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Prepared by: , Labor Economist Alaska Department of Labor and Workforce Development, Research & Analysis Section and the Employment Security Division In cooperation with Alaska's Workforce Investment Office and the respective Service Delivery Areas March 20, 2001 State Training & Employment Program Program Review for FY98 - FY00

Program Review for FY98 - FY00 - Alaska · 2016. 11. 21. · Early Intervention to Prevent Exhausted Claims ... Providing Skilled Workers and Lowering UI Costs to Attract New Businesses

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Page 1: Program Review for FY98 - FY00 - Alaska · 2016. 11. 21. · Early Intervention to Prevent Exhausted Claims ... Providing Skilled Workers and Lowering UI Costs to Attract New Businesses

Prepared by:Jill Lewis, Labor Economist

Alaska Department of Labor and Workforce Development,Research & Analysis Section and the

Employment Security Division

In cooperation withAlaska's Workforce Investment Office

and the respective Service Delivery Areas

March 20, 2001

State Training & Employment ProgramProgram Review for FY98 - FY00

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State Training and Employment Program i

TABLE OF CONTENTS

HIGHLIGHTS .............................................................................................................................iii

INTRODUCTION........................................................................................................................ 1

METHODOLOGY ....................................................................................................................... 1 Source of the Data ................................................................................................................. 1 Limits of the Data ................................................................................................................... 1

OVERVIEW................................................................................................................................ 2 The Objectives of STEP .......................................................................................................... 2 History ..................................................................................................................................... 3 Organizational Structure.......................................................................................................... 3

CHARACTERISTICS OF CLIENTS............................................................................................ 4 Level of Activity by Service Delivery Area................................................................................ 4 Eligibility Criteria ...................................................................................................................... 5 Reasons for Seeking STEP Training ....................................................................................... 6

THE COST OF PROVIDING SERVICES ................................................................................... 7

MEASURES OF THE PROGRAM’S SUCCESS......................................................................... 8 Reducing Future Claims Against Unemployment Insurance .................................................... 8

Reducing the Number of Exhausted Claims ................................................................................................ 9Early Intervention to Prevent Exhausted Claims ........................................................................................10

Providing Skilled Workers and Lowering UI Costs to Attract New Businesses ...................... 10Occupational Training Results in Employment in a Related Field ................................................................10Resident Employment is increased through Occupational Training..............................................................11

Helping Workers Adapt to Technological or Economic Change............................................. 12

WAGE RECOVERY OF CLIENTS AFTER STEP PARTICIPATION ........................................ 12

APPENDIX A: Glossary............................................................................................................ 20

APPENDIX B: Occupational Skills Training .............................................................................. 22

APPENDIX C: Shortage Occupations....................................................................................... 24

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State Training and Employment Program ii

TABLE OF TABLES

Table 1 Clients by Service Delivery Area.................................................................................4Table 2 Clients by Eligibility Criteria.........................................................................................5Table 3 Clients by Barrier to Employment................................................................................6Table 4 STEP Expenditures by Fiscal Year .............................................................................7Table 5 UI Activity of Terminated Clients................................................................................8Table 6 Occupation Skills Training, FY99 Terminees ........................................................... 11Table 7 Wages of Terminated Clients by STEP Characteristic, FY99, ................................ 13Table 8 Wages of Terminated Clients by Demographic Characteristic, FY99....................... 15Table 9 Wage Recovery of Terminated Clients by Place of Residence, FY99...................... 17Table 10 Wage Recovery of Terminated Clients by Industry, FY99........................................ 18

TABLE OF FIGURES

Figure 1 New STEP Clients by Fiscal Year..............................................................................3Figure 2 STEP Clients by Region – FY99................................................................................5Figure 3 Clients in FY99 also Enrolled in a Prior Year .............................................................5Figure 4 Clients by Eligibility Criteria .......................................................................................6Figure 5 STEP Expenditures per Client ...................................................................................7Figure 6 UI Claims Filed by Terminated Clients.......................................................................9Figure 7 UI Benefits Paid to Terminated Clients ......................................................................9Figure 8 Exhausted Claims of Terminated Clients................................................................. 10Figure 9 Terminated Clients Entering Employment, FY99 ..................................................... 10Figure 10 Clients with Occupational Skill Training Employed in a Related Field, FY99............ 11Figure 11 Occupational Training in Shortage Occupations, FY99 ........................................... 12Figure 12 Wages Before and After STEP by UI Status, FY99 (in millions of dollars)............... 14

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State Training and Employment Program iii

HIGHLIGHTS

The State Training and Employment Program (STEP) served 1,614 clients in FY00.New enrollment was up 21 percent, although fewer clients from the prior year continuedservices.

FY99 STEP clients filed 43 percent fewer UI claims and collected 63 percent less inbenefits in the year following STEP training compared to the year prior to training. Inthe year before entering STEP, these clients filed 783 claims and collected nearly$2,440,000 in UI benefits. In the year after completing STEP, only 446 claims werefiled with a total compensation of $901,000. The difference in pre- and post-STEP UIpayments was less than the cost of the program, for a payback period of two years.

The total earnings of clients working after training increased by 7 percent compared totheir pre-STEP earnings even as the number working after training decreased slightly.Eighty-seven percent of clients who completed STEP in FY99 worked in the year priorto STEP (1,068) and earned $19,367,000. Slightly fewer clients (1,045) worked in theyear after training but earned more, $20,743,000.

Total expenditures have risen 28 percent since FY95, from $2.347 million to $3 millionin FY99. Costs per active client have risen recently. Between FY95 and FY98, percapita costs fell from $1,981 to $1,656. For FY99 that number grew to $1,950.

For FY99, STEP exceeded all but one measure of performance set by the AlaskaHuman Resource Investment Council (AHRIC) in 1996. The percent of clients servedwho were severely affected by fluctuations in the economy was 14 percent lower thandesired, although this may be due to errors in completing the application form.

FY99Measures of Performance for STEP

Goal ActualPercent reduction in new UI claims 40 % 43.0 %Percent reduction in exhausted UI claims 20 64.1Percent of clients who obtain employment in new jobs 10 53.4Percent of clients with occupational training who obtain employment in a related field

50 59.1

Percent of clients with occupational training in a shortage occupation

25 53.0

Percent of clients severely affected by economic or technological change

40 25.8

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State Training and Employment Program iv

Nine out of ten clients who left STEP in FY99 did so under positive circumstances.Over half entered newly created jobs while nearly 38 percent more entered vacatedjobs. One in four clients received training to protect against economic changes.

In FY00, 68 percent of the program’s applicants were eligible to participate becausethey were drawing unemployment insurance (UI) benefits, while an additional 10percent were unemployed but had exhausted their benefits. Sixteen percent of clientswere not currently UI eligible due to part-time employment, insufficient wages, orunderemployment. The remaining clients were employed when they entered STEP butfaced job losses, needed new skills, or did not have data available.

Being currently unemployed was the reason cited by more than half of the clients forenrolling in STEP. Clients lacking opportunity and job skills accounted for 46 percent ofparticipants.

For clients who were not UI claimants or who had exhausted their UI benefits atenrollment, both the number employed and the amount of earnings after STEPcompletion increased.

