California Workforce Development CA Fact Pack

Last updated: February 1, 2019 Appendix

Prepared by Markle Foundation Fact Pack Overview and Methodology

Overview This fact pack explores the current and potential future state of workforce development in the state of CA. It has been developed based on analysis of public data sets, interviews with experts (including transition team members, current administration team, and experts out of the state of CA). Analyses in this document include: • 2018 survey of 1700+ Adult Californians • Analysis of labor demand and labor supply for the state of CA and for CA regions • Overview of demographic trends, wage trends, and skill trends • Analysis of apprenticeships by sector and demographics • Impact of future trends on labor demand and supply, wages, and skills (e.g., automation, independent work/gig economy, demographic trends, superstar firms) • Analysis of educational attainment, capacity, and quality of educational programs

2 Executive Summary (1 of 2)

• California is the 5th largest economy in the world and currently has its lowest unemployment rate in more than a decade • Despite a thriving economy, jobs and the economy are top of mind for Californians and a key part of the Governor’s promise to develop an upward economy that works for every Californian – A recent survey shows that Californians believe jobs and the economy are the top issue facing California and that improving the economy is the number one priority for the government – The Governor made many public campaign commitments around workforce development • Today CA faces several core challenges: – Compared to other states, California is near the bottom for underemployment, unemployment and long-term unemployment rates – California has the second highest cost of living in the US and after adjusting for cost of living, California has a high share of low-wage occupations – California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared • These challenges have had disproportionate impact on certain regions and individuals – A regional comparison shows that workers near urban areas have low unemployment and high wages, while workers in reginal economies outside of major MSAs face the opposite – Unemployment for California youths aged 16-24 and African Americans is disproportionately high, and there are nearly 2 unemployed individuals for every job opening – 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states – Despite a growing number of jobs, domestic migration is up as Californians move out of the state due to many of these challenges – Despite CA’s HS graduates being increasingly diverse, students of color continue to be less likely to graduate high school UC or CSU eligible than peers

3 Executive Summary (2 of 2)

• Major workforce trends are shifting the skills needed for jobs and changing the way we work. The challenges that face Californians will amplify and potentially widen levels of inequality if future workforce trends are not managed properly: − In California, automation has the potential to disproportionately impact activities in low- and middle- skill occupations (e.g., occupations in sectors like accommodation, food, and retail) − Jobs in healthcare, business and management show promising wages and employment growth; however are projected to be in under-supply in the future − Independent workers make up nearly 30% of the working age population in California. In Los Angeles, 54% of workers use independent work as their primary source of income compared to only 46% nationally; independent workers may require different support services to ensure livable earnings − CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of its population today • Furthermore, there are capacity constraints at some of California’s higher education institutions, and other training programs are unaffordable with inconsistent quality and limited career pathways − Higher educational attainment has been shown to improve labor force participation and lower unemployment rates, however the gap between demand and capacity for higher ed in California is projected to grow − Adult learning is on the rise in California due to an increased need for lifelong learning. Historically, these adult learners have turned to community colleges for reskilling − Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in growing sectors, healthcare or IT − Further, training programs are unaffordable with inconsistent quality and links to career pathways and employer needs • To address these challenges, the CA ecosystem could develop a skills-based labor market that can align stakeholders within regions around a common currency of skills

4 For context, California brings unique strengths to creating a modernized, skills-based labor market

Summary of California’s potential workforce opportunity

• Fifth largest economy in the world, home to more global Fortune 500 companies than any other state (50+),and largest labor force in the country at ~19M; • Home to technology innovators and disruptors such as Airbnb, Adobe, Apple, Cisco, Facebook, Google, Intel, LinkedIn, Salesforce, Oracle, and Uber; • Highest amount of venture capital linked to Education & Workforce Development in the US; • Significant amount of philanthropic capital (7,000+ foundations donating $8B+ Challengesannually); • Home to world renowned higher education infrastructure with its UC and CSU systems; • Largest community college system in the US (2.3M students) and a visionary for higher education with California’s new online community college; and • Pioneer at the forefront of many national and global issues (e.g., leading stricter emission standards for climate change)

SOURCE: CA Workforce Development Fact Pack 2019 5 Dec. 2018 survey of 1700+ Californians highlights that improving jobs is the most important priority for the government

What do you think should be the state What do you think is the most important government’s most important priority in issue facing people in California today? planning for California’s future?

Jobs, economy 17% Improving jobs, economy 39% Environment 10% Housing costs, availability 9% Protect environment 20% Immigration 9% Updating transportation & 15% Wildfires 9% water systems Government in general 5% Creating more equality 9% Homelessness 5% Crime, gangs, drugs 4% Homelessness 3% Healthcare, health insurance 4% Immigration 2% State budget, deficit, taxes 4% Education, schools, teachers 3% Other 9% Water, drought 3% Infrastructure 2% All of above 2% Other 12% Don’t know 1% Don’t know 5%

SOURCE: PPIC: Californians and Their Government Survey Dec 2018 6 The Governor recognized some of these challenges during his campaign

“Create a new job-training “Establish 500,000 earn-and-learn system that gives people apprenticeships by 2029” relevant skills”

“ Develop transformation maps for every Develop transition cluster, industry and region of our state to programs for veterans entering the workforce” make sure we’re preparing folks for the jobs that actually exist ”

“Work with the UC, CSU, and community college systems to overlay industry trends, job availability, and educational data, and then develop relevant curriculum to meet those workforce and skills needs”

7 Table of contents: Foundational analyses and expert interviews have identified several workforce challenges facing California (1/4)

Challenges Potential opportunities Page By many key metrics, California has improved, but it still • Provide better support services and 12 1 has higher under-employment and unemployment coaching to address underemployment for compared to the rest of the US specific regions and population groups

California has the second highest cost of living in the • Grow the share of workers who earn low- 15 2 US and after adjusting for cost of living, it has more and middle-wages with access to affordable low-wage employees than peer states housing and other support services • Develop construction talent in specific regions required to build affordable housing • Explore novel scalable technology (e.g., distance learning programs) California faces a gap in supply and demand for • Create a transparent ecosystem with better 3 18 many occupations, looking ahead the gap is information so job seekers, employers and expected to grow and both employers and students education institutions can better inform do not believe graduates are prepared decision-making

A regional comparison shows that workers in regions • Engage employers in “small independent 4 34 outside of major MSAs (e.g., El Centro, Fresno, economies” to develop skills via training Bakersfield, Merced) face the highest unemployment programs (e.g., apprenticeships) within these and lowest wages respective regions

There are two unemployed individuals for every job • Target interventions for specific populations 40 5 posted; CA youths and African Americans are to improve key employment opportunities at disproportionately affected a regional level • Provide targeted support services based on varying learner needs

8 Table of contents: Foundational analyses and expert interviews have identified several workforce challenges facing California (2/4)

Challenges Potential opportunities Page 5.3M Californians find themselves below the poverty • Engage all stakeholders in specific regions to 6 47 line and income and wealth inequality in California is develop regional workforce plans growing faster than most states (employers, HEIs, philanthropies, learners)

Despite a growing number of jobs, domestic migration • Partnering with CA tech companies to 50 7 has grown over time as Californians move to other change the narrative on major workforce states dev initiatives (regional focus)

Despite CA’s HS graduates being increasingly diverse, • Increase awareness of alternative options 54 8 students of color in HS continue to have an (community colleges, apprenticeships) achievement gap (e.g., they are less likely to graduate • Increase accessibility to higher education high school UC or CSU eligible than peers) through community colleges where capacity is less constrained

In California, automation has the potential to • Proactively address automation by providing 56 9 disproportionately impact low-skill and middle-skill skills accounts for reskling opportunities occupations (especially for workers in occupations with high automation potential)

Independent workers make up nearly 30% of working • Protect wages for independent workers 10 63 age population in California, of those in the Bay Area especially for those who rely on independent and Los Angeles, 54% use independent work as their work as their primary source of income primary source of income

9 Table of contents: Foundational analyses and expert interviews have identified several workforce challenges facing California (3/4)

Challenges Potential opportunities Page CA’s population is expected to continue aging with • Target workforce development initiatives on 11 66 20% of population being 65+ by 2030 vs. ~15% of HC (high growth sector across regions) population today • Use online community college to determine what is effective in at-scale adult training

Higher educational attainment is shown to improve • Increase accessibility to higher education 69 12 labor force participation and lower unemployment through community colleges where capacity rates, however the gap in demand and capacity for is less constrained than four year institutions higher ed is projected to grow

Adult learning is on the rise in California. Historically, • Increase awareness and completion rates for 13 77 these learners turned to community colleges for adult-learning programs at community reskilling, however more are turning to private colleges as a cost-efficient option for adults institutions to fill this gap • Support innovation in tech enabled/scalable adult learning to determine what works (e.g., online community college, boot camps) Apprenticeship programs are sub-scale and less than • Grow sector mix (e.g., Healthcare, IT, 85 14 1% of current registered apprenticeship programs in Construction, Education) the state are in two fast growing sectors, healthcare • Target Women (only 6% of apprenticeships) and IT • Expand definition of apprenticeships to increase viability for scale

Training programs are unaffordable with inconsistent • Increase forward-looking curriculum that 15 89 quality and links to career pathways and employer overlays social and emotional learning and needs work readiness onto traditional coursework • Increase fully covered, online or blended model that is self-paced and competency- based 10 Table of contents: Foundational analyses and expert interviews have identified several workforce challenges facing California (4/4)

Challenges Potential opportunities Page In several regions in California, the highest growth jobs • Broaden economic development program to 16 94 in different regions in California are not always high attract high-wage sectors wage • Invest in regional training capacity that can increase the talent density of potential employees for growth sectors

A majority of public funding for workforce • Deploy federal funding for WIOA and 17 97 development comes with conditions, but a employer partnerships towards broader state combination of discretionary programs, foundations, initiatives under certain conditions and private employers can provide flexibility to support • Leverage foundation funding over targeted new initiatives programs

California does not have a centralized data platform • Build a centralized data repository and 102 18 that provides an integrated view of the labor market common taxonomy for skills, labor market dynamics, skills required, and pathways for job seekers, dynamics and education/training programs employers and educators • Create awareness of the available resources across stakeholders

11 A closer look at the workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US

2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states

3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared

4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages

5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations

10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today

12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow

13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap

14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage

17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives

18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

12 ECONOMIC PERFORMANCE California has the highest supply of workers in the nation but lags in labor force participation State rank

Potential labor supply1 Actual labor participation2

2017 labor force, million 2017 labor force participation rate, percent Rank Rank

California 19.3 1 Illinois 64.5 18

Texas 13.5 2 Texas 63.7 24

Florida 10.1 3 Pennsylvania 62.6 31

New York 9.7 4 California 62.3 33

Illinois 6.5 5 New York 60.9 39

Pennsylvania 6.4 6 Florida 59.6 42

1 Labor force is the sum of employed and unemployed persons 2 Labor force participation rate is the labor force as a percent of civilian noninstitutional population aged 16 years and over SOURCE: US Bureau of Labor Statistics 13 ECONOMIC PERFORMANCE Compared to other states, California has high rates of underemployment and unemployment

Labor market dynamics State rank

Underemployment rate1 Unemployment rate Long-term unemployment rate2 %, 2017 Q4 - 2018 Q3 %, 2017 Q4 - 2018 Q3 %, 2017 Q4 - 2018 Q3

