Plugging Disconnected Youth into Work Experience

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1 Plugging Disconnected Youth into Work Experience Presented by: Martie Telepo February 26, 2013

2 The rapid pace of change is unprecedented in human history. 2

3 At ManpowerGroup we are in a unique position to assess the impact of these changes. ManpowerGroup TM is the world leader in innovative workforce solutions. We leverage our global reach and local expertise of tens of thousands of people across more than 80 countries, making it possible for businesses to access the talent they need when they need it. ManpowerGroup TM Solutions provides clients with human resources outsourcing services primarily in the areas of large-scale recruiting and outcome-based workforce-intensive initiatives, thereby sharing in the risk and reward with our clients. Manpower is the global leader in contingent and permanent recruitment workforce solutions. We provide the personal flexibility and agility businesses need with a continuum of staffing solutions. Experis TM is the global leader in professional resourcing and project-based workforce solutions. With operations in more than 50 countries, we deliver 53 million hours of professional talent specializing in IT, Finance and Engineering to accelerate clients businesses each year. Right Management is the global leader in talent and career management workforce solutions. Through our innovative and proprietary process, we leverage our expertise to successfully increase productivity and optimize business performance. 3

4 Q: Does the company have a mission beyond making a profit for its stockholders? A: I certainly believe that Manpower has a mission in life. Elmer L. Winter, Co-founder and Past President in a Wintergram to all Manpower employees in

5 5 Why Manpower? Shared Vision MANPOWER CULTURE We care about people and the role of work in their lives. We value knowledge and seek to adopt best practices worldwide. We love innovation. We dare to innovate, pioneer and evolve. LOCAL CULTURE Youth Prepared for the World of Work. Create Mentoring Opportunities for local companies. Provide a workforce ready able to be a community contributor. 5

6 Community Involvement National Manpower partners nationally with Junior Achievement World s largest organization dedicated to educating students about workforce readiness, entrepreneurship and financial literacy through experiential, hands-on programs Jonas Prising, President of the Americas, is on JA s national Board of Directors Manpower sponsors the JA Success Skills program In 2012 we partnered on 37 programs serving youth and adults Local Waldorf MD Youth Program 2012 & 2013 Lower Shore Workforce Alliance Launch Christopher Maas - JA Local Board of Directors 6

7 The world has entered a new reality Eras defined by the raw materials people bent to their will: Stone Age Bronze Age Iron age Eras defined by the domains that people conquered with everincreasing technology: Industrial Age Space Age Information age Era defined by the ingenuity of individuals and of the community: Human Age 7

8 Shifts to the Human Age YESTERDAY Industrial/information ages Capitalism Workers chasing companies Companies dictate terms Workers living near work Unemployment over-supply Technology the enslaver Closed borders Job for life Size matters Command and control TODAY & TOMORROW The Human Age Talentism Companies chasing workers Employees dictate terms Workers living anywhere Unemployment specific demand Technology the liberator Open borders 10 to 14 jobs by age 38 Agility matters Flexible frameworks 8

9 Approximately one in two employers (49%) continue to experience difficulties filling vacancies due to lack of available talent in the U.S.

10 Percentage of employers having difficulty Global U.S. 60% 50% 40% 44% 41% 52% 49% 30% 20% 22% 19% 10% 0% 14% 40% 41% 31% 30% 31% 34% 34%

11 Top 10 Hardest Jobs to Fill in the U.S. 1. Skilled Trades 6. Drivers 2. Engineers 7. Mechanics 3. IT Staff 8. Nurses 4. Sales Representatives 9. Machinists/Machine Operators 5. Accounting & Finance 10. Teachers 11

12 Skills Employers Want Jobs Employers Have Communication skills Strong work ethic Teamwork skills Initiative Analytical skills Computer skills Flexibility/adaptability Interpersonal skills Problem-solving skills Technical skills Engineers Nurses Skilled/Manual Tradesmen Teachers Sales Representatives Technicians Drivers IT Staff Laborers Machinist/Machine Operators Source: NACE Research: Job Outlook 2009 Manpower s 2009 Hardest Jobs to Fill Survey 12