Per capita UI benefits after STEP training were nearly 27 percent less than beforetraining.

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State Training and Employment Program 1

INTRODUCTION

This document is the latest in a series of reports prepared by the Alaska Department ofLabor and Workforce Development reviewing the performance of the State Trainingand Employment Program (STEP). This year's report focuses on clients who exited theprogram in Fiscal Year 1999 (FY99). In addition, performance measures for the clientswho exited in FY98 have been revised to reflect the most current unemployment andwage data available. A description of the characteristics of clients who enrolled in FY00is also included. Previous STEP reports are available from the Department of Laborand Workforce Development's Research and Analysis Section.

METHODOLOGY

SOURCE OF THE DATAThe Workforce Investment Office (WIO) provided the information on STEP clients andprogram expenditures to the Research and Analysis Section. This data included clientsocial security numbers, demographic characteristics, enrollment and exit dates forSTEP, and training activities.

STEP clients can enroll multiple times in a fiscal year. In calculating the number ofparticipants and terminated clients, each social security number is counted only once ina fiscal year. Individuals who exit STEP in one fiscal year, then re-enroll in the nextfiscal year are counted once in each year. Participants who exit the program arecounted in the fiscal year in which they completed STEP. Clients who participate inmultiple training activities are counted for each activity.

Participant records were matched with the Department of Labor and WorkforceDevelopment's unemployment insurance (UI) wage database to determine each client'semployment and earnings history. Unemployment compensation records providedinformation about clients' UI usage before and after STEP. To get some indication ofthe movement into or out of Alaska by STEP participants, the Alaska Department ofRevenue's Permanent Fund Dividend records were used to track clients’ residency.

LIMITS OF THE DATAThe most current group with wage data available for before and after performancecomparisons is limited to clients who exited the program in FY99. Post-programperformance measures of UI for FY99 are preliminary. Two years must pass afterSTEP completion before a final measure of UI payments can be calculated.

Insufficient time has elapsed to collect STEP employment and unemployment usagedata for clients who completed training in FY00. A full year of post-STEP wage data willnot be available for all FY00 clients until the end of FY01.

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State Training and Employment Program 2

Wage data are available only for workers covered by UI, such as those working forprivate employers or state and local government. Federal employees and the self-employed are not included. Additionally, only clients who remain in Alaska aftercompleting the program will have wage information available. For this reason, resultsfor clients who enter or leave the state within one year of STEP participation cannotaccurately be compared. Unlike the wage database, UI claimant information doesinclude data for federal workers and claims from states other than Alaska.

STEP outcome data compare participants’ employment history in the year beforeenrollment to the year after program completion. For clients who enroll in STEP morethan once in a fiscal year, the earliest enrollment date is used for pre-STEPcalculations. Similarly, if a client exits STEP more than once in the fiscal year, post-STEP comparisons use the client's final termination date. The wage and UI databasesuse different dating systems to organize their data. Work history and earnings arereported by quarter, while UI usage before and after training is calculated based onactual dates.

OVERVIEW

THE OBJECTIVES OF STEPSTEP is targeted to serve individuals who are currently receiving or have exhaustedtheir UI benefits, who lack employable skills, or whose skills have been outdated bytechnological change. Women, minorities, parents paying court-ordered child support,and others who are having difficulty finding jobs will be among the individuals served.STEP has three objectives as outlined in its original legislative intent language:

1. Help prevent future claims against unemployment benefits.2. Foster new jobs by encouraging businesses to locate in Alaska due to the

availability of a skilled labor force and minimized unemployment costs.3. Increase the training opportunities to those workers severely affected by

fluctuations in the state economy or technological changes in the workplace.

In August 1996, the Alaska Human Resource Investment Council (AHRIC) and thedepartments of Labor and Community & Regional Affairs adopted measures todetermine STEP’s success in meeting these goals. The measures used to evaluate theprogram’s performance are discussed below.1

• New claims for UI benefits filed by individuals completing STEP willdecrease by 40 percent during the five calendar quarters followingtheir exit from STEP.

1The goals of any program, and therefore the appropriate measures of success, can shift over time.Applying current performance measures to prior years’ results may not accurately reflect the actualperformance of the program, nor serve as an accurate predictor of future performance. The STEPprogram was initially instituted in 1990 and the performance measures most recent update was 1996.

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State Training and Employment Program 3

• Twenty percent of the STEP participants who are claiming UI benefitswhen they begin participation will claim less than the Maximum BenefitAmount available on their UI claim.

• Ten percent of the STEP participants will obtain jobs that did not existin the calendar quarter preceding their STEP participation.

• Fifty percent of the STEP participants receiving occupational trainingwill obtain employment in the occupation in which they trained or in aclosely related occupation.

• At least 25 percent of the STEP participants who receive occupationaltraining will receive their training in 'shortage occupations'.2

• At least 40 percent of STEP participants who completed the program willhave been severely affected by fluctuations in the state’s economy ortechnological changes in the workplace.

HISTORYSTEP began serving clients in the latter half of FY90. The delayed start of the programmeant only 138 clients received assistance that year. Since then, the annual number ofnew clients has varied from under a thousand to 1,500. (See Figure 1.) Only 361clients enrolled multiple times in FY00. In the most recent fiscal year, 2000, STEPenrolled 1,444 new clients. Additionally, 170 clients who enrolled in a prior fiscal yearcontinued their STEP training in FY00.

Figure 1New STEP Clients by Fiscal Year

ORGANIZATIONAL STRUCTUREOversight of STEP is centered at AHRIC, while the general management of theprogram is the responsibility of the Workforce Investment Office (WIO) within the 2 A shortage occupation is one in which there is an insufficient supply of trained resident workers to meetthe demand. These occupations have a large share of non-Alaskans employed.

138

1,386

951

1,4031,500

1,006 1,001

1,425 1,449

1,194

1,444

FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00

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State Training and Employment Program 4

Department of Labor and Workforce Development3. The WIO coordinates with threeService Delivery Areas (SDAs): Fairbanks, Anchorage/Mat-Su, and Statewide.

The SDAs provide services to clients directly and through contracting agencies orPrivate Industry Councils. In addition, SDAs manage training activities and set upworking partnerships to promote STEP activities. To broaden STEP’s outreachprograms and increase its training resources, the SDAs often enter cooperativeagreements with other agencies and associations to provide services. These includepublic and private post-secondary educational institutions, private for-profit and not-for-profit businesses, union apprenticeship and training trusts, tribal organizations, andeconomic development agencies. Contracting services to outside agencies reduceprogram costs while helping STEP reach more clients.

CHARACTERISTICS OF CLIENTS

LEVEL OF ACTIVITY BY SERVICE DELIVERY AREATable 1 shows that the Statewide SDA enrolled the largest number of clients in each ofthe three years reviewed, accounting for 60 percent of all participants in FY99.4 InFY00, the proportion of clients in the Statewide SDA decreased slightly to 55 percent.New clients increased in FY00 for all three SDAs, up 20.9% overall from FY99, to aboutthe same level as FY98. Total participants remained about the same due to a decreasein the number of clients continuing training from prior years.

