Professional Documents
Culture Documents
A Call to Action
A Call to Action
Contents
I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 3
II. Executive Summary. . . . . . . . . . . . . . . . . . . . . 4
III. The State of Missouri’s Workforce. . . . . . . . . . . . . 8
IV. Missouri’s Workforce System. . . . . . . . . . . . . . . . 20
V. The Path Forward: A Call to Action. . . . . . . . . . . . 24
A. Maximize Business Engagement. . . . . . . . . . . . . . . . . . 24
B. Focus on Improving Worker Skills . . . . . . . . . . . . . . . . . 26
C. Prioritize Regional Sector Strategies . . . . . . . . . . . . . . . . 30
D. Increase Career Awareness. . . . . . . . . . . . . . . . . . . . . 32
E. Attract and Retain More Talent . . . . . . . . . . . . . . . . . . . 34
F. Improve Communications for All Stakeholders. . . . . . . . . . . 36
This report was authored by Ted Partnership. His latest research in the Research Triangle region
Abernathy and Greg Payne, with has focused on Re-Imagining of North Carolina. Prior to that
contributions by Missouri Chamber Workforce Development, Making he assisted local governments in
of Commerce and Industry staff. Manufacturing More Competitive, North Carolina with economic
and analyzing 25 Years of Rural and business development efforts
Ted Abernathy is the Managing Economic Development Policy. and did land-use planning in the
Partner of Economic Leadership Shenandoah Valley of Virginia. At
LLC, a Raleigh NC-based company Ted received his bachelor’s degree Economic Leadership, Greg has
that helps businesses, and places, from the University of North lead efforts to develop economic
increase their competitiveness. Carolina at Chapel Hill and his strategies for county comprehensive
Ted has 38 years of experience master’s from Johns Hopkins plans, created regional workforce
directing economic development University. He is a graduate of the assessments, and analyzed national
and workforce development Economic Development Institute best practices in both economic
programs. From 2008-2013, Ted and is an Eisenhower Fellow for development and workforce
was the Executive Director of the global economics. development.
Southern Growth Policies Board,
a 42-year old public policy think Greg Payne joined Economic Greg received his bachelor’s
tank that provided research to states Leadership as Vice President degree from Duke University,
and communities across the South. following lengthy experience in and his master’s in Urban and
Before Southern Growth, Ted was commercial real estate, economic Environmental Planning from the
a practicing economic developer development, and land use University of Virginia. He is also a
for 28 years, including 8 years as planning. He worked for more Certified Commercial Investment
Executive Vice President/COO than 13 years as a commercial Member and graduate of the
for the Research Triangle Regional and investment real estate broker Economic Development Institute.
Introduction
Introduction
While predicting the economic students for the workforce,
future is difficult, one fact is certain: and only 30 percent agree that
The most successful businesses that Missouri attracts or can retain top
emerge over the coming decades will talent. One CEO summed up our
locate themselves where they have challenge recently when he told us:
access to a top-quality workforce. “We cannot find enough workers
We want to be sure Missouri is that with the right skills. There is a
In today’s fierce competition
place. mismatch, and unless somebody
for jobs, workforce has
does something soon, we won’t be
emerged as the most But first, Missouri must overcome able to grow in Missouri.”
effective weapon. The several challenges: stagnant
countries, states and regions workforce growth, the impending In the process of producing this
that recognize that fact and retirement of older workers, study, we collected quantitative
wisely invest in strategic a changing job landscape, a labor market data. We also reached
widening skills gap and a workforce out to education and workforce
workforce development and
development system in need of leaders, policymakers, and many
retention initiatives will win
retooling, to name a few. However, of our state’s employers to ask
the jobs war. The rest likely we have great assets too. Missouri what we need to do. Education
will be left behind. excels in many areas of the new and workforce leaders talked about
economy. We’ve earned good marks capacity, consistency, collaboration,
in graduation rates. We have regions better information and more
doing innovative work in many private-sector engagement.
workforce areas. Leadership of Policymakers stressed alignment,
Missouri’s workforce development return on investment and more
arm is energized and capable of public awareness. Employers
taking Missouri’s system to the next expressed concerns about the
level. quantity and quality of the available
workforce, the mismatch between
Workforce 2030 was commissioned what is being taught and the skills
to identify Missouri’s workforce they need, the overall lack of soft
challenges and, most important, skills among young workers, and
find innovative ways to address them the rising costs of finding talent.
