Embed Size (px)
Citation preview
Commissioner’s Report Regarding the Subsidized Training and
Employment (Step Up) Program as required by Public Act #121
February 2013
Submitted by Commissioner Sharon M. Palmer
CT State Department of Labor
Commissioner’s Report Regarding the Subsidized Training and
Employment (Step Up) Program
Table of Contents
Background Page 1 Program Eligibility Page 1 Executive Summary Page 2 Step Up Program Progress Overview Page 5 Industry Participants – Present and Future Page 7 Education and Outreach Strategies Page 10 Conclusion Page 12
Attachments Newspaper Articles
Public Outreach Materials Flyers
Post Cards Fact Sheet
Web Banners Promotional Banner
Web Button E‐mail Newsletter
Press Releases
This is the first of the required STEP‐UP bi‐annual reports beginning June 30 and ending
December 31, 2012. Future reports will be prepared and delivered every six months.
Acknowledgements
The state’s Step Up program has benefited from the work of many dedicated individuals from the Department of Labor’s
Office of Employment and Training, Office of Workforce Competitiveness, Communications, Veterans’ Services,
Workforce Investment Act (WIA) program, the agency’s legal and legislative teams, as well as our
Workforce Investment Board partners.
I would also like to acknowledge the following people for their individual contributions to this document.
Anita Cox
Christopher Caruso Joseph Criscuolo
Muhammodu Giwa Marisa Morello
Art Perry Mark Polzella Nancy Steffens
Respectfully submitted,
Sharon M. Palmer Commissioner
Connecticut Department of Labor
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 1
Background Growing Connecticut Jobs As part of Public Act #11‐1 (the result of Connecticut’s October Special Session that focused on job creation) and later amended by Public Act #12‐1 during a June Special Session that expanded the program to include a veterans’ employment component, the Subsidized Training and Employment Program (Step Up) places an emphasis on helping small business to expand, providing jobs to unemployed workers, and boosting the state’s economy. The statewide bipartisan initiative, administered by the Connecticut Department of Labor and the state’s five Workforce Investment Boards, has been highly successful in growing and retaining high‐quality jobs. In Connecticut, 94% of the state’s companies employ less than 100 workers, yet these same businesses employ about 60% of the workforce. With this in mind, the Governor and the Legislature developed a program that primarily focused on the small business community. Step Up offers two programs: the Small Business Wage Subsidy Program and the Small Manufacturer Training Grant Program. Each program offers employer incentives to hire new employees and create jobs. State bond money for the program is $20 million over two years – which is split equally between the two programs. Eligible companies, defined as a small business or manufacturer with not more than 100 employees can apply for one program for each new hire – an employer cannot use multiple programs for one new hire. There is no limit regarding company size under the program focused on employing veterans.
Program Eligibility Small Business Wage Subsidy Program Eligibility
Guidelines for Workers • Unemployed prior to hire • Resident of municipality that has an unemployment rate equal to or higher than the state rate as of September 1, 2011, or resides in a town with a population of 80,000 or more
• Adjusted family income equal to or less than 250% of the federal poverty level • New employee does not mean a person employed on a temporary or seasonal basis by a retailer
Guidelines for Employers • Small business or manufacturer with not more than 100 full‐time workers (no size limit under the Unemployed Armed Forces Member Subsidized Training and Employment Program)
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 2
• Registered to conduct business for at least 12 months and has operations in Connecticut • In good standing with the payment of state and local taxes Subsidized Wage Program Incentives A wage subsidy for new hires (up to $20 per hour and can be reimbursed up to $12,000 – excludes benefits) is provided over a 180‐day period. The subsidy, which begins at 100 percent the first month, cascades down on subsequent months following this formula:
Month 1 – 100% Month 2 – 75% Month 3 – 75% Month 4 – 50% Month 5 – 50% Month 6 – 25%
Small Manufacturer Training Grant Program Eligibility
Guidelines for Workers • Unemployed prior to hire
Guidelines for Employers • Small manufacturer with not more than 100 full‐time workers • Has been registered to conduct business for at least 12 months and has operations in CT • Training must take place at the business site • Business must be in good standing with the payment of state and local taxes
