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2013 Workforce Training Results Adult Basic Education / English as a Second Language Workforce Training and Education Coordinating Board

2

The percentage of ABE/ESL participants who are an ethnic/racial minority is significantly higher than the percentage of minorities statewide. Non-whites comprised 64 percent of the participants, one percentage point higher than the 63 percent from last year’s report.3

Source: Community and Technical Colleges Administrative Data 2010-11 and 2011 American Community Survey.

Some 58 percent of participants were women, the same percentage as the previous report.

Source: Community and Technical Colleges Administrative Data 2010-11. 3In this report, unless otherwise stated, racial and ethnic minority groups are mutually exclusive; that is, an individual belongs to one group only. The groups include the following: Hispanics of any race (also referred to as Hispanics); non-Hispanic African Americans (also referred to as African Americans); non-Hispanic Asians (also referred to as Asians); non-Hispanic Pacific Islanders (also referred to as Pacific Islanders); non-Hispanic Native Americans and Alaskan Natives (also referred to as Native Americans); non-Hispanic multiracial (also referred to as multiracial); and non-Hispanic whites (also referred to as whites). According to the 2011 U.S. Census Bureau estimates for Washington from the American Community Survey, 72 percent are white; 3 percent are African American; 1 percent are Native American; 7 percent are Asian; 1 percent are Pacific Islander; 4 percent are multiracial; and 12 percent are Hispanic.

16% 15%

1.6%

21%

3%7%

36%

3%7%

0.6%

12%

1% 4%

72%

AfricanAmerican

Asian PacificIslanders

Hispanic NativeAmerican

Other White

Adult Basic Education Participants by Race and EthnicityABE Participants State Population

42%

58%

Men Women

Adult Basic Education Participants by Gender


3

The median age of participants leaving an ABE/ESL program was 30 years old. A quarter of participants were under age 23, while a quarter of the participants were over age 39. Tracking ABE/ESL Progress The Workforce Board routinely measures the performance of our state’s largest workforce programs. As a customer-focused advocate for Washington’s workers and employers, the Workforce Board strives to provide performance accountability, verifying whether worker education and training programs provide a return on investment for participants and taxpayers. The Workforce Training Results report seeks to answer five core questions:

Did participants get the skills they needed? Did participants get a job and how much were they paid? Were employers satisfied with the preparation workers received? Has the program made a difference in the participant’s success? Did participants and the public receive a return on their investment?

Data Comes From State Wage Files The 2013 Workforce Training Results includes information obtained from Employment Security Department wage files in Washington, Idaho, and Oregon, and federal employment records for 2011-12. Net Impact Study Adds More Insight into Program Performance In addition, the report includes a comprehensive Net Impact Study. Conducted every four years, this study provides a head-to-head comparison of participants and non-participants to help answer a central question: How much of a workforce participant’s success in obtaining a job, or a higher wage, is due to the workforce program? By comparing program participants with similar individuals who did not participate in a workforce training program, the Net Impact Study indicates whether employment and earnings gains are due to the workforce program, or if workers could have made this progress on their own. This research also allows for a more detailed analysis as to whether the participant and the public received a return on their investment in the program.


Did ParMuch WTo find omuch thmatchedwage filestates.4 Accordinparticipaquarter apercenta2012. Thmedian alower thadecade, eearnings

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5

Earnings of ABE/ESL Participants To better gauge the financial effectiveness of Washington’s workforce programs, it helps to frame income levels. One common yardstick is the federal poverty level. In 2012, the federal poverty level for one person was $11,170 per year.6 In 2013, ABE/ESL participants were able to support a median 2.4 people at the poverty level—meaning they could support themselves plus one and a half other people. They did not have enough earnings to support themselves, let alone others, at 200 percent of the poverty level (.8 people). Number of People Supported at Poverty Level by Participant Income

Performance Measure

2006 2008 2010 2011 2012 2013

Number of people supported at poverty level

2.7 people

2.9 people

2.8 people

2.6 people

2.5 people

2.4 people

Number of people supported at 200 percent poverty*

0.8 people

0.8 people

0.8 people

0.8 people

0.8 people

0.8 people

*The number of people supported at the 200 percent of poverty level appears to stay the same because of rounding.