New York 2.8 27 4.3 33 1.8 42

Texas 2.8 27 3.9 24 1.3 24

Illinois 3.1 39 4.4 36 1.6 33

Pennsylvania 3.3 41 4.4 36 1.7 39

Florida 3.3 42 3.7 21 1.4 26

California 3.7 47 4.2 30 1.6 33

1 Involuntary part-time workers (BLS alternative measures of labor underutilization U6 minus U5 measures) 2 Persons unemployed 15 weeks or longer (U1 measure) SOURCE: US Bureau of Labor Statistics 14 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US

2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states

3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared

4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages

12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow

13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap

18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

15 COST OF LIVING California has the second highest cost of living after Hawaii, with especially high costs of housing and transportation

Cost of living index Ranking, 2017 California Florida Illinois New York Pennsylvania Texas

Cost of living 49 26 24 47 32 8

Grocery 46 32 19 43 33 3

Housing1 501 29 23 48 31 14

Utilities 42 33 18 37 39 28

Transportation 49 32 37 40 42 13

Health 41 17 23 28 6 12

1 The housing index score for California is 225 (US = 100), which is the highest score for any state in any of the categories SOURCE: Council for Community and Economic Research 16 COST OF LIVING When adjusted for cost of living, California has the highest share of workers in low wage occupations among peer states

State average hourly earnings

Employment by cost of living adjusted earnings categories1

%, 2016 High Middle Low

13 11 13 13 16 17 19

30 39 32 40 44 44 45

57 55 50 44 43 39 36

California United States Florida Illinois New York Pennsylvania Texas

$17.5 $19.6 $18.6 $20.7 $18.0 $19.5 $21.5

1 Number of people in occupations earning less than $15/hour (low), $15-30/hour (middle), and greater than $30/hour (high) SOURCE: Economic Modeling Specialists International 17 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

18 SUPPLY AND DEMAND Across California, the high wage occupations with the most growth are in business and healthcare Occupation average Size of bubble = 2016 employment Median hourly earnings $, 2016 46 44 Computer and Mathematical 42 Architecture and Engineering 40 Healthcare Practitioners Legal and Technical 38 36 Life, Physical, and Social Science 34 Business and Financial Operations 32 Management 30 28 Installation, Maintenance, and Repair 26 24 Community and Social Service Education, Training, and Library Office and Administrative Support 22 Construction and Extraction 20 Protective Service 18 Healthcare Support Arts, Design, Entertainment, 16 Building and Grounds Production Sports, and Media 14 Cleaning and Maintenance Sales and Related Transportation 12 Personal Care and Service Food Preparation 10 Farming, Fishing, and Forestry and Serving Related 8 6 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 Employment change 000’s, 2011-2016 SOURCE: Economic Modeling Specialists International 19 SUPPLY AND DEMAND Analysis of 2017 top professions by job openings shows high demand for healthcare in California for post-secondary workers

2017 Demand (job 2017 Supply (degree 2017 Gap (demand - Top professions by openings openings),1 000’s - completions),2 000’s = supply), 000’s

Nursing Assistants 14 5 8 Medical Assistants 12 20 -9 Licensed Practical & Vocational Nurses 6 9 -2 Associate Automotive Service Techs 6 5 2 degree or Dental Assistants 6 7 -1 post- Preschool Teachers (exc. Special ed) 5 14 -8 secondary Paralegals and Legal Assistants 4 2 2 non- Hairdressers & Cosmetologists 4 8 -4 degree Heating & Air Cond. Mechanics 3 2 1 Manicurists and Pedicurists 3 9 -6 Firefighters 2 0 2 Electrical Eng. Techs 2 0 2

Registered Nurses 17 22 -5 Accountants & Auditors 15 4 11 Software Developers, Applications 13 15 -2 Market Res. & Marketing Specialists 11 1 10 Elem. School Teachers (exc. Special ed) 11 10 1 At least Financial Managers 7 2 5 bachelor Software Developers, Systems Software 6 15 -9 degree Computer Systems Analysts 5 3 2 Buyers and Purchasing Agents 5 1 4 Securities & Financial Serv. Agents 5 0 5 Computer & Info Systems Managers 4 11 -6 Lawyers 4 6 -2 Positive gap reflects under-supply 1 Demand measured by number of job openings in 2017. Values for allied health professionals from CA Employment Development Department and BLS. 2 Supply measured by number of graduates with degree certifications which qualify for each occupation in 2017. Professions with nonspecific educational requirements by degree excluded due to inaccurate estimate of supply SOURCE: EMSI, CA Employment Development Department, BLS 20 SUPPLY AND DEMAND Projections to 2027 show similarly high demand for healthcare but suggest over-supply in IT

2027 Demand (job 2027 Supply (degree 2027 Gap (demand - Top professions by openings openings),1,2 000’s - completions),3 000’s = supply), 000’s

Nursing Assistants 15 8 7 Medical Assistants 14 9 4 Licensed Practical & Vocational Nurses 6 8 -1 Associate Automotive Service Techs 7 3 4 degree or Dental Assistants 7 6 2 post- Preschool Teachers (exc. Special ed) 6 17 -11 secondary Paralegals and Legal Assistants 4 1 3 non- Hairdressers & Cosmetologists 5 3 2 degree Heating & Air Cond. Mechanics 3 1 3 Manicurists and Pedicurists 3 4 0 Firefighters 3 0 2 Electrical Eng. Techs 2 0 2

Registered Nurses 20 29 -9 Accountants & Auditors 15 4 11 Software Developers, Applications 15 64 -49 Market Res. & Marketing Specialists 12 3 9 Elem. School Teachers (exc. Special ed) 13 11 2 At least Financial Managers 7 2 5 bachelor Software Developers, Systems Software 6 60 -54 degree Computer Systems Analysts 6 3 3 Buyers and Purchasing Agents 5 1 4 Securities & Financial Serv. Agents 5 0 5 Computer & Info Systems Managers 5 45 -40 Lawyers 4 6 -1 Positive gap reflects under-supply 1 Demand measured by number of job openings projected to 2027. 2 EMSI and BLS projections do not necessarily account for potential future impact of automation. 3 Supply measured by number of graduates with degree certifications which qualify for each occupation in 2017 with CAGR from 2012-2017 applied to 2027. Professions with nonspecific educational requirements by degree excluded due to inaccurate estimate of supply SOURCE: EMSI 21 SUPPLY AND DEMAND Top professions which require an Associate degree or postsecondary non-degree are an opportunity for women & minorities

Top professions by openings1 Gender (%)2 Race and ethnicity (%)2,3,4,5 83 33 Key takeaway Nursing Assistants 17 22 18 23 4 • Females are 89 52 more heavily 27 12 Medical Assistants 11 6 3 represented in 88 these Licensed Practical and Licensed 35 12 27 15 20 3 professions, Vocational Nurses which require 98 Automotive Service Technicians and 44 Associate 39 11 Mechanics 2 3 2 degree or 92 post- 45 33 Dental Assistants 8 3 16 3 secondary non-degree 96 • These Associate Preschool Teachers, Except Special 34 42 4 8 13 3 professions degree or Education tend to have post- 84 50 higher share of secondary Paralegals and Legal Assistants 16 31 5 11 3 people of non-degree Hairdressers, Hairstylists, and 90 color 10 27 41 24 Cosmetologists 5 3 compared to the CA 99 Heating, Air Conditioning, and 37 52 population – 5 Refrigeration Mechanics and Installers 1 4 2 especially for 85 76 Allied Health Manicurists and Pedicurists 15 11 11 1 2 roles (e.g., nursing 94 56 assistants, Firefighters 27 6 7 5 5 medical assistants, Electrical and Electronics Engineering 82 18 21 44 28 LVNs) Technicians 4 3 Male Female Hispanic White Black Asian Other 1 Professions listed by openings with nonspecific educational requirements by degree excluded due to inaccurate estimate of supply; 2 Gender and race and ethnicity breakdown based on 2016 employment; 3 All race categories include Hispanic and non-Hispanic individuals; 4 “Other” includes American Indians, Pacific Islander, and those with 2+ races; 5 For comparison, CA is ~39% Hispanic (any race), ~7% Black, and ~15% Asian SOURCE: EMSI, U.S. Census Bureau 22 SUPPLY AND DEMAND Top professions requiring at least a bachelor degree tend to skew towards males and certain demographics

Top professions by openings1 Gender (%)2 Race and ethnicity (%)2,3,4,5 88 42 34 Key takeaway Registered Nurses 12 15 6 2 • These 60 professions, 40 16 46 32 Accountants and Auditors 4 2 which require at least a 80 64 Software Developers, Applications 20 5 28 1 2 bachelor degree, tend 57 50 to skew more Market Research Analysts and 43 16 27 Marketing Specialists 3 3 male • Blacks and Elementary School Teachers, Except 77 61 23 24 5 8 2 Hispanics are Special Education generally 47 53 52 under- Financial Managers 21 4 21 2 represented At least There are bachelor 80 • Software Developers, Systems 61 generally degree 20 6 29 1 2 Software higher shares of Asians in 66 34 39 43 Computer Systems Analysts 12 4 3 these professions 46 54 51 compared to Buyers and Purchasing Agents 25 4 17 3 the CA population Securities, Commodities, and Financial 69 55 31 21 18 Services Sales Agents 3 3 72 Computer and Information Systems 28 48 35 Managers 11 3 2

62 38 62 Lawyers 15 4 16 3 Male Female Hispanic White Black Asian Other 1 Professions listed by openings with nonspecific educational requirements by degree excluded due to inaccurate estimate of supply; 2 Gender and race and ethnicity breakdown based on 2016 employment; 3 Hispanic ethnicity is listed separately here, but all race categories include Hispanic and non-Hispanic individuals; 4 “Other” includes American Indians, Pacific Islander, and those with 2+ races; 5 For comparison, CA is ~39% Hispanic (any race), ~7% Black, and ~15% Asian SOURCE: EMSI, U.S. Census Bureau 23 SUPPLY AND DEMAND Analysis of top professions that require no degree shows personal care aides, combined food prep, and cashiers have current and future highest demand

2017 Demand (job 2027 Demand (job Top professions by openings openings),1,2,3 000’s openings),1,2 000’s

Personal Care Aides 86 121

Combined Food Prep & Serving 78 95

Cashiers 76 76

Retail Salespersons 65 67

Waiters and Waitresses 55 62

Less than Laborers & Material Movers 51 54 associate degree Farmworkers, Crop, Nursery 44 45

Office Clerks, General 38 39

Stock Clerks & Order Fillers 31 32

Janitors & Cleaners (exc. Housekeepers) 31 35

Customer Service Reps 28 30

Secretaries & Admins (exc. Legal, Medical, Exec) 26 25

1 Demand measured by number of job openings in 2017. EMSI forecasts based on historical openings to 2027; 2 Supply not shown because no degree or certificate is directly applicable to these professions; supply analysis will instead be conducted based on high school graduates for select MSAs; details to follow. 3 EMSI and BLS projections do not necessarily account for the potential impact of automation. SOURCE: EMSI 24 SUPPLY AND DEMAND On top of the mismatch in supply and demand, the majority of employers and students do not think graduates are prepared for the job market, which is out of sync with universities’ view

Agreement that graduates/new hires are adequately prepared % of respondents

Employers 42

Students 45

Universities, 72 Other schools

SOURCE: US Council of Economic Advisors Report on Higher Education, Lumina Foundation, Survey of 8,000 employers, young people, and education providers 25 LOS ANGELES In Los Angeles, top professions by openings are in healthcare with additional demand for producers and coaches

