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1998 Community Assessment |
Workforce DevelopmentA. Issue SummaryB. Background & Influencing FactorsC. Outcomes & Key Indicators
D. Other Key Outcomes & StatusE. Terms, Concepts & DefinitionsA. ISSUE SUMMARY
The key findings regarding workforce development outcomes from the CAN Community Guide are:
B. BACKGROUND AND INFLUENCING FACTORSThe material contained in this Community Plan encompasses the following beliefs:
High job growth rates and low unemployment have significantly reduced the pool of potential workers. For this reason, most new entrants into the workforce will be women, youth, and other population groups that have been historically underrepresented. These groups tend to have lower years of schooling and skill levels, less experience, language problems, and other impediments to taking full advantage of job opportunities. Population groups "targeted" for special assistance consideration have been classified into ten broad categories. These groups, in general, tend to have above average unemployment and poverty rates and below average years of schooling or skill levels:
Importance to the CommunityThe continued growth and prosperity of the Austin area is directly linked to improvements in the quality of our education and workforce systems. Only a population of educated and skilled workers will enable us to maintain the strength of our local economy and quality of life in the years ahead. The impact of workforce development on the community and decisions about service delivery are dependent upon many major factors including technologies advances, demographic changes, worker education levels, job supply, continuing education opportunities, the increasing role of hard-to-serve groups in the workforce, the availability of child care and transportation, and the quality and availability of job placement services. C. OUTCOMES AND KEY INDICATORSThe six outcomes that will be analyzed in the next section are:
The corresponding indicators match the performance measures set by the Capital Workforce Development Board. OUTCOME: Increased opportunities for workers to obtain newer and more technologically complex skills Travis County's economy and the workplace are changing rapidly. Necessary job skills are continuously changing for all types and sizes of businesses. It has been estimated that over half of all new jobs created by the year 2000 will require some education and training beyond high school, and that nearly a third will require a college degree. Technological innovations, changing demographics, and the globalization of the marketplace have sped up the rate of change. These "driving forces" can make any set of skills obsolete almost overnight. To adapt to this new "work world" employees must constantly acquire new and higher order skills. Workers must embrace learning to be competitive. Employers have taken the lead in this area. In fact, many larger employers maintain in-house training departments. This system has worked relatively well, but employers report that too much time is spent on remedial education. Increasingly employers are asking that prospective employees already possess specific skill. This development has shifted some of the burden for learning and remediation back on the individual and community institutions. Continuous learning can take place in many different forms. Individuals may access self-help publications, computer-based training, Web-based training and formal classroom instruction. In 1997, according to surveys and telephone interviews conducted by Laura O'Rear for the Austin Business Journal, approximately 140,000 students were trained by Travis County's 25 largest computer-training facilities. During the current decade, the deficiency most noted in the skills of dislocated workers accessing the Travis County JTPA system has been a lack of basic computer skills. At this time there is no formal process for identifying the availability or adequacy of opportunities for skills development. Anecdotal evidence indicates that opportunities for skill development are not available or adequate. OUTCOME: Increased preparation and integration into the workforce of population groups that historically have been excluded In Job Availability and Welfare Reform, the Texas Legislative Council (TLC) examined whether or not the skills of the unemployed matched the available jobs. The results can aid in developing programs that meet the needs of both the unemployed and employers. A successful workforce model produces workers trained for jobs that exist within our communities. Figure 4.3.1, derived from the TLC study, provides a picture of the situation for Central Texas, an area that includes Austin/Travis County. The graph shows the average unemployment and job availability in six-month increments for three groups: short-term training (STT), moderate-term training (MTT) and associate degree or post-secondary vocational training (AVT). STT requires training of up to one month, MTT requires training of up to one year and AVT requires an associate degree or vocational training. The graph shows that the fluctuation in available jobs and available labor declines as the level of training increases. Additionally, it shows that there are consistently more jobs available for workers with AVT level training than there are workers available. In the other two groups there is generally a consistent supply of labor to meet demand, but demand for individuals with short-term training fluctuates the most. The study concludes that successful integration of TANF clients into the job markets requires careful targeting of growth markets. While the TLC aimed to help identify means for making TANF recipients self-sufficient, the findings can be applied to the entire labor force. All workforce programs should involve both employers and employees. A well-designed program will train clients for specific jobs with career growth potential and thus lead to greater self-sufficiency. Figure 4.3.1