Table 1Clients by Service Delivery Area

New Clients Continuing Clients TotalService Delivery Area

FY98 FY99 FY00 FY98 FY99 FY00 FY98 FY99 FY00Statewide 794 696 762 236 283 122 1,030 979 884Anchorage/Mat-Su 511 415 499 146 89 11 657 504 510Fairbanks 144 83 183 51 65 37 195 148 220

Total 1,449 1,194 1,444 433 437 170 1,882 1,631 1,614

3 The WIO was formerly known as the Job Training Partnership Office. In 1999, the office was movedfrom the Department of Community and Regional Affairs to the Department of Labor and WorkforceDevelopment.4 STEP clients can enroll in the program multiple times within a fiscal year. In calculating the number ofparticipants, each person is counted only once in a fiscal year. If a client exits the program in one fiscalyear, then re-enrolls in the next fiscal year, the client is counted in both of those years.

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State Training and Employment Program 5

Northern6%

Interior16%

Southwest3%

Gulf Coast5%

Southeast11%

Unknown27%

Anchorage/Mat-Su

32%

Only FY0044%

FY9929%

FY9820%

FY977%

Figure 2STEP Clients by Region – FY00

STEP serves clients in all regions of the state,although more clients are located in theAnchorage/Mat-Su area. Figure 2 shows thedistribution of clients throughout the state.

Over half of the FY00 clients participated inSTEP at some time in the prior three years.Figure 3 shows the percent of FY00 clientswho were enrolled during each of the fiscalyears from 1997 to 1999.

Figure 3Clients in FY00 also Enrolled in a Prior Year

ELIGIBILITY CRITERIASTEP clients must meet certain criteriareflecting their labor force status to beadmitted into the program. Most STEPapplicants are eligible for the programbecause they are unemployed. (See Table2.) This was true for 1,251 clients in FY00.Of those, 87 percent were receiving UIbenefits at the time they enrolled. Sixteenpercent of clients in FY00 were not eligiblefor UI benefits, due mainly to seasonal,temporary, part-time, or marginal employment.

Table 2Clients by Eligibility Criteria

FY98 FY99 FY00Total All Participants 1,882 1,631 1,614Unemployed 1,286 1,007 1,251Receiving UI benefits 968 800 1,091Exhausted UI benefits 318 200 160

Employed but Job Loss Likely 168 148 93Reduction in the number of workers at place of employment

30 25 18

Elimination of job 77 65 41Change in required job skills 61 58 34

Not Currently Eligible for UI benefits 408 465 261Seasonal, temporary, part-time, or marginal employment

256 270 182

Insufficient wage contributions due to limited opportunity

102 106 47

Underemployed 50 89 32

Unknown or Not Applicable 20 11 5

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State Training and Employment Program 6

968

318168

408

800

207 148

465

1091

160 93261

Receiving UIBenefits

Exhausted UIBenefits

Employed ButJob Loss Likely

Not Eligible forUI Benefits

FY98 FY99 FY00

The number of participants eligible because they were unemployed increase by 24percent in FY00 from FY99 levels, while the number of clients not eligible for UI benefitsdeclined. (See Figure 4.)

Figure 4Clients by Eligibility Criteria

REASONS FOR SEEKINGSTEP TRAININGWhile a person'sunemployment status is thebasis for determining eligibility,there are additional reasonswhy an individual seekstraining through STEP. Duringthe enrollment process, theclient has an opportunity toselect from a list ofcharacteristics describingthemselves and their reasons for applying to STEP. These characteristics, such asreceiving welfare, having a disability, or living in an area with limited job opportunities,are disadvantages that can be barriers to employment. The majority of clients for FY00reported being currently unemployed as one reason for enrolling in STEP, otherfrequent responses included long-term unemployment, lack of skills, and limitedemployment in their area. (See Table 3.)

Table 3Clients by Barrier to Employment

FY98 FY99 FY00Clients % Clients % Clients %

Total number of clients 1,882 100.0 1,631 100.0 1,614 100.0No available jobs for skills 621 33.0 383 23.5 431 26.7Area has limited suitable employment 910 48.4 616 37.8 715 44.3Physical or mental disability 120 6.4 92 5.6 100 6.2Age 45 and older 389 20.7 291 17.8 318 19.7Household receives welfare 281 14.9 203 12.4 215 13.3More than 13 weeks receiving UI 423 22.5 299 18.3 287 17.8Long-term unemployment due to lack of opportunity or limited skills 1,054 56.0 734 45.0 741 45.9

Current UI claimant 877 46.6 661 40.5 733 45.4Enrolled in the AFDC-UP program 97 5.2 65 4.0 63 3.9Paying court-ordered child support 122 6.5 99 6.1 92 5.7Lack skills to obtain employment 990 52.6 731 44.8 708 43.9Not working or face job loss due to changes in the economy or technical changes in the workplace

468 24.9 302 18.5 289 17.9

Currently unemployed 1,446 76.8 1,047 64.2 957 59.3Referred as a UI profile client 178 9.5 140 8.6 269 16.7Note: Clients may select more than one response on their enrollment form.

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State Training and Employment Program 7

THE COST OF PROVIDING SERVICESFunding for STEP comes from employees’ contributions to the UI Trust Fund, of whichone-tenth of one percent is available to fund STEP programs. The investment inadditional employment training and skills enhancement is intended to reduceparticipants’ future reliance on the unemployment insurance system. Expenditures forSTEP in FY98 and FY99 totaled $3.117 million and $3.180 million, respectively. ForFY00, $3.001 million was expended. (See Table 4.)

Table 4STEP Expenditures by Fiscal Year

FY98 FY99 FY00Total Expenditures (in millions) $3.117 $3.180 $3.001

Expenditures Per Client $1,656 $1,950 $1,859

Reduction in UI Payments 12 Months After vs. 12 Months Before

$1,392,967 $1,812,782 N/A

Percentage of Expenditures Recovered in One Year

44.7% 57.0% N/A

Years Required for Full Payback 2.2 1.8 N/A

Note: Data for FY00 are not available, as few clients have had sufficient time after STEP to collect UI.

As shown in Figure 5, expenditures per STEP client declined between FY95 and FY98.In the last two years, however, expenditures have risen again.

Figure 5STEP Expenditures per Client

Expenditures for STEP are recovered by the reduction in STEP clients’ futuredependence on unemployment insurance. If the skills STEP participants acquireremain with them for many years and keep them off the unemployment insuranceregisters, then the UI fund is fully reimbursed within two years.

1,981

1,839

1,735

1,656

1,950

1,859

FY95 FY96 FY97 FY98 FY99 FY00

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State Training and Employment Program 8

MEASURES OF THE PROGRAM’S SUCCESS

REDUCING FUTURE CLAIMS AGAINST UNEMPLOYMENT INSURANCE One of the stated goals of STEP is a 40 percent reduction in future claims againstunemployment benefits. This is measured by comparing the level of UI activity in the12 months preceding training to the 12 months following termination from STEP. Forthis reason, only clients who exited the program during the fiscal year are included inthis analysis. For FY99, the most recent year for which data are available5, significantdrops in this measure were apparent. (See Table 5.)