and leverage our assets. This study
is part of the Missouri Chamber’s The task is daunting, but we can,
overarching Missouri 2030 strategic and we must, do better. By listening
One CEO summed up plan to reposition Missouri as a to the state’s employers, we know
our challenge recently global leader. Through research from students must be better educated
when he told us: “We Gallup, we know that the leading and more work-ready. We know
cannot find enough concern of Missouri employers businesses must be more engaged
workers with the is the availability of a qualified in developing the education and
right skills. There is a workforce. Gallup’s survey of 1,000 training curriculum and in offering
mismatch, and unless Missouri employers found that only more work experience. We also
somebody does 44 percent of business leaders are know that unless we work together,
something soon, we satisfied with the state’s availability share better information and take
won’t be able to grow of skilled workers. Only 15 percent aggressive actions, Missouri will not
in Missouri.”
agree that high schools are preparing win the jobs war.
2,600,000
2,577,111
2,500,000
2,400,000
2,300,000
2,200,000
2,100,000
2,000,000
June June June June June June June June June June June June
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
U.S. Annual
Rate of Labor
3.0%
Force Growth
2.6%
1950-2025
2.5%
2.0%
1.7% 1.6%
1.5%
1.2%
1.1%
1.0%
1.0%
0.5%
0.2%
0.0%
1950- 1960- 1970- 1980- 1990- 2000- 2015-
1960 1970 1980 1990 2000 2015 2025
Source: U.S. Bureau of Labor Statistics
BABY BOOMERS LEAVING where 53 percent of existing Most workers aged 45 to 64 will
LABOR FORCE workers are at least 45 years old. retire over the next 20 years. In
The aging cohort of 75 million Missouri, that total is 1.6 million
Baby Boomers – with 10,000 Between 1990 and 2016, Missouri’s workers. They will be replaced by
reaching retirement age every population aged 45 and older the 1.4 million people under age
day for the next 11 years - is grew by 52 percent. Over that 18 - IF Missouri can keep those
another major cause for concern. same period, Missouri’s population workers as they graduate from high
The impending retirement of younger than 45 grew by 2 percent. school and college.
experienced workers is particularly The chart on the next page
alarming in the skilled trades, illustrates this long-term disparity in
growth between age groups.
Cumulative Change
20 in Employment
by Age Group
Millions of Employees
15
55 and Older
10
5
0
Under 55
-5
-10
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Missouri’s Workforce
The State of
90% Growth 81.9%
80% by Age
1990-2016
70% 63.6%
60% 57.6%
50%
40% 36.2%
29.5%
30%
18.8%
20% 14.7% 14.9%
11.5%
10% 5.4% 5.1%
0%
-3.1%
-10% Age 0-17 Age 18-24 Age 25-44 Age 45-64 65 & Older All Ages
United States
Source: Missouri Census Data Center
Missouri
Missouri
Working-Age
(24-44) Population
Growth Projected
2016-2026
SLOW GROWTH AT that during the period from 1990 growth of 4.4 percent over the next
YOUNGER END OF THE to 2016, Missouri actually lost 10 years, Missouri is expecting only
LABOR FORCE population in this age group. 2.5 percent growth of its young,
On the other end of the spectrum, 24 to 44-year-old population. More
Missouri lags behind other states Looking ahead, the situation than 50 counties are expecting their
in the growth of a demographic differs in various parts of the state, population in this age group to
critical to our workforce – 25 to but overall, while the country is shrink.
44-year-olds. The chart above shows expecting modest young-worker
Labor Force
Participation
70.5% Rate
1977 - 2017
74%
70%
63.2% 67.2% 63.0%
66%
58%
1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017
SHRINKING WORKFORCE Missouri. This equals 6.4 percent MISSOURI’S SKILLS GAP
PARTICIPATION of the resident population ages Like most employers in America,
Missouri’s labor force participation 18-64, more than one-third higher Missouri businesses are concerned
rates over the past 40 years are than the national average. Rates about the widening skills gap
shown above. Well above the are significantly lower in some between the jobs that are available
national average 20 years ago, neighboring states: Illinois (4.0%), and the abilities of workers needed
Missouri’s participation rate has Nebraska (4.0 percent), Kansas to fill them. During our employer
decreased and is now close to the (4.6 percent), Iowa (4.6 percent) interviews, Gallup reported that
U.S. average. Numerous population and Oklahoma (5.7 percent). Two a common sentiment was “unless
sub-groups that can affect labor other neighboring states have among Missouri changes the way we are
force participation, including ex- the highest percentage nationally preparing people for the jobs of
offenders, disconnected youth who - Arkansas at 8.3 percent and the future, the current mismatch
are neither in school or working, Kentucky at 8.0 percent. between employer skill needs and
and the disabled. The numbers of the talents of the workforce will
people involved can be substantial, For Missouri to positively impact widen.”
as shown by the example of labor force participation, it will
those on disability. According to need to implement strategies Securing change in Missouri’s
the latest report from the Social to connect more individuals education system is a slow process.
