How California’s next governor can create opportunities for workers and businesses in a

changing economy through a skills-based labor market

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30%

38%

CREATING OPPORTUNITIES FOR WORKERS AND BUSINESSES IN A CHANGING ECONOMYA Proposal by the Rework America Task Force, a Markle Foundation Init iative

Proportion of jobs at high risk of being impacted by automation

Preparing the workforce of the future

To prepare the economy for the jobs of the future, every sector needs to play a role.

Source: BLS data, Frey & Osborne likelihood of automation. 'High-risk' defined as >=90% likelihood.

Technological change and automation are reshaping the economic landscape and affecting the skills needed to compete for good jobs.

Today, there are more unfilled jobs than Americans looking for work. By focusing on skills, America can help workers access new opportunities while also bringing more people into the labor force.

Sources: BLS data; McKinsey Report, “Jobs Lost, Jobs Gained” (2017);Manpower Group's 2016 Talent Shortage

American workers need new skills for the new economy

Need new skills to access new opportunities

WORKERSNeed skilled workers to

innovate and grow

BUSINESSESNeed to prepare every worker

for 21st century jobs

EDUCATORS

States can modernize their labor markets to help workers develop the skills to compete and businesses find the workers with the right skills.

Source: California Employment Development Department, Frey and Osborne, the likelihood of automation, National Skills Coalition

CALIFORNIA JOBS AT RISK OF CHANGE DUE TO AUTOMATION

With technological change accelerating, many current jobs across California will be eliminated, changed or replaced by new opportunities that require new skills.

Creating opportunity for Californians in an automated economy

California businesses need workers with the right skills, and workers need new opportunities to support their families.

California can connect its workers—especially the more than six in ten without a college degree—to training and jobs in growing industries such as healthcare, construction, and education.

By 2024, California is projected to add net new jobs in key growth sectors:

Health Care: 302K

Construction: 130K

Education: 51K

Unemployment, income, and opportunity vary across California.

California can create new opportunity by helping workers develop skills across the state.

Source: California Employment Development Department

The opportunity for California’s labor market:

OF NEW JOB OPENINGS WILL REQUIRE MIDDLE-SKILL WORKERS

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PREPARE CALIFORNIANS WITH THE SKILLS THEY NEED FOR GOOD JOBS IN THE NEW ECONOMYA Proposal by the Rework America Task Force, a Markle Foundation Init iative

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Deepen the talent

pool for employers

CREATING A SKILLS-BASED LABOR MARKET WILL:

Sharpen our

competitive edge

Increase diversity

in the workplace

Unlock prosperity

for everyone

REIMAGINING THE WORKFORCE OF THE FUTURE

A Proposal by the Rework America Task Force, a Markle Foundation Init iative

To position the economy for success in the 21st century, we need to wholly rethink

the way our labor market works. A skills-based labor market will make it easier for

job-seekers of all kinds to acquire skills to compete for in-demand jobs, and agility to

respond to changing demands.

Proposal: Building a skills-based labor market

PILLARS OF A SKILLS-BASED LABOR MARKET

REWARD SKILLS,

NOT DEGREES

People should be

rewarded based on

their ability to do the

work–their skills–

rather than degrees.

VALUE ALL

PATHWAYS

People need multiple

viable pathways into a

career. A four-year

degree isn’t the only

path to success.

SUPPORT LIFELONG

LEARNING

People need training

throughout their

careers to adapt to

trends we cannot

yet anticipate.

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A MODERN LABOR MARKET IN ACTIONA Proposal by the Rework America Task Force, a Markle Foundation Init iative

In Colorado, Skillful provides the infrastructure for a skills-based labor market that serves job-seekers and businesses.

Case Study: Skillful Colorado

Key initiatives

• Show public and private employers how skills-based practices strengthen applicant pool and reduce time to hire

• Help job seekers and employers identify best training programs by comparing ROI

• Build a state network of elite career coaches

Skillful is on the path to creating 50K better pathways for job seekers by 2020. In FY2018, it has created:

BUILDING BETTER PATHWAYS IN COLORADO

BUILDING A NATIONAL MOVEMENTSkillful State Network: A nonpartisan group of 20 governors dedicated to learning how to modernize their labor markets.

2,764BETTER

PATHWAYSfor job–seekers

20of the state’s largest

EMPLOYERSactively engaged

200+ MEMBERS of the coaching community of practice

4,966EMPLOYERSLearned about

skills-based hiring

5* See next page for more policy ideas

BUILDING THE LABOR MARKET OF THE FUTUREA Proposal by the Rework America Task Force, a Markle Foundation Init iative

For too long, workforce development efforts have failed to bring more than incremental improvements. By taking personal leadership within state government and across key stakeholders in the private sector, governors can deliver real results for workers and businesses.

What a governor can do to create a skills-based labor market

FOSTER COLLABORATION

FUND WHAT WORKS

Evaluate training programs basedon outcomes: their ability to

create good jobs.

HARNESS DATA, EMBRACE TECHNOLOGY

Empower the labor market with user-friendly data platforms.

Deliver training to more people with new technologies.

USE POLICYLEVERS

Identify state-specific policy levers that support workers educators,

and businesses.*

SKILLS-BASED LABOR MARKET

Maximize efforts by aligning businesses, educators, coaches,

workers, and government to build a more skilled workforce.

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UNLOCK BETTER JOBS FOR CALIFORNIA WORKERS, AND GOOD WORKERS FOR CALIFORNIA BUSINESSESA Proposal by the Rework America Task Force, a Markle Foundation Init iative

Technology is changing the economy. Workers are feeling stuck, and businesses are on the hunt for skilled workers.

What can a governor do?

The following policy ideas outline a robust platform to build a labor market that will strengthen California’s economy in the 21st century.

Need to prepare every worker for 21st century jobs

EDUCATORS

Need new skills to access new opportunities

WORKERS

Need skilled workers to innovate and grow

BUSINESSES

• Support workers seeking new opportunities. Expand portable benefits; improve SNAP and TANF incentives.

• Expand access to lifelong, quality training. Invest in apprenticeships and flexible training models.

• Remove barriers to employment. Reform occupational licensing and modernize paid leave.

• Fund quality training. Provide new financing for training programs proven to successfully create new opportunities for workers.

• Align curriculum development with employer needs. Champion partnerships with businesses to align curriculum and training with the skills employers will need in the future.

• Replace tax incentives with talent incentives. Attract businesses to California by developing a workforce equipped with the skills employers need to grow their business.

• Adopt skills-based hiring practices. Prioritize skills over credentials when hiring for state jobs

BETTER JOBS FOR CALIFORNIANS