The Local Plan for the Southern Alleghenies Workforce Investment Area. PY 2012 to PY 2016

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1 The Local Plan for the Southern Alleghenies Workforce Investment Area PY 2012 to PY 2016 SECTION I: STRATEGIC PLAN A. THE VISION The Southern Alleghenies Workforce Investment Area (SAWIA) will be seen as a region that has advanced its economy, from one initially built on a foundation of coal, steel and iron, to one of growing and diverse industries, and other ancillary businesses, that utilize state of the art technology and demand a ready and welltrained workforce. Furthermore, the SAWIB and its many workforce partners will collaborate in support of a system that provides: Employers with a continued source of qualified workers and the necessary resources to ensure that their workforce remains competitive Jobseekers with access to current and relevant labor market information and appropriate career counseling that will help them to make smart decisions related to their career choices Young people with the services necessary for them to complete their high school education and secure additional training designed to successfully prepare them for the world of work Ready access to quality training programs that are designed to address the current and future skill needs of industry and allows workers to obtain relevant and stackable credentials that will permit them access to and advancement through career pathways B. OVERARCHING STRATEGIES The Southern Alleghenies Workforce Investment Board, a leader and active partner in workforce development initiatives, stands committed to lead initiatives designed to enhance the skills of the workforce in order to meet the needs of the region s employers to compete in a world economy. 1 Embodied in the SAWIB s Strategic Action Plan are specific goals designed to help the region realize the vision. These include: Enhance the SAWIB s leadership position by increasing the board s depth and knowledge base of workforce and economic development issues Maximize the return on investment of WIA and other funds and support effective and efficient service delivery to employers and jobseekers Support, create and maximize training opportunities and alternatives Proactively engage decision makers in improving the economic vitality of the region As available federal dollars continue to decrease, it will become all the more vital for the SAWIB to use its vision to help guide the Board s investments in workforce preparation, skill development, education and training and other initiatives. Based on its vision, and in alignment with its Strategic Action Plan , the SAWIB expects to engage in the following: Development and distribution of pertinent labor market information designed to help jobseekers, including youth, make informed choices related to their career and training choices Paid and unpaid work experience for youth designed to prepare them for the world of work along with continued support for the Southern Alleghenies Career Education Partnership Use of recognized assessments, such as WorkKeys. This credential has been endorsed by more than 280 of the region s employers and is used to help identify and recognize key skill areas. Once 1 Southern Alleghenies Workforce Investment Board Vision Statement, adopted February 12,

2 identified, this information can be used by the region s PA CareerLinks to not only understand their customer s skills base but also improve referrals to hiring employers Continued support for Industry Partnerships. These entities will provide vital information related to current and future skill needs as well as skill gap identification. Included in these established partnerships are Healthcare, Advanced Materials and Diversified Manufacturing, and the Business and Education Consortia which bring together educators and employers Financial support for training/retraining. The SAWIB has long held that the key to improving the economic vitality of the region rests in training/retraining the emerging and incumbent workforce. Each year it has and will continue to commit significant financial and human resources in support of formal and informal training. The vehicles for these training opportunities will include but are not limited to: o Individual Training Accounts o On-the-Job Training Contracts/Keystone Works o Core workshops offered to employers and jobseekers through the PA CareerLink system o Industry Partnership incumbent worker training programs o Adult basic education and literacy services o Adult Degree Completion Initiative o WEDnet Guaranteed Free Training o ShaleNET Training The SAWIB believes that it is already well-positioned to help achieve the governor s vision for Pennsylvania as expressed in the commonwealth s Integrated Workforce Plan and included in JOBSFirst PA. Pennsylvania is committed to cultivating a demand-driven workforce to provide employers with resources they need to compete and grow. This sentiment is also expressed in the SAWIB s vision statement quoted on the previous page and is embodied in its strategic action plan and activities noted above. The SAWIB will ensure that its investments and strategies are in alignment with the governor s vision. While the local workforce system is not in a position to address business-friendly tax and legal reforms the SAWIB has consistently appropriated significant financial resources to ensure that employers have a highly-skilled workforce trained for high-priority and in-demand occupations. As a developer and supporter of industry-led consortia or partnerships since 2000, the SAWIB will help to ensure that the region continues to build and utilize employer driven partnerships with industry. Furthermore, the SAWIB is uniquely positioned to support the governor s desire for innovative economic and workforce development services. Many members of the SAWIB, its staff, and CareerLink Title I subcontractors are active members of economic development boards and advisory councils. Furthermore, the SAWIB and its staff are considered a division of the Southern Alleghenies Planning and Development Commission, the region s Local Development District (LDD). By virtue of this relationship, there is a constant connection to business and