Human Resources and

Workforce Development
 Why is there a need for Human and/or
Workforce Development?

• Human Resources are one of the greater

resources needed in the process of
Economic Development;
• Certain groups are not able to compete
due to:
– Lack of access to job opportunities due to the
fact that jobs tend to locate in places away
from where the resources are
– Jobs are disappearing or their nature is
changing faster than the population can adopt
The Realities of the Globalized and
the New Economy
• Economic swings have more to do with the re-
adjustment of the competitiveness of major
industries than periodic cycles.
• Global competition leads to unexpected swings in
markets with consequent employment impacts
• The firms and employees that do not change are left
behind and suffer not only un-profitability but extinction
• Employees are likely to change jobs and careers as
many as 10 to 15 times in their work life, due to
necessity and to opportunity
• There is no place in the new economy for unskilled or
static-skilled workers
 Realities of an Under-trained Workforce in
the New Economy
• American firms invest
about $30-$44 billion in
training and staff Unit Labor Cost in Local Currency
development. This
however, is only 1.2% to 30
1.8% of private sector
25
payroll. As American US
workers compete in the 20

Costs Per Year

UK
global market the fear is 15
Japan
that any more investment 10
in training will put them 5 France
of the market as it has 0 Germany
being happening with -5 Sweden
many firms locating
oversees in search of Country
cheaper labor.
 Realities of an Under-trained
Workforce in the New Economy
• 90% of U.S. Workers need to improve their computer
skills and 60% need to improve their analytical skills to
keep doing their current job
• Half of the 1.6 million system analyst jobs created in
went unfilled and 1.4 to 2.7 million positions in the same
field were needed 3 years later. Yet, in spite of this
need only 1% of the of employers account for 90% of
the job training done in the nation.
• The vast majority of public and private employees
have no access to job development resources and
they have to find their own resources to gain training
in the new information technology.
 Unfilled jobs!!!
• Every month since January 2009, more
than 20 million Americans have been
either out of work or underemployed. Yet
despite that staggering number, there are
more than three million job openings in the
U.S. Just in manufacturing, there are as
many as 500,000 jobs that aren't being
filled because employers say they can't
find qualified workers.
 Before the pandemic America had
5.8 million job openings
• The spike in job openings represents a mix of good and
bad news.
– On the upside, employers are hiring more and the
U.S. economy is growing -- a healthy sign as
concerns rise about the global economy potentially
weighing down U.S. economic growth. In some
respects, a large number of job openings indicate that
America's job market is improving, economists say.
– However, job openings also mean some employers
can't find the right people to hire. Too many job
openings represent a problem: The job skills gap in
America, experts say.
[Link]
 United States Job Openings
• The number of job openings in the United States was 11.266
million in February of 2022, little changed from an upwardly
revised 11.283 million in January and compared with market
expectations of 11 million. The number of available jobs
remained near a record high of 11.448 million set in December
as companies continued to struggle to find scarce workers.
Job openings increased in arts, entertainment, and recreation
(+32,000); educational services (+26,000); and federal
government (+23,000) and decreased in finance and insurance
(-63,000) and in nondurable goods manufacturing (-39,000). Job
openings dropped in the Midwest region and increased in the
West region. Meantime, 4.4 million Americans quit their jobs
with so-called quits rate rising to 2.9% and there were 1.8 job
openings for every unemployed person
Job Openings in the United
States
Job openings, by industry and region, not seasonally adjusted, December
2018–December 2020 (level in thousands)
Total nonfarm 6,749 6,039 6,032

Total private 6,124 5,323 5,422

Mining and logging 23 12 14
Construction 293 210 211
Manufacturing 441 349 444
Durable goods 297 206 253
Nondurable goods 144 144 191
Trade, transportation, and utilities 1,269 1,063 1,086
Wholesale trade 163 165 159
Retail trade 801 631 682
Transportation, warehousing, and utilities 305 266 245
Information 132 145 107
Financial activities 341 311 279
Finance and insurance 278 221 220
Real estate and rental and leasing 63 90 59
Professional and business services 1,196 1,071 1,327
Education and health services 1,251 1,164 1,190
Educational services 93 101 75
Healthcare and social assistance 1,159 1,064 1,115
Leisure and hospitality 907 749 569
Arts, entertainment, and recreation 97 114 36
Accommodation and food services 810 635 533
Other services 271 249 195
Government 624 716 610
Federal 105 88 89
State and local 519 628 521
Education 220 216 196
Excluding education 299 412 325
Job openings,
. region, not seasonally adjusted,
December 2018–December 2020 (level in
thousands)
December December December
2018 2019 2020
Northeast 1,123 1,061 1,029
South 2,544 2,263 2,394
Midwest 1,598 1,253 1,294
West 1,484 1,461 1,315
 Quick Facts: Urban and Regional Planners

$70,020 per year

2016 Median Pay
$33.66 per hour
Typical Entry-Level Education Master's degree in big urban areas
Work Experience in a Related Occupation None
On-the-job Training None
Number of Jobs, 2016 36,000
Job Outlook, 2016-26 13% (Faster than average)
Employment Change, 2016-26 4,600

