New Report: Nearly 650,000 'Middle-Skill' Job Openings Projected for Michigan By 2016

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Tue Oct 13, 2009 5:00am EDT

New Report: Nearly 650,000 'Middle-Skill' Job Openings Projected for Michigan
By 2016

Michigan's Economic Recovery Tied to Preparing Workers for Jobs Requiring More
than High School Diploma, Less than College Degree; Michigan Must Use Economic
Downtime to Invest in Training Time To Meet Future Demand


Federal Recovery Dollars to Create Jobs in Middle-Skill Industries; Report
Calls for New Vision Guaranteeing Two-Years Training Post High School 


DETROIT, Oct. 13 /PRNewswire-USNewswire/ -- In what will play a major role in
Michigan's economic recovery, 650,000 "middle-skill" job openings---those that
require more than a high school diploma, but less than a four-year degree--are
projected for the state by 2016, concludes a new study released today by The
Workforce Alliance (TWA) and the Skills2Compete-Michigan campaign, an
affiliate of the national Skills2Compete campaign.   But to unleash the full
economic benefits of these openings, Michigan will need to continue to invest
in proper training and education for its embattled workforce.


While the recession is stifling current employment growth, the report projects
that middle-skill jobs (including new jobs and replacement) would account for
46 percent of all openings between 2006 and 2016. Low- and high- skill jobs
will account for 24 percent and 30 percent respectively.


The report, which for the first time tracks Michigan's jobs at the
middle-skill level, notes that federal funds from the recovery bill are also
expected to create millions of new jobs--especially in industries dominated by
middle-skill occupations, like environment/energy, construction,
manufacturing, and transportation.


Prior to the recession Michigan was experiencing shortages of middle skill
workers in crucial industries. About 51 percent of all jobs are classified as
middle-skill but only 46 percent of Michigan workers likely have the
credentials to fill them. That gap will return as jobs are created, stifling
recovery efforts. The gap will widen as more workers retire and if Michigan's
middle-skill educational attainment continues to decline.


Michigan's strong record of investments in postsecondary education and
workforce training must continue to keep up with demand for middle-skill
workers. The state's "No Worker Left Behind" initiative, launched in August
2007, promises to train up to 100,000 state residents in jobs in high demand
occupations and emerging industries. At the end of year two, the program has
already put more than 96,000 Michiganders into training - and the pace of
workers entering the program is accelerating.


With rising unemployment in the state, the report notes the recession is
precisely the right time to develop a strong middle-skill workforce.


"Michigan's Forgotten Middle-Skill Jobs confirms Michigan's strategy of
investing in our workforce," said Andy Levin, Deputy Director of the
Department of Energy, Labor and Economic Growth (DELEG). "We must continue to
use No Worker Left Behind to help tens of thousands of workers acquire the
skills this report shows will be necessary for the most plentiful jobs - even
as we provide employers the workforce they need to grow unhindered as Michigan
diversifies."


"Economic downtime in Michigan must be used to invest in training time," urges
Andrea Ray of TWA, the convening organization for the national Skills2Compete
campaign. "If Michigan seeks real economic recovery and long-term prosperity,
we must ensure our workforce has the necessary education and training to meet
the labor demands of the future. The recession provides a time frame for
businesses and the state to be opportunistic: evaluate labor and skill needs
and train and prepare for the jobs that are expected to grow."


Rick Anderson, of Detroit-based OpTech, expressed his current concerns: "We've
experienced shortages in skilled workers for years. And while the current
recession certainly limits our ability to grow, we know that when the economy
bounces back we are going to need a strong, ready, and skilled workforce to
move our company ahead."


The analysis for the study was performed by TWA using data from the Bureau of
Labor Statistics, Current Population Survey, American Community Survey and
state labor market data from Michigan Department of Energy, Labor and Economic
Growth.  The analysis is based on the methodology developed for the national
Skills2Compete report - America's Forgotten Middle-Skill Jobs - by labor
economists Harry Holzer and Robert Lerman.


Michigan's Forgotten Middle-Skills Jobs assesses the current and future
middle-skill employment and education patterns in the state:


    --  Shortages in the growing "green" sector are already occurring.
Michigan
        employers are already having trouble filling middle-skill jobs in
energy
        auditing, lead/hazardous materials work, and PV installation and
        trucking.
    --  Middle-skill jobs expected to grow by 2016 in Michigan include heavy
        truck drivers with a median earning of $37,160; carpenters with a
median
        earning of $42,140; and dental hygienists with a median earning of
        $57,376. The report includes a list of 30 high-demand middle-skill
jobs
        in Michigan.

    --  Immigration trends are likely to do little to offset middle-skill
        attrition, as most workforce growth in the state due to in-migration
        will likely occur at the low-end of the skill spectrum or at the
        high-end of the skill spectrum (for example, engineers brought in from
        overseas through H-1B visas).



