Transcript Work Force Training

Work Force Training =
Economic Development
An Example: Travis County
Funds long and short term job training out of economic
development funds.
One long term work force development program, Capital IDEA,
has received over $700,000.00 funding in a 2 year period.
Why would they
do that?
 Today, Economic Development
Requires a Skilled Work Force.
Relocating Companies show preference for
locations offering a skilled local work force
 Health Care is one of the
 fastest expanding service industries
 Most health care and technical jobs
require long term training
SO,
Why would they continue to fund
this program?
What kind of return does Travis get
for the dollars invested?
Evaluation Approach Considered
 2007-2008 participants
 % covered by Texas Unemployment Insurance
 Average quarterly earnings
 % eligible for unemployment insurance benefits
 % receiving unemployment benefits
 2, 6, and 10 quarters after leaving program for all
programs
 14 and 18 quarters for those programs having data
 Using Texas UI wage records and claims files
Impacts Analysis of Short Term Programs
 Overall mixed results
 1 program had strong positive results on employment,
earnings, and UI eligibility and claims—the only short term
program to have positive association with earnings
 2 short term programs significantly associated with lower
earnings
Impact Analysis of Long Term Training
 Capital Idea was only Long Term Program supported
 Positive, statistically significant impact on earnings
 Strongly associated with increased employment
 Strongly associated with eligibility for UI benefits
Study Conclusion:
Longer term investments in skills-training
yield large, lasting returns in the labor
market even seven years after services have
ended.
Skill QUEST, Inc. is the Dallas-Collin
program equivalent to Capital IDEA.
Capital Idea Description
 Non-profit workforce intermediary offering:
 Occupational Skills Training
 Extensive Support Services
 Long Term
 High Demand, High Skill Jobs
 Starting Salary at $16+ per Hour-(now $18)
 Fully ¾ in Nursing and Allied Health Careers
 Training Provided Through Community Colleges
Application Process for Capital Idea
 Extensive Orientation and Enrollment Process
 Academic, Financial, Career Assessments
 To Identify Candidates Having
 Math and Language Skills for Success
 Ability to Withstand Financial Pressures during Training
 The Drive and Determination to Succeed
Wrap-around Services To Ensure Success
 Weekly Counseling/Instruction/Peer Support Sessions
(Vision, Initiative, Perseverance) VIP Sessions on Soft Skills
 Childcare Assistance
 Transportation Assistance
 Other Emergency Assistance
 Urged to Give Back to Community
Participation in Capital IDEA
 Associated with
 10.9%age point increase in average earnings
 10.8% age point increase in monetary eligibility for UI
 $1223 increase in average quarterly earnings-over
comparison group
Factors Included in Evaluation
 Opportunity Cost
 Incremental Impacts (estimated v
Comparison Group)
 Fringe Benefits
 Employer Productivity and Reduced
Vacancy Days
 Taxes
 Welfare and Food Stamps
Skill QUEST, Inc. is the Dallas-Collin
program equivalent to Capital Idea.
Can We Afford Not to Offer Dallas
Participants
Tax Payers
Society
The same Return on Investment for Economic
Development?