The Evolution of American Labor
         Market Policy

    The Historical & Political Context



              Workforce ...
Overview
• DOL Formed in 1913
  – Lack of Labor Market Policy/Plan
  – Controversial (Taft-Hrs Before Wilson)
  – Response...
#1 Industrial Transformation
• Labor Strife and Mediation
  –   US Conciliation Service
  –   Bureau of Labor Statistics
 ...
Industrial Transformation (Cont)
• Depression
  – Davis-Bacon
     • Stabilize Wages in Construction
  – Employment Servic...
Industrial Transformation (Cont)
• WWII
   – Labor Standards
   – Data (Price Stabilization Board)
   – Taft-Hartley
     ...
Period of Industrial Transformation
           Characterized by:
• High Population and Immigration Growth
• High % of Unsk...
#2 Social Policy
• MDTA 1962
  – First Labor Market Policy Frame Work
  – Strong Centralized Federal Program For Training
...
Social Policy (Cont)
• Established Manpower Administration to
  Oversee..
  – Neighborhood Youth Corps
     • 1.5 Mil Poor...
Social Policy (Cont)
• Contracted With ‘Expeditious’ Public and
  Private Agencies (Direct Fed Contracts)
     • Directed ...
#2 Social Policy (Cont)
• EEA 1971
  – First Attempt at Comprehensive E&T Failed
  – Passed EEA in Response to High Unempl...
#2 Social Policy (Cont)
• CETA 1973
  – Rallying Cry for Comprehensive Reform
     • “10,000 Individual Contracts”
     • ...
#2 Social Policy (Cont)
• Manpower Admin..Renamed..ETA
• Major Tension Between Fed Gov and
  NGA, NACO, Conf of Mayors, an...
#2 Social Policy (Cont)
• JTPA 1983
  – Partnership Between Business & Gov At All Levels
     • Strengthened Role of Priva...
Period of Social Policy Characterized By…
•   Initial Transition from Industrial Economy
•   Permanent Dislocation of Indu...
#3 Economic Policy
• Shift To Economic Policy in Early 80’s
   –   Rapid Industrial Transitions
   –   Technology
   –   C...
#3 Economic Policy (Cont)
• WARN
  – Plant Closing Notification (ETA Asked to
    Implement)
• Economic Dislocation Assist...
#3 Economic Policy (Cont)
• WIA 1998
  – Customer Focus
     • Employers and Employees
  – One Stop System
  – Strengthen ...
#3 Economic Policy (Cont)
• K-12 Reform
   – Goals 2000..NCLB
   – Core Curriculum For All, Standards, Outcomes, and Remed...
Period of Economic Policy
              Characterized By…
•   Increased Global Competition
•   Very Slow Population/Workfo...
Future US Labor Markets
• Demographics

     • Slow Population Growth
         – 1% per yr.
            » .8% by 2030

   ...
Smaller Percentage Workforce..
          2000    2020    2040

  Age
  0-19    28.5%   26.4%   25.9%



  20-64   59.0%   ...
US Labor Force More Diverse
•              1980           2020    2050

• White          82%          63%     53%

• Minor...
Changing Face of American Workplace
•   1.3% Job Growth Per Yr
          Exceeds Labor Force Growth of 0.8%

•   By 2016…1...
Workforce Readiness..
         Pop. 305 Mil..      Wkf 154 Mil..


•   No HS Deg/GED            16.0 Million*
•   HS ..No ...
Lessons for Successful Labor Market Policies..
 • America Has Not Had a ‘Comprehensive Job Training Policy’ or
   System
 ...
Lessons…. (Cont)
• Need For Industry Recognized Certifications (IRC)
  – Industrial Associations Develop Formal Certificat...
IRC Examples
• Project Management
   – Project Management Institute
       • 5 Credentials (HS plus)
• Manufacturing
   – ...
History Must Not Be Allowed to
          Repeat Itself…
• Employment Service, Unemployment
  Insurance, Workforce Investme...
THANK YOU
• Roberts T. Jones
  Education and Workforce Policy
  1800 N Beauregard St
  Suite 350
  Alexandria, Virginia
  ...
Upcoming SlideShare
Loading in …5
×

Evolution Of American Labor Market Policy

1,376 views

Published on

Bob Jones's presentation to CSW's inaugural WorkforceCamp in April 2009, in San Diego, CA.