economic development resources, not to mention a seat on the Partnership for Regional Economic Performance (PREP) steering committee. In light of ever decreasing federal allocations, the SAWIB and its many workforce development partners recognize the need for increased coordination and maximization of resources. Strategies to be employed include: Continued active recruitment of the region s key players from industry, economic development, and education for membership on the SAWIB. Through their participation, the SAWIB will realize greater opportunities for closer coordination and cooperation with their home agencies/organization. It will also place those in the know in positions that will allow them to help direct local workforce policy and investment. Recognition not only as a repository for up-to-date and relevant labor market information but also as a distributor of the same. Some examples of the types of documents that will be distributed include: o Southern Alleghenies Fast Facts o Industry Cluster Updates o County Demographic Profiles o Labor Market Updates o Unemployment Reports o Radial Analysis related to available workforce 2

3 o o Migration and Aging Reports Occupation Projections This information will continue to be shared with and produced for employers, jobseekers, PA CareerLinks, economic developers, and educators. Through the availability of accurate and relevant labor market information, targeted investments can be made to ensure that existing skill gaps are lessened and that current and future workers have the skills necessary to meet the needs of the region s employers. Continued support for and participation in key regional initiatives such as Industry Partnerships, BASICS (Businesses and Schools Investing in Cooperative Solutions) which brings educators, employers, economic developers, and chambers of commerce to a common table to address youth career awareness/education/workforce pipeline issues. Continued engagement through member service on the region s key boards, committees, and organizations. These include School to Career advisory councils, economic development council boards of directors, Carl Perkins committees, school boards, industry consortiums, social service organizations and faith and community-based organizations board of directors. Active participation serves to establish open lines of communication to a variety of workforce partners, helps reduce chances for service duplication, and promotes opportunities for greater leveraging of resources. Continued support for an effective and efficient one-stop centered system that meets the needs of its business and jobseeker customers including the presence of an enhanced Business Services Team (BST). The SAWIB has set and communicated high expectations regarding service delivery for its Title I providers as well as for the PA CareerLinks as a whole. Monthly scorecards designed to monitor PA CareerLink progress in goal attainment will continued to be utilized. Increased and improved integration among all partners will be expected. Continued support for training/retraining that results in industry recognized credentials. The SAWIB has long believed that targeted training for the region s emerging and incumbent workforce is a key to supporting the needs of business and industry and thereby improving the economic vitality of the Southern Alleghenies region. Relevant labor market information, combined with industry representative input, will help to insure that scarce resources are invested appropriately and are likely to result in a strong return on that investment= a family-sustaining job for the training completer and a skilled worker for the employer. Opportunities for leveraging resources will be greater, through the workforce partner connections identified above. C. ECONOMIC & LABOR MARKET ANALYSIS 2 The economy in the Southern Alleghenies region continues to transition from recession to recovery, while dealing with the many issues commonly associated with a prolonged severe downturn. Looking back, the recession deepened across the region in its latter stages as job losses spiked before giving way to shallower declines in Since that time, slow improvement is taking place despite uneven progress as some industries remain depressed and others have bounced back comparatively well. In 2007, the year that the recession began, the total jobs numbered 214,400. From that point forward, they declined on an annual average basis through 2010, reaching a level of 207,500. Through the first half of 2012, the job level recovered to 208,600, indicating that the gap has slowly continued to close despite lacking consistent month to month improvement. The total jobs number includes self-employed individuals and extended proprietors. 2 Central Pennsylvania Workforce Development Corporation, Economic Modeling Specialists International, Pa Department of Labor and Industry, QCEW Employees, Non-QCEW Employees, Self-Employed & Extended Proprietors - EMSI Class of Worker, and U.S. Census Bureau, LEHD program 3

4 The volume and rate of unemployment has fallen from its peak of 9.7 %, but remains significantly above the starting point of the recession. Continued improvement throughout this time period may be viewed as positive however, one should not lose sight of the long term ripple effects normally associated with prolonged periods of joblessness. The pace of the economic recovery has prompted some concern about the recovery s sustainability. Sustained improvement would depend on a number of factors that provide momentum to the recovery such as improved confidence, job creation, and other more enduring sources of demand such as consumer spending, and increased business activity. Population and Labor Force Trends: Shifts in the size and composition of the population will continue to influence the regional labor force. Several factors including slower growth and an aging population will impact future trends. Population projections to 2030 indicate an overall decline of 13 percent (Source: Penn State Data Center). This declining trend has been in evidence over the last several decades. An analysis of the changes in age group cohorts indicates that the 50 to 69 year olds and the 85 and over were the only categories