Workforce Solutions East Texas Board. Local Workforce Development Board Plan Program Years

Workforce Solutions East Texas Board Local Workforce Development Board Plan Program Years 2017 2020 Part A: Strategic Elements Boards Vision 1. A description of the Board s strategic vision to support regional economic growth and economic self-sufficiency. The description must include: a. goals for preparing an educated and skilled workforce, including youth and individuals with barriers to employment; and b. goals relating to the performance accountability measures based on performance indicators described in WIOA 116(b)(2)(A). Board Response: Strategic vision to support regional economic growth and economic self-sufficiency Mission The Mission of the Workforce Solutions East Texas Board is to improve the quality of life through economic development by providing a first-class workforce for present and future businesses. Vision Workforce Solutions East Texas has active economic development with a premier Workforce attracting and supporting growth of business and industry. Goals for preparing an educated and skilled workforce, including youth and individuals with barriers to employment Workforce Solutions East Texas Board Committee Goals and Action Items are summarized below: Economic Development Committee 1. Completion of an economical and universal broadband system in rural areas providing more access to technology WD Letter 22-16, Attachment 1 1

2. Strong partnerships exist between education and business/industry resulting in more opportunities for youth including internships and apprenticeships 3. East Texas will be a workforce ready region with Workkeys or something similar 4. Business and industry consider workforce centers the hub for connecting all job seekers with employment opportunities 5. Lower unemployment rates through training, knowledge, and abilities (Goal for all Committees) 6. Strengthen relationships with Economic Development entities to coordinate planning an service delivery strategies 7. East Texas has excellent access to transportation including highways, trains, and airports Welfare-to-Work Committee 1. Provide Texas Rising Star certified centers (Goal: 60% or more) and providing quality child care to customers seeking employment and/or education (Priority) 2. A training program is in place to assist single parents including housing assistance, study programs, and child care assistance 3. Lower unemployment rates through training, knowledge, and abilities 4. Programs exist that increase knowledge of careers for parents, youth, and educators 5. Increasing number of inspiring stories for people who have successfully moved from welfare to work 6. All workforce earns at least a living wage 7. Collaboration with local resources will maximize workforce program funding 8. Because of our success in economic development those that are in need of food stamps are significantly below the national average in our region Youth Committee 1. Increased graduation rates as well as the GED and literacy skills 2. High School students graduate with industry recognized credentials in a demand entrylevel position through internships and apprenticeships 3. Lower unemployment rates through training, knowledge, and abilities (Goal for all Committees) 4. Programs that exist increase knowledge of careers for parents, youth, and educators 5. Educational opportunities have resulted in an increase in degreed, certified, or credentialed young adults 6. Exposure to career options begins at lower elementary in coordination with business and industry 7. There are different pathways to graduation with career readiness as the focus WD Letter 22-16, Attachment 1 2

8. The youth make education and career choices earlier 9. Collaboration with local resources will maximize workforce program funding Workforce Centers 1. Lower unemployment rates through training, knowledge, and abilities (Goal for all Committees) 2. All job seekers will find barrier free workforce services 3. Support Certified Work Ready Community Initiative 4. Programs and job placement services are improved for veterans returning from military service 5. Geographical accessibility to all workforce centers 6. Our programs and projects are recognized by industry peers and seen as breakthrough, innovative, and highly successful 7. Business and industry consider workforce centers the hub for connecting all job seekers with employment opportunities 8. Customers are served in ways that promote personal growth and development All of the Committee Goals identified are intended to support directly or indirectly the attainment of Texas Workforce Commission performance accountability measures for Program Year 2016 which are summarized below: Contracted Siloed Measures for Program Year 16 Adult Employed Quarter 2 Post-Exit; Quarter 4 Post-Exit; Median Earnings Quarter 2 Post-Exit and Credential Rate Dislocated Workers Employed Quarter 2 Post-Exit; Employed Quarter 4 Post-Exit; Median Earnings Quarter 2 Post-Exit and Credential Rate Youth Employed/Enrolled Quarter 2 Post-Exit; Employed/Enrolled Quarter 4 Post-Exit and Credential Rate REEMS Measures for Program Year 2016 Claimant Reemployment within 10 Weeks # Employers receiving Workforce Assistance WD Letter 22-16, Attachment 1 3

Workforce Innovation and Opportunity Act (WIOA)-based Integrated (all participant) Measures for Program Year 2016 All Participants - Employed/Enrolled Quarter 2 Post Exit; Employed/Enrolled Quarter 2-Quarter 4 Post Exit; Credential Rate and Median Earnings Quarter 2 Post Exit Temporary Assistance for Needy Families (TANF) Choices Full Work Rate Childcare Average # of Children Served per Day Discretionary Care 2. A description of the Board s strategy to work with the entities carrying out the core programs and with the required partners to align resources available to the local area, to achieve the vision and goals. Board Response: Core Programs addressed by the Workforce Solutions East Texas Board include: 1. WIOA Title 1: Adult, Dislocated Worker and Youth Programs 2. WIOA Title 2: Adult Education and Literacy Programs 3. WIOA Title 3: Wagner-Peyser Act (Employment Services) 4. WIOA Title 4: Rehabilitation Act (or VR) Workforce Innovation and Opportunity Act (WIOA) Title 1 Adult, Dislocated Worker and Youth Programs are implemented by the Workforce Centers Services Provider Dynamic Workforce Solutions Inc. (DWS). In addition, a small portion of WIOA Youth funding is used for several Stand Alone Youth projects which operate independently of the Workforce Centers, although services are coordinated. The Stand Projects are intended to offer alternative service venues for area youth and currently include East Texas Literacy Council, D.O.R.S Community Services and Goodwill Industries of East Texas. The contract between the Workforce Solutions East Texas Board (Board) and DWS outlines the Board s priorities for operating WIOA programs in compliance with federal and state WD Letter 22-16, Attachment 1 4