Literacy and EducationLiteracy and education are directly related to income level. Although the U.S. is the wealthiest country in the world, it has one of the highest illiteracy rates in the world. Approximately one in four adults in Texas is functionally illiterate. According to a 1994 Texas survey, those who are unemployed, poor, low-income, or on public assistance have significantly lower rates of literacy and levels of education than those who are employed and self-sufficient. Furthermore, household income increases $10,000 per year for each level of literacy attained. These findings suggest that investment in literacy and education is essential to raise community living standards. A high school education is the most basic requirement for employment, as well as a prerequisite to post-secondary education. In Austin/Travis County, two school districts had dropout rates that were higher than the state average of 1.8%: AISD (2.0%) and Del Valle (1.9%). Three school districts had TAAS passing rates lower than the state average of 73.2% - AISD (65.5%), Del Valle (73.0%) and Manor (68.8%). Workforce development strategies need to include training those individuals who have already dropped out as well as focusing on improving graduation rates and overall achievement. Investing in literacy and education can only strengthen our workforce. Higher levels of education mean greater levels of economic self-sufficiency. While this investment requires more time and resources it is a long-term investment that will result in a brighter and richer future for all. Economic DisparityAs noted in a recent report to the Greater Austin Chamber of Commerce, "...economic opportunity -- the access to education, a good job, and a better life -- is fundamental to quality of life, and a basic need for all." While Travis County boasts an unemployment rate of 2.9% for August 1998, not everyone is sharing in this prosperity. The following chart shows the estimated number of people living in poverty, as well as the percentage of the population that is considered poor. Figure 4.3.2 Poverty in Austin/Travis County
The percentage of people living in poverty in the Austin-San Marcos MSA in 1996 was 14.7%; the percentage for Texas as a whole was 18.1%. Despite rapid growth, the poverty rate has remained relatively stable. Indeed, the poverty rate in 1996 was only 0.6% lower than in 1989, during the economic "dark days." The most recent breakdown of unemployment information by ethnicity (January 1998) showed the highest unemployment rates among racial minorities: African-Americans (7.5% for men and 5.7% for women); Asian women (5.2%); and Hispanic men (4.2%). The percent of racial minorities in the working age population will increase, as the following table indicates. Figure 4.3.3 Travis Co. Population Breakdown by Age and Race for 1996
In addition to racial disparities, there are also gender inequalities. On average, women earn only $0.74 for every $1.00 men earn, and eight out of every ten working women earn less than $25,000 a year. Furthermore, more and more women are entering the workforce today. It is estimated that by the year 2000, 70% of all women with school-age children will be working outside the home. To help all the people reach their true potential, it is essential to address gender and racial disparities, especially since groups who have been underrepresented will occupy a larger role in the future work force. Low-Income Individuals and FamiliesAnother challenge is providing employment and training opportunities that will raise community members out of poverty. Low-income includes those who are living at or below 200% of poverty: a maximum annual gross income of $16,100 for an individual or $32,900 for a family of four. For comparison, a family of four with both parents working full time at minimum wage would have an annual income of $21,424. Of course, a job loss, medical problem, or other family crisis can quickly send many families who have escaped poverty back its grip. No unduplicated count of low-income individuals currently exists. However, there are some indications of the magnitude of the problem. As mentioned previously, in 1996, there were 95,699 people in Austin/Travis County living at or below 100% of poverty. In the following year, 1997, on average, 19,965 households or 47,954 individuals received food stamps each month in Travis County. Another indicator shows the number of persons receiving rent and utility assistance during a three-year period in Austin/Travis County (see Figure 4.3.4). Figure 4.3.4 Number of Persons Receiving Assistance (Unduplicated Count)
