Note to reader: The format of this document follows a required state-issued outline and in this form,

Transcription

1 Capital Region Workforce Area Local Plan Contents Note to reader: The format of this document follows a required state-issued outline and in this form, serves as a funding compliance document. Certain elements will be pulled out for use in a Strategic Plan that will guide policy decisions and resource investments by the Capital Region s Consortium of Elected Officials and its Workforce Development Board. Section 1. a. Workforce Demand Analysis b. Workforce Supply Analysis These required plan elements have been addressed through the report at Appendix I, entitled Capital Region Workforce Development Area Workforce Analysis, dated January 20, 2017 and prepared by Chmura Economics and Analytics. c. SWOT Analysis STRENGTHS Qualified staff Funding Proximity to colleges Business partnerships with schools Career coaching skills Good partners Good infrastructure Talented providers WEAKNESSES Lack of a trained and ready workforce Workflow Lack of awareness of programs Bureaucracy No Centers in outer areas Communication Data Post-exit follow-up 1

2 Capital Region Workforce Area Local Plan Contents High labor demand Economic development partnerships Board combination of new and experienced Board is active and diverse Staff and Board right people in place Addressing people with barriers such as homeless Communicate with business regarding barriers Marketing Career paths and connections Access to the resource centers OPPORTUNITIES Public relations Networking Partnering between schools, workforce, and business Candidate pools with trained and qualified job seekers Working with libraries Working with YMCA New regulations and legislation Technology upgrades Video streaming Business friendly environment New local elected leadership Leadership in schools THREATS Lack of living wages Lack of public transportation Homelessness New administration (Federal) Service duplication New legislation Dilution of workforce among multiple departments and organizations Contractor 3-year system High number of residents with criminal records State versus regional economic development Affordable Care Act changes Talent pool 2

3 Capital Region Workforce Area Local Plan Contents Background checks on clients d. Vision & Goals Provide a description of the Local WDB s strategic vision to support regional economic growth and economic self-sufficiency, including: We envision a coordinated system where business, education, workforce, and government work seamlessly to meet the skill needs of employers and to provide workers with opportunities to earn a living wage and improve their quality of life. i. goals for preparing an educated and skilled workforce (including youth and individuals with barriers to employment) ii. goals relating to the performance accountability measures based on performance indicators described in (a)(1) 1. Advance a workforce system that is relevant to and responsive of business customer needs. 2. Create a sector partnership and career pathway model to grow the talent pipeline for new and emerging in-demand industries and occupations. 3. Embrace a customer-centric methodology that serves diverse populations with improved processes and procedures including the use of technology. 3

4 Capital Region Workforce Area Local Plan Contents Demonstrate evidence-based return on investment through a real time performance management dashboard that tracks outcomes relevant to services and initiatives. e. Strategy & Partnerships Provide a description, taking into account the analyses described above, of a strategy to work with the entities that carry out the core programs and required partners to align resources available to the local area, to achieve the strategic vision and goals described above. Jobseekers, youth, and workers may access the workforce system at one of the region s workforce centers, or a partner agency. A no-wrong door approach agreed upon by the partner agencies will provide common steps regardless of the access point. The partners will establish an initial screening tool that is comprised of some basic questions that provide an indication of whether the individual may be a potential candidate for another Core Program Partner. If the initial screening identifies a potential partner referral may be helpful, the referral process negotiated by each partner agency is triggered. Everyone entering each of the access points will then be provided a computer to register in the Virginia Workforce Connection. A partner convening group will create a system orientation that will be technology-based and individuals will watch the PowerPoint. The system orientation will provide information on the diverse array of options that may be available. Next, basic career services may be provided at the location first accessed or if at a partner agency, an individual may be referred to workforce center to utilize the resource room if the 4

5 Capital Region Workforce Area Local Plan Contents entry point doesn t have such resources. Next, program screening will be conducted by the respective partner including assessments, and the individual is given the unique program orientation for the services he or she will be enrolled in. Funding streams provide appropriate program services. Partners will meet monthly to review enrollment information and discuss co-enrollment possibilities and procedures. During these meetings, if co-enrollments are in place, exit information will be coordinated. For Title I Adult, Dislocated Worker, and Youth the Individualized Career Services will include an Individual Employment Plan or Individual Service Strategy. Case management begins at enrollment onto a partner program. The partners will promote coenrollments when it is advantageous for service options to the client and to leverage resources. Case management will be done by the primary partner, or in other words, the partner that enrolled the individual onto a program first. Subsequent co-enrollments will do secondary casemanagement and work with the primary case manager during the partner meetings to coordinate efforts. If a client leaves a partner program and is still co-enrolled in another, the partners may choose to transfer the primary case management to the active program. f. Additional Strategic Elements i. a regional vision for workforce development To transform the workforce development system and advance the economic wellbeing of Virginia's capitol region. 5

6 Capital Region Workforce Area Local Plan Contents ii. protocols for planning workforce strategies that anticipate industry needs Primarily accomplished through our Business Solutions Team and the coordinator who is on staff to the Workforce Development Board. The coordinator, on behalf of the team, attends or convenes industry-based sessions, events, roundtable discussions, in addition to regular contacts with local and regional economic development offices and Chambers of Commerce who each have existing protocols to determine industry and employer needs. This approach has an added value of not having to replicate efforts and recreate such venues that also exist. iii. the needs of incumbent and underemployed workers in the region Local policies allow for incumbent worker training, which is promoted through our Business Solutions Team and supported by board policy. Additional benefits are offered to small employers (fewer than 50), by offering up to 75% reimbursement of training costs. The local area has also afforded flexibility through our Priority of Service policy to allow for services to those in the region that are underemployed, or working but still below the median income for the region. Provided that a majority (51%) of adult funds are used for service to low-income and basic skills deficient, the balance can be used to serve those that while above poverty, could still benefit from addition educational and employment services to increase their earning potential. iv. the development of partners and guidelines for various forms of on-the-job training, such as registered apprenticeships 6

7 Capital Region Workforce Area Local Plan Contents The Board s organized labor and apprenticeship representatives, through the Strategy and Outcomes Committee, are leading efforts to develop a pilot program in partnership with Board staff and Department of Labor and Industry staff to map out the service routes for both apprenticeship and WIOA Title I services so that areas of intersection can be identified. This will enable true partnership by creating working knowledge of both programs and identify a service strategy o be developed for co-enrollments and leveraging of resources. Use of traditional on-the-job training has already been identified as a priority effort in the region and business service staff are aggressive in identifying employer relationship to expand efforts. v. the setting of standards and metrics for operational delivery This falls under the mission of the Board s Strategy and Outcome Committee. The committee seeks to identify measurements of local importance that provide for more proactive forms of data to make informed policy and resource investment decisions. In some cases, these metrics are also more real time than the federal measures. Such current metrics include: Percentage of work experiences that result in permanent employment Number and percentage of OJTs at $15 an hour or greater Businesses served and repeat business customers Number and percentage of job placement directly related to training received 7

8 Capital Region Workforce Area Local Plan Contents Percentage of Rapid Response session attendees that result in Dislocated Worker enrollments vi. alignment of monetary and other resources, including private funds and in-kind contributions, to support the workforce development system and (vii). the generation of new sources of funding to support workforce development in the region The Capital Region has long enjoyed non-federal contributions from its eight member jurisdictions to supplement employment and training related activities in the region. The County of Henrico additionally provides numerous in-kind supports such as human resources, IT, fiscal and procurement support, legal support and real estate services, general services, and building use at no cost which allows additional resources to be allocated to direct services. During the plan life, the Board will also seek to explore establishment of private sector partnership such as community non-profits that could receive private funds to support collaborative workforcerelated efforts. 2. Local Workforce Development System Elements a. Programs/Partners Overview Provide a description of the workforce development system in the local area that identifies: i. the programs that are included in the system All WIOA mandated partners either currently participate in the system, or are 8

9 Capital Region Workforce Area Local Plan Contents committed to participate in the system during the plan life. This includes VEC, Adult Education, DARS, community colleges, rapid response, TANF, SNAPET and VIEW, Title V Older Workers/AARP. In addition, our local system includes Henrico County Community Corrections, Department of Veterans Services, and the City of Richmond Center for Workforce Innovation. Our local and regional economic development offices also partner extensively through the Business Solutions Team. ii. how the Local WDB will support the strategy identified in the State Plan under Under the umbrella of the Board s Operations Committee and through the establishment of a partner s network that will meet monthly, a matrix with each of the state s seven strategies will be developed along with an annual action plan to identify activities projects or processes that will be developed to advance or support state strategies. This action plan will identify who will participate, roles, responsibilities, timelines and expected deliverables/outcomes. iii. how the Local WDB will work with the entities carrying out core programs and other workforce development programs, including programs of study authorized under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C et seq.) to support service alignment The core partners have are already co-located or have agreed to co-locate/establish a physical presence in at least one workforce center prior to July 1, This is the most effective manner to effectively supporting service alignments. Adult Education and WIOA Title I are establishing procedures for joint use of assessment tools to meet both programs enrollment and assessment requirements. Additionally, workforce partners have agreed to the below model for the design of service delivery throughout the workforce system regardless of a customer s point of entry: 9

10 Capital Region Workforce Area Local Plan Contents Center Access Partner Access Welcome Exit Initial Screenin g & Referral Form Followup Followup Training Services Register in Workforc e Database Exit Individualized Career Services System Orientation Program Services Program Orientatio n Basic Career Services Program Orientatio n Program Screenin g Program Screenin g Partner Meetings Co-enrollments Coordinate Exits Through monthly partner meetings, the details and necessary processes will be developed to implement this customer service model and any modifications determined to be needed. Partners have also agreed to redesign the current referral form to make it more effective and user-friendly. iv. how the Local WDB will collaborate with the community colleges SEE SECTION k. BELOW v. how the Local WDB coordinates and interacts with Chief Local Elected Officials (CLEO) The Board Chair attends the CLEO meetings to provide direct, visible and actionable connection between the two governing bodies. Additional connection is provided by two of the Board members also serving as CLEO alternates. The local Finance Committee includes both Board and CLEO members. This has been found a most effective means of coordination as budget and finance issues tend to be the biggest joint concerns, and also areas where mutual knowledge and information is most crucial. 10

11 Capital Region Workforce Area Local Plan Contents Finally, the CLEOs and Board share staff, who serve as the conduit between the two bodies. Board actions are shared with the CLEO and CLEO actions are shared with the Board at their respective meetings. vi. how the Local WDB meets its responsibilities for oversight, monitoring, and corrective action for WIOA Title programs Local oversight is conducted in a variety of ways. At the highest level, the Board s Strategy and Outcomes Committee is charged with reviewing contractor s work and performance at their meetings which are held every other month. Board staff conducts regular contractor meetings to review performance progress and other contractor indicators, as well as any customer complaints or concerns. Program and fiscal monitoring is conducted by staff or third-party contractors at least on an annual basis. We are also included in annual audits conducted by KPMG as part of Henrico County government and are included in Henrico County s Internal Audit Office reviews as well. vii. how the Local WDB conducts business in accordance with the Sunshine Provisions of WIOA staffing plans for the Local WDB All Board, Board Committee and CLEO meetings are open to the public. Each meeting is posted to the local area website, and include the meeting date, time and location. Meeting agendas and materials are made available in advance of meetings. Protocols of each meeting follow Virginia Freedom of Information Act 11

12 Capital Region Workforce Area Local Plan Contents requirements, as do requests for any work materials, documents or communications. b. Collaborative Strategies Provide a description of how the Local WDB will work with entities carrying out core programs to: i. expand access to employment, training, education, and supportive services for eligible individuals, particularly eligible individuals with barriers to employment Partnering with Adult Education in a collaborative assessment environment, will allow for streamlined identification of basic skills deficient individuals. Likewise, enhanced involvement of local Departments of Social Services will better connect low income individuals to the workforce system (itinerant presence in one-stops and improved referral). The new VEC co-location will enhance access to those about to exhaust unemployment benefits as well as other long-term unemployed populations. ii. facilitate the development of career pathways and co-enrollment, as appropriate, in core programs Industry sector partnerships will be the primary means to identifying and mapping key career pathways in the region and among the workforce partners. The Workforce Board s target industries (health care, logistics, manufacturing and professional/scientific/technical will serve as the organizing framework. A pilot has already been started in the healthcare sector by working with regional employers such 12

13 Capital Region Workforce Area Local Plan Contents as VCU Health Care and HCA. WIOA Title I, the community college and other community-based organizations have been meeting to map a model that will start jobseekers on a path starting from a basic health certificate as the foundation to higher levels of certification and degrees, from a variety of entry points. This approach will be replicated in the other target industries. iii. improve access to activities leading to a recognized postsecondary credential (including a credential that is an industry-recognized certificate or certification, portable, and stackable) A revitalized role for adult education as more than the GED will serve as an anchor to enhancing basic education that will then support more individuals in their ability to be successful in post- secondary education and credential. WIOA Title I programs have 13

14 Capital Region Workforce Area Local Plan Contents revamped their service model to employ use of Talent Engagement Specialists and Talent Development Specialists. This approach allows for a triage to determining what incoming customers are training-ready and which will require some form or forms or other preparation services before educational advancement can be planned. The Community College Workforce Credentials grant will also expand attainment levels in the region. Through, partners and service providers will be given access to Board-produced labor market data that includes which links education levels and certificates with both projected occupations in demand as well as real time compilations from job openings in the area. c. Business Services Provide a description of how the plan shall: i. specify the policies and protocols to be followed by all of the region's workforce development entities when engaging the region's employers Our regional Business Solutions Team is a collaborative effort between the Workforce Development Board and its local government and non-profit partners. Working together as a team, it allows us to support larger and more complex projects than individual organizations can handle. This also gives employers the bonus of being able to interact with just one person, knowing that the information is then disseminated to the entire region. With a team of 15 organizations and an network of over 800 workforce professionals, we re able to handle job postings, recruitment, job fair, training, 14

15 Capital Region Workforce Area Local Plan Contents consultation, and outplacement needs. We also actively address skill gaps and build career pathways in our region to ensure the right talent development is meeting current and future needs. ii. address how the region's workforce entities will involve employers in the formation of new workforce development initiatives Surveys, focus groups, Chamber and Business/Trade Group meetings, outreach materials, on site visits. iii. identify what activities will be undertaken to address employers' specific workforce needs Recruiting and Screening Services Advertise Job Openings: We provide a single contact person to post job openings across the region giving you direct access to active job seekers. Screen Applications: We screen applicants to employer specifications. Typical requests include screening for technical skills, past work experience, and criminal history. All of the job seekers we 15

