Narrative: II. a. 1. B.

Workforce Analysis: Population In 2014 it was estimated that Maryland had a population of 5,976,407, which had risen from the 2013 estimate of 5,938,737. Maryland has exhibited positive growth in population and is projected to continue to increase to a level of 6,429,750 by 2025. Maryland is home to a diverse population with the three major races represented being White (60.1 percent), Black or African American (30.3 percent), and Asian (6.4 percent). In regards to ethnicity, Maryland is 9.3 percent Hispanic or Latino. Gender is equally distributed, with females accounting for 51.5 percent of the population. In 2014, the median age of Marylanders was 38.2 years and the distribution of people by age categories was similar to that of the U.S. Maryland is home to a well-educated population and ranks third in the nation for percent of population with a graduate degree or higher. However, 6.3 percent of Maryland’s workforce possesses a 9th to 12th grade education level and 4 percent have less than a 9th grade level education.

Most Maryland residents work in Maryland, with more than 80 percent of working residents holding primary jobs within Maryland. Montgomery County accounted for the largest share, nearly 15 percent, of primary jobs held by employed Maryland residents. Baltimore City and Baltimore County followed closely, accounting for approximately 13 and 12 percent respectively. Working Maryland residents also commuted to locations outside of Maryland.

The District of Columbia and Virginia were the two most popular destinations, accounting for approximately 10 and 5 percent of primary jobs respectively. Pennsylvania and Delaware tied for the third most popular out-of-state destination with nearly one percent of jobs each. Additionally, residents from other states commute in to Maryland for work. Most out-of-state workers come from Virginia, which accounts for nearly four percent of jobs. Pennsylvania and the District of Columbia follow closely, accounting for three and two percent respectively. West Virginia and Delaware round up the Mid-Atlantic region with a one percent share of Maryland’s primary jobs being held by residents of those states. It is important to note that although these commuting patterns describe the state as a whole, the percentage of out-of-state workers varies by workforce area. For example, Western Maryland has a higher percent, more than 5 percent, of residents whose primary jobs are located in West Virginia, and nearly 14 percent of primary jobs in Western Maryland are filled by workers commuting in from Pennsylvania. The same is true with the Upper Shore, with Delaware accounting for more than 5 percent of primary jobs held by Maryland residents and more than 6 percent of primary jobs in the Upper Shore being held by workers commuting in from Delaware.

Ensuring that all of Maryland’s workers have the skills they need to compete in the global, regional, and local economies, Maryland’s WIOA Partners are dedicated to ensuring that opportunities are available to adult learners who wish to obtain their high school diploma through passage of the GED® Test or through the National External Diploma Program. Maryland’s integration of adult learning opportunities into workforce development programming serves as a national model, especially in light of the provisions of WIOA. Additionally, many of Maryland’s EARN grantees emphasize the need for participants who do not otherwise have their high school diploma to obtain the same through GED® preparation and literacy advancement. Both the employers who participate in the EARN Maryland program and DLLR’s Youth Apprenticeship Advisory Committee have identified the need to incorporate soft skills training into workforce development programming. The need for soft skills training is an emerging theme within almost all of the EARN Maryland workforce training plans, regardless of industry, region or subset of the workforce.

Soft skills, also known as essential skills, are an important component of job-readiness training. Examples of soft skills include, but are not limited to, skills related to professionalism, problem-solving, timeliness, interpersonal communication and customer service. Many employers who participate in the EARN Maryland program have stated that soft skills are equally as important as the hard skills, or technical skills, that are necessary to be proficient in a career. EARN Maryland’s partnerships are implementing soft skills training in the classroom, as well as modeling on-the-job work experiences throughout the training program. Time management, customer service, personal appearance, appropriate conduct and personal responsibility are all essential skills identified by DLLR’s Youth Apprenticeship Advisory Committee as important skills needed for the development of a youth apprenticeship talent pipeline. The Committee, formed to evaluate the effectiveness of existing high school youth apprenticeship programs in the State, other states, and other countries, concluded in its initial report outlining the steps the State needs to take in order to establish apprenticeship opportunities in both traditional and non-traditional apprenticeable fields.

Workforce: Characteristics of the Employed Those who work in the state of Maryland are not just Maryland residents, but also include commuters from Virginia, Pennsylvania, and the District of Columbia. Maryland’s workers are predominantly 30 to 54 years of age; however, a sizeable portion of workers are 55 years or older indicating that replacement needs could be high in the near future (See Graph 8). Maryland’s workers are well-educated with 34 percent having a Bachelor’s or advanced degree; however, 11 percent of those employed in Maryland possess less than a high school degree (See Graph 7).

Workforce: Characteristics of the Unemployed Maryland’s unemployment is not equally distributed among demographic groups, or geographic areas as is later shown, and poses unique opportunities and challenges for the state. Maryland’s youth, certain minority groups, and those with fewer credentials face higher unemployment rates and makeup a smaller portion of those employed in Maryland (See Graphs 8 and 9).

