Transcript Slide 1

“Growing A Community Of Talent”
A fresh look at workforce development and community growth
Anthony B. (Tony) Sindone
Economist/Lecturer, Purdue University North Central
Center for Economic Development and Research
O: 219-785-5257
C: 219-575-9658
[email protected]
Labor Markets
Traditional View:
Regional Statistics
State of the current workforce
Emerging View:
Skills Driving Economic Development
Talent Gardening
Community Growth
Workforce and Jobs
Workforce Characteristics
• Live and Work in Region
• Live Elsewhere, Work in Region
• Live in Region, Work Elsewhere
• Labor changes over the decade
4
Live in Region
Live in Region, Work Elsewhere
Living and Working in Region
346,762
332,387
350,000
95,576
100,669
300,000
↑5.3%
250,000
200,000
150,000
251,186
231,718
↓7.8%
100,000
50,000
0
2002
5
2009
7.8% decrease in living and working in region
3.5% increase living in the region and working elsewhere
Region Workers
291,058
300,000
39,872
250,000
Total Workforce
Work in Region
290,349
58,631
↑47%
200,000
150,000
231,718
↓7.8%
50,000
0
2002
6
2009
391,000
251,186
100,000
Live In Region
Work Elsewhere
Live Elsewhere, Work in
Region
Live & Work in Region
NWI Labor Force over Decade
2011 Current Data
Unemployed,
41,976
2001 Employment Data
Unemployed,
18,513
Employed,
381,902
Labor Force of 392,081
Unemployment Rate
10.7%
Labor Force of 400,415
Unemployment Rate
4.6%
7
Employed,
350,105
NWI Region includes over 49,000
Businesses (2010)
30,000
27,104
25,000
20,000
15,000
9,570
10,000
6,622
5,000
1,388
1,215
STARKE
PULASKI
2,551
942
0
LAKE
8
PORTER
LA PORTE
NEWTON
JASPER
Quality of Jobs in the Region
9
Job Quality Indicators
Per Employee Earnings
Total earnings generated in the
region per employee.
Average Compensation
Per Job
Total compensation for each
worker including benefits.
Average Wage
Total compensation
without benefits.
10
Per Employee Earnings 2009
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
PER EMPLOYEE EARNINGS
58,864
43,233
REGION
50,909
INDY
METRO
44,620
50,695
IN
US
44,312
CHICAGO
Region Comparisons by Percentage Growth over Decade
NWI REGION
23%
INDY METRO
21%
IN
23%
US
23%
CHICAGO
21%
FORT WAYNE
17%
GRAND RAPIDS
13%
11
FORT
WAYNE
44,992
GRAND
RAPIDS
AVERAGE COMPENSATION PER JOB WITH BENEFITS
$56,962
$60,000
$50,000
$48,226
$48,715
$43,477
$37,628
$38,542
$40,000
NWI
IN
$30,000
US
$20,000
$10,000
$0
2001
12
2009
Percentage growth over decade
NWI
28%
INDIANA
26%
UNITED STATES
31%
AVERAGE ANNUAL WAGE - WITHOUT
BENEFITS
$45,559
$50,000
$45,000
$40,000
$35,000
$36,219
$30,918
$37,103
$38,270
$31,779
NWI
$30,000
IN
$25,000
US
$20,000
$15,000
$10,000
$5,000
$0
2001
13
Percentage growth over decade
NWI
20%
INDIANA
20%
UNITED STATES
26%
2009
Comparison 2009
(includes benefits)
Average Compensation per Job
$56,962
$60,000
$50,000
$48,226
$52,318
$48,715
$43,968
$40,399
$38,085
$40,000
$30,000
$20,000
$10,000
$0
NWI
14
IN
US
Indy
Metro
Fort
Wayne
Chicago
Grand
Rapids
WORKFORCE READINESS
15
Labor Force Utilization
Percentage of the population, ages 18-64,
that are in the labor force in the region
73.8% or 388,701 employees
16
84%
Labor Force Utilization
2010
81.90%
82%
80.70%
80.67%
80%
79.32%
78.40%
77.90%
78%
76%
74%
73.80%
72%
70%
68%
REGION
NWI
17
INDY METRO
IN
US
CHICAGO
FORT WAYNE
GRAND
RAPIDS
Education
18
Educational Attainment Comparison 2011
(ages 25 and above)
65%
60%
NWI
55%
IN
50%
US
45%
Indy Metro
Ft. Wayne
40%
Chicago
35%
Grand Rapids
30%
25%
20%
15%
10%
5%
0%
19
Less than High
School completed
HS Diploma Some College
Associate's
Degree
Bachelor's Graduate Degree
& Higher
Some Improvement
Educational Attainment NWI
100%
90%
80%
70%
Bachelors or higher
60%
Associates
50%
HS some college
40%
Less than HS
30%
20%
10%
0%
2001
20
Less than HS
HS some college
Associates
Bachelors or higher
2011
2001
17.4%
60.0%
5.7%
16.9%
2011
13.8%
60.4%
7.1%
18.7%
Education Matters!