projected to increase. The absence of growth among the younger population will continue to negatively impact future labor force participants while resulting in gaps between the labor force needed by area employers and the labor force found within the region. This trend will be further complicated by the exodus of baby boomers, those born during the period from 1946 to As the baby boomers grow older, so does the labor force whose median age is estimated to be 41 years. The labor force across the region has fluctuated up and down in a very narrow range largely reflecting the recessionary impact on the economy. With no established cyclical pattern, the labor force will either expand or contract in response to prevailing economic conditions. Locally it did both, albeit by very small margins. Most recently the economy s stalled growth is associated with a number of factors. Namely, losses attributed to an extended period of poor economic conditions, the absence of overall job growth, and a growing number of non-participants who are no longer looking for work in the belief that they would not find a job, became discouraged and dropped out. The labor force participation rate or total number in the labor force as a percent of the population aged 16 and over to include all of the Southern Allegheny Workforce Investment Area is 57% which is below both the state and national rates. Jobs: Despite the future positive job predictions particularly at the national level, there is a lot of ground to be made up in a return to the pre-recession levels. In particular, the service producing industries have collectively lost a substantial number of jobs throughout the recession and are slow to see them return. The sectors hardest hit include trade, business services, and leisure and hospitality. Through the first half of this year the job level in the service sector averaged 187,709. This is up 0.7% from 2011, and accounts for an increase of 1300 jobs. Projections indicate that the majority of all new jobs will be created in the service producing industries. Manufacturing has changed dramatically over the past decade, a period marked by deepening globalization and technological advances. Many of these changes have evolved across the region due in part to a more diversified industrial base. In keeping with this trend the area has experienced the arrival of a host of new industries led by defense manufacturing, technology-based support companies, and research firms. The region has also witnessed the restructuring and expansion of numerous existing manufacturing facilities that continue to underscore the importance of maintaining a strong manufacturing base in this region. Manufacturers that now account for nearly 10 % of the total jobs across the area have seen their job levels stabilize. While each county has its unique industry mix, it appears that with few exceptions, the employment levels are returning to normal levels. However, the other two components of the goods producing sector, construction and mining, have not followed this pattern. Construction continues to struggle to regain earlier jobs lost which in part can be attributed to the housing market. The mining industry that was perceived to have a bright future within our region has recently experienced significant layoffs. Unemployment: 4

5 The unemployment situation across the region is showing small increments of improvement but still averaging 8% through the first half of this year. The region s jobless rate has been trending close to both the state and national figures throughout much of this period. A more concerning aspect of the unemployment situation has been the number of long-term unemployed, those jobless beyond 26 weeks. The long-termers impact most all industries and occupations and account for a very substantial portion of all unemployed workers across the region. However, their numbers have consistently been on the decline. Other groups affected by the jobless situation include discouraged workers, and involuntary part timers. A profile of the area s unemployed reveals that they reflect the characteristics of the workforce as a whole. They are of prime working age and have an extensive work history. They come from a variety of industries and occupations although a disproportionate share come from the industries hardest hit by the recession. Key Industries: While many industries that make up the regional economy are of key importance, the three industries that standout are manufacturing, health care and the natural gas industry. Manufacturing across the region has undergone a restructuring that was designed to improve its competitive position. Some companies have expanded into manufacturing based technology while developers have increased efforts to make inroads in attracting new companies through the development of new product lines. Health care is the leading industry in terms of employment in the Southern Alleghenies Workforce Investment Area. The demand for health services will continue to grow across our region creating a broad array of job opportunities. As the natural gas industry continues to boom, it will hold a tremendous potential for decades to come. While the highest concentration of activity is currently in the southwest corner and the northern tier counties, the Southern Alleghenies area continues to position itself to play a key role in future operations. Economic Challenges Facing the Area: Economic challenges facing the area cover a comparatively broad spectrum that includes: o Closing the gap between the labor force needed by area employers and the labor force found here. o Developing ways to attract and retain younger workers for our area. o Creating new employment opportunities through a more diversified industrial base and the attraction of new industries. o Developing strategies for providing training opportunities in both Green and STEM Occupations. According to the Center for Workforce Information and Analysis, there are 222 STEM occupations in the Southern Alleghenies Workforce Investment Area. The employment in 2008 was 40,430 and is projected to grow to 42,070 in That is a percent change of 4.1%, compared to 2.1% growth for all occupations in the area. There will be 1,009 openings in STEM