2017 Demand (job 2017 Supply (degree 2017 Gap (demand Top professions by openings openings),1 000’s - completions),2 000’s = - supply), 000’s Nursing Assistants 5 2 3 Medical Assistants 4 7 -3 Licensed Practical & Vocational Nurses 2 4 -2 2 Associate Automotive Service Techs 2 0 degree or Dental Assistants 2 3 -1 post- Preschool Teachers (exc. Special ed) 2 4 -2 secondary Paralegals and Legal Assistants 2 1 1 non- Hairdressers & Cosmetologists 1 3 -2 degree Audio & Video Techs 1 1 0 Massage Therapists 1 2 -1 Manicurists & Pedicurists 1 4 -3 Heating, Air Cond. Mechanics 1 1 0

Registered Nurses 6 9 -3 Accountants & Auditors 6 2 4 Market Res. & Marketing Specialists 4 1 3 Elem. School Teachers (exc. Special ed) 3 3 0 Financial Managers 3 1 2 At least Software Developers, Applications 2 5 -3 bachelor Producers & Directors 2 5 -3 degree Buyers and Purchasing Agents 2 1 1 Lawyers 2 3 -1 Child, Family, School Soc. Workers 2 4 -2 Software Developers, Systems Software 1 5 -4 Coaches & Scouts 1 3 -2 Positive gap reflects under-supply

1 Demand measured by number of job openings in 2017. 2 Supply measured by number of graduates with degree certifications which qualify for each occupation in 2017. Professions with nonspecific educational requirements by degree excluded due to inaccurate estimate of supply SOURCE: EMSI 26 LOS ANGELES 2027 projections suggest Los Angeles will have over-supply in software developers, social workers, and coaches

2027 Demand (job 2027 Supply (degree 2027 Gap (demand Top professions by openings openings),1,2 000’s - completions),3 000’s = - supply), 000’s Nursing Assistants 6 2 4 Medical Assistants 5 2 2 Dental Assistants 2 1 1 Associate Licensed Practical & Vocational Nurses 2 3 -1 degree or Automotive Service Techs 2 2 0 post- Preschool Teachers (exc. Special ed) 2 5 -3 secondary Paralegals and Legal Assistants 2 0 2 non- Hairdressers & Cosmetologists 2 1 0 degree Massage Therapists 1 2 -1 Manicurists and Pedicurists 1 2 -1 Heating & Air Cond. Mechanics 1 0 1 Clinical Lab Techs 1 3 -2

Registered Nurses 7 12 -5 Accountants & Auditors 6 4 1 Market Res. & Marketing Specialists 4 4 0 Elem. School Teachers (exc. Special ed) 3 3 1 Software Developers, Applications 2 24 -21 At least Financial Managers 2 2 1 bachelor Lawyers 2 4 -2 degree Producers & Directors 2 5 -3 Child, Family, School Soc. Workers 2 12 -10 Buyers and Purchasing Agents 2 1 1 Coaches & Scouts 2 12 -10 Subs. Abuse, Mental Health Couns. 1 1 1 Positive gap reflects under-supply

Top professions by openings 2017 Demand (job openings),1,2 000’s Personal Care Aides 36 Comb. Food Prep & Serving 27 Retail Salespersons 23 Laborers & Material Movers 18 Office Clerks, General 13 Janitors & Cleaners (Exc. Housekeepers) 11 Customer Service Reps 10 Secretaries & Admins (exc. Legal, Medical, & Exec) 9 Security Guards 9 Bookkeeping & Auditing Clerks 8 Cooks, Restaurant 8 Packers and Packagers, Hand 7 Less than associate Top professions by openings 2027 Demand (job openings),1,2,3 000’s degree Personal Care Aides 51 Comb. Food Prep & Serving 33 Cashiers 26 Waiters and Waitresses 24 Retail Salespersons 23 Office Clerks, General 13 Stock Clerks and Order Fillers 11 Customer Service Representatives 10 Security Guards 9 Secretaries & Admins (exc. Legal, Medical, & Exec) 9 Cooks, Restaurant 9 Bookkeeping & Accounting Clerks 8 1 Demand measured by number of job openings in 2017. EMSI forecasts based on historical openings to 2027; 2 Supply not shown because no degree or certificate is directly applicable to these professions; supply analysis will instead be conducted based on high school graduates for select MSAs; details to follow. 3 EMSI and BLS projections do not necessarily account for the potential impact of automation. SOURCE: EMSI 28 LOS ANGELES In Los Angeles, ~1.4M high school graduates could potentially enter these jobs that do not require a degree

College-going and labor market participation rates of Los Angeles high schools, 2017 # graduates, thousands

1,442 6,152

8,292 2,140

698 2,140

High school Enrolled in Did not attend Did not Entered Did not enter grads (2017) 2- or 4-year college attend labor force1 labor force institution college

2017 Demand (job 2017 Supply (degree 2017 Gap (demand Top professions by openings openings)1 - completions)2 = - supply)

Medical Assistants 311 1,098 -787 Nursing Assistants 309 448 -139 Automotive Techs 159 54 105 Associate Dental Assistants 152 510 -358 degree or Preschool Teachers (exc. Special ed) 134 330 -196 post- Licensed Practical & Vocational Nurses 105 419 -314 secondary Heating, Air. Cond. Mechanics 76 28 48 non- Paralegals and Legal Assistants 71 124 -53 degree Psychiatric Technicians 64 448 -384 Hairdressers & Cosmetologists 57 9 48 Library Technicians 55 252 -197 Emergency Medical Techs 44 376 -332

Registered Nurses 453 1,000 -547 Elem. School Teachers 346 276 70 Middle School Teachers 194 138 56 Accountants and Auditors 189 1 188 Buyers and Purchasing Agents 142 9 133 At least Child, Family, and School Social Workers 110 329 bachelor -219 degree Market Research & Marketing Specialists 102 5 97 Medical and Health Services Managers 81 107 -26 Substance Abuse & Mental Health Couns. 79 155 -76 Marriage and Family Therapists 69 339 -270 Lawyers 67 37 30 Civil Engineers 66 75 -9

1 Demand measured by number of job openings in 2017. 2 Supply measured by number of graduates with degree certifications which qualify for each occupation in 2017. Professions with nonspecific educational requirements by degree excluded due to inaccurate estimate of supply. SOURCE: EMSI 30 FRESNO 2027 projections suggest there will be an over-supply in several middle- skill healthcare support professions

2027 Demand (job 2027 Supply (degree 2027 Gap (demand Top professions by openings openings)1,2 - completions)3 = - supply) Medical Assistants 405 316 89 Nursing Assistants 369 1,892 -1,523 Automotive Techs 193 136 57 Associate Dental Assistants 175 679 -504 degree or Preschool Teachers (exc. Special ed) 148 340 -193 post- Licensed Practical & Vocational Nurses 133 564 -431 secondary Heating, Air. Cond. Mechanics 99 10 89 non- Paralegals and Legal Assistants 85 4 82 degree Psychiatric Technicians 77 841 -764 Hairdressers & Cosmetologists 75 147 -72 Library Technicians 62 5 57 Emergency Medical Techs 56 1,108 -1,052

Registered Nurses 570 2,070 -1,500 Elem. School Teachers 400 286 114 Middle School Teachers 221 166 55 Accountants and Auditors 191 0 191 Buyers and Purchasing Agents 135 46 90 At least Child, Family, and School Social Workers 135 371 bachelor -236 degree Market Research & Marketing Specialists 122 193 -70 Medical and Health Services Managers 107 2 106 Substance Abuse & Mental Health Couns. 107 1,941 -1,834 Marriage and Family Therapists 91 289 -199 Lawyers 80 66 14 Civil Engineers 72 27 45

1 Demand measured by number of job openings projected to 2027. 2 EMSI and BLS projections do not necessarily account for the potential impact of automation. 3 Supply measured by number of graduates with degree certifications which qualify for each occupation in 2017 with CAGR from 2012-2017 applied to 2027. Professions with nonspecific educational requirements by degree excluded due to inaccurate estimate of supply SOURCE: EMSI 31 FRESNO 2027 projections show that Fresno will no longer have as many openings for farmworkers but will still have demand for personal care and food prep Top professions by openings 2017 Demand (job openings)1,2 Farmworkers, Crop, Nursery 4,984 Personal Care Aides 2,618 Comb. Food Prep & Serving 1,890 Cashiers 1,631 Retail Salespersons 1,403 Laborers & Material Movers 903 Waiters and Waitresses 855 Office Clerks, General 843 Teacher Assistants 689 Stock Clerks and Order Fillers 641 Janitors & Cleaners (exc. Housekeepers) 614 612 Less than Customer Service Reps associate 1,2,3 degree Top professions by openings 2027 Demand (job openings) Personal Care Aides 3,854 Comb. Food Prep & Serving 2,308 Cashiers 1,639 Retail Salespersons 1,536 Waiters and Waitresses 906 Office Clerks, General 885 Teacher Assistants 775 Customer Service Representatives 716 Stock Clerks and Order Fillers 683 Secretaries & Admins (exc. Legal, Medical, & Exec) 527 Bookkeeping, Accounting, and Auditing Clerks 464 Cooks, Fast Food 384

1 Demand measured by number of job openings in 2017. EMSI forecasts based on historical openings to 2027; 2 Supply not shown because no degree or certificate is directly applicable to these professions; supply analysis will instead be conducted based on high school graduates for select MSAs; details to follow. 3 EMSI and BLS projections do not necessarily account for the potential impact of automation. SOURCE: EMSI 32 FRESNO In Fresno, ~111K high school graduates could potentially fill these openings that do not require post-secondary education

College-going and labor market participation rates of Fresno high schools, 2017 # graduates, thousands

362 111

527 165

165 54

High school Enrolled in Did not attend Did not Entered Did not enter grads (2017) 2- or 4-year college attend labor force1 labor force institution college

1 Uses national labor force participation rate for high school graduates who did not attend higher education (67.4%) in 2017 SOURCE: U.S. Census Bureau American Community Survey 2017, BLS 33 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

34 REGIONS Regions have large differences in income and unemployment

MSA % population HH Income Unemployment Job growth

San Jose-Sunnyvale-Santa Clara 5% $119,035 2.50% 11.47% San Francisco-Oakland-Hayward 12% $103,074 2.65% 11.66% San Diego-Carlsbad 8% $76,207 3.30% 8.74% Los Angeles-Long Beach-Anaheim 34% $70,074 4.27% 6.32% Riverside-San Bernardino-Ontario 12% $62,284 4.16% 13.05% Napa 0% $86,562 2.60% 6.36% Oxnard-Thousand Oaks-Ventura 2% $82,857 3.70% 3.28% Santa Rosa 1% $80,409 2.50% 6.84% Santa Cruz-Watsonville 1% $79,705 3.60% 6.13% Vallejo-Fairfield 1% $77,133 3.60% 8.80% Salinas 1% $71,274 4.20% 6.43% Sacramento--Roseville--Arden-Arcade 6% $67,566 3.57% 9.26% Stockton-Lodi 2% $61,164 5.20% 12.93% Truckee-Grass Valley 0% $65,385 3.30% 9.77% Yuba City 0% $58,636 5.71% 9.57% Ukiah 0% $53,024 3.50% 4.93% Redding 0% $52,439 4.30% 6.59% Clearlake 0% $48,930 4.70% 15.66% Eureka-Arcata-Fortuna 0% $46,494 3.20% 6.46% San Luis Obispo-Paso Robles-Arroyo Grande 1% $71,880 2.80% 10.82% Santa Maria-Santa Barbara 1% $71,106 3.40% 5.55% Modesto 1% $59,514 5.50% 8.09% $57,555 6.40% Hanford-Corcoran 0% 10.45% $51,800 6.30% Fresno 3% 8.93% $51,283 5.90% Madera 0% 6.63% $49,854 6.60% Bakersfield 2% 7.56% $49,061 4.20% Chico 1% $47,735 6.10% 13.00% Merced 1% $47,211 19.20% 11.00% El Centro 0% $46,266 8.30% 10.17% Visalia-Porterville 1% $46,266 8.30% 7.31%