Table 5UI Activity of Terminated Clients

12 Months Before 12 Months After Percent ChangeFY97 FY98 FY99 FY97 FY98 FY99 FY97 FY98 FY99

All Terminated Clients 1,004 1,335 1,224 1,004 1,335 1,224 Not Applicable

Claims 676 865 783 401 479 446 -40.7 -43.8 -43.0Number of Claimants 648 845 774 382 466 440 -41.0 -44.5 -43.2Percent of Clients 64.5 63.7 64.0 38.0 34.9 36.4 -41.0 -44.5 -43.1Total Benefits Paid (in thousands)

$1,804.7 $2,465.5 $2,440.3 $840.1 $1,075.5 $900.8 -53.4 -60.3 -63.1

Total Weeks Claimed 12,658 16,067 14,942 5,886 7,349 6,037 -53.5 -57.6 -59.6

Exhausted Claims* 246 291 273 113 154 98 -54.1 -57.4 -64.1Number of Claimants 246 291 273 113 154 98 -54.1 -57.4 -64.1

Percent of Claimants 38.0 34.2 35.3 29.6 33.0 22.3 -22.1 -23.2 -36.8Total Benefits Paid (in thousands)

$824.5 $1,039.5 $1,026.7 $348.5 $500.7 $301.7 -57.7 -64.4 -70.6

Total Weeks Claimed 5,721 6,888 6,443 2,413 3,272 2,125 -57.8 -62.3 -67.0

Early Intervention Claims** 166 203 199 72 92 85 -56.6 -54.1 -57.3

Number of Claimants 152 200 196 69 91 84 -54.6 -53.9 -57.1Percent Exhausted Claims 25.0 25.0 26.6 30.4 26.6 16.5 21.6 6.4 -38.0Total Benefits Paid (in thousands)

$351.2 $482.8 $540.5 $175.0 $243.9 $163.3 -50.2 -56.4 -69.8

Total Weeks Claimed 2,455 3,175 3,357 1,090 1,460 1,023 -55.6 -59.7 -69.5

Note: FY99 data are preliminary.*Claims which have collected the Maximum Benefit Amount and are no longer eligible for UI payments.**Claims filed five weeks before or 10 days after enrolling in STEP.

5 Two years must pass after STEP completion before a final measure of UI payments can be calculated.Since claimants have one full calendar year to draw on a claim, numbers may not include complete datafor clients who filed a claim toward the end of the fiscal year being evaluated. For this reason, data forFY99 post-STEP UI payments are preliminary.

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State Training and Employment Program 9

676

865783

401479 446

FY97 FY98 FY9912 Months Before 12 Months After

Note: Data for FY99 is preliminary.

$1,804,678

$2,465,469 $2,440,276

$840,149 $979,291 $900,815

FY 97 FY 98 FY 9912 Months Before 12 Months After

Note: Data for FY99 is preliminary.

UI claims for FY99 participants fell from 783 claims in the 12 months prior to theirparticipation to 446 claims in the year after they completed STEP, a reduction of 43percent. (See Figure 6.)

Figure 6UI Claims Filed by Terminated Clients

A drop in the number of UIclaims filed and the amount oftime STEP clients were drawingUI benefits resulted in asignificant reduction in costs tothe UI Trust Fund. As shown inFigure 7, benefits paid out ofthe fund for post-STEP clientsin FY99 dropped by $1.5 millionor 63 percent.

Figure 7UI Benefits Paid to Terminated Clients

Reducing the Number ofExhausted Claims Another goal of STEP is toreduce the percentage of clientsdepleting their unemploymentinsurance benefits. Anindividual collecting theMaximum Benefit Amountavailable on their claimbecomes ineligible for additionalUI payments, therebyexhausting their claim. It ishoped that clients who enter STEP within a short time after filing for UI have a betterchance of not exhausting their benefits. For FY99, the number of claims exhausted fell from 273 before STEP participation to98 for post-STEP participants, a drop of 64 percent. (See Figure 8.) In the 12 monthsprior to STEP participation, 35 percent of the FY99 client UI claims were exhausted,compared to 22 percent in the year after STEP. The exhaustion rate for STEP clientswas well below that of the 42 percent rate for all UI claimants in 1999. Thisperformance represents a notable achievement as STEP clients do not portray arandom sample of the population and most face significant barriers to gainingemployment.

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State Training and Employment Program 10

246291 273

113154

98

FY97 FY98 FY9912 Months Before 12 Months After

Note: Data for FY99 is preliminary.

New Job53%

Vacated Job38%

Other9%

Early Intervention to Prevent Exhausted Claims Those persons referred to STEP within 5 weeks of their initial UI claim or who filed forUI within 10 days of entering STEP have the potential for STEP participation to greatlyreduce the probability they will exhaust their benefits. Sixteen percent (199 clients) ofFY99 terminees filed for UI within this narrow time frame. Of these, 53 exhausted theirbenefits, an exhaustion rate of 27 percent. The exhaustion rate for the 12 monthsfollowing STEP was lower, 17 percent. This is lower than for all STEP clients, and wellbelow that for all claimants statewide (42%).

Figure 8Exhausted Claims of Terminated Clients

PROVIDING SKILLEDWORKERS AND LOWERINGUI COSTS TO ATTRACT NEWBUSINESSES Another goal of STEP is to“foster new jobs by encouragingbusinesses to locate in Alaskadue to the availability of askilled labor force andminimized unemploymentcosts". In FY99, 421participants who successfullycompleted the program (as defined by STEP objectives) entered a newly created job.6The percentage of clients leaving STEP for a new job remained the same as FY98, 34percent. More than half of the terminees who gained employment after their STEPtraining entered new jobs. (See Figure 9.)

Figure 9Terminated Clients Entering Employment, FY99

Occupational Training Results in Employmentin a Related FieldOccupational training accounted for 17percent of all activities in FY99. In that year,656 clients participated in 690 occupationaltraining activities. Of those, 437 clientssuccessfully completed the training and exitedSTEP. Forty-three percent of the 437 clientsleft STEP for employment. Clients withoccupational training who entered employmentwere more likely to enter new jobs, 70.3%,compared to all clients at 53%.

6 A newly created job is one which did not exist in the calendar quarter preceding STEP participation.

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State Training and Employment Program 11

Construction & Trades

4%Occupation Unknown

61%

Health Services6%

Other Related Work8%

Transportation Related

5%

Administrative Support

16%

Figure 10Clients with Occupational Skill Training

Employed in a Related Field, FY99

In FY99, 94 different occupations weretargeted for training. The occupation inwhich training was received wasreported for only 186 of the 423 clients(44.0%). For those 186 clients, 78.0%were employed after training. This isslightly lower than the employment forall clients (82%). Fifty-nine percent, or110 clients, found employment in a fieldrelated to their training, 35 did not.(See Figure 10.) It is not possible todetermine whether the remainder oftrainees found employment in the occupation in which they trained. (See Table 6.)Appendix B contains a complete list of the reported occupations for terminees, theiroccupational group, and the number of clients training in each.

