RD16 - Virginia Board of Workforce Development 2013-2014 Annual Report

Executive Summary:
I am pleased to convey to you the Annual Report of the Virginia Board of Workforce Development.

You will see that we are once again focusing our results on Virginia’s Workforce System Report Card as a framework. As you know, our new brand is EleVAte Virginia: Skills for Jobs and Business Growth. You enthusiastically kicked off the month of October 2014 as EleVAte Virginia month in the Commonwealth.

The Board’s theme is making our human capital our most valuable natural resource and the key to growing our economy and our prosperity. The focus of my term as Chair has been around these key points:

Workforce Development is the fourth leg of the stool for Virginia’s economic development

• For Virginia to attract new businesses, outside investments and to keep and grow companies organically, we must have a balance of essential components of economic development.

• Of course the state must have the right infrastructure, the right tax and regulatory environment and an attractive quality of life for employees.

• But in today’s economy, a well-trained, prepared and capable workforce is the most important element for new and existing employers.

Virginia is leading the nation in turning our Workforce Development system into one that is more focused on the needs of employers—Supply Chain Approach

• We are changing who we think of as the customers of our workforce development system.

• Yes, the unemployed, displaced workers, youth and other individuals will always be an essential focus.

• But, now we also see employers as key customers, driving content and focus areas.

• We must move to a Supply Chain Approach that is demand-driven and employer-oriented.

• Our workforce systems needs to deliver a supply of human capital with in-demand skills and credentials.

• From K-12 to higher education to workforce training; all elements of the workforce system will be focused on developing a talent pipeline.

• 24 programs across 8 state agencies will have shared values, shared ownership and shared benefit of a system that will operate at the speed of business.

• Over $360 million dollars is spent annually on workforce programs and we will work to ensure the system is as efficient as possible and promote collaboration and innovation.

A new brand and a new focus for Virginia’s Workforce Development System

• “eleVAte Virginia” is the new brand for Virginia’s Workforce System.

• It is intended to be an eco-system; a network of business, education and workforce development partners committed to elevating Virginia’s economic vitality by connecting Virginians to the skills and credentials that lead to jobs and lifelong career progression, and businesses to regional solutions to ensure a skilled and ready workforce today and in the future.

• We connect public and private stakeholders, resources and funding that gives “eleVAte Virginia” the reach to deliver customized workforce and education solutions that transform Virginia’s regions, businesses and individuals.

• “eleVAte Virginia” was selected as the brand name for the broader focus on workforce, education and economic development. It is an inspirational brand name that has resonance with all target audiences.

The tagline is “Skills for Jobs and Business Growth”, as “skills” is the common thread woven through workforce and education programs and initiatives that lead to jobs for residents and a workforce that helps businesses grow and thrive.

Filling the skills gap and focusing our efforts – The jobs coming in the next 10 years will shape our focus

• We expect 687K job openings in the next five years, with 452K being replacement jobs, leaving 235K as net new jobs.

• Of these 235K net new jobs, the top five categories are:

Healthcare – 30K, Office/Admin – 23K, Computer/Math – 21K, Sales – 20K, Construction – 18K

• Most of these jobs do not require four year degrees, but they do require post-secondary education and training—these are the middle skills jobs that require more attention.

• The public needs to be informed of the opportunities for these middle skills jobs that provide attractive wages and plentiful employment.

I trust that you will find this report informative and encouraging, as we continue to strive for an increase in middle skills jobs with a living wage for all Virginians.

Respectfully submitted,

R. Danny Vargas