A final indicator is found in the public schools. Austin Independent School District (AISD), the largest district in the area, reported that 49.8% of the school population of 37,237 children qualified as low-income. The following chart shows the percentage of poor children in local public schools districts and recent changes. Figure 4.3.5 Travis County Public Schools, Total Enrollment and Low Income Enrollment with Change from 1991-92 to 1995-96
Source: Texas Education Agency and Austin Travis County Health and Human Services. Although these numbers do not pinpoint the number of low income in the area, they do offer a basic grasp of the problem's dimensions. HomelessThere are approximately 6,000 homeless individuals living in Austin/Travis County, comprised of some 4,300 single adults, 200 unaccompanied youth, and 1,200 families. Homeless persons need assistance in a number of areas to achieve self-sufficiency. Those who have been homeless for longer periods of time find gainful employment especially difficult to attain. Many of these individuals lack even the most basic amenities and skills required to enter into job training programs. Persons living on the streets and in camps need access to showers, laundry and appropriate attire before they can take advantage of "mainstream" employment programs. Job readiness is an essential component to helping homeless persons obtain secure employment and escape the cycle of homelessness. A recent survey of homeless men found that 40% attributed their situation to a lack of work. Many of these individuals have limited job skills and seek employment through area "day labor" programs. A survey found job seekers use the corner because they can get jobs that do not require experience or specific skills. Eighty percent of those surveyed would prefer to have permanent jobs. Lack of affordable childcare significantly impedes the ability of homeless parents to gain employment and exit homelessness. Approximately 95% of homeless families need affordable childcare. In March of 1998, publicly subsidized childcare served 2,200 children in Austin/ Travis County, but there were 2,000 on the waiting list. Persons with DisabilitiesPersons with disabilities may be the most under-served of those populations needing workforce services. According to a U.S. Census Bureau report, one in five Americans, or approximately 54 million people, reported having some level of disability. Approximately one in ten Americans, or 26 million people, reported having a severe disability. Figure 4.3.6 Employment Data, Persons with Disabilities
Source: National Council on Disability & the President's Committee on Employment of People with Disabilities. The statistics reflect progress, as shown by the statistically significant increase in the employment rate of people with severe disabilities between 1991 and 1994. Yet much remains to be done. Workforce development efforts should continue to address the training needs of this group. The community must work more diligently to break down barriers that impede employment of individuals with disabilities. Older IndividualsAlthough the population of Texas continues to be relatively youthful, the Capital Area population, like that of the entire nation, is undergoing a dramatic change in age. Advances in medical science, combined with the maturing of the Baby Boomers, are changing the makeup of our population, as well as the reality of what it means to be "old." A recent AARP poll indicated that eight of ten baby boomers want to work throughout their retirement years, compared to just 12 percent of those over 65 who are currently employed. This simultaneous aging of the work force and trend away from early retirement will create an entirely different work world in which almost one in four Americans will be 65 or older and financially unable or unwilling to withdraw from the work force of tomorrow. Of approximately 18 million people in Texas, about 14 percent (2.5 million) are at least 60 years of age. Moreover, the elderly are increasing at a significantly faster pace than the general population. As our citizenry ages, the number of older individuals living in poverty is also increasing. In 1991, 5.9 million persons, or 11. 4 percent of the population age 55+ lived at or below the federal poverty level. At the same time, the U.S. Census Bureau reported a growing income inequality among the older population. Income for the lowest 20 percent of those 55 or older decreased, particularly for ethnic minority groups, while the wealth of upper-income seniors rose decisively. In Austin, of the almost 90,000 fifty-five and older population, approximately 12 percent live below the poverty level. The aging of our population and the increasing poverty among older individuals pose a tremendous challenge. If our nation is to remain globally competitive and meet the changing needs of a high performance workplace, we must make full use of the talents, skills, and abilities of our older population. Additional Populations with Special NeedsIn addition to the previous groups, other potential workers require assistance in overcoming special barriers to self-sufficiency. These