16 Capital Region Workforce Area Local Plan Contents assist through our Resource Workforce Centers also have completed academic and aptitude assessments, giving us insight into their suitability for job positions. Meet the Recruiter: With three centers in the region and access to our partners sites, we can always find a free facility for employer use to get in front of job seekers. Or we can run an event on site. We help with all aspects of the event marketing, planning, and actually running it. This is an opportunity to interact in-person with job seekers and to talk with employers directly. Job Fairs: We host job fairs on a regular basis throughout the region. Pooling multiple employers together attracts large groups of job seekers. These job fairs can be open to the public or run as an invitation-only event depending upon needs. We also run job fairs by industry to better target job seekers with the desired skill sets. Consultative and Planning Services Labor Market Information Research: Provide employers with requested information on localized labor market information. 16

17 Capital Region Workforce Area Local Plan Contents Outplacement Assistance: Assisting businesses which are downsizing due to economic factors or other circumstances. This can include creating workforce reduction plans that minimize impact on employees and business reputation. Consultation Services: Providing entrepreneurs and businesses information and resources to enhance business performance. Tax and Financial Incentive Services Helping locate and apply for federal and state tax incentives We also offer a variety of employee development services such as OJT, Work Experience, and employee assessments, Provide a description of the strategies and services that will be used in the local area: iv. to facilitate engagement of employers in workforce development programs, including small employers and employers in in-demand industry sectors and occupations Surveys, one-on-one visits/interview and focus groups, peer awareness from business- 17

18 Capital Region Workforce Area Local Plan Contents sector board members. v. to support a local workforce development system that meets the needs of businesses in the local area Seamless delivery through single point of contact of the Business Solutions team, delivering services in an efficient manner that eliminates unnecessary processes, paperwork and time delays. The workforce partners agree to establish a collaborative outreach and recruitment structure, leverage resources, share in performance outcomes to determine value as a system, create a talent pipeline for existing and emerging in-demand industries and occupations, establish an inventory of existing training options and work with economic development and businesses to fill any gaps that may exist. vi. to better coordinate workforce development programs and economic development Coordination is already effectively working through the Business Solutions Team, which includes active participation of economic development officials, both local and regional. Economic Development is also active and engaged in the Board, its committees and CLEO meetings. vii. to strengthen linkages between the one-stop delivery system and unemployment insurance programs that may include the implementation of initiatives such as incumbent worker training programs, on-the-job training programs, customized 18

19 Capital Region Workforce Area Local Plan Contents training programs, industry and sector strategies, career pathways initiatives, utilization of effective business intermediaries, and other business services and strategies designed to meet the needs of regional employers The VEC and WIOA Title I operator are already conducting joint orientations and workshops for RESEA to more actively engage unemployed individuals more quickly. This will continue in the plan year, and other efforts will be enhanced through permanent full-time location of VEC in two of our three workforce center. d. Economic Development Collaboration Provide a description of how the Local WDB will coordinate local workforce investment activities with regional economic development activities that are carried out in the local area and how the Local WDB will promote entrepreneurial skills training and microenterprise services. As mentioned previously, economic developers are actively engaged in the Business Solution team and provide numerous business leads, share information about workforce system services, make referrals and involve workforce partners in meetings with businesses that have hiring and training needs. All of these efforts will be continued. Additionally, active participation by economic developers in the Board s Strategy and Outcomes Committee regularly and routinely shapes policy development in such a way that decisions, actions, strategies and services are representative of responsive to business needs. With respect to entrepreneurial efforts, the Board and its service provider will tap into the resources of the 19

20 Capital Region Workforce Area Local Plan Contents Thrive, or small business development center at the Richmond Chamber of Commerce. Use of such resources will enable us to leverage existing efforts for the benefit of our jobseeking customers who may have the interest and aptitude to start their own businesses without requiring us to replicate or set up new ventures. e. One Stop System Provide a description of the one-stop delivery system in the local area, including: i. how the Local WDB will ensure the continuous improvement of eligible providers through the system and that such providers will meet the employment needs of local employers, workers, and job seekers Contracted service providers are evaluated on an on going basis through the WDB s Strategy and Outcomes Committee, submission of regular progress reports and by periodic check-in meetings with staff. This multi-pronged approach allows for early and proactive measures to effect needed changes to improve upon service delivery. For training providers, the Board evaluates carefully if a program supports occupational needs of employers in the region prior to placement on the state list and evaluates other indicators of success such references, access and availability of programs, cost compared to other similar programs etc. After placement on the list, performance will be evaluated annually through the state s required performance outcome process. Additionally, case managers will conduct feedback surveys from participants in training to see if the program is as promoted and describes, if expectations are being met or there are items that need to be addressed for improvement. For those programs that 20

21 Capital Region Workforce Area Local Plan Contents have not served a WIOA participant in a year s time, an annual review will still be conducted to ensure a base level of quality remains in place. ii. how the Local WDB will facilitate access to services provided through the one-stop delivery system, including in remote areas, through the use of technology and other means The region s three workforce centers in Chesterfield, Henrico and Richmond are located within the jurisdictions that account for a majority of our service population volume (93% of all customers in the previous program year). All are accessible to public transportation. For the outlying jurisdictions, we maintain an affiliate site in Goochland County and have established or are working to establish a presence in community libraries in Charles Ciuty/New Kent, Hanover and Powhatan. These sites serve as significant points or access for a variety of community services and information. Our approach will include scheduling on site staff time and workshops, electronic connections to the workforce centers and cross-training of library staff. iii. how entities within the one-stop delivery system, including one-stop operators and the one-stop partners, will comply with WIOA sec. 188, if applicable, and applicable provisions of the Americans with Disabilities Act of 1990 (42 U.S.C et seq.) regarding the physical and programmatic accessibility of facilities, programs and services, technology, and materials for individuals with disabilities, including providing staff training and support for addressing the needs of individuals with disabilities 21

22 Capital Region Workforce Area Local Plan Contents Centers and Partner sites will post required notices to ensure all eligible individuals are aware of the system s obligations to operate programs in a non-discriminatory manner. Equal Employment Opportunity is the Law notices will be posted in all partner facilities and will be reviewed with each program participant and documented in each client file. Equal Employment Opportunity language will be placed on all new and reprinted outreach and recruitment documents. - All workforce centers will be accessible to individuals with disabilities. - Monitoring will include a review of system compliance regarding all of the above. - The Workforce Development Board will request that DARS provide training to partner staff regarding serving individuals with disabilities. iv. the roles and resource contributions of the one-stop partners This will be established in more detail through the Memorandums of Understanding (MOU) that will take effect July 1, Partners will be asked to agree that program services and activities provided through the Center will be funded by partners of the Center. In addition, a Resource Sharing Agreement will be developed using an agreed upon methodology with the Workforce Development Board and will include shared costs for facilities and/or related items among all partners. Shared costs may be offset by negotiated in-kind services on a case-by-case basis. v. the services provided by each partner mandated by federal and state law, and other optional partners All partner core services as defined in federal law/regulation and state policy will be 22

23 Capital Region Workforce Area Local Plan Contents provided through the workforce system. The local MOU under development will further articulate the detail and nature of service as well as the means by which they will be accessible. See the documents at Attachment D for detail on current arrangements. vi. the Virginia Workforce Center Operator for each site in the area The current operator is a consortium consisting of Henrico County (as Title I grant recipient), the Department for Aging and Rehabilitative Services and Senior Connections (a Title V Older Worker entity). A competitive procurement is planned for the Spring of 2017 such that a new operator will be selected and in place by July 1, vii. the physical locations of each comprehensive Virginia Workforce Center in the local area, and the co-location strategy for each center (current and planned) Cedar Fork Eastern Henrico: WIOA Title I, VEC, DARS, Adult Education, Dept. of Veterans Services and Henrico Community Corrections. Other partners to be connected through MOU framework built on referrals, information and some itinerant presence. Cary Street Richmond City: WIOA Title I, VEC, Adult Education, Richmond Center for Workforce Innovation. Other partners to be connected through MOU framework built on referrals, information and some itinerant presence. 23

24 Capital Region Workforce Area Local Plan Contents viii. if applicable, the locations of Virginia Workforce Network affiliated sites, partner sites or specialized centers Turner Road Chesterfield; WIOA Title I, Adult Education, Senior Connections. Other partners to be connected through MOU framework built on referrals, information and some itinerant presence. River Road (Goochland) WIOA Title I by appointment. Provide a description of professional staff development strategies to include: ix. process used to ensure that staff receive continuous training in workforce development practices Encouraging attendance at conferences and training events, online webinars and workshops, and brown-bag type lunch and learn events. x. methods to ensure effective use of the Virginia Workforce Connection system of record and to adhere to timely data entry requirements for WIOA services Managed by contracted service providers and evaluated through annual monitoring. xi. process to measure staff performance and delivery of high-quality customer service Customer surveys and mystery shopping, as well as third party evaluations. xii. process to meet and maintain staff certification and Virginia Workforce Center certification as required by Virginia Workforce Council Policy It is our understanding that the state policy is no longer in place and/or being re- 24

25 Capital Region Workforce Area Local Plan Contents evaluated. However, WIOA Title I staff participate in training through Dynamic Works which leads to certification. We will encourage other partners to f. Adult & Dislocated Worker Services Provided Provide a description and assessment of the type and availability of adult and dislocated worker employment and training activities in the local area, to include: i. universal access to core services The area s three workforce centers provide ample access to core services to a universal population of users. Between the three centers there 64 public-use computers, as well as access to a vast array of career information, job openings, on-site recruitment events, and information about programs and services that may be of interest or benefit to the approximately 35,000 individuals who visit our centers in a year. In addition, we have started and will continue to expand core services into the more remote areas of our region through a combination of use of library facilities and cross-training of library staff. ii. access to employment, training and supportive services Orientations are currently offered two days per week in each of the three centers. Once interest is determined, along with the ability o benefit, eligibility is determined and a customer is enrolled. The talent engagement specialist will conduct assessment and determine the course of service for the customer. A talent development specialist is assigned to those ready to proceed directly in WIOA Title I services, and/or referrals are made. 25

26 Capital Region Workforce Area Local Plan Contents iii. the area s definition of self-sufficiency to be used when determining eligibility for intensive and training services for employed individuals The area will use MIT s living wage calculator to determine self-sufficiency. The calculator is adjusted to each jurisdiction in the country and also available at the MSA level. The living wage model is an alternative measure of basic needs. It is a market-based approach that draws upon geographically specific expenditure data related to a family s likely minimum food, child care, health insurance, housing, transportation, and other basic necessities (e.g. clothing, personal care items, etc.) costs. iv. the area s definition of hard-to-serve populations with additional barriers to employment Basic skills deficient, low-income and/or not at self-sufficient wages, long-term unemployed, homeless, those with a disability, ex-offender status, English as a Second Language, foster care or aged out of foster care, pregnant or parenting teens g. Rapid Response Coordination Provide a description of how the Local WDB will coordinate workforce investment activities carried out in the local area with statewide rapid response activities, as appropriate. In addition to the protocol that is in place to respond to active events, which includes WIOA Title I involvement, the WDB and regional Rapid Response team will engage in direct and deliberate communication on no less than a monthly basis for the primary purpose of 26

27 Capital Region Workforce Area Local Plan Contents discussing relevant activity in the region for their shared objectives. At minimum, this meeting will involve the WDB Executive Director or Assistant Director/designee and the Central Virginia Rapid Response Coordinator. Other participants as deemed appropriate by either party for that particular month's topic(s) may also preside (e.g. other workforce development agency partners within the network, etc.). Priority agenda items for the monthly meeting will follow the format of, but not be limited to: 1) Review of most recent Rapid Response activity in the region a) follow-up of Dislocated Workers and response rate, assistance received and progress/outcomes b) successes/businesses' (specific) involvement 2) Recent workforce trends/fluctuations (if applicable) 3) Health of business/industries a) early indicators/warning signs b) updates 4) Outreach needs 5) Other/miscellaneous 6) Suggested actions 7) Wrap-up h. Youth Services Provided Provide a description and assessment of the type and availability of youth workforce investment activities in the local area including activities for youth who are individuals with disabilities, which must include an identification of successful models of such activities; and the following: 27

28 Capital Region Workforce Area Local Plan Contents i. the local area s strategy for ensuring the availability of comprehensive services for all youth As the local area seeks to reach out and offer comprehensive services to the disadvantaged, unskilled, and often forgotten young adults, we are using the legislation s charge of innovation to rethink and evaluate our current service delivery model. Our new model takes into consideration the many challenges facing young people, as well as how they view their roles in the workforce. It has been our region s experience that this vulnerable population does not perceive the world of work with optimism, enthusiasm or commitment. Unfortunately, for them the workforce is just another system of rules withultimate disappointment. Additionally, we are continuing to serve more young adults with multiple barriers combined with diagnosed and undiagnosed mental health issues. Therefore, under the new WIOA legislation it is vital that we first change the conversation not only with our partners, but business and the participants to build effective evidence-based programs. We will build upon our 2011 youth resource mapping project that identified programs, surveyed and convened service providers in our community aligned with program elements. This review and update will allow for informed decisions about whether to expand or contract partner services, identify new partners, and to leverage and align resources to ensure the availability of comprehensive youth services in the region. Under WIOA and its expansion of the program elements, it will become imperative for staff to have knowledge and access to that information, via our website and other readily accessible tools, to support youth workforce development. 28

29 Capital Region Workforce Area Local Plan Contents ii. how the area will identify and select successful providers of youth activities and delivery of the fourteen youth program elements required under WIOA Using the results of our resource mapping study along with the evaluation tools developed by The Coalition for Evidence-Based Policy for evaluation and cultivating success career models, we plan to replicate and use these tools to identify and select providers in the metro Richmond region. Our strategy also includes clarification of roles and alignment of goals and resources through partnership agreements to ensure access and ongoing evaluation. iii. strategies to identify, recruit and retain out-of-school youth, and efforts to ensure the required percent of WIOA youth funds are expended Recognizing that the purpose of youth employment is not only to provide jobs, but engagement in the wide variety of personal and social development activities that are offered to provide the knowledge, skills, and attitudes that are frequently said to be needed in the labor market. These include teamwork, communication, leadership, flexibility and responsiveness. They also include creativity and innovation, which involve defining problems, coming up with ways of dealing with them, and sticking to a chosen course of action. In this way youth work contributes to closing the gap between the competencies acquired by young people and the needs of the labor market. Our way to ensure these young adults receive access is by developing targeted populations cohorts with multiple entry points. This model, which is used by Adult Education, the Community College and other partners, will allow for each group of young adults that have 29