SOURCE: BLS 35 REGIONS Top current employers in selected regions vary widely, though public sector and healthcare are prevalent

Select MSAs Segment Top employers (in order)1 Public sector Healthcare sector Small • California State University, Chico • Oroville Hospital independent • Butte County • Butte County Office-Education Chico economies • Enloe Medical Center • Sierra Nevada Brewing Co. • Chico Unified School District • Tri Counties Bank • Build.com, Inc. • Feather River Hospital Small • Fresno Unified School District • Community Medical Centers independent • Clovis Unified School District • Kaiser Permanente Fresno economies • California State University, Fresno • Saint Agnes Medical Center • City of Fresno • County of Fresno • Internal Revenue Service • Pacific Gas and Electric Company Urban and • Kaiser Permanente • Bank of America Corporation Los Angeles- suburban • University of California • Northrop Grumman Corporation Long Beach- • Los Angeles Unified School District • Wells Fargo & Company Anaheim • The Walt Disney Company • City of Los Angeles • University of Southern California • AT&T Inc. Urban periphery • Amgen, Inc. • California Lutheran University Oxnard- • County of Ventura • Pennymac Financial Services, Inc. Thousand • Bank of America Corporation • Kaiser Permanente Oaks-Ventura • U.S. Department of the Navy • Ventura Unified School District • Anthem, Inc. • Oxnard School District Urban and • Kaiser Permanente • Wells Fargo & Company San Francisco- suburban • Google, Inc. • Genentech, Inc. Oakland- • Apple, Inc. • UCSF Hayward • University of California • Oracle Corporation • Cisco Systems, Inc. • Stanford University

1 Based on LinkedIn profiles SOURCE: EMSI 36 REGIONS A regional comparison shows stark differences within California unemployment by MSA

Unemployment rate by MSA, 20171

Unemployment rate Crescent City North Low High

Eureka-Arcata- Fortuna Redding, CA, 4.3% Ukiah, Red Bluff CA Chico, 4.2% Clearlake Yuba City-Marysville, 5.7% Santa Rosa-Petaluma, 2.5% Truckee-Grass Valley Napa, 2.6% Sacramento--Arden-Arcade--Roseville, 3.5% Vallejo-Fairfield, 3.6% Stockton, 5.2% San Francisco-Oakland Phoenix Lake-Cedar Ridge -Fremont, 2.6% Modesto, 5.5% Santa Cruz-Watsonville, 3.6% Merced, 6.1% Madera, 5.9% San Jose-Sunnyvale-Santa Clara, 2.5% Fresno, 6.3% Salinas, 4.2% Visalia- Hanford-Corcoran, 6.4% Porterville, CA, 8.3% Bishop San Luis Obispo-Paso Robles, 2.8% Bakersfield, CA, 6.6% Santa Barbara-Santa Maria-Goleta, 3.4% Oxnard-Thousand Riverside-San Oaks-Ventura, 3.7% Bernardino-Ontario, CA, 4.1% Los Angeles-Long Beach- Santa Ana, 4.2% El Centro, CA, 19.2% San Diego-Carlsbad- San Marcos, 3.3%

SOURCE: https://www.bls.gov/web/metro/laummtrk.htm 37 REGIONS Wages vary greatly across regions; the San Jose region averages $77K+ average annual wages compared Fresno at $45K

Average annual wage by MSA, 20171

Crescent City North Annual wages High Low

Eureka-Arcata- Fortuna Redding, $47,340 Ukiah, Red Bluff CA Chico, $44,970 Clearlake Yuba City-Marysville, $ 49,320 Santa Rosa-Petaluma, $53,890 Truckee-Grass Valley Napa, 54,030 Sacramento--Arden-Arcade--Roseville, $55,010 Vallejo-Fairfield, $53,520 Stockton, $46,770 San Francisco-Oakland-Fremont, $80,100 Phoenix Lake-Cedar Ridge Modesto, $45,970 Santa Cruz-Watsonville, $52,500 Merced, 46,590 Madera, $45,400 San Jose-Sunnyvale-Santa Clara, $77,180 Fresno, $45,510 Salinas, $48,290 Visalia-Porterville, CA, $41,570 Hanford-Corcoran, $46,510 Bishop San Luis Obispo-Paso Robles, $48,660 Bakersfield, CA, $47,680 Santa Barbara-Santa Maria-Goleta, $54,320 Oxnard-Thousand Riverside-San Oaks-Ventura, $53,030 Bernardino-Ontario, CA, $47,350 Los Angeles-Long Beach- Santa Ana, $55,820 El Centro, CA, 43,950 San Diego-Carlsbad- San Marcos, $56,410 1 Annual wages are from May 2017 SOURCE: https://www.bls.gov/web/metro/laummtrk.htm, https://www.bls.gov/oes/current/oes_nat.htm#00-0000 38 REGIONS Most of the MSAs with highest growth in job openings are already those with low to moderate unemployment or moderate to high wages Job growth Change in job openings from 2017 to 2027, % Occupations in highest under-supply in 20171 High Low

Crescent City North, CA Sacramento-Arden-Roseville • Heavy and tractor-trailer truck drivers San Francisco-Oakland-Fremont Eureka-Arcata- Redding, • Registered nurses • Software developers Fortuna, CA • Marketing managers CA • First-line supervisors of • Heavy and tractor-trailer Red Bluff, retail sales workers Ukiah, CA truck drivers CA • Computer occupations, Chico,CA all other • Registered nurses Yuba City-Marysville, CA • Computer occupations, all Clearlake, CA • Software developers Truckee-Grass Valley, CA other Santa Rosa-Petaluma, CA Napa, CA Sacramento--Arden-Arcade--Roseville, CA Vallejo-Fairfield, CA Riverside-San Bernadino- Stockton, CA San Francisco-Oakland-Fremont, CA Ontario Phoenix Lake-Cedar Ridge, CA Modesto, • Heavy and tractor-trailer truck drivers San Jose-Sunnyvale-Santa CA Madera,CA Santa Cruz-Watsonville, CA Merced, • Registered nurses Clara CA San Jose-Sunnyvale-Santa Clara, CA • First-line supervisors of • Software developers Fresno, CA retail sales workers • Computer occupations, Salinas, • Speech language all other CA Visalia- Porterville, pathologists • Marketing managers Hanford-Corcoran, CA CA Bishop, CA • Customer service reps • Industrial engineers San Luis Obispo-Paso Robles, CA • Registered nurses Bakersfield, CA Santa Barbara-Santa Maria-Goleta, CA San Diego-Carlsbad-San Riverside-San Marcos Los Angeles-Long Beach- Oxnard-Thousand Bernardino- Registered nurses Santa Ana • Oaks-Ventura, CA Ontario, CA Software developers • Heavy and tractor-trailer • Los Angeles-Long Beach- Heavy and tractor-trailer truck drivers • Santa Ana, CA truck drivers • Registered nurses • Computer occupations, • Software developers El Centro, CA all other • Marketing managers San Diego-Carlsbad- First-line supervisors of • First-line supervisors of • San Marcos, CA retail sales workers retail sales workers

1 Gap measured by average active job postings minus average monthly hires from January 2017 through December 2017. Among the top jobs in need were “unclassified occupations” which were not included here for illustrative purposes SOURCE: BLS, EMSI, CA Employment Development Department 39 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

40 PEOPLE Though employers claim a lack of applicants, California has ~2 unemployed individuals for every job opening, indicating a matching challenge in the labor market

California has one of the highest ratios of unemployed compared to total jobs

# of unemployed individuals divided by total job ads, August 2017 Employer survey, 2016

California 1.88

Illinois 1.87 Lack of available 23% applicants/ no applicants

Texas 1.86

Florida 1.76 Lack of hard skills 16% (technical competencies) New York 1.72

Pennsylvania 1.66 Lack of soft skills 12% (workplace National average: 1.57 competencies)

SOURCE: The Conference Board, Manpower Group Talent Shortage Survey 2016-17, Moody’s Analytics 41 PEOPLE California’s unemployment has consistently been higher than the rest of the country

Unemployment rate trend, Avg. Annual % CA US 13 12.2% 12

10 9.6%

6 5.4% 5 4.7% 4.8%

4.4% 0 2000 02 04 06 08 10 12 14 16 2018

SOURCE: Federal Bank of St. Louis, 2000-2018 (annual frequency) 42 PEOPLE Unemployment is higher in California than the US average for both males and females

Unemployment by gender US CA

8.0% 7.3% 7.1% 7.0% 6.2% 6.0% 6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0% Female Male

SOURCE: Census Bureau; Dataset: ACS PUMS 5-year Estimate 2017 43 PEOPLE Unemployment is higher in California across all age groups, especially among 16 to 19 year-olds

Unemployment by age US CA 32.0% 30.0% 28.0% 26.5% 26.0% 24.0%

22.0% 20.7% 20.0% 18.0% 16.0%

14.0% 13.1% 12.0% 11.6% 10.0% 8.4% 7.5% 8.0% 6.9% 6.2% 6.0% 6.0% 5.8% 5.9% 5.7% 5.2% 4.8% 5.0% 5.1% 4.6% 4.2% 4.0% 3.9% 3.8% 2.0% 0% 16-19 20-24 25-29 30-34 35-44 45-54 55-59 60-64 65-74 75-75

SOURCE: Census Bureau; Dataset: ACS PUMS 5-year Estimate 2017 44 PEOPLE Nearly all races have higher unemployment in California; African Americans have the highest unemployment rate at 13.4%

Unemployment by race or ethnicity US CA 16.0%

14.0% 13.4% 12.3% 12.2% 12.0% 11.9% 10.1% 10.0% 9.6% 9.8% 8.7% 9.0% 8.7% 8.1% 8.0% 7.6% 7.1%

6.0% 5.5% 5.7% 5.1% 4.0%

2.0%

0% White Hispanic1 African Asian American Native 2 or more Other American Indian / Hawaian races Alaska / Pacific Native Islander 1 Persons whose ethnicity is identified as Hispanic or Latino may be of any race SOURCE: Census Bureau; Dataset: ACS PUMS 5-year Estimate 2017 45 PEOPLE California also has higher unemployment by educational attainment among those with at least high school degrees

Unemployment by educational attainment US CA 12.0% 11.0% 10.0% 10.0% 9.2% 9.0% 8.3% 8.0% 7.1% 7.0% 6.7% 6.0% 5.5% 5.0% 4.1% 4.0% 3.1% 3.0% 2.0% 1.0% 0% Bachelors or Some college High school Less than higher or associates graduate High school

SOURCE: Census Bureau; Dataset: ACS PUMS 5-year Estimate 2017 46 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

47 INEQUALITY 5.3M Californians (~13%) find themselves below the poverty line

Poverty rate (3-year average 2015-17)

13.4% 12.9% 14.3% 13.2% 14.0% 11.3% 11.6%

California United States Florida Illinois New York Pennsylvania Texas

# of People (M) 5.3 41.2 2.9 1.4 2.6 1.5 3.9

Supplementary Poverty Measure (3 year average 2015-17)