Table 6Occupation Skills Training, FY99 Terminees

Employed Employed in aRelated FieldOccupational Group Number of

Clients Clients % Clients %

Administrative Support 68 50 73.5 45 66.2Construction & Related 19 18 94.7 12 63.2Health Services 27 25 92.6 16 59.3Professional & Technical 21 10 47.6 10 47.6Repair & Maintenance 11 9 81.8 5 45.5Transportation Related 21 17 81.0 14 66.7Miscellaneous 19 16 84.2 8 42.1All Known Occupations 186 145 78.0 110 59.1Unknown 237 202 85.2 165 69.6Total 423 347 82.0 275 65.0

Resident Employment is increased through Occupational TrainingThe STEP performance measures approved in August 1996 placed new emphasis onmeeting specific needs in Alaska’s economy. One of the goals is to increase thenumber of residents employed in occupations with a shortage of resident workers. Tothis end, a target was set to train 25 percent of the clients receiving occupationaltraining through STEP in shortage occupations. In FY99, of the clients who receivedoccupational training, 224 (53.0%) received training for shortage occupations. (SeeFigure 11.) A list of the Department of Labor and Workforce Development's shortageoccupations can be found in Appendix C.

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State Training and Employment Program 12

Occupation Unknown19.1%

Shortage Occupation

53.0%

Not a Shortage

Occupation27.9%

Figure 11Occupational Training in Shortage Occupations, FY99

HELPING WORKERS ADAPT TO TECHNOLOGICAL OR ECONOMIC CHANGETraining to protect workers from job loss because they lack specific skills is one of thelegislative objectives noted in the creation of STEP. The August 1996 performancemeasures set as a goal to “increase the training opportunities to those workers severelyaffected by fluctuations in the state economy or technological changes in theworkplace”.

This goal, in large part, measures STEP’s ability to recruit from a targeted population.This explains why about one in ten STEP clients is employed when they enter theprogram. Of FY98 participants who successfully completed the program, 28 percentreceived training to protect against economic changes. For FY99, the percentagedeclined to 26 percent. However, the percentage rose to 34 percent for FY00participants.

The percent of clients served who were severely affected by fluctuations in theeconomy was 14 percent lower than desired. The most likely reason is that clients donot mark the appropriate box on the application form. Rephrasing the question on theapplication may improve this number. Similar questions about lack of skills or suitableemployment have responses over 40 percent.

WAGE RECOVERY OF CLIENTS AFTER STEP PARTICIPATIONAnother measure of STEP’s success is wage recovery, or the ability of STEP clientswho finish the program to earn wages comparable to those they earned before enteringSTEP. Often, clients entering the program have been displaced from long-term jobsthat provided relatively stable incomes. It is difficult to find a job requiring similar skillsat the same level of pay with a different employer and, therefore, it is reasonable toexpect their average incomes to decline. It is notable that 1,045 FY99 clients earned7.1% more after STEP. As shown in Table 7, participants who were employed atenrollment but facing job losses saw a 30 percent decrease in their wages aftercompleting the program.

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State Training and Employment Program 13

Table 7Wages of Terminated Clients by STEP Characteristic, FY99

Four Quarters Before and After STEP Training

Number Employed EarningsSTEP Characteristic

Numberof

Clients Before After Before After% Changein Earnings

All Terminated Clients 1,224 1,068 1,045 $19,366,953 $20,742,998 7.1

By UI Eligibility at First EnrollmentUnemployedExhausted UI benefits 146 108 123 955,223 1,809,207 89.4Receiving UI benefits 571 544 497 11,595,867 10,927,621 -5.8 Total Unemployed 717 652 620 12,551,090 12,736,648 1.5Employed but job loss likelyChange in required job skills 48 46 46 1,144,267 1,218,653 6.5Reduction in the number of workers at place of employment 16 15 10 385,825 253,883 -34.2Elimination of job 51 47 34 1,834,979 877,517 -52.2 Total Employed 115 108 90 3,365,071 2,350,053 -30.2Not currently eligible for UI benefitsInsufficient wage contributions due to limited opportunity 88 63 76 465,880 1,011,038 117.0Seasonal, temporary, part-time, or marginal employment 221 169 185 1,383,169 2,724,418 97.0Underemployed 75 69 67 1,436,747 1,804,085 25.6 Total Not eligible for UI 384 301 328 3,285,796 5,539,541 68.6Unknown or Not Applicable 8 7 7 164,996 116,756 -29.2

By Last ActivityWork tools, clothing, gear 9 8 8 185,341 316,196 70.6Employment assistance 283 231 243 3,266,506 4,398916 34.7Support services 93 76 75 953,428 1,252,377 31.4Occupational skills training, not OJT 141 117 106 1,661,678 1,989,757 19.7Industry specific 369 347 351 6,562,588 7,810,402 19.0Assessment/employability development 102 89 80 1,825,137 1,568,797 -14.0Job/career counseling 37 34 30 962,022 764,345 -20.5Case management 124 105 103 2,321,513 1,802,159 -22.4Relocation 5 5 2 * * -24.5Job search assistance 21 20 18 560,537 319,672 -43.0All other activities 26 22 18 636,617 348,026 -45.3Entrepreneurial training 10 10 9 322,671 99,633 -69.1Job development 4 4 2 * * -71.8

By Service Delivery AreaAnchorage 353 292 303 4,350,384 6,087,521 39.9Fairbanks 102 85 76 752,065 1,000,397 33.0Statewide 769 691 666 14,264,503 13,655,080 -4.3* Data is nondisclosable.

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State Training and Employment Program 14

Total wages earned for FY99 terminees increased by seven percent overall after theirparticipation in STEP, even as the number working declined. Clients who were noteligible for UI had the greatest increase in wages after exiting STEP, 69 percent. (SeeFigure 12.) This group also had more clients employed post-training than before. Thisis not surprising since the majority of those clients were employed in seasonal, part-time or temporary jobs prior to enrollment. Terminees who were unemployed and hadexhausted their benefits earned 89 percent more in the four quarters after STEP whilethose receiving UI benefits earned slightly less (-5.8%).

Activities with strong wage recovery measures were work tools (nine clients earned70.6% more), employment assistance (283 clients earned 34.7% more) and supportservices (93 clients earned 31.4% more). Not all activities yielded an increase in wagesin the first 12 months after STEP completion. Recovery of wages was the greatest inFY98 for clients whose last program activity was entrepreneurial training. For FY99,however, wage recovery for that activity was negative. Job search assistance, and jobdevelopment also showed significant decreases in post-STEP earnings for FY99.7

Figure 12Wages Before and After STEP by UI Status, FY99

(in millions of dollars)

Wage changes were not evenly distributed among Service Delivery Areas. Total wagesearned for clients in the Anchorage/Mat-Su SDA were 37 percent more in the fourquarters after training than before STEP. Anchorage/Mat-Su also had more clientsemployed in the 12 months after training. The Fairbanks SDA showed positive wagerecovery as well, increasing earnings by 26 percent while earnings for clients in theStatewide SDA declined 12 percent. The Statewide SDA, however, had fewer clientsemployed after training than before and saw a decrease in wages of four percent. 7 Wages for clients accepting relocation assistance cannot be accurately measured after STEP completionsince the UI wage database includes only those wages earned in Alaska.

