Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
1 of 23
Illinois Institute for Rural Affairs2018
Rural Economic Development Conference
Springfield, IllinoisMarch 8, 2018
Jason KellerFederal Reserve Bank of Chicago
2 of 23
Agenda• Standard Disclaimer• Introduction• Defining Workforce Development• What is Investing in Americas Workforce • Challenges/Strategies/Opportunities• Investment, Measurement and Evaluation• Defining W.I.O.A and the Response• Linking Workforce Development to CRA• Conclusion• Questions
3 of 23
Standard Disclaimer• The views expressed in this presentation are
those of the author and do not necessarily represent those of the Federal Reserve Bank of Chicago or the Federal Reserve System
• This presentation and the information presented herein is intended for informational use and is not legal advice
4 of 23
Introduction• Community Development and Policy Studies (CDPS) is a
division of the Economic Research Department of the Federal Reserve Bank of Chicago that promotes fair access to credit and financial services and researches issues that impact low- and moderate-income (LMI) communities
• The Federal Reserve’s 7th District includes all of Iowa, and portions of Illinois, Indiana, Michigan, and Wisconsin
• Responsibilities are to: – Research, Convene, and Connect
5 of 23
Defining Workforce DevelopmentThe workforce development system trains, educates, and provides social services to working-age individuals to enable them to succeed in the labor force and, at the same time, meet employers’ demands for skills and talent
Source: Engaging Workforce Development – A Framework for Meeting CRA Obligations (2017)
6 of 23
What is the Investing in America’s Workforce Initiative?
• Federal Reserve System Collaboration– John J. Heldrich Center for Workforce Development– Ray Marshall Center for the Study of Human Resources– W.E. Upjohn Institute for Employment Research
• Explore regional aspects of improving workforce outcomes and investments
– The Research
• National Conference in Austin, TX– October 2017
• Book launch (2018)• Targeted outreach to bankers, examiners, practitioners,
government officials, academics, others7 of 23
The Research 50Listening Sessions
32States
1,000Workforce
Development Leaders8 of 23
Current Challenges• Skills gap
• Non-skill related barriers– Addiction– Incarceration– Childcare Costs– Transportation– Housing
• Technological advancement and automation’s impact on employer demands
• Quality of available jobs impeding economic mobility
9 of 23
Promising Strategies• Better alignment of workforce and economic development
efforts using sector strategies– Intermediaries to broker relationships between employers
and training providers• Apprenticeships and other work-based training models• Increased employer training for incumbent workers to foster
career pathways and create access to entry-level jobs• Increased coordination among providers and with funders• Changes in employer behavior that improve job access and
quality while contributing to business performance goals
10 of 23
Opportunities for Investment• Invest in core programs and services that:
– Directly connect workers to jobs• Direct training programs• Career and technical education• Employer partnerships with local community colleges
– Invest in intermediaries that connect workers to jobs– Invest in early childhood education– Invest in community infrastructure including
transportation systems and affordable housing– Invest in comprehensive support services – Invest in efforts to increase job access and quality
• Entrepreneurship• Small business in LMI communities• Social enterprises
11 of 23
How to Make Workforce Development More Investable
• Classify workers as assets not expenses• Maximize efficiency of existing funding streams while
exploring potential new resources• Offer financial products that allow organizations to
increase capacity and scale• Address funding needs using outcomes-based funding
models• Use philanthropic capital to promote innovation,
collaboration, and capacity building• Create financial intermediaries
12 of 23
Impact Measurement & Evaluation
• Measure both short-term and long-term results
• Coordinate data and standardize metrics across entities
• Rethink return on investment
13 of 23
What is W.I.O.A. and the Response?
• The Workforce Innovation and Opportunity Act (W.I.O.A.) was enacted in July 2014 (with bipartisan support) and is the primary federal legislation that governs workforce development policy. First legislative reform of the public workforce system in 15 years
• WIOA is designed to strengthen and improve our nation’s public workforce system and help get Americans, including youth and those with significant barriers to employment, into high-quality jobs and careers and help employers hire and retain skilled workers:
– State-level and regional planning– Disadvantaged-population focus– Partnership and relationship building– Data and performance metrics– Innovation
• In sum, WIOA is designed to train, educate, and provide social services to working age individuals to enable them to succeed in the labor force
• Intent is to meet employers’ demand for quality talentSource: https://www.doleta.gov/wioa/ 14 of 23
Linking Workforce Development to CRA
• Federal law passed in 1977
• Encourages banks to meet the credit needs of the communities they’re licensed to serve
• Including low- and moderate-income neighborhoods
• Consistent with safe and sound practices
15 of 23
Linking Workforce Development to CRA
• Affordable housing
• Activities that revitalize or stabilize low- or moderate-income people or areas
• Activities that promote economic development
• Community services
16 of 23
Linking Workforce Development to CRA
• CRA questions and answers (Q&As)• Guidance on the interpretation and application of the CRA regulations
(July 2016):• Q&As §____.12(g)-1: Concerns the definition of community
development. The agencies revised it to clarify that qualified community development activities include workforce development or job training programs for LMI or unemployed persons
• Q&As §____.12(t)-4: Provides examples of qualified investments. The agencies revised it to expand the examples to include workforce development or job training programs for LMI or unemployed persons
Source: https://www.federalregister.gov/documents/2016/07/25/2016-16693/community-reinvestment-act-interagency-questions-and-answers-regarding-community-reinvestment
17 of 23
Linking Workforce Development to CRA• How can banks, most of which will be
intermediate small banks* and large banks**, engage in workforce development?• Lending to community development financial institutions
(CDFIs), community development corporations (CDCs), or community-based organizations (CBOs) that engage in work-force development efforts
• Providing financial support through an investment, equity equivalent, or grant
• Offering learn-and-earn opportunities• Serving on the board of a workforce development entity,
volunteering at an entity, or offering pro bono services
*/**Assets greater than $313 mil and $1.252 bil as of 1/1/2018
18 of 23
Linking Workforce Development to CRA
• How can banks engage in workforce development initiatives that serve the needs of LMI individuals?• Offering financial education to clients of
workforce development entities• Providing meeting space or other administrative
support• Mentoring/coaching on resume writing,
interviewing, professional skills, and career planning
• Leveraging existing sector strategies
19 of 23
Linking Workforce Development to CRA
• What are the benefits of banks partnering with key players in workforce development?• Improving financial stability of low-to moderate-
income individuals by increasing their access to quality jobs
• Growing talent pipeline in communities• Expanding customer base• Strengthening financial acumen of local
communities• Deepening understanding of local business’ needs• Building social capital and becoming good
corporate citizens20 of 23
Linking Workforce Development to CRA
• How do I identify opportunities in workforce development?• Understand the assessment/market area:
• Key industry clusters• Labor market information• Regional economic development areas
• Identify local actors/partners:• Workforce development boards• State agencies• Universities/community colleges• Nonprofits
21 of 23
Summary
• The workforce development landscape is evolving• Opportunities for banks to engage in workforce
development efforts in both urban and rural markets are expanding
• Bank, civic, as well as agency leaders may need coaching on how to engage with local workforce development experts/practitioners
• Tools exist to help build CRA-related capacity• Engaging Workforce Development: A Framework for
Meeting CRA Obligations• Center for Workforce and Economic Opportunity
• Community development offices are resources
22 of 23
Questions?
Jason KellerEconomic Development DirectorCommunity Development and Policy StudiesFederal Reserve Bank of Chicago230 S. LaSalle StreetChicago, IL [email protected](312) 322-6036 (o)(312) 520-3219 (c)
23 of 23