Oklahoma Employment and Training Issuance #09-2005

Local Policy on Demand Occupations for the Central Oklahoma Workforce Investment Area June, 2005

(Approved by the COWIB – June 15, 2005)

PURPOSE: To establish a local policy regarding the development and use of demand occupations and demand skills listings.

AUTHORITY: The authority for this policy derives from Section 134(d) of the Workforce Investment Act of 1998 (WIA) which requires each local workforce investment board to make available, through their one-stop career centers, a listing of eligible providers of training services (the “State List”).

Section 134(d)(4)(G)(iii) of the Act specifies that the training services provided with the support of WIA Adult and Dislocated Worker funds shall be linked to certain “demand occupations”--

“(iii) Linkage to occupations in demand.--Training services provided under this paragraph shall be directly linked to occupations that are in demand in the local area, or in another area to which an adult or dislocated worker receiving such services is willing to relocate, except that a local board may approve training services for occupations determined by the local board to be in sectors of the economy that have a high potential for sustained demand or growth in the local area.”

BACKGROUND: The identification of demand occupations is an important duty of local workforce investment boards. By identifying demand occupations, local boards can help to make sure that WIA resources are deployed to meet the current and future workforce needs of employers in our area.

Each year, the Central Oklahoma Workforce Investment Board receives WIA funds which may be used to increase the skills of eligible adults and dislocated workers. Occupational skill training activities are a substantial component of the workforce development services that are offered through our One-Stop Career Centers.

Typically, occupational skills training is made available to WIA program participants through the use of Individual Training Accounts (ITA’s). Participants may choose to use his/her ITA to purchase training services through any eligible training provider on the State List. Alternatively, a WIA participant may receive training through a contract (such as a Customized Training agreement or an On-the-Job Training contract).

1 NOTE: The COWIB contributes to the development of the State List by reviewing the eligibility of training providers in the Central Oklahoma area. As of May 1, 2005, more than 50 eligible training providers from the Central Oklahoma area had been added to the State List after receiving approval from the COWIB.

Whether a participant receives training through an “ITA” or through a contract, the COWIB must assure that WIA-sponsored training is linked to a demand occupation.

STATE & FEDERAL REQUIREMENTS: In developing a local policy on demand occupations, the Central Oklahoma Workforce Investment Board must be mindful of the requirements of its State and Federal funding sources.

Federal Policy: The Federal Regulations at 20 CFR Part 663.310 describe the requirements of federal law that must be met by local workforce investment areas.

“Sec. 663.310 Who may receive training services?

“Training services may be made available to employed and unemployed adults and dislocated workers who… “(c) Select a program of training services that is directly linked to the employment opportunities either in the local area or in another area to which the individual is willing to relocate.…”

The Preamble to the Federal Regulations provides a commentary on this requirement of the law, making a distinction between the phrases “employment opportunity” and “occupations in demand.”

The language used in the rule at Sec. 663.310(c) is essentially the same as that found in the Act at section134(d)(4)(A)(iii). Section 134(d)(4)(A)(iii), discussing eligibility for training uses the phrase ``directly linked to the employment opportunities in the local area or in another area. . . .''

In contrast, section 134(d)(4)(G)(iii), dealing with ITA's uses a slightly different phrase, ``directly linked to occupations that are in demand in the local area....''

We assume that when Congress uses different language, it means different things. In this case, we think that the differences in phrasing mean that a person may be eligible to receive training if she/he seeks training in an occupation in which there are jobs available in the local area or in another local area to which the person is willing to relocate. On the other hand, training may not be financed through an ITA unless the training sought is in an occupation in demand in the local area or in an area to which the participant is willing to relocate.

2 Thus, if a participant is found eligible for training because he/she seeks training in an occupation in which there are employment opportunities available but which is not classified by the local area as an occupation in demand, the training can only be provided if it can be arranged through one of the three exceptions to ITA's. While it is possible that individual may not be able to receive WIA-funded training because of this distinction, we think that there will not be many cases where this occurs.

Since Sec. 663.310 correctly reflects the statutory language, no change has been made to the Final rule. We do, however, encourage State and Local Boards to consider a range of approaches for identifying ``employment opportunities in the local area,'' including allowing participants to demonstrate employer-identified job opportunities.

State Policy: The Oklahoma Employment Security Commission addresses the requirements of WIA Section 134(d)(4)(G)(iii) through Oklahoma Employment & Training Issuance #9-2005, “Demand Occupations Policy.”

OETI #9-2005 -- published on April 27, 2005 – is a statement of Oklahoma’s statewide policy on demand occupations. It provides guidance and policy direction to local Workforce Boards and Workforce Areas on the development and use of demand occupations and demand skills listings. It requires local workforce investment boards to establish local procedures for the development and maintenance of demand occupations and demand skills lists. According to OETI #9-2005, these local lists must be established by the beginning of program year 2005.

The core of the State Policy provided in OETI #9-2005 is stated in the following paragraphs--

Message: WIA training opportunities, whether the result of Individual Training Accounts (ITA) or contracts, should focus on community talent growth and aligning the workforce with targeted industry clusters (existing or emerging). To that end, occupations and/or skills shall not, in all instances, require history of demand to qualify for identification as “In Demand”.