$12.551

$3.365 $3.286

$12.737

$2.350

$5.540

Unemployed Employed but Job LossLikely

Not UI Eligible

12 Months Before 12 Months After

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State Training and Employment Program 15

As shown in Table 8, the ability of clients to increase their wages after STEP varieddepending on the age, race, or gender of the individual. Native Americans, AfricanAmericans, and Asians all saw noticeable increases in wages post-STEP. Earnings forWhites, however, showed no real change (-0.4%). More females worked after trainingand earned 27.7% more; fewer males were employed after and earned slightly less(-0.3%).

The likelihood of recovering wages decreased with age. The youngest workers, aged16 to 25, had the greatest increase in wages (almost 48 percent) while those 55 yearsand older earned less after STEP (-50.9%).

Table 8Wages of Terminated Clients by Demographic Characteristic, FY99

Four Quarters Before and After STEP Training

Number Employed EarningsDemographicCharacteristic

Numberof Clients Before After Before After

% Changein Earnings

All Terminated Clients 1,224 1,068 1,045 $19,366,953 $20,742,998 7.1

By Age GroupUnder 25 years 203 168 184 1,765,864 2,612,291 47.925 to 34 years 349 309 310 5,224,812 6,835,609 30.835 to 44 years 378 332 318 6,073,805 6,453,102 6.245 to 54 years 232 202 186 4,745,015 4,076,563 -14.1Over 55 years 62 57 47 1,557,456 765,433 -50.9

By RaceWhite 679 589 563 12,686,245 12,632,567 -0.4Native American 421 372 383 5,198,779 6,256,619 20.3African American 55 43 39 387,686 545,857 40.8Hispanic 42 41 38 776,777 827,891 6.6Asian and Pacific Islander 27 23 22 320,469 480,064 49.8

By GenderMale 708 635 608 14,238,623 14,193,264 -0.3Female 516 433 437 5,128,330 6,549,734 27.7

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State Training and Employment Program 16

Clients in most areas of Alaska experienced increases in their wages during the 12months after completing STEP. One notable exception is in the Ketchikan GatewayBorough where earnings dropped 55 percent. (See Table 9.)

This is due mainly to the large number of former Ketchikan Pulp Company (KPC)workers exiting in FY99. Two out of three Ketchikan clients exiting in FY99 wereemployed by KPC before enrolling in STEP. Of those 97 terminees, 65 percent workedpost-STEP. Earnings after training for ex-KPC employees were 35 percent less thantheir pre-STEP wages.

The impact KPC had on wage recovery in FY99 is also evident when wages areevaluated by industry. (See Table 10.) Post-STEP earnings of clients in themanufacturing industry were down by 50 percent, $5,489,223 compared to $2,721,116after training. Average wages for these clients dropped from $49,585 before to $13,920after exiting the program. While 95 of the 97 clients worked before entering STEP, only41 worked in the year after exiting. Former KPC employees represented nearly 10percent of the STEP client UI claims in FY99. After STEP, UI claims for ex-KPCworkers were reduced to 8.8% of the total.

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State Training and Employment Program 17

Table 9Wage Recovery of Terminated Clients by Place of Residence, FY99

Four Quarters Before and After STEP Training

Number Employed EarningsPlace of Residence Number of

Clients Before After Before After% Change in

Earnings

All Terminated Clients 1,224 1,068 1,045 $19,366,953 $20,742,998 7.1

Aleutians East Borough 1 1 1 * * -5.4

Aleutians West 6 5 5 286,730 312,132 8.9

Municipality of Anchorage 233 203 198 3,367,455 4,489,848 33.3

Bethel 18 16 18 205,700 248,318 20.7

Bristol Bay Borough 3 3 2 * * -57.4

Denali Borough 4 4 4 * * 7.5

Dillingham 7 3 5 * * 289.3

Fairbanks North Star Borough 106 87 79 786,627 1,051,859 33.7

Haines Borough 15 12 14 298,647 454,159 52.1

Juneau Borough 111 103 105 2,052,511 2,436,614 18.7

Kenai Peninsula Borough 111 103 100 1,570,861 2,547,653 62.2

Ketchikan Gateway Borough 151 141 109 5,145,547 2,317,949 -55.0

Kodiak Island Borough 9 9 9 353,615 438,982 24.1

Lake and Peninsula Borough 5 4 4 * * -42.8

Matanuska-Susitna Borough 114 84 99 886,253 1,412,748 59.4

Nome 54 50 50 938,481 847,515 -9.7

North Slope Borough 3 3 3 * * 36.0

Northwest Arctic Borough 29 22 28 277,008 516,900 86.6

Prince of Wales-Outer Ketchikan 38 33 27 570,113 529,929 -7.0

Sitka Borough 48 44 45 506,791 745,309 47.1

Skagway-Hoonah-Angoon 14 13 13 163,437 227,856 39.4

Southeast Fairbanks 6 4 5 * * 15.5

Valdez-Cordova 14 13 13 156,933 122,888 -21.7

Wade Hampton 22 18 21 79,418 202,812 155.4

Wrangell-Petersburg 27 27 23 472,578 408,289 -13.6

Yakutat Borough 5 5 4 * * -15.5

Yukon-Koyukuk 56 47 52 598,333 750,712 25.5

Unknown 14 11 9 158,018 151,857 -3.9

* Data is nondisclosable.Note: Place of residence is base upon the zip code on the client's STEP application.

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State Training and Employment Program 18

Table 10Wage Recovery of Terminated Clients by Industry Employed in Prior to Training, FY99

Four Quarters before and After STEP Training

Number of Number Employed EarningsIndustry

Clients Before After Before After% Change in

Earnings

All Terminated Clients 1,224 1,068 1,045 $19,366,953 $20,742,998 7.1

Agricultural services 5 5 5 74,240 49,109 -33.9

Mining 73 73 65 1,507,408 1,737,342 15.3 Oil & Gas Extraction 55 55 49 996,368 1,311,202 31.6

Construction 180 180 172 4,226,402 5,085,463 20.3 Building construction-general contractors and operative builders

36 36 36 543,847 642,663 18.2

Heavy construction other than building construction-contractors

72 72 68 2,202,641 2,531,850 15

Construction-special trade 72 72 68 1,479,914 1,910,950 29 contractors

Manufacturing 156 156 116 5,489,223 2,721,116 -50.4 Food and kindred products 36 36 34 241,185 578,910 140.0 Lumber and wood products, 19 19 14 1,097,386 378,093 -65.5 except furniture Paper and allied products 88 88 57 3,877,440 1,470,232 -62.1

Transportation, Communications, 75 75 64 1,183,484 1,324,372 11.9 and Utilities Transportation 47 47 38 647,502 710,602 9.7

Wholesale Trade 23 23 19 437,839 368,521 -15.8

Retail Trade 160 160 137 1,457,448 1,748,797 20.0 General merchandise stores 34 34 26 322,278 313,799 -2.6 Eating & drinking places 58 58 52 387,224 533,254 37.7

Finance/Insurance/Real Estate 78 78 71 1,362,540 1,430,508 5.0

Services 251 250 226 2,524,095 3,355,081 32.9 Health services 35 35 34 546,623 566,376 3.6

Public Administration, excluding Federal Government

58 58 54 914,550 1,145,943 25.3

Nonclassifiable establishments 165 7 6 189,724 1,776,746 836.5 or not applicableNote: The industry is based on information contained in the UI wage database and may differ from information supplied by theclient on the enrollment form. For clients with more than one employer, the client is assigned to the industry in which the mostwages were earned before training.