Employment and Unemployment Trends Maryland has been fortunate to maintain an unemployment rate that is better than or on par with that of the United States. The annual unemployment rate (not seasonally adjusted) in Maryland has exhibited a downward trend since 2010 and from 2013 (annual average) to 2014 (annual average) decreased by 0.8 percentage points (BLS, 2015). Maryland’s labor force averaged 3,111,329 persons in 2014, slightly down from 3,124,102 in 2013. From 2013 to 2014, the number of employed persons rose by 0.4 percent and unemployed persons decreased by 12.3 percent. Maryland’s labor force participation rate remained relatively constant over the course of 2014, hovering around 66 percent (BLS, 2015).

As previously alluded to employment and unemployment are not equally distributed across the state, which creates an additional complexity in forming policies aimed at curbing unemployment in Maryland. The eastern shore of Maryland, especially the counties of Dorchester, Somerset, and Worcester, experienced high unemployment rates in 2014. Additionally, Baltimore City, a large urban area, has consistently exhibited higher unemployment rates than those of the State as a whole. On a positive note, the unemployment rate fell in all areas from 2013 to 2014 (See Figure 1 and 2).

In terms of individuals with barriers to employment, youth, individuals with disabilities, and low-income individuals have higher rates of unemployment in comparison to Marylanders in general. According to the American Community Survey (ACS) estimates, in 2014 123,117 Marylanders with a disability were employed with individuals with an ambulatory difficulty accounting for the largest share with an estimated employment of 43,335 (See Table 7). In 2014, there were 24,360 unemployed persons with a disability in Maryland. Those with a cognitive disability accounted for the largest share with nearly 13,000 individuals unemployed (See Table 7). It is important to note that those with disabilities have a higher rate of unemployment than Marylanders with no disability and also have a lower labor force participation rate.

Maryland Estimate Total: 3,737,434 In the labor force: 3,015,521 Employed: 2,799,997 With a disability: 123,117 With a hearing difficulty 30,829 With a vision difficulty 25,679 With a cognitive difficulty 37,622 With an ambulatory difficulty 43,335 With a self-care difficulty 11,142 With an independent living difficulty 22,517 No disability 2,676,880 Unemployed: 215,524 With a disability: 24,360 With a hearing difficulty 3,409 With a vision difficulty 4,738 With a cognitive difficulty 12,975 With an ambulatory difficulty 10,584 With a self-care difficulty 2,613 With an independent living difficulty 5,121 No disability 191,164 Not in labor force: 721,913 With a disability: 167,451 With a hearing difficulty 21,617 With a vision difficulty 29,022 With a cognitive difficulty 78,703 With an ambulatory difficulty 101,690 With a self-care difficulty 38,416 With an independent living difficulty 77,715 No disability 554,462

Table 7: Employment Status of Individuals with Disabilities; Source: Census, 2015

According to ACS 2014 estimates, youth experience much higher unemployment rates, especially those 16 to 19 years of age (See Table 8). For older workers, they enjoy a relatively low rate of unemployment in Maryland (See Table 8).

Maryland Male Female Total 16 to 19 years: 157,216 150,386 307,602 In labor force: 55,678 57,556 113,234 In Armed Forces 2,320 815 3,135 Civilian: 53,358 56,741 110,099 Employed 39,231 46,423 85,654 Unemployed 14,127 10,318 24,445 Not in labor force 101,538 92,830 194,368 20 and 21 years: 82,886 79,791 162,677 In labor force: 55,043 55,129 110,172 In Armed Forces 2,851 709 3,560 Civilian: 52,192 54,420 106,612 Employed 42,457 45,522 87,979 Unemployed 9,735 8,898 18,633 Not in labor force 27,843 24,662 52,505 55 to 59 years: 197,682 217,621 415,303 In labor force: 159,596 158,652 318,248 In Armed Forces 110 0 110 Civilian: 159,486 158,652 318,138 Employed 151,039 151,119 302,158 Unemployed 8,447 7,533 15,980 Not in labor force 38,086 58,969 97,055 60 and 61 years: 69,476 75,709 145,185 In labor force: 49,495 48,451 97,946 In Armed Forces 0 41 41 Civilian: 49,495 48,410 97,905 Employed 47,223 45,998 93,221 Unemployed 2,272 2,412 4,684 Not in labor force 19,981 27,258 47,239 62 to 64 years: 93,553 110,932 204,485 In labor force: 58,236 60,123 118,359 In Armed Forces 0 0 0 Civilian: 58,236 60,123 118,359 Employed 55,576 57,430 113,006 Unemployed 2,660 2,693 5,353 Not in labor force 35,317 50,809 86,126 65 to 69 years: 128,476 151,857 280,333 In labor force: 56,381 51,835 108,216 Employed 54,216 49,815 104,031 Unemployed 2,165 2,020 4,185 Not in labor force 72,095 100,022 172,117 70 to 74 years: 90,519 108,165 198,684 In labor force: 24,593 18,072 42,665 Employed 23,443 17,401 40,844 Unemployed 1,150 671 1,821 Not in labor force 65,926 90,093 156,019 75 years and over: 134,548 208,606 343,154 In labor force: 13,738 10,515 24,253 Employed 13,193 10,031 23,224 Unemployed 545 484 1,029 Not in labor force 120,810 198,091 318,901 Table 8: Employment Status by Age; Source: Census, 2015

In Maryland, veterans experience a lower unemployment rate than is experienced by Marylanders who are nonveterans according to the 2014 ACS data (See Table 9).