Small Manufacturer Training Grant Program Incentives Training grants up to $12,500 for new hire for six months. Training must be held on‐site and the grant can also be used to subsidize wages, although it cannot exceed salary. The grant, which provides $2,500 the first month, cascades down on subsequent months following this formula:
Month 1 ‐ up to $2,500
Month 2 ‐ up to $2,400 Month 3 ‐ up to $2,200
Month 4 ‐ up to $2,000 Month 5 ‐ up to $1,800 Month 6 ‐ up to $1,600
The Step Up program was expanded in June 2012 to include the Unemployed Armed Forces Member Subsidized Training and Employment Program. This program, similar to the Small Business Wage Subsidy program, is available to eligible employers of any size that hire an unemployed veteran. Veterans must have been a member of the Armed Forces or any reserve component of these armed forces, or a state National Guard; called to active service in support of Operation Enduring Freedom (Afghanistan) or military operations against Iraq; and
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 3
honorably discharged after serving at least 90 days in a combat zone, or earlier if the individual was separated from service due to a service‐connected disability. An additional $10 million in state funding was approved by the State Bond Commission for this portion of the program. The first biannual report for the Unemployed Armed Forces Member Subsidized Training and Employment program is due July 15 starting in 2013. Therefore, data for this program is not represented here. This report provides Step Up data for the Small Business Wage Subsidy Program and the Small Manufacturer Training Grant Program from program from February 12, 2012 through January 14, 2013. This includes available data on:
1. The number of small business participants in the Step Up Program and the general categories of these businesses.
2. The number of small manufacturers that participated in the Step Up Program and the general categories of these manufacturers.
3. The number of individuals that received employment as a result of Step Up. 4. The most recent estimate of the number of Step Up jobs created or maintained.
Executive Summary
Step Up is achieving what it was intended to do – getting unemployed people in Connecticut back to work in jobs that offer good paying positions and helping employers grow their workforce. Although not long in existence, the program has served as an important economic stimulus. Of the 1,102 individuals hired, 612 of those were reported by the hiring companies as new jobs created specifically as a result of Step Up program incentives. This represents a 55% job creation rate directly attributable to the Step Up program. With an average wage of $14.23 an hour, positions include Project Engineers, Account and Production Managers, Assembly Supervisors, CNC Operators, Graphic Designers, Welders, Tool Makers, Press Operators, Process Engineers, Operations Directors, Bookkeepers, Accounting, Masons, Glaziers, Engine Builders, Insurance Agents, Dispatchers, and Assistant Solar Installers. Currently, approximately 80 percent of those hired through the program continue to be employed at the companies that received the subsidies and 245 employees have completed six months of work and are no longer subsidized. As a result of its early successes, the program has been extended for an additional year, to June 2014.
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 4
Step Up At a Glance
Number of Small Business Participants 206 Number of Small Manufacturer Participants 171 Total Number of Individuals Hired 1102
Small Manufacturer Hires 601 Small Business Hires 501
Estimated Number of New of Jobs Created 612 Average Hourly Wage $14.23 Average Employer Reimbursement $11,383.15 Year‐to‐Date Payments $4,291,449 Dollars Obligated $10,104,000 (as of 11/2012)
By Regional Workforce Investment Board
North Central
Total Number of Individuals Hired 265
Small Manufacturer Hires 194 Small Business Hires 71
Estimated Number of New of Jobs Created 124 Eastern
Total Number of Individuals Hired 212
Small Manufacturer Hires 109 Small Business Hires 103
Estimated Number of New of Jobs Created 79 South Central
Total Number of Individuals Hired 266
Small Manufacturer Hires 133 Small Business Hires 133
Estimated Number of New of Jobs Created 163 North West
Total Number of Individuals Hired 176
Small Manufacturer Hires 116 Small Business Hires 60
Estimated Number of New of Jobs Created 98
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 5
South West
Total Number of Individuals Hired 183
Small Manufacturer Hires 49 Small Business Hires 134
Estimated Number of New of Jobs Created 148
Step Up Program Progress Overview Note: program participation numbers through November 2012
1. Small Businesses Participants
The following chart provides a snapshot of the types of industries within the Small Business category participating in the Step Up program. The industry types are defined by the North American Industry Classification System (NAICS).