ABE/ESL Participants Receiving Benefits from Employers

Performance Measure

2006 2008 2010* 2011 2012* 2013*

Self-Reported Medical Benefits from Employer

44% 44% N/A 38% N/A N/A

Self-Reported Retirement Benefits from Employer

23% 28% N/A 28% N/A N/A

*Due to budget limitations, the Participant Survey was not conducted for the 2010, 2012, or 2013 reports.

6 Poverty levels from 2012 were used in this edition of Workforce Training Results to measure the results of workforce programs on participants observed in 2011-12. The federal poverty level is determined by the Department of Health and Human Services. The level varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs typically define eligibility income limits as some percentage of the federal poverty level.


The nextdata is al

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8

Adult Basic Education Employment by Industry Employment among ABE/ESL participants is heavily concentrated in services, retail trade, and manufacturing industries. In 2013, the percentage of participants employed in services is one percentage point below last year (55 versus 56 percent). Employment in the retail trades and manufacturing has stayed the same.

Industry Group55% Services (see breakout below)16% Retail Trades (see breakout below)11% Manufacturing (see breakout below)

4% Construction4% Natural Resources and Mining3% Transportation, Warehousing and Utilities3% Wholesale Trade2% Financial Services

1.3% Public Administration0.6% Information

Breakout of Services Industry13.0% Administrative and Support and Waste Management and Remediation Services12.6% Health Care

9.6% All Other Services8.0% Social Assistance5.6% Accommodation and Food Services2.9% Education Services2.6% Arts, Entertainment, and Recreation1.2% Professional, Scientific, and Technical Services

Breakout of Retail Trade Industry4.7% Department Stores and Warehouse Clubs4.0% Groceries, Supermarkets & Specialty Foods2.1% All Other Retail1.8% Clothing and Accessories Stores1.3% Gas Stations/Convenience Stores1.2% Motor Vehicle and Accessories Sales1.0% Home furnishings,Garden,Hardware

Breakout of Manufacturing3.8% All Other Manufacturing3.4% Food & Beverage1.7% Transportation Equipment1.0% Fabricated Metal Products0.7% Wood & Paper Products


Source: Mabased on N

RelatioIn 2011, t2009-10.training.

To measemploym

1. H2. H3. A

Asking aproduce not relat Among Asaid theiwas “moslightly locategory

Source: Wo


atches with EmpNorth American

onship of Tthe Workfor. The survey The survey

ure the extement, we ask

How related How importaAre the skills

bout the relmore comped to their j

ABE participr training wderately relaower rates o

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orkforce Board’


ployment Secun Industry Class

Training trce Board suprovided dwas conduc

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was the proant was the t

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of training re

’s Participant Sa


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to Employurveyed ABEata on empcted by telep

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ogram to thetraining in gd useful in t

etween traiation. For exertheless fo

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atisfaction Sur


nt data in thirdm codes.

yment E/ESL particiloyment andphone and w

nt’s educatioquestions:

eir job? getting hiredtheir job?

ning and emxample, somund the skil

ine monthsir job. A furtpared to 20

mployment,

rvey 2011.

d quarter after e

pants who hd participanwas comple

on program

d?

mployment me participa

ls acquired

after leavingher 39 perce

008, participby 3 percen

exiting program

had left theint satisfactioeted by 253

m and trainin

in different ants said thewere useful

g a programent reportedants in 2011

ntage points

m. Industry gro

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ng related to

ways can eir training wl on the job.