requirements. Contract requirements are further clarified through Texas Workforce Commission guidance letters, Board directives and technical assistance. Operating under the auspices of the East Texas Chief Elected Officials (CEO) Board, the East Texas Council of Governments (ETCOG) serves as grant recipient and fiscal agent for the Workforce Solutions East Texas Board. The Board maintains a Workforce Systems Improvement Team (WSIT) which monitors performance and compliance by the Workforce Centers Services Provider. The WSIT works hand in hand with the Workforce Centers Services Provider staff to assure that best practices are used and the needs of employers and job seekers are met. The WSIT works in conjunction with the Operations Division of the East Texas Council of Governments in areas of contracting, financial management and oversight. Workforce Innovation and Opportunity Act (WIOA) Adult Education and Literacy (AEL) Programs are operated by the Literacy Council of Tyler, which serves as the Texas Workforce Commission AEL grant recipient for the East Texas Workforce Development Area. Located on the Tyler Junior College West Campus, Literacy Council of Tyler provides services for Smith, Cherokee and Wood Counties. They in turn contract with Angelina College, Kilgore College, Northeast Texas Community College, Panola College, Trinity Valley Community College and New Summerfield ISD to serve the remainder of the East Texas Workforce Development Area. The Workforce Solutions East Texas Board collaborates with the local AEL program for referrals to and from the Workforce Centers. As opportunities arise, the AEL Providers and Workforce Centers participate jointly in career pathways and other training opportunities. Required Partners include: 1. Workforce Innovation and Opportunity Act (WIOA, Workforce Investment Act, formerly or WIA) The Workforce Solutions East Texas Board contracts with Dynamic Workforce Solutions, Inc. to implement WIOA Adult, Dislocated Workforce and Youth Programs. In addition, the Workforce Solutions East Texas Board utilizes a portion of WIOA Youth funding for Stand Alone Youth projects through contracts with local agencies including D.O.R.S. Community Services, East Texas Literacy Council, and Goodwill Industries of East Texas. 2. Wagner-Peyser Service (ES) WD Letter 22-16, Attachment 1 5

Employment Services (ES) for employer and jobseeker customers are funded through the Wagner Wagner-Peyser Act. Employment Services staff are employees of the State of Texas and the Texas Workforce Commission and are supervised by the TWC Area Manager stationed in the Tyler Workforce Center. Employment Services staff work under the direction of Dynamic Workforce Solutions, Inc. the Workforce Center Service Provider, in carrying out tasks which support performance measures and center activities. 3. Unemployment Insurance Benefits Information Program (UI) Workforce Center s staff including DWS and ES staff provide workforce customers with relevant information about requirements for Unemployment Insurance Program benefits, which are administered by the Texas Workforce Commission. 4. Trade Adjustment Assistance Program (TAA) Trade Adjustment Act staff are employees of the Texas Workforce Commission who work under the direction of the Workforce Centers Services Provider (DWS). Trade Adjustment Act services may be provided jointly by TAA staff and Workforce Center s staff when participants are co-enrolled in the TAA and the WIOA Dislocated Workforce programs. 5. Choices, the Temporary Assistance for Needy Families (TANF) employment and training program Dynamic Workforce Solutions Inc. (DWS) operates the Choices Temporary Assistance for Needy Families (TANF) employment and training program. In addition, the Workforce Solutions East Texas Board uses a portion of the TANF funds to provide Basic Education and Literacy Programs through a network of providers, including East Texas Literacy Council, Kilgore College, Literacy Council of Tyler, Northeast Texas Community College, Panola College and Trinity Valley Community College. 6. Supplemental Nutrition Assistance Program Employment and Training (SNAP (E&T) Dynamic Workforce Solutions Inc. (DWS) operates the Supplemental Nutrition Assistance Program Employment and Training (SNAP (E&T). 7. Subsidized Child Care WD Letter 22-16, Attachment 1 6

The Workforce Solutions East Texas Board contracts with Neighborhood Centers Inc. (NCI) to provide subsidized Child Care Services. Child Care Services staff are housed in the Workforce Centers. 8. Adult Education and Literacy (AEL) programs Adult Education and Literacy (AEL) Programs are operated by the Literacy Council of Tyler, which serves as the Texas Workforce Commission grant recipient for the East Texas Workforce Development Area. 9. Apprenticeship programs (Chapter 133 of the Texas Education Code) Area Apprenticeship programs operate outside of the Workforce Centers, which make referrals to the programs, when appropriate. 10. National and Community Services Act program The National and Community Services Act program operates outside of the Workforce Centers. 11. Senior Community Service Employment Program The Senior Community Service Employment Program has staff located in the Tyler Workforce Center. In addition, Senior Community Service subsidized work experience participants work in various assignments at the centers. 12. Non-Certificate Postsecondary Career and Technology Training programs Non-Certificate Postsecondary Career and Technology Training programs operate outside of the Workforce Centers, which make referrals to the programs, when appropriate.. 13. VR (WIOA, Title IV) programs Vocational Rehabilitation (VR) programs are operated by the Texas Workforce Commission and their services are coordinated with the Workforce Centers Services Provider, DWS. Currently, while VR staff are housed separately, VR staff may provide services at the Workforce Centers. WD Letter 22-16, Attachment 1 7

During the period of this plan, portion of VR staff will be repositioned into the Workforce Centers. 14. Veteran employment and training programs Veteran employment and training programs are operated by Texas Veterans Commission staff at the Longview and Tyler Workforce Centers. DWS actively refers eligible veterans to the Veteran employment and training programs and coordinates services with Veterans staff, assuring veterans priority of service requirements are followed. Economic and Workforce Analysis 1. A regional analysis of the following: a. The economic conditions, including existing and emerging in-demand industry sectors and occupations, as well as targeted occupations b. The employment needs of employers in existing and emerging in-demand industry sectors and occupations As appropriate, a local workforce development area (workforce area) may use an existing analysis, provided that it is recent and provides a current and accurate description of the regional economy. Board Response: The East Texas Workforce Development Area includes the Longview and Tyler Metropolitan Statistical Areas (MSAs) and consists of 14 counties: Anderson, Camp, Cherokee, Gregg, Harrison, Henderson, Marion, Panola, Rains, Rusk, Smith, Upshur, Van Zandt and Wood. The region had an estimated population of 829,749 in 2010 and consists of 10,019 square miles. The region has a total estimated Gross Domestic Product (GDP) of $33,795,507,662. WD Letter 22-16, Attachment 1 8