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,376
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
15
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Evolution Of American Labor Market Policy

  1. 1. The Evolution of American Labor Market Policy The Historical & Political Context Workforce Camp Corporation for Skilled Workforce San Diego, Calif April 27, 2009
  2. 2. Overview • DOL Formed in 1913 – Lack of Labor Market Policy/Plan – Controversial (Taft-Hrs Before Wilson) – Response to Labor Wanting “Voice in The Cabinet” • DOL Not Involved/Responsible In: – WWI – Depression Programs – WWII • Three Basic Periods of Labor Dept Evolution: – #1 Industrial Transformation – #2 Social Policy – #3 Economic Policy
  3. 3. #1 Industrial Transformation • Labor Strife and Mediation – US Conciliation Service – Bureau of Labor Statistics – Bureau of Immigration – Bureau of Naturalization – Children's and Women's Bureau • WWI – War Labor Admin • Adjudicating Labor Disputes – 8 Hr Workday – Davis Bacon
  4. 4. Industrial Transformation (Cont) • Depression – Davis-Bacon • Stabilize Wages in Construction – Employment Service Within Bureau of Immigration – Wagner-Peyser • Nation Wide System of Employment Service Offices – Unemployment Insurance – Fair Labor Standards Act
  5. 5. Industrial Transformation (Cont) • WWII – Labor Standards – Data (Price Stabilization Board) – Taft-Hartley • Post World War II Inflation/Strikes • Employment Act of 1946 – First Major Labor Mkt Policy Statement – Only Fiscal Macro Policy • ARA 1961 – Direct Response to Industrial Transformation • Automation and Unemployment – Community Assistance for Economic Development – Unaware of ‘Social Impact of Transition”
  6. 6. Period of Industrial Transformation Characterized by: • High Population and Immigration Growth • High % of Unskilled Jobs & Labor • Universal K-12 Education – Very Little Access to HE Until GI Bill Post WWII • HS Deg or less Ample for Transition from Ag Economy to Industrial Economy • Rate of Change Accelerated – Union Growth – Standard of Living – Growing Labor/Skill Shortages • 60 Years of Adjustment to Industrial World No Focus on Impact of Education or Training As Labor Market Tool….Assumption of Temporary Assistance for Short Term Dislocation
  7. 7. #2 Social Policy • MDTA 1962 – First Labor Market Policy Frame Work – Strong Centralized Federal Program For Training • Identifying Labor Shortages • Training the Unemployed • Sponsoring Manpower Research – Developed To Shift ARA Focus from ‘Communities’ to ‘Individuals’ – Immediately Overtaken by.. • ‘Great Society’ and ‘War on Poverty’
  8. 8. Social Policy (Cont) • Established Manpower Administration to Oversee.. – Neighborhood Youth Corps • 1.5 Mil Poor, Unemployed Youth Work/Complete HS – Special Impact • Services for People in Poor Neighborhoods – New Careers • Training in Health, Education, Public Safety – Work Incentive Program • Able Bodied from Welfare to Jobs
  9. 9. Social Policy (Cont) • Contracted With ‘Expeditious’ Public and Private Agencies (Direct Fed Contracts) • Directed Secretary to Set Standards for Operation, Quality, and Content • Negotiate with Agencies for ‘Training Schedule’ • Major Role for DHEW – Voc Ed Expansion (Unions Vs AVA) • Manpower Report To President
  10. 10. #2 Social Policy (Cont) • EEA 1971 – First Attempt at Comprehensive E&T Failed – Passed EEA in Response to High Unemployment – $$ to State & Local Governments for Public Service Jobs – Established First Attempt at ‘Revenue Sharing’ • Jurisdictional Allocation of Funds • Jurisdictional Management of Programs