m, 15 percend the trainin1 reported s in each

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10

Participants interviewed in 2011 also indicated the training was helpful to them in getting their job. Of those participants, 21 percent indicated their training was an “essential requirement,” another 14 percent indicated it was “very important,” and 17 percent reported it was “moderately important.” Thirteen percent said it was “a little helpful.” Some 33 percent indicated their training was “not important at all” to getting their job. Three out of four participants said the skills they learned in their training program were useful in doing their job. Some 37 percent of participants indicated the skills were “very useful,” 18 percent said “moderately useful,” and 23 percent “a little useful.” The remaining 21 percent of ABE participants who were employed indicated the skills were “not useful at all.” When combining two of the questions about the program’s relationship to the job and about whether the skills acquired were helpful, a small percentage of participants answered negatively to both. Some 19 percent of participants employed the third quarter after exit said the training they received was neither helpful in their job nor related to the job they obtained.

Wages and Employment Results Vary by Population Wage and employment results can vary by gender, race and ethnicity, and disability. Among participants employed during the third quarter after exit, there is a substantial gender gap in labor market outcomes. Female ABE/ESL participant’s employment rate, hours worked, hourly wage, and annual earnings are lower than men’s; in addition the ratio between men’s and women’s employment rates, hours worked, earnings, and wages have decreased since the 2012 report.

Gender Differences in Labor Market Outcomes Among ABE/ESL Students in the Third Quarter After Leaving Program

Women Men Ratio Employment Reported to ESD 46% 50% 92% Median Quarterly Hours Worked 360 423 85% Median Hourly Wage $10.65 $11.79 90% Median Annual Earnings* $15,134 $19,352 78%

Source: Matches with Employment Security Department data. *Earnings/wages expressed in first quarter 2012 dollars in order to account for inflation.


The folloreportedtime jobspercent)

Source: Madata.


owing chart d being emps. Male ABE and also mo

atches with Com


shows the pployed. Also

participantsore likely to

mmunity and T


percentage obroken out s were more be working

Technical Colleg


of men and is the perce

e likely to beg full time (5

ges Administra

women ABEentage of the employed55 percent co

ative Data and

E/ESL particose working(50 percentompared to

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ipants who g that held ft compared o 45 percent

Security Depart

11

full-to 46 ).

tment


Race/EtABE/ESL ethnicityfollowedNative Apercentathe highAfrican Alowest p Median hwages ea($11.25),Islanders Median ahighest ewhites ($

Source: Madata.


thnicity Pprogram gr

y. The highesd by African mericans (3

age with fullest percenta

Americans (5ercentage w

hourly wagearned by tho and slightly

s ($10.39), an

annual earnearnings, at $13,992), Na

atches with Com


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es appear toose with they lower wagnd Native Am

ings follow $19,234, fol

ative Americ

mmunity and T


d different ement rate wa

(47 percent)Of those ABoyment alsog full time (5Native Ametime was w

o follow the e highest emes among wmericans ($

the same pallowed by Hans ($13,134

Technical Colleg


employments found amo), whites andE/ESL partic

o varied acco58 percent), ericans, and hites (40 pe

pattern of employment rwhites ($10.810.31).

attern as fulispanics ($14), and Pacif

ges Administra

t rates whenong Hispanid Pacific Islacipants whoording to rafollowed byPacific Islanrcent).

employmentrates: among80), African A

l time emplo8,836), Africfic Islanders

ative Data and

n comparingics and Asianders (43 pe were workice and ethn

y Hispanics (nders (41 pe

t by race, wig Hispanics Americans (

oyment: Asican Americas ($12,619).

Employment S

g race and ns (54 perceercent) and ing, the

nicity. Asians(55 percent)

ercent). The

th the highe($11.48), As

($10.78), Pac

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s had ),

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DisabilAmong 2the genelabor mathe statewithout disabilitipercent vof the amnearly 70versus $1

Source: Com2010-11. ParticipIn 2011, t2009-10.training.