19.0% 18.1% 15.5% 14.1% 14.7% 12.5% 11.8%

California United States Florida Illinois New York Pennsylvania Texas

# of People (M) 7.5 45.3 3.7 1.6 3.0 1.5 4.1

SOURCE: U.S. Census 48 INEQUALITY Over the last 10 years, income inequality has continued to grow across the US and in California

State rank (from least to most income inequality)

Income equality 2007 vs. 2017, Gini coefficient

2007 2017 0.516

0.500

0.487 0.486 0.482 0.482 0.478 0.478 0.473 0.469 0.469 0.469 0.466 0.460

California USA Florida Illinois New York Pennsylvania Texas

#47 N/A #46 #41 #50 #30 #43

SOURCE: U.S. Census 49 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

50 JOB GROWTH AND MIGRATION Job growth in California will continue, with healthcare projected to lead all industries at ~4% growth

X% CAGR 2012-2027

Employment share by sector Total jobs in Millions, Sector breakdown in % of total jobs

Healthcare Government Accommodation & food Retail Trade Professional services Manufacturing Other1

18.8 18.1 17.0 15.0 38% 1.2% 38% 38% 39% -0.1% 7% 7% 8% 7% 7% 1.5% 8% 7% 9% 9% 0.7% 7% 10% 10% 2.2% 10% 10% 10% 9% 14% 0.9% 14% 14% 15% 15% 4.2% 10% 13% 14% 2012 2017 2022 2027

• Healthcare is expected to grow ~4% from 2012 to 2027 • Manufacturing is projected to have the least growth at -0.1%

1 Other categories (in order): Administrative and Support and Waste Management, Construction, Wholesale Trade, Transportation, Finance, Information, Agriculture, etc. SOURCE: US Bureau of Labor Statistics 51 JOB GROWTH AND MIGRATION However, California is seeing an increased number International migration of people leaving the state, predominantly for other states Births - deaths Domestic migration

California population change, 2012-2018 Thousands CAGR, % 331 2012-2018 347 257 322 322 191 -11.2% 138 164 158 105 123 149 120 118 1.9%

258 255 252 247 230 -4.4% 209 196

-41 -53 -46 -80 -123 -138 -156 25.1%

2012 2013 2014 2015 2016 2017 2018

SOURCE: U.S. Census Bureau 52 JOB GROWTH AND MIGRATION A small but rapidly growing segment of CA undergraduates is taking advantage of special tuition discounts at out-of-state institutions

California undergraduates who received tuition discounts through the Western Undergraduate Exchange Number of students • The Western Undergraduate 17,584 Exchange is a group of 160+ 2- and 4-year institutions in 16 Western states/territories that commit to providing nonresident tuition discounts across state lines +246% (students pay no more than 150% of in-state tuition) • California undergraduates are taking advantage of these discounts as UC/CSU 5,082 turn away more students each year due to growing eligibility and capacity constraints

2008-09 2017-18

SOURCE: Press search 53 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

54 STUDENTS California’s high school graduates are increasingly diverse, driven primarily by growth in Hispanic graduates

White Hispanic Black Other Asian/Pacific Islander American Indian/Alaska Native

Share of U.S. high school graduates by race Share of California high school graduates by race % of total graduates, 2011 and 2027 projection % of total graduates, 2011 and 2027 projection

24 31 48 54

41 50

17 25

6 14 5 13 8 7 1 0 9 6 13 13 5 6 1 1 2011 2027 2011 2027

The share of Hispanic high school graduates in the US … and reach 50% in California by 2027 will increase to 25% …

SOURCE: Knocking at the College Door 55 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

56 AUTOMATION Most sectors have activities which could be impacted by automation in 2030 Size of bubble indicates % of time Ability to automate (%) spent in US occupations 0 50 100 Sectors by activity type Unpredictable Collect Process Predictable Automation Manage Expertise Interface physical data data physical potential1 (%) Accommodation and food 73 services Manufacturing 60 Transportation and warehousing 60 Agriculture 57 Retail trade 53 Mining 51 Other services 49 Construction 47 Utilities 44 Wholesale trade 44 Finance and insurance 43 Arts, entertainment, and 41 recreation Real estate 40 Administrative 39 Health care and social 36 assistances Information 36 Professionals 35 Management 35 Educational services 27

SOURCE: US Bureau of Labor Statistics; McKinsey Global Institute: “A future that works: Automation, employment, and productivity” 1 Automation potential in an aggressive automation adoption scenario 57 AUTOMATION Low- and middle-income earners are currently in occupations that are at the highest risk of automation

Automation potential % of time activities that could be automated using existing technologies 100 File clerks 80 Landscaping and grounds-keeping workers 60 Chief executives 40

0 0 20 40 60 80 100 120 Hourly wage $ per hour

SOURCE: McKinsey Global Institute: “A future that works: Automation, employment, and productivity” 58 AUTOMATION Automation will likely accelerate the need to prepare students with the social and cognitive abilities necessary for success

Based on McKinsey Global Institute workforce skills model United States, all sectors

Category Skill Change in hours worked by 20301, %

Physical General equipment operation and navigation -24 and manual General equipment repair and mechanical skills -9 skills Craft and technician skills -2 Fine motor skills -8 Gross motor skills and strength -9 Inspecting and monitoring skills -20 Literacy & Basic literacy, numeracy, and communication -6 numeracy Basic data input and processing -19 Other Advanced literacy and writing -10 cognitive skills Quantitative and statistical skills -2 Critical thinking and decision making 17 Project management 2 Complex information processing and interpretation 18 Creativity 40 Social and Advanced communication and negotiation skills 27 emotional Interpersonal skills and empathy 30 skills Leadership and managing others 33 Entrepreneurship and initiative-taking 33 Adaptability and continuous learning 24 Teaching and training others 14 Techno-logical Basic digital skills 69 skills Advanced IT skills and programming 91 Advanced data analysis and mathematical skills 25 Technology design, engineering, and maintenance 31 Scientific research and development 28

SOURCE: US Bureau of Labor Statistics, McKinsey Global Institute: Jobs Lost, Jobs Gained: Workforce Transitions in a time of Automation 1 US Automation potential in step-up automation scenario 59 AUTOMATION Workers could need meta-skills to adapt to evolving soft and hard skills demanded by the labor market

Frequency of market Examples changes in demand • Lifelong learning aspiration/ • Always critical growth mindset • Self-direction Meta • Comfort with change, skills uncertainty

• Creativity • Always critical, • Critical thinking and depth and Human/ “Soft” problem solving complexity of skills skills • Social intelligence demanded will increase • Communication and influence

• Software development • Specific skills • Design demanded will Technical / • Product management change several “Hard” skills times within a and knowledge • Big data analytics career • Agile methodologies • Lean management practices

60 AUTOMATION Enrollment for learners (ages 25+) is expected to grow significantly

Projected enrollment in higher education for students (ages 25+)1

Share of population 25+, %, projected 6 5 5 +17%

2016 2020 2025

1 Projected total fall enrollment in degree-granting postsecondary institutions for students ages 25+ SOURCE: National Center for Education Statistics, UNC InfoCenter; US Census 61 AUTOMATION Additional information on the potential impact of automation can be found in the following reports

§ World Economic Forum: The Future of Jobs report 2018

§ OECD: The Risk of Automation for Jobs in OECD Countries

§ McKinsey Global Institute: Jobs lost, Jobs Gained: Workforce Transitions in a time of automation

§ McKinsey Global Institute: Skill Shift: Automation and the future of the workforce

§ Oxford: The Future of Employment: How susceptible are jobs to computerization

62 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

63 INDEPENDENT WORK Independent workers comprise ~30% of the working age population in California’s largest metros

Independent workforce by geography % of working age population Sample size

Bay Area 30 1159

Los Angeles 29 1008

US 27 1890

Atlanta 31 572

Chicago 30 1005

New York 30 1027

Houston 27 462

Detroit 25 479

1 San Francisco outside-in estimate is developed from the fraction of the working age population employed part-time, full-time, and self-employed, as presented by the SF Controller’s Office, and MGI estimates of the fraction of each employment category that participates in independent work. United States estimate is developed additionally using data from the Freelancer’s Union and Katz and Krueger as cited below. SOURCE: McKinsey Global Institute: Independent work: choice, necessity, and the gig economy; Freelancers Union; Katz and Krueger, “The rise and nature of alternative work arrangements in the US,” 2016, SF Controller’s Office, “The Gig Economy in San Francisco”, 2016 64 INDEPENDENT WORK 54% of independent workers in the Bay Area and Los Angeles use independent work as their primary source of income - compared to 46% across the US

% of independent workforce in each geographic region, based on MGI survey

BAY AREA AND LOS ANGELES UNITED STATES Primary Supplemental Primary Supplemental Income income Income income

“Casual “Casual “Free Agents” “Free Agents” earners” earners” By choice 39% 32% 73% 34% 40% 72% 1.6M 22M 1.4M 27M

“Financially “Financially “Reluctants” “Reluctants” Out of strapped” strapped” 15% 14% 27% necessity 12% 14% 28% 0.6M 10M 0.5M 9M

54% 46% 46% 54%

4.1 million independent workers 68 million independent workers

NOTE: Numbers may not sum due to rounding. SOURCE: McKinsey Global Institute survey; McKinsey Global Institute: Independent work: choice, necessity, and the gig economy; 65 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

66 AGING CA has a higher share of working age population compared to most states, but 20%+ of CA’s population will be above 65 by 2030 California Peer states Percent of population by age group, 2015

0-14 15-24 25-34 35-44 45-54 55-64 65+ 19.7% 18.8%

15.7% 14.8% 13.9% 14.5% 13.3% 13.2% 13.4% 12.9% 12.9% 13.2% 12.0% 11.8%

Percent of population 65 and older over time

21% 18% 16% 13% 11% 10%

2005 10 15 20 25 2030

SOURCE: U.S. Census 67 AGING California’s senior population is projected to nearly double by 2030

California senior population by age over time

SOURCE: PPIC, State of CA, Department of Finance, State and County Population Projections 68 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

69 EDUCATION Compared to other states, California has a high concentration of its population at both ends of the educational spectrum % Less than high school % High school graduate

% Some college or associate’s

% Bachelor’s

Educational attainment in population 25+, 2016 % Graduate % Associate and bachelors+ % of total (thousands)

12 11 10 12 17 13 16

26 21 29 26 35 27 • California is 25 ranked 1st in proportion of the state with less than a high 29 29 24 school degree 30 29 24 29 • California is ranked 15th in proportion of 20 graduates with 21 21 20 at least a 19 19 19 bachelor’s degree 16 13 11 13 13 10 12

California Florida Illinois New York Pennsylvania Texas United States

62.6 59.6 63.0 60.2 55.5 58.6 60.9

SOURCE: U.S. Census 70 EDUCATION Higher educational attainment is associated with better labor market outcomes Bachelor's or higher (% total) Some college or associate degree (% total)

High school graduate (% total)

No High school diploma (% total)

Educational attainment among 25+ Labor force participation rate by Unemployment rate by educational level years old, 2017 educational level Percent of labor force Percent of population Percent of population

16.0 75.0 33.7% 14.0

70.0 12.0

10.0 28.9% 65.0

8.0 60.0 20.8% 6.0

55.0 4.0

16.7% 2.0 2008 2010 2012 2014 2008 2010 2012 2014 California

SOURCE: Bureau of Labor Statistics; U.S. Census 71 EDUCATION Demand for occupations requiring a Bachelor’s degree or higher is projected to grow the fastest Associate degree or higher Secondary degree or lower