occupations each year. The Department of Labor and Industry has determined that 483 annual openings are expected in the region for green occupations. Clearly investments in STEM-related training will pay significant dividends now and in the future. The current local economy is built around a number of very diverse industries anchored by Healthcare which is the largest industry both in number of employers and number of employees. Business and Financial Services is a close second followed by Education, Logistics and Transportation, Advanced Materials and Diversified Manufacturing, Building and Construction, Information and Communication Services, Energy and Corrections. The industries listed below account for 52% of the total jobs. All other industries make up the remainder with the largest concentrations being in the service sector, primarily retail sales, accommodations and hospitality. Health Care Number of Employers 1,137 Number of Jobs 29,066 5

6 % of Total Region s Jobs 12.6% Avg Annual Wage $49,574 Est. Cluster Payroll $1,440,918,000 Location Quotient 1.05 Business and Financial Services Number of Employers 1,560 Number of Jobs 25,200 % of Total Region s Jobs 10.7% Avg Annual Wage $32,500 Est. Cluster Payroll $795,000,000 Location Quotient.66 Education Number of Employers 630 Number of Jobs 17,800 % of Total Region s Jobs 10.3% Avg Annual Wage $32,200 Est. Cluster Payroll $572,400,000 Location Quotient.95 Logistics and Transportation Number of Employers 320 Number of Jobs 9,930 % of Total Region s Jobs 4.2% Avg Annual Wage $51,900 Est. Cluster Payroll $511,200,000 Location Quotient 1.55 Advanced Materials and Diversified Manufacturing Number of Employers 209 Number of Jobs 9,673 % of Total Region s Jobs 4.2% Avg Annual Wage $54,625 Est. Cluster Payroll $528,338,000 Location Quotient 1.05 Building and Construction Number of Employers 564 Number of Jobs 8,684 % of Total Region s Jobs 3.8% Avg Annual Wage $50,428 Est. Cluster Payroll $437,917,000 Location Quotient 1.43 Information and Communication Services Number of Employers 285 Number of Jobs 5,322 % of Total Region s Jobs 2.3% Avg Annual Wage $50,125 Est. Cluster Payroll $266,765,000 6

7 Location Quotient.69 Energy Number of Employers 169 Number of Jobs 4,620 % of Total Region s Jobs 2.0% Avg Annual Wage $69,977 Est. Cluster Payroll $323,294,000 Location Quotient 1.24 Corrections Number of Employers 9 Number of Jobs 3,100 % of Total Region s Jobs 2.0% Avg Annual Wage $53,700 Est. Cluster Payroll $166,700,000 Location Quotient 4.28 The data is broken into two groups: service industries and goods producing industries. In the short term, service industries, including utilities are projected to grow by 2.5% while goods producing industries are projected to decline by 4%. In terms of the number of jobs, Healthcare, Finance and Insurance, Administrative and Support and Waste Management and Remediation Services, Professional, Scientific, and Technical Services, and Private Educational Services are all projected to add jobs with the largest percentage increase (10%) being in Finance and Insurance. Looking out to the end of the decade, the trend continues in the industries listed above with the exception of Private Education which is replaced by Accommodation and Food Services. Again, Finance and Insurance has the largest projected percentage gain at 21%. The industries projected to shows declines in total number of jobs in the short term are Manufacturing, Retail Trade, Other Services (except Public Administration), Agriculture, Forestry, Fishing and Hunting, and Information. Manufacturing jobs are projected to decline by 9% with the other industries reflecting small declines in the 1%-2% range. Once again, the downward trend continues through 2022 in Manufacturing, Other Services (except Public Administration), Retail Trade, Agriculture, Forestry, Fishing and Hunting, and Information with the Manufacturing industry losing the most at 17%. The local occupation availability information presented was developed using the High Priority Occupation List as a base and then further screening the list for those occupations that have a positive trend in terms of percentage gain through 2020 and also have a significant number of annual openings. Registered Nurses, Office Clerks and Heavy/Tractor Trailer Truck Drivers head the list with 143, 131, and 108 projected annual openings respectively. Those occupations are followed closely by Customer Service Representatives, Licensed Practical and Licensed Vocational Nurses, and Pharmacy Technicians with projected number of annual openings at 74, 51, and 36 respectively. Hairdressers, Hairstylists and Cosmetologists, Bookkeeping, Accounting and Auditing Clerks, and Sales Representatives have annual openings ranging from 30 to 53. Several other healthcare occupations such as Mental Health Counselors, Medical/Clinical Laboratory Technologists and Technicians, Child, Family and School Social Workers, Healthcare Social Workers and Mental Health and Substance Abuse Social Workers are showing positive growth trends as well as annual openings in double digits. There are also opportunities locally for a professional occupation such as Pharmacist, which is expected to grow by 23%, have 14 annual openings and a salary range between $89,000 and $114,000. The critical occupations for the local economic base are varied and diverse. In 2012, a review of the top five of 20 employing occupation groups based on 2-digit SOC codes reveals that 47.5 % or 109,882 individuals are employed in the following groups: Sales and Related Occupations, Office and Administrative Support, 7