  11. 11. #2 Social Policy (Cont) • CETA 1973 – Rallying Cry for Comprehensive Reform • “10,000 Individual Contracts” • “Training for Jobs That Don’t Exist” – Clear Revenue-Sharing • Funds and Decision Making – Established New Concepts of.. • Prime Sponsor Jurisdictions • Allocation Funding Formulas • Hold Harmless Stop/Gain Funding • Private Industry Counsels (Advisory) – Established the First National Frame Work for Training the Disadvantaged • DOL Had no Experience or Structure • Major Task Force for Regulatory Development
  12. 12. #2 Social Policy (Cont) • Manpower Admin..Renamed..ETA • Major Tension Between Fed Gov and NGA, NACO, Conf of Mayors, and NLC • DOL Established Directors Work Group • CETA Reauthorized 1978 – Sharper Targeting on Disadvantaged – New Focus on Private Sector (PSIP) • Targeted Jobs Tax Credit 1978 – Credits for Hireling Disadvantaged • Youth Employment Demonstration Projects
  13. 13. #2 Social Policy (Cont) • JTPA 1983 – Partnership Between Business & Gov At All Levels • Strengthened Role of Private Industry Counsels (PIC’s) – Increased State Role in Lieu of Federal Control • Local Decision Still Paramount – Increased Focus on Training • Repeal of Public Employment Program – Focus on Economically Disadvantaged – Introduced ‘Dislocated Worker’ • Increased Focus on Youth • Wagner-Peyser Amendments – More State Authority on ES Offices and Services • Project Literacy USA (PLUS) – Growing Focus on Lack of Basic Ed Skills for New Jobs
  14. 14. Period of Social Policy Characterized By… • Initial Transition from Industrial Economy • Permanent Dislocation of Industries • Massive Loss of Low Skill/Education Jobs • Growth in Technology • Massive Increases in Rural and Urban Poverty • Social, Racial, Economic Unrest • Adverse Impact on ‘Disadvantaged’ Youth & Minorities • Economically Disadvantaged Defined as… – Income • Race, Environment, Access, etc Population Exceeded Job Availability.. Policy Was…Give Them ‘A Step Up in the Labor Queue’
  15. 15. #3 Economic Policy • Shift To Economic Policy in Early 80’s – Rapid Industrial Transitions – Technology – Changing Demographics – Security Defined by ‘Portability of Individuals’ Rather Than Fixed Government Programs • Workforce 2000 – DOL Takes Leadership in Looking ahead and defining the Impact of Shifting Demographics, Changing Skill Expectations, Shortened Employment Tenure, etc
  16. 16. #3 Economic Policy (Cont) • WARN – Plant Closing Notification (ETA Asked to Implement) • Economic Dislocation Assistance and Worker Adjustment Program • Welfare Reform Demos • Displaced Homemakers • SCANS • Skill Standards Demonstrations
  17. 17. #3 Economic Policy (Cont) • WIA 1998 – Customer Focus • Employers and Employees – One Stop System – Strengthen WIBs..Oversight/Planning Not Delivery – Empowering Individuals (ITA) – Universal Access • STW • Skill Standards Commission
  18. 18. #3 Economic Policy (Cont) • K-12 Reform – Goals 2000..NCLB – Core Curriculum For All, Standards, Outcomes, and Remediation • Post Secondary Education – AA Deg – Industry Recognized Certification • Job Training – GED – Industry Recognized Certification • HE Reform – Accountability for Continuous Improvement – Gen Ed, Curriculum, Standards, Outcomes, Grad Rates All Focused on Alignment for New Labor Mkt – Curriculum – Standards – Continuous Improvement
  19. 19. Period of Economic Policy Characterized By… • Increased Global Competition • Very Slow Population/Workforce Growth • Job Growth Out Paces Population Growth • Increased Education/Skill Expectations • Shortage of Skilled Workforce • Shorter Tenure of Workers • Increased Premium on Education/Skills Economic and Social Security Now Defined As ‘Portable Education and Skill Competencies’
  20. 20. Future US Labor Markets • Demographics • Slow Population Growth – 1% per yr. » .8% by 2030 • Slow Labor Force Growth – .05% yr • Increased Percentage of Older Population • Fewer Younger People Entering Workforce • Core Workforce Age Group is Declining US Economic Growth Will Depend on Fewer Workers….And Increased Productivity!! BLS/Census