Geographically, East Texas is where the South ends and Texas begins. Traveling the stream traversed rolling hills of East Texas from east to west, one can see the transition from the Piney Woods of the South to a post oak woodlands/savannah to the black land prairies of the Dallas area. The U.S. Cluster Mapping Project, a joint venture of the Economic Development Administration and Harvard University, places East Texas within the Dallas Texas Economic Area which adjoins the Shreveport Louisiana Economic Area. U.S. Interstate 20 serves as a vital connection between these Economic Areas, crossing from east to west through the cities of Marshall, Longview, Lindale (within the Tyler MSA) and Canton (three of these cities are County seats). U.S Highways 59 (and 259) and 69 bisect Interstate 20 through Marshall, Longview, Tyler respectively and serve as major north/south routes. Along with extensive rail lines and the Tyler and Gregg County airports, our network of highways serves as a major catalyst for economic growth. The 14 counties which make up the East Texas Workforce Development Area are interconnected and diverse. As reflected in work commuting patterns, the counties are roughly configured into two labor market areas anchored in the Longview and Tyler MSAs. WD Letter 22-16, Attachment 1 9

The Longview MSA is comprised of Gregg, Rusk and Upshur Counties. The chart below identifies counties with more than 10% of the labor force working in Gregg County (Longview). Counties with More than 10% of Workforce Working in Gregg County Marion 13.54% Harrison Rusk 25.64% 29.39% Upshur 40.73% Gregg 83.38% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% U.S Census Bureau American Community Survey 2009-2013 The Tyler MSA includes all of Smith County. Counties with more than 10% of the labor force working in Smith County are identified below: Counties with More than 10% of Workforce Working in Smith County Van Zandt 12.74% Wood 14.16% Henderson 14.34% Cherokee 16.87% Smith 85.74% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%100.00% U.S Census Bureau American Community Survey 2009-2013 WD Letter 22-16, Attachment 1 10

Patchwork Nation is a reporting project of the Jefferson Institute that aims to explore what is happening in the United States by examining different kinds of communities over time. The effort uses demographic, voting and cultural data to cluster and organize communities into types of place. Patchwork divides America's 3,141 counties into 12 community types based on characteristics such as income level, racial composition, employment and religion. The Patchwork Nation primary and secondary community type classification for each county within East Texas is identified below. County Patchwork Nation Patchwork Nation2 Primary Classification Secondary Classification Anderson Higher Minority Population Military/Veteran Center Camp Higher Evangelical Population Higher Minority Population Cherokee Higher Evangelical Population Higher Minority Population Gregg Growth Community Higher Minority Population Harrison Higher Evangelical Population Higher Minority Population Henderson Suburban Center Higher Retiree Population Marion Higher Minority Population Higher Retiree Population Panola Higher Evangelical Population Higher Minority Population Rains Suburban Center Higher Retiree Population Rusk Higher Evangelical Population Military/Veteran Center Smith Suburban Center Metropolitan Area Upshur Higher Evangelical Population Higher Retiree Population Van Zandt Higher Evangelical Population Higher Retiree Population Wood Suburban Center Higher Retiree Population Growth Community - "Boom Towns" - Fast growing communities with rapidly diversifying populations Higher Retiree Population - "Emptying Nests" - Home to many retirees and aging baby boomer populations; less diverse than the nation at large Higher Evangelical Population - "Evangelical Epicenters" - Communities with a high proportion of evangelical Christians, found mostly in small towns and suburbs; slightly older than the U.S. average Metropolitan Area - "Industrial Metropolis" - Densely populated, highly diverse urban centers; incomes trend higher than the national average Military/Veteran Center - "Military Bastions" - Areas with high employment in the military or related to the presence of the military and large veteran populations Higher Minority Population - "Minority Centers" - Home to large pockets of black residents but a below average percentage of Hispanics and Asians WD Letter 22-16, Attachment 1 11

Suburban Center - "Monied Burbs" - Wealthier, highly educated communities with a median household income of $15,000 above the national county average. In a report prepared in 1987, Dr. M. Ray Perryman stated East Texas is a vibrant and dynamic economic region. It boasts an incredible array of natural resources, including oil, natural gas, timber, lignite, clay, fertile agricultural land and water. It has a skilled and abundant labor force, good infrastructure, outstanding recreational facilities and an excellent climate. The area also has a strong educational complex, cultural opportunities and a great quality of life. This report was prepared in the aftermath of a catastrophic collapse in oil prices resulting in a region wide unemployment rate of 10.5% in July of 1986. In his study, Dr. Perryman went on to state The overall outlook for the region is solid, but it can be significantly enhanced through a comprehensive program designed to achieve greater diversification and development. Discounting imprecision which comes with any type of classification system, the Patchwork Nation categories emphasize the social and economic diversity of the region. And while Oil and Gas is still a major East Texas industry, in the 30 years since the East Texas Perryman Study was published, much diversification in the economy has occurred. Following the 2014 downturn in Oil and Gas prices, the unemployment rate for the East Texas Workforce Development Area in November 2016, was 4.8% and the 12,417 employed in Natural Resources and Mining Sector during the second quarter of 2016 reflect only 4.0% of the total employment for the region. Employment by Industry (2nd Quarter 2016, Percent Change) % of Industry Employment total Quarter Year Natural resources and mining 12,417 4.00% -7.70% -20.60% Construction 21,969 7.10% 1.40% -2.10% Manufacturing 30,781 10.00% -1.90% -1.50% Trade, transportation, and utilities 64,726 21.00% 0.20% -1.50% Information 4,367 1.40% -1.80% -2.70% Financial activities 13,022 4.20% 3.60% -0.20% Professional and business services 23,727 7.70% 0.30% 0.10% Education and health services 84,641 27.40% 0.50% 2.20% Leisure and hospitality 31,010 10.00% 5.50% 5.00% Other services 8,874 2.90% 10.60% 1.60% Public administration 13,220 4.30% 0.90% 2.20% Total 308,754 100.00% 0.80% -0.50% Texas Workforce Commission LMCI Economic Profiles Another way of looking at the industrial make-up and diversity of a region is through cluster mapping. WD Letter 22-16, Attachment 1 12