8 Transportation and Material Moving, Food Preparation and Production. Those same occupation groups in 2015 are projected to have fewer total jobs but still have annual openings between All the groups except Food Preparation and Serving have average wages that exceed the family sustaining wage for the area. Looking more closely at specific occupations specifically the 5-digit codes, the top 20 occupations account for 73,765 jobs or 32% of the total present jobs in the area. Looking forward to 2015, there is a small increase in the total number of jobs however the top 20 percentage doesn t change. Critical occupations in the area that are projected to increase and have average wages above the family sustaining wage are Registered Nurses, Truck Drivers(Heavy and Tractor-Trailer), Elementary Education Teachers, Real Estate Agents and Carpenters. Other occupations in the top 20 that are growing but typically represent entry level positions that don t pay family sustaining wages include Office Clerks, Combined Food Preparation and Serving Workers, Nursing Aides, Orderlies and Attendants, Home Health Aides and Construction Laborers. The current and future skills needed for employment in the LWIA detailed below are a result of input from employers and economic development and an analysis of the most common education levels held by current workers. Employers want and need workers with some type of post-secondary training. That training should focus on intermediate to advanced skill sets that provide specific training targeted to a specific work environment and not just a general occupation. Some of the specific skill gaps noted include the lack of general work readiness, basic math, higher level math, writing, grammar, spelling, and computer proficiency. The education level of the area s current workforce of 231,000 is divided across 12 distinct levels ranging from short-term on-the-job (OJT) training to first professional degree with 82% or 189,400 holding an associates degree or less. Bachelor degrees are the largest group of the remaining workers with 10.6% and Bachelor with experience, Master s, Doctoral, and first professional degree rounding out the other 7%. Workers in jobs that require only short-term OJT represent the largest portion of the total workforce at 37% followed by moderate-term OJT at 16.5%, long-term OJT at 8.5%, work experience in a related occupation at 8.4%, postsecondary vocational awards at 7.8% and finally associate degrees at 3.9%. The same analysis used for the current workforce, when applied to projections for 2015 and 2022, reveals that the overall requirements remain virtually unchanged. Some groups percentages were lower, some groups were higher but none changed by more than 1%. The current and projected employment opportunities in the Southern Alleghenies are dominated by occupations in just 10 of the 20 2-digit SOC occupation groups noted in critical occupations analysis presented earlier. Total employment is projected to reach 234,383 by 2015 with 7,831 annual openings. The openings in the top 20 occupations in those 10 groups represent 33% or 2,586 of the total openings. Service occupations are most heavily represented followed by healthcare related, business and financial service, logistics and transportation and education. Managers, supervisors, and office clerks cut across all industries. Cashiers, retail sales agents, food preparers, registered nurses and waiters and waitresses occupy the top five spots in expected annual openings. Those openings range from 300 to 161 respectively. The next group is represented by personal financial advisors, heavy and tractor-trailer truck drivers, securities agents, real estate agents, customer service representatives and personal and home care aides. The annual openings in that group range from respectively. On the lower end, laborers and freight handlers, managers, office clerks, elementary education teachers, first line supervisors, licensed practical nurses, insurance agents and child care workers complete the top 20. The last group has annual openings ranging from respectively. The job skills necessary to obtain employment in the near future and looking out a decade are best described in terms of the education level necessary for those occupations. By comparing the education level of current job holders to the occupational openings projections for the time periods noted, the analysis suggests that basic skills along with the ability to learn new concepts that produce certificate level ready applicants will be the most sought after attributes in future jobseekers. Input from employers that indentified basic math, writing, grammar, spelling, computer proficiency, and manufacturing skills as notable skill gaps reinforces the analysis. The comparison of those current education levels, the most common level of education/training held by all workers in the occupation, shows that in 2012, 82% of workers have educational levels less than a bachelor s degree. That percentage is projected to drop slightly, to 80.8%, by Focusing on the projected openings 8

9 for the next ten years, the percentage again declines slightly to 79.3%. A level by level comparison is shown below: Education Level Short Term OJT 38.7% 39.4% Moderate Term OJT 13.6% 13.8% Long Term OJT 6.3% 6.6% Work Experience 8.2% 8.0% Postsecondary Voc. 7.8% 7.4% Associates Degree 4.0% 4.1% Bachelors Degree 13.3% 12.9% Bachelors + Work Exp 3.5% 3.4% Masters Degree 1.9% 1.7% Doctoral Degree.8%.9% First Professional Degree 1.2% 1.1% The levels above suggest that there may be two things at work here. One is that the job openings do not have high educational level requirements and the second is that if jobseekers have a good basic educational foundation and work ethic, the employers are willing to train them. The population in the LWIA is aging. The trend has been ongoing and is projected to continue which may be one of the factors impacting the skills mismatch in the area. The oldest cohort of workers from the baby-boom generation (individuals born between 1946 and 1964) turned 65 in 2011, and the youngest will reach that age in Normally, the increasing wave of retirements opens up opportunities for younger workers. The current economic climate has resulted in many older workers choosing to remain in the workforce, thereby impacting the jobs horizon for younger workers. However, baby-boomers will eventually leave the workforce, taking with them key knowledge, skills and abilities. According to population figures from the American Community Survey and the US Census Bureau provided by the Central Pennsylvania Workforce Development Corporation research partnership, far fewer youth (ages 16-29) will be available to enter the labor market to replace those workers (ages 65+) creating a shortage in the pipeline, especially in industries such as manufacturing and healthcare. This shortage is projected to manifest itself in next few years. The actual numbers are even more striking. The age cohorts 65+ in the LWIA total 82,680 and the age cohorts total 51,797. The difference is a remarkable 30,883 meaning there will not physically be enough people entering the workforce to replace those who leave. That does not take into consideration skills or training. Given that the population figures are trending negatively, a closer look at the current incumbent workforce revealed the same thing. There are fewer workers between ages (75.260) and (80,012) again indicating the workforce is older, and, with fewer replacements in the pipeline, will increase competition for workers. The chart below displays the age breakdown of the incumbent workforce. Current Demographics of Incumbent Workforce Southern Alleghenies Total 167, % 5,395, % Male 82, % 2,674, % Female 84, % 2,720, % , % 126, % , % 263, % , % 321, % , % 1,081, % PA 9