Unemployment
Rate
Labor Force
Participation
Rate
19.5%
52.2%
High school graduate
12.0%
74.4%
Some college or associate's degree
10.9%
81.9%
Bachelor's degree or higher
5.6%
88.2%
Aggregate
10.6%
77.7%
Educational
Level
Less than high school graduate
Education & Employment in
Northwest Indiana for 2011
21
Human Resources!!!
????????
Growing Jobs
Growing People
Attract + Develop + Engage
Attract Businesses:
Develop Businesses:
Engage Businesses:
Foster a Culture of
Entrepreneurship
Grow the Economic and
Leadership Capacity of
Organizations
Build Upon Your
Economic Strengths
Attract People:
Develop People:
Engage People:
Foster a Welcoming
Community
Create a Regional
Learning System
Build Relationships and
a Sense of Community
Attracting Talent
Why?
The Factors of Economic Growth
Open,
Welcoming
Culture
Existing Companies
Staying and
Expanding Here
• Healthier Tax Base
• Higher Property Values
• Fewer Demands on Social
Services
• Less Income Disparity
• More Opportunities For Our
Children
• A Healthier Community
• Lower Crime Rates
• Less Drug Use
• Less Community Tension
• Etc.
h
Good
Government
Attractive
Business
Climate
Better
Paying
Jobs
Across
the Board
h
Attractive
Education
Options
Incentives
Available
People
with
the
Taxes
Needed
Skills
Wage Rates
New Companies
Moving and
Forming Here
h
h
Cultural &
Leisure
Activities
Infrastructure
“I came to see in my time at IBM that
culture isn’t just one aspect of the game—
it is the game.”
—LOU GERSTNER
GALLUP POLL
Soul of the Community
(28,000 people in 26 U.S. cities)
SOURCE: www.soulofthecommunity.org
1.Openness
Perceptions of openness of the community to different groups (older
people, racial and ethnic minorities, families with kids, gays and lesbians,
talented college graduates, immigrants)
2.Social Offerings
Vibrant night life; good place to meet people; people care about each
other
3.Aesthetics
Parks, playgrounds, and trails; beauty or physical setting
4.Education
5.Basic Services
6.Leadership
7.Economy
8.Emotional Wellness
9.Safety
10.Social Capital
11.Civic Involvement
OUR VALUES: High Aspirations
Public-Private Partnerships
Collaboration
Forward-Thinking
Welcoming Community
The Value of Good Design
The Best Value
A Service to Others
DEPENDENCY RATIOS
Dependency Ratio:
The relation between
the number of people
who aren’t working age
and the number of
people who are.
Ireland: The “Celtic Tiger”
1979: Restrictions on Contraception
since the country’s founding
were lifted and the birth rate
began to fall. (In 1970 the
average Irishwoman had 3.9
children, by the 1990s that
number was less than 2)
1960: Dependency Ratio: 10 to 14
(71.4%)
2005: Dependency Ratio: 10 to 22
(45.45%)
Dependency Ratio: The relation between the number of people
who aren’t working age and the number of people who are.
General Motors
1962: 1 pension to 11.6 employees
2005: 3.2 pensions to 1 employee
(General Motors today makes more cars and
trucks than it did in the early nineteensixties, but it does so with about a third of
the employees. In the U.S. today we make as
much steel as we did 30 years ago with 25%
of the workforce.)
LaPorte County
2000: Dependency Ratio: 1 to 1.58
(62.99%)
2010 : Dependency Ratio: 1 to 1.61
(61.93%)
What’s critical is not just the growth of a
population but its structure.
“The next generation of talent is the first
to identify more strongly with their
communities than their employers.”
—REBECCA RYAN
“Youth Magnet” Cities Hit Midlife Crisis
Few Jobs in Places Like Portland and Austin, but the Hipsters Just
Keep on Coming
—Wall Street Journal, May 16,2009
Developing Talent
CAPITALIZATION RATES
Capitalization Rate:
What percentage of people successfully
achieve the things that they could?
THE “ONE WAY TO WIN”
24 Ninth Graders
- 7
= 17
- 5
= 12
Drop Out (29%)
Go into Workforce (21%)
Enroll in College (50%)
MORE WAYS TO WIN…
Most Often Reason Cited for Leaving
School:
“No connection between
work and school.”
The Academic Middle:
“Non-specific investments in
education beyond literacy will not
grow the economy or guarantee
individual opportunity.”