A cluster is a regional concentration of related industries in a particular location. Clusters are a striking feature of economies, making regions uniquely competitive for jobs and private investment. They consist of companies, suppliers, and service providers, as well as government agencies and other institutions that provide specialized training and education, information, research, and technical support. Traded clusters are groups of related industries that serve markets beyond the region in which they are located. They are free to choose their location of operation (unless the location of natural resources drives where they can be) and are highly concentrated in a few regions, tending to only appear in regions that afford specific competitive advantages. Local clusters, in contrast, consist of industries that serve the local market. They are prevalent in every region of the country, regardless of the competitive advantages of a particular location. As a result, a region s employment in local clusters is usually proportional to the population of that region. Moreover, the majority of a region s employment comes from jobs in local clusters. Since local clusters are tied to the regions in which they are located, they are not directly exposed to competition from other regions. Included for this analysis are charts from the U.S. Cluster Mapping Project summarizing Traded and Non Traded Clusters for the East Texas Workforce Development Area. Based upon 2014 data, 66% of the workers in East Texas were employed in Local Clusters and 34% were employed in Traded Clusters. WD Letter 22-16, Attachment 1 13

Local Industry Clusters WD Letter 22-16, Attachment 1 14

Traded Industry Clusters WD Letter 22-16, Attachment 1 15

The intricate connections between the region's traded clusters are further illustrated below: A survey of Economic Development entities in East Texas has been conducted in conjunction with preparation of the Plan. The survey results, along with labor market and industry information from TWC are being considered by the Workforce Solutions East Texas Board in developing the proposed list of Targeted Industries. Area Economic Development entities and area training providers were also surveyed regarding targeted occupation needs. The survey results, along with labor market and industry information from TWC are considered by the Workforce Solutions East Texas in developing the proposed list of Targeted Occupations WD Letter 22-16, Attachment 1 16

2. A list of the in-demand industry sectors and occupations. Board Response: Note: In Demand Industry Sectors and Sectors will be adopted by the Workforce Solutions East Texas Board prior to Submission of the TWC Plan on February 28, 2017. 3. A list of the target industry sectors and occupations. Board Response: Note: In Demand Industry Sectors and Sectors will be adopted by the Workforce Solutions East Texas Board prior to Submission of the TWC Plan on February 28, 2017. 4. An analysis of the knowledge and skills needed to meet the employment needs of the employers in the region, including employment needs in in-demand sectors and occupations. Board Response: According to the Georgetown Center on Education and the Workforce, 65 percent of U.S. jobs will require some form of postsecondary education by 2020. In 2016, the Georgetown Center further reported nationwide, out of the 11.6 million jobs created in the post-recession economy, 11.5 million (or 99%) went to workers with at least some college education. Graduate degree holders gained 3.8 million jobs, bachelors degree holders gained 4.6 million jobs and 3.1 million jobs went to Associate degree holders. Employment of workers with a high school diploma or less only grew by 80,000 jobs. Texas Workforce Commission (TWC) projects the number of persons employed in East Texas will increase by 59,460 (16.3%) from 365,110 in 2014 to 424,570 in 2024. Board Staff reviewed the TWC occupational projections and cross walked each occupation with the United States Department Labor Occupational Information Network (ONET) data for level of education for the majority of people employed in each occupation. Staff calculates for the 23,530 new jobs WD Letter 22-16, Attachment 1 17

projected to occur by 2024, for 41.1% of the jobs, as estimated through ONET, the majority of individuals will have a post-secondary degree or certificate or at least some form of postsecondary education for the matching occupational title. It is probably a safe assumption staff's rudimentary analysis of the TWC data understates the increasing skills level and credentialing requirements for East Texas job seekers during the coming decade. With the increasing reliance on flexible technologies such as computers and software, skills requirements for numerous occupations are increasing rapidly. It seems likely many of the occupations for which a majority of jobholders currently hold high school diplomas or less will evolve over the coming decade to require higher credential levels. In staff's opinion, the projection by the Georgetown University Center for a majority of new jobs to require postsecondary education is valid for East Texas. Having said this, it is also likely the demand for high school graduates in East Texas will be higher than the national average. Taking into account the TWC data, the industry make up for East Texas, when compared to other areas of the country, is skewed somewhat towards industries hiring more high school graduates. (As an example, the Employment by Industry chart listed earlier shows employment in the Natural Resources and Mining and Construction Sectors, which hire more high school graduates is 11.10% compared to 2014 data indicating 5.77% employed in these sectors nationally.) As an adjunct to the analysis of employment by industry, a summary has been compiled for employment by venue independent of a particular industry or sector. This chart is another way of looking at regional employment which is decoupled from the industry type for example in the Health Services sector, jobs for individuals in direct care of patients (Nurses, Nursing assistants, etc. are included in a separate category Hospital from the administrative and clerical workers who are included in the Office category. In reviewing this chart, of particular interest is the cohort of 19.17% of the workforce we identified as Counter and Service Workers (workers in lower wage service jobs). These are individuals who typically have earnings which often are insufficient to support a family without additional assistance. A portion of the individuals are working in these jobs temporarily, i.e., they are working while putting themselves through school or have been laid off and are maintaining temporary employment during the interim. Many of the remaining Counter workers lack the skills necessary for better paying employment. Central to the strategies outlined in the Board s TWC Plan is the commitment to providing opportunities to these individuals to enhance their skills and credentials and obtain employment, meeting the needs of high skill/high wage employers in the region. WD Letter 22-16, Attachment 1 18

