Massachusetts Business Coalition On Skills - Boston Chamber

Massachusetts BusinessCoalition on SkillsPOLICY AGENDA

WHATare skillsgaps?

Skills gapscan existin the:Workforcewhen the skills possessed by individualsin the workforce do not align to theskills that employers seek in employees.Talent pipelinewhen the skills being developed byindividuals in the talent pipeline do notmatch anticipated employer needs.3

DOskills gaps existin Massachusetts?4

73%of Massachusetts employers find it“somewhat difficult” or “very difficult” tofind people with the right skills to fill openpositions.2019 MBAE Survey conducted by MassINC Polling5

Job openings growing faster than 𝐽𝐽𝐽𝐽𝐽 ��𝑂𝑂𝑂Between 2001 and2019, monthly MAjob openings grewby 56,000 while hiresgrew by only 5,000. 1 more openingsthan hires 1 more hires thanopeningsSource: Bureau of Labor Statistics, Job Openings and Labor Turnover Survey (JOLTS)Experimental State Estimates, Table A. Data are modeled as 3-month moving averages.

CVTE Skills GapTraining and Supply Issue: 68% of MA employers said CVTEgraduates were only “Somewhat WellTrained” Only 45% of MA employers believe thatthe number of CVTE graduates issufficient to meet employers’ needs. Statewide, CVTE graduates can fill 12% ofthe projected job openings between 2012and 2022.WorkforceDevelopment AreaGreater LowellGreater New BedfordBristolBerkshireNorth CentralCentralLower Merrimack ValleyNorth ShoreBrocktonHampdenSouth ShoreFranklin-HampshireCape & IslandsMetro SouthMetro NorthBostonStudentSupply asPercent 3%7%4%Sources: Dukakis Center for Urban and Regional Policy, Meeting the Commonwealth’s Workforce Needs: Occupational Projections and Vocational Education,October 2015; Dukakis Center for Urban and Regional Policy, The Critical Importance of Vocational Education in the Commonwealth, January 2016.

WHYdo skills gaps exist inMassachusetts?8

Unused Labor Pool Lacking Desired SkillsDespite a hot job market and a low standard unemployment rate (U-3)heading into 2020, MA’s real unemployment rate (U-6) shows a sizable andunused labor pool.Massachusetts U-3 & U-6 Average Annual Unemployment RatesSource: Bureau of Labor Statistics, Alternative Measures of Labor Underutilization for States, 2003-2019 Annual Averages. The U-6 rate includes individuals that areunemployed, underemployed, part-time for economic reasons, and those marginally attached to the labor force.

Declining Teen Labor ForceMassachusetts Labor Force Participation RatesMassachusetts’ decliningteen (ages 16-19) laborforce participation ratedelays and limitsopportunities forteenagers to developessential skills and toLabor Force Participation67.4%67.9%Teen Labor Force Participation52.1%begin cultivatingprofessional networks.35.1%20002018Source: Bureau of Labor Statistics, Expanded State Employment Status Demographic Data, 2000-2018.

Changes in TechnologyMassachusetts Jobs by Required Digital SkillsMetro (National lSkillsBoston (2)23.9%46.3%29.8%Worcester (19)27.3%50.2%22.5%Springfield (42)29.3%49.6%21.1%Providence (62)29.4%49.4%21.2%The pace of change in technology and lack of skilled talent are thetop barriers to filling open positions.Sources: The Brookings Institution, Digitalization and the American workforce, November 2017; Wiley Education Services, Closing the Skills Gaps, 2019.

Aging Labor ForceMassachusetts Population Over Age 15Massachusetts’ labor force is shrinking with a decliningnumber of residents at prime working age (ages 25-54).Source: U.S. Census Bureau, American Community Survey 5-Year Estimates, 2014-2018.

Achievement GapsSelect Massachusetts Academic Achievement Measures, 2019Persistentachievement gapsleave studentsunderprepared forcollege and theworkforce, limitingthe overall success ofemployees andemployers.CategoryAll StudentsEnglishLanguageLearnerStudents withDisabilitiesLow IncomeWhiteBlackLatinxHigh SchoolGraduation e: Massachusetts Department of Education, 2019 Massachusetts State Report Card

WHYis closing skills gaps important?14

Median Earnings by Educational Attainment(Massachusetts Residents over Age 25)Access to in-demandskills leads to betterindividual outcomes Source: U.S. Census Bureau, American Community Survey 5-Year Estimates, 2014-2018, Table B20004.

