Workforce Innovation and Opportunity Act Unified State Plan March 28, 2018

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Workforce Innovation and Opportunity Act Unified State Plan March 28, 2018 Workforce Innovation and Opportunity Act Unified State Plan March 28, 2018 Page 1 of 249 Table of Contents I. WIOA State Plan Type ............................................................................................... 3 II. Strategic Elements…. .............................................................................................. 4 o Economic, Workforce, and Workforce Development Activities Analysis ................ 4 o State Strategic Vision and Goals .....................................................................22 o State Strategy ..............................................................................................28 III. Operational Planning Elements ..................................................................................31 o State Strategy Implementation .......................................................................32 o State Operating Systems and Policies ..............................................................64 IV. Coordination with Combined Plan Program .................................................................88 V. Common Assurances ................................................................................................90 VI. Program-Specific Requirements for Core State Plan Programs ......................................91 o Adult, Dislocated Worker, and Youth Programs Activities and Assurances ...........99 o Wagner-Peyser Act Program ........................................................................ 115 o Adult Basic Education and Literacy Programs ................................................. 124 o Vocational Rehabilitation.............................................................................. 134 VII. Appendix ................................................................................................................ 243 Page 2 of 249 I. WIOA State Plan Type North Carolina has elected to submit a Unified State Plan. This plan includes the Adult Program, Dislocated Worker Program, Youth Program, Wagner-Peyser Act Program, Adult Education and Family Literacy Act Program, and the Vocational Rehabilitation Program. Page 3 of 249 II. Strategic Elements (a) Economic, Workforce, and Workforce Development Activities Analysis. The Unified State Plan must include an analysis of the economic conditions, economic development strategies, and labor market in which the State’s workforce system and programs will operate. (1) Economic and Workforce Analysis (A) Economic Analysis. The Unified State Plan must include an analysis of the economic conditions and trends in the State, including sub-State regions and any specific economic areas identified by the State. This must include— (i) Existing Demand Industry Sectors and Occupations. Provide an analysis of the industries and occupations for which there is existing demand. (ii) Emerging Demand Industry Sectors and Occupations. Provide an analysis of the industries and occupations for which demand is emerging. (iii) Employers’ Employment Needs. With regard to the industry sectors and occupations identified in (A)(i) and (ii), provide an assessment of the employment needs of employers, including a description of the knowledge, skills, and abilities required, including credentials and licenses. As part of the State’s vision for building economic prosperity across all areas of the state, North Carolina established prosperity zones via legislation in 2014. These eight multi county regions implemented in January 2015 are intended to help ensure economic growth across all of North Carolina’s 100 counties, by leveraging regional economic, workforce and educational resources. Overlaying the eight prosperity zones are North Carolina’s 23 local workforce development board areas. North Carolina has the 9th largest state population, encompasses an area of almost 54,000 square miles ranging from the Blue Ridge Mountains to Page 4 of 249 the Atlantic Ocean, and had a GDP of $518 billion in 2016, making it about the size of the country of Sweden’s economy.1 Over the previous century, it has transformed from an agricultural state with a manufacturing base in tobacco, textiles, and furniture to an advanced economy with strengths in finance, biotechnology, and advanced manufacturing and the knowledge economy more broadly. Throughout this transformation, the North Carolina economy has in many ways become more like the U.S. economy, while maintaining some key distinctions. North Carolina has benefitted from Sunbelt migration over the past several decades, particularly during the 1990’s and 2000’s, which helped to develop several of North Carolina’s large metropolitan statistical areas including: Charlotte, Durham, Raleigh, and