Security Administration, disability in these groups with training, One employer interviewed described
beneficiaries totaled 235,205 in skills improvement, and work it as “trying to turn the Titanic
opportunities.
Education
35% Attainment
31.1% ADULTS OVER 25
30%
27.5%
25%
22.5%
21.0%
20% 18.8%
17.2%
15% 13.0%
11.2% 11.5%
10.4%
10%
7.6% 8.2%
5%
0%
Less than High school Some college, Associate Bachelor’s Graduate/
high school diploma only no degree degree degree Professional
Missouri
United States
Source: Census Bureau, 2016 American Community Survey WORKFORCE2030: A Call to Action 13
Missourians
Without a
The State of
Missouri’s Workforce
Post-Secondary
1,400,000 Degree
1,200,000
78.9
87.4
85.5
69.2
80.7
79.4
82.7
79.7
85.5
86.8
91.3
85.7
88.6
78.6
87.6
87.5
79.7
82.2
82.3
85.6
89.3
73.6
88.2
90.1
80.4
85.9
87.5
83.5
81.6
74.8
86.1
82.8
82.6
83.9
88.5
89.1
85.2
87.7
86.7
79.7
89.8
88.2
87
83
87
89
71
80
State High School
Graduation Percentages
100% (2015-2016 SCHOOL YEAR)
84.1% 89%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
USA
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Employment
2.7%
Manufacturing 1.6%
Trade, -0.8%
Transportation
& Utilities 0.3%
3.1%
Financial 1.6%
-0.6%
Government 0.2%
United States
Missouri Source: U.S. Bureau of Labor Statistics
Missouri’s Workforce
The State of
identified by the Brookings Institution as components of an emerging, knowledge-based sector. These include
computer systems design, architectural and engineering and aerospace.
Percentage
2006 2016 Change Change
Jobs Jobs 2006 - 16 2006-16
Change Percentage
2006 2016 2006- Change
Jobs Jobs 2016 2006-2016
Source: EMSI
18 WORKFORCE2030: A Call to Action
Missouri’s Workforce
The State of
Bottom 25 Shrinking Occupations 2006-2016
Percentage
2006 2016 Change Change
Jobs Jobs 2006-2016 2006-2016
Retail Salespersons 87,209 80,157 -7,052 – 8%
Team Assemblers 27,705 23,181 – 4,524 – 16%
Carpenters 17,433 13,093 – 4,340 – 25%
Construction Laborers 22,525 19,165 – 3,360 – 15%
Bookkeeping, Accounting and Auditors 35,681 32,860 – 2,821 – 8%
Military Occupations 38,069 35,704 – 2,365 – 6%
Heavy and Tractor-Trailer Truck Drivers 44,387 42,047 – 2,340 – 5%
First-Line Supervisors of Construction 9,254 7,369 – 1,885 – 20%
Trades and Extraction Workers
First-Line Supervisors of Production and 14,247 12,582 – 1,665 – 12%
Operating Workers
Postal Service Mail Carriers 8,794 7,167 – 1,627 – 19%
Office Clerks, General 55,366 53,740 – 1,626 – 3%
Childcare Workers 17,349 15,728 – 1,621 – 9%
Printing Press Operators 7,040 5,525 – 1,515 – 22%
Sales Representatives, Wholesale and 25,762 24,301 – 1,461 – 6%
Manufacturing, Except Technical and
Scientific Products
Shipping, Receiving and Traffic Clerks 11,744 10,302 – 1,442 – 12%
Painters, Construction and Maintenance 5,380 4,004 – 1,376 – 26%
Cutting, Punching and Press Machine 4,307 3,068 – 1,239 – 29%
Setters, Operators and Tenders, Metal
and Plastic
Sewing Machine Operators 3,238 2,039 – 1,199 – 37%
Post-secondary Teachers 27,532 26,378 – 1,154 – 4%
Counter and Rental Clerks 5,759 4,663 – 1,096 – 19%
Laborers and Freight, Stock and 48,305 47,252 – 1,053 – 2%
Material Movers, Hand
Editors 2,113 1,068 – 1,045 – 49%
Operating Engineers and Other 7,543 6,516 – 1,027 – 14%
Construction Equipment Operators
Cement Masons and Concrete Finishers 5,623 4,602 – 1,021 – 18%
Construction Managers 4,618 3,640 – 978 – 21%
Source: EMSI
Each of these charts demonstrates the impact of the changing jobs landscape. In the
economy, change is inevitable, but these days, change is happening at an ever-increasing
rate, putting a strain on the ability of workforce development efforts to keep pace.