Massachusetts Workforce and Unemployment byEducational Attainment and greateremployment stability.Source: U.S. Census Bureau, American Community Survey 5-Year Estimates, 2014-2018, Table S2301.

“Knowledge is the key toeconomic development.”As the global economy becomes increasingly dependenton a skilled workforce, the cities, states, and countrieswith fewer skilled workers become less competitive.Source: Hanushek, Eric A., and Ludger Woessmann. 2015. The Knowledge Capital ofNations: Education and the Economics of Growth. MIT Press: Cambridge, MA.

A shortage of skilled workers limits innovation,output, and productivity. Without access totalent, employers may relocate or shut downentirely.

HOWcan Massachusetts close skillsgaps?19

Create a pathway toward essentialskills development Phase 1: Develop a list of employer-defined essentialskills and work with the Skills Cabinet to establish astatewide essential skills program. Phase 2: Incentivize the development of essential skills inK-12 (district incentives, high school credits, andMassCORE) and in community college (internships).

Modernize Massachusetts CVTE Increase CVTE capacity by expanding school buildings,facilitating teacher recruitment through innovativeinstruction models (e.g., adjuncts), and developing a planto expand CVTE to traditional high schools. Use labor market data to strengthen and standardizeprogram audits required by Perkins V and to ensurecurriculum and credentials align with industry needs.

Incentivize Employer Training Initiatives Use matching grants and tax credits to encourageemployer training programs with a focus on: Work opportunity Work-based learning (upskilling) Hiring and reskilling individuals or jobs impacted by COVID or automation

Support Massachusetts’ OngoingTraining Initiatives Advocate support for ongoing initiatives that promoteinclusive skills development, including: Career Technical Initiative (CTI) Registered Apprenticeship expansion Support innovative and labor-market-aligned educationmodels, such as dual enrollment and early college, targetingfirst generation college students and communities of color.

Set Statewide and RegionalTraining Goals Phase 1: Collect data needed to measure training goalprogress and obtainment. Phase 2: Establish statewide and regional training goalsand interim benchmarks, including closing equity gapsin access and attainment. Engage with policymakers developing goals (e.g., DHE Equity Goals) and datacollection (e.g., SOA-required Data Advisory Commission)

Simplify Workforce Development Phase 1: Conduct an asset mapping exercise for theeffectiveness of the current workforce developmentsystem, including government entities, funding streams,and training initiatives. Phase 2: Coordinate and create an intentionallyequitable workforce development system to facilitateemployer involvement.

Increase Employer Engagement Employers should take an approach that is intentionallyequitable to increase engagement in the education andworkforce development system, including: Participating in work-based learning models (e.g., apprenticeships, CVTE, andinternships) targeting underserved communities Encouraging career exposure in local K-12 schools Introducing equitable and innovative hiring practices (e.g., skills-based hiring) Developing incumbent worker training programs

About the MBCSThe Massachusetts Business Coalition on Skills formed to originate and advocate forstatewide policy proposals to promote equitable skills development in the talentpipeline, in the current workforce, and for the jobs of the future.Members as of April 28, 2021: 1Berkshire Massachusetts Taxpayers Foundation Amplify Latinx Nashoba Valley Chamber of Commerce Bedford Area Chamber of Commerce Neponset River Regional Chamber of Commerce Better Business Bureau Serving Eastern MA, ME, RI & VT Newton-Needham Regional Chamber of Commerce Black Economic Council of Massachusetts North Central Massachusetts Chamber of Commerce Blackstone Valley Chamber of Commerce North Shore Chamber of Commerce Cape Cod Chamber of Commerce One SouthCoast Chamber of Commerce Greater Boston Chamber of Commerce Quincy Chamber of Commerce Kendall Square Association Retailers Association of Massachusetts Mass Technology Leadership Council Somerville Chamber of Commerce Massachusetts Association of Insurance Agents Springfield Regional Chamber of Commerce Massachusetts Business Alliance for Education Western Massachusetts Economic Development Council Massachusetts Business Roundtable Worcester Regional Chamber of Commerce Massachusetts State Automobile Dealers Association

Bedford Area Chamber of Commerce Better Business Bureau Serving Eastern MA, ME, RI & VT Black Economic Council of Massachusetts Blackstone Valley Chamber of Commerce Cape Cod Chamber of Commerce Greater Boston Chamber of Commerce Kendal