  21. 21. Smaller Percentage Workforce.. 2000 2020 2040 Age 0-19 28.5% 26.4% 25.9% 20-64 59.0% 57.2% 53.6% 65+ 12.4% 16.3% 20.4% BLS/Census
  22. 22. US Labor Force More Diverse • 1980 2020 2050 • White 82% 63% 53% • Minority 18% 37% 47% • Hispanic* 6% 17% 24% • *50% of Population Growth in 2007 BLS/DOC
  23. 23. Changing Face of American Workplace • 1.3% Job Growth Per Yr Exceeds Labor Force Growth of 0.8% • By 2016…166.2 Total Jobs 34.0 Mil Replacement Jobs 16.0 Mil New Jobs – 87.0% of New High Growth/High Wage Jobs Require PS Credential – 78.0% of All Job Openings Through 2014 Require Some PS Ed or Trng – 24 of 30 Fastest Growing Occupations Require PS Deg/Cert – 23 of 30 FGO’s are in the 1st & 2nd Earnings Quartile • Fastest Growing & Largest Job Growth – Accountants Operations Management – Health Technology – Education Energy – Engineers Environment • 7 Years From Now...What Will Be Required in 11 Years (2020)?
  24. 24. Workforce Readiness.. Pop. 305 Mil.. Wkf 154 Mil.. • No HS Deg/GED 16.0 Million* • HS ..No Coll 52.2 Million* • HS…Some Coll 35.8 Million* • AA Deg 16.0 Million* * 18+59 Yr Olds (07 Census) • 50 Million 25-40 Yr Olds In the ‘Workforce’ Have No PS Credential (BLS/08)
  25. 25. Lessons for Successful Labor Market Policies.. • America Has Not Had a ‘Comprehensive Job Training Policy’ or System – Evolving Set of Policies Reacting to ‘Perceived’ Changes in The Structure of the Economy – Client Group of the Moment Focus • Black, Hispanic, Dislocated, Unemployed, Poor, Youth, Welfare – Most Policy Debates Focused on Governance and Funding Formulas • As Opposed to Clients and Recognized Labor Mkt Outcomes • Focus on Labor Market Variables – Demographics – Job Growth – Rate of Education/Skill Shifts – Alignment of Industry, Government, Educators, and the Public – Transparency of Access, Programs, Credentials, and Delivery System • Economic and Social Security Increasingly Dependent on Education – K-12 Completion (GED) – Post Secondary • AA Deg • Industry Recognized Certification
  26. 26. Lessons…. (Cont) • Need For Industry Recognized Certifications (IRC) – Industrial Associations Develop Formal Certifications Around Job/Skill Sets on Behalf of Industry Employers – Develop and Communicate Curriculum, Assessments, and Standards of Achievement – IRC’s: • Portable Credentials Recognized By Employers and Educators • Reflect High Growth, High Wage, Demand Occupations • Linked to Related/Higher Level Technical Certifications • Carry Academic Credit Toward AA or BA Degrees – Distinct from ‘Corporate Certs’ & ‘Licensure’ – Cisco Practical Nurse – Adobe Real Estate
  27. 27. IRC Examples • Project Management – Project Management Institute • 5 Credentials (HS plus) • Manufacturing – Manufacturing Career Readiness Certificate – NIMS, MSSC, AWS, etc • Ohio, NC, Texas, Wash • Health – National Health Care Association • Clinical Health Care Prof Certs • Admin Health Care Prof Certs • Technology – COMPTIA • Geospatial • ACT National Career Readiness Certificate – WorkKeys Calibrated by Industry Skill Req
  28. 28. History Must Not Be Allowed to Repeat Itself… • Employment Service, Unemployment Insurance, Workforce Investment Act, Trade Adjustment Assistance, Apprenticeship, Student Loans, etc • All Designed For Earlier Periods of Labor Our Market Experience • Not Designed for the Dynamic Labor Mkts of America’s Future You Are the Workforce Policy Leaders That Will Design and Deliver the New Systems
  29. 29. THANK YOU • Roberts T. Jones Education and Workforce Policy 1800 N Beauregard St Suite 350 Alexandria, Virginia Tel: 703 416 0723 bob.jones@mtctrains.com www.educationworkforcepolicy.com “THE JOBS REVOLUTION: Changing How America Works” www.jobsrevolution.com

×