groups include teenage parents, youths that are not in school or employed, non-English speakers, veterans, and ex-offenders. Perhaps the most important of these groups are teenage parents. Austin/Travis County continues to have a high rate of teenage births. Programs must exist to support teenage parents in completing school and moving into the workforce. Otherwise, these children and their children will be condemned to lives in which their full potential cannot be realized. The following tables indicate the percentage of participants entering employment from various programs serving targeted population groups and reflect their effectiveness: Figure 4.3.7 Travis County Participants Entering Employment in Temporary Assistance to Needy Families and Food Stamps Employment and Training, FY96
Figure 4.3.8 Travis County Participants Entering Employment in JTPA, PY97
OUTCOME: Increased number of persons receiving job placement and support services Figure 4.3.9 Percent of Texas Workforce Commission Customers Entering Employment After Service, Austin MSA Source: Texas Workforce Commission. Figure 4.3.10 Percent of Texas Workforce Commission Customers Entering Employment After Service, Texas
The Capital of Texas Workforce Centers are the primary source of job placement services in Travis County. The Centers serve over 40,000 job seekers every year. Any conclusions drawn from the above data should be supported by further research. These numbers represent only unduplicated individuals who have gotten a job after receiving specific employment services. With the trend toward more self-help services such as self-referral through Internet job banks, more people may be obtaining work than the data indicate. OUTCOME: Increased awareness and response to the impacts of welfare reform on the workforce Other than homeless adults, welfare recipients are probably the most challenging population with regard to workforce development. They have many barriers to employment. According to the Texas Department of Human Services (TDHS), as of June, 1998 there were an estimated 3,346 households, or 8,397 individuals receiving TANF in Austin/Travis County. The majority of this population consists of single women with one to two children, and they are primarily Hispanic (42%) and African-American (40%). Most TANF recipients have limited education and little work experience. A snapshot of the population with regards to level of education and work history can be seen in the following cart: Figure 4.3.11 Level of Education and Work History for TANF Caretakers, Austin/Travis County, June 1998
Note: The total number of TANF caretakers used to calculate the percentages for level of education and work history was 3,346. However, data was not available for all caretakers, thus total number of caretakers varies in level of education and work history. All numbers and percentages are rough estimates only. Source: Texas Department of Human Services. Welfare recipients need remedial education, basic skills training, literacy tutoring, job training, and job placement services. However, to participate in employment programs, they also need "wraparound" support services including childcare, health care, transportation, housing, and life skills training for a start. Given their limited work history, these individuals may lack a basic understanding of job responsibilities, such as proper attire, and promptness, for example. What seems second nature to those with a regular job may be completely foreign to those who have had little if any work experience. Currently, TANF recipients have an immediate opportunity to enter the workforce through the Work First Program (CHOICES) if they are age 20 and above and have completed the eighth grade. Teen parents and individuals less than 20 years of age are also targeted for assistance through enrollment in either a regular high school setting or GED classes. All TANF recipients, whether exempt or non-exempt, are subject to the time limits set forth under Texas HB 1863 and the recently passed federal Welfare Reform Act. Under the federal act, the caretaker (if not exempt for various hardship reasons) must participate in "work or work related activities" for a minimum of 20 hours per week. For two parent families, the total is 35-55 hours per week. Participation rates are mandated for states by law at 30% for all families for FFY 1998 (October 1, 1997-September 30, 1998) and 75% for two-parent families for FFY 98. For FFY 1999 (October 1, 1998-September 30, 1999) the all family requirement increases to 35% and the two-parent requirement to 90%. Figure 4.3.12 Participation Rates in the Temporary Assistance to Needy Families Employment Program, Travis County, May 1998