7 2011 U.S.Profile in t


ity Impac2013 ABE/ESeral populatarket than ote’s Employma disability).es were alsoversus 50 pe

mount earne0 percent fo16,977).

mmunity and T

pant Survthe Workfor. The survey The survey

. Census Bureahe United Stat


cts EmploySL participanion who havther particip

ment Security. This is the p

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Technical Colle

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arnings cent had a dty).7 Participwere less liknt (34 perceobserved intime than pourly wage (out a disabily compared

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can Communi

isability (lespants with dkely to have ent versus 49n the last reparticipants w($10.56 versity, and medto those wit

d Employment S

pants who hd participanwas comple

ity Survey, Tab

ss than the 1isabilities diemploymen9 percent foport. Participwithout a di

sus $11.05) wdian annualthout a disa

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had left theint satisfactioeted by 253

ble S0201 – Se

2.5 percentid less well int reported

or participanpants with isability (34was 96 perce earnings wbility ($11,8

tment data ma

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Source: Wo


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d writing skil

orkforce Board’


y results, 73 plls for a new

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f participantinstruction

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rvey 2011.

indicated thsaid they eno improve th

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have a decrer usefulness,


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ed a lot of impercent). In aed the same

rvey 2011.

the trainingheir programonal objectiajority of paf participanty.

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th the largeshich increasof students

56 percent to

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st increase osed from 63 reporting tho 51 percen

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19

estimates were made for a cohort of ABE/ESL participants who also participated in CTC Professional Technical Education. As can be seen above, Adult Basic Education participants worked more hours per quarter than non-participants in the control group. They also garnered higher annualized earnings than those who did not participate. However, the program did not have a significant positive impact on employment and hourly wages.

Costs and Benefits The cost-benefit analysis estimates the value of the net impact on earnings, employee benefits (estimated at 25 percent of earnings), unemployment insurance benefits, and certain taxes.

Program costs include both direct program costs and support payments borne by the government and the earnings students gave up while participating in the program. Benefits and costs are calculated for both the observed period of time and based upon a statistical model that estimated the benefits and costs out to the age of 65. In order to compare benefits and costs in terms of net present values, post-program benefits and costs are discounted by 3 percent per year and all figures are stated in 2012 Q1 dollars to control for inflation. The benefits and costs presented here are based on impacts estimated for students leaving programs in 2005-2006 (observed from 2006-07 through 2008-09), because a longer-term follow up is required for this analysis. The results are for those students who took only basic skills courses in the colleges. For each student in ABE/ESL only, the public (taxpayer) cost is about $2,810 over the length of their enrollment, and the student cost is $116 in foregone earnings while in school. The average ABE/ESL student makes no net gains in earnings in either the first two and one-half years after leaving college or during the course of working life to age 65 compared to similar individuals who did not participate in any of the workforce development programs.


20

Participant and Public Benefits and Costs per Participant in Community and Technical Colleges ABE Programs

Note: Benefits and costs are expressed in 2012 first quarter dollars. Upjohn estimated the impact of the net change in earnings of Social Security, Medicare, federal income, and state sales taxes.

Again, the above findings are for students who participated in ABE/ESL only and do not include students who also participated in professional-technical education or other training. In contrast, Integrated Basic Skills Education and Training (I-BEST), that combines adult education with professional-technical training, has significant positive impacts on participant employment and earnings.

Impact on Employment and Earnings: I-BEST Participants vs. Control Group I-BEST Participants Short-term^

Net Employment Impact* 3.9 percentage points

Net Hourly Wage Impact** $1.38

Net Quarterly Hours Impact 35.3

Annualized Earnings** $2,614 ^Short-term is three quarters after program exit. Long-term results are not yet available for I-BEST *Percentages listed are employment percentage points above those of the control group of non-participants. **Wages and earnings, expressed in first quarter 2012 dollars; represent the average difference between I-BEST participants who got jobs and those in the control group who were employed.