Small Business
0
5
10
15
20
25
30
35
Mot
or V
ehicl
e Par
ts D
ealer
s
Healthca
re S
ervice
s
Profe
ssion
al/Tec
hnica
l Servi
ces
Socia
l Ser
vices
Perso
nal S
ervic
es
Food S
ervic
es
Religiou
s/Civi
c Ser
vices
Whole
saler
s
Admini
strat
ive &
Supp
ort S
ervic
es
Constru
ction
Repair
& Main
tenan
ce
Scientifi
c/Tec
hnical S
ervic
es
Trade
Con
tracto
rs
Industries
# o
f C
om
pa
nie
s
Small Business
0
5
10
15
20
25
30
35
Mot
or V
ehicl
e Par
ts D
ealer
s
Healthca
re S
ervice
s
Profe
ssion
al/Tec
hnica
l Servi
ces
Socia
l Ser
vices
Perso
nal S
ervic
es
Food S
ervic
es
Religiou
s/Civi
c Ser
vices
Whole
saler
s
Admini
strat
ive &
Supp
ort S
ervic
es
Constru
ction
Repair
& Main
tenan
ce
Scientifi
c/Tec
hnical S
ervic
es
Trade
Con
tracto
rs
Industries
# o
f C
om
pa
nie
s
Within the Small Business category, Specialty Trade Contractors represents the largest amount of participating companies with 33. This category includes plumbing, painting, and electrical work involved in building construction. This is followed by companies within the Professional, Scientific, and Technical Services industry with 24 participants. Companies associated with this type of industry include accountant offices, tax preparation services, legal practitioners and engineering services.
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 6
Those rounding out the top industry types in the Small Business category are noted in the following chart: SMALL BUSINESSES: TOP INDUSTRY TYPES Participating In Step Up
# of Firms
Repair and Maintenance Example: Mechanical and electrical repair and maintenance services for automotive vehicles.
14
Construction of Buildings Example: Remodeling general contractors, for‐sale remodelers, remodeling design‐build firms, and remodeling project construction management firms.
14
Administrative & Support Services Example: Establishments primarily engaged in providing a range of day‐to‐day office administrative services, such as financial planning; billing and recordkeeping
12
2. Small Manufacturer Participants The following chart provides a snapshot of the types of industries within the Small Manufacturers category participating in the Step Up program. As with the Small Business category, industry types are defined by the NAICS.
Small Manufacturer
0102030405060
Wood
Pro
duct
s
Paper
Mfg
.
Electri
cal E
quipt.
Food M
fg.
Printin
g
Plastic
s & R
ubbe
r
Chemica
l Mfg
.
Computer
Ele
ctron
ics
Trans
porta
tion
Equipt.
Mac
hiner
y Mfg
.
Misc
/othe
r Mfg
.
Fabric
ated
Met
al Pro
d.
Industries
# o
f C
om
pa
nie
s
Small Manufacturer
0102030405060
Wood
Pro
duct
s
Paper
Mfg
.
Electri
cal E
quipt.
Food M
fg.
Printin
g
Plastic
s & R
ubbe
r
Chemica
l Mfg
.
Computer
Ele
ctron
ics
Trans
porta
tion
Equipt.
Mac
hiner
y Mfg
.
Misc
/othe
r Mfg
.
Fabric
ated
Met
al Pro
d.
Industries
# o
f C
om
pa
nie
s
Within the Small Manufacturer category, Fabricated Metal Products represents the largest amount, with 50 companies in this sector. Types of companies found in this group include machine shops primarily engaged in machining metal and plastic parts, and parts of other composite materials on a job or order basis. The next largest sector was Miscellaneous Manufacturing with 20 companies. Types of companies in this group include sign manufacturing, office supplies manufacturing, and furniture manufacturing.