 Each local board shall establish and maintain a list of occupations in demand, hereafter referred to as “Demand Occupations”, that are: o In demand in the local board’s Workforce Investment Area; or o Are determined by the local board to be in sectors of the economy that have a high potential for sustained demand or growth in the local area. o Are common to targeted industry clusters within the workforce investment area.

 Local boards shall also establish a list of demand skills. These skills should:

3 o Support economic development priorities; o Focus on industrial sectors and clusters, whether present or emerging; o Address industry-specific or general shortages; o Enhance workplace literacy, including vocational English as a second language.

 Targeted industry clusters, demand occupations, and demand skills must be identified by the board, documented in official meeting minutes, and recertified as current during the first meeting of each program year that qualifies for attendance by the public under the Oklahoma Open Meetings Act.

 Local boards are not required to include in their listings, skills or occupations that are in demand in another area to which an adult or dislocated worker is willing to relocate, and for which training has been approved.

Action: Local boards shall establish local procedures for development and maintenance of demand occupations and demand skills lists, and shall have those lists established by the beginning of program year 2005. This is official policy and must be maintained in your permanent files. LOCAL POLICY:

It shall be the policy of the Central Oklahoma Workforce Investment Board (COWIB) and its Board of Local Elected Officials (LEO) that all training services provided with WIA resources shall be delivered in a manner that fully complies with the WIA law and regulations.

(1) Demand Occupations List

The COWIB’s Chief Executive Officer (CEO) shall be responsible for developing and maintaining a list of “Demand Occupations.”

The list of demand occupations shall include:

 Occupations that are in demand in the Central Oklahoma area; or  Occupations determined to be in sectors of the economy that have a high potential for sustained demand or growth in the Central Oklahoma area.

It shall be the policy of the Central Oklahoma Workforce Investment Board that WIA funds will not be used to sponsor training in occupational areas unless they are in demand in Central Oklahoma – even though they may be in demand in another area to which an adult or dislocated worker is willing to relocate. The COWIB believes that WIA program

4 resources should be utilized, first and foremost, to support the current and future needs of Central Oklahoma employers.

Procedures for Developing the “Demand Occupations” List--

In determining “Occupations in Demand” for the Central Oklahoma area, the CEO will use a 3-step process:

(a) Examine Labor Supply and Demand Reports; (b) Identify Business Sectors with High Potential for Sustained Growth; (c) Identify Occupations that are Common to Targeted Industry Clusters.

During each step in this process, the CEO may seek input / comments from members of the COWIB, One-Stop Partners, elected officials, and other stakeholders in the local workforce investment system.

(a) Labor Supply and Demand Reports.

In determining “Occupations in Demand” for the Central Oklahoma area, the CEO should give consideration to the supply of and demand for occupational skills in a variety of career clusters. Occupational demand should not be measured simply in terms of the annual number of job openings for a particular job title. The CEO should take into account the high turnover that is associated with certain job titles. Other factors to be considered include: (a) The minimum skills required to perform the job; and (b) The average wage for an entry-level position in the occupation.

In examining supply and demand, the CEO may use published or unpublished labor force data from the Oklahoma Employment Security Commission, the Greater Oklahoma City Chamber of Commerce, the Oklahoma Department of Commerce, or any other public- or private-sector agency or organization.

When using labor market information, the CEO may decide to use data that is specific to: (i) The Central Oklahoma workforce investment area, or (ii) An area contiguous to it, if WIA-specific data is not available.

The COWIB is interested in labor market information for the following areas—

Central Oklahoma Workforce Investment Area: Oklahoma City, Oklahoma County, Logan County, and Canadian County;

Oklahoma City Metropolitan Statistical Area: Canadian County, Cleveland County, Grady County, Lincoln County, Logan County, McClain County, and Oklahoma County.

5 The 10-county “Greater Oklahoma City Partnership” area: Canadian County, Cleveland County, Grady County, Lincoln County, Logan County, McClain County, Oklahoma County, Payne County, and Pottawatomie County.

Published “Help Wanted” listings (newspaper or online) may be used as a source of data for determining occupations in demand.

The CEO may use informal reports of occupational demand that originate from one of the COWIB’s One-Stop Career Centers or One-Stop Partner agencies.

In determining employment opportunities in the area, the CEO may accept recommendations or requests from participants who are able to demonstrate the existence of employer-identified job opportunities.

(b) Business Sectors with High Potential for Sustained Growth.

With input from the Greater Oklahoma City Chamber of Commerce and other economic development entities serving the Central Oklahoma area, the CEO shall identify business sectors with high potential for sustained growth. Labor market data for these sectors shall be presented to the COWIB, including employment projections (as available).

Based on the CEO’s recommendation, the members of the COWIB shall make a determination of which sectors of the local economy have a high potential for sustained demand or growth.

(c) Identify Occupations that are Common to Targeted Industry Clusters.