Participant Public Participant PublicBenefits *

Earnings - - - -Fringe Benefits - - - -Taxes - - - -

TransfersUI -$727 $727 -$1,090 $1,090

Costs Foregone net earnings $116 $13 $116 $13 Program costs $0 -$2,810 $0 -$2,810

Benefits - - - -Costs $116 -$2,797 $116 -$2,797

Total (Net) - - - -

Benefit/CostFirst 2.5 years Lifetime (until 65) Sum of Costs and

Benefits


21

Summary and Areas for Improvement As reported in previous studies, the employment and earnings results are weak for students who participate in Adult Basic Education without also receiving professional-technical training. Although participants report high levels of satisfaction with their program, the study does not find a positive impact on the average student’s employment and hourly wages. On a positive note, there has been a clear trend over time toward meeting more students’ needs for support services. The findings show a substantial net impact on employment and earnings for students who participated in I-BEST, combining adult education with professional-technical training. These results are strong evidence of the importance of investing resources in I-BEST and similar alternative methods of delivering adult education.

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3

Overall, apprentices spent a median of 36 months in their program. This is an increase of 8 months over the 2012 cohort of apprentices, which was in turn 10 months longer than the 2011 cohort. Among apprenticeship completers, the median program length was 46 months. Among apprentices leaving their program in the most recent program year, slightly more than half (51.5 percent) completed their program, up 1 percentage point from the prior report. However, the length of participation varied widely. The number of years spent in apprenticeship programs is reflected in the following table, comparing those who completed with those who did not complete. It’s worth noting that apprenticeship programs cover a broad array of occupations, from construction trades and early learning to dispensing optician and cosmetologist. Not only are apprenticeship occupations wide-ranging, the length of time it takes to complete a program varies considerably. For example, a Washington resident training to become a construction electrician can expect an apprenticeship to last at least five years to reach journey level status, while those training to become an esthetician require 2,000 hours, or approximately one year, to complete.

Source: 2010-11 Apprenticeship Administrative Data, Department of Labor and Industries.

Years in Program

CompletersNon

Completers

less than 1 0.0% 0.0%1-2 9.6% 30.3%2-3 6.4% 20.5%3-4 15.4% 21.1%4-5 24.7% 15.2%5-6 26.0% 8.0%6-7 14.2% 2.3%7-8 2.4% 1.0%8-9 0.6% 0.5%9-10 0.3% 0.1%more than 10 0.2% 1.1%

Number of Years Apprentices Participated in their Program


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5

Did Participants Have a Job and How Much Were They Paid? To determine the employment rate and earnings of apprenticeship participants, their records were matched with Employment Security Department wage files from Washington and neighboring states.4 Labor market outcomes for apprenticeships are significantly higher than for other programs the Workforce Board studies. The quality of apprenticeship training, the higher wage levels of many apprenticeship-related occupations, and the typically long length of training are factors. Record matches found 69 percent of apprentices had reported employment during the third quarter after they left the program. This is 4 percentage points above that observed in the last report. Their median wage was $29.92 per hour—up $.81 from $29.11 the prior year—and annualized earnings were $47,115, a decrease of $1,615 from the 2012 Workforce Training Results report.5 Although the median wage of apprentices is high, there is considerable variation in how much apprentices earn, as can be seen in the table below. When looking only at those who had completed their apprenticeship program, rather than at all exiters, the outcomes are even better. The median earnings of completers was $63,141. These results illustrate the value of completing an apprenticeship program.

Hourly Wages of Apprentices Third Quarter After Leaving Program (Quartiles)

Quartile Hourly Wage

Highest Above $38.70

Third $29.93-$38.69

Second $18.53-$29.92

Lowest Below $18.52 *This table excludes those enrolled in higher education.

4 These files contain quarterly earnings and hours worked information on those individuals with employment reported for unemployment insurance (UI) benefits purposes (approximately 90 percent of in-state employment, with self-employment, active duty military, and those working for religious nonprofit organizations being the major groups of employers not included). 5Annual earnings are calculated as third quarter earnings multiplied by four. Quarterly earnings are the result of hourly wage rates and the number of hours worked in a calendar quarter. All wages and earnings are stated in first quarter 2012 dollars.