Projected net change in total employment by education required, 2016-30 (not to scale) Degree-level required for job openings Projected net change due to labor demand, Million, (%)

Advanced 0.8 to 1.0 (9 to 11%)

College 1.8 to 3.3 (6 to 12%)

Associate -1.7 to 0.9 (-5 to 2%)

Secondary -7.0 to -1.1 (-12 to 2%)

Less than secondary -2.8 to -2.3 (-14 to -12%)

NOTE: Some occupational data projected into 2016 baseline from latest available 2014 data SOURCE: NCES, ONET skill classification, US Bureau of Labor Statistics; McKinsey Global Institute: Jobs lost, jobs gained: workforce transitions in a time of automation 72 EDUCATION However in 2015, California had under-supply in workers with at least Associate’s and advanced degrees

Supply and demand of workers in CA by educational attainment Share of all workers in CA in 2015 Supply Demand

-14% 35

25 +15%

10 28% -13%

0 Less than high High school Some college Associate degree Bachelor’s school diploma graduate degree or more

SOURCE: Johnson, Cuellar Mejia, and Bohn, Will California run out of College Graduates? (PPIC 2015) 73 EDUCATION A potential reason is that completions for Bachelor degrees has plateaued compared to Associate degrees

Growth in Associate’s degrees Growth in Bachelor’s degrees Thousands of degrees awarded Thousands of degrees awarded

+2% p.a. +7% p.a. 152 +5% p.a. 212 143 198 200 204 188 +5% p.a. 132 178 123 171 113 162 106 97 100

2010 11 12 13 14 15 16 2017 2010 11 12 13 14 15 16 2017

SOURCE: IPEDS 74 EDUCATION More CA students are graduating high school “college ready”, though public universities cannot necessarily accommodate them

% of HS students meeting course # of students turned down % of CA Students graduating HS requirements for UCs/CSUs by CSUs

83% 45% 32,000 75% 35% 22,000

2010 2016 2006 2016 2012 2016 Over 80% of HS students in CA ~45%% of HS graduates meet Unfortunately a growing graduate the requirements for UCs & CSUs number of students are turned down by UCs & CSUs due to capacity constraints

SOURCE: California Budget & Policy Center, IPEDs 75 EDUCATION Most of the students at community colleges are Hispanic

Other White Hispanic Share of undergraduate enrollment by race and institution % of total enrollment, 20141 Asian African American

100 7 12 13 19 18 90 10 11 32 80 17 14 70 30 26 6 32 60 24 50 6 24 7 41 5 40 23 30 11 47 2 5 20 44 41 27 10 24 22

0 CA high Community CSU Private for-profit UC Private nonprofit school graduates college Share of total 10% 17% 13% 10% 50% enrollment in higher ed

1 High school graduates are from 2014. College enrollment is for fall 2014 first-time degree/certificate-seeking undergraduate students. Students in the “other” category include Pacific Islanders, American Indians, Alaskan Natives, students who mark 2 or more races, students with unknown race, and students who are not citizens or nationals of the United states SOURCE: California Department of Education, Integrated Postsecondary Education Data system (IPEDS); California Legislative Analyst’s Office 76 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

77 ADULT LEARNING Changes in the labor market are causing an increased need for lifelong learning, which is accelerating disruptive educational models

New competitors are emerging to offer … Examples MOOCs raise Leading developers of retention … cheap or free concerns: online content massively open online courses (MOOCs) § Low student retention (only 5% of students completed their courses in Coursera in … more flexible Flexible education for 2013) degree adult learners, often § High correlation pathways based on competency between student success in MOOCs and those who have already Industry-developed attained a … alternative credentials to provide higher credentials training in coding or education clean energy degree

78 ADULT LEARNING Adult learner demand for undergraduate programs will grow to be ~115-225k by 2030

Annual adult learner demand for higher education in CA through 2030 Number of students, 000’s

Decreased demand Baseline Increased demand

198 180

160 164 156 160 148 131 118

2018-19 2024-25 2029-30

SOURCE: US Census, IPEDS, NCES 79 ADULT LEARNING While LA Area community colleges educate the majority of adult learners, they have lost some market share since 2010

Market share by institution segment for undergraduate learners1 >25-years-old in LA, 2009-10 to 2017-18 • 37% of first-time Number of undergraduates, 000’s enrollment in 2017-18 at LA Community college Area community Public 4-year colleges2 were Other aged 25+ Private for-profit • Although the Private nonprofit 4-year majority of LA 80 Area community 84 college enrollees are younger than 25, community colleges are critical to the adult learner segment and this 9 segment will grow 8 6 the population 4 1 4 ages 3 2 2009-10 2017-18

1 Data are for total fall undergraduate enrollment for all institution segments except community colleges, including in-state, out-of-state, and international learners. For community colleges, undergraduate data are for annual enrollment (Summer, Fall, Winter, and Spring term). Includes Los Angeles and Orange Counties 2 Includes only LA Community College District colleges SOURCE: IPEDS, DataMart 80 ADULT LEARNING Community colleges are often the most economical choice for learners

Amount owned in tuition and fees after all grant aid in first enrollment year % students who started college in the 2015-16 school year

$2,500 or less $2,501-5,000 $5,001-10,000 $10,001-20,000 More than $20,000

Public four-year 47 19 20 11 4

Private nonprofit four-year 25 12 19 22 22

Public two-year 80 17 3

Private for profit 7 12 33 40 8

0 10 20 30 40 50 60 70 80 90 100 Share of students

SOURCE: Urban Institute analysis of National Center for Education Statistics, National Postsecondary Student Aid Study (NPSAS) PowerStats, 2016, https://nces.ed.gov/datalab 81 ADULT LEARNING Higher education institutions are offering online degrees and courses as alternatives to traditional degrees earned in the classroom

Growth in undergraduate distance learning1, 2012-15 # of students participating in a form of distance learning, thousands

+3% p.a. 4,999 4,834 4,706 4,559

Online enrollment is growing despite flat undergraduate enrollment overall

2012 13 14 2015

1 Distance learning is defined as taking at least one course outside of a traditional classroom environment, such as through an online course SOURCE: Digital Learning Compass: Distance Education Enrollment Report 2017 82 ADULT LEARNING Private online institutions are expanding rapidly… 2010-11 2017-18

Total fall undergraduate enrollment, 2010-11 & 2017-18 CAGR (2010-11 # of undergraduates, thousands to 2017-18)

5 45% 71

16 30% 95

17 23% 72

SOURCE: IPEDS 83 ADULT LEARNING …and this growth is driven disproportionately by adult learners

>25-years-old <25-years-old

Fall undergraduate enrollment by age, 2010-11 & 2017-18 % total undergraduates

75 82 86 91 87

25 18 14 9 13 2010-11 2017-18 2010-11 2017-18 2010-11 2017-18

SOURCE: IPEDS 84 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

85 APPRENTICESHIPS Reaching 500K apprenticeships by 2029 requires ~20% annual growth

The Governor’s bold vision for apprenticeships Potential outcomes • Provide more people with the apprenticeship 500K experience • Drive rigorous apprenticeships that equip Required annual individuals for job-ready skills growth: 19% • Create flexible pathways to complement higher education Ramp up: 17K in 2019 to 79K in 2028 • Engage businesses so they view apprenticeships as part of their core talent strategy +411K

89K

2018 2029

86 APPRENTICESHIPS Current mix of sectors for apprenticeship programs does not reflect the sector mix for jobs in California Sector as proportion of total roles1, percent 100 100 § Healthcare support is expected to grow +2.5% 11 17 Other annually and Personal Care technology at +1.6% annually. Both are not 21 5 Construction 4 currently well- 3 Maintenance & Repair represented 6 Management & Civil Service § Apprenticeships focused 7 Transportation on construction (+1.5% 5 28 Manufacturing annual) are a useful 5 growth engine, and Healthcare 9 general responsive to Food Preparation & Serving policy 4 Technology 13 6 § Manufacturing 6 Education expected to see -0.3% 7 1 Business & Financial Operations annual jobs decline due 10 to higher risk of 7 0 Sales 0 automation 8 0 15 Administrative Support 0 0 4 Apprenticeships Total Jobs

1 Apprenticeships are mapped based on programs available under the DAS registered database 2 Other includes entertainment, cleaning, science, architecture, agriculture, legal occupations SOURCE: CA Department of Industrial Relations Division of Apprenticeship Standards; EMSI 87 APPRENTICESHIPS Case examples show that opportunities exist to grow and improve California apprenticeships

Potential opportunities Current status in CA Potential interventions Best in class Potential size • Most apprenticeships • Address perception around types • Colorado • ~85K – 435K currently state high school of students that pursue • Switzerland High school completion as pre-requisite apprenticeships • Wisconsin 1 pathways • Common-base portable nationally recognized standards • Heavily focused towards • Build for midcareer adults requiring • Singapore • ~90K – 990K youth reskilling • Australia Reskilling the • Apprenticeships perceived • Flexible lifelong reskilling accounts 2 displaced as pre-career by individuals and businesses • Sector representation is • Broaden from manual trade to • Maryland • ~360K skewed towards industries white-collar industries • UK 3 Sector expansion such as construction, • Increase pathways for different personal care and careers and reframe options equipment maintenance

Targeted groups • 6% of apprentices are • Expand occupations mix • Wisconsin • ~530K women • Promote women in generally male • Australia 4 participation (e.g., gender, dominated professions regions, demos)

• Businesses view registered • Rebrand for businesses through • South Korea • N/A – apprenticeships as complex engagement and co-creation • Japan affects all • Parents and students don’t • Rebrand for students and parents 5 Rebrand view them as prestigious as viable path to professional apprenticeships growth • Outreach strategy for underrepresented groups

88 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

89 STATE OF TRAINING LANDSCAPE The landscape of training providers is evolving, with many new entrants

Competitor archetype Description Target learner segment Examples § Large online institutions providing § Adult learners AS/certificates through Bachelor’s degrees A Online

§ Out-of-state 4-year public institutions, often § Recent high school offer in-state tuition matches for CA graduates Out-of-state, B undergraduates public

§ 2- and 4-year for-profit institutions, largely LA- § Adult learners based § Recent high-school C For-profit graduates

§ UC & CSU institutions § Recent high school graduates Traditional higher education institution education higher Traditional In-state, D 4-year

§ MOOCs, bootcamps, short-term skills training/ § Adult learners Nontraditional certification, nanodegrees E education provider

§ Employers who hire students directly out of high § Recent high school school graduates F Employer

90 STATE OF TRAINING LANDSCAPE California has one of the highest rates of internet and broadband access in households compared to the rest of the US

Internet access Broadband access

%, 2017 Rank %, 20171 Rank

California 87.9 6 California 87.7 6

Illinois 84.0 20 Illinois 83.6 20

New York 83.7 22 New York 83.4 21

Texas 83.5 25 Texas 83.3 24

Florida 83.4 26 Florida 83.2 25

US state US state 83.1 - 82.8 average average -

Pennsylvania 82.0 34 Pennsylvania 81.5 35

1 Access to internet with speeds greater than 25 Mbps SOURCE: Akamai; U.S. Census 91 STATE OF TRAINING LANDSCAPE As a result, existing training providers are revamping their models, with community colleges seeing growth in distance learning

Annual students enrolled in distance education in LA Area community colleges1 # students, thousands and CAGR

15 The number of students in LA 20% Area community colleges enrolled in distance education has 6 grown ~20% annually over the past 5 years