30 Capital Region Workforce Area Local Plan Contents similarly identified challenges to employment to move through the system as one unit with of peer support, which also allows for our partners and programs to systemically plan how they allocate their resources in the workforce system, thus ensuring youth receive access to required elements. iv. how the required program design elements will be addressed as part of the development of youth service strategies The program design framework will be provided primarily by the selected provider. However, we plan to cross train multiple partners within the workforce center that have similar functions to be cross trained to expedite the enrollment process and to have multiple entry-points. In the event a provider is not in place the fiscal agent will provide such services until a new provider can be secured. v. policy regarding serving youth who do not meet income eligibility guidelines, including appropriate referrals - We plan to develop a policy that outlines this process in the Capital Region which is part of our larger framework of a new partner convening group that will meet regulary to enhance referral processes, discuss co-enrollment options and co-case management. vi. efforts to coordinate with Job Corps, youth opportunity grants where applicable, registered apprenticeship programs, local offices on youth, and other youth services, including 30

31 Capital Region Workforce Area Local Plan Contents those administered through community colleges and other higher education institutions and local human services agencies Recruitment for this population requires knowing your partners and their programs. We plan to build a pipeline by tapping into pre-existing community programs based on our target populations. This type of collaboration will allow for our program to build on the knowledge and trust the community based program has established with that participant and their community. In addition, we are updating our customer facing website to be user-friendly to the job-seekers and partner agencies. We also use social media. How we leverage and align resources with our stakeholders, which include Job Corps, apprenticeship, human service and higher education is extremely important. Our efforts includes, but is not limited to relationship building, collocating, effective agreement, cosponsored events and program services, team meetings and material sharing. vii. efforts taken to ensure compliance with applicable child labor and safety regulations Our efforts to ensure compliance with applicable child labor and safety regulations are governed in large part by our attachment to Henrico County government and its Risk Management Department. We will continue to also train program staff, have appropriate links on our website to resources and maintain requirement in our work experience manuals and agreements. viii. pay-for-performance policy as applicable-l At this time, the local area is not planning to pursue such a policy 31

32 Capital Region Workforce Area Local Plan Contents i. Supportive Service Provision Provide a description of how the Local WDB will coordinate WIOA Title I workforce investment activities with the provision of transportation and other appropriate supportive services in the local area. Priority for supportive services is given to those items directly related to participant training success. Broader needs are primarily met though networking and connections with organizations such as Department of Social Services, Mental Health, Health Departments, United Way, Community Action Agencies, Head Start Programs, literacy councils, housing and homeless networks and faith-based organizations. The local area will consider last resort situations on a case-by-case if other avenues are not available or urgency of timing does not make such coordination possible. j. Training Services Provide a description of how training services outlined in WIOA sec. 134 will be provided through the use of individual training accounts, including, if contracts for training services will be used; and the following: i. how the use of such contracts will be coordinated with the use of individual training accounts The local area has just adopted a new policy on Contract Training which will allow for a focused on a more-cohort-based model of moving participants into training with a group of peers. The contracts must be for programs that support in demand occupations or those in our target industries. Contracts will be blended with issuance of 32

33 Capital Region Workforce Area Local Plan Contents ITAs based on individual interests, aptitudes and abilities as well as the timing of individual employment plans. (i.e. customers won t be held if a contract group is not forming soon enough to meet their need). ii. how the Local WDB will ensure informed customer choice in the selection of training programs regardless of how the training services are to be provided This is imbedded in the local areas Access to Training policy. T6he policy establishes that many factors must be considered along with customer choice to ensure that the customer is set up for success, not failure and that Board s limited resources are strategically deployed. Informing customers of as many aspects related to training has been determined an effective way to achieve these outcomes. Such factors include: A. Customer's educational level; B. Previous skills training; C. Employment readiness level; D. Career goals; E. Customer's aptitude and interest for the selected training, and tolerance to environmental factors and/or working conditions associated with the training; F. Availability and length of training; G. Cost of training; H. Financial ability of customer to undertake and complete training along with any ancillary costs; 33

34 Capital Region Workforce Area Local Plan Contents I. Potential for a customer to obtain employment that advances their earning potential beyond wages reported at the time of enrollment and towards self-sufficient wages as may be defined by the Resource WIB; J. Physical assessment to determine any limitations that would preclude them from performing work for which participant is being trained; K. Criminal background check, if appropriate, to identify barrier crimes that would preclude participant from employment in identified occupation; L. Drug testing if required by the training provider or occupation as a condition of employment k. Collaboration with the Community Colleges Provide a description of how the Local WDB will collaborate local workforce investment activities with the community colleges in their area in the planning and delivery of workforce and training services. The WDB has an established history of working collaboratively with the two community colleges that service our region through the Community College Workforce Alliance. Specific examples include: - Programs of training: The Board has recently reviewed and approved some 27 programs to the eligible training provider list as viable and effective offerings for our job-seeking customers to consider. These programs all align with occupations on the Board s targeted industry list and ensure effective investment of Board training resources. - Grants Collaboration: The Board and CCWA have long partnered on grant opportunities to expand upon the portfolio of employment and training resources available within the 34

35 Capital Region Workforce Area Local Plan Contents region, where need far surpasses traditional resources at our disposal. These have included efforts in entrepreneurial training, on the job training and incumbent worker training. We will continue to identify grant opportunities with the colleges and additional partners that support career pathway strategies. - Onsite offerings: CCWA makes some training classes and offering available in the region s workforce centers as a way to provide more convenient access to customers of the workforce centers. - CCWA s active participation in Board membership, service on Board committees and the regional Business Solutions Team. In addition to continuation of the above, the Board will seek to connect employers who are interested in board-funded training assistance to CCWA for exploration of possible credentials and certificates that may be connected to such training to mutually benefit our customers and the Commonwealth in achieving its goals of more credential attainment. l. Collaboration with Education Provide a description of how the Local WDB will coordinate relevant secondary and postsecondary education programs and activities with education and workforce investment activities to coordinate strategies, enhance services, and avoid duplication of services. The local area has been establishing connections with our region s secondary school systems through our in-school youth program. Our program operator has service level targets for each jurisdiction and in that effort has been able to establish working relationships that can lead to great awareness of possible services and facilitate better connections. We are also fortunate to have representation on the Board from both a School Superintendent and a Director of 35

36 Capital Region Workforce Area Local Plan Contents Career and Technical Education. The local area will take advantage of their participation as a way to develop inroads into school systems where more career awareness, sharing of labor market information and connections with employers can be established and expanded. Likewise, our Chief Local Elected Officials will continue to earmark local funding for youth employment, training and job fair events. The local area will also seek to work with secondary schools, employers and chambers of commerce to pilot and then establish local job awareness events where students can visit area businesses to see the types of careers that are available in the local areas, similar to the more traditional college visits. This may also lead to development of internship opportunities. the local area has also agreed to partner with Virginia Commonwealth University as they launch a three year grant-funded effort to make more high school students aware of the college offerings available in the area and provide information, application assistance, financial aid filing assistance, counseling and other forms of support to reach a population that may not otherwise consider or have the resources and assistance to consider and pursue postsecondary education. m. Collaboration with Adult Education and Literacy Provide a description of how the Local WDB will coordinate WIOA Title I workforce investment activities with adult education and literacy activities under WIOA Title II, including how the Local WDB will carry out the review of local applications submitted under Title II consistent with WIOA secs. 107(d)(11)(A) and (B)(i) and WIOA sec The LWDB will coordinate WIOA Title I with Title II adult education activities by supporting the 36

37 Capital Region Workforce Area Local Plan Contents colocation of partners at the workforce center locations in the region. Region 15 Adult Education will provide skill assessments and instruction or tutoring at all three locations. Title I and Title I programs will also work together in a partner convening group that meets regularly to manage co-enrollments, collaborative service delivery and a seamless referral process. Additionally, the LWDB will support all partners in the development of career pathway opportunities in the region for in-demand occupations. Adult education is recognized as the partner to provide instruction for adults in the areas of reading, writing, speaking listening in English and math instruction below the 12th grade level in addition to the completion of a high school equivalency. This instruction allows adults to increase their literacy and numeracy skills preparing them for the workforce and employment. Under Title II of WIOA the eligible agency (VADOE) must consider the extent to which the local eligible provider in the Capital Region is responsive to serving those individuals identified in the LWDB plan as needing adult education and to those with barriers to employment. The review of the local adult education applications allows the LWDB to consider the collaboration of required partners and the Title II applicant at providing the best access to education and training for all individuals with barriers to employment. The LWDB s review of eligible Title II local applications will consider the requirements (SEC. 232) and and considerations (SEC. 231) under WIOA. n. Priority of Service Provide a description of how the direction given by the Governor and the Local WDB to the one-stop operator to ensure priority for adult career and training services will be given to recipients of public assistance, other low-income individuals, and individuals who are basic 37

38 Capital Region Workforce Area Local Plan Contents skills deficient consistent with WIOA sec. 134(c)(3)(E) and As defined by the WDB in local policy, priority of service means that at least 51% of adult funds in a year will be allocated to individuals that are either low income or basic skills deficient. Veterans and other covered persons are also provided priority of service. o. Incorporation of Technology Provide a description of how one-stop centers are implementing and transitioning to an integrated, technology-enabled intake and case management information system for programs carried out under WIOA and by one-stop partners. Local efforts will be limited until it is know what will result from the State s recently announced efforts in this regard as far as a common intake and tracking tool. The local area will move forward with an electronic referral system to replace the current more cumbersome paper based system. WIOA, Wagner-Peyser and Trade will continue to use the Virginia Workforce Connection for case management services locally. p. Efficient and Effective Service Delivery Provide a description of the plans, assurances, and strategies for maximizing coordination, improving service delivery, and avoiding duplication of Wagner-Peyser Act (29 U.S.C. 49 et seq.) services and other services provided through the one-stop delivery system. Key to success is the full co-location of the VEC into two of our three workforce center. VEC will staff the resource room to ensure that WIOA resources are not duplicated in the overlap of like core services. Workshops will be conducted by the WIOA title I service provider so VEC 38

39 Capital Region Workforce Area Local Plan Contents will not have to duplicate such efforts. All WIOA customers are required to enroll in the Virginia Workforce Connection for job information. There will be greater emphasis on the sharing of job orders and job postings among all workforce partners through the Business Solutions team. q. Fiscal Agent Provide a description of the fiscal and budgetary strategies used in the local area, to include: i. identification of the entity/fiscal agent responsible for the disbursal of grant funds described in WIOA sec. 107(d)(12)(B)(i)(III), as determined by the chief elected official Henrico County is the locally-designated fiscal agent. ii. the methods and strategies used to ensure timely expenditure of WIA funds Tracking fiscal spending against budgets has proven an effective tool in this regard and will continue to be employed during the plan life. At the service provider level, contract budgets are driven down to the center level so that each manager is aware of and can track their available funds and spending, while the regional director keeps track of the total budget and spending. Use of a pipeline model allows tracking of both expenses paid and encumbrances made throughout the year so that targets can be tracked on an on-going basis. At the Board level, the fiscal office produces monthly spending to budget reports for staff monitoring, and quarterly reports are provided to the CLEO and Workforce Development Board. 39

40 Capital Region Workforce Area Local Plan Contents iii. the competitive process to be used to award the grants and contracts in the local area for activities carried out under WIA The Capital Region utilizes the competitive processes outlined in Henrico County s Procurement Manual, which meets any and all federal and state requirements for such activities. Following any competitive procurement issuance, a review panel made up of CLEO and Workforce Board members is assembled to score proposals, interview top scoring respondents and make selection recommendations to each respective body. iv. the strategy used by the LWIB to leverage WIA funds with other Federal, State, local and philanthropic resources Local government funds, non-required partner funds, services provided in-kind by the grant recipient and cost allocating with required partners are all methods used locally. During the plan life, there will be a strategic and thoughtful approach to determine which other funding sources will be sought to expand the resource portfolio. There has been a growing recognition locally that not all supplemental funding opportunities prove to be entirely beneficial. There must be a local alignment to goals, strategies, service models and partner relationships for the supplemental funds to achieve maximum impact. 40

41 Capital Region Workforce Area Local Plan Contents r. Procurement Provide a description of the competitive process that will be used to award the sub-grants and contracts for WIOA Title I activities. As grant recipient, the Henrico County Procurement Office manages all major procurement efforts of the local area. Where thresholds do not meet competitive procurement, the local area follows the Henrico County procurement policies and procedures. s. Performance Provide a description of the local levels of performance negotiated with the Governor and chief elected official consistent with WIOA sec. 116(c), to be used to measure the performance of the local area and to be used by the Local WDB for measuring the performance of the local fiscal agent (where appropriate), eligible providers under WIOA Title I subtitle B, and the one-stop delivery system in the local area. Virginia - Negotiated Adults Level LWDA Level Employment 2nd Quarter after Exit Employment 4th Quarter after Exit Median Earnings 2nd Quarter after Exit $5,500 $5,166 Credential Attainment within Four Quarters after Exit

42 Capital Region Workforce Area Local Plan Contents Dislocated Workers Employment 2nd Quarter after Exit Employment 4th Quarter after Exit Median Earnings 2nd Quarter after Exit $7,600 $6,577 Credential Attainment within Four Quarters after Exit Youth Employment 2nd Quarter after Exit Employment 4th Quarter after Exit Credential Attainment within Four Quarters after Exit t. Quality Assurance Provide a description of the actions the Local WDB will take toward becoming or remaining a high performing WDB, consistent with the factors developed by the State WDB. The local area will maintain its high-performing status (having only failing to meet 1 out of 36 negotiated measures in the past three years) by: competitive selection of quality service providers, on-going evaluation and monitoring of provider performance, use of customer satisfaction surveys and focus groups as ways to enhance service, quarterly analysis of results to determine where areas of corrective action may be needed to proactively improve outcomes prior to year-ending results and use of predictive analysis features that are available for more informed program management. 42

43 Capital Region Workforce Area Local Plan Contents u. Public Comment Period Provide a description of the process used by the Local WDB, consistent with WIOA sec. 108(d), to provide a public comment period prior to submission of the plan, including an opportunity to have input into the development of the local plan, particularly for representatives of businesses, education, and labor organizations. General public comment opportunity was made available through posting of the draft document onto the local board s website, in combination with s blast to communities of interest making the posting known and inviting recipients to share with their communities of interest. Targeted participation in plan development was achieved through facilitate planning sessions that were conducted for workforce partner agencies and workforce board members and community stakeholders. The partner session included Adult Education, Community College Workforce Alliance, two Departments of Social Services, Department for Aging and Rehabilitative Services, WIOA Title I Adult, Dislocated Worker and Youth, Virginia Employment Commission, and the Area Agency on Aging. Board Member/Stakeholder session attendees were representative of regional employers (small, medium and large sized), economic development, higher education, K-12 education, Planning District Commission, organized labor, and community-based organizations. 43