6

Employment and Earnings for Apprentices, 2013 Performance Measure Results

Employment Rate* 69%

Employment Rate* (Completers) 83%

Full Time Employment ** 65%

Median Quarterly Hours 472

Median Hourly Wage*** $29.92

Median Annualized Earnings*** $47,115

Median Annualized Earnings (Completers) $63,141 * These figures apply to those with employment reported to state employment agencies six to nine months after leaving the program. Rate does not include self-employment, employment outside the Northwest or military service and thus understates total employment by approximately 10 percent. **Full-time employment averages 30 or more hours per week. ***Earnings/wages expressed in first quarter 2012 dollars to account for inflation. Earnings of Apprenticeship Participants To better gauge the financial effectiveness of Washington’s workforce programs, it helps to frame income levels. One common yardstick is the federal poverty level. In 2012, the federal poverty level for one person was $11,170 per year.6 In 2013, Apprenticeship participants were able to support a median 10.1 people at the poverty level—meaning they could support themselves plus just over 9 other people. They could support 4.2 people, including themselves, at 200 percent, or double, the poverty level.

6 Poverty levels from 2012 were used in this edition of Workforce Training Results to measure the results of workforce programs on participants observed in 2011-12. The federal poverty level is determined by the Department of Health and Human Services. The level varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs typically define eligibility income limits as some percentage of the federal poverty level.


7

Number of People Supported at Poverty Level by Participant Income

2006 2008 2010 2011 2012 2013

Com

plet

ers

All

Com

plet

ers

All

Com

plet

ers

All

Com

plet

ers

All

Com

plet

ers

All

Com

plet

ers

All

Number of people supported at poverty level

12.4 8.1 13.8 9.5 14.6 9.7 13.4 8.5 13.4 10.5 14.1 10.1

Number of people supported at 200 percent poverty

5.3 3.2 6.0 3.9 6.4 4.0 5.8 3.4 5.8 4.4 6.2 4.2

Apprentices Receiving Benefits from Employers

Performance Measure

2006 2008 2010* 2011 2012* 2013*

Self-Reported Medical Benefits from Employer

83% 81% N/A 85% N/A N/A

Self-Reported Retirement Benefits from Employer

82% 68% N/A 81% N/A N/A

*Due to budget limitations, the Workforce Board’s Participant Survey was not conducted for the 2010, 2012, or 2013 reports.


8

The next table shows employment and earnings information over six study periods.

Employment and Earnings Trends for Apprentices

Performance Measure 2006 2008 2010 2011 2012 2013

Employment Rate (Self-Reported) 87% 91% N/A 78% N/A N/A

Employment Rate* (State Records) 73% 79% 73% 61% 65% 69%

Full Time Employment** 61% 69% 65% 59% 64% 65%

Median Quarterly Hours 451 476 465 444 468 472

Median Hourly Wage*** $25.91 $26.42 $26.85 $26.03 $29.11 $29.92

Median Annualized Earnings*** $39,214 $44,864 $45,572 $40,759 $48,730 $47,115

*These figures apply to those with employment reported to the state’s Employment Security Department six to nine months after leaving program for all Apprenticeship participants, and are not limited to those who completed a program. Rate does not include self-employment, employment outside the Northwest or military service and thus understates total employment by approximately 10 percent. **Full-time employment averages 30 or more hours per week. ***Earnings/wages expressed in first quarter 2012 dollars to account for inflation.


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10

Apprenticeship Employment by Industry The majority of Apprenticeship program participants who were reported to be employed held jobs in construction (49.1 percent), services (17.8 percent), public administration (11.2 percent), manufacturing (7.6 percent) and retail trade (5 percent) industries. The percentage of apprentices working in public administration dropped 7 percentage points. The percentage of apprentices working in construction increased nearly 5 percentage points.

Source: Matches with Employment Security Department data in third quarter after exiting program. Industry groups based on North American Industry Classification System codes.

