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What reforms are necessary to prepare and strengthen the training system for individuals to prepare the workforce to meet the economic needs of Minnesota businesses?
The business community supports a system that prepares the future workforce of Minnesota with employer-driven results by eliminating duplicative programs, responding to market needs and accountability. In 2018, 70 percent of Minnesota jobs will require some education beyond high school. Due to the increasingly competitive global economy and evolving technologies, Minnesota’s need for a highly-skilled workforce is among the highest in the country. At present only 40 percent of working-age adults in Minnesota have a postsecondary degree. The key to all workforce reforms is that they must respond to the local labor market data and be employer driven. This will allow for the employment and training system to meet the actual needs of employers.
The Minnesota Chamber believes that there are key improvements that can be made that will improve the state’s future workforce. These include but are not limited to:
Eliminate duplicative programs:
To avoid costly and burdensome duplication, efforts must be made to redesign the compartmentalized federal funding that Minnesota receives. These federal formulas must be aligned in innovative ways to coordinate and sustain efforts that connect the data system discussed below. To meet the needs of each local area in the state, there must be flexibility in overseeing and administering programs to allow for tailoring and maximizing efficiency. The Chamber supports recommendations that increase efficiency, reduce costs and capitalize federal revenue sources.
Increase the skills of working learners:
Minnesota is home to 1.2 million potential working learners – individual wage-earners who lack post-secondary credentials – which comprises 60 percent Minnesota adults 18 to 64 years old. With one-third of Minnesota’s current workforce already working, we must focus on additional education and training for potential working learners, in addition to other groups. Employment and training services for this population should be offered in a competitive environment, including but not limited to, business organizations, community colleges, private and for-profit training providers. Eligibility to compete in these programs should be based on performance in meeting employer needs for qualified employees. Therefore, the Minnesota Chamber supports initiatives that aim to train and educate this population.
Use an integrated data system to improve outcomes for working learners:
Education and training providers must work with employers and labor market analysts to identify the skills and careers that are in or predicted to be in high demand. To accomplish this, a data system that allows for these different industries to communicate will allow for improved outcomes for working learners and students who have not yet entered the workforce.
Accountability: The Governor’s Workforce Development Council should develop performance measures for workforce programs, evaluate their effectiveness and prepare an annual report published prior to the start of each legislative session. Performance should be based and evaluated to measure the effectiveness of the system in meeting both the workforce needs of employers and employment needs of employees. Training centers should specifically be evaluated on the ratio of people trained to jobs obtained in the field of training. The training centers shall be required to submit this data to the Legislative Auditor to prepare a report on their successful job placement rates. The report should be used by the council to make funding recommendations to the Legislature. Only effective programs should continue to be funded.
Carnevale, A.P., Smith, N., & Strohl, J. (2010). Help Wanted, Projections of Jobs and Education Requirements through 2018. Georgetown Center on Education and the Workforce. Available at http://cew.georgetown.edu/JOBS2018/
The growing skills gap has significant implications for Minnesota’s economic competitiveness. Research has shown that educational advances account for 10 to 25 percent of economic growth, and regions with higher levels of education have higher incomes and more productivity growth. The focus of all workforce development reform must be driven by actual needs of employers based upon accurate and timely local labor market data.
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