After the COWIB has made a determination of industry sectors with high growth potential, the CEO shall identify a set of occupations or job titles that are commonly associated with those targeted industry clusters. The occupations may be identified by using a “crosswalk” of databases (such as those published by the U.S. Census Bureau or the U.S. Department of Labor, etc.) or by surveying employers who are representative of the targeted industry clusters in the workforce investment area.

The list of targeted industry clusters and demand occupations will be presented in a report to the COWIB for formal approval. The report will be reviewed by the Board at its first regular meeting of the program year (e.g. -- August 17, 2005). The vote on the report will be documented in official meeting minutes.

An updated report will be presented to the COWIB on an annual basis during the first meeting of each program year (or more frequently, if determined necessary by the COWIB or its CEO).

6 (2) Demand Skills List

The CEO shall also establish a list of demand skills. These skills should:

 Support economic development priorities;  Focus on industrial sectors and clusters, whether present or emerging;  Address industry-specific or general shortages;  Enhance workplace literacy, including vocational English as a second language.

Procedures:

In determining “Demand Skills” for the Central Oklahoma area, the CEO will seek input and comments from members of the COWIB, One-Stop Partners, elected officials, and other stakeholders in the local workforce investment system.

Demand Skills may include general workplace skills and competencies that have been recommended by private or public research organizations, including—

 The Secretary's Commission on Achieving Necessary Skills;  The Society for Human Resource Management (SHRM);  CompTIA;  Etc.

“Demand skills” contribute to business productivity. They include skills that are useful in advancing a worker’s career, such as: Problem Solving, Human Relations, Science and Math, Information Management, Business Management, English Language Proficiency, Foreign Language Skills, Interpersonal and Teamwork Skills, Presentation Skills, Internet Use Skills, Quality Assurance, Technical Reading and Writing, Thinking Skills, People Skills, etc.

The COWIB’s Demand Skills List will include skills / competencies that are considered necessary to Central Oklahoma’s future economic development. It may also include skills and competencies that are specific to targeted industries.

After the CEO has made a determination of “demand skills” for the Central Oklahoma area, the list of demand skills will be presented in a report to the COWIB for formal approval. The report will be reviewed by the Board at its first regular meeting of the program year (e.g. -- August 17, 2005). The vote on the report will be documented in official meeting minutes.

An updated report will be presented to the COWIB on an annual basis during the first meeting of each program year (or more frequently, if determined necessary by the COWIB or its CEO).

7 Attachment

Oklahoma Employment Security Commission P.O. Box 52003 Oklahoma City, OK 73152-2003 Telephone (405) 557-0200

Oklahoma Employment and Training Issuance #09-2005

DATE: April 27, 2005

TO: WIA Grant Recipients

FROM: Employment and Training Division

Subject: Demand Occupations Policy

Purpose: To clarify Oklahoma policy regarding the development and use of demand occupations and demand skills listings.

Background: The Workforce Investment Act (WIA) empowers States and WIA grant sub-recipients to expend WIA Title I funds for training programs that lead qualifying individuals to self sufficiency. Section 134 of the Act specifies that funds allocated to a local area may be expended through the use of Individual Training Accounts (§134(d)(4) (G)) or pursuant to a contract of services in lieu of an individual training account (§134(d)(4)(G)(ii)) for qualifying individuals who select programs of training services that are directly linked to employment opportunities in the local area involved or in another area to which the adults or dislocated workers receiving such services are willing to relocate (§134(d)(4)(A)(iii)).

On April 1, 2004, the Governor realigned the Oklahoma Employment Security Commission to the Oklahoma Department of Commerce and established the Office for Workforce Solutions within that agency. The Governor also established guiding principals for workforce and economic development, including “Oklahoma will have a competitive labor pool that addresses the quality needs of current and anticipated industry clusters and employer groups.”

Message: WIA training opportunities, whether the result of Individual Training Accounts (ITA) or contracts, should focus on community talent growth and aligning the workforce with targeted industry clusters (existing or emerging). To that end, occupations and/or skills shall not, in all instances, require history of demand to qualify for identification as “In Demand”.

8  Each local board shall establish and maintain a list of occupations in demand, hereafter referred to as “Demand Occupations”, that are: o In demand in the local board’s Workforce Investment Area; or o Are determined by the local board to be in sectors of the economy that have a high potential for sustained demand or growth in the local area. o Are common to targeted industry clusters within the workforce investment area.

 Local boards shall also establish a list of demand skills. These skills should: o Support economic development priorities; o Focus on industrial sectors and clusters, whether present or emerging; o Address industry-specific or general shortages; o Enhance workplace literacy, including vocational English as a second language.

 Targeted industry clusters, demand occupations, and demand skills must be identified by the board, documented in official meeting minutes, and recertified as current during the first meeting of each program year that qualifies for attendance by the public under the Oklahoma Open Meetings Act.

 Local boards are not required to include in their listings, skills or occupations that are in demand in another area to which an adult or dislocated worker is willing to relocate, and for which training has been approved.

Action: Local boards shall establish local procedures for development and maintenance of demand occupations and demand skills lists, and shall have those lists established by the beginning of program year 2005. This is official policy and must be maintained in your permanent files.

Inquiries: Refer inquiries to Jeane Burruss, Manager of Systems Operations at (405) 557-7134 or [email protected].