In this era of welfare reform, local communities must identify the impact of those who are dropped from state welfare rolls, although the services themselves are not provided on the local level. OUTCOME: Reduced economic disparity that exists between population groups in the community Many individuals and families are not sharing in our community's overall economic prosperity. A significant segment of our population does not have access to the skills and business opportunities that have provided prosperity for the community as a whole. The workforce development system needs to coordinate its efforts with those of other entities such as the city, county, Community Action Network, and economic development agencies to reduce the economic disparity that exists between population groups in the community and to ensure that the door is opened for those who have so far been locked out of Austin's recent revival. Self-sufficiency and Living WageIn considering workforce development, an important issue is what type of jobs will allow individuals and families to achieve self-sufficiency. Many jobs are part-time, pay minimum wage, or don't offer benefits such as health care. While these jobs may meet the needs of secondary and post-secondary students, or others who have additional means of support, they do not lead to self-sufficiency. If the goal is to overcome the need for public subsidies, then the jobs created must pay a livable wage. What exactly is a "livable wage" is a matter subject to debate. According to Dr. Christopher King and the staff of the Center for the Study of Human Resources at the University of Texas at Austin, one person working full-time earning a wage of $12.44 per hour or $25,875 per year (taxes not included) is the minimum necessary to attain self-sufficiency for a family of four. On the other hand, Dr. Diana Pearce of Wider Opportunities for Women, Inc. based in Washington D.C. uses a different self-sufficiency model. It estimates what it actually costs to live in a specific region without relying on public or private subsidies. This model includes the cost of housing, child care, food, transportation, and medical care, as well as accounting for taxes, an Earned Income Tax Credit, and a Child Care Tax Credit, and miscellaneous expenses. Each income estimate takes into account family size, family composition, and age of children. According to this model, the self-sufficiency standard for one adult with one infant and one preschooler living in the Austin-San Marcos MSA is $13.56 per hour or $2,385.99 per month. For two adults plus one infant and one preschooler, the hourly self-sufficiency wage is $7.80 or $2,746.85 per month for a two-income household. OUTCOME: Increased pool of workforce applicants with basic academic, computer, and job skills Employers have expressed their deep concern over the growing number of job applicants who lack the basic job skills. The identified skills are the "4R's" - reading, writing, math, and workforce readiness (i.e., personal responsibility, teamwork, communications, problem solving, etc.). These skills are virtually identical to those defined in the SCANS (Secretary's Commission on Achieving Necessary Skills) report. The deficiency in basic skills extends beyond high school dropouts and is common among high school and even college graduates. In addition, many job applicants presumed to be competent in the basic skills often are unable to apply them to real-work situations. These skills deficiencies result in higher recruiting costs, lower productivity and reduced quality. According to Figures 4.3.13 and 4.3.14, the number of residents receiving ESL, Adult Basic Education and GED programs was 7,447 in 1997. This figure does not include classes offered in churches, colleges, universities and other non-profit agencies classified as non-respondents to the Capacity survey. Figure 4.3.13 Number of Participants in ESL and Adult Basic Education Served By All School Districts in Travis County
Source: Community Education. Figure 4.3.14 Number of Unduplicated Clients Served During the Most Recent 12 Months, Travis County
These numbers may provide a glimpse of the problem, but are not definitive. Future efforts should focus on increasing the number of training slots available and on measuring the success of those who complete the various programs. D. OTHER KEY OUTCOMES AND STATUSThe following outcomes were not evaluated in this assessment:
E. TERMS, CONCEPTS AND DEFINITIONSAFDC Aid to Families with Dependent Children, TANF's predecessor welfare program At-Risk In-school youth who are at risk of dropping out of school as defined by the Texas Education Agency CAWDB Capital Area Workforce Development Board City City of Austin County Travis County ES Employment Service ESL English as a Second Language FSE&T Food Stamp Employment and Training, provides work first services for able-bodied food stamp recipients GED General Educational Development certificate JTPA Job Training Partnership Act, provides employment and training services for economically disadvantaged youth and adults and dislocated workers LMI Labor Market Information LWDA Local Workforce Development Area (interchangeable w/ WDA - Workforce Development Area) MSA Metropolitan Statistical Area SCANS Secretary's Commission on Achieving Necessary Skills, national employer led task force that communicated education reform recommendations to the federal government TANF Temporary Aid to Needy Families; created by the Personal Responsibility and Work Opportunities Reform Act; requires work as a requirement for receiving welfare and limits the time it may be received TDHS Texas Department of Human Services TWC Texas Workforce Commission Work First Texas' welfare reform program design that stresses employment for able-bodied adults |