Bridging the Los Angeles Tech Talent Gap September 2018 Bridging the Los Angeles Tech Talent Gap Table of contents Chapter 1: Executive summary .......................................................................2 Chapter 2: LA tech market – where it is and where it’s going .....................3 The LA labor market ............................................................................................... 3 LA tech jobs ............................................................................................................. 4 Chapter 3: Understanding the tech talent gap ..............................................5 Contributing factors ............................................................................................... 5 Examples of current initiatives ............................................................................. 6 Chapter 4: Bridging the talent gap ..................................................................7 The coalition ............................................................................................................ 7 Coalition Structure .................................................................................................. 8 Roles and responsibilities ................................................................................. 8 Coalition roadmap .................................................................................................. 9 Phase One .................................................................................................... 10 Phase Two .................................................................................................... 12 Chapter 5: Value proposition – benefits and outcomes .............................13 Employers .............................................................................................................. 13 Education institutions .......................................................................................... 13 Intermediaries ....................................................................................................... 14 Chapter 6: Conclusion ......................................................................................15 Appendix ............................................................................................................16 Endnote ..............................................................................................................19 1 Addressing the technology skills gap in Los Angeles Chapter 1: Executive summary Los Angeles (“LA”) distinguishes itself as the opportunities, play a vital role in bringing Increasing awareness of tech entertainment capital of the world. In recent together these stakeholders and help industry’s current hiring needs and years, the region has also been emerging to bridge gaps in communication. These in-demand skill sets as an epicenter for technology (“tech”) bilateral partnerships are important steps companies, which gave rise to tech jobs to addressing the talent gap; however, these Increasing work-based learning both within and outside the tech industry. partnerships tend to solve problems that opportunities with focus on Its proximity to one of the nation’s largest are not scalable and there needs to be a developing both soft and hard skills airports and ports of entry, its diverse broader effort to address the systemic for students across K-12, colleges, culture and abundance of creativity has root of the talent gap. Today’s and future and universities to supplement made it an attractive alternative for both talent in LA needs an updated and more existing curriculum material start-ups and Fortune 500 companies to dynamic educational curriculum, more Providing opportunities to bring an operate. The increase in the number of work-based learning opportunities, industry presence into classrooms companies operating in LA translates to increased company awareness of a rise in job opportunities and needs for nontraditional applicant pools, and to engage students and foster tech positions. student awareness of tech careers. interest in pursuing tech careers These challenges can be addressed through Increasing faculty and educational To continue to attract Fortune 500 a collaborative coalition effort, led by an institution awareness of the companies, LA must solve the challenge of intermediary who can facilitate the exchange real-world working environment projected supply of tech talent not keeping of information between the tech industry to better prepare students for pace with increasing demand. Currently, and educational institutions. transitioning into professional life educational institutions have difficulty outside of school developing a standardized career pathway This paper provides a road map to for tech job seekers and employers do not develop a coalition - a multilateral Developing “points of contact” have access to a strong pipeline of local partnership effort across education inside local educational institutions talent. institutions, tech employers, that can liaise with industry intermediaries, and government intermediaries and tech employers This problem is starting to be addressed. institutions to address the underlying Corporations and education institutions factors causing the talent gap. A have begun addressing the talent gap coalition amongst these groups will provide through increased one-on-one partnerships educational institutions and employers the to develop work-based learning ability to develop a continuous pipeline of opportunities. Intermediaries, defined as highly qualified, local tech talent through: organizations that facilitate partnership 2 Bridging the Los Angeles Tech Talent Gap Chapter 2: LA tech market – where it is and where it’s going LA is emerging as a tech hotbed for start- the end of 2014.v Additionally, according ups and large corporations. Historically to a recent report by LinkedIn on the LA Los Angeles - Economy known as the heart of entertainment and labor market, the most scarce skill in LA, media in the United States, the city has defined as demand exceeding supply, is IT 5 million workers always embraced an influx of innovative and and infrastructure management.vi These creative minds. As a result, an increasing jobs present an opportunity for the LA number of tech companies, accelerators, community to meet the demand for labor 133,870: number of and incubators have made LA their with local talent. IT jobs projected in 2024 base of operations. This intersection of (current: 133,870) entertainment and tech, coupled with LA’s To maximize the return on investment culture of innovation, position the region to of recruitment dollars, tech employers creative economy, be one of the most dynamic tech hubs in the continue to seek opportunities to employ #1 international trade economy, nation. local talent to fill these positions. The LA and manufacturing economy education system produces one of the in the nation The LA labor market largest supplies of labor in California. The LA represents the third largest metropolitan Public Policy Institute of California noted that economy in the worldi with five million LA County accounted for 24% of Bachelor’s employees.ii It is the third largest tech degrees awarded during 2015 and 2016 in Los Angeles - ecosystem in the United Statesiii and in 2017, the state, and the number of graduates will the 100 biggest tech companies in LA and continue to rise within the LA college and Educational Intitutions Orange Counties reported an increase of university systems.vii Within the community 24% more employees than the previous college system, the California Community 120 colleges and year.iv With the increase of tech companies Colleges Chancellor’s Office anticipates universities; 3 top research in the region, there is a growing demand for enrollment to increase by 15% on its LA and universities (UCLA, USC, tech labor. The Bureau of Labor Statistics Ventura county campuses between 2013 Caltech) (BLS) estimates that by 2024, there will and 2023.viii be 133,870 Information Technology (IT), increase in Community engineering, and digital media jobs in LA The increase in enrollment numbers 15% College enrollment from 2013 County, an increase from 115,770 as of across two-year and four-year education to 2023 institutions will provide tech companies an opportunity to secure a local pipeline 80% of highly qualified talent. Employers can Source: LAEDCii, BLSix Of tech talent in LA is identify quality talent prior to graduation and prepare these students with the working outside of the required skill sets to transition directly software and IT industry into high-demand tech positions upon graduation. Source: LinkedIn 3 Bridging the Los Angeles Tech Talent Gap LA tech jobs LA’s booming tech scene, nicknamed “Silicon Beach,” is located in the coastal area north of LA airport. Large tech firms, including YouTube, Google, Yahoo, BuzzFeed, and Snap, have Top high-growth tech jobs in x all settled in the area to conduct business operations. This in turn has attracted other Los Angeles companies outside of tech that need tech talent to move into the region. As of August 1. Software Developers, Applications 2018, LinkedIn data shows that Los Angles has approximately 38,000 companies employing 2. Computer User Support Specialists tech talent and that 74% of employees with tech jobs work outside of the software and IT 3. Computer Systems Analysts industryxi. 4. Software Developers, Systems Software According to the 2016 Built in LA report, an