Workforce Development
in the 21st Century
A discussion for Houston’s civic influencers, presented by Microsoft and
featuring the Brookings Institution.
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Digitalization of the American Workforce
Raamel Mitchell
Central U.S. Citizenship & Public
Affairs Director, Las Colinas
Campus Director
Workforce Development in the 21st Century
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Welcome Remarks
Raamel Mitchell
Central U.S. Citizenship & Public
Affairs Director, Las Colinas
Campus Director
Paula Pineda
City of Houston Office
of Business Opportunity
Workforce Development in the 21st Century
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The Future of Work
Workforce Development in the 21st Century
Alan Berube
Senior Fellow and Deputy Director
Brookings Institution Metropolitan
Policy
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Programmed InclusionDigitalization and Opportunity
Alan Berube, Brookings Metropolitan Policy Program
@berubea1 Building a 21st century workforce, Houston, April 16, 2019
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Ensuring the future works3
Inclusion, prosperity…and tech
How’s Houston doing?
1
2
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Inclusion, prosperity…
and tech
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Growth Inclusion
Prosperity
Economic success requires growth, prosperity, and inclusion
Jobs
GDP
Entrepreneurshi
p
Productivity
Standard of living
Average wages
Employment
rateMedian earnings
Relative poverty rate
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Greater inclusion yields faster growth
Source: Brookings analysis of Opportunity Insights data
-0.6%
-0.4%
-0.2%
0.0%
0.2%
0.4%
0.6%
Lowest Highest
Upward mobility for low-income children
Annualized GDP per capita growth rate
100 largest metro areas, 2005-14
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Tech, meanwhile, both empowers and divides
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Tech empowers: Digitalization brings higher wages
Source: Muro et al., “Digitalization and the American workforce”
$ 30 K
$ 48 K
$ 73 K
Low Medium High
Average annual wage by digital score
United States, 2016
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Tech divides: Tech tends to increase wage dispersion
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Average annualized growth rate by occupation group
United States, 2010-16
Source: Muro et al., “Digitalization and the American workforce”
Less
Digital
More
Digital
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How’s Houston doing?
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Houston’s economy has grown, but hasn’t delivered greater prosperity and inclusion
Source: Berube et al., “Metro Monitor 2019”
2007-17 trends
GROWT
H
PROSPERITY INCLUSION
+17%(13th)
Jobs
+19%(22nd)
GDP
+4%(8th)
Jobs at
young firms
+2%(74th)
Productivity
-4%(78th)
GDP per
capita
+5%(55th)
Average
annual wage
+0.1%(49th)
Median
earnings
-3%(53rd)
Relative
poverty
-0.3%(67th)
Employment
rate
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Automation and AI will exacerbate these trends
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Automation has already caused significant labor market change
Source: Muro et al. “Automation and artificial intelligence: How machines are affecting people and places”
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0 20 40 60 80 100
Occupational wage percentile, 1980
Routine-task
intensity
Employment share change, 1980-
2016
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Source: Muro et al. “Automation and artificial intelligence: How machines are affecting people and places”
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 10 20 30 40 50 60 70 80 90 100
Occupational wage percentile
Automation potential
United States, 2016
Looking forward, automation may affect low-wage sectors more
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Source: Muro et al., “Automation and artificial intelligence: How machines are affecting people and places”
Houston ranks among the top third of large metro areas for likely automation pressures
46.3%Avg. automation
potential in Houston
31st
Highest among 100
largest metro areas
39.1% - 44% 44% - 46% 46% - 48% 48% - 50% 50% - 56.0%
Average automation potential
100 largest metro areas, 2016
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Source: Brookings analysis of EMSI data
Many low-skill Houston jobs are highly vulnerable to automation
OccupationAutomatio
n
potential
Houston
employment, 2017
Combined food prep and serving workers 87% 89,100
Waiters and waitresses 77% 56,900
Stock clerks and order fillers 86% 42,000
Heavy and tractor-trailer truck drivers 81% 38,600
Bookkeeping, accounting, and auditing
clerks86% 33,200
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Several already-vulnerable groups may experience more disruption
49%
28%
51%
41%
48%
43%
37% 36%
0%
10%
20%
30%
40%
50%
60%
Less than a
Bachelor's
Bachelor's or
higher
16-24 25-54 Hispanic Black Asian White
Average automation potential in Houston
By education/age/race, 2017
Source: Brookings analysis of 2017 American Community Survey microdata
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All occupationsTransportation Personal care All occupations Food service All occupations Facilities care Construction
Source: Brookings analysis of 2017 American Community Survey microdata
Share of employment in HoustonSelected occupation groups, 2017
Hispanic workersYoung workersSub-baccalaureate workers
These groups are overrepresented in exposed occupations
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Source: Brookings analysis of EMSI data
Other “safe” occupations are growing
OccupationAutomatio
n potentialHouston employment
CAGR, 2010-18
Personal care aides 24% +12.1%
Financial analysts 11% +7.6%
Software developers, applications 8% +7.6%
Business operations specialists 18% +7.5%
Mobile heavy equipment mechanics 28% +7.4%
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Ensuring the future
works
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Promote a
constant
learning
mindset
Emphasize
inclusion
Reduce
hardships for
those who are
struggling
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Promote a
constant
learning
mindset
• Embrace data to understand
what’s happening
• Expand accelerated learning
and certifications
• Make skill development
more financially accessible
• Align and expand traditional
education
• Cultivate uniquely human
qualities
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Emphasize
inclusion
• Target career on-ramps on
under-represented
populations
• Aim digital, technical, and
skills training at needs of
vulnerable cohorts
• Maximize hiring through
subsidized employment
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Reduce
hardships for
those who are
struggling
• Expand income supports for
workers in low-paying jobs
• Reduce financial volatility
for workers in service
industries
• Increase portability of
benefits
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For more
information:Alan Berube
Senior Fellow
Metropolitan Policy Program at
Brookings
@berubea1
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Panel Discussion
Workforce Development in the 21st Century
Alan BerubeSenior Fellow and Deputy Director
Brookings Institution Metropolitan
Policy
Morag WatsonVice President
BP
Ernesto ChavarinDirector of BPM
Management
Microsoft
Amanda EdwardsHouston City
Council Member
Peter BeardSenior Vice President,
Regional Workforce Development
Greater Houston Partnership
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Thank you!
Workforce Development in the 21st Century
Peter Beard
Senior Vice President,
Regional Workforce Development
Greater Houston Partnership