Quick Facts: Software Developers

$102,280 per year
2016 Median Pay
$49.17 per hour
Typical Entry-Level Education Bachelor's degree

Work Experience in a Related Oc None

cupation
On-the-job Training None
Number of Jobs, 2016 1,256,200
Job Outlook, 2016-26 24% (Much faster than average)
Employment Change, 2016-26 302,500
Quick Facts: Plumbers, Pipefitters, and Steamfitters
$51,450 per year
2016 Median Pay
$24.74 per hour
Typical Entry-Level Education High school diploma or equivalent

Work Experience in a Related Occupat None

ion
On-the-job Training Apprenticeship
Number of Jobs, 2016 480,600
Job Outlook, 2016-26 16% (Much faster than average)
Employment Change, 2016-26 75,200
• For years, experts have warned that Americans don't have the
skills required for new job fields, especially in engineering,
technical and science-related jobs.
– "It's definitely a concern, and it should be a concern for anyone who cares about the future
of U.S. workers," says Chris Tilly, an economics professor at U.C.L.A.
• The issue is even getting attention from the White House.
administration announced a $100 million initiative last
December to improve the number of apprenticeship programs
in the U.S.
• On the other side, some argue that employers are raising the
bar too high on job qualifications and don't want to take the time
to train new workers.
– Consider this: 65% of job postings for executive secretaries or administrative assistants
require a college degree. But among current executive secretaries, only 19% have college
degrees, according to Joseph Fuller, a Harvard Business School professor.
Race Ethnicity and Gender
Human Capital Endowment By Race

• The nation is not preparing its human resources

for competition in general.
• Minority workers in particular are not as well
endowed in terms of skills and qualifications as
such are not rewarded as good white workers
 The Public Role in Workforce
Development
• Human resource development has been
a public/private partnership dating back
many years and involving the public
schools. The partnership (informal and
unspoken) involved:
– Basically schools had the responsibility to
prepare people to enter the workforces
(literacy skills, simple math, and a sense of
civic responsibility), and the employer had the
task to train the worker for specific tasks
 The Public Role in Workforce
Development
• The new economy has altered that old compact.
– The level of skills and training required to enter the workforce in
many jobs has increased beyond what schools can provide
unless they seek training above the standard basic level and at
some instances beyond even the college level
• Recent adult immigrants lacking language and work
skills and people displaced from jobs need to acquire a
number of basic skills just to be able to take regular
training programs.
• People who are not of school age thus find themselves
needing special programs that may be available only
through partner-ships with employers
 Workforce Investment Act

• The federal Workforce Investment Act (WIA) of

1998, which superseded the Job Training
Partnership Act, and reformed federal
employment, training, adult education, and
vocational rehabilitation programs by creating an
integrated "one-stop" system of workforce
investment and education services for adults,
dislocated workers, and youth. This is a
comprehensive range of workforce development
activities offered through statewide and local
organizations.
 Workforce Investment Act

• Available workforce development activities provided

in local communities can benefit job seekers, laid off
workers, youth, incumbent workers, new entrants to
the workforce, veterans, persons with disabilities,
and employers.
• The purpose of these activities is to promote an
increase in the employment, job retention, earnings, and
occupational skills improvement by participants. This, in
turn, improves the quality of the workforce, reduces
welfare dependency, and improves the productivity and
competitiveness of the nation.
 Workforce and economic
development
• There seems to be a 3-way partnership between the
economic developer, the business/private sector and
the provider of the training.
• From the trainer’s point of view this partnership allows
them to use government and private resources more
freely. Trainers also need to ensure that the service they
provide is directly related to what business really wants
and that the people they train can find jobs in the most
promising firms.
• Economic developers in turn realize that they need the
professionals to produce a top-quality workforce that is
able to meet the needs of existing business that might be
attracted to the area.
 Leading Training
Programs/Providers
• Job Training Programs
• Nonprofit community development
corporations
• High Schools
• Adult Education Programs
• Non-accredited postsecondary training
programs
• Accredited colleges and universities
 Focus of Human Resource
Programs
• People entering the workforce for the first time
(youth, high school students, immigrants, house-
wives, welfare recipients, disabled people, and
other groups.
• Examples: School-to work program, ROP
program (Regional Occupational Program)
offers a wide variety of career classes for high
school students and adults. These classes are
intended for anyone seeking a new career, a
career focus, or upgrading of current skills.
 Focus of Human Resource
Programs
• People who have been displaced from the
workforce and are currently unemployed
and seeking to return to work;
• Incumbent workers who need to upgrade
their skills in order to remain competitive in
the firm and for the firm to remain
competitive with other firms. (business is
the largest provider of such programs for
its employees)
 Focus of Human Resource
Programs
• Targeted training programs to potential
employees of firms that are being attracted to
the area, that are moving to the area, or that are
expanding into the area.
– This type is considered to be an incentive provided to
firms that are targeted and recruited to an area.
– The programs are either handled through trained
professionals of the firm, sub-contracted out to
specialized firms or they are offered through local
educational institutions.
Types of human resources development and
training programs: Workforce Investment Boards