10 , % 1,113, % , % 1,317, % , % 918, % 65+ 7, % 253, % The skills necessary for current and projected jobs were outlined earlier in terms of educational requirements and that naturally causes the need to look at where the workforce stands in terms of current and future educational attainment levels. Currently, the percentage of the population with a high school diploma or less is not sufficient when compared to the current jobs that require that level of attainment. The difference between the need and the availability is 7.9% meaning the area is undereducated for that portion of the workforce. The percentage of the population with some college or associate s degree exceeds the requirement by 10%. Because it is a comparison between population and requirements, it doesn t necessarily mean people are under employed, however, it does mean that there are mathematically enough people to meet the demand. In the area of bachelor s degrees and higher, the same situation exists as in the high school diploma or less category. There are less people in the LWIA with bachelor s degrees (15.6%) than there are jobs (17.9%) that have that attainment level as a requirement. An analysis of the same data sets for 2015 indicates that there should be a slight improvement in the percentages but the outcome is the same. Jobs that require a high school diploma or less (68.7%) exceeds the percentage of the population (62.7%) that have the necessary attainment level. Individuals with some college or an associates degree (21.8%) outpaces the jobs (12.2%) that require it and those with a bachelor s degree (15.5%) fall short of the requirement of 19.1%. Frequent discussions with industry partnership members, economic developers, PA CareerLink staff and business partners, along with input from customer satisfaction survey results have helped shape the analysis of the workforce investment needs of business, jobseekers, and workers. Generally, businesses need a responsive system that can react quickly with qualified applicants that help the company gain or maintain a competitive position in the marketplace or take advantage of new opportunities. Additionally, the business community needs and wants applicants with some type of post secondary education built on a strong basic background in math, English language skills and computer proficiency. Jobseekers need access to a larger pool of employers willing to make use of programs such as On-the-Job Training and Keystone Works that can create opportunities for jobseekers to showcase their work ethic, skills, and abilities in order to secure full-time family sustaining employment. Incumbent workers need the opportunities that come with flexible industry partnership training to maintain proficiency, upgrade skills or learn new ones in order to provide more efficiency to their employer resulting in increased profitability. During the three year period that covers , an average of 14,771 more people left the region daily for work than came into the region, according to the U.S. Census Bureau. The counties of Allegheny (13%), Centre (8.3%), Westmoreland (8.1%), Indiana (6.2%) and Franklin (4.9%) lead the list of destination counties for the 51,445 workers leaving the LWIA for work every day. Of the 36,674 workers commuting in every day, they primarily come from Allegheny (10%), Westmoreland (9.6%), Clearfield (7%), Centre (6.5%), and Indiana (6.3%) counties. Workers leaving the area are heavily represented by individuals who are years of age and earn from $1,251 to more than $3,333 per month. Ironically, the majority of workers coming in on a daily basis exhibit the same two characteristics. D. KEY PRIORITIES AND GOALS The SAWIB has identified several key workforce development priorities for the region. These include: Enhancing the SAWIB s leadership position by increasing the board s depth and knowledge base of workforce and economic development issues. This includes developing a relationship with a major research graduate school for the purpose of data mining and forecasting employment trends; creating and promoting a repository for labor market information and developing and supporting vehicles by which to communicate the information. 10

11 Maximizing the return on investment of WIA funds and support effective and efficient service delivery to employers and jobseekers. Included within the priority are identifying alternative funding sources; continual and critical evaluation of the current PA CareerLink system; and service delivery image enhancement by assuring consistent high quality performance. Supporting, creating, and maximizing high quality training opportunities and alternatives. This includes ensuring that maximum training opportunities/choices are available for PA CareerLink customers; reviewing policies to ensure that they continue to meet the needs of the one-stop s customers; determining the effectiveness of training by evaluating outcome data; and seeking alternative and flexible funding to support jobseeker as well as incumbent worker training. Proactively engaging decision makers in improving the economic vitality of the region. This includes educating SAWIB and workforce partners on matters related to legislation, policy, and opportunities for service enhancement and expansion; recruiting local and state decision makers and/or