East Texas Employment by Setting 3.92% FARM 14,320 1.50% OIL & GAS EXTRACTION 5,460 19.17% COUNTER & SERVICE 70,000 29.38% OFFICE 107,290 17.39% REPAIR & TRANSPORT & CONSTRUCTION 63,480 6.89% FACTORY 25,160 4.02% COMMUNITY SERVICE 14,660 8.73% HOSPITAL 31,860 5.77% CLASSROOM 21,050 3.24% TECHNICAL/PROFESSI ONAL 11,840 Another important note about the Employment by Setting Chart is approximately one third of the East Texas labor force works in office settings in various industries. From 2008 to 2014, the percentage of the East Texas labor force working in offices has increased by 26,330, from 23.63% to 29.38% of the workforce. The increase in employment in office settings has been cited by the researchers at the Georgetown Center for Education and the Workforce as evidence of the ongoing transition of the U.S. economy from industrial to post- industrial and is a major factor in their call for increases in postsecondary degree and certificate attainment. WD Letter 22-16, Attachment 1 19

5. An analysis of the regional workforce, including current labor force employment and unemployment data, information on labor market trends, and educational and skill levels of the workforce, including individuals with barriers to employment. Board Response: In November of 2016, a Civilian Labor force of 382,466 it was reported for the East Texas Workforce Development Area. With 18,275 unemployed, East Texas had a seasonally unadjusted unemployment rate of 4.8%. A summary of unemployment rate data for each county is included below: November 2016 County Labor Force Employment Unemployment Unemployment Rate Anderson 23,675 22,766 909 3.80% Camp 5,023 4,714 309 6.20% Cherokee 20,852 19,875 977 4.70% Gregg 59,916 56,610 3,306 5.50% Harrison 30,095 28,461 1,614 5.40% Henderson 35,014 33467 1,547 4.40% Marion 4,383 4,104 279 6.40% Panola 9,882 9,217 665 6.70% Rains 5,467 5,269 198 3.60% Rusk 23,526 22,284 1,242 5.30% Smith 104,894 100,501 4,393 4.20% Upshur 17,878 16,868 1,010 5.60% Van Zandt 24,637 23,684 953 3.90% Wood 16,984 16,156 828 4.90% East Texas 382,466 364,191 18,275 4.80% Texas Workforce Commission - LMCI Tracer Seasonally Non- Adjusted Also included is a summary of seasonally unadjusted unemployment rate data for East Texas from November 2007 through November 2016. This time series covers the Great Recession and the more recent downturn caused by the more recent downturn in Oil and Gas prices. WD Letter 22-16, Attachment 1 20

November Unemployment Rates 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Anderson 4.9% 6.0% 9.2% 7.8% 6.4% 5.9% 5.2% 4.1% 4.1% 3.8% Camp 4.3% 5.2% 8.8% 9.1% 8.2% 7.3% 6.7% 5.4% 6.4% 6.2% Cherokee 4.8% 6.6% 9.3% 8.7% 7.7% 6.8% 6.5% 5.4% 5.4% 4.7% Gregg 3.5% 4.2% 7.5% 7.5% 6.5% 5.8% 5.5% 4.2% 5.1% 5.5% Harrison 4.0% 4.9% 9.1% 8.8% 7.7% 6.8% 6.2% 4.8% 5.6% 5.4% Henderson 4.2% 5.8% 8.6% 8.8% 8.1% 7.2% 6.4% 5.0% 4.8% 4.4% Marion 4.4% 5.1% 11.1% 11.0% 9.6% 8.4% 7.3% 5.9% 6.5% 6.4% Panola 3.5% 4.3% 8.1% 8.5% 7.5% 6.4% 5.6% 4.5% 5.9% 6.7% Rains 4.4% 5.7% 8.8% 8.5% 7.8% 6.4% 5.6% 4.5% 4.2% 3.6% Rusk 3.8% 4.2% 8.7% 7.6% 6.4% 5.8% 5.6% 4.3% 4.9% 5.3% Smith 4.0% 4.9% 7.9% 8.0% 8.0% 6.6% 6.1% 4.6% 4.6% 4.2% Upshur 3.7% 4.5% 7.7% 8.6% 7.3% 6.2% 5.9% 4.5% 5.4% 5.8% Van Zandt 3.7% 4.7% 7.3% 8.3% 7.3% 6.3% 6.0% 4.6% 4.4% 3.9% Wood 4.4% 5.8% 8.5% 8.8% 8.2% 7.3% 6.7% 5.4% 5.2% 4.9% East Texas ---- ---- ---- 8.2% 7.5% 6.5% 6.0% 4.6% 4.8% 4.8% Texas 4.1% 5.2% 8.0% 8.1% 7.1% 6.1% 5.4% 4.5% 4.4% 4.2% US 4.5% 6.5% 9.4% 9.3% 8.2% 7.4% 6.6% 5.5% 4.8% 4.4% Texas Workforce Commission - LMCI Tracer Seasonally Non-Adjusted Through both periods, the unemployment rates for East Texas generally tracked below the National averages. Doing the Great Recession, unemployment in small urban areas of East Texas closely tracked the statewide unemployment rate, but unemployment in the rural counties was often higher than the statewide average. During the more recent downturn in the Oil and Gas industry, unemployment rates for East Texas have been higher than the State as a whole. The Oil and Gas slump has been characterized by smaller layoffs from numerous employers. In May 2016, Workforce Solutions staff prepared a proposal to be included in a Statewide National Dislocated Worker Oil and Gas Grant application by TWC. In research for the proposal, staff prepared a snapshot of jobseekers registered with the Workforce Centers and 8,100 workers laid off from Oil and Gas or Downstream employers were identified. Approximately 6,801 of the jobseekers were from individual employers who had laid off less than 10 workers. In 2014 it was reported 141,853, or 17.3% of the East Texas population was at or below the poverty level. Along with unemployment and poverty rates, another key indicator for the region is the number of individuals receiving Supplemental Nutrition Assistance Payments (SNAP), which is based upon family income criteria. The number of SNAP recipients each county of the region is summarized below: WD Letter 22-16, Attachment 1 21