44 Capital Region Workforce Area Local Plan Contents Public Comments Received Section 44

45 Capital Region Workforce Area Local Plan Contents Plan Appendix Workforce Analysis for the Capital Region (Begins on following page) 45

46 Capital Region Workforce Development Area Workforce Analysis January 20, 2017 Virginia 1309 East Cary Street, 2nd floor Richmond, VA P: Ohio 1025 Huron Road East Cleveland, Oh P: Washington 1325 West First Avenue, Suite 200 Spokane, WA P:

47 Table of Contents Background... 3 Employment Indicators... 3 In-Demand Industry Sectors... 3 Target Industry Index... 5 In-Demand Occupations... 9 Occupation Index Knowledge and Skills Needed State of the Workforce Employment and Unemployment Characteristics and Trends in the Region s Available Workforce Educational and Skill Levels

48 Background The Capital Region Workforce Partnership (CRWP) is seeking workforce supply and demand data and analysis to support its local strategic plan development. Data are needed to create a plan that takes advantage of the new opportunities to serve the region s population under the Workforce Innovation and Opportunity Act (WIOA). Chmura Economics & Analytics (Chmura) was contracted to provide and analyze these data. Employment Indicators The Capital Region Workforce Partnership Workforce Development Area (WDA 9, Capital Region) encompasses eight geographic jurisdictions concentrated in the central part of the state. The region is comprised of Richmond City and the counties of Hanover, Chesterfield, Henrico, New Kent, Powhatan, Goochland, and Charles City. The region s largest sectors of employment include health care and social assistance, retail trade, educational services, accommodation and food services, and administrative and support and waste management and remediation services. 1 In-Demand Industry Sectors As of the third quarter of 2016, the Capital Region employed more than 589,700 people with an average annual wage of $50,699. The management of companies and enterprises sector paid the highest average wage at $116,731, followed by finance and insurance at $84,904, and utilities at $79,383. In contrast, the lowest annual average wages were $17,307 in the accommodation and food services sector, and $19,982 in the arts, entertainment, and recreation sector both sectors where part-time and seasonal workers bring the average down. 1 Note: Total employment by firm and occupation in the economic and workforce sections of this report include estimates for proprietors as well as railroad and religious employees that are not covered by unemployment insurance. 48

49 Over the next ten years beginning with the third quarter of 2016, employment is expected to grow an annual average 0.8% in the Capital Region, slightly faster than the 0.7% forecast for Virginia. The health care and social assistance sector is expected to be the fastest growing sector in the region with average annual growth of 1.9% per year. It is followed closely by construction (1.4% per year) and professional, scientific, and technical services (1.1% per year). Increases in employment due to industry sector growth are expected to add 48,019 employees in the Capital Region in the next ten years beginning with the third quarter of In addition, 148,361 positions will need to be filled due to replacement demand over the next ten years as individuals retire or move to different occupations. As shown in the table below, even the five sectors that are expected to contract over the next ten years will need to fill positions due to replacement demand. Moreover, some of the contracting industries such as manufacturing pay higher wages than the regional average. Current and Forecast Employment Growth for Major Industry Sectors in Capital Region (WDA 9) NAICS Industry Employment Current Four Quarters Ending with 2016q3 Avg. Annual Wages Total Approx. Repl Demand Forecast Over the Next 10 Years Total Growth Demand Avg. Annual Growth Percent 62 Health Care and Social Assistance 80,949 $50,063 16,936 16, % 23 Construction 36,851 $51,268 7,704 5, % 54 Professional, Scientific, and Technical Services 41,246 $78,643 8,948 4, % 56 Administrative and Support and Waste Management and Remediation Services 44,201 $34,743 10,362 4, % 71 Arts, Entertainment, and Recreation 13,174 $19,982 4,155 1, % 52 Finance and Insurance 37,752 $84,904 9,177 2, % 61 Educational Services 52,540 $43,109 11,306 3, % 42 Wholesale Trade 22,982 $66,969 5,188 1, % 44 Retail Trade 60,279 $27,995 19,160 3, % 72 Accommodation and Food Services 45,675 $17,307 16,370 2, % 53 Real Estate and Rental and Leasing 9,396 $52,791 2, % 55 Management of Companies and Enterprises 21,165 $116,731 4, % 81 Other Services (except Public Administration) 30,693 $30,599 7,825 1, % 21 Mining, Quarrying, and Oil and Gas Extraction 295 $58, % 48 Transportation and Warehousing 22,156 $43,095 5, % 92 Public Administration 32,280 $58,190 7, % 11 Agriculture, Forestry, Fishing and Hunting 1,421 $26, % 22 Utilities 2,175 $79, % 51 Information 7,770 $60,589 1, % 31 Manufacturing 25,971 $61,698 5,785-2, % 49

50 99 Unclassified 753 $41, % Total - All Industries 589,721 $50, ,361 48, % Source: JobsEQ Note: Figures may not sum due to rounding. The three largest industry sectors in the Capital Region (health care and social assistance; construction; and professional, scientific, and technical services) currently employ 27% of the region s workers. Looking ahead, those sectors are expected to add 27,423 employees over the next ten years, more than half (57%) of the total estimated growth in the region. An additional 33,588 positions will need to be filled in those three sectors as individuals retire or move to new occupations over the next ten years. Target Industry Index Chmura developed a Sectors Index to provide an alternative perspective from which to assess the value of the region s industries relative to workforce and economic development. The underlying rationale is that this index may be used to help inform the prioritization of certain sectors based on key criteria that are especially valuable to workforce development systems. The index rank orders industry sectors based on data compiled at the two- and four-digit NAICS level. This analysis synthesizes several different employment-related trends to identify those industries that are thriving and likely to continue to thrive in the local economy, thus driving continued job gains with a relatively high degree of quality. The index is calculated by rank ordering each individual component, assigning a weight to each component (in consultation with the Capital Regional Workforce Partnership), and calculating a weighted average of the composite index. 2 The index is standardized to be between 1 and 100, with the higher number indicating a more favorable regional position based on weighted criteria. 2 Each major category was weighed equally (20%) while the weights of factors within each major category were not necessarily equal (i.e., the location quotient received a weight of 15% and the change in location quotient over the past decade received a weight of 5%). 50

51 Specifically, the index includes: Projected employment growth rate which prioritizes industries with the fastest expected employment growth over the next decade Projected job openings which shows the expected number of positions to be filled in each industry over the next decade Average annual wages rank industries based on average annual pay, providing a perspective on the quality of jobs in a given industry and determining whether an industry generally provides familysustaining wages Location quotient :Q3 measures industry concentration in the region Change from 2006:Q3 to 2016:Q3 shows whether a regional industry has become more or less concentrated over the past decade Employment multiplier which indicates the importance of an industry to regional job creation The resulting index score and supporting data are shown in the table below. Sectors Index Sector 10-Year Employment Growth Forecast 10-Year Openings Forecast Average Annual Wages Employment Multiplier 2016q3 Location Quotient Change 2006q3-2016q3 Index Score Finance and Insurance 7.4% 11,988 $84, Professional, Scientific, and Technical Services 12.0% 13,907 $78, Construction 15.2% 13,291 $51, Management of Companies and Enterprises 4.0% 5,414 $116, Health Care and Social Assistance 20.8% 33,813 $50, Wholesale Trade 5.8% 6,524 $66, Administrative and Support and Waste Management and Remediation Services 10.8% 15,151 $34, Public Administration -0.7% 7,760 $58, The location quotient measures the degree to which an industry is concentrated or specialized in a region relative to the nation, by computing the ratio of the share of an industry s employment in a region to the same industry s share of employment in the nation. 51

52 Sector 10-Year Employment Growth Forecast 10-Year Openings Forecast Average Annual Wages Employment Multiplier 2016q3 Location Quotient Change 2006q3-2016q3 Index Score Educational Services 7.1% 15,054 $43, Real Estate and Rental and Leasing 3.9% 2,489 $52, Manufacturing -8.0% 5,785 $61, Retail Trade 6.4% 23,023 $27, Other Services (except Public Administration) 4.5% 9,204 $30, Information -3.0% 1,842 $60, Utilities -2.8% 547 $79, Mining, Quarrying, and Oil and Gas Extraction Arts, Entertainment, and Recreation 2.0% 78 $58, % 5,315 $19, Accommodation and Food Services 6.1% 19,151 $17, Transportation and Warehousing 0.3% 5,832 $43, Agriculture, Forestry, Fishing and Hunting Source: JobsEQ -3.0% 491 $26, Based on this analysis, the highest-ranking sectors include finance and insurance; professional, scientific, and technical services; construction; management of companies and enterprises; and health care and social assistance. Two of those sectors are currently targeted by the Capital Area professional, scientific and technical services and health care. Target sectors ranking in the bottom half include transportation and warehousing and manufacturing. Transportation and warehousing was primarily affected by a weak employment growth forecast, lower wages, and lower location quotient. Manufacturing was primarily affected by a weak employment growth forecast and low location quotient. The above analysis was repeated at the more detailed 4-digit NAICS level, resulting in the table of top 25 industries shown below (see Industries Index table). Nondepository credit intermediation had the highest index score at 87.7 based on high and growing location quotient, high average annual wages, strong projected employment growth, and high number of projected openings over the next 10 years. The next-highest ranked industries in the Capital Region were offices of physicians; other financial investment activities; and agencies brokerages, and other insurance related activities. Among currently targeted sectors, six industries ranking in the top 25 belong to the professional, scientific, and technical services sector, five belong to the healthcare 52

53 and social assistance sector, one belongs to the manufacturing sector, and none of the top 25 industries were in the transportation and warehousing sector. Overall, 11 industries ranking in the top 25 belong to current target sectors (highlighted in green) and seven belong to the finance and insurance sector (highlighted in yellow). Based on these results, the Capital Region should consider adding finance and insurance as a first-tier target sector. On the other hand, while manufacturing and transportation and warehousing are large employers for some counties within the Capital Region, they may be more appropriate as second-tier regional targets. Industries Index NAICS NAICS Description 10-Year Employment Growth Forecast 10-Year Openings Forecast Average Annual Wages Employment Multiplier Location Quotient 2016q3 Change 2006q3-2016q3 Index Score 5222 Nondepository Credit Intermediation 8.20% 4,228 $130, Offices of Physicians 21.49% 4,449 $95, Other Financial Investment Activities 38.77% 1,081 $183, Agencies, Brokerages, and Other Insurance Related Activities 11.97% 2968 $84, Architectural, Engineering, and Related Services 10.18% 2,207 $77, Computer Systems Design and Related Services 24.00% 3412 $91, Activities Related to Real Estate 26.50% 1,338 $57, Wireless Telecommunications Carriers (except Satellite) 14.59% 358 $57, Other Investment Pools and Funds 16.00% 10 $184, Advertising, Public Relations, and Related Services 2.58% 859 $69, Management of Companies and Enterprises 4.04% 5,414 $116, Boiler, Tank, and Shipping Container Manufacturing 5.88% 254 $91, Scientific Research and Development Services 5.90% 615 $111, Management, Scientific, and Technical Consulting Services 27.35% 2,631 $75, Offices of Dentists 18.94% 1,431 $57, Wholesale Electronic Markets and Agents and Brokers 26.60% 1,398 $78, General Medical and Surgical Hospitals 7.22% 6053 $60, Medical and Diagnostic Laboratories 32.84% 1,182 $55, Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers Securities and Commodity Contracts Intermediation and Brokerage 11.72% 397 $60, % 340 $127, Activities Related to Credit Intermediation 16.80% 252 $79, Outpatient Care Centers 42.02% 2,429 $49, Accounting, Tax Preparation, Bookkeeping, and Payroll Services 5.61% 1,705 $69,

54 NAICS NAICS Description 10-Year Employment Growth Forecast 10-Year Openings Forecast Average Annual Wages Employment Multiplier Location Quotient 2016q3 Change 2006q3-2016q3 Index Score 2389 Other Specialty Trade Contractors 10.17% 1546 $49, Insurance Carriers -3.56% 1245 $102, Source: JobsEQ In-Demand Occupations The percentage of employment in major occupation groups employed by businesses in the Capital Region fairly closely resembles that of the state. Office and administrative support, sales and related, and food preparation and serving related are occupations held by the largest number of people in both the region and Virginia. Employment in transportation and material moving, business and financial operations, and healthcare practitioners and technical occupations make up a larger share of employment in the Capital Region than in the state, reflecting the region s higher concentration of employment in finance and insurance, transportation, administration and support services, and health care and social assistance firms. SOC Major Occupation Groupings in the Capital Region and Virginia, 2016 Qtr 3 Title Total Employment Capital Region Percent Avg. Annual Wages 1 Total Employment Virginia Percent Avg. Annual Wages Office and Administrative Support Occupations 99, $36, , $36, Sales and Related Occupations 60, $41, , $39, Food Preparation and Serving Related Occupations 47, $22, , $22, Transportation and Material Moving Occupations $33, , $34, Business and Financial Operations Occupations 35, $73, , $79, Education, Training, and Library Occupations 35, $49, , $54, Management Occupations 34, $122, , $127, Healthcare Practitioners and Technical Occupations 32, $76, , $76, Construction and Extraction Occupations $41, , $41, Production Occupations $37, , $36, Personal Care and Service Occupations 23, $24, , $25, Building and Grounds Cleaning and Maintenance Occupations 21, $25, , $25, Installation, Maintenance, and Repair Occupations $47, , $47, Computer and Mathematical Occupations 17, $82, , $94, Healthcare Support Occupations 16, $27, , $28, Protective Service Occupations 11, $39,300 80, $43, Community and Social Service Occupations 11, $45,500 64, $47, Arts, Design, Entertainment, Sports, and Media Occupations 9, $51,300 66, $56, Architecture and Engineering Occupations 8, $76,400 79, $85, Legal Occupations 5, $101,100 31, $104,500 54

