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Sector career pathways and apprenticeship 2.0 presentation august 2018 motherlode
1. Using Sector Strategies and
Apprenticeship 2.0 to Link
Education and Employment in
the Motherlode
Vinz Koller
Senior Strategist for Capacity Building
2. Our Practice
We help public servants,
philanthropists, and other world-
changers find what works in solving
their communities' toughest
challenges.
We provide rigorous and responsive
evaluation, research, and technical
assistance services rooted in a
commitment to equity and a focus
on learning – so we all grow smarter
by working together.
4. 4
The Degree Gap
Fuller, J., Raman, M., et al. (October 2017). Dismissed By Degrees.
Published by Accenture, Grads of Life, Harvard Business School.
5. 5
Fuller, J.,
Raman, M.,
et al.
(October
2017).
Dismissed
By Degrees.
Published by
Accenture,
Grads of Life,
Harvard
Business
School.
The
Degree
Gap
6. How do we best
gain work
experience and
employability
skills?
6
7. Evidence from CO: Where are key
skills best learned?
From Dr. Katie
Caves, KOF, ETH
Zurich
8.
9. 9
Increasing Interest in Sector Strategies
• Increased employer demand for workers with specialized
occupational skills
• Research suggests that sector strategies:
– Benefit job seekers ( earnings, job quality)
– Benefit employers ( productivity, operating costs)
• Federal support for sector strategies is high
– High-Growth Job Training Initiative,
Community-Based Job Training Grants,
and so on
– WIOA emphasis on sector strategies
11. 11
Sector-Based Strategies at Local
Areas
• Placed general emphasis on target sectors
• Implemented initiatives that included some, but not all,
of the activities at the center of the framework:
1. Provided training in targeted demand sectors
2. Facilitated partnerships, assessed sector need, and
strategized solutions
3. Designed and executed training in partnership with target-
sector employers
4. Operated sector-focused AJCs
12. 12
Provided Training in Demand Sectors
All 28 study local areas provided training
in regional demand sectors
Numberofstudylocalareas
26 26
21 20
14
Manufacturing Health Care and
Social Assistance
Logistics Information
Technology
Construction
Target sectors
STRATEGY #1
13. 13
Central Valley Infrastructure
Employment Project
• Stakeholders:
– Fresno Regional Workforce Board
– Fresno Works Consortium
– California High-Speed Rail Authority
– Regional trade unions
• Goal: Meet projected need for skilled workforce
to build high-speed rail line
• Outcome: Pre-apprenticeship and
journeyman training for 325
dislocated workers
EXAMPLE
14. Six Key Elements Framework
Build Cross-Agency
Partnerships &
Clarify Roles
Identify Sector or
Industry & Engage
Employers
Design Education &
Training Programs
Identify Funding
Needs & Sources
Align Policies &
Programs
Measure System
Change &
Performance
Career
Pathways:
Six Key Elements
15. 15
Building Partnerships
•Workforce Development Board
•Community College(s)
•Adult Basic Education Providers
•TANF Providers
•Community-Based Organizations
Key Agency Partners: Local Level
•State Workforce Agency
•Adult Basic and Postsecondary Education
•Economic Development
•Human Services
Key Agency Partners: State Level
16. 16
Career Pathways Top 4
Engage Employers
Earn and Learn
Use Data Strategically
Measure Outcomes
17. Practice Theory
3-4 days per week of
in-company training
and industry courses
1-2 days per week of
classroom instruction at
Vocational School
Employee
How is it that Apprenticeship has
become the new gold standard?
Student
18. What is the rap on vocational
education and apprenticeship in the
US?
18
20. 2
How can apprenticeships be
profitable?
5.7.20
Program
duration
Marginal product
of participant
Training costs
Marginal product
Training costs
Time
Before
program
After
program
Unskilled
wage
Post-
training
wage
Source: Own depiction based on Lerman (2014)
21. 21
Cost/benefit ratio for Swiss companies
offering apprenticeships in million Sfr
0
1000
2000
3000
4000
5000
6000
5350 5824
474
Net benefit
Productive
output of
apprentices
Gross costs
25. Features of Swiss apprenticeship system
25
Public-private partnership
Integrated into education
system: Permeability
Labour market orientation
28. 28
Occupations New
Apprentices
In 2016
Commercial Employee 14250
Retail Clerk 5077
Health Care Worker 4147
Social Work Practitioner 3170
Electrician 2159
IT Technician 1976
Cook 1750
Draughts Person 1630
Logistician 1618
Mechanical Engineer 1568
Top Ten Apprenticeship Occupations
29. 29
Funding of apprenticeship system
60%
30%
10%
Total costs: approx. $9b/year
Private Sector
State
Federal
Training costs & wages of
apprentices
Vocational
schools
Career
guidance
Supervision
Development
Strategic oversight
31. What would Youth
Apprenticeship at scale
look like in California?