Maryland Estimate Total: 3,778,919 Veteran: 224,299 In labor force: 185,203 Employed 176,677 Unemployed 8,526 Not in labor force 39,096 Nonveteran: 3,554,620 In labor force: 2,830,422 Employed 2,623,424 Unemployed 206,998 Not in labor force 724,198 Table 9: Employment Status for Veterans and Nonveterans; Source: Census, 2015 Lastly, for those Marylanders with income below the poverty level the unemployment rate is much higher than those with income levels at or above the poverty level (See Table 10).

Maryland Total: 4,634,898 Income in the past 12 months below poverty level: 435,201 Male: 181,690 In labor force: 87,449 Employed 60,277 Unemployed 27,172 Not in labor force 94,241 Female: 253,511 In labor force: 105,472 Employed 73,425 Unemployed 32,047 Not in labor force 148,039 Income in the past 12 months at or above poverty level: 4,199,697 Male: 2,013,033 In labor force: 1,542,596 Employed 1,450,605 Unemployed 91,991 Not in labor force 470,437 Female: 2,186,664 In labor force: 1,477,747 Employed 1,398,906 Unemployed 78,841 Not in labor force 708,917 Table 10: Poverty and Employment Status; Source: Census, 2015

Skills Gap Analysis

As the State continues to recover from the recession, job growth is expected to continue across many sectors, leading to an increase in overall hiring demand. Moreover, employers often cite difficulty in recruiting and hiring qualified, trained candidates. To ensure employers have the talented workforce necessary to compete and grow, it is essential that the workforce system understand and address any existing skills gaps.

Through 2020, several sectors are expected to experience a substantial increase in hiring demand, including healthcare, hospitality and tourism, business services and education. According to the National Skill Coalition’s Maryland’s Forgotten Middle-Skill Jobs, many of these jobs will be classified as middle-skill, which comprises the largest share of jobs in Maryland. Healthcare has the largest portion of middle-skill jobs available, with 38 percent. Other sectors that have a significant number of middle-skill jobs include bioscience and information technology, with 13 percent identified as middle-skill, and business services and construction reporting 12 percent. Despite hiring demand and a large number of available middle-skilled jobs, employers report difficulty in hiring for these positions.

One-third of the State’s workforce is comprised of individuals who either have not earned a high school diploma, or identify high school as the highest attainment of education. Additionally, ninety percent of the State’s adult education enrolled participants are below the high school level of skills. Typically, educational attainment correlates with occupational skill level, meaning one with low educational attainment will likely be suited to perform a low-skill job. This disparity highlights the need to provide greater access to training opportunities, such as pre-apprenticeship and Registered Apprenticeship, to low-skilled workers so that they can acquire the skills and credentials to qualify for middle-skill jobs.

The Job Opportunities Task Force recently released a study on youth and workforce development. Disconnected youth, who are neither working nor enrolled in school, make up a significant portion of the unemployed population. These youth often face significant barriers to employment, including low math and reading skills, a history of incarceration, and mental health issues. It is imperative that these barriers be removed before or during participation in skills training to ensure the individual is ready to work upon completion of training.

While technical skills are essential to job performance, employers identify essential skills, such as professionalism, problem-solving, timeliness, interpersonal communication, and customer service, as critically important, yet lacking in many candidates. To ensure employers have the talent they need to compete and grow, essential skills development should be integrated into training curricula across all industries.

As detailed in this Plan, Maryland has identified several target jobseeker populations that the WIOA system will work to support. The State has conducted a literature review to identify key barriers to employment for each target population:

Barriers to Employment

Maryland is committed to ensuring its target jobseeker populations receive the support they need to increase their earning capacity and self-sufficiency. To more deeply understand the barriers the State’s target populations face, Maryland will establish Jobseeker Advisory Focus Groups to engage jobseekers. The focus groups will ensure that the WIOA Partners are continually aware of the barriers faced by jobseekers and workers in securing and maintaining stable employment, and earning a family-supporting wage.

Engagement of focus groups will allow the WIOA Partners to further develop an understanding of how processes could be streamlined and services could be enhanced from the customer’s perspective. Members of these focus groups will help identify and validate skill(s) gaps and barriers to employment by providing first-hand information on how WIOA programs can more effectively and efficiently help jobseekers.