SNAP Recipients 2014 2014 Percent Anderson 6,206 10.60% Camp 2,469 19.50% Cherokee 7,296 13.90% Gregg 17,089 13.60% Harrison 9,464 13.90% Henderson 10,759 13.40% Marion 1,713 16.70% Panola 2,860 11.80% Rains 1,143 10.20% Rusk 5,753 10.70% Smith 24,582 11.30% Upshur 5,245 13.00% Van Zandt 5,891 10.90% Wood 4,242 9.70% US Census American Community Survey Population Age By national standards, Texas has a relatively young population. The 2010 Census estimates for Texas and East Texas show a population composition as follows. It should be noted East Texas has an older age distribution than the State. This has implications both for the availability of the future workforce and for employment trends, i.e. increases in demand for medical positions to care for aging baby boomers. WD Letter 22-16, Attachment 1 22

East Texas and State Population/Age 2010 Age East Texas Population Area Percent Texas Population State Percent Under 5 55,011 6.6% 1,928,473 7.7% 5-14 111,983 13.5% 3,810,117 15.2% 15-19 58,000 7.0% 1,883,124 7.5% 20-44 255,717 30.8% 8,888,934 35.3% 45-64 220,553 26.6% 6,033.027 24.0% 65+ 128,485 15.5% 2.601,886 10.3% Ethnicity East Texas and State Population Characteristics - 2010 Race/Ethnicity East Texas Population East Texas Percent Texas Population Statewide Percent White 617,860 74.5% 11,397,345 70.4% Black 125,973 15.2% 2,886,825 11.8% Other 85,916 10.4% 9,460,921 17.8% Hispanic 116,041 14.0% 1,400,470 37.6% WD Letter 22-16, Attachment 1 23

Disability Population The concentration of individuals with disabilities in 2014 is summarized below: Persons With Disabilities Percent of Population Anderson 13.0% 5,944 Camp 18.0% 2,218 Cherokee 14.1% 6,857 Gregg 14.5% 17,560 Harrison 13.6% 8,985 Henderson 17.8% 13,987 Marion 22.9% 2,339 Panola 16.2% 3,818 Rains 18.3% 1,995 Rusk 15.6% 7,688 Smith 13.4% 28,491 Upshur 19.0% 7,486 Van Zandt 18.2% 9,470 Wood 21.4% 8,880 East Texas 15.0% 125,718 US Census American Community Survey WD Letter 22-16, Attachment 1 24

Population Trends and Projections The following table represents population projections for East Texas as computed in 2012 by The Office of the State Demographer for the State of Texas: 2009-2014 Population Projections and Percent Change Since 2000* Year Total Pct Chg Anglo Pct Chg Black Pct Chg Hispanic Pct Chg Other Pct Chg 2000 745,180 --- 551,053 --- 122,190 --- 64,942 --- 6,995 --- 2005 777,737 4.4 562,713 2.1 126,560 3.6 80,709 24.3 7,755 10.9 2010 829,749 11.3 568,228 3.1 124,654 2.0 116,041 78.7 20,826 197.7 2015 864,520 16.0 574,340 4.2 129,602 6.1 137,430 111.6 23,148 230.9 2020 899,473 20.7 577,720 4.8 133,647 9.4 162,361 150.0 25,745 268.0 2025 935,495 25.5 578,544 5.0 136,529 11.7 191,675 195.1 28,747 311.0 2030 970,496 30.2 574,646 4.3 138,484 13.3 225,177 246.7 32,189 360.2 2035 1,003,624 34.7 566,243 2.8 139,396 14.1 261,878 303.2 36,107 416.2 2040 1,036,822 39.1 555,095 0.7 139,754 14.4 301,858 364.8 40,115 473.5 2045 1,072,119 43.9 542,551-1.5 139,502 14.2 345,896 432.6 44,170 531.5 2050 1,111,541 49.2 530,133-3.8 138,620 13.4 394,778 507.9 48,010 586.3 * Anglo, Black, and Other excludes Hispanic counts. For comparison purposes, the Texas population projections, using the same scenario methodology, are as follows: Population Projections and Percent Change Since 2000* Year Total Pct Chg Anglo Pct Chg Black Pct Chg Hispanic Pct Chg Other Pct Chg 2000 20,851,820 --- 11,074,716 --- 2,421,653 --- 6,669,666 --- 685,785 --- 2005 22,556,046 8.2 11,327,873 2.3 2,588,605 6.9 7,820,842 17.3 818,726 19.4 2010 25,145,561 20.6 11,397,345 2.9 2,886,825 19.2 9,460,921 41.8 1,400,470 104.2 2015 27,000,199 29.5 11,599,884 4.7 3,094,388 27.8 10,698,906 60.4 1,607,021 134.3 2020 28,921,650 38.7 11,752,527 6.1 3,295,218 36.1 12,047,446 80.6 1,826,459 166.3 2025 30,905,192 48.2 11,840,265 6.9 3,484,786 43.9 13,520,940 102.7 2,059,201 200.3 2030 32,927,245 57.9 11,850,199 7.0 3,658,975 51.1 15,106,347 126.5 2,311,724 237.1 2035 34,962,746 67.7 11,788,395 6.4 3,814,605 57.5 16,772,258 151.5 2,587,488 277.3 2040 37,022,513 77.6 11,676,168 5.4 3,951,928 63.2 18,511,750 177.6 2,882,667 320.3 2045 39,125,589 87.6 11,530,632 4.1 4,072,933 68.2 20,337,984 204.9 3,184,040 364.3 2050 41,311,221 98.1 11,376,567 2.7 4,182,147 72.7 22,270,859 233.9 3,481,648 407.7 * Anglo, Black, and Other excludes Hispanic counts. According to the county-based population estimates from the United States Census Bureau, the East Texas Workforce Development Area changed in population from 745,180 in April, 2000 to an estimated 829,749 in April 2010 by 84,569 residents. This reflects an increase of 11.3 percent in population. During the same time period, the state's population changed by 4,293,741 WD Letter 22-16, Attachment 1 25