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APPENDIX A: Glossary

State Training and Employment Program 19

Active clients- Clients who participated in at least one activity during the fiscal year or who completed theprogram during the fiscal year. Active clients are counted only once in a fiscal year. An active client is thesame as a participant.

Activity- Any single training session. Clients are counted for each activity in which they participate in afiscal year. Individuals who enroll in multiple activities are counted more than once.

AHRIC- Alaska Human Resource Investment Council. This agency oversees the STEP program.

Applicants- Persons who applied to enter the STEP program during the fiscal year. Individuals may havebeen enrolled in the prior fiscal year, exited the program, and re-applied in the current fiscal year.Applicants are counted only once during the fiscal year. The earliest date is used if there are multipleapplication dates.

Claimants- Persons receiving Unemployment Insurance benefits.

Continuing clients- Persons who enrolled in the prior fiscal year and who have not exited the programyet. Continuing clients are counted only once during both the current and prior fiscal year.

Contracting agencies- Agencies that provide client services to STEP participants. Agencies includepublic and private post-secondary educational institutions, private for-profit and non-profit businesses,union apprenticeship and training trusts, tribal organizations, and economic development agencies. ThePrivate Industry Councils serve as contracting agencies.

Cost per active client- Expenditures divided by the number of active clients.

Early intervention- Providing STEP services to clients who filed unemployment claims within five weeksof their initial UI claim or who filed for UI within 10 days of entering the program in an effort to preventclients from exhausting their UI claims.

Enrollees- Same as new clients. The earliest date is used if there are multiple enrollment dates.

Exhaustion- Collecting the maximum benefit amount of unemployment insurance compensation,becoming ineligible for additional payments.

Exhaustion rate- The number of UI claimants exhausting their benefits as a percentage of the totalnumber of UI claimants.

FY- Fiscal Year. The State of Alaska’s fiscal year begins on July 1 and ends on June 30. For example,Fiscal Year 1998 begins July 1, 1997 and ends June 30, 1998.

New clients- Persons who were not enrolled in STEP during the prior fiscal year. New clients are countedonly once in a fiscal year. New clients are the same as enrollees.

Newly created job- A job that did not exist in the quarter prior to STEP participation, as opposed to a jobvacated by an employee. This information is provided by the SDA.

Participants- STEP clients, including new, continuing and terminated clients. Participants are countedonly once in a fiscal year, regardless of the number of times they enrolled or terminated the program.Participants are the same as active clients.

Private Industry Councils- Same as contracting agencies.

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State Training and Employment Program 20

Residents- For purposes of this report, a resident of Alaska is a person who has applied for a PermanentFund Dividend in the current or prior year.

SDA- Service Delivery Area. There are three SDAs for Alaska: Anchorage/Mat-Su, Fairbanks, andStatewide. These agencies provide services to clients directly, manage training activities, contract withother organizations to provide client services, and set up working partnerships to promote STEP activities.

Shortage occupation- An occupation for which there is an insufficient supply of trained resident workersto meet the demand. These occupations have a large share of non-Alaskans employed. The list ofshortage occupations is determined by the Department of Labor and Workforce Development, Researchand Analysis Section as part of the resident hire program.

STEP- State Training and Employment Program. A training program funded by one-tenth of one percentof UI contributions. STEP serves individuals who are collecting UI benefits or who have difficulty findingemployment.

Successful completion- This term is used to describe a client exiting the program for a positive reason,usually employment, as defined by the STEP objectives. The term can also be used to describe thetermination of an individual activity within the program.

Terminated clients- Clients who exited the program for any reason during the fiscal year. They may benew or continuing clients. Terminees are counted only once in a fiscal year, regardless of the number oftimes they exited the program. The latest termination date is used if the individual exited STEP multipletimes in the same fiscal year.

Total expenditures- Funds provided by the Department of Labor and Workforce Development to supportSTEP.

Total wages- Wages are the sum of all wages earned from all employers in the fiscal year. This data iscollected from the Alaska Department of Labor and Workforce Development’s UI wage database and islimited to employers who are covered by UI.

UI claimant- A person who has filed a request for unemployment compensation.

UI- Unemployment Insurance.

Wage recovery- The ability of STEP clients who complete the program to earn wages comparable tothose they earned before entering STEP. ((Earnings in the 12 months after training – Earnings in the 12months before training) / Earnings in the 12 months before training)

WIO- Workforce Investment Office. This office is responsible for the general management of STEP.Prior to 2000, it was known as the Job Training Partnership Office or JTPO. In 1999 the JTPO wasmoved from the Department of Community and Regional Affairs to the Department of Labor andWorkforce Development and subsequently renamed.

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APPENDIX B: Occupational Skills TrainingTerminated Clients, FY99

Occupation Occupational Group Number ofClients

State Training and Employment Program 21

Accountant Professional & Technical 1Accountant, Cost Professional & Technical 1Accounting Clerk Administrative Support 1Administrative Assistant Administrative Support 3Administrative Clerk Administrative Support 5Airframe-And-Power-Plant Mechanic Repair and Maintenance 1Airplane Pilot, Commercial Transportation Related 2Asbestos-Shingle Inspector Miscellaneous 1Asbestos Removal Worker Construction & Related 1Auto-Body Repairer, Fiberglass Repair and Maintenance 1Automobile-Body Repairer Repair and Maintenance 1Automobile Mechanic Repair and Maintenance 1Boatbuilder, Wood Transportation Related 1Bookkeeper Administrative Support 5Business and Property Investment Broker Miscellaneous 1Business Manager Miscellaneous 1Cargo Checker Transportation Related 1Caseworker Professional & Technical 3Certified Medication Technician Health Services 1Clerk, General Administrative Support 1Clinical Therapist Health Services 1Communications Technician Professional & Technical 1Computer Operator Administrative Support 40Computer Programmer Professional & Technical 3Computer Systems Hardware Analyst Professional & Technical 2Construction-Equipment Mechanic Repair and Maintenance 1Cook Miscellaneous 4Counselor Professional & Technical 3Data Entry Clerk Administrative Support 2Deckhand Transportation Related 1Diesel Mechanic Repair and Maintenance 3Drafter, Electrical Professional & Technical 1Driver Transportation Related 1Electrician Helper Construction & Related 1Electronics Technician Professional & Technical 2Environmental Analyst Miscellaneous 1Fire Fighter Professional & Technical 1Fish Smoker Miscellaneous 3Fitter Helper Construction & Related 3Hazardous-Waste Management Specialist Miscellaneous 1Hazwopper (Bus. Service, Construction) Transportation Related 1Horticultural Worker II Miscellaneous 1Human Resource Advisor Administrative Support 1Laborer, Pipelines Transportation Related 3Lawyer Professional & Technical 1Manager, Food Service Miscellaneous 1Manager, Retail Store Miscellaneous 1Medical Assistant Health Services 2