—MICHAEL PORTER
Engaging Talent
QUALITY OF LIFE
Cultural Activities
Leisure Activities
Welcoming Culture
Diversity and Inclusion
Social Capital
PEOPLE
PLACES
Education
Politics and Law
Public Safety
Arts
Humanities
Sociology
Geography
Aesthetics
Planning and Zoning
Housing
Sustainability
Natural Environment
Infrastructure
PEOPLE
PLACES
ECONOMIC
DEVELOPMENT
LEADERSHIP & COLLABORATION
Vision and Values
Public-Private Partnerships
Management
Governance
Entrepreneurship
Community Projects
ORGANIZATIONS
BUILT ENVIRONMENT
Architecture
Landscape Design
Interior Design
Graphic Design
Public Art
ORGANIZATIONS
Government
Corporations
Small Business
Nonprofits
Social Enterprise
Social Service Organizations
TYPES OF COLLABORATIONS
= Amount of connections
and influence
Who should be at the table
No Collaboration
Diverse Cross Sector Stakeholders
Same Sector Stakeholders
Shared Measures
and Information
Across Groups
How we will achieve it
Coalitions &
Networks
Associations
Public Private
Partnerships
Fragmented
Actions
Groups
Measures and
Information
Shared Within
a Group
Companies &
Organizations
Talented
Few
Powerful
People
Isolated
Actions
Narrow Self-Interest
Narrow Common Agenda
Shared Common Agenda
What we want to achieve
Short-Term Commitment
Long-Term Commitment
No Measures;
Information Not
Shared
What outcomes will we measure
Mutually
Reinforcing
Actions
Institutionalize the Effort
Enlightened
Improvement
(what has been learned)
HOW
Disciplined
continuous
improvement
START HERE:
Identify a
key community
issue
Connections to design-thinking
and entrepreneurship:
WHO
Identify the right
people who want to
address the issue
Conduct a project with
deliverables and metrics
Build to Think
(prototyping)
Identify and prioritize
catalytic projects and pilots
Tell the Story
(over and over
and over…)
The Coalition
Building Process
Develop a future
state picture
WHAT
Form the Team
(go where the energy is)
Build trusting
relationships
Secure full-time resources
focused on the effort
Understand the data and
gather the information
Create a
picture of the
current state
The Big Picture
(paint a compelling
picture including
measures)
Discover a Common Agenda
(transcend differences in
values)
Hit the Streets
WHY
Collect the Evidence
(hard and soft data)
Talk with Stakeholders
(explore broadly and deeply)
Draw the Map
Show and Tell
(what has been learned)
Educational Attainment
A Coalition’s Development Over Time: “Start small, think big, aim high.”
(The Columbus, Indiana Model)
Economic
Opportunities 2015
Columbus Learning
Center Facility
Catalytic Hudson
Institute Report
1995
Project-Based Learning
and Early-Childhood
Education
Regional Learning
System:
Dream It. Do It.
High School and Degree
Program Development
with Employers
2000
2005
2010
THE FLOW OF PEOPLE
Attracting Talent
CHANGES
Structure
+
Developing Talent
INCREASES
Achievement
ATTRACTS
TALENT
+
Engaging Talent
CREATES
Opportunity
THE FLOW OF PEOPLE
Attracting Talent
CHANGES
+
Developing Talent
INCREASES
+
Engaging Talent
CREATES
Dependency Ratio
Capitalization Rate
Economic Strengths
Structure
Achievement
Opportunity
ATTRACTS
TALENT
Our Value Proposition
NAICS Industry
Cluster
LAKE
JASPER
LA PORTE
NEWTON
PORTER
PULASKI
STARKE
TOTAL
Administrative Support Services
4,083
458
981
146
1,678
181
257
7,784
Other Services
3,429
268
762
92
958
146
178
5,833
Retail Trade
3,213
252
813
84
1,006
121
146
5,635
Professional Scientific Technical
2,849
154
503
47
1,077
49
65
4,744
Healthcare
2,502
105
535
19
774
56
75
4,066
Construction
2,413
252
632
74
966
74
115
4,526
Finance Insurance Real Estate
2,323
180
476
70
859
73
79
4,060
Arts Entertainment
Accomodations Food
1,775
121
467
42
561
50
81
3,097
Wholesale Trde
1,179
110
324
41
364
62
50
2,130
Manufacturing
928
78
325
44
327
33
55
1,790
Transportation & Warehousing
869
134
208
52
346
56
64
1,729
Education
572
36
93
12
176
11
23
923
Information
434
28
99
18
149
16
23
767
Government
421
53
111
39
127
42
42
835
Agriculture & Mining
219
333
313
164
231
248
137
1,645
Ultilities
60
6
24
3
17
2
1
113
Unclassified
6
0
3
0
2
0
0
11
27,275
2,568
6,669
947
9,618
1,220
1,391
49,688
TOTAL BUSINESS SITE
LOCATIONS -
TALENT
CLUSTERS
V=B-C
Total Value
Benefits
Costs
“Minimize Investment”
h
V=B-C
Benefits
Costs
h
Total Value
“Return on Investment”
h
h
h
V=B-C
Total Value
Benefits
Costs
Different Goals
Different Outcomes
Getting a good return
on our investment
The place to live that
offers the very best value
or
Minimizing the amount
of investment
or
The least expensive
place to live
A Region of Talent