– History: Workforce Boards were preceded by Private Industry

Councils (PICs) which had a narrower function than the Boards.
PICs were first created in 1978 under the Private Sector Initiative
Program to increase private sector involvement in federal job
training programs. Four years later, they became the key local
governing bodies under the Job Training Partnership Act of
1982.
– Later legislation relating to the training and placement of welfare
recipients, federal funding of vocational education, and programs
for dislocated workers invested PICs with additional oversight
responsibilities.
– In 1998 the entire federal approach to workforce development
was reformed under the Workforce Investment Act. In the
process PICs were eliminated and Workforce Boards authorized.
 Workforce Investment Boards: Composition

• Private employers must comprise a majority of each

Workforce Board and the chair must be elected from the
private sector membership. Workforce Boards should be
representative of the employer mix in the community, in
terms of both size and type of industry. Employers bring
to the table practical knowledge of the skills required by
workers to satisfy the needs of area businesses.
• Working in conjunction with business members on the
board are representatives of local government,
education agencies, organized labor, economic
development and community-based organizations,
and social service agencies.
• Approximately 15,000 business volunteers serve on the
nation's Workforce Boards, with the average local Board
consisting of approximately 45 total members.
 Workforce Investment Boards: Leading the Way in
Workforce Development

• A key means by which Workforce Boards create local

workforce development systems is through one-stop
career centers which combine multiple federal, state,
and local program funds.
• The policy and oversight responsibility invested in
Workforce Boards aims to ensure that this system is
market-driven; is easily accessible to any individual who
wants or needs a job, education, or training; supplies
well-trained people for all employers; and provides
employers with assistance and support for life-long
learning initiatives and for the creation of a high-
performance workforce.
 Typical Activities of Workforce
Investment Boards
• Manage workforce training schemes, such as group
apprentice schemes, adult retraining, and new training
initiatives
• Offer business support services that increase
employment
• Develop shared training facilities
• Operate general literacy and community education
projects
• Develop on-the-job training and work experience
activities for young adults
• Attempt to reduce discrimination in employment for
disadvantaged groups
The Governor's Workforce Development Board
works to strengthen the skills of Minnesota's
greatest asset — its workforce.
• The GWDB has a responsibility to advise
the Governor on Minnesota’s workforce
system.
• The Board represents key leaders from
business, education, labor, community-
based organizations, and government. It
has statutory responsibility to provide
leadership on opportunities and key
workforce strategies for the state.
 Types of human resources development and training
programs

• First-Source Agreements:
– Contractual obligations by firms receiving government
assistance to interview as the first source local people
for employment
• Employment Maintenance or support programs
– A local government or non-profit agency receive the
welfare subsidy or unemployment funds to create a
job for hard to place local people or for employing a
person at the full salary range
• Skill Banks:
– Local employment office or other group collects lists
of skills and backgrounds of local unemployed people
and posts them on the web. These skills can be
matched with local vacancies
 Types of human resources development and training
programs

• Customized Training: Occurring at the

employer’s side or at a local college to provide
specific courses designed to meet employer
expectations. It is usually offered to new or
expanding firms
• Competency Training: Human resource
professionals work with groups of employers to
identify core competencies required in specific
industries
• Comprehensive Training to meet social needs:
Programs that address an array of necessary
skills for people who are difficulty to place.
 Types of human resources development and training
programs

• Youth Enterprise: Started through the

Community Youth Employment Program. Its
main idea is to rekindle the entrepreneurial spirit
in youth and encourage people to create their
own job opportunities.
– The basic idea is to start businesses within the skill
range of youth to give them some experience in how
the business system works. Community-based
organizations are usually the ones that facilitate
such programs since they have access to many
resources so as to provide the technical assistance
for the projects.
 Types of human resources development and training
programs

• University-Industry Technology Transfer:

– This involves universities sharing their research with

local businesses and through the provision of
specialized courses and programs to meet specific
needs of industry.
– These kind of programs leverage private funding of
faculty research and train students, usually graduate
students , who apply their knowledge in industry,
often in nearby industrial parks.
Workforce Centers
 Minnesota Work Force Centers
• Work-Force Centers (WFCs) are "one-stop
shops." They help people with career planning
and job searching. Any Minnesota job seeker or
career explorer can benefit from the services and
resources offered by the Work-Force Centers:
– Career counselors and other trained staff to help you
find the resources and services you need.
– Classes and workshops to help you with your job
search and career plan. Contact your local Work-
Force Center for details and schedules.
[Link]
kshops/
– Free assessments and other tools to help you make
informed career decisions.
 Minnesota Work Force
Centers
• Free access to computers, the Internet, printers,
fax machines, copiers, and telephones for job
search related activities.
• Assistive technology options to help people
with disabilities.
• Access to wage and employment information.
• Information on community support services, job
training programs, education, and financial aid.
• Minnesota Veterans Programs help veterans
searching for jobs.