The Central Florida Workforce in Today s Recession. Presented by: Gary Earl WORKFORCE CENTRAL FLORIDA President and CEO

Transcription

1 The Central Florida Workforce in Today s Recession Presented by: Gary Earl WORKFORCE CENTRAL FLORIDA President and CEO

2 State of the Workforce Survey Employers identified the economy as the greatest challenge to local industry. The economy is the number one challenge facing all employers regardless of location, size or industry sector. This is a major turn from two years ago when the region s economy was identified as the region s strength.

3 State of the Workforce Survey 4 out of 5 employers indicated that the changing economy has had a considerable impact on their organization. Of those who indicated their company had been impacted by the economy, 60 percent report a loss of funding, revenue and/or sales. Additionally, nearly half of the employers report having to downsize their workforce and an inability to expand due to the changing economy.

4 State of the Workforce Survey Job creation and economic growth was ranked as the top business environment issue, with 8 out of 10 employers rating it as very critical. This is a shift from 2006 when it was not ranked as in the top critical issues. Other critical issues that rounded out the top were: Supporting existing businesses Job retention of current workers Higher education including technical centers, community colleges and universities

5 State of the Workforce Survey Public K-12 education and reliable transportation were also rated high as critical issues; however, public K-12 education, which ranked as the number one critical issue two years ago, no longer ranks in the top five. While the lack of skilled workers and work ethic continue to be of considerable concern to employers in previous surveys, the changing economy has taken top priority.

6 Unemployment Rate 33 year high (March 2009) April 2009 Unemployment Rate 9.7% The Orlando MSA: There are 1,002,865 employed and 107,808 unemployed residents. There are 57,337 more people unemployed in April 2009 than one year ago in Central Florida. Experienced an over-the-year employment loss (-54,600 jobs, -5.0%) in April.

7 Unemployment Rate Sectors Losing the Most Jobs in Central Florida Construction (-13,700 jobs, -18.4%) Sectors Gaining Jobs in Central Florida Education and health services (+2,600 jobs, +2.2%) May s rate will be released this Friday, June 19

8 Unemployment Compensation Increased weeks of unemployment compensation to 99 weeks due to economy Increased maximum check to $300 per week To file an unemployment claim visit or call

9 American Recovery & Reinvestment Act $14.5 million to Central Florida for temporary workforce efforts $3.1 million for summer youth employment program Increased training scholarships by about 1,400 Other programs in new, emerging and green industries

10 Summer Job Connection The program will provide valuable summer work experience in local jobs for 1,200 young adults ages 16-24, which in turn, will make an immediate financial impact on the local economy. Participants will earn $8 an hour and work up to 35 hours a week in one of two tracks, a six-week track or a 28- week track for about 100 out-of-school young adults who will work in targeted industries.

11 Training Scholarships 1,400 additional scholarships to Central Florida residents Additional scholarships will allow Central Floridians to invest in their futures by attending a local training program. This will boost their skills, make them more valuable to employers, and give them an edge in the job market. It will help Central Florida by increasing the education level of our workforce.

12 WCF Job Seeker Services Job Leads Training Scholarships Online Services Seminars Assessments

13 WCF Employer Services Recruitment Solutions Employed Worker Training Awards Targeted Industries

14 Study Objectives 1. County Demographics 2. Workforce Challenges Advantages/challenges regional businesses 3. Recruitment and Retention Sources, concerns, challenges 4. Occupational Needs Current/future Expansion/reduction 5. Education,Training and Development

15 Workforce Challenges Regional Advantages and Strengths Greatest Advantage: Location (65%) Orange 72% Secondary Advantage: Higher Education (52%) (59%) Diverse labor pool (51%) (64%) Population growth (50%) (51%)

16 Workforce Challenges Regional Challenges Greatest Challenge: Economy Secondary Challenges: Lack of available skilled workers Employee retention Rising costs/overhead Work ethic Transportation needs

17 Workforce Challenges Critical Workforce Issues Most Critical Workforce Issue: Job Creation and Economic Growth (96%) Orange (98%) Secondary Critical Issues: (95%) Improving Higher Education Improving Job Retention Supporting existing businesses

18 Facts You Should Know Expected FY 2011 federal deficit: $1.48 trillion Expected FY 2012 baseline federal deficit: $1.1 trillion According to the Congressional Budget office (CBO): Real GDP is projected to increase by 3.1 percent this year and by 2.8 percent next year. CBO projects that under current law, budget deficits will drop markedly over the next few years to $1.1 trillion in 2012, $704 billion in 2013, and $533 billion in Relative to the size of the economy, those deficits represent 7.0 percent of GDP in 2012, 4.3 percent in 2013, and 3.1 percent in From 2015 through 2021, the deficits in the baseline projections range from 2.9 percent to 3.4 percent of GDP. Just two years ago, debt held by the public was less than $6 trillion, or about 40 percent of GDP; at the end of fiscal year 2010, such debt was roughly $9 trillion, or 62 percent of GDP, and by the end of 2021, it is projected to climb to $18 trillion, or 77 percent of GDP. The government's annual spending on net interest will more than double between 2011 and 2021 as a share of GDP, increasing from 1.5 percent to 3.3 percent.

19 House Action on the FY 2011 CR Chairman Hal Rogers (R-KY) 1 st CR $2 billion from federal job training programs Chairman Hal Rogers (R-KY) 2 nd CR Zeroes out all new funding for WIA s (title I) Adult, Dislocated Workers and Youth formula grant programs in Program Year 2011 Eliminates nearly all funding for WIA s national discretionary grants Rescinds $175 million in unobligated Dislocated Worker Reserve and Emergency Grant funding.

