ILLINOIS NORTHERN STATELINE ECONOMIC DEVELOPMENT REGION 5 WORKFORCE INNOVATION AND OPPORTUNITY ACT REGIONAL PLAN Years 2020 – 2024 1 | Page Property of The Workforce Connection, Inc. Table of Contents INTRODUCTION AND OVERVIEW .................................................................................................... 3 CHAPTER ONE ................................................................................................................................ 4 CHAPTER TWO ............................................................................................................................. 16 CHAPTER THREE ........................................................................................................................... 29 CHAPTER FOUR ............................................................................................................................ 37 CHAPTER FIVE .............................................................................................................................. 58 CHAPTER SIX ................................................................................................................................ 62 2 | Page Property of The Workforce Connection, Inc. INTRODUCTION AND OVERVIEW What is the Regional Plan? One of the significant reforms of the Workforce Innovation and Opportunity Act (WIOA) is that it fosters regional collaboration by encouraging alignment between workforce development programs and economic development strategies. This helps ensure the money spent on workforce training and adult education programs are meeting the current and future demand of employers in a specific region, and that employers have a role in the planning process. The result is that residents of a region can gain relevant skills development and increase their likelihood of advancing their careers, while businesses can succeed in their region with a workforce that meets their specific needs. As part of WIOA, states defined regions to develop plans that connect local Workforce Development Boards with employers and educational institutions and encourage them to think beyond local boundaries. In Illinois, regions were set by the state’s existing Economic Development Regions (EDR) that already align efforts to support business growth. The Northern Stateline Region consists of Boone, Ogle, Stephenson, and Winnebago counties. They are already connected by virtue of being a Combined Statistical Area, a federal designation that recognizes economic and social linkages. The Region is served by two Workforce Development Boards that entered this process already experienced in working together. As outlined below, this plan is also built upon existing collaboration on regional economic development priorities that include workforce development. Unless otherwise noted, all data used for the purposes of this plan was compiled from Department of Commerce and Economic Opportunity (DCEO) using various partner agencies for each economic development region (EDR) and is attached for reference in the appendix. Each Workforce Development Board in each Local Workforce Area (LWA) has created a WIOA Local Plan that is published alongside this Regional Plan. While the Local Plans focus on the specifics of service delivery, the Regional Plan is a bigger picture look at how local efforts connect with the Region’s strategies of improving the economy and providing opportunity to all of its residents. In keeping with state and federal guidelines, the Regional Plan is broken into three sections: 1. Regional Economic and Workforce Analysis 2. Regional Integration of Strategies and Services 3. Regional Vision, Goals, and Strategies 3 | Page Property of The Workforce Connection, Inc. CHAPTER 1: REGIONAL ECONOMIC AND WORKFORCE ANALYSIS- REGIONAL COMPONENT A. Provide an analysis of the economic conditions including targeted industries, high-impact industry clusters, and in-demand occupations; knowledge and skills needed to meet the employment needs of the employers in the region; and an analysis of the regional workforce including special populations and changing demographics. The Region was hit harder than any other part of Illinois by the Great Recession, but since 2014, we have seen a steady decrease in unemployment. Statewide, the lowest unemployment rate in the past decade (3.6%) was reached in both May and September of 2019. However, our region is at 5.1% unemployment - the highest in the state of Illinois. The highest county for unemployment is Winnebago, with Rockford having a 6.1% unemployment rate. From 2014 to 2019, jobs increased by 1.5% in 4 Illinois Counties from 192,805 to 195,740. This change fell short of the national growth rate of 6.9% by 5.4%. As the number of jobs increased, the labor force participation rate increased from 61.0% to 63.7% between 2014 and 2019. With the numerous projects being developed in our region and growth predictions, it is likely we will continue to see a labor demand. Our Region has also been facing an ongoing decrease in population, as well as an aging population. As of 2019 the region's population declined by 2.0% since 2014, falling by 8,945. Population is expected to decrease by 1.0% between 2019 and 2024, losing 4,498 individuals. Reasons for population loss include residents moving elsewhere for better job prospects, taxation and business climate concerns, and quality of life issues. The median age in Illinois has been steadily increasing over the past decade. In 2018, the median age was 38.3 compared to 36.6 in 2010. Statewide, nearly 16% of Illinois residents are age 65 and over. This is concerning for ensuring the future of the workforce, given that we will see a continual growth in jobs but a decline in the available working population. Of the overall population in the region only 13.2% of the selected regions' residents possess a bachelor's degree (5.6% below the national average), and 9.0% hold an associate degree (0.9% above the national average). There is also an average veteran population as compared to the nation, with 28,634 veterans. The majority of these veterans are ages 65-74, served in Vietnam and are white. About 38% of these veterans have an Associate of Arts degree or some college, and 35% have a high school diploma or general education development (GED). While we recognize that Veterans have a higher education attainment rate than the general population and that our region has 4 | Page Property of The Workforce Connection, Inc. numerous veterans, we also know that of those who are able to work, the population of unemployed veterans in each working-age group falls below 0.01% of the total veteran population. This indicates the efforts put towards the education and placement of veterans is working. However, more work is needed to continue this trend with working-age veterans. A notable element of our region’s population is the median income disparity between African American households and other groups. The majority of African American households financially attain two times less than White households. The African American population makes up about 10% of our overall population and therefore requires additional focus and attention in order to assist with their barriers to employment and attaining a livable wage. Currently, the causation behind the research remains inconclusive, as we are only reliant on correlational data regarding the reasoning behind this disparity. Additionally, median income household statistics indicate a high level of working poor. Derived from the U.S. Census Bureau, the poverty rate in the state of Illinois is 12.1%, EDR 5 (10.7%) and in the counties as following: Winnebago County (16.1%), Boone County (9.2%), Stephenson County (12.7%), Ogle County (8.4%). 2.9% of the population work full-time, 38.5% living below poverty report working part-time or seasonally, and 43% of the working age population living in poverty do not work. The region does have a large number of working community members, who live below the poverty line, as defined by the state. These segments of the population are at an increased need for assistance and require additional assistance to address their needs and barriers. Stakeholders noted the “benefits cliff” those receiving public assistance face – benefits often drop faster than work income rises, creating a disincentive to work. Beyond regional policies that are discussed in Chapter 3 of this plan, there are policy changes state and federal agencies can make to reduce this problem. For instance, benefit providers can implement transitional programs, such as Social Security’s Ticket to Work program. The policy and service implications of the above population and employment trends include several high- level strategies that permeate this Regional Plan: • Increase efforts to attract and retain workers, particularly younger, educated workers who can fill the pipeline of in-demand occupations. • Train those who live in the region to fit the needs of employers. • Increase the workforce participation rate through better job opportunities and education/training of the unemployed and underemployed. • Target populations in need of services based on data. 5 | Page Property of The Workforce Connection, Inc. Specific activities to address these implications are noted in Chapter 3 of this plan. Employment needs of employers and the knowledge and skills needed to meet the needs of regional employers The targeted industries for the plan are divided into two sections: leading industries (those that have shown success