residents from 20,851,820 to an estimated 25,145,561 persons representing a comparative change of 20.6 percent. The two key demographic changes of the first half of the 21st century for Texas and East Texas (and the nation as a whole) will be: * The rise in Hispanic population (It is projected by 2025, 20.5% of the population in East Texas will be Hispanic and Hispanics will comprise 43.7% of the Texas population.); and * The Aging of the Baby Boomers (In 2014, it was estimated 187,132 or 22.3% of the East Texas population was 60 years of age or older.) Education Levels According to the Texas Workforce Commission County Narrative Profile, the total number of persons 25 years of age or older who responded to the level of educational attainment during the 2007-2011 American Community Survey, Bureau of the Census was 488,110. Of those persons, the following presents a table on various levels of educational attainment for the East Texas Workforce Development compared to statewide percentages is as follows: Educational Attainment Area Percent Statewide Percent Less than 9th Grade 8.2 11.5 9 th to 12 th grade, no diploma 16.5 12.9 H.S. graduate (inc. equiv.) 30.3 24.8 Some college, no degree 23.5 22.4 Associate Degree 5.7 5.2 Bachelor's Degree 10.5 15.6 Graduate or Prof. Degree 5.2 7.6 These statistics show the percent of high school graduates or higher was 75.3 percent for East Texas compared to 75.7 percent for Texas. Also, the percent with Bachelor's degree or higher was 15.7 percent for East Texas as compared to 23.2 percent for Texas. As noted earlier, the Georgetown Center on Education and the Workforce projects 65 percent of U.S. jobs will require some form of postsecondary education by 2020. According to the American Community Survey data, 21.4% of East Texans 25 or older have an Associate s degree or higher and a combined 44.9% have either some college and no degree or a college degree. WD Letter 22-16, Attachment 1 26

The U.S. Cluster Mapping Project has compiled educational comparison data between East Texas and other Economic Regions of similar size for attainment of "Some College and Associates Degree and for attainment of a Baccalaureate degree or more. WD Letter 22-16, Attachment 1 27

Efforts to improvehigh school and college graduation rates and credential attainments are hampered by persistent high rates of illiteracy as illustrated in the graphic below based on statistics from the National Center for Education Statistics (NCES), U.S. Department of Education, Institute of Education Sciences January 2009 National Assessment of Adult Literacy. WD Letter 22-16, Attachment 1 28

While illiteracy rates in East Texas are consistent with other metropolitan areas in the State, rates for two of the counties within East Texas are at or above the statewide average of 19% who cannot read a newspaper. School Data for East Texas Public Education is at the forefront of efforts to increase credential attainment rates in East Texas. The Texas Education Agency and other entities maintain detailed performance data on measures tracking on critical school success benchmarks. This information is summarized in the chart below for schools in each county of the East Texas region. Similar measures are being used by the Tyler Area Partnership 4 Education (described below) in their efforts to increase the number of Smith County residents with a postsecondary degree or credential. WD Letter 22-16, Attachment 1 29

Early Childhood Success School Readiness Transition to High School High School Success Pre-K Participation Rates Percentage Who Are Meeting 3rd Grade Reading Standards Percentage Who Must repeat the 9th Grade Percentage Who Drop Out of High School Texas 75.50% 40% 9.60% 6.60% Anderson 76.40% 33% 5.40% 1.80% Camp 56.80% 38% 2.50% 0% Cherokee 87.10% 35% 10.00% 6.10% Gregg 80.40% 41% 3.90% 4.40% Harrison 68.30% 40% 2.20% 4.40% Henderson 75.20% 40% 1.90% 3.60% Marion 97.10% 46% 3.30% 3.50% Panola 69.80% 40% 8.40% 5.90% Rains 58.10% 38% 0.80% 1.00% Rusk 81.90% 35% 2.80% 4.40% Smith 60.00% 39% 8.30% 2.80% Upshur 75.30% 36% 5.70% 2.80% Van Zandt 77.50% 41% 5.20% 5.30% Wood 86.70% 41% 4.60% 3.20% Texas Education Agency WD Letter 22-16, Attachment 1 30

Transition to College College Success Successful Transitions to College Successful Transitions to College Successful Transitions to College Successful Transitions to College County Percentage of high school graduates who enroll in Texas colleges Percentage of Students who enroll in Texas Colleges who Graduate Percentage of Students Enrolled in Advanced Placement or International Baccalaureate Enrollment Rate Dual Credit Enrollment Rate Percentage of 12th graders completing the Free Application for Federal Student Aid (application for college financial aid) by June of their senior year Percentage of students entering postsecondary education deemed collegeready Texas 51.40% 53.00% 22.10% 7.50% 40.30% 72.30% Anderson 45.50% 48.70% 5.20% 9.50% 32.30% 74.20% Camp 43.00% 46.00% 21.30% 10.70% 29.60% 49.20% Cherokee 43.20% 49.60% 7.40% 15.90% 35.10% 69.80% Gregg 50.60% 50.30% 13.90% 8.70% 34.00% 69.90% Harrison 48.30% 51.60% 10.90% 9.30% 32.10% 69.50% Henderson 45.30% 54.50% 18.90% 14.00% 28.50% 70.50% Marion 56.00% 47.70% 0% 3.10% 52.20% 59.50% Panola 61.40% 50.70% 7.50% 16.80% 35.20% 75.90% Rains 46.50% 65.00% 2.50% 7.50% 41.50% 70.00% Rusk 50.90% 47.40% 6.80% 7.90% 32.30% 63.40% Smith 51.90% 47.10% 15.00% 11.00% 34.20% 73.60% Upshur 52.70% 45.30% 7.90% 8.50% 43.10% 72.00% Van Zandt 45.40% 49.90% 4.80% 7.40% 36.00% 77.40% Wood 48.90% 47.90% 2.30% 11.60% 43.10% 78.30% Texas Education Agency WD Letter 22-16, Attachment 1 31