WORKFORCE2030: A Call to Action 19
IV. Missouri’s
Workforce
System
No analysis of Missouri’s
workforce system
is complete without
a discussion of our
largest single workforce
development engine,
funded almost entirely by
All educational institutions play a
critical role in skills development.
A thorough examination of
K-12 schools and post-secondary
institutions as engines of workforce
pipeline development is warranted.
This report, however, is a broader
Missouri taxpayers. look at all training systems
including those outside of education
institutions. Therefore, it is
important to spend time discussing
Missouri’s Division of Workforce
Development (DWD) and some of
its topline initiatives.
CURRENT SITUATION/
CHALLENGES:
Worker shortages and skills gaps are
so common that more and more
companies are willing to invest time
and money to improve workforce
preparation. This presents a great
opportunity to bring the business
community into leadership roles
We know there is no “silver bullet”
and create a cutting-edge, demand-
that can easily solve all of Missouri’s driven workforce system.
workforce challenges, but certain
actions can improve our competitive As evidenced by the process to
position, better meet the needs of create sector strategies in all regions
our state’s employers and create of Missouri, there are varying
levels of employer engagement and
more opportunity. We recommend six
uneven involvement of workforce
strategies and 31 specific actions.
partners including local K-12
system leaders. Creating strong
business “champions” for workforce
development across the state is a
proven way to strengthen workforce
partnerships.
BEST PRACTICES:
Health Career Pathways 80,000 employees; and 10,000 Southwest Missouri’s WIB covers
Network. physicians. The partnership is seven counties and through a
A promising sector model is described as a truly industry-led partnership called Heartland 411
Hope Street Group’s work to sector solution to build, develop joins forces with neighboring
create a Health Career Pathways and manage a health care talent workforce boards in Southeast
Network. In the spring of pipeline. During the program’s Kansas, Northeast Oklahoma
2016, a meeting of health care first three years, 90 percent of and Northwest Arkansas to
and workforce leaders was participants who were enrolled improve the “Four-State Area”
convened at the White House. in one of three training tracks labor market. The WIB’s mission
Subsequently, the Health Career obtained employment shortly is also aligned with that of the
Pathways Network (HCPN) after completing the program. Joplin Regional Partnership for
began in seven founding regions economic development.
in six states. The goal is to GO Virginia.
create a more demand-driven Virginia is incentivizing regional SectorReady.org is a partnership
and competency-based career collaboration through the GO of employers, community
pathway approach in health Virginia initiative creating leaders, educators, and economic
care. HCPN participants strive nine economic development and workforce development
to increase the quality of new regions across the state. GO stakeholders. Career pathways
hires, decrease first-year turnover Virginia provides funding only are defined for manufacturing;
and increase advancement of for projects that demonstrate transportation, distribution and
employees from entry-level multicounty collaboration. To logistics; health sciences and
to middle-skill positions and date, the greatest focus is on services; information technology;
beyond. improving regional workforces. and construction. SectorReady.
org and the Southwest Missouri
Greater Metro Denver Missouri: SectorReady.org. WIB also heavily promote
Healthcare Partnership. An innovative example of the Certified Work Ready
With the Aurora Chamber of embracing sector strategies comes Communities program and
Commerce as a key partner, from the Southwest Missouri the NCRC. The SectorReady.
the Greater Metro Denver Workforce Investment Board org website features tangible
Healthcare Partnership involves (WIB), which has developed testimonials from Joplin-area
more than 125 hospitals, clinics the robust and informative businesses on the usefulness of
and other health care facilities; SectorReady.org website. assessing candidates through the
NCRC program.
result. Nations, states, metro areas A 2017 report, Talent Wars: What
E. Attract and
and cities are increasingly competing People Look for in Jobs and Locations,
Retain More
to attract talented individuals, by Development Counsellors
Talent
particularly young professionals, to International (DCI), examined
fill high-skill, high-demand jobs. the factors that impact a person’s
CURRENT SITUATION/
relocation decision. While everyone
CHALLENGES:
Even if Missouri develops the best would like to have a great job in
Talent attraction is an important
education and training models in a great place, with unlimited free
component of meeting employer
America, we will still need to attract amenities, job decisions ultimately
needs, yet Missouri may be missing
more people, especially skilled come down to a series of trade-offs.
