As you know, the current job growth situation in the US is as dire as it’s been in three generations. McKinsey Global Institute report on job Creation…The red line expresses the “fierce urgency of now” that we face.It also shows how long and steep the road “out of the ditch” is likely to be.So we’re going to need a lot of collective horsepower to pull out of it.
Even before the “great recession,” the increase in Total Employment in the 1990s was only ¾ the speed it had been in the three previous decades. And in the 2000s, it was slowed to half of that, or 7% from 2000 to 2007. If you include 2008, 09 and 10, the decade looks even worse – much worse – at 2% growth in total employment What’s surprising is that we didn’t have an unemployment crisis even BEFORE great recession. One reason is that 2.5 million workers dropped out of labor force participation in the past decade. That was partly from an aging population and partly from younger people staying in school longer.But it also includes the slow decline in participation by prime working age men.SEE PAGE 19*** So, even before this recession, we were starting to ask what I think has become THE question of this economic period ….How do WE (training institutions, foundations, and employers TOGETHER) accelerate JOB CREATION?HOW DO WE BUILD PARTNERSHIPS THT ADDRESS BOTH JOB GROWTH & JOB OPPORTUNITY FOR LOW INCOME PEOPLE? I’D LIKE TO TALK ABOUT THAT IN 3 PIECES OF MY AGENDA
So, two more slides on why WE should consider Job Creation part of our job. This one really links the job growth problem to our work -- how is it impacting the folks WE target, and OUR ability to help low income workers advance through careers.SO, Here’s how job losses stack up, Slicing it by 13 Industry Occupation Sectors up and down the vertical axis on the left 7 levels of training and education across the top (OJT on the left, (READ ALL) … and graduate degrees on the right).Those bright red boxes at the upper LEFT corner represent (occupation groupings) that lost half a million/500K jobs or more from 2007-2009 in each level of training and experience. The burgundy boxes next to those, represent occupational and industry groupings that lost between 100K and 500K jobs.All the biggest losses were in jobs that required less than a vocational award. And worst were for the four industries – Manufacturing, Administrative, Retail and Construction Industry occupationsOnly Educational services, Government, and Health care had some growth for low-skill occupations during the period, as indicated at the bottom of this chart, and stretching across all the skill levels.Yet most industries had at least a little growth for occupations requiring a Bachelors degree and some growth or neutral movement for Associates and Bachelors degreed workers.So this job creation AND DESTRUCTION problem is even more OUR problem IF our mission is low income workersTHAT’S WHY WERE turning the attention to BOTH – Job Creation strategies as well as job training and access strategies.
I Say BOTH because THE REVERSE IS ALSO IMPORTANT. Job creation efforts need us, and we need to ensure that our business and economic development partners know that.We need to reach out to economic development partners and employers with the message and language that speaks to them -- that competitive advantage and job growth are slowed when there is not equity and opportunity. Inequality drags on growth. So, not only do we need job growth, but job growth needs us…Slide: UpJohn Institute Study2006 Upjohn Institute and Federal Reserve Bank of Cleveland looked at 40 factors that could be correlated with growth(measured by four factors - employment, income pre capita, productivity & output) across 118 USmid-market regions. The top four factors were related to what we do:Skilled workforce was number one. Especially in correlation to Income, Productivity, and Economic Output. (Next were business dynamics, legacy of place costs, location amenities, urban/metro structure.) Interestingly, LEGEACY OF PLACE was most correlated to employment levels, something we may want to make our business to understand, especially as we promote the Green Economy.These are factors that many of us aim to address for their own sake. But there’s reason to expect that growth will be slowed down in the long run. That’s because talent is rising as a critical factor to businesses, and your region can’t compete at its highest level if large chunks of your population are struggling with high unemployment and low skills. Not only do you waste creative ability but you also carry heavy social costs in terms of safety nets, criminal justice systems and security. Despite this link, we’ve tended to keep each other at arms length (for many reasons: our funding and performance measures are separate, ….)