20 Lessons Learned Republican Study Committee controls House Republican Agenda Willing to make deep and painful cuts Republicans united

21 Lessons Learned Lack of support for job training programs by Republicans on Appropriations Committee, especially Chairman Rogers and Subcommittee Chairman Rehberg Apparent lack of support by Republicans on House Education and Workforce Committee Little influence by Democrats Agenda to cut and terminate many programs job training (WIA) likely to remain a target

22 Lessons Learned Most Congressional observers view cuts in House CR as bargaining chip for negotiations with Senate. Republican Study Committee views commitment to $100 billion in immediate cuts as bottom line. Large number of programs cuts and terminations make spotlight on WIA effectiveness story harder to achieve. Elimination of job training funding in House CR means difficult times ahead in House Budget, House FY 2012 Labor-HHS Appropriations and possible rescissions.

23 Lessons Learned House Republicans - especially new members - feel there is little political cost for making extreme cuts but there will be heavy political cost for not making deep cuts. Although senior House Appropriators and House Republican Leadership expect eventual CR compromise with the Senate how compromise is achieved remains difficult to imagine.

24 Lessons Learned A large number of House Republicans appear prepared to accept Government shutdown, rather than scale back cuts contained in the CR. Cuts to individual programs appear to be less important than bottom line of $100 billion in total cuts.

25 Expected Initial Senate Position on CR On February 16 Senate Democratic Leadership (including Reid and Murray) reaffirmed commitment to job training programs. Appropriations Chairman Daniel Inouye (D-HI) plans year long CR at FY 2010 levels. Key WIA supporter Senator Patty Murray committed to maintaining WIA funding at F 2010 levels.

26 Expected Senate Position on CR Republican Leader McConnell asks all 47 Republicans to support House passed CR. McConnell privately tells senior Senate Republicans that he will accept CR that keeps all programs at FY 2008 levels.

27 Expected Senate Position on CR Senate Appropriators expect a short-term (2 week) CR to occur before real negotiations. Number of Senate Republicans privately pushing for spending reductions to FY 2006 levels. Moderate Republicans trending rightward. No organized effort to eliminate WIA funding

28 Expected Lessons from Senate Obama FY 2012 budget sends signal to Senate Democrats WIA funding important. Full Appropriations Committee Chair Inouye (D-HI) important in negotiations with House Appropriations Chairman Rogers (R-KY). Senate needs to hear of importance of House Actions. Role of Republican Senators Mike Enzi (R-WY) and Johnny Isakson (R-GA) uncertain but important Senate Democrats??

29 Obama FY 2012 Budget The budget requests $860,527,000 for the WIA Adult program. Of this amount, $791,685,000 would be dedicated to the formula program and $68,842,000 would be set aside for the Workforce Innovation Fund. The budget requests $1,403,763,000 to fund the WIA Dislocated Worker program, of which $1,080,635,000 would be dedicated to the formula program, $229,160,000 to the National Reserve, and $93,968,000 would be added to the Workforce Innovation Fund. The budget requests $923,913,000 for the WIA Youth program, of which $850,000,000 would be dedicated to the formula program and $73,913,000would be reserved for the Youth Innovation Fund.

30 Debt

31 New Budget Chair Paul Ryan s Budget Resolution In January 2010, Ryan introduced A Roadmap for America s Future a comprehensive alternative to the heavily government-centered ideology now prevailing in Washington. The bill would consolidate 49 job training programs, Require competitive bidding for all job training grants to private contractors, Require every Federal job training program to track the following: The type of training provided and the cost per student. The employment status immediately after training, and then 1 year, 3 years, and 5 years after training. Whether or not trainees are working in the field for which they were trained. The participant s income level two years before and up to 5 years after training. The participation level in Federal support programs (i.e. Temporary Assistance for Needy Families [TANF], the Supplemental Nutrition Assistance Program [SNAP], Supplemental Security Income, and the like) before and up to 5 years after training.

32 Key Items to Know Senate Budget Committee Chairman Conrad, a deficit hawk, doesn t want deficit reduction solely directed to domestic discretionary programs, which comprise 12% of the budget. Senate Labor-HHS Appropriations Harkin feels that Conrad will protect Labor-HHS funding.

33 WIA Reauthorization - House McKeon is committed to introducing a bill: Needs bipartisan support (Democratic cosponsors) McKeon staff is working with Ed and Workforce staff to tighten up the bill to be introduced House Republicans not committed to moving any comprehensive legislation at this point Committee priorities have not yet been identified.

34 (111 th Congress, H.R. 4271) Eliminating duplication and waste. The bill consolidates funding to streamline program administration and enhance efficiency at the state and local levels. Streamlining state and local workforce investment boards. Ensuring the one-stop delivery system is demanddriven. Increasing opportunities for training. The bill enhances flexibility in the services that can be offered to job seekers, combining core services and intensive services into a new category of work ready services. Removing barriers to job training. Allowing faith-based groups to help train and retrain workers. Creating Workforce Innovation in Regional Economic Development (WIRED) plans.

35 WIA Reauthorization - Senate Staff for Senators Harkin, Enzi, Murray and Isakson continue the 18+ month drafting process. 4 of 5 title have been shared with additional Committee staff. Once all 5 titles have been shared between Senate Committee staff outside groups will see draft. Groups will be asked to provide legislative fixes, not simple prose comments.

36 Questions?