their staff to sit on the SAWIB and actively participating in workforce forums; and continued support Industry Partnerships, regional steering committees and individual county consortia. Through the implementation of its Local Plan, the SAWIB will align its strategies and initiatives with the Commonwealth s State Integrated Workforce Plan. This will be accomplished through: Analysis of the local labor market, including the identification of growth industries and occupations, and skills gaps, and high priority occupations. Continued support for the development of strategic industry partnerships; the system must be demand driven. The SAWIB s fulfillment of its responsibilities as defined by the Workforce Investment Act. The SAWIB s commitment to ensure that the region s PA CareerLink s provide services to all adults, dislocated workers, youth, and businesses in the most effective and efficient manner. The SAWIB s efforts to provide career awareness/career education to the region s youth. This will include further support for the Southern Alleghenies Career Education Partnership (SACEP). The SAWIB s support for training/retraining of the region s incumbent and emerging workforce using its WIA Title I resources, as well as securing flexible dollars for jobseeker and incumbent worker training. Special emphasis will be given to assisting the long-term unemployed. An on-going analysis of the local economy and labor market will ensure that these financial resources are aligned to support training in growth occupations that pay a family sustaining wage. The SAWIB s Performance Management System designed to assist WIA Title I and PA CareerLink partners meet and exceed the Common Performance Measures; participation in PA CareerLink Quality Review visits, so as to ensure that services provided through the one-stop are of the highest quality possible The SAWIB s commitment to continued industry cluster analysis, and use of its findings in directing financial resource investment. The further refining/defining the region s high priority occupations. The SAWIB s, with its education partners, promotion of the need for higher education and life long learning. Included in this will be participation in an exciting Degree Completion Initiative. These strategies will support the best interests of jobseekers, employers, and economic developers in a variety of ways. They include: Providing ready access to the labor market information that jobseekers, and youth, need to make informed career decisions, employers need to make important business decisions, and economic developers require to attract new business investment.. Staff to the SAWIB will serve as the point of contact for labor market information requests. Information will be disseminated to PA CareerLinks who in turn will provide the information to jobseekers and employers. Staff will work directly with economic developers in order to customize the information to meet their specific needs. WIA Title I and SAWIB staff will collectively reach out to educators and youth Providing significant funding to assist eligible jobseekers secure training in High Priority Occupations. Information from the Center for Workforce Information and Analysis, data provided through the 11

12 SAWIB s participation in an Industry Cluster Research Consortium and input provided by Industry Partnership participants will be used by the SAWIB and PA CareerLink to help customers make informed career choices and guide the investment of these training dollars. Securing flexible funding designed to meet the training needs of the Industry Partnership participating employers. Each year, economic developers, SAWIB, and PA CareerLink staff, who work directly with the IP members, will survey employers to determine and categorize training needs. This inventory will then be used to direct investment of incumbent worker training dollars. Ensuring that jobseekers and employers receive the highest quality of service provided through the regions one-stops. Working with the SAWIB s One-Stop Operator Consortium, reviews of PA CareerLink Scorecards will take place on a monthly basis to ensure that the one-stops are working towards their established goals, which are tied directly to the SAWIB s strategic plan and indirectly to the State Integrated Workforce Plan. In addition to the strategies listed above, the SAWIB will help to meet the workforce needs of the region s employers, including small businesses and new and emerging industries. This will be accomplished through: Enhancement of a referral network that includes the PA CareerLink, Southern Alleghenies Planning and Development Commission, Saint Francis Small Business Development Center, local SCORE chapters, economic development agencies, industrial development centers, industrial resource centers, the industrial modernization center, and when appropriate, The Steel Valley Authority and its Strategic Early Warning Network. Employers, whether they are small or large, new or well-established, will have a tremendous network to look to for assistance. The PREP consortia of the Southern Alleghenies, will serve as the tie that binds all the organizations together and its scheduled meeting the obvious forum to update the partners on activities and opportunities. Ensuring that PA CareerLinks have resources available to assist these companies with their workforce development challenges. These resources include but are not limited to funds to support Core workshops for businesses, up-to-date labor market information particularly relevant to new industries, and a referral network that links new companies with the Small Business Development Center, local development district (source of low-interest loans, export assistance), and other entities whose mission it is to help new business start-ups. See above for more information on the network. Working directly with the region s economic development agencies and PA CareerLinks to assist with the recruitment of new industries. To date, assistance has included the provision of labor market information designed to address specific questions posed by site selection committees, a guarantee from the PA CareerLinks to provide specialized recruitment services including worker assessment through WorkKeys, and