55 Life, Physical, and Social Science Occupations 5, $61,700 39, $76, Farming, Fishing, and Forestry Occupations $29,800 12, $29, Total - All Occupations 589, $48,500 4,053, $50,900 Source: JobsEQ Note: Figures may not sum due to rounding. 1. Occupation wages are as of 2015 and represent the average for all Covered Employment The forecasted growth by occupation group in the Capital Region stems from the forecasted growth of industries that need these skills to operate. Given the expected growth in the health care sector, it is not surprising that healthcare support occupations are expected to be the fastest growing occupation group an annual average 2.2% over the next ten years beginning with the third quarter of The average annual wage of healthcare support occupations was $27,400 in The occupation group forecast to grow the second fastest also supports the health care sector; healthcare practitioners and technical occupations, which pay an average annual salary of $76,500, are expected to grow 1.6% over the same period. Personal care and service occupations are expected to be the third fastest growing group at 1.4% per year over the next ten years, with an average annual wage of $24,300. With significantly higher average annual wages of $82,500, computer and mathematical occupations are expected to be the fourth fastest growing group at 1.3% per year over the next ten years. Current and Forecast Occupation Growth for Major Groups in the Capital Region SOC Title Employment Current Four Quarters Ending with 2016q3 Avg. Annual Wages 1 Total Repl. Demand Forecast Over the Next 10 Years Total Growth Demand Growth Plus Repl. Demand Avg. Annual Growth Percent Healthcare Support Occupations 16,402 $27,400 3,727 3,984 7, % Healthcare Practitioners and Technical Occupations 32,773 $76,500 7,452 5,566 13, % Personal Care and Service Occupations 23,302 $24,300 6,657 3,381 10, % Computer and Mathematical Occupations 17,465 $82,500 2,755 2,354 5, % Construction and Extraction Occupations 27,707 $41,000 5,327 3,888 9, % Community and Social Service Occupations 11,508 $45,500 2,581 1,226 3, % Business and Financial Operations Occupations 35,765 $73,200 8,322 3,189 11, % Education, Training, and Library Occupations 35,654 $49,900 7,766 3,171 10, % Installation, Maintenance, and Repair Occupations $47,700 5,476 1,751 7, % Management Occupations 34,096 $122,000 10,401 2,573 12, % Life, Physical, and Social Science Occupations 5,013 $61,700 1, , % Food Preparation and Serving Related Occupations 47,124 $22,200 18,543 3,369 21, % 55

56 Building and Grounds Cleaning and Maintenance Occupations $25,200 5,026 1,626 6, % Architecture and Engineering Occupations 8,487 $76,400 2, , % Legal Occupations 5,774 $101,100 1, , % Sales and Related Occupations $41,300 19,443 3,840 23, % Transportation and Material Moving Occupations $33,800 10,113 2,207 12, % Arts, Design, Entertainment, Sports, and Media Occupations 9,776 $51,300 3, , % Protective Service Occupations 11,690 $39,300 2, , % Office and Administrative Support Occupations $36,400 21,831 3,801 25, % Production Occupations 25,241 $37,100 6, , % Farming, Fishing, and Forestry Occupations 913 $29, % Total - All Occupations 589,721 $48, ,495 47, , % Source: JobsEQ Note: Figures may not sum due to rounding. 1. Occupation wages are as of 2015 and represent the average for all Covered Employment The largest number of workers that businesses are expected to need due to industry growth over the next ten years in the Capital Region are in healthcare practitioners and technical (5,566), followed by healthcare support (3,984) and construction and extraction (3,888). When both growth and replacement demand are considered, office and administrative support occupations top the list of demand occupations with 25,632 workers needed over the next ten years. In second- and thirdhighest demand respectively, sales and related occupations are expected to need 23,283 workers and food preparation and serving occupations will need 21,912. In Chmura s long-run growth model, the Capital Region has two occupation clusters that are likely to expand employment in excess of 1.0% per year over the next decade. These occupation clusters information technology and health science represent approximately 12% of the total employment in the region. 56

57 Occupation Index Similar to the industry index described in the previous section, Chmura developed an Occupation Index to identify occupations that may be particularly appealing from a workforce development perspective. The intent of this tool is to highlight occupations that pay better wages, have a strong employment growth forecast, typically require lower levels of education for typical entry, and are employed by a broad range of industries. Data was compiled at the six-digit standard occupational classification (SOC) level and the index was calculated by rank ordering each individual component. A weight was assigned to each component and a weighted average of the composite index was calculated. 4 The index is standardized to be between 1 and 100, with the higher number indicating a more favorable regional position. Specifically, the index includes: Occupations ranked based on average annual pay, providing a perspective on whether an occupation generally provides family-sustaining wages 4 The category weights were 15% for wages, 40% for education, 40% for projected openings, and 5% for mobility. 57

58 Occupations that were grouped into one of four education categories (less than an associate s degree, associate s degree, bachelor s degree, and more than a bachelor s degree) with higher scores being given to occupations which require less education Projected job openings which show the expected number of positions to be filled in each occupation over the next decade Mobility which indicates the potential ease of switching industries based on an occupation s employment share across industries; this measure is important in the event of industry decline or a dislocation event The top 25 occupations based on index score are shown below. The highest ranked occupation in Capital Region is sales representatives, wholesale and manufacturing, except technical and scientific products. This occupation offers high average annual wages, a high school diploma or equivalent for typical entry, a large number of projected openings, and decent mobility between industries. The next-highest ranked occupations are sales representatives, all other; first-line supervisors of non-retail sales workers; and first-line supervisors of office and administrative support workers. Multiple supervisory-type occupations as well as several skilled trade occupations are presented in the table. Occupation Index Occupation Average Annual Wages Typical Entry-Level Education Total Projected Openings Over the Next 10 Years Mobility Index Index Score Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products $72,600 High school diploma or equivalent 1, Sales Representatives, Services, All Other $67,700 High school diploma or equivalent 1, First-Line Supervisors of Non-Retail Sales Workers $107,200 High school diploma or equivalent First-Line Supervisors of Office and Administrative Support Workers $56,400 High school diploma or equivalent 1,

59 Occupation Average Annual Wages Typical Entry-Level Education Total Projected Openings Over the Next 10 Years Mobility Index Index Score First-Line Supervisors of Mechanics, Installers, and Repairers $68,600 High school diploma or equivalent Property, Real Estate, and Community Association Managers $101,700 High school diploma or equivalent First-Line Supervisors of Retail Sales Workers $45,600 High school diploma or equivalent 1, Supervisors of Construction and Extraction Workers $58,600 High school diploma or equivalent Computer User Support Specialists $51,900 Bachelor's degree Insurance Sales Agents $60,700 High school diploma or equivalent 1, Maintenance and Repair Workers, General $39,400 High school diploma or equivalent 1, First-Line Supervisors of Production and Operating Workers $68,000 High school diploma or equivalent Claims Adjusters, Examiners, and Investigators $64,500 High school diploma or equivalent Farmers, Ranchers, and Other Agricultural Managers $76,900 High school diploma or equivalent Customer Service Representatives $34,800 High school diploma or equivalent 5, Industrial Machinery Mechanics $52,700 High school diploma or equivalent Heavy and Tractor-Trailer Truck Drivers $42,100 High school diploma or equivalent 1, General and Operations Managers $123,500 Bachelor's degree 3, Secretaries and Administrative Assistants, Except Legal, Medical, and Executive $36,600 High school diploma or equivalent 1, Executive Secretaries and Executive Administrative Assistants $52,600 High school diploma or equivalent Licensed Practical and Licensed Vocational Nurses $40,500 Postsecondary nondegree award 1, Managers, All Other $112,900 Bachelor's degree 2, First-Line Supervisors of Transportation and Material- Moving Machine and Vehicle Operators $59,600 High school diploma or equivalent Office Clerks, General $31,100 High school diploma or equivalent 3, Bookkeeping, Accounting, and Auditing Clerks $39,600 Some college, no degree Source: JobsEQ Knowledge and Skills Needed This section identifies current knowledge and skills required to meet the needs of employers as well as longterm needs and potential skills gaps. Current demand is based on Real-Time Intelligence (RTI) gathered and analyzed by Chmura Economics & Analytics from online job postings. Long-term needs and gaps are based on JobsEQ analytics. Job openings identify an immediate skills need, and potential gap, for employers as well as opportunities for job seekers. This is particularly relevant if there are large numbers of job postings for individual occupations 59

60 indicating many businesses need the same skills. As shown in the table below, retail salespersons top the list with 1,723 openings, 5 followed by first-line supervisors of retail sales workers (1,656 openings) and combined food preparation and serving workers, including fast food (927). The top five occupations with current postings align closely with demand in the largest sectors in the region, specifically supporting the retail trade, food services, and healthcare and social assistance industries. Occupations supporting the IT cluster in the region include software developers, applications; computer user support specialists; network and computer systems administrators, and web developers. Online Job Postings for Top 25 Occupations, Capital Region December 2016 January 2017 SOC Occupation Typical Entry-Level Education Number Retail Salespersons Less than high school 1, First-Line Supervisors of Retail Sales Workers High school diploma or equivalent 1, Combined Food Preparation and Serving Workers, Including Fast Food Less than high school Registered Nurses Bachelor's degree Sales Representatives, Services, All Other High school diploma or equivalent First-Line Supervisors of Food Preparation and Serving Workers High school diploma or equivalent Software Developers, Applications Bachelor's degree Computer User Support Specialists Some college, no degree Secretaries and Administrative Assistants, Except Legal, Medical, and Executive High school diploma or equivalent Customer Service Representatives High school diploma or equivalent Nannies High school diploma or equivalent Heavy and Tractor-Trailer Truck Drivers Postsecondary non-degree award Management Analysts Bachelor's degree Medical and Health Services Managers Bachelor's degree Stock Clerks, Sales Floor Less than high school Bookkeeping, Accounting, and Auditing Clerks Some college, no degree Maintenance and Repair Workers, General High school diploma or equivalent Human Resources Specialists Bachelor's degree Network and Computer Systems Administrators Bachelor's degree Web Developers Associate's degree Counts of unique job postings may not equate with actual job demand. For example, job postings may be placed in anticipation of possible openings that do not materialize. Moreover, slight variations of ads may be placed such that the number of ads exceeds the actual number of openings. 60

61 Source: JobsEQ Note: Online jobs included were active at any point in the 30-days preceding January 17, As such, this report may include some ads that were closed as of that date and may include some ads that were first posted prior to the 30-day period. Eight occupations in the top 25 list of job openings typically require a bachelor s degree, while seven typically require a high school diploma or equivalent. Six require no formal educational credential, two require some college but no degree, one requires a postsecondary non-degree award and one requires an associate s degree. Certifications requested in the text of online job postings primarily support the healthcare sector. CPR, basic life support, certified registered nurse, and advanced cardiac life support top the list of the top 25 certifications requested in job ads over this 30-day period overall, 12 of the top 25 certifications are related to healthcare. Commercial Drivers License (CDL) was the fifth most requested certification, in 207 postings, while Class A CDL appeared in 61 posts. Six certifications in the top 25 support the IT cluster and computerrelated occupations, including Project Management Professional (PMP), Information Technology Infrastructure Library Certification (ITIL), and Certified Information Systems Security Professional (CISSP). The Certified Information Systems Auditor certification supports both the IT cluster and the finance and insurance sector; Certified Public Accountant and Certified Internal Auditor are also requested in job postings from the finance and insurance sector. 61

62 Certification in Cardiopulmonary Resuscitation (CPR) Basic Life Support (BLS) Certified Registered Nurse (RN) Advanced Cardiac Life Support Certification (ACLS) Commercial Drivers License (CDL) First Aid Certification Certified Public Accountant (CPA) Project Management Professional (PMP) Licensed Practical Nurse (LPN) Child Development Associate (CDA) Pediatric Advanced Life Support (PALS) Certified Nursing Assistant (CNA) Information Technology Infrastructure Library ARRT Certified Medical Assistant (MA) Emergency Medical Technician (EMT) Certified Information Systems Security Professional Cisco Certifed Network Associate (CCNA) Class A Commercial Drivers License (CDL-A) Certified Information Systems Auditor (CISA) Cisco Certified Network Professional (CCNP) Licensed Clinical Social Worker (LCSW) Certified Medical Assistant (CMA) Professional in Human Resources (PHR) Certified Internal Auditor (CIA) Source: JobsEQ Openings by Certifications, Capital Region December January Skills and occupations that are in demand today may not be in demand in the months or years ahead when a student finishes a training program or education. For that reason, long-term needs and potential gaps should be considered in conjunction with current needs. The chart below presents projected annual average job growth through 2026 by training required for occupations. The most rapid growth forecasts among these groups are for occupations that require a postgraduate degree, or a two-year degree or certificate. The latter group includes occupations such as nursing assistants; hairdressers, hairstylists, and cosmetologists; licensed practical and licensed vocational 62

63 nurses; and medical assistants. The top 30 detailed occupations 6 that employ the most people in the Capital Region make up 40% of all employment in the region (see table below). Twenty-two of those occupations typically require only a high school diploma or less to carry out the duties of the job. Two of the occupations require some college, no degree; two require a postsecondary non-degree award; and four require a bachelor s degree. Due to growth in industries that employ the top 30 occupations, 19,665 more positions are expected to be filled over the next ten years beginning with the third quarter of 2016 in the Capital Region. This accounts for 41% of the employment growth demand in the region over the next decade. In addition to the workers needed because industries are expanding, 63,214 positions will need to be filled in the top 30 occupations as current workers either retire or move to different occupations. Retail salespersons, cashiers, and office clerks, general make up the three largest detailed occupations. The two occupations with the highest location quotient are customer service representatives (1.26) and accountants and auditors (1.24). 6 Detailed occupations refer to those at the six-digit Standard Occupation Classification (SOC) level. 63

64 Current and Forecast Employment Growth for 30 Largest 6-Digit Standard Occupation Classification (SOC) Groups in the Capital Region SOC Title Empl. Current Four Quarters Ending with 2016q3 Avg. Annual Wages 1 Location Quotient Total Repl. Demand Forecast Over the Next 10 Years Total Growth Demand Avg. Annual Growth Percent Typical Entry Level Education Retail Salespersons 17,058 $24, , % Less than high school Cashiers 13,067 $19, , % Less than high school Office Clerks, General 12,977 $31, , % Customer Service Representatives 12,921 $34, , % High school diploma or equivalent High school diploma or equivalent Combined Food Preparation and Serving Workers, Including Fast Food 11,757 $19, , % Less than high school Registered Nurses 11,294 $64, , % Bachelor's degree Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 10,524 $36, , % High school diploma or equivalent Laborers and Freight, Stock, and Material Movers, Hand 10,460 $27, , % Less than high school Janitors and Cleaners, Except Maids and Housekeeping Cleaners 10,168 $23, , % Less than high school Waiters and Waitresses 9,644 $21, , % Less than high school General and Operations Managers 8,923 $123, , % Bachelor's degree Bookkeeping, Accounting, and Auditing Clerks 7,686 $39, % Some college, no degree Stock Clerks and Order Fillers 7435 $25, , % Less than high school Heavy and Tractor- Trailer Truck Drivers 6958 $42, , % Postsecondary nondegree award Personal Care Aides 6598 $18, % Less than high school First-Line Supervisors of Office and Administrative Support Workers 6546 $56, , % High school diploma or equivalent Accountants and Auditors 6431 $74, , % Bachelor's degree Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 5504 $72, , % First-Line Supervisors of Retail Sales Workers 5469 $45, , % Nursing Assistants 5445 $25, , % High school diploma or equivalent High school diploma or equivalent Postsecondary nondegree award Construction Laborers 5287 $28, , % Less than high school 64