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 7
Those rounding out the top industry types in the Small Manufacturers category are noted in the following chart: SMALL MANUFACTURERS: TOP INDUSTRY TYPES Participating In Step Up
# of Firms
Machinery Manufacturing Example: Tool and die shops, primarily engaged in manufacturing special tools and fixtures, such as cutting dies and jigs.
18
Transportation Equipment Example: Manufacturers of aircraft engines and engine parts.
10
Computer Electronics Example: Manufacturers of automatic controls and regulators for applications, such as heating, air‐conditioning, refrigeration and appliances.
8
3. Individuals Hired/Receiving Employment An extensive outreach and education campaign, detailed later in this report, has been utilized to connect with employers and job seekers who may be interested in taking part in the Step Up program. Regional Step Up coordinators hired through the state’s five Workforce Investment Boards assist with outreach and promotion of the program, and to process employer and job seeker application forms and determine eligibility. The coordinators also assist employers by locating potential employees suitable for their specific job openings. The coordinators track the number of individuals hired, track the progress of the new employee, and determine if the employee has been retained after the six‐month period. Their goal is to facilitate the hiring process by meeting the workforce needs of the employer, provide quality employment to job seekers, and promote the program through one‐on‐one meetings, public events, media interviews and distribution of program information developed by the Department of Labor. 4. Jobs Created or Maintained Of the 1,102 individuals hired, employers reported that over half of those (612) were needed to fill new jobs created specifically as a result of Step Up program incentives. This represents a 55% job creation rate directly attributable to the Step Up program. The Regional Step Up coordinators track this statistic by entering the employer’s response to the question on the agreement form that all companies must complete: “Would you (employer) have hired this employee without the Step Up incentive?”
Industry Participants – Present and Future The following tables provide an indication of the types of industries currently taking advantage of the Small Business and Small Manufacturer Step Up programs. In addition to a brief description of the specific industry, these tables also include the number of companies, as well as the assigned NAICS code. This information lets us know what companies have found value in Step Up incentives – either the wage subsidy or the training grant – and can be used to
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 8
potentially target further program awareness to these types of businesses, as well as outreach to related industries. Small Business Participants (by Industry Types) Company Description
Specific Industry Code
# of Firms
General Automotive Repair Establishments primarily engaged in providing (1) a wide range of mechanical and electrical repair and maintenance services for automotive vehicles, such as passenger cars, trucks, and vans, and all trailers or (2) engine repair and replacement.
811111 10
Framing Contractors Establishments primarily engaged in structural framing and sheathing using materials other than structural steel or concrete. The work performed may include new work, additions, alterations, maintenance, and repairs.
238130 6
Insurance Agencies and Brokerages ‐ Establishments primarily engaged in acting as agents (i.e., brokers) in selling annuities and insurance policies.
524210 5
New SingleFamily Housing Construction (except for‐sale builders) ‐ General contractor establishments primarily responsible for the entire construction of new single‐family housing, such as single‐family detached houses and town houses or row houses where each housing unit (1) is separated from its neighbors by a ground‐to‐roof wall and (2) has no housing units constructed above or below. Industry includes general contractors responsible for the on‐site assembly of modular and prefabricated houses. Single‐family housing design‐build firms and single‐family construction management firms acting as general contractors are included.
236115 4
Residential Remodelers ‐ Establishments primarily responsible for the remodeling construction (including additions, alterations, reconstruction, maintenance, and repair work) of houses and other residential buildings, single‐family, and multifamily. Included in this industry are remodeling general contractors, for‐sale remodelers, remodeling design‐build firms, and remodeling project construction management firms.
236118 4
Plumbing, Heating, and AirConditioning Contractors ‐ Establishments primarily engaged in installing and servicing plumbing, heating, and air‐conditioning equipment. Contractors in this industry may provide both parts and labor when performing work. The work performed may include new work, additions, alterations, maintenance, and repairs.
238220 4
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 9
Company Description (continued)
Specific Industry Code
# of Firms
All Other Specialty Trade Contractors Establishments primarily engaged in specialized trades (except foundation, structure, and building exterior contractors; building equipment contractors; building finishing contractors; and site preparation contractors). The specialty trade work performed includes new work, additions, alterations, maintenance, and repairs.