information on training opportunities including on-the-job training and incumbent worker. The SAWIB will continue its extensive efforts to engage all partners in the region s workforce development system. Examples of such engagement will include: Participation on the SAWIB by the region s key leaders from secondary and post-secondary education, industry and economic development. SAWIB and staff participation in the regional BASICS (Business and Schools Investing in Cooperative Solutions) which brings educators, industry representatives, and chambers of commerce to a common table to address youth career awareness/education issues. SAWIB and staff participation in the region s industry partnerships/consortium initiatives. The SAWIB was instrumental in the creation of industry driven consortiums developed around healthcare and manufacturing. The SAWIB will continue to occupy a seat at the consortium meetings and facilitate the quarterly meetings of the regional steering committees of the partnerships, so it can better understand the needs of the industries, align its resources to meet those needs, and encourage participation in the region s public workforce system. The SAWIB and its staff will continue to engage its workforce development partners through service on some of the region s key boards, committees, and organizations. These include school to work advisory councils, economic development council boards of directors, Carl Perkins committees, school boards, 12

13 industry consortiums, social service organizations and faith and community based organizations board of directors to name just a few. Active participation by board members and staff serves to promote open lines of communication between workforce partners and enables WIB members and staff to bring workforce related issues to a variety of forums for discussion and strategic planning. Active SAWIB staff participation on the Adult Basic Literacy Education Coalition(ABLE) for the Southern Alleghenies along with its Career Pathways Project Through its participation in a multi-wib research consortium, the SAWIB and its staff will continue to collect and provide up-to-date local labor market information to all partners, including industry, education, and economic development. The Board will continue to position itself as a recognized resource for this valuable information. The SAWIB has long employed sector strategies to effectively address the needs of the region s employers. In 2000, the SAWIB assisted in the development of industry-driven consortia; today these are called Industry Partnerships. These were built and around and continue to support those industries most significant to the area in terms of total employment and wages. They include Healthcare and Advanced Materials and Diversified Manufacturing. Momentum is building around the energy sector to include wind power and natural gas; the formation of an Energy partnership is currently under consideration. Through the bimonthly meetings of the established partnerships, the SAWIB is able to gain valuable insight into the needs of the partner industries. This information is then used to direct the investment of training dollars, to assist both jobseekers and incumbent workers, and help to ensure that the companies have access to a skilled workforce. Each year, the SAWIB allocates a significant portion of its WIA Title I and Rapid Response funds in support of Individual Training Accounts (ITAs) and On-the-Job Training (OJTs). In PY11, that amounted to over 22% of its budget. In addition, funding through a National Emergency Grant was also used to support On-the-Job training for the long-term unemployed. Through these significant investments, the SAWIB helps to ensure that individuals are trained in high priority occupations and are equipped to meet the needs of the region s targeted industries. The SAWIB also supports shorter-term training that is directed more at the soft skills employers say are most critical to their operations. Each year the region s one-stops partner with the local economic development agencies, chambers of commerce and other business organizations to survey the training needs of the employers. The responses are then used to organize Core Workshops which are funded by the SAWIB and held at the PA CareerLinks. They are free and open to everyone. Since their inception, hundreds of employers across the Southern Alleghenies have participated in and benefited from these training opportunities. In return, the SAWIB s one-stops have seen significantly more employer traffic and are viewed by many as the go to resource for all workforce-related assistance. In an effort to help address pipeline issues, the SAWIB sponsors activities designed to educate young people to career opportunities in the region s targeted industry clusters. What began as a week to recognize careers in the healthcare industry has grown to include careers in demand. Activities for youth include industry tours, career fairs, and panel discussions featuring representatives from some of the region s most well known employers. These events have helped to raise interest in manufacturing and vocational technical education. These strategies align well with the strategies laid out in the commonwealth s State Integrated Workforce Plan. Throughout the Workforce Plan there are numerous references to ensuring that education and training are targeted to high-priority occupations and that a pipeline of talent exists between the educational institutions and employers. Employer-driven training programs are stressed in both the LWIA and across the state. The SAWIB has always recognized the connection between a well-educated workforce and a strong, vibrant, and diversified economy. Even though its Title I allocation has seen yearly reductions, the SAWIB continues to commit a significant amount of its formula-based funding, for adults, dislocated workers and youth, in support of retraining. In addition to these dollars, the SAWIB has actively sought to leverage additional funding including participation in a National Emergency Grant for On-the-Job Training for the long-term unemployed. The SAWIB and its PA CareerLinks have also been active partners in a number of training initiatives that are 13