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APPENDIX B: Occupational Skills TrainingTerminated Clients, FY99

Occupation Occupational Group Number ofClients

State Training and Employment Program 22

Multi-operation Forming Machine Operator Construction & Related 1Nurse Assistant Health Services 18Nurse, General Duty Health Services 1Nurse, Licensed Practical Health Services 3Nurse, Practical Health Services 1Operating Engineer Miscellaneous 3Ordinary Seaman Transportation Related 1Painter Construction & Related 1Phlebotomist Health Services 1Programmer-Analyst Professional & Technical 1Receptionist Administrative Support 1Refrigeration Mechanic Repair and Maintenance 2Secretary Administrative Support 4Security Officer Miscellaneous 1Small-Engine Mechanic Repair and Maintenance 1Social Worker, Psychiatric Health Services 1Surgical Technician Health Services 1Teacher, Elementary School Professional & Technical 1Teller Administrative Support 1Transcribing-Machine Operator Administrative Support 1Travel Agent Transportation Related 2Truck Driver, Heavy Transportation Related 8Welder-Fitter Construction & Related 10Welder-Fitter Apprentice Construction & Related 2All Known Occupations 186Unknown Unknown 237Total 423Note: Occupations are based on the Dictionary of Occupational Titles classification system.

Source: Alaska Department of Labor and Workforce Development, Research and Analysis.

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APPENDIX C: Shortage Occupations

State Training and Employment Program 23

Occupations with Largest Number of Nonresident Workers

Anchorage/Mat-Su 1998

Adult Education & Other Teachers, NEC*Airplane Pilots & NavigatorsCarpentersCashiersChild Care Workers, Except Private HouseholdCombined Food Preparation & Service, Fast FoodConstruction LaborersCooks, RestaurantCooks, Short OrderDancersDispatchersFood Counter, Fountain & Related OccupationsFreight, Stock, & Material Movers, NECGeneral Office OccupationsGuards & Police, Except Public ServiceJanitors & Cleaners, Except Maid/House CleanerKitchen Workers, Food PreparationMaids & HousemenManagement Related Occupations, NECManual Occupations, NECMiscellaneous Food & Beverage Preparation OccupationsReceptionistsRegistered NursesSales ClerksSalespersons, NECSecretariesStock Handlers & BaggersVehicle Washers & Equipment CleanersWaiters & WaitressesWaiters & Waitresses’ Assistants

*Not Elsewhere Classified.

Source: Alaska Department of Labor and Workforce Development, Research and Analysis.

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APPENDIX C: Shortage Occupations

State Training and Employment Program 24

Occupations with Largest Number of Nonresident Workers

Fairbanks 1998

Adult Education & Other Teachers, NEC*Airplane Pilots & NavigatorsAutomobile MechanicsBank TellersBartendersBookkeeping, Accounting & Auditing ClerksCarpentersCashiersChild Care Workers, Except Private HouseholdCombined Food Preparation & Service, Fast FoodConstruction LaborersCooks, RestaurantCooks, Short OrderCounter ClerksDancersElectriciansFood Counter, Fountain & Related OccupationsFreight, Stock, & Material Movers, NECGeneral Office OccupationsGuards & Police, except Public ServiceJanitors & Cleaners, Except Maids/HousemenKitchen Workers, Food PreparationMaids & HousemenMaintenance Repairs, General UtilityManagement Related Occupations, NECManual Occupations, NECMiscellaneous Food & Beverage Preparation OccupationsPlumber, Pipefitters & SteamfittersPostsecondary TeachersReceptionistsRegistered NursesSales ClerksSalespersons, NECSecretariesSocial WorkersStock Handlers & BaggersTeacher AidesTruck Drivers, HeavyTruck Drivers, LightVehicle Washers & Equipment CleanersWaiters & WaitressesWaiters'/Waitresses' Assistants

*Not Elsewhere Classified.

Source: Alaska Department of Labor and Workforce Development, Research and Analysis.

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APPENDIX C: Shortage Occupations

State Training and Employment Program 25

Occupations with Largest Number of Nonresident Workers

Balance of State Alaska 1998

Airplane Pilots & NavigatorsBartendersBookkeeping, Accounting & Auditing ClerksCannery Workers, Including Seafood ProcessorsCarpentersCashiersChild Care Workers, Except Private HouseholdConstruction LaborersCooks, Institution and CafeteriaCooks, RestaurantElectriciansExtractive Occupations, NECFishersFreight, Stock, & Material Movers, NECGeneral Managers & Other Top ExecutivesGeneral Office OccupationsGuidesHand Packers & PackagersHeavy Equipment MechanicsHotel ClerksJanitors & Cleaners, Except Maids/HousemenKitchen Workers, Food PreparationMaids & HousemenMaintenance Repairs, General UtilityManagement Related Occupations, NECManual Occupations, NECMarine Engineers (Shipboard)Miscellaneous Food & Beverage Preparation OccupationsMiscellaneous Hand Working OccupationsMiscellaneous Occupations, NECOperating EngineersPetroleum Technologists & TechniciansProduction Inspectors, Checkers & ExaminersRegistered NursesSailors & DeckhandsSales ClerksShip Captains & MatesStevedoresTeacher AidesTeachers, Elementary & Secondary SchoolsTruck Drivers, HeavyWaiters & WaitressesWelders & Cutters

*Not Elsewhere Classified.

Source: Alaska Department of Labor and Workforce Development, Research and Analysis.

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Workforce Info HomeMonthly Unemployment Rate

Unemployment Climbs in DecemberAlaska’s unemployment rate rose to 7.6 percent in December, up nine-tenths of a percentage point from November’s rate of 6.7 percent. The comparable national rate was unchanged from November to December at 5.7 percent. The average November-to-December increase over the last decade is two to three-tenths of a percentage point, so the magnitude of this year’s increase is noteworthy. At 7.6 percent, the rate is now significantly higher than December 2001’s rate of 6.2 percent. Dan Robinson1/16/2003read more...

Alaska Quick Facts

● Minimum wage in Alaska is $7.15 ($5.15 federal). The increase from $5.65 to $7.15 was effective January 1, 2003 read more...

● Alaska’s July 1, 2002 estimated population was 643,786 open excel file...● Median age of Alaskans from 2000 census was 32.4 years. read more...● Nearly 18% of workers employed in Alaska in 2000 were nonresidents of the state. read

more...● Alaska has nearly the same number of males (51.7% ) as females (48.3%) per 2000

census read more...● Alaska's per capita personal income in 2001 was $30,997.

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Most of the data you find on this web site comes from the Department of Labor and Workforce Development, Research & Analysis Section. However some of the data is collected and disseminated by other state and federal agencies. They are a great resource and we encourage you to browse their web sites.

Alaska State Agencies:Department of Community & Economic Development

Federal Agencies:Bureau of Economic Analysis U.S. Census Bureau U.S. Department of Labor- Bureau of Labor Statistics (BLS)U.S. Department of Housing and Urban Development

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