Economically Disadvantaged White African American Hispanic Other Texas 58.70% 29.00% 12.60% 52.00% 6.40% Anderson 61.40% 54.20% 16.90% 24.10% 4.80% Camp 80.20% 40.40% 17.70% 37.80% 4.20% Cherokee 73.30% 41.10% 15.60% 39.90% 3.30% Gregg 58.00% 44.10% 23.30% 27.70% 4.90% Harrison 57.00% 53.50% 21.90% 20.70% 3.90% Henderson 63.40% 64.50% 8.60% 23.40% 3.50% Marion 58.10% 53.80% 36.80% 5.80% 3.60% Panola 47.30% 65.60% 17.00% 14.90% 2.50% Rains 60.60% 76.70% 2.30% 15.00% 6.10% Rusk 61.60% 52.10% 18.20% 26.50% 3.20% Smith 58.90% 43.90% 20.20% 31.60% 4.30% Upshur 55.20% 72.80% 8.50% 13.70% 4.90% Van Zandt 52.70% 75.20% 3.10% 17.60% 4.10% Wood 54.50% 74.20% 4.10% 17.50% 4.20% Texas Education Agency Note: Time frames vary for each of these report categories and are available upon request. 6. An analysis of workforce development activities in the region, including education and training. Note: This analysis must include the strengths and weaknesses of workforce development activities and an evaluation of the effectiveness of programs and services. It must evaluate the Board s capacity to provide workforce development activities to address the identified education and skills needs of the workforce. The analysis must include individuals with barriers to employment. The analysis also must address the employment needs of employers. Board Response: Along with regular programmatic activities offered through the Workforce Solutions East Texas Board, partners in the East Texas Workforce System are involved in numerous collaborative efforts - Several of which are highlighted below: WD Letter 22-16, Attachment 1 32

Gregg County Work Ready Community Initiative - Gregg County (Longview and Kilgore) is the first ACT Certified Work Ready Community in the State of Texas. The WorkKeys initiative addresses business needs by providing job seekers the opportunity to document their skill levels and readiness for critical positions. The impact of WorkKeys is based upon extensive collaboration among area economic development agencies, employers, colleges, independent school districts and Workforce Solutions East Texas. Tyler Area Partnership 4 Education - The Tyler Area Partnership 4 Education (Tyler/Smith County) was formed by the Tyler Business and Education Council to work on educational outcomes from cradle to career in an effort to ensure that Smith County young people and adults are better prepared for the demands of the global economy. The goal of the Partnership is to increase the number of residents possessing a postsecondary credential or degree to 60% by the year 2025. Tyler Independent School District Career & Technology Center (CTC) - A state-of-theart facility where students are connected with real-world experiences from a variety of career fields and interests. The goal of Career and Technical Education is to prepare students for college, technical school, or the workforce, in a highly rigorous environment. A wide variety of options allow students to explore career pathways and earn certificates and licensures before they graduate high school. Kilgore College Wagner Peyser Grant - The Kilgore College Workforce Development Department has been awarded a $500,000 grant by the Texas Workforce Commission Investment Council s Wagner-Peyser 7(b) Grant Program that will be used to pay tuition for select classes for 100 area displaced workers. Candidates who apply and meet certain qualifications through KC Workforce Development can take tuition-free courses at KC in advanced welding, transportation (CDL) and industrial electrical technology. National Dislocated Worker Oil and Gas Grant - Using U.S Department of Labor funding through the Texas Workforce, this project will be operated by the Workforce Solutions East Texas Board through DWS, the Workforce Centers Services provider. Targeted for workers laid off from the oil and gas industry, emphasis will be placed upon enrollment in short-term or long-term occupational skills training leading to an Associates degree or certificate for individuals lacking the skills needed for self sufficiency. Pre-Apprentice Skills Investment model - operated by the Workforce Solutions East Texas Board through DWS, the Workforce Centers Services provider, the program targets WIOA eligible out-of-school youth. These youth will participate in a 4 week training program that meshes soft skills with industry-specific orientation. Elements of the training are presented by Workforce personnel, local employer representatives, and a training provider familiar with the industry. WorkKeys assessments and Industry recognized credentials are included. Upon completion of the WD Letter 22-16, Attachment 1 33

classroom portion of the training, participants will practice the skills learned by moving into an intern apprenticeship or paid work experience training position in the industry in which they were trained. The initiatives described in this analysis represent diverse, innovative, approaches to address the workforce needs of employers in specific communities in the region. Approaches include community engagement and goal setting, skills benchmarking, conventional skills training for targeted groups and specialized training models for hard to serve populations. Further, each of the initiatives has unique funding sources and performance measures. This diversity is a major strength for East Texas Workforce System. This diversity in initiatives can also render problematic, the measurement of efforts to assure the overall workforce needs of the region are met. In this regard, Workforce Boards have a valuable role to play in tracking the accomplishments and needs in various communities and helping to correlate these into a regional approach. This is not to imply control, but instead the promotion of collaboration, information sharing, outcome reporting, and replication. With an annual budget of approximately $25 million, which is for the most part, dedicated to specific programs and provision of child care, overall impact in a $33.8 billion regional economy by the Workforce Solutions East Texas will always be challenging. In the longterm, along with benefits for the employers and job seekers served, perhaps the greatest contribution Workforce Boards can make will be in the realm of leadership in promoting, coordinating, expanding and replicating community and regional solutions. WD Letter 22-16, Attachment 1 34