How Michigan s next governor can create opportunities for workers and businesses in a changing economy through a skills-based labor market

Transcription

1 How Michigan s next governor can create opportunities for workers and businesses in a changing economy through a skills-based labor market

2 CREATING OPPORTUNITIES FOR WORKERS AND BUSINESSES IN A CHANGING ECONOMY American workers need new skills for the new economy Technological change and automation are reshaping the economic landscape and affecting the skills needed to compete for good jobs. Today, there are more unfilled jobs than Americans looking for work. By focusing on skills, America can help workers access new opportunities while also bringing more people into the labor force. Preparing the workforce of the future States can modernize their labor markets to help workers develop the skills to compete and businesses find the workers with the right skills. Proportion of jobs at high risk of being impacted by automation 30% 38% Source: BLS data, Frey & Osborne likelihood of automation. 'High-risk' defined as >=90% likelihood. Sources: BLS data; McKinsey Report, Jobs Lost, Jobs Gained (2017);Manpower Group's 2016 Talent Shortage To prepare the economy for the jobs of the future, every sector needs to play a role. WORKERS Need new skills to access new opportunities EDUCATORS Need to prepare every worker for 21st century jobs BUSINESSES Need skilled workers to innovate and grow 1

3 PREPARE MICHIGANDERS WITH THE SKILLS THEY NEED FOR GOOD JOBS IN THE NEW ECONOMY Creating opportunity for Michiganders in an automated economy With technological change accelerating, many current jobs across Michigan will be eliminated, changed or replaced by new opportunities that require new skills. Michigan businesses need workers with the right skills, and workers need new opportunities to support their families. Michigan can connect its workers especially the nearly seven in ten without a college degree to training and good jobs in growing industries, particularly healthcare and education. Between now and 2026, over 40% of Michigan s net new jobs will be in: Health Care: 113K Education: 27K Source: Michigan DTMB, Georgetown University Center on Education and the Workforce Unemployment, income, and opportunity vary across Michigan. Michigan can create new opportunity by helping workers develop skills across the state. Source: BLS data The opportunity for Michigan s labor market: NET NEW JOBS IN THE NEXT DECADE OF NEW JOB OPENINGS WILL REQUIRE MIDDLE- SKILL WORKERS MICHIGAN JOBS AT RISK OF CHANGE DUE TO AUTOMATION MORE MIDDLE-SKILL JOBS THAN MIDDLE-SKILL WORKERS TODAY Source: Michigan Department Technology, Management, and Budget, Frey and Osborne, the likelihood of automation, National Skills Coalition, BLS data 2

4 REIMAGINING THE WORKFORCE OF THE FUTURE Proposal: Building a skills-based labor market To position the economy for success in the 21st century, we need to wholly rethink the way our labor market works. A skills-based labor market will make it easier for job-seekers of all kinds to acquire skills to compete for in-demand jobs, and agility to respond to changing demands. PILLARS OF A SKILLS-BASED LABOR MARKET REWARD SKILLS, NOT DEGREES People should be rewarded based on their ability to do the work their skills rather than degrees. VALUE ALL PATHWAYS People need multiple viable pathways into a career. A four-year degree isn t the only path to success. SUPPORT LIFELONG LEARNING People need training throughout their careers to adapt to trends we cannot yet anticipate. CREATING A SKILLS-BASED LABOR MARKET WILL: Deepen the talent pool for employers Increase diversity in the workplace Sharpen our competitive edge Unlock prosperity for everyone 3

5 A MODERN LABOR MARKET IN ACTION Case Study: Skillful Colorado In Colorado, Skillful provides the infrastructure for a skills-based labor market that serves job-seekers and businesses. Key initiatives Show public and private employers how skills-based practices strengthen applicant pool and reduce time to hire Help job seekers and employers identify best training programs by comparing ROI Build a state network of elite career coaches BUILDING BETTER PATHWAYS IN COLORADO Skillful is on the path to creating 50K better pathways for job seekers by In FY2018, it has created: 2,764 BETTER PATHWAYS for job seekers 20 of the state s largest EMPLOYERS actively engaged 4,966 EMPLOYERS Learned about skills-based hiring 200+ MEMBERS of the coaching community of practice BUILDING A NATIONAL MOVEMENT Skillful State Network: A nonpartisan group of 20 governors learning how states can modernize their labor markets. 4

6 BUILDING THE LABOR MARKET OF THE FUTURE What a governor can do to create a skills-based labor market For too long, workforce development efforts have failed to bring more than incremental improvements. By taking personal leadership within state government and across key stakeholders in the private sector, governors can deliver real results for workers and businesses. FOSTER COLLABORATION Maximize efforts by aligning businesses, educators, coaches, workers, and government to build a more skilled workforce. FUND WHAT WORKS Evaluate training programs based on outcomes: their ability to create good jobs. SKILLS-BASED LABOR MARKET HARNESS DATA, EMBRACE TECHNOLOGY Empower the labor market with user-friendly data platforms. Deliver training to more people with new technologies. USE POLICY LEVERS Identify state-specific policy levers that support workers educators, and businesses.* * See next page for more policy ideas 5

7 UNLOCK BETTER JOBS FOR MICHIGAN WORKERS, AND GOOD WORKERS FOR MICHIGAN BUSINESSES Technology is changing the economy. Workers are feeling stuck, and businesses are on the hunt for skilled workers. What can a governor do? The following policy ideas outline a robust platform to build a labor market that will strengthen Michigan s economy in the 21st century. BETTER JOBS FOR MICHIGANDERS WORKERS Need new skills to access new opportunities Support workers seeking new opportunities. Expand portable benefits; improve SNAP and TANF incentives. Expand access to lifelong, quality training. Invest in apprenticeships and flexible training models. Remove barriers to employment. Reform noncompetes and occupational licensing and modernize paid leave. EDUCATORS Need to prepare every worker for 21st century jobs Fund quality training. Provide new financing for training programs proven to successfully create new opportunities for workers. Align curriculum development with employer needs. Champion partnerships with businesses to align curriculum and training with the skills employers will need in the future. BUSINESSES Need skilled workers to innovate and grow Replace tax incentives with talent incentives. Attract businesses to Michigan by developing a workforce equipped with the skills employers need to grow their business. Adopt skills-based hiring practices. Prioritize skills over credentials when hiring for state jobs. 6