Industry Group49.1% Construction (see breakout below)17.8% Services (see breakout below)11.2% Public Administration7.6% Manufacturing5.0% Retail Trade4.4% Transportation and Warehousing and Utilities2.5% Wholesale Trade1.1% Financial Services1.0% Natural Resources and Mining0.3% Information

21.0% Building Equipment Contractors6.8% Construction of Buildings6.1% Foundation, structure & Building Exterior Contractors6.0% Heavy & Civil Engineering Construction5.7% Building Finishing Contractors3.5% All Other Specialty Contractors

6.4%Administrative and Support and Waste Management and Remediation Services

3.1% Professional, Scientific, and Technical Services2.6% Education Services2.2% All Other Services1.4% Health Care0.9% Arts, Entertainment, and Recreation0.6% Accommodation and Food Services0.5% Social Assistance

Breakout of Construction Industry

Breakout of Services Industry


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14

Race/Ethnicity Plays Role Native American apprentices were less likely than others to be employed in the third quarter after leaving their programs (51 percent). This employment rate compares to 73 percent for Asians, 71 percent for whites, 67 percent for Pacific Islanders, and 63 percent for Hispanics. Asians were most likely to be employed full time at 73 percent, followed by whites (66 percent), Native Americans (63 percent), Hispanics (55 percent), and African Americans (54 percent). For those employed, Pacific Islanders had the highest median hourly wage at $32.02, followed by whites at $31.70. The median hourly wage for African American apprentices was 66 percent of whites ($20.96), 73 percent for Hispanics ($23.14), 84 percent for Native Americans ($26.52), and 87 percent for Asians ($27.54). In terms of median annualized earnings, Native Americans earned the most ($50,918) followed by whites ($50,547), Asians ($44,354), Pacific Islanders ($40,853), Hispanics ($33,164), and African Americans ($29,780).

Source: 2010-11 Apprenticeship Administrative Data, Department of Labor and Industries.

Were Employers Satisfied with the Preparation Workers Received? The Workforce Board’s Employer Survey, administered during 2012, asked firms to evaluate new employees who had recently completed an apprenticeship program. Some 91 percent of employers said they were either ‘‘somewhat satisfied’’ or ‘‘very satisfied’’ with the overall work quality of these new employees. Employer satisfaction is broken down into three categories: Basic Skills, Job Skills and Work Place Skills. Basic skills refer to reading, writing, math, communication and computer skills.

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Apprenticeship Employment by Race and Ethnicity

Employed Full Time (among those employed)


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23

The most recent net impact analyses examined experiences of participants who left the Apprenticeship training program through 2009. The short-term impact (Program Year 2007-08) was observed in 2008-09, while the long-term impact (Program Year 2005-06) was observed from 2006-07 through 2008-09.

Apprenticeship All Apprenticeship Completers

Short Term^ Long Term^ Short Term^ Long Term^

Net Employment Impact*

7.80 percentage

points

9.80 percentage

points

24.70 percentage

points

24.00 percentage

points

Net Hourly Wage Impact**

$8.39 $9.33 $14.12 $15.50

Net Hours Employed per Quarter Impact

46.9 26.4 71.8 43.0

Net Annualized Earnings Impact** $19,742 $18,819 $34,474 $32,114

^Short-term is three quarters after program exit; Long-term is average across three years since program exit. *Percentages listed are employment percentage points above those of the control group of non-participants. **Wages and earnings, expressed in first quarter 2012 dollars, represent the average difference between Apprenticeship participants who got jobs and those in the control group who were employed. As can be seen above, apprenticeship programs had significant positive net impacts on employment, wages, hours worked, and annualized earnings when apprenticeship participants are compared with non-participants. These impressive results get even stronger for those who complete an apprenticeship, yielding nearly twice as much in annualized earnings, hourly wages and employment compared with those apprenticeship program participants who exited a program early. The benefits of not only starting but completing an apprenticeship program are clear. Costs and Benefits The cost-benefit analysis estimates the value of the net impact on earnings, employee benefits (estimated at 25 percent of earnings), UI benefits, and certain taxes.10 Program costs include both direct program costs and support payments borne by taxpayers and the tuition paid by participants, as well as the earnings participants would have otherwise received had they continued working.