The report also finds that 64 percent of the people who will be in Michigan's
workforce in the year 2020 were already working adults in 2005--long past the
traditional high school to college pipeline. The Skills2Compete campaign says
this finding underscores the crucial importance of investments in training and
re-training the current adult workforce to closing the skill gap. And while
the nation's overall K-12 education system also needs significant repair that
alone won't solve this problem.


Echoing a vision put forward by the national Skills2Compete campaign,
President Obama first challenged every American to commit to at least one year
of postsecondary education or training in February 2009, and has continued to
signal that investing in a range of skills for America's workforce--"be it at
a community college or a four-year school; vocational training or an
apprenticeship"--will be a priority for his Administration.


"There is a federal call to action that must not be ignored. The President has
called on all Americans to obtain some form of postsecondary education or job
training and has backed that up with commitments to invest in community
colleges and other middle-skill training opportunities" notes, Ryan Dinkgrave
of Focus: Hope, a lead partner in the Skills2Compete-Michigan campaign. James
Vander Hulst of West Michigan TEAM, another lead partner agrees, "Michigan
should not offset this federal vision, but rather take proactive policy
actions to train both laid off and currents workers in the State for better,
more plentiful middle-skill jobs and careers. Employers also need a solid
voice in this call to action." Another lead partner, Sharon Parks of the
Michigan League for Human Services, adds, "And these policy actions must also
focus on the basic academic skills that many residents need to pursue
middle-skill training."


Other lead partners of the Skills2Compete-Michigan campaign include Andrew
Brower of The SOURCE, Patrick Lindsey of Focus: Hope, Adriana Nichols of the
Michigan Community College Association, Bill Rayl of Jackson Area
Manufacturers Association, and Peter Ruark of Michigan League for Human for
Human Services.


The Skills2Compete-Michigan campaign is calling on state leaders to embrace a
new vision to guide its economic and education strategy that would allow
residents to meet or exceed the President's challenge: Every Michigander
should have access to the equivalent of at least two years of education or
training past high school--leading to a vocational credential, industry
certification, or one's first two years of college--to be pursued at whatever
point and pace makes sense for individual workers and industries.  An
education strategy guided by this vision would give Michigan a competitive
edge for recovery and long-term growth.


The study notes historical precedents for such an initiative at the federal
level including universal high school for U.S. students in the mid-nineteenth
century and the GI Bill, which boosted post-war prosperity in the 1940s.


Jack Litzenberg, Senior Program Officer at the Charles Stewart Mott Foundation
in Flint, confirms the findings of the report as consistent with the Mott's
experiences in its efforts throughout the state.  "Access to middle skill jobs
through education by low-income individuals is a primary step toward launching
livable wage careers and a major focus of sectoral employment development." 
Mott has worked with DELEG to establish "regional skill alliances" throughout
Michigan, each focused on helping working adults get the necessary
post-secondary skills and credentials to advance within specific industry
sectors.


"Citizens in the Midwest, and Michigan in particular, need guaranteed access
to education to prepare for middle-skill jobs that will support their
families," said Ellen Alberding, Joyce Foundation president. "Michigan's
Shifting Gears project will help people learn the right skills for the right
jobs and participate in the state's economic recovery."


Members of the Skills2Compete-Michigan campaign will meet in Washington DC in
November with congressional leaders to review the study's findings and
encourage further federal efforts to ensure all workers can get the skills
they need to play a role in economic recovery. The campaign will brief state
policymakers on the report's findings and begin to explore ways to make
Michigan a leading state in addressing the middle-skills gap.


The report is funded by the Joyce Foundation and Ford Foundation.


Skills2Compete is a non-partisan campaign to ensure the U.S. workforce has the
skills needed to meet business demand, foster innovation, and grow broadly
shared prosperity. The campaign's diverse and growing list of endorsers
include national and local leaders from business, labor, education and
training, community and civil rights groups, and the public sector. The
Skills2Compete Vision: Every U.S. worker should have access to the equivalent
of at least two years of education or training past high school--leading to a
vocational credential, industry certification, or one's first two years of
college--to be pursued at whatever point and pace makes sense for individual
workers and industries. Every person must also have the opportunity to obtain
the basic skills needed to pursue such education. For more information visit
www.Skills2Compete.org and www.Skills2Compete.org/Michigan.


TWA's mission is to advocate for public policies that invest in the skills of
America's workers, so they can better support their families and help American
businesses better compete in today's economy. The Workforce Alliance is a
national coalition of community-based training organizations, community
colleges, unions, business leaders, local officials, and leading technical
assistance and research organizations. This alliance of stakeholders, who have
not previously come together, ensures that our efforts are not in the self
interest of a particular group, but are instead in the broader public interest
of the nation.  For more information, visit www.workforcealliance.org.




SOURCE  The Workforce Alliance

Ambar Mentor of Valerie Denney Communications for The Workforce Alliance,
+1-312-408-2580 ext. 25, +1-773-343-1481- cell, amentor@valeriedenney.com
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