2012-13 2017-18

1 Includes both credit and non-credit students in LA Community College District schools. Numbers are FTEs SOURCE: DataMart 92 STATE OF TRAINING LANDSCAPE Despite improvements in flexibility, training providers still have typical challenges in distance learning programs Key challenges in training provider landscape Description • Learners find programs via ads or word-of-mouth with few details Low program awareness

• For-profit programs are unaffordable (e.g., $20,000-$40,000 range) Too expensive

Limited hands-on • Learners cannot find a host and schools often provide limited support experience • Learners report difficulty in awareness and understanding how to advance in Career pathway confusion careers • Learners report struggling with course content and needing more robust Low academic support resources (e.g., tutoring)

Tough for busy working • Schedules make attendance difficult for learners with family and work obligations adults • Learners report that programs do not facilitate interactions, job preparation and No/poor job search support interview opportunities

• Employers want new hires with prior experience Barriers to work experience

• Employers report new hires lack professionalism and other “work ready” traits Not ‘work ready’

• Employers report employees lack critical skills e.g., interpersonal, leadership Low ‘soft’ or ‘future’ skills

SOURCE: Expert interviews; Learner interviews; Employer interviews 93 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

94 EARNINGS BY REGION Comparison of job growth by earnings shows that the highest growth jobs are not always high wage, with regional variation

Summary of trends across key regions • In San Jose, the highest growth jobs are high wage - computer and math, business, and management – Median hourly earnings in management are significantly above statewide average (e.g., ~174% of statewide average) • In San Francisco, the highest growth jobs are on both ends of the wage spectrum: of the low- wage jobs, highest growth is in personal care and food prep; of the high-wage jobs, growth is in computer and math, business, and management • In Los Angeles, the highest growing jobs are low-wage - personal care and food prep – Los Angeles has substantially more jobs than any other MSA (e.g., ~152% compared to the 2nd highest, San Francisco) Challenges• In Stockton, highest job growth is in transportation, a medium-wage occupation. In contrast, the highest job growth in similar regions is in low-wage occupations (e.g., personal care, food prep) – Stockton-Lodi has experienced higher overall job growth compared to similar regions • In Fresno, the highest growth job is low-wage: personal care – Among mid- and high-wage jobs, healthcare, then education have the highest growth – Median hourly earnings in healthcare jobs are less than statewide average (e.g., ~11% less) while earnings in education are similar • In Bakersfield, the highest growth job is low-wage: agriculture – Among mid- and high-wage jobs, education, then healthcare have the highest growth – Median hourly earnings in education are higher than statewide average (e.g., ~8% more) while healthcare pays less (e.g., ~14% less) For details by region, see Regional Earnings appendix

95 EARNINGS BY REGION Across California, occupations in business and healthcare are growing the fastest with high wages

Median hourly earnings Occupation average $, 2016 Size of bubble = 2016 employment 46 44 Computer and Mathematical 42 Architecture and Engineering 40 Healthcare Practitioners Legal and Technical 38 36 Life, Physical, and Social Science 34 Business and Financial Operations 32 Management 30 28 Installation, Maintenance, and Repair 26 24 Community and Social Service Education, Training, and Library Office and Administrative Support 22 Construction and Extraction 20 Protective Service 18 Healthcare Support Arts, Design, Entertainment, 16 Building and Grounds Production Sports, and Media 14 Cleaning and Maintenance Sales and Related Transportation 12 Personal Care and Service Food Preparation 10 Farming, Fishing, and Forestry and Serving Related 8 6 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 Employment change 000’s, 2011-2016 SOURCE: Economic Modeling Specialists International 96 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

97 FUNDING Funding for state workforce solutions typically comes from four key sources

Funding source Key insights and takeaways • State-funded grants that help pay tuition at higher ed institutions especially the California Community Colleges State • State tax credits reward companies that invest in training and educating their employees

Public • The federal WIOA program appropriates funds to local workforce boards for training and support services every year • There is an opportunity to better direct WIOA and other federal Federal funding (e.g. SNAP E&T) to the most effective training providers and support services

• There is an opportunity to partner with foundations that frequently give for workforce development efforts, particularly in cities Non-profit

Private • U.S. companies, on average, spend ~$4,000 per candidate on recruiting and ~$1,100 per learner on training • Employers could achieve positive, measurable impact by outsourcing Corporate more recruiting/training efforts to successful and cost-effective workforce development organizations and by working closely with educators to produce more workforce-ready graduates

SOURCE: Interviews, websites, WIOA Plans 2016-2020, Foundation Center, Forbes, Industry Training Report 98 FUNDING Annual workforce training spending in the CA is driven primarily by employer-provided training

Private 2018 spending on CA workforce development Public USD M

Employer-provided Key takeaways 19,987 training1 • Employer-based training is the predominant method Federal funding (WIOA) 835 of skills development in California • State plays pass- State funding 759 through role for a majority of the federal funding Philanthropy2 <25 • Annual foundation funding is relatively small Bootcamp / <25 private training

Total 21,603

1 2017 Training Industry Report, Training magazine based on US average spend $1,075 training per employee 2 Average of top 100 foundations funding job creation and workforce development in California

99 FUNDING $1.6B in annual public funding is available for workforce training in California

Funding source Subcategory description 2018 funding, $M

Title I: Adult employment, dislocated workers, youth employment 300

Title II: Adult literacy and English language 85 Federal (WIOA) Title III Wagner Peyser: CA Employment Development 79 Department job service staff

Title IV: Developmental disabilities job services 371

Adult basic education1 funds for Department of Education (CDE) and the California Community Colleges’ Chancellor’s Office 500 State Payroll-tax funded employer-designed and -led training for upskilling of incumbent and new workers 105

CalWORKS (TANF)2 for job placement of adult recipients of 132 Hybrid funding monthly welfare benefits (Federal and State) Calfresh employment (SNAP)3 for job placements for low-income job seekers who are food stamp recipients 22

1 Adult basic education program consists of community colleges funding, and therefore fixed under Proposition 98 2 CalWORKS program~$6.6B. Majority of funds for participant monthly benefits (average $1,088 per month in California) and program administration. Estimated 2% towards job placement 3 Calfresh is the food stamp program in California worth $114 million. Estimated 2% of funds go to job placement

100 FUNDING Innovative workforce programs can seek funding from foundations, which already give an average of ~$48M annually

Top 10 California Foundation grantmakers for workforce development1 USD M (2013-2018) # grants The James Irvine Key takeaways 54.9 Foundation 79 • The James Irvine The California Foundation is the 41.4 146 Endowment leading Conrad N. Hilton organization giving 9.8 16 Foundation grants towards better careers, fair The California Wellness 6.3 41 work and building Foundation grassroot coalitions Wells Fargo 5.3 257 Foundation • The top 10 non- government College Futures 4.7 10 grantmakers Foundation account for a total W.K. Kellogg of $48M in WFD 4.3 8 Foundation funding per year The Roberts (on average) which 3.7 3 Foundation is ~5% of the annual federal WIOA The Goldman Sachs 3.7 3 budget Foundation Bill & Melinda Gates 3.5 3 Foundation

1 Top 10 foundation grantmakers that awarded grants from 2013-2019 tagged with “job creation and workforce development“, "job retraining", "job training", “job benefits”, “job counseling”, “vocational education” or “job services”; excludes US federal funds or adult education e.g., English language courses SOURCE: 2019 Foundation Center 101 A closer look at the significant workforce challenges facing California 1 By many key metrics, California has improved, but it still has higher under-employment and unemployment compared to the rest of the US 2 California has the second highest cost of living in the US and after adjusting for cost of living, it has more low-wage employees than peer states 3 California faces a gap in supply and demand for many occupations, looking ahead the gap is expected to grow and both employers and students do not believe graduates are prepared 4 A regional comparison shows that workers in regions outside of major MSAs (e.g., El Centro, Fresno, Bakersfield, Merced) face the highest unemployment and lowest wages 5 Unemployment rate in California is high and there are two unemployed individuals for every job posted; Youths and African Americans are disproportionately affected 6 5.3M Californians find themselves below the poverty line and income and wealth inequality in California is growing faster than most states 7 Despite a growing number of jobs, domestic migration has grown over time as Californians move to other states 8 Despite CA’s HS graduates being increasingly diverse, students of color in HS continue to have an achievement gap (e.g., they are less likely to graduate high school UC or CSU eligible than peers) 9 In California, automation has the potential to disproportionately impact low-skill and middle-skill occupations 10 Independent workers make up nearly 30% of working age population in California, in the Bay Area and Los Angeles, 54% use independent work as their primary source of income 11 CA’s population is expected to continue aging with 20% of population being 65+ by 2030 vs. ~15% of population today 12 Higher educational attainment is shown to improve labor force participation and lower unemployment, however the gap in demand and capacity for higher ed is projected to grow 13 Adult learning is on the rise in California. Historically, these learners turned to community colleges for reskilling, however more are turning to private institutions to fill this gap 14 Apprenticeship programs are sub-scale and less than 1% of current registered apprenticeship programs in the state are in the Healthcare or IT sector 15 Training program are unaffordable with inconsistent quality and links to career pathways and employer needs 16 In several regions in California, the highest growth jobs in different regions in California are not always high wage 17 A majority of public funding for workforce development comes with conditions, but a combination of discretionary programs, foundations, and private employers can provide flexibility to support new initiatives 18 California does not have a centralized data platform that can provide an integrated view of the labor market dynamics, skills required and pathways for job seekers, employers and educators

102 DATA INFRASTRUCTURE Building a robust labor market data infrastructure can help to better inform stakeholders and identify additional opportunities

Interfaces and interventions Stakeholders • Personal learning accounts for students/job seekers Skilled • Customized advice for coaches and individuals Coaches Employers Educators Government job seekers Improved Increased Visibility on Demand- Performance- • Open source platform for educators education capacity and talent market based based and employers access and tools for and input in curricula and incentives • Annual reports for educators and career coaches and curriculum better and data policy makers decision- those seeking design graduate based making support outcomes decisions

Insights generation engine • Career pathways for students/job seekers • Training programs quality • Labor market projections

Data infrastructure • Employer demand • Employee satisfaction • Educational outcomes • Labor supply • Wages

103 DATA INFRASTRUCTURE Publicly available data in California is sparse and difficult to access; even leading platforms struggle with adoption (1/2)

Challenge Explanation Why this matters Potential ways to fill the gaps • The majority of tools are • There are multiple pathways • Roll out statewide access available only for students to employment beyond • Simplify user navigation journey of community colleges community college and this Available tools • Track metrics on credentials data could be useful for all are not • Navigation amongst tools is required, skills required for new jobseekers and individuals universally complex and it is difficult to careers, transferrable skills to trying to obtain the right skills accessible understand the link other careers / industries between degrees/credentials and skills gained

• Coaching resources to use • Individuals need to • Create accessibility of coaching and benefit from data are understand how to use the to help people discover new Little coaching not widely available data in order to benefit from it careers and support • Support resources are not • Coaches and school • Build online tools to inspire people available available at the right time counsellors that have access to pursue alternative careers for career and skills to, and use available data development would be more effective

• Level of marketing the tools • Individuals are often unaware • Publicize across current online an to potential users is low of the job market data offline touchpoints for jobseekers Platforms and • Most referrals to data portals available to make informed • Enroll foundations and employers tools need to are made from within the decisions to help create awareness be marketed system • Entry-level and middle skills • Track adoption rate of online and effectively jobseekers would benefit offline resources from widespread usage of data