• 800,000 Apprentices (10x)
• Business would invest $18.75
b. and earn back $20.65 b.
• Young people would add $18
b. to the economy.
• Reduce their student debt by
$18 b.
• Youth unemployment rate
would drop to 3%
33. More Information
Vinz Koller
Senior Strategist for
Capacity Building
Social Policy Research
Associates
Vinz_Koller@spra.com
www.spra.com
831-277-4726
Editor's Notes
Trends that we are all familiar with over the last 50-60 years:
The red line shows how the jobs which only require HS Education are in steady decline – they accounted for more than 80% in the 50‘s and now account for fewer than 10%.
The purple line shows a steady increase in needed voc ed.
But the really dramatic increase is in jobs needing tertiary education (this is secondary plus advanced training) and even more dramatic is the need for Experience and for Soft Skills.
The College and the Degree discussions in the US is analogous to the saying that if all you have a hammer, then every problem looks like a nail.
The college is the hammer, and the problem is talent development…
But perhaps the college and degree is not the right threshold…
FIGURE 3: DEGREE GAP: THE DIFFERENCE BETWEEN THE PERCENT OF JOB POSTINGS REQUIRING A COLLEGE DEGREE AND THE PERCENT OF INCUMBENT WORKERS WITH A COLLEGE DEGREE
In the Supervisor of Production Workers occupation, 67% of employers request a college degree in postings, but only 16% of the current workforce has a college degree. This amounts to a 51% degree gap.
Employers require applicants to Supervisors of Office Workers positions to have a bachelor’s degree, even though most supervisors currently employed in the occupation don’t have one.
Grantees formed cross-agency teams (local and state level)
Notes:
ENGAGING EMPLOYERS. Work up-front with employers to determine local hiring needs and design training programs that are responsive to those needs, from which employers will hire.
EARN AND LEARN. Offer work-based learning opportunities with employers – on-the-job training, internships, pre-apprenticeships, and Registered Apprenticeships – as training paths to employment.
SMART CHOICES. Make better use of data to drive accountability, inform what programs are offered and what is taught, and offer user-friendly information for job seekers to choose programs and pathways that work for them.
MEASURING MATTERS. Measure and evaluate employment and earnings outcomes.
Apprentice wage depends on e.g. unions
Cost Timing depends on financing of general education by government
Wage compression affected by e.g. labour market frictions, unions
Cost benefit – Even at a cost of $50K-$150K per apprentice over 3-4 years, the businesses get a full return on their investment
http://www.new-talents.ch/de/
http://www.new-talents.ch/de/
http://www.new-talents.ch/de/
Meet Michael Hübscher, Manager of Huebscher woodwork construction and millwork company in a small town near my home town.
His shop has 65 employees – among them 12 apprentices! Here is Simon, Raoul, Noah and Fabian – who started this year.
They are young, probably 16 or 17.
They all sign simple 2-page contracts (employer/ apprentice/ parent or guardian
or the 2017/2018 Academic Year:
75 Youth Apprentices
48 Employer/Hosts
9 Youth Apprentice Pathways including:
Industrial Mechanics
Machining
HVAC Tech
Computer Programming
Computer Networking
Cyber Security
Hotel Operations
Culinary Arts
Medical Office Assistant
Goals for the 2017/2018 Academic Year:
200 Youth Apprentices
99 Employer/Hosts
15 Apprentice Pathways with the addition of the following new pathways :
Automotive Tech
CAD Tech
Emergency Medical Tech (includes Pre-Fire)
CNA to Pre-Nursing
Security to Pre-Law Enforcement
Accounting
At $656 Billion, the Ohio economy is almost exactly the same size as the Swiss economy and yet has four times fewer apprentices. Imagine what the Ohio economy would look like if its apprenticeship investment were on the Swiss scale.
Instead of the XY apprentices Ohio currently has, it would have more than 180,000. Ohio businesses would invest around $5 billion annually into their training and earn around $5.5 billion on that investment during the training period.
Even when in apprenticeships, young people would add $4.5 billion per year in consumer power to the Ohio economy, while reducing student debt by almost $4 billion per year. The youth unemployment rate would drop to 3%.