238990 4
Other Accounting Services ‐ Establishments (except offices of CPAs) engaged in providing accounting services (except tax return preparation services only or payroll services only). May also provide tax return preparation or payroll services. Accountant (except CPA) offices, bookkeeper offices, and billing offices are included in this industry.
541219 4
Home Health Care Services ‐ Establishments primarily engaged in providing skilled nursing services in the home, along with a range of the following: personal care services; homemaker and companion services; physical therapy; medical social services; medications; medical equipment and supplies; counseling; 24‐hour home care; occupation and vocational therapy; dietary and nutritional services; speech therapy; audiology; and high‐tech care, such as intravenous therapy.
621610 4
Child Day Care Services ‐ Establishments primarily engaged in providing day care of infants or children. Generally care for preschool children, but may care for older children when they are not in school and may also offer pre‐K educational programs.
624410 4
FullService Restaurants (U.S. industry) ‐ Establishments primarily engaged in providing food services to patrons who order and are served while seated (i.e., waiter/waitress service) and pay after eating. May provide this type of food service to patrons in combination with selling alcoholic beverages, providing carryout services, or presenting live non‐theatrical entertainment.
722511 4
Machine Shops – Establishments primarily engaged in machining metal and plastic parts and parts of other composite materials on a job or order basis. Generally machine shop jobs are low volume using machine tools, such as lathes (including computer numerically controlled); automatic screw machines; and machines for boring, grinding, and milling.
332710 19
Precision Turned Product Manufacturing ‐ Establishments known as precision turned manufacturers primarily engaged in machining precision products of all materials on a job or order basis. Generally precision turned product jobs are large volume using machines, such as automatic screw machines, rotary transfer machines, computer numerically controlled (CNC) lathes, or turning centers.
332721 7
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 10
Company Description (continued)
Specific Industry Code
# of Firms
Electroplating, Plating, Polishing, Anodizing, and Coloring Establishments primarily engaged in electro‐plating, plating, anodizing, coloring, buffing, polishing, cleaning, and sandblasting metals and metal products for the trade. Included in this industry are establishments that perform these processes on other materials, such as plastics, in addition to metals.
332813 6
Aircraft Parts and Auxiliary Equipment Manufacturing ‐Establishments primarily engaged in (1) manufacturing aircraft parts or auxiliary equipment (except engines and aircraft fluid power sub‐assemblies) and/or (2) developing and making prototypes of aircraft parts and auxiliary equipment. Auxiliary equipment includes such items as crop dusting apparatus, armament racks, inflight refueling equipment, and external fuel tanks
336413 5
Special Die and Tool, Die Set, Jig, and Fixture Manufacturing ‐ Establishments, known as tool and die shops, primarily engaged in manufacturing special tools and fixtures, such as cutting dies and jigs
336514 4
Sign Manufacturing Establishments primarily engaged in manufacturing signs and related displays of all materials (except printing paper and paperboard signs, notices, displays).
333514 4
Education and Outreach Strategies
The Labor Department and its partners have worked together to develop a comprehensive and successful outreach campaign to educate and inform employers and jobseekers about the opportunities offered under the Step Up programs. Soon after the Step Up program was approved, the agency created a website to help promote the program. The site can easily be found on the homepage of the Labor Department’s site, as well as that of the Office of Workforce Competitiveness. To promote the site in the best way possible, the agency developed a stylized “button” on its website to highlight the program. This graphic design element has been incorporated into all marketing products, including electronic newsletters, media articles, fact sheets, flyers, and employer and jobseeker handouts that can be customized by the regional Step Up coordinators. The agency partners with employers, legislators and the Governor to hold media events to showcase Step Up success stories with the goal of getting out the word via television, newspaper and radio coverage of these events. In many cases, the media events feature newly‐hired employees, as well as the employer – with both providing real‐life testimony regarding how the program has helped create jobs.