the mark. When asked by Gallup
young professionals, to fill high- DCI’s survey revealed the most
whether Missouri attracted top
demand jobs. Missouri’s population important decision factors for
talent, only 30 percent of employers
growth in recent years has not been individuals (ranked on a 1 to 10
surveyed said yes.
among the national leaders, and scale) as shown in the chart below.
as the map in Section III showed,
Job growth and population are
many parts of the state are projected Although competition among states
increasingly concentrated in a small
to experience workforce losses in the is great, data and surveys indicate
number of major metropolitan areas
next decade. that most relocation decisions are
in the United States. Other parts
of the country are struggling as a
0 2 4 6 8 10
Source: DCI's Talent Wars: What People Look for in Jobs and Locations, 2017
34 WORKFORCE2030: A Call to Action
The Path Forward
driven by job availability, cost of BEST PRACTICES:
living, housing costs and availability,
and health care. With those Talent Attraction Campaigns: incentives to lure talented
priorities in mind, Missouri has a lot • Wisconsin recently announced professionals:
to offer but must be more aggressive a new $1 million talent • To support Oklahoma’s strong
in telling its story. Missouri cannot attraction campaign, using aerospace industry, the state
afford to be solely branded by the only social media, designed began an Aerospace Industry
national media. to persuade millennials to live Engineer Workforce Tax
and work in Wisconsin. The Credit program in 2009. Tax
Because employers — not campaign targets people ages credits benefit both aerospace
government agencies or visitors 21 to 35 in the greater Chicago companies that hire engineers
bureaus — are the main point of area, aiming to sell them on and the employees who are
contact for prospective hires, the Wisconsin’s career and lifestyle hired for up to five years. A
private sector must be involved in advantages. The state has a 2016 review found that the
any talent attraction effort. separate $6.8 million national program had contributed to the
talent campaign that focuses hiring of 4,200 workers with an
RECOMMENDATIONS: on transitioning veterans. average wage of about $80,000.
1) Develop a statewide public- • Talent attraction marketing • Chattanooga, Tennessee’s
private multimedia talent is also popular among “Geek Move” initiative in
attraction program geared metropolitan regions. Three 2011 sought to lure high-tech
toward professionals in high- years ago, the Metro Atlanta professionals with $11,250 in
demand fields. Chamber began to invest incentives toward the purchase
2) Develop and provide useful, heavily in a talent attraction of a home.
honest quality-of-life and and retention initiative. • Financial incentives for
community amenities Raleigh, North Carolina’s doctors, nurses and other
information for employers to Work in the Triangle web health care professionals to
use when communicating with portal and aggressive worker relocate to hard-to-staff areas
prospective employees. recruitment strategies began are common throughout the
3) Develop a statewide campaign in 2011. United States, particularly in
to encourage our U.S. Armed rural areas. A recent review
Forces veterans to locate in Financial Incentives for Talent showed 36 programs offering
Missouri – providing services Attraction. to repay student loans and
including skills certification, States, regions and cities now another 11 programs offering
retraining, and job matching. even offer direct financial cash scholarships.
With approximately 8,000
Missouri residents departing the
military each year, a campaign
to have them return to their
home state would increase the “As an employer, I know what I need, but as a parent, there is so
pool of experienced, skilled much data, but it is overwhelming. What does it mean? Where
workers. will the jobs be? What do my kids need to know?”
4) Develop non-traditional
recruitment strategies for Employer Interview, December 2017
attracting a quality workforce.
WORKFORCE2030: A Call to Action 35
The Path Forward
Employer Interview,
December 2017
State Online Workforce Online Job and Training • The U.S. Department
Dashboards: Information Portals: of Labor’s well-regarded
• Colorado’s Talent Dashboard • Alabama Works links O*NET portal provides
is organized around educating, employers looking for skilled information on more than
partnering, connecting, and workers with residents looking 900 occupations, including
supply and demand. for work or training. The skill requirements and
https://www.coloradotalent program and web portal descriptions of daily work
dashboard.com AlabamaWorks.com was activities. Search options
• Ohio’s Workforce Success developed through a public- include sorting occupations
Measures Dashboard was private partnership and was by rapid growth, by career
recently updated after receiving designed to also create a cluster and within the
a grant and technical assistance statewide brand that could lead green economy sector.
from the National Skills people to available services. Employers can also use
Coalition’s State Workforce O*NET to quickly develop
and Education Alignment job descriptions and detail
Project (SWEAP). training requirements.
https://workforcesuccess.chrr.
ohio-state.edu/home
573-634-3511
mochamber.com