104 DATA INFRASTRUCTURE Publicly available data in California is sparse and difficult to access; even leading platforms struggle with adoption (2/2)

Challenge Explanation Why this matters Potential ways to fill the gaps • Skills data is sparse and, • A stronger focus on defining, • Build datasets on skills required for where available, it is not teaching, and tracking skills program / job, skills developed in No granular standardized in the workforce ecosystem program / job, transferrable skills skills data for Skills data is rarely shown at will ensure that middle-skill and skills for new careers jobs and • the training level (e.g., job seekers are not left Create a standardized skills training • prerequisite skills needed to behind in an ecosystem that currency across educators, programs enroll, how skills translate to heavily indexes on degrees employers and jobseekers different careers)

• Employment rate post- • Individuals need to know • Measure and report on education training is rarely available what training programs work program quality metrics e.g., Path to desired publicly to hold the system employment rate, program job and best • Little information on the fit accountable to delivering on completers who enroll in a related training unclear between credentials outcomes (e.g., will get them industry, program completers who obtained and job the job or promotion) used their new credential to get a placements achieved job

• Very few resources to show • Some information can be • Pilot outcomes based on Measurable the “return-on-investment” mined by a job seeker to measurable impact by program impact is often (i.e., an accurate picture of calculate their own return-on- and college missing, making salary payoff from investment (e.g., cost, • Track quantitative variables for it hard to make investment in program or program duration, salary at entry, salary growth trade-offs college) scholarships available) but potential to build ‘expected between • Metrics beyond salary (e.g., there is no single platform to impact over time’ programs, employer reputation, work calculate the value of • Measure non-financial employer college and job environment) are different pathways quality data unavailable

105 DATA INFRASTRUCTURE California already has publicly available state-driven platforms tools, but integration and adoption are highly variable (1/2) Database, platform, tool Overview Ownership Integration Adoption Data system that provides data to California CA Link CTEOS Low community colleges on progress, employment and Community to college (~80K earnings outcomes for both CTE and non-CTE Colleges perfor- monthly pathways Chancel- mance views across lor’s Office dashboard cccco.edu)

Online tool that provides comparative information CA Augment Low about the earnings of recent community college Community MIS to (~80K graduates to help students and their families make Colleges projected monthly decisions about investing in a college education Chancel- jobs data views across lor’s Office cccco.edu)

Online aggregation of resources for job seekers and CA Build API Med employers to search for jobs, build résumés, access Employment feed for job (400K career resources, find qualified candidates for Developmen sites monthly employment, and gather information on education t (Monster, views) and training programs Department LinkedIn)

Division of Online portal to search for and learn about current CA Dept of Create Med Apprenticeship apprenticeship programs in California. Also provides Industrial composite (~13M Standards (DAS) information for employers to register an Relations database monthly apprenticeship with CCC views for dir.ca.gov)

SOURCE: Initiative websites; web traffic measured via similarweb.com where possible; otherwise estimated on macro domain level 106 DATA INFRASTRUCTURE California already has publicly available state-driven platforms tools, but integration and adoption are highly variable (2/2) Database, platform, tool Overview Ownership Integration Adoption Labor Market Provides information to help people understand CA Integrate to Med Information (LMI) California's economy and make informed labor Employment high (~5M monthly market choices. Reports on California's labor force, Developmen school/ views across industries, occupations, employment projections, t college CA wages and other important labor market and Department career Employment economic data portals Development Department. ca.gov)

Online portal that allows job seekers to search for jobs CA State Report on High with state government. Users can search across Govern- State-led (600K different skills, locations and work schedules, and take ment skills gaps monthly assessments views)

SOURCE: Initiative websites; web traffic measured via similarweb.com where possible; otherwise estimated on macro domain level 107 DATA INFRASTRUCTURE Data use and data sharing across systems and platforms may be subject to legal and legislative constraints

Constraints Description Stakeholders • Education system can produce large amounts of • Students and job seekers personally identifiable student data which is protected • Educators by third party usage beyond by schools and may • Employers require additional agreements of terms of usage Data • Education outcomes data developed by the state privacy could be subject to FISMA and subject to reporting requirements • Consumer Privacy Act empowers Californians with more control over their data and its usage

• Sharing of employer skills requirements may be limited • Employers / industry bodies by what is considered to be competitively sensitive • Students and job seekers data • Educators Usage of skills and credentials data by employers Data • needs to be regulated integration • Credential mapping and skills to hire requirements may be complex • Cross-state data usage subject to specific state requirements

• Increased volume of domestic and international • Students and job seekers attacks requires continuous investment in data security • Coaches Data • Efficiency of only developing data sets that lead to • Employers security outcomes would be preferable to collecting • Educators widespread data • Government

108 DATA INFRASTRUCTURE In developing its workforce tools, California could consider a series of data requirements to ensure applicability to job-seekers (1/3) Priority decisions Insights Data requirements Full data publicly available Partial data publicly available

Work experience required Do I have Skills required the background Education required for this job? Profiles of those typically hired

Expected future demand for the job

Will this job Job benefits (e.g., healthcare) sustain my Decision 1: livelihood? Salary at entry What’s the best career Salary growth potential path for me? Advancement opportunities Will I advance in Requirements (e.g., additional education) for advancement at job my new career? Exit opportunities for the job

Average employee satisfaction

Will I be Interest/passion for job happy in this job? Job culture/environment (e.g., flat vs. hierarchical, desk-job vs. in-the-field)

Working hours (e.g., nigh shift vs. day-shift, seasonal vs. annual)

109 DATA INFRASTRUCTURE In developing its workforce tools, California could consider a series of data requirements to ensure applicability to job-seekers (2/3) Priority decisions Insights Data requirements Full data publicly available Partial data publicly available

Reputation/rating among employers and job seekers Skills taught (for completers and those who drop out) Credentials taught Average employment rate (for both WIOA and non-WIOA funded) Average time to employment (for both WIOA and non-WIOA funded) Will it help me get a job? Percent of program completers who enroll in a related industry (for both WIOA and non-WIOA funded) Percent of program completers who used their new credential to get a job Whether or not the skills taught will translate to other careers/industries Whether or not skills/credentials taught will "stack" with skills already attained Whether or not the type of program (e.g., apprenticeship, 2-year degree, internship) is the best one for Decision 2: getting a job in the desired career Should I pursue Program cost further education/ Outside funding available (e.g., grants, scholarships) training when I Can I Expected impact over time based on projected salary (for both WIOA and change career afford this non-WIOA funded) paths, and if so program? which one? Opportunity cost (i.e., lost wages during training program) Other potential costs (e.g., childcare, transportation, books, exam costs) Skills needed to complete program (e.g., typewriting skills) Accessibility of program from work/home Accessibility of nearby jobs that training programs prepares students for Can I attend this program Schedule/timing of program beyond duration (to assess whether timing conflicts with outside commitment) and be successful? Average completion rate (for both WIOA and non-WIOA funded) Average time to completion (for both WIOA and non-WIOA funded) Whether or not the teaching format/method (e.g., online vs. classroom) matches an individual's learning style

110 DATA INFRASTRUCTURE In developing its workforce tools, California could consider a series of data requirements to ensure applicability to job-seekers (3/3) Priority decisions Insights Data requirements Full data publicly available Partial data publicly available

What resources/ Accessibility of coaching to help people discover new careers services will introduce me to the idea of pursuing a new Online tools to inspire people to pursue alternative careers pathway?

Decision 3: When I do not know Resources (including funding) to help job seekers overcome external barriers in what to do their career transition (e.g., childcare, transportation) next, how What do I get resources/ help? services will help me Resources (including funding) to support job seekers with health problems or successfully unexpected hardships (e.g., a mental/physical disability, family tragedy) make the transition to a new career? Resources to support job seekers who are pursing training complete their coursework and get a job (e.g., tutoring, outside class workshops, resume prep)

111 DATA INFRASTRUCTURE Outside-in assessment shows California’s workforce tools are currently fragmented and decentralized (1/2)

Full data publicly available Partial data publicly available Aggregate for CA state CA State Launch Salary Cal- (aggregated) Board Surfer CalJOBS DAS LMI Careers

Data insights and requirements Do I have the background for this job? • Work experience required • Skills required • Education required • Profiles of those typically hired (e.g., what stage in life typically at) Will this job sustain my livelihood? • Expected future demand for the job • Job benefits (e.g., healthcare) Decision 1: What's • Salary at entry the best career path • Salary growth potential for me? Will I advance in my new career? • Advancement opportunities • Requirements (e.g., additional education) for advancement at job • Exit opportunities for the job Will I be happy in this job? • Average employee satisfaction • Interest /passion for job • Job culture / environment (e.g., flat vs. hierarchical, desk-job vs. in-the-field) • Working hours (e.g., night shift vs. day-shift, seasonal vs. annual) Will it help me get a job? • Reputation / rating among employers and job seekers • Skills taught (for completers and those who drop out) • Credentials taught Decision 2: Should • Average employment rate (for both WIOA and non-WIOA funded) I pursue further education/ training • Average time to employment (for both WIOA and non-WIOA funded) when I change • Percent of program completers who enroll in a related industry (for both WIOA career paths, and non-WIOA funded) and if so which • Percent of program completers who used their new credential to get a job one? • Whether or not the skills taught will translate to other careers / industries • Whether or not skills / credentials taught will "stack" with skills already attained • Whether or not the type of program (e.g., apprenticeship, 2-year degree, internship) is the best one for getting a job in the desired career

What we learned: accessibility of information through easy to use tools (e.g., information) is currently fragmented and decentralized across sites while a large SOURCE: Initiative websites number of information required to make career decisions is unavailable 112 DATA INFRASTRUCTURE Outside-in assessment shows California’s workforce tools are currently fragmented and decentralized (2/2)

Full data publicly available Partial data publicly available Aggregate for CA state CA State Launch Salary Cal- (aggregated) Board Surfer CalJOBS DAS LMI Careers

Data insights and requirements Can I afford this program? • Program cost • Outside funding available (e.g., grants, scholarships) • Expected impact over time based on projected salary (for both WIOA and non-WIOA funded) • Opportunity cost (i.e., lost wages during training program) • Other potential costs (e.g., childcare, transportation, books, Decision 2: Should exam costs) I pursue further Can I attend this program and be successful? education / training • Skills needed to complete program when I change (e.g., typewriting skills) career paths, and if • Accessibility of program from work / home so which one? • Number of nearby jobs available that training programs prepares students for • Schedule / timing of program beyond duration (to assess whether timing conflicts with outside commitment) • Average completion rate (for both WIOA and non-WIOA funded) • Average time to completion (for both WIOA and non-WIOA funded) • Whether or not the teaching format / method (e.g., online vs. classroom) matches an individual's learning style What resources / services will introduce me to the idea of pursuing a new pathway? • Accessibility of coaching to help people discover new careers • Online tools to inspire people to pursue alternative careers What resources / services will help me successfully make Decision 3: When I the transition to a new career? do not know what • Resources (including funding) to help job seekers overcome to do next, how do I external barriers in their career transition (e.g., childcare, get help? transportation) • Resources (including funding) to support job seekers with health problems or unexpected hardships (e.g., a mental / physical disability, family tragedy) • Resources to support job seekers who are pursing training complete their coursework and get a job (e.g., tutoring, outside class workshops, resume prep) What we learned: accessibility of information through easy to use tools (e.g., information) is currently fragmented and decentralized across sites while a large SOURCE: Initiative websites number of information required to make career decisions is unavailable 113