the Piedmont Triad, as well as the smaller but fast-growing metros of Asheville and Wilmington. This process involved adding people from other parts of the U.S. as well as through international immigration. Still, North Carolina has the second highest rural population in the U.S. and 34 percent of the state’s residents live in rural areas.2 However, the rural population has not benefitted to the same extent from the transformation of the state and its economy. Out-of-county commuting has increased, with only 12 counties having more than 50 percent of their workers living and working in the same county as of 2014 (the latest data available), down from 47 counties in 2002.3 Like the U.S. and other developed nations, North Carolina’s population faces certain larger structural challenges including a slowing population growth rate, an aging workforce, and issues of inequality and regional disparities. Like the U.S., the state has become less homogenous, with prosperous urban areas (characterized by knowledge-intensive service industries) and less prosperous rural areas still reflective of manufacturing’s legacies. In addition, North Carolina is also experiencing larger changes to the economy due to technological advancements, global trade and interdependence, and the slowing of economic growth, new firm formation and productivity. As we seek to understand recent changes in North Carolina’s economic performance, it is important to highlight areas in which the state is reflective of general trends as well as areas in which it diverges from these trends. Furthermore, North Carolina’s economy, while expanding, must be viewed in the context of the Great Recession and the slow recovery which followed, which accelerated existing structural changes already underway. Following a peak in late 2007, North Carolina’s number of jobs fell by 400,000 (almost 10 percent) and it took seven years to return to pre-recession levels.4 In 2016, the state had only 5 percent more jobs than during its 2007 peak.5 Recent changes in the North Carolina economy must be understood in the context of the long shadow of this transformative event. Industry Projections North Carolina is projected to add more than 550,000 jobs by 2024, with the Service-Providing sector projected to contribute nearly 90 percent of all net new jobs created.6 Health Care and Social Assistance, the state’s largest industry by employment, is projected to add 135,000 jobs. Construction is projected to be one of the fastest growing industries in the state, growing 20.6 percent and adding nearly 37,000 jobs. Projections for the Manufacturing industry show a very modest increase of 0.7 percent, adding 2,900 jobs. 1 U.S. Census Bureau, Bureau of Economic Analysis, International Monetary Fund. 2 U.S. Census Bureau, 2010 Census. 3 U.S. Census Bureau. 2016. OnTheMap Application. Longitudinal-Employer Household Dynamics Program. http://onthemap.ces.census.gov/ 4 Quarterly Census of Employment and Wages, North Carolina Department of Commerce. 5 Ibid. 6 All projection data from Employment and Occupational Projections, North Carolina Department of Commerce. Page 5 of 249 NC Industry Employment Projections, 2014 - 2024 Industry Group Employment Employment Net Percent Est. 2014 Est. 2024 Change Change Agriculture, Forestry, Fishing and Hunting 21,832 20,680 -1,152 -5.3% Mining 2,833 2,755 -78 -2.8% Utilities 13,662 12,826 -836 -6.1% Construction 179,131 216,103 36,972 20.6% Manufacturing 449,132 452,055 2,923 0.7% Wholesale Trade 176,934 194,433 17,499 9.9% Retail Trade 472,161 522,793 50,632 10.7% Transportation and Warehousing 132,469 140,285 7,816 5.9% Information 72,571 75,157 2,586 3.6% Finance and Insurance 153,490 180,950 27,460 17.9% Real Estate and Rental and Leasing 52,324 60,024 7,700 14.7% Professional, Scientific, and Technical Services 207,838 247,708 39,870 19.2% Management of Companies and Enterprises 80,446 103,353 22,907 28.5% Administrative and Support and Waste 282,767 326,758 43,991 15.6% Management and Remediation Services Educational Services 369,701 403,675 33,974 9.2% Health Care and Social Assistance 554,651 689,872 135,221 24.4% Arts, Entertainment, and Recreation 61,315 74,856 13,541 22.1% Accommodation and Food Services 382,048 446,790 64,742 16.9% Other Services (except Government) 167,997 179,311 11,314 6.7% Government 290,358 300,768 10,410 3.6% Self Employed and Unpaid Family Workers, All 280,354 306,032 25,678 9.2% Jobs TOTAL 4,404,014 4,957,184 553,170 12.6% Source: Industry Projections, Labor & Economic Analysis Division, North Carolina Department of Commerce As part of a collaborative effort among the state’s workforce partners and the state’s Labor and Economic Analysis Division, North Carolina established the prosperity zone sub regions. These multi county regions were established to facilitate and encourage regional
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