65 Elementary School Teachers, Except Special Education 5140 $56, , % Bachelor's degree Maintenance and Repair Workers, General 5098 $39, , % Teacher Assistants 4773 $24, , % High school diploma or equivalent Some college, no degree Landscaping and Groundskeeping Workers 4728 $27, , % Less than high school Maids and Housekeeping Cleaners 4534 $21, , % Less than high school Receptionists and Information Clerks 4406 $28, , % Security Guards 4358 $28, % High school diploma or equivalent High school diploma or equivalent Cooks, Restaurant 4352 $22, , % Less than high school Childcare Workers 4308 $19, , % Source: JobsEQ 1. Occupation wages are as of 2015 and represent the average for all Covered Employment High school diploma or equivalent Occupations previously identified in the Occupation Index section of this report are presented in the table below along with typical education needed for entry. These occupations were ranked in an index to highlight those that pay better wages, have a strong employment growth forecast, typically require lower levels of education for typical entry, and are employed by a broad range of industries, including regional target industries, allowing for greater mobility. Nineteen of the top 25 occupations are attainable with a high school diploma or equivalent. Two of the top 25 typically require some college, no degree, while another two require a postsecondary non-degree award. Two manager occupations, general and operations managers and managers (all other), typically require a bachelor s degree. 65

66 SOC Title Empl Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products Top 25 Occupations, Occupation Index, 2016Qtr3-2026Qtr3 Current Four Quarters Ending with 2016q3 Avg. Annual Wages 1 Location Quotient Total Repl Demand Forecast Over the Next 10 Years Total Growth Demand Total Demand Avg. Annual Growth Percent 5,504 72, , , % Sales Representatives, Services, All Other 3,838 67, , % First-Line Supervisors of Non-Retail Sales Workers First-Line Supervisors of Office and Administrative Support Workers First-Line Supervisors of Mechanics, Installers, and Repairers Property, Real Estate, and Community Association Managers First-Line Supervisors of Retail Sales Workers Supervisors of Construction and Extraction Workers 1, , % 6,546 56, , , % 1,747 68, % 1, , % 5,469 45, , , % 2,488 58, % Computer User Support Specialists 2,555 51, % Insurance Sales Agents 2,566 60, , % Maintenance and Repair Workers, General First-Line Supervisors of Production and Operating Workers Claims Adjusters, Examiners, and Investigators Farmers, Ranchers, and Other Agricultural Managers 5,098 39, , , % 1,669 68, % 1,685 64, % , % Customer Service Representatives 12,921 34, ,485 1,555 5, % Industrial Machinery Mechanics 1,007 52, % Heavy and Tractor-Trailer Truck Drivers 6,958 42, , , % General and Operations Managers 8, , , , % Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 10,524 36, , , % Typical Education Needed for Entry High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent Some college, no degree High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent Postsecondary non-degree award Bachelor's degree High school diploma or equivalent 66

67 Executive Secretaries and Executive Administrative Assistants Licensed Practical and Licensed Vocational Nurses 3,474 52, % 2,608 40, , % Managers, All Other 3, , , , % Source: JobsEQ Note: Figures may not sum due to rounding. Note: Negative growth demand is not counted in total demand 1. Occupation wages are as of 2015 and represent the average for all Covered Employment High school diploma or equivalent Postsecondary non-degree award Bachelor's degree State of the Workforce Employment and Unemployment The Capital Region began to experience employment decline associated with the Great Recession in the second quarter of This decline advanced at an accelerated rate through the first quarter of 2010 and reached its trough in the third quarter of Employment grew at a steady pace through the third quarter of 2015, surpassing previous levels (first quarter of 2008) of peak employment in the second quarter of Employment has grown for 24 consecutive quarters, since the fourth quarter of The unemployment rate in the Capital Region has declined considerably since the end of the Great Recession, remaining well below the national unemployment rate and just below the state unemployment rate. 67

68 Unemployment peaked in the region at a seasonally adjusted rate of 8.1% in January 2010, and has fallen almost by half to 4.1% as of November In comparison, seasonally adjusted unemployment in November 2016 was 4.3% in Virginia and 5.0% in the nation in November Longer term unemployment has followed a similar pattern. Monthly final payments to those on unemployment insurance, a measure of people who have been looking for work and unemployed for 12 to 26 weeks, peaked due to the recession at 2,286 in September 2009 (not seasonally adjusted). Final payments have declined at a steady rate since 2009, falling below pre-recession levels in early Final payments stood at 328 in the Capital Region in November

69 Final Unemployment Insurance Payments (12-26 Weeks Unemployed) 2,500 2,000 1,500 1, Source: Virginia Employment Commission, Chmura The unemployment rate varies widely across the region. As of November 2016 the highest unemployment rate was in Richmond City (4.5%), followed by Charles City County (4.4%), which has seen a decline in the last year in healthcare and social assistance and construction jobs. In contrast, the unemployment rate is lowest in New Kent County (3.4%), which has seen growth over the year in construction over the year, and Hanover County (4.4%), which has seen growth over the year in the health care and social assistance and arts, entertainment, and recreation sectors. 69

70 The degree of underemployment also varies in the region. The percents shown in the table below indicate the extent to which the supply of high-skilled, medium-skilled, and low-skilled workers exceeds the demand. (Negative values indicate the supply of workers is lower than demand.) An underemployed worker is working in a position below his or her level of qualifications - for example, someone with a master's degree who is working as a retail salesperson. 7 Workers are classified into three categories according to their highest educational attainment: "high" - bachelor's degree or higher; "medium" - associate's degree or some college; and "low" - high school graduate or lower. The percents shown here are the percentage point differences between supply and demand - positive numbers indicate supply exceeds demand. The counties are ranked according to which have the largest surpluses of high-skilled workers. Hanover county ranks at the top with an estimated surplus of 8.8% of high-skilled workers. Chesterfield County (6.0%) and Henrico County (5.7%) also 7 Note, however, that this underemployment analysis compares and defines underemployment against the current national average. Therefore, what appears to be underemployment in some cases may reflect higher standards for occupations in certain regions. 70

71 rank highly. However, there is a potential under-supply of highly educated workers in Charles City County (- 0.7%) and Richmond City (-0.1%). Overall, the Capital Region has a potential 4.2% surplus of high-skilled workers. Underemployment in the Capital Region Region High Medium Low Hanover County 8.8% -2.6% -6.2% Chesterfield County 6.0% -1.7% -4.3% Henrico County 5.7% -3.7% -2.0% New Kent County 2.2% 0.6% -2.8% Powhatan County 1.8% -1.2% -0.7% Goochland County 0.1% -3.1% 3.0% Richmond City -0.1% -2.1% 2.2% Charles City County -0.7% -2.8% 3.5% Capital Region 4.2% -2.6% -1.6% Source: JobsEQ Characteristics and Trends in the Region s Available Workforce Labor market trends impact both the demand and supply sides of the workforce. On the demand side, the shifting industry mix in the Capital Region over time creates changes in the skills and occupations needed by businesses, with accompanying changes in workers wages. On the supply side, the regional workforce is aging, and net migration to the city and surrounding suburbs continues to grow the available labor force. Consistent with one of the broadest changes impacting the types of workforce skills needed in Virginia and the nation, employment in the Capital Region has been shifting from goods-producing to service-producing industries. The percentage of workers in the Capital Region creating goods (agriculture, forestry, and fisheries; construction; manufacturing; and mining, quarrying, and oil and gas extraction) has fallen from 16.1% in the first quarter of 2002 to 10.9% in the third quarter of The four-quarter moving average employment in goods-producing industries stood at 64,537 in the third quarter of In contrast, employment at service- 71

72 producing firms has increased from 83.9% to 88.9% over the same period, employing 524,431 as of the third quarter of In addition to requiring a different skill set, growing industries may not provide the same salaries and wages for low-to-middle skilled workers as the industries in decline. Overall, wages have increased at an average annual rate of 1.5% in the region over the last five years, equivalent to the 1.5% average annual growth in Virginia and below the 2.2% growth in the nation over the same period. While average wages in the Capital Region were on par with the state average leading up to the recession in 2007, wages fell in the region and the 72

73 gap between average wages in the Capital Region compared to state and national average wages has been gradually widening. In the recession period of , several closings and reductions in jobs in high paying industries negatively affected wages in the region. Wachovia Securities cut 2,000 jobs in 2007, and more than 4,000 more jobs were lost in the region due to closings of Circuit City Stores headquarters, semiconductor manufacturing company Qimonda AG, aluminum sheets manufacturer Reynolds, and LandAmerica Financial Group s headquarters. Many of the industries adding jobs over the past five years have average wages below the regional average, while some higher-paying industries have declined. The table shown below, which is ranked by employment changes over the last five years, shows administrative and support and waste management and remediation services (+9,104 jobs), health care and social assistance (+8,278), and accommodation and food services (+7,631) adding the largest number of jobs over this period. Average wages in those sectors are $34,743, $50,063, and $17,307, respectively, compared with a regional average wage of $50,699. In contrast, the information sector contracted by 1,565 jobs over the same period and public administration contracted by 124 jobs--wages in both three sectors are above the regional average. 73

74 Capital Region s Changing Industry Mix Ranked Based on Total Employment Change Over the Last Five Years NAICS Industry Employment 56 Administrative and Support and Waste Management and Remediation Services Current Four Quarters Ending with 2016q3 Avg. Annual Wages Total Change over the Last 5 Years Location Quotient Employment Historical Average Annual % Change in Employment 2011q3-2016q3 Capital Region Virginia 44,201 $34, , % 2.4% 62 Health Care and Social Assistance 80,949 $50, , % 2.0% 72 Accommodation and Food Services 45,675 $17, , % 2.6% 48 Transportation and Warehousing 22,156 $43, , % 2.2% 23 Construction 36,851 $51, , % 0.6% 52 Finance and Insurance 37,752 $84, , % 1.7% 44 Retail Trade 60,279 $27, , % 0.9% 54 Professional, Scientific, and Technical Services 41,246 $78, , % 0.8% 71 Arts, Entertainment, and Recreation 13,174 $19, , % 1.7% 81 Other Services (except Public Administration) 30,693 $30, , % 1.0% 53 Real Estate and Rental and Leasing 9,396 $52, , % 0.5% 42 Wholesale Trade 22,982 $66, , % -0.1% 61 Educational Services 52,540 $43, , % 0.0% 99 Unclassified 753 $41, n/a 29.9% 31 Manufacturing 25,971 $61, % 0.4% 22 Utilities 2,175 $79, % 0.0% 55 Management of Companies and Enterprises 21,165 $116, % 0.0% 11 Agriculture, Forestry, Fishing and Hunting 1,421 $26, % 1.3% 21 Mining, Quarrying, and Oil and Gas Extraction 295 $58, % -8.0% 92 Public Administration 32,280 $58, % 0.5% 51 Information 7,770 $60, , % -1.4% Source: JobsEQ Total - All Industries 589,721 $50, , % 1.1% Note: Figures may not sum due to rounding. Following another national and statewide trend, a large percentage of the workforce in the Capital Region is nearing retirement. More than 45% of the workforce is aged 45 through 64, with 16.9% in the 55 through 64 age cohort. 74

75 Capital Region Workforce by Age Cohort Four Quarters Ending 2014 Qtr % % % % % % % % Source: JobsEQ The percentage of the workforce near retirement in the region varies by industry. In the utilities sector, for example, 56% of the workforce is 45 through 64 years old, while that cohort accounts for 55% of the workforce in the manufacturing sector and 53% in public administration. In contrast 19% of the accommodation and food services and 28% of the arts, entertainment, and recreation sectors are between the ages of 45 and 64. Since 2010, every region of WDA 9 has experienced an increase in population and positive net migration, according to estimates from the Weldon Cooper Center for Public Service. In the table below, regions are sorted according to the highest net migration, where a positive number indicates that more people have been moving into the area (in-migration) than out of it (out-migration). Overall, the Capital Region s population has grown by 51,940 since 2010, including an estimated 28,500 moving into the region. Richmond City in particular has seen a large influx in migration, adding 8,276 people over this period, with the trend carrying over into the neighboring counties of Chesterfield (+8,195) and Henrico (+5,632). 75

76 Change since 2010 Census & Components of Change, July 2015 Estimates Region Births minus Deaths Net Migration Numeric Change Richmond City 5,448 8,276 13,724 Chesterfield County 9,019 8,195 17,214 Henrico County 8,150 5,632 13,782 Hanover County 457 3,693 4,150 New Kent County 217 1,822 2,039 Goochland County Powhatan County Charles City County Capital Region 23,440 28,500 51,940 Source: Weldon Cooper Center for Public Service Concurrent with the expanding population in the region, the Capital Region s labor force continues to expand even as growth has slowed moderately in the state. With an annual average population growth rate of 1.2% between 2005 and 2015, the Capital Region has outpaced Virginia s rate of 1.0% and the national rate of 0.8% over the same period. The chart below shows overall labor force change for the Capital Region and Virginia indexed to Leading up to the recession, the labor force in the region and in the state grew at roughly the same rate; but following the recession, labor force growth started to outpace the state. While the available labor force in the state has expanded about 30% between 1990 and 2016, growth has tapered off following the end of the recession. In contrast, the Capital Region labor force has continued expanding, growing 40% between 1990 and

77 Source: JobsEQ Improving employment among populations with barriers to employment could further expand the labor force and participation in the Capital Region. The percentage of populations with barriers to employment, as shown in the table below, is typically above levels in the state, except for populations born in a foreign country or that speak English less than very well. Labor force participation among the disabled in the Capital Region is 45.0%, higher than the 42.6% participation rate in Virginia. An estimated 9.6% of households in the region receive food stamps, on par with 9.5% in Virginia. Similarly, the percent of disconnected youth in the Capital Region (2.3%) is slightly higher than that in the state (2.2%). Select Demographic Data, Including Populations with Barriers to Employment Percent Capital Region Virginia Capital Region Value Virginia Population 1 174,194 8,382,993 Population Annual Average Growth 1 1.2% 1.0% 12,299 80,589 Labor Force Participation Rate and Size (civilian population 16 years and over) % 64.8% 553,749 4,229,948 77