10 Upjohn estimated the impact of the net change in earnings on social security, Medicare, federal income, and state sales taxes.


24

Benefits and costs are calculated for both the observed period of time and based upon a statistical model that estimated the benefits and costs out to age 65. To compare benefits and costs in terms of net present values, post-program benefits and costs are discounted by 3 percent per year and all figures are stated in 2012 Q1 dollars to control for inflation. The benefits and costs presented here are based on impacts estimated for apprentices leaving programs in 2005-2006 (observed from 2006-07 through 2008-09), because a longer-term follow-up is required for this analysis. Participant and Public Benefits and Costs per Apprentice

Note: Benefits and costs are expressed in 2012 first quarter dollars. For each apprentice in training, the public (taxpayer) cost is $3,564 over the length of their enrollment, and the participant cost is $1,832 in tuition. By definition, apprentices work during their program participation and their net earnings during training was $23,148 higher than those who were not in training. During the course of working life to age 65, the average apprentice will gain about $345,206 in net earnings (net impact earnings plus earnings while in apprenticeship training) and about $64,411 in employee benefits.11 These are net gains compared to the earnings of similar individuals who did not participate in a program included in this study. Including program costs and the net impacts on taxes and unemployment insurance benefits, the total net benefit per participant is $324,883.

11 This employee benefits amount does not account for the employee benefits associated with the earnings during participation. If the same benefit percentage (20 percent) were applied to such earnings, the gain in employee benefits in the longer term would be about $50,000.

Participant Public Participant PublicBenefits

Earnings $37,614 $0 $322,058 $0Fringe Benefits $7,523 $0 $64,411 $0Taxes -$9,867 $9,867 -$84,476 $84,476

TransfersUI $879 -$879 $1,573 -$1,573

CostsForegone net comp. $23,148 $6,147 $23,148 $6,147Program costs -$1,832 -$3,564 -$1,832 -$3,564

Benefits $36,150 $8,987 $303,567 $82,902Costs $21,316 $2,584 $21,316 $2,584

Total (Net) $57,466 $11,571 $324,883 $85,486 $410,369

Benefit/CostFirst 2.5 years Lifetime (until 65) Sum of Costs and

Benefits


25

Projected participant net benefits to age 65 far outweigh public investment in apprenticeship training by a ratio of $91 to 1, or $324,883 to $3,564. From the time of leaving training to age 65, the public is expected to gain about $84,476 per apprentice in net additional Social Security, Medicare, federal income, and state sales taxes. The estimated lifetime net benefit to taxpayers is $85,486 per participant. Projected taxpayer net benefits to age 65 outweigh public costs invested in apprenticeship training by a ratio of $23 to 1 or $82,902 to $3,564. Summary and Areas for Improvement Apprenticeship is an extremely successful training program with strong net impacts on employment and earnings. Moreover, the cost to the public is very low as the bulk of the costs are covered by the trust funds established by employers and workers. Employers report high levels of satisfaction with the skills of those who completed an apprenticeship program, and participants report their satisfaction with the program. This evaluation does find some areas that could be stronger. The median age of those leaving apprenticeships is 30. More should be done to enroll younger people into apprenticeships. Only 9 percent of apprentices are women, and this figure has been declining. Also, the hourly wages and annual earnings of women are only 72 percent those of men. More should be done to enroll women in apprenticeships, especially in higher paying fields. Finally, while Washington’s apprenticeship program continues to enroll people of color at

Documents

Basic Education/English as a Second Langu age · 2019. 11. 12. · 2013 Workforce Training Results Adult Basic Education / English as a Second Language Workforce Training and Education