JFF RESEARCH on GROWTH & OPPORTUNITYSo, JFF with funding from DOL and Mott Foundation beganlooking for how those two kinds of initiatives (economic opportunity and economic growth) are actually being implemented in concert. Looked at many regions who are learning to do that, to try to pull out some of the lessons of what works and what’s getting in the way. Charlotte, Denver, Milwaukee, San Diego were case studies, But we also worked with regions in AZ, MN, TX, WA to link the two. Most of those were regions that were “Runners Up” for the Federal WIRED Grants in round 2, and became WIRED regions in round 3. Then the downturn hit, and we realized we needed to speed up our learning.Pulled together 3 roundtables of Regional GROWTH Leaders – Economic Development folks who want to also address poverty, or see workforce development and education as key Generated some Lessons about what works. There’s a lot to be learned. No one place doing everything, but we can say that a few lessons hold true across many regions, particularly for the questions of “How do you organize?” and “”Where does the leadership come from?”Before we go to those lessons, let me give you an example to ground what were talking about
FIRST OF ALL, WE HAVE NOT COME ACROSS ANY REGIONALGROWTH & OPPORTUNITY HEAVEN that’s doing everything that’s out there to do.There is not silver bullet, but there is silver buckshot And Bangor Maine provides one good snapshot, of the buckshotBangor MSA 150,000, Region 350K people Faces many problems you face: High unemployment, declining traditional industries, low state and municipal budgetsBut they TOOK ADVANTAGE OF A COUPLE OF SMALL SPARKS and one approach to what I’m talking about around unifying economic, community and workforce development strategies.One of those small sparks was an initiative by a company called Fairpoint Communications When they took over service for Verizon in Northeast States of Maine, Vermont, New Hampshire.They invested a modest amount in regional planning process for 6 regions within Maine(See sllde)In Maine, this led to an initiative they called “Mobilize Maine”They did an economic and labor market data analysis and identified six economic regionsThen gave Seed $ for regional Asset Mapping & Planning to those regionsGot a team froma company called ViTAL Economies, to helpinterview leaders about the assets of the region, and toexplain the project philosophy and approach – and start MOBILIZINGThat approach was to build a ground-up network of private businesses, non-profits and community “citizen volunteers” that could identify all the regions ASSETS with the aim of sustaining a strategy through changes in governments and administrationsIn fact, the Government endorsed but did not fund it, which enhance credibility among business peopleIt generated a lot of curiosity, although as a local person said, the private sector forced education institutions to come to the table. In a meeting hosted for the education sectors, one Provost said, “we know each other and talk to each other often, but this is the first time we talked about how we impact the economy of the region.”So here’s what that process led to….
In their interviews and mobilization They identified five main SILOS of major funding and strategy that contribute to the health of the Maine economy.Of course they found very little connection between the activities and resources, except that they sit on the territory of the same state.
So the “Mobilize Maine” initiative Started building a network and shared understanding Using labor market information and the asset data gathered from players in these 5 silosWhich created a foundation for their goal …
Which was a SHARED ECONOMIC STRATEGYThis process is a good model because it dealt with the REALITY we found that these silos are not likely to melt into one happy pot of merged funding and organizations. THOUGH SOME IN MAINE ARE TRYING! And it does happen, but takes unusual circumstances.So, it needed to be an over-arching strategy that puts the separate silos to work, More like making “PILLARS for Silos”For Eastern Maine, THE STRATEGY TARGETS 4 INDUSTRY CLUSTERS Tourism, Forest products, Alternative Energy Products (wind turbines), COMPOSITES.T This industry mix, BTW, cuts across all skill levels Then with that strategy in hand, the organizations, or pillars, underneath the strategy work together where they make sense to work together, and separately in other arenas.For instance – the TRI-County Workforce Board has moved into the EMDC And is working on ALIGNING THEIR WIA PLAN W/ THEIR CEDS PLAN The CHALLENGE is collaboration that satisfies the federal agencies but they are working through that alignment of WIA and CEDS with DOL and the EDAHere’s what the networked plan looks like overall ….
This matrix was created to Track impacts and develop accountability to the group for all of the priority activities that they identified in their Mobilize Maine planningBut it also gives a picture of the dynamics behind a networked group of institutions aimed toward common goals.The business community suggested this matrix to organize and encourage accountability each meeting every member was to report on their target goals and progress for the period.Essentially it’s the framework for their NETEWORK of institutions acting collectively but independentlySo … Maine is one example. But we were interested, as I’m sure you are, in “What principles transfer across regions?” HOW DO REGIONS GO ABOUT ORGANIZING PARTNERSHIPS THAT ADVANCE GROWTH AND OPPORTUNITY?We had a number of answers to that question, but I’ll focus on three:
A rich example of this kind of networks comes from Denver, Co.,Which got its start a good while ahead of other places – mainly because of the serious job loss problems it faced earlier and more deeply.Because Denver’s economy was highly concentrated in just a few volatile industries – especially Energy, and then IT – it experienced “great recessions” several times, especially during the oil and IT bubbles in the 1980s and 90s These crises drove regional leaders to collaborate just for economic survival (BTW, that’s usually what gets people out of their boxes and into collaborations – big crises or big $)As far back as 1987, the Denver Chamber of Commerce decided to respond to the recurring booms and busts with what became the “Metro Denver NETWORK”Like Eastern Maine, it developed a process of regional advocacy that helped MOBILIZE political leaders AND the general public around regional initiatives and EVEN a regional identity, using what amounted to a political and media campaign – In fact, they had to put some of their initiatives from that group to a public voteIn essence, that started to build the network whose stated 4-year goal at that time was to create 200,000 new jobs in the regionSome of the major descendants of those efforts surround this skyline of the region: The direct descendant of the Network now called the Metro Denver EDC which is now the main coordinator for economic growth, but also housed WIRED initiative, which aligned important innovation in workforce and talent development around the EDC’s econ development goals and linked them more closely to the City, by using staff on loan from the city to lead that initiativeOther elements of the network include the: “Saturday Morning Group” of Mayor FredericoPen~a, who gathered the region’s ten mayors to discuss shared problems. Succeeded by a more formal” Metro Mayors Caucus” whose written “Code of Ethics” for networked collaboration is vigorously enforced by the business community Scientific and Cultural Facilities District,” which links 7 counties that pool 1% of their sales taxes for facilities that enhance the region, attract talent and create jobs many of these regional networks were supported or initiated by “Civic Results,” that …. assists governments, businesses and non-profits to collaboratively plan and implement measurable change in the region.This brings up an important point … which is that intentional efforts to nurture these networks make a huge difference in building the “network capacity” of the region. Denver has this Civic Results, Central Wisconsin shared its Adaptive Leadership training, and Charlotte has something called the Lee Institute, which I’ll describe three slides from now
SO, WHAT ARE IMPLICATIONS OF THESE IDEAS FOR NFWS OR SIF SITESYOU ARE THE BEST PEOPLE TO ANSWER THAT QUESTION, But, I’ve started a short list 1. We need job growth resources & vice versa Foundations and workforce organizations have critical roles and skills that are sometimes overlookedAnd our issues – economic opportunity, equality, inclusion, skills -- have an impact on job growthAnd we also have one of the biggest stakes in the game, if we really want our participants to gain good jobs2. Bigger impact requiresa broader understanding and field of playComprehensive economic information needs to drive our strategies And we need to leverage all the resources we can find in our regions3. Networks need nurturingDon’t assume a cookie cutter approach for leadership – find “glue” people with trust and clout earned We also need to provide new skills, and sustainable resources for “glue people” to do this patient work4. Private sector still needs to lead Because they have the jobs, the most freedom of action, the deep market information and the cloutWorkforce likely needs to be nested within a regional growth strategy5. Our role is to strategically keep opportunity and access on the larger agenda For the good of job growth and the good of our customers TO make it everybody’s jobWith that, I’ll pass it to Scott, and look forward to your thoughts in the dialogue afterward
Regional growth for nfws sif 062711
EVERYBODY’S JOB:Partnerships for Job Growth & Opportunity<br />National Fund for Workforce Solutions & Social Innovation Fund<br />Annual Meeting<br />June 22, 2011<br />Robert Holm, Jobs for the Future<br />
#1: Why Growth AND Opportunity?Factors that Correlate with Economic Growth:<br />
Our Homework …<br />Jobs for the Future, Council on Competitiveness, FutureWorks<br />TA in Regions: AZ, MN, TX (2), WA<br />Case studies: Charlotte, Denver, Milwaukee, San Diego<br />Roundtables: <br /> Chambers of Commerce, Economic Development, Foundations, WIBs, Colleges, <br />LEOs, COGs, Community Developers<br />Research, WIRED, RIGs, State efforts<br />
#2 WHAT are examples?<br />“MOBILIZE MAINE”<br />SPARK: Seed $ for regional collaboration<br />Mapping ASSETS: financial, environmental, human <br />Team to interview and MOBILIZE leaders<br />A ground-up NETWORK of businesses & “citizen volunteers”<br />Government endorsed but not funded<br />
To attract talent & investors</li></ul>Skill Build Colorado<br /><ul><li> Continuation of EDC link
Now Statewide</li></ul>Denver Metro Chamber of Commerce<br /><ul><li> 70 local governments, EDOs
Business</li></ul> Attraction<br />FasTracks<br /><ul><li> Regional </li></ul>high speed rail<br />Denver Regional COG<br /><ul><li>Transit, Housing</li></ul>Civic Results<br /><ul><li> Respected advocate for regional cooperation</li></li></ul><li>#3: HOW are regional partners organizing?<br />B. Using DATA to meet complexity & organize accountability<br />Common understanding about what’s happening<br />Common plan <br />Freedom of initiative<br />Tracking impacts and accountability to group <br />15<br />
#3: HOW are partners organizing?<br />Growing Network Administrators or “Glue People” <br /> … and sustaining their efforts<br />16<br />
Challenges<br />Compliance with silo-ed funding sources<br />Lack of history, language and trust<br />Balancing growth and access<br />Implementing in a networked world<br />Galvanizing specific action while sustaining regional vision<br />
Implications for NFWS and SIFs<br />We need job growth resources & they need us <br />Partnerships for growth = bigger impact opportunity<br />Networks, and Glue People need nurturing<br />The private sector still needs to lead<br />Our roles:<br />Expand the regional analysis<br />Tune education and training with growth strategies<br />Keep access on the larger regional agenda<br />
FOR MORE ON THIS WORK, SEE: <br />1. Building Regional Partnerships for Economic Growth & Opportunity <br />http://www.jff.org/publications/workforce/building-regional-partnerships-economic-/1041<br />JFF Regional Growth & Opportunity Initiative (See brochure)<br />http://www.jff.org/projects/current/workforce/regional-growth-and-opportunity-initiati/1021<br />OR CONTACT:<br />ROBERT HOLM, Jobs for the Future<br />TEL +1-202.540.5300 X409 <br />CELL: +1-617-470-3948<br />firstname.lastname@example.org<br />www.jff.org<br />