78 Select Demographic Data, Including Populations with Barriers to Employment Percent Capital Region Virginia Capital Region Value Virginia Armed Forces Labor Force 2 0.2% 1.7% 1, ,658 Veterans, Age % 9.1% 45, ,379 Poverty Level (of all people) % 11.5% 117, ,237 Households Receiving Food Stamps 2 9.6% 9.5% 37, ,122 Disconnected Youth 2,3 2.3% 2.2% 1,351 9,760 Children in Single Parent Families (% of all children) % 31.3% 80, ,396 Disabled, Age % 9.1% 60, ,216 Disabled, Age 18-64, Labor Force Participation Rate and Size % 42.6% 27, ,829 Foreign Born 2 8.2% 11.6% 83, ,484 Speak English Less Than Very Well (population 5 yrs and over) 2 4.3% 5.6% 41, ,036 Source: JobsEQ 1, Census 2015, annual average growth rate since , ACS , Disconnected Youth are year olds who are (1) not in school, (2) not high school graduates, and (3) either unemployed or not in the labor force. The percentage of individuals age 18 through 64 who are disabled in the Capital Region (9.3%) is slightly higher than that of the state (9.1%) based on the ACS, As shown in the map below, the concentration of disabled individuals varies by county. The largest percentages are in Richmond City (14.0%) and Charles City County (20.2%). 78

79 Though the percent of disconnected youth is 2.3% in the Capital Region, the percentage ranges across the region. The percentage of year olds who are not in school, not high school graduates, and either unemployed or not in the labor force ranges from 0.5% in Hanover County and 0.6% in Charles City County up to 5.7% in Powhatan County and 6.0% in Richmond City. The percentage of veterans age also varies across the region. The largest concentrations of veterans are in the southeast counties in the region, with 9.2% in Charles City County and 10.0% in New Kent County. The map below shows the concentration of veterans by county in the region. 79

80 Single-parent households include male householders, no wife present and female householders, no husband present, both in households with one or more people under 18 years. The percentage ranges shown in the map below are a share of all households with one or more people under 18 years, based on ACS Single-parent households are particularly concentrated in Richmond City (64.4%), followed by Charles City County (46.3%), and Henrico County (36.3%). 80

81 Educational and Skill Levels The Capital Region s working-age population is generally higher educated when compared with the state and nation. Almost thirty-nine percent of individuals aged 25 through 64 in the region have a bachelor s degree or higher compared to 37.9% in the state and 30.9% in the nation. At the opposite end of the spectrum, 9.8% of the Capital Region population aged 25 through 64 have no high school degree, compared to 9.9% in Virginia. The percent with an associate s degree in the Capital Region (7.4%) is slightly below the percentage in Virginia (7.4%). Educational Attainment, Age Percent Value Capital Region Virginia USA Capital Region Virginia USA No High School Diploma 9.8% 9.9% 12.0% 54, ,874 19,939,890 High School Graduate 22.9% 23.9% 26.5% 128,724 1,062,241 44,000,387 Some College, No Degree 21.1% 20.6% 21.9% 118, ,402 36,270,359 Associate's Degree 7.4% 7.7% 8.7% 41, ,942 14,487,486 Bachelor's Degree 24.7% 22.3% 19.7% 138, ,434 32,646,533 Postgraduate Degree 14.1% 15.5% 11.2% 78, ,184 18,533,513 Source: ACS & JobsEQ Educational attainment varies by race and ethnicity in the Capital Region. Sixty percent of Asian residents age 25 and older have earned a bachelor s degree of higher, compared with 43% of white alone, and 21% of black or African American alone. By ethnicity, 19% of the Hispanic or Latino population has a bachelor s degree or higher, compared with 44% of white, not Hispanic or Latino. Educational Attainment, Age 25 and Older, by Race and Ethnicity Less Than High School Diploma High School Graduate Some College or Associate's Degree Bachelor's Degree or Higher White Alone 8% 23% 27% 43% Black or African American Alone 16% 30% 32% 21% Asian Alone 12% 15% 14% 60% American Indian and Alaska Native Alone 20% 32% 32% 16% Native Hawaiian and Other Pacific Islander Alone 0% 16% 50% 34% Some Other Race Alone 39% 26% 18% 17% Two or More Races 13% 19% 36% 32% 81

82 White Alone, Not Hispanic or Latino 7% 23% 27% 44% Hispanic or Latino 38% 24% 20% 19% Source: ACS Educational attainment among those with a disability also varies across the region. The table below presents data where available for the counties of Chesterfield, Hanover, Henrico, the City of Richmond, and the Richmond metropolitan statistical area (MSA). In Richmond City, 31% of those with a disability have less than a high school diploma, compared with 18.5% in Henrico County and 19.5% in Chesterfield County. Similarly, about 20% of those with a disability in Chesterfield and Henrico have a bachelor s degree or higher, compared with 17.5% in Hanover County and 15.6% in Richmond City. Across the Richmond MSA, 16.9% of those with a disability have a bachelor s degree or higher, compared with 37.4% among those with no disability in the metro area. Educational Attainment, Age 25 and Older, by Disability Status Chesterfield County Hanover County Henrico County Richmond City Richmond MSA With a Disability Less Than High School Diploma 19.5% 20.9% 18.5% 31.0% 25.1% High School Graduate 32.3% 35.5% 32.3% 29.3% 32.2% Some College or Associate's Degree 27.2% 26.1% 29.2% 24.1% 25.9% Bachelor's Degree or Higher 20.9% 17.5% 20.0% 15.6% 16.9% No Disability Less Than High School Diploma 7.4% 5.8% 7.8% 13.0% 9.2% High School Graduate 23.0% 26.4% 21.3% 21.3% 25.0% Some College or Associate's Degree 30.4% 29.3% 26.8% 24.2% 28.4% Bachelor's Degree or Higher 39.3% 38.5% 44.0% 41.5% 37.4% Source: ACS

83 Capital Region Workforce Area Local Plan Contents List of Required Attachments to Plan a. Current CLEO Consortium Agreement b. Current CLEO-Local WDB Agreement c. Current Local WDB organizational chart (identify board oversight and program administration) d. Copies of executed cooperative agreements e. Eligible Training Provider Policy (including process to evaluate and recertify providers) f. Individual Training Account Policy g. On-the-Job Training Policy h. Customized Training Policy i. Priority of Service Policy j. Monitoring Policy 83

84 Capital Region Workforce Area Local Plan Contents k. Equal Opportunity (EO) Policy l. Grievance Policy m. Plan Signatures and Adherence Statement 84

85 CHIEF LOCAL ELECTED OFFICIALS AGREEMENT By and between the City of RICHMOND and the Counties of CHARLES CITY, CHESTERFIELD, GOOCHLAND, HANOVER, HENRICO, NEW KENT, AND POWHATAN, VIRGINIA for the CAPITAL REGION WORKFORCE PARTNERSHIP This Agreement is executed by and among the City of Richmond, Virginia and the counties of Charles City, Chesterfield, Goochland, Hanover, Henrico, New Kent and Powhatan, Virginia (hereinafter, the "Member Jurisdictions"). WHEREAS, the Workforce Innovation and Opportunity Act of 2014 (Public Law ; hereinafter the "Act"), provides federal funding to states for the delivery of workforce training and other services; and WHEREAS, the Act requires that the Governor of a state designate local workforce development areas to organize, direct and oversee the delivery of such services within the state; and WHEREAS, the Act requires that the Governor approve a local workforce development area designation request from local areas that existed as such under the Workforce Investment Act of 1998 and the member jurisdictions have each made known their desire for such designation; and WHEREAS, Va. Code provides that local governments may enter into agreements for joint or cooperative exercise of any power, privilege or authority which each is capable of exercising individually; and WHEREAS, the Member Jurisdictions wish to jointly perform the responsibilities prescribed for them individually under the Act; and WHEREAS, creation of the workforce development area to be known as the Capital Region Workforce Partnership (hereinafter, the "Consortium") will permit the delivery and oversight of workforce services in a manner that will ensure accountability to local elected officials of the Member Jurisdictions. NOW, THEREFORE, the parties do mutually covenant and agree as follows: 85

86 Article I Section 1. Consortium Membership. The Consortium shall be comprised of the Member Jurisdictions. Subject to the approval of the Governor of Virginia, these jurisdictions shall also comprise the boundaries of the workforce development area required by the Act, Article II Section 1. Consortium Board Membership. The Member Jurisdictions shall establish a Consortium Board comprised of a representative from each Member Jurisdiction to perform the duties of the chief elected official enumerated in the Act. The Member Jurisdiction's representative shall be an elected official. Each jurisdiction may also designate an alternate representative. Alternates may participate in discussion but vote on matters only if the elected official is not present. Each Member Jurisdiction shall determine the length of term for its representative and shall fill any vacancy. Section 2. Consortium Board Duties. The Consortium Board shall do the following: 1. Collectively perform the functions of the chief elected officials of the Member Jurisdictions as permitted in the Act. 2. Appoint the members of the Regional Workforce Development Board as provided in Article III of this Agreement. 3. Execute an agreement with the Regional Workforce Development Board (Board) to specify how the functions of the Consortium and Board identified in Section 106(d) of the Act will be jointly executed. 4. Establish and revisit the vision and priorities of the Consortium in conjunction with the Regional Workforce Development Board. 5. Develop the region's strategic plan as the Local Plan under the Act for Member Jurisdictions in partnership with the Regional Workforce Development Board. The plan shall be submitted to the Virginia Board for Workforce Development (hereinafter, the "State Board") in the manner prescribed by the state board. 6. Review and approve the budget developed by the Regional Workforce Development Board. 7. Work with the Regional Workforce Development Board and Governor of Virginia to reach agreement on local performance measures. 8. Select in conjunction with the Board a one-stop operator(s), evaluate performance of one-stop operator(s), and terminate for cause their service as provided in Section 121(d) of the Act. Section 3. Consortium Board Meetings and Officers. The Consortium Board shall meet as determined by its members. The Consortium Board shall elect from its membership a chairperson, a vicechairperson and other officers as may be provided in any adopted by-laws to serve for a term of one year or until a successor is elected and qualified. The Consortium Board shall fill any vacancies in officer 86

87 positions by election for the remainder of the unexpired term. The chairperson shall appoint a board clerk. Section 4. Consortium Board By-Laws. The Consortium Board may adopt operational and procedural by-laws consistent with this Agreement, applicable federal and state laws, and rules and regulations pursuant thereto. Section 5. Roberts Rules of Order. Roberts Rules of Order (revised) shall govern the proceedings of the Consortium Board insofar as they do not conflict with applicable law or administrative rules or by-laws duly adopted by the Consortium Board. Section 6. Quorum and Weighted Voting. A simple majority of the representatives of Member Jurisdictions (5 jurisdictions) shall constitute a quorum. The Consortium Board shall use a weighted system of voting to conduct business. Weighting shall be based on the following methodology, which shall be annualized at the start of each fiscal year by staff to determine the weighted number of votes allotted to each jurisdiction in that year for motions that do not pass on a unanimous basis: One vote for every $200,000 of federal funding allocated to each jurisdiction under the Act, rounded to the next highest whole number; or 1 vote if threshold not met) Section 7. Consortium Board Staff. The Consortium Board shall determine its staffing needs and shall be responsible for determining the duties and responsibilities of any staff appointed or hired. Staffing shall be provided by the fiscal agent as so designated in this agreement unless an alternative arrangement is mutually agreed upon. Article III Section 1. Regional Workforce Development Board Membership. The Consortium Board shall appoint the members of the Regional Workforce Development Board in accordance with the criteria in the Act. The Consortium Board shall make every effort to appoint creative and visionary individuals to the Regional Workforce Development Board. Each Member Jurisdiction will coordinate on appointments to ensure appropriate representation of the Member Jurisdictions, the regional labor market, and the mandatory partner programs prescribed by the Act. In making appointments, the Consortium Board shall ensure that resources and programs, although regional in nature, will address the critical needs of each Member Jurisdiction. 87

88 The Regional Workforce Development Board shall include: 1. A majority (at least 51%), who are from the business community and that are: a. The owner, chief executive or operating officer with optimum policy making or hiring authority, b. From a business that provides employment opportunities (employees other than the owner), and c. From a business that represents in-demand industry sectors or occupations, 2. 20% from organized labor, apprenticeship, community-based organizations or organizations with experience serving youth; with at least 2 in this category being from organized labor. 3. At least 2 members from economic or community development, 4. A state employment service representative, 5. A representative from Vocational Rehabilitation, 6. A representative from local community colleges (per state policy), and 7. Representatives from Adult Education and Secondary Career and Technical Education 8. Additional members may also be appointed at the discretion of the Consortium Board. Section 2. Regional Workforce Development Board Duties. The Regional Workforce Development Board shall execute the duties as enumerated in the Act, State Code and as further articulated in the Consortium Board Workforce Development Board agreement to be executed following certification of the Workforce Development Board and election of its officers. That agreement shall be reviewed at least every other year to determine if modifications are necessary, or sooner based upon need. There shall be one committee to the Board that in part focuses on needs and interests of the youth population served in the regional area, aged 14-24, as defined in the Act. This committee shall be described in further detail in the Consortium Board Local Workforce Development Board agreement that is subsequently executed. Article IV Section 1. Allocation of Funds. Funds allocated under the Act shall be expended for the mutual benefit of residents of the Member Jurisdictions without regard to place of residence, except as may be determined by an allocation formula adopted by the Consortium Board or as required by applicable law, regulation or the approved Regional Strategic Plan. The chief administrative officers or their designees may execute an Operational Agreement to specify the use of general funds that each Member Jurisdiction may provide for services and administration under the Act. Section 2. Designation of Grant Recipient and Fiscal Agent. The Member Jurisdictions designate the County of Henrico as the grant recipient and fiscal agent for all funds awarded by the federal 88