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 11
Soon after Step Up began, Governor Malloy held a press event in Bloomfield at Street Fleet Mechanics to help kick‐off the new program and celebrate the fact that 45 employers had already hired new employees under the program. State Sen. Eric Coleman and State Rep. David Baram, who both represent Bloomfield, were also at the event to recognize Street Fleet (the company had hired several employees under Step Up and planning to expand) and to promote the incentives available to employers and the opportunities for jobseekers. This past November, the Governor held a press event at the Bridgeport CTWorks Career Center to announce that the Step Up program had been expanded to include returning military personnel. The new armed forces component, known as the Unemployed Armed Forces Member Subsidized Training and Employment Program, has also been advertised with flyers, web banners, press releases, radio interviews, newspaper articles and through the agency’s Office for Veterans’ Workforce Development. Connecticut’s Senators and Representatives also held press events, at sites that included Middletown, New Haven, North Branford, Norwalk and Watertown, to highlight the program and help inform their communities of the opportunities offered by Step Up. These events have been instrumental in getting out the word about this job creation progrms and the agency looks forward to continuing this important partnership. The agency played an important role in an employer seminar held in the fall of 2012 at the Ansonia Armory. The free event, which attracted more than 185 attendees, highlighted the benefits of Step Up as well as related wage and tax incentives. The Greater Valley Step Up Conference was hosted by Lt. Governor Nancy Wyman along with co‐hosts State Rep. Linda M. Gentile, State Sen. Joseph Crisco and the Valley’s State Delegation. Based on the success of the conference, additional employer events are scheduled for 2013. The following is a partial listing of the successful outreach strategies and materials that have been planned and/or developed to market the Step Up program. (See Attachments section for samples of public education and outreach materials).
Well‐visited website with employer and job seeker inquiry forms, fact sheets, regional coordinator contact information, media articles, press releases, and radio interviews: http://www.ctdol.state.ct.us/OWC/StepUp/StepUp.htm. The site averages more than 800 visits per month
Series of fact sheets and flyers – available in both print and electronic format Promotional “business cards” designed to attract potential employers and jobseekers Electronic newsletters to approx. 10,000 employers and state’s Chambers of Commerce Mailed newsletter to the state’s approx. 95,000 employers Localized press events with area Legislators, Step Up employers and Step Up hires Regional employer informational seminars co‐hosted by State Legislators Outreach articles provided to United Way Infoline 211 and Legislators Interviews with Legislators for local cable TV stations
Connecticut Department of Labor Commissioner’s Report Regarding Step Up Program
Page 12
Periodic press releases and outreach to media, resulting in interviews with local radio and TV stations, and articles in newspapers, business journals and trade publications
Advertising banner and information displayed at job fairs, conferences, media events Outreach and employer meetings by Workforce Investment Board Step Up Regional
Coordinators Presence at job fairs, business events and seminars to promote Step Up, including
Business Expos, Society for Human Resource Managers, and the CT Business and Industry Association
Information session, sponsored by the International Brotherhood of Carpenters; included building trade representatives and industry contractors, allowed the agency to detail the Step Up program
Advertisements in business journals and materials provided at employer events Social media outreach on Face book and Twitter Outreach via the CTWorks Career Centers and Office for Veterans’ Workforce
Development to employers and jobseekers The Labor Department and its partners will continue to actively promote the program and its benefits and plan to continuously improve upon the comprehensive outreach and education campaign that has been developed.
Conclusion As of January 14, 2013, approximately $10,104,000 million has been obligated through the Step Up program in support of the 1,102 participants hired. This has also allowed 377 employers statewide to expand their business with the average employer reimbursement amounting to just over $11,000 per new employee. The program continues to attract new employers, as well as those that have used Step Up for several new hires. Small businesses of 100 employees or fewer are real job creators in Connecticut, employing more than 60 percent of the state’s total workforce. The Step Up Program supports the expansion and growth of small business in our state, and the creation of jobs for unemployed workers by offering wage subsidies and training grants that allow Connecticut to invest in its workforce and the local business community. As additional employers participate in the program, the Labor Department and its workforce partners will continue to place an emphasis on the creation of quality jobs, employer expansion, and the strengthening of Connecticut’s economy.