13 Top 10 Fastest Growing Jobs by Education Level High School Diploma or GED Bachelor s Degree Master s or Doctoral Degree Post-Secondary Training/Associate Degree Home health aide Biomedical engineer Medical scientist Skin care specialist Home care aide Physical therapist aide Dental assistant Medical assistant Self-enrichment teacher Compliance officer Occupational therapist aide Pharmacy technician Medical secretary Network systems and data communications analyst Financial examiner Athletic trainer Computer applications software engineer Environmental engineer Computer systems software engineer Survey researcher Personal finance advisor Market research analyst Physician assistant Biochemist and biophysicist Veterinarian Physical therapist Anthropologist and archaeologist Environmental scientist and specialist Prosthodontist Industrialorganizational psychologist Geographer Dental hygienist Veterinary technologist and technician Physical therapist assistant Environmental engineering technician Occupational therapist assistant Fitness trainer and aerobics instructor Environmental science and protection tech HVAC mechanic and installer Paralegal/legal assist. 13

14 Why are employers having difficulty? Lack of available applicants/no applicants. Looking for more pay than is offered. Lack of experience. Lack of "hard" job skills or technical competencies. Workplace competencies (soft skills). Lack of industry-specific qualifications. Lack of applicants willing to work on a part-time basis. 14

15 What strategies are employers pursuing? Focusing more on staff retention. Hiring people who don t have the job skills currently, but have potential to learn and grow. Providing training and development to existing staff. Broadening the search outside of local region. Increasing the focus on improving the business pipeline. Increasing starting salaries. Partnering with educational institutions. Participating in Youth Programs 15

16 What about our youth?

17 Disconnected Youth Young people out of school and out of work have been characterized in various ways as disconnected, vulnerable or opportunity youth.

18 A Startling Reality Disconnected/Opportunity Youth In 2011 there were 6.7M disconnected or opportunity youth In 2011, they cost the taxpayers $93B, over their lifetimes, they will cost $1.6T Youth Unemployment 75.8 million unemployed globally in 2012 US rate for % US rate for % 30% of businesses provided summer jobs 86% of business said they had NEVER BEEN ASKED to provide a summer job. 18

19 Employed Youth and Young Adults: 2011 The U.S. youth employment rates for both 16- to 19-year-olds and 20- to 24-year-olds have dropped to lows not seen in more than 50 years. State-by-state employment rates vary significantly, ranging from 18 percent to 46 percent for teens and from 51 percent to 75 percent for young adults. Sources Population Reference Bureau's analyses of 2011 Current Population Survey basic monthly data, U.S. Census Bureau data and Bureau of Labor Statistics data. Estimates represent 12-month averages.

20 Why? A lack of information, networks and connections among youth, especially youth from families lacking significant social capital A lack of skills relevant to the workplace A lack of experience and credentials that build employer confidence in potential young hires A lack of available jobs suited to entry level jobs 20

21 Action Plan ASK BUSINESSES TO PROVIDE SUMMER JOBS Ask businesses to participate in career guidance programs for youth still in school Support information projects that provide career and labor market information for young job seekers Promote a more positive image of vocational education Create and engage with programs that build young people s work experience Engage with dual training and work experience programs Invest in entrepreneurship education in schools 21

22 To Be Successful Need Companies Willing to: Employ Out of School Youth Mentor Out of School Youth Invest in the Workforce of Tomorrow Improve Your Own Company Environment / Morale 22

23 Lasting Consequences for the Youth Endure later unemployment Less likely to achieve higher career attainment Lower Confidence and Stability Lost Opportunity for Economic Development Economic burden on taxpayers Lifestyle Deficits cognitive, health, nutrition and psychological issues Criminal Behavior Scholars say that young people who have difficulty integrating into the world of work suffer lifelong psychological scarring that diminishes their resiliency and ability to thrive in a dynamic and demanding workplace. 23

24 By 2020 there will be 123 million high-skill, high-pay jobs available in the U.S., but only 50 million Americans with the right education to fill them. Economist Intelligence Unit 24

25 Today s YOUTH are tomorrow s EMPLOYEES let s get them ready for the job! Thank you! Martie Telepo Government Solutions Executive Northeast Division martie.telepo@manpower.com