89 government or the Commonwealth of Virginia to the Member Jurisdictions for workforce development activities, including Title I funds provided by the Act. Section 3. Responsibility for Funds. The Member Jurisdictions shall be responsible for the services provided through state or federal funds awarded to them under the Act. Repayment of any costs determined as disallowed to federal or state grants shall be made by each jurisdiction based upon the Member Jurisdiction s pro rata share of funds provided under the Act. Section 4. Return of Local Funds. If Member Jurisdictions contribute funds, assets or resources to the programs of the Regional Workforce Development Board other than funds obtained under the Act, each shall be entitled to the return of the pro rata portion of any remaining funds, assets and resources under the control of the Regional Workforce Development Board in the event of the termination or expiration of this Agreement. Section 5. Effective Date of Agreement. This Agreement shall be effective upon approval by the governing bodies of all of the Member Jurisdictions. This Agreement shall repeal and supersede any and all prior written or oral agreements. Section 6. Amendments. The Member Jurisdictions may amend this Agreement upon approval of a written amendment by all of their governing bodies and execution by the chief elected officials thereof. Section 7. Dissolution of Consortium. This Agreement may be terminated and the Consortium dissolved upon the occurrence of any of the following events: 1. The Governor's re-designation of the regional workforce development area that excludes any of the Member Jurisdictions, or includes any localities that are not Member Jurisdictions 2. The cessation of funding under the Act 3. Ratification of an agreement which supersedes this Agreement by all Member Jurisdictions. If the new agreement alters the boundaries of the regional workforce development area, it shall not become effective prior to approval by the Governor of Virginia. Section 8. Implementation of Agreement. This Agreement shall be implemented to ensure that the new Consortium Board and Regional Workforce Development Board are in place and the designation of onestops and one-stop operators is complete by July 1, 2015; and as subsequently required by provisions of the Act or the Commonwealth of Virginia. Section 8. Audits. Funds received by the local area under the Act shall be independently audited on an annual basis. 89

90 CAPITAL REGION WORKFORCE AREA AGREEMENT BETWEEN THE CAPITAL REGION WORKFORCE PARTNERSHHIP AND THE CAPITAL REGION WORKFORCE DEVELOPMENT BOARD This Agreement is made and entered into by and between the Local Elected Officials of the Capital Region Workforce Development Area, herein after referred to as the "Partnership" representing the counties of Charles City, Chesterfield, Goochland, Hanover, Henrico, New Kent and Powhatan, and the City of Richmond; and the Capital Region Workforce Development Board, herein after referred to as "WDB". WITNESSETH WHEREAS, This Agreement is entered into pursuant to the provisions of the Workforce Innovation and Opportunity Act of 2014; hereinafter referred to as the "Act" and, WHEREAS, It is the purpose of the Act to provide federal funds for career and training services, through statewide and local workforce systems, that increase the employment, retention, and earnings of participants, and increase occupational skills attainment by participants, and as a result, improve the quality of the workforce, reduce welfare dependency and enhance the productivity and competitiveness of the nation; and WHEREAS, Pursuant to the Workforce Innovation and Opportunity Act, the Partnership is to appoint members to the Workforce Development Board, and WHEREAS, the Partnership consists of the elected officials from the eight member jurisdictions; and WHEREAS, The Partnership was constituted to fulfill the responsibilities of and to function as the "chief elected official" of the participating "units of local government" as those terms are used under the Act, and 90

91 WHEREAS, The Act and Virginia Policy, stipulate the required composition of the Workforce Development Board, and the process for appointing the Board s membership, and WHEREAS, the Partnership and the WDB are designated as the policy making bodies for the Capital Region Workforce Investment Area to the extent that such policies recognize and do not conflict with state or federal law and policies, and the terms of this Agreement, and WHEREAS, this Agreement is required under federal law to set forth the roles and responsibilities of the Partnership and WDB, jointly and as individual units; NOW, THEREFORE, IT IS AGREED AS FOLLOWS: ARTICLE I WDB and Partnership Joint Responsibilities Notwithstanding the below, the WDB and Partnership shall execute any shared responsibilities enumerated in the Workforce Innovation and Opportunity. Specifically note are the following, which is not all inclusive: 1.1 Regional Planning The WDB and the Partnership are responsible for articulating the vision of the workforce investment system that will best meet the needs of the Capital Region s labor market both now and in the future and are responsible for using their collective influence to bring the vision to fruition. This means clearly defining the system and adopting continuous improvement strategies to improve, enhance or revamp the system into an effective recognized seamless service delivery system that supports economic development, the business community and the labor force. In carrying out their planning responsibilities, the WDB and the Partnership shall establish the region's strategic plan, ensuring maximum participation from the public and stakeholders. Any policies and procedures developed to support the workforce system and its goals will be disseminated to stakeholders and others that can and will benefit from their activities, including employers and job seekers. The WDB and the Partnership shall separately and collaboratively, seek opportunities to secure funds beyond those provided by the Act as appropriate and in alignment with the region s plan to bring their shared vision and workforce development system to fruition. 1.2 Provide Representation to serve on the joint WDB and Partnership Submit any comments Finance by Committee 3/2/17 to dav113@henrico.us and any other 91committees where joint representation is

92 deemed to further the collaborative efforts of the region s workforce system governance. 1.3 Coordinate Workforce Development Activities with Local and Regional Economic Development Activities The WDB and the Partnership shall develop strategies and action plans to align workforce development activities with those of the local and regional economic development agencies/organizations including entering into a Memorandum of Understanding with each economic development agency in the region. 1.4 Designation and Certification of the One Stop Operator(s) and Service Providers The WDB and Partnership shall select a One-Stop Operator(s) and Title I service providers for the Capital Region Workforce Area consistent with federal law and any state policies. If the operator is also not the provider of career services, the WDB and Partnership shall jointly select the service provider though competitive procurement. 1.5 Negotiate Performance Standards for the Region The WDB, with the concurrence of the Partnership, shall negotiate the any required performance standards with the state as may be required under the Act or any state directives. The Partnership shall be responsible for signing off on the final performance standards negotiated with the Governor's Representative (VCCS). ARTICLE II Duties of the WDB 2.1 Promote Employer Involvement in the Workforce System The WDB shall promote the participation of private sector employers in the Workforce System and ensure effective connecting, brokering, and coaching activities through intermediaries including one-stop operators and other organizations to assist employers in meeting their skills and hiring needs. The WDB shall ensure the effective provision of connecting, coaching, and brokering economic development and workforce development activities within the Capital Region. 2.2 The WDB shall prepare and maintain By-laws that allow for its efficient conduct of business and that are consistent with this Agreement. 92 A copy of the Bylaws shall be made available to the Partnership for review.

93 2.2 Manage the List of Eligible Training Provider Process The WDB shall review and approve applications from eligible training providers in the region and beyond who seek to list programs on the state eligible training provider list through policies and procedure developed under the Act and in accordance with state and local parameters. The WDB shall also notify "eligible" training providers of the requirements for continued eligibility to remain on the Statewide Eligible Training Provider List. 2.3 Workforce System Policies and Procedures The WDB shall be responsible for developing and enforcing policies and procedures required by the Act, State Policy, or policies and procedures the WDB deems necessary and appropriate to guide the Capital Region's workforce system. The exception is the development of fiscal policies and procedures which shall be the responsibility of the Partnership and the joint Finance Committee of the WDB and Partnership pursuant to this Agreement. The WDB shall develop and manage a system to hear and resolve complaints and grievances brought by participants, vendors, and other interested parties as required by the Act and by any applicable state policies. 2.4 Oversight and Monitoring The WDB shall be responsible for conducting oversight of the programs and activities carried out by the one-stop delivery operator(s), by any contractor or grantee of the WDB; as well as the Memoranda of Understanding between the WDB and the Mandated and Non-- Mandated Partners. The WDB shall submit periodic reports to the Partnership related to the monitoring and oversight activities of the WDB. 2.5 Employment Statistics System The WDB shall assist the Governor in developing the statewide employment statistics system described in the Act. 2.6 Sunshine Provisions The WDB shall comply with the provisions of the Sunshine Law as described in the Act. The Sunshine provisions require the WDB to make available to the public, on a regular basis through open meetings, information regarding the activities of the local board, including information regarding the local plan prior to submission of the plan to the state, and regarding 93 membership, the designation and certification of one stop operators, and

94 the award of grants or contracts to eligible providers of youth activities, and on request, minutes of formal meetings of the WDB. 2.7 Conflict of Interest WDB will ensure that its members comply with the Conflict of Interest provisions as described in the Act. A WDB member may not vote on a matter under consideration by the WDB regarding the provision of services by such member or by an entity that such member represents; or that would provide direct financial benefit to such member or the immediate family of such member; or engage in any other activity determined by the Governor to constitute a conflict of interest as may be specified in the State Plan for Workforce Development in Virginia. 2.9 The WDB's Budget The WDB shall develop an annual budget for the Capital Region Workforce Investment System, subject to the approval of the Partnership. ARTICLE III Partnership Responsibilities In accordance with the Act, the Partnership shall be responsible for: 3.1 Appointing and re-appointing members of the WDB as necessary and in accordance with the Act and any applicable state policies. 3.2 Designating a Partnership member jurisdiction to serve as the grant recipient and fiscal agent for the funds received by the Capital Region under the Act. The grant recipient/fiscal agent shall be responsible for disbursement of the Act's funds for Workforce Innovation and Opportunity Activities at the direction of the WDB and in compliance with all applicable local, state and federal laws and regulations; and 3.3 Assuming liability for any misuse of the grant funds allocated to the local area under the Act. 3.4 Assume responsibility for promulgating any fiscal policies and procedures for the Capital Region. Such policies and procedures shall be brought before the joint finance committee of the WDB and Partnership for review and approval. 3.5 The Partnership shall comply with the provisions of the Sunshine Law as described in the Act. The Sunshine provisions require the Partnership to make available to the public, on a regular basis through open meetings, information regarding the activities of the Partnership, including information regarding the local plan prior to submission of the plan to the state, and regarding membership, the designation and certification of one stop operators, Submit any comments and the by award 3/2/17 to of dav113@henrico.us grants or contracts 94to eligible providers of youth activities, and

95 on request, minutes of formal meetings of the Partnership. 3.6 The Partnership shall ensure that its members comply with the Conflict of Interest provisions as described in Section 117(g) of the Act. A Partnership member may not vote on a matter under consideration by the Partnership regarding the provision of services by such member or by an entity that such member represents; or that would provide direct financial benefit to such member or the immediate family of such member; or engage in any other activity determined by the Governor to constitute a conflict of interest as may be specified in the State Plan for Workforce Development in Virginia. 3.7 Contracts exceeding $50,000 that are not included in any duly approved budget shall require Partnership approval upon quorum majority recommendation by the WDB. A contract shall be deemed to be included in the approved budget if: (a) it falls within one of the itemized categories for expenditures by the WDB contained in the approved budget; and (b) the cost of the contract does not exceed the sum of (i) the budget for the applicable category of expenditures in the approved budget. 4.1 Legal Organizational Status ARTICLE IV Governance The WDB and the Partnership will determine by mutual agreement any legal structure of the WDB. 4.2 Meetings The WDB shall make available to the public on a regular basis, through open meetings, information regarding the activities of the Board including information regarding the local plan, membership, designation and certification of One-Stop Operator(s), and the award of grants or contracts to eligible providers of youth activities on request and in minutes of formal meetings of the Board, subject to the provisions of the Virginia Freedom of Information Act. In compliance with the Sunshine provisions of the Act, the WDB and any subcommittee authorized to take action on behalf of the WDB, must take official action and engage in deliberations only at meetings open to the public. "Official Action" includes making recommendations, establishing policy, making decisions and/or voting on matters of WDB business. "Deliberations" are discussions of WDB business necessary in order to reach decisions. All votes must be publicly cast and roll call votes must be recorded. Ensure that all meetings are held in accessible locations for the disabled and that all information is provided in accessible and alternate formats. 95

96 Give public notice of the WDB's first public meeting of each calendar or fiscal year, not less than 15 days before the meeting and also at that time give public notice of the anticipated schedule of the WDB's remaining regular meetings for the remainder of the program or fiscal year. 24 hour public notice is required for all special or rescheduled meetings. 4.3 Dispute Resolution Process In the event that an impasse should arise between the WDB and the Partnership, the Fiscal Agent and/ or Administrative Entity regarding the terms and conditions, the performance or administration of the system or this Agreement, the parties agree to attempt to resolve disputes by mutually satisfactory negotiations in lieu of litigation. Continued performance during disputes is assured. This clause does not preclude consideration of law questions in connection with decisions made provided that nothing in the Agreement is construed as making final the decisions of any administrative official, representative, WDB or the Partnership on a question of law. Article V. Budget and Administration 5.1 Grant Recipient and Fiscal Agent Henrico County is the designated Grant Recipient and Fiscal Agent for the Capital Region Workforce Investment Area. As such Henrico County is responsible for disbursing the funds, and for reporting the financial status of the funds received monthly to the Partnership and the WDB. In accordance with the Partnership Agreement, liability for all funds rests with the localities and is shared as stipulated in the Partnership Agreement. 5.2 Budget The WDB, in negotiation with the Partnership, shall develop a budget for the purpose of carrying out the obligations and duties of the WDB under the Act. The budget developed should ensure that funds are applied in ways that ensure that citizens across all jurisdictions have access to services for businesses and job seekers that will improve the quality of life across the region and be of benefit to employers and job seekers alike. The budget must reflect the cost of all staff, contracts, workforce center sites, and all planned programs and services that support the workforce development system as defined in the 96 strategic plan by the Partnership and the WDB.

97 The budget may be modified from time to time as necessary and appropriate to continue meeting the objectives established by the Partnership and the WDB. The budget shall be established and approved prior to the start of each program year. All modifications and budget approvals require recommendation from the joint Finance Committee of the Partnership and WDB, and require approval by the Partnership. 5.3 Staffing Funds allocated to the Capital Region Workforce Investment Area will be used to support staffing of the WDB, One-Stop Operations and Programs; and the fiscal agent and Partnership. At the time of adoption of this Agreement, staffing for both the Partnership and WDB is provided by the fiscal agent. ARTICLE VI Amendment and T ermination 6.1 Amendment and Termination This Agreement may be amended or terminated by either party providing 60 days written notice to the other. 6.2 Amendment Process Any modifications to this Agreement to be valid must be in writing, signed and dated under the conditions agreed upon by all of the parties, and attached to the original Agreement. If any provision of the Agreement is held invalid, the remainder of the Agreement shall not be affected. Article VII Certification of Agreement This Agreement is effective upon adoption by a recorded vote of a majority of the Partnership members and a majority of the WDB members. 97

98 Attachment C Local Area Organizational Chart Capital Region Workforce Partnership (Consortium of Local Elected Officials) Capital Region Workforce Development Board Staff to CRWP and WDB Employees of Henrico County ResCare (Competitively procured contracted provider of adult and dislocated worker services) Ross (Competitively procured contracted provider of out-ofschool youth services) Born 2 Be Great (Competitively procured contracted provider of in-school youth services) 98

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