Narrative: II. a. 1. B.

Minnesota ranked second in the country in postsecondary educational attainment However, significant educational gaps exist between groups. Minnesota’s priority to address not only a workforce shortage but also a growing demand for the need for a skilled workforce is validated by current and future projections in postsecondary enrollment in higher education. Minnesota’s population growth in racial ethnicity provides opportunity to fill the workforce demand however, the ever-growing gaps in education and skill attainment needs to be addressed to meet employer demands. Not only are there fewer racially diverse individuals entering post-secondary institutions but there are increasing needs for remedial education for these populations. Population growth for the state is from diverse populations growing to 20% by 2020 from a mere 4% in 1980. By 2025, 70% postsecondary attainment rates for ages 25-44. 70% postsecondary attainment rate for each race-ethnic group. Interim benchmarks for each race-ethnic group. Methodology for estimating postsecondary certificate attainment in Minnesota. DEED’s Labor Market office will soon roll-out a new data tool, workforce alignment system to better align, measure, and provide crosswalks between occupational openings and the educational requirements of each occupation. This tool will provide better data and projections for occupational openings, educational requirements, and placements of graduates. The NGA Talent Pipeline Policy Academy brought together six state agencies and Minnesota State (post-secondary) which led to ten goals to address talent from early childhood through the retiring worker. Five of these goals supported the World’s Best Workforce legislation around K-12 which provided an opportunity to build the continuum through adults. Two goals emerged as the state priority to address disparities gaps in education and employment acknowledging our call to action to eliminate these gaps and develop the skills with individuals with the most barriers. Minnesota’s state plan has been developed with a focus on addressing the needs of our current and future workforce. While overall, Minnesota is a highly-educated state, the data demonstrates our need to address the opportunities for individuals of color, individuals with disabilities, at-risk or out of school youth, veterans, and long-term unemployed individuals. With the passing of WIOA, the GWDB identified five in-demand industry sectors that represent greatest opportunity for employment with livable wages and industries that provide occupational growth through career pathways. These industries at the highest NACIS level include; construction, manufacturing, healthcare, natural resources, and professional and business services. Minnesota has sixteen local workforce areas and six regional workforce development areas under WIOA. Our action plans for these six regions provided guidance for the regional plans which focus on; equity and the disparities gaps, sector strategies to engage business and industry to develop training/industry recognized credentials/employment, and strategies to align and leverage resources and assets of the region to build from their key industry sectors. The six regions submitted regional plans in June 2016 which were reviewed and in the process of modifications for submission in February 2017. The GWDB will oversee these regional plans, provide input through their board representation, evaluate, and disseminate best practices. These action plans support the state (strategic) plan for the state and the GWDB. Partners in this combined plan will all serve on a results based accountability sub-committee of the GWDB to provide guidance and direction. The regional plans address individuals served through all the combined plan partners; youth, out-of school youth, TANF/SNAP recipients, Adult Basic Education, K-12, dislocated workers, WIOA Adult, UI, WP, Senior Employment, Migrant seasonal farmworkers, CTE, Perkins, Veterans, and all jobseekers. Minnesota’s focus on industry sectors, employer engagement, priority to serve individuals with barriers, and measuring outcomes will result in innovative solutions to address the workforce challenges that the state faces today and in the future. Minnesota has long been recognized as a state with a well-educated workforce. Based on 2014 American Community Survey estimates, 92.6 percent of all Minnesota residents 25 and older have a high school diploma, the 2nd-highest share in the nation.

The state also ranks 11th in share with a bachelor’s degree or higher at 34.3 percent, which increases to an 8th-highest 39.6 percent when limited to young (25 to 34) residents. However, these exemplary statistics conceal additional dimensions of our racial imbalances that need to be addressed. Among black Minnesotans alone, the share of the population 25 and older with a high school diploma is 80.9 percent, a share that ranks 42nd in the nation. It is widely recognized that this educational gap is a key underlying factor in the employment disparities that this plan addresses. Racial disparities notwithstanding, overall Minnesota’s high level of educational attainment is enough to meet the educational requirements of current jobs and of jobs projected to exist in Minnesota’s economy at least through 2024. In fact, by this aggregate measure, the only shortages that will exist by education level are for jobs requiring only a high school diploma or less (see table below). The table below illustrates the relationship between the educational attainment of the current workforce and the education requirements of jobs projected to exist in Minnesota’s economy in 2024.

Educational Attainment of Population 25 years and over, 2014

-	Educational Attainment of Population 25 years and over, 2014	Projected Employment in 2024 (DEED Employment Projections 2014-2024	Projected Employment in 2024 (DEED Employment Projections 2014-2024)
-	-	Number of Jobs	Surplus (Shortage)
Less than HS Diploma	275,444	689,637	(414,193)
High school graduate (includes equivalency)	943,854	1,102,289	(158,435)
Some postsecondary education, no degree (includes vocational training)	793,278	307,169	486,109
Associate’s degree	403,984	248,398	155,586
Bachelor’s degree	833,676	676,904	156,772
Graduate or professional degree	426,020	112,602	313,418
TOTAL	3,676,256	3,137,000	539,256

Although Minnesota appears to have a sufficient supply of educated workers to meet the demands of employers at least through 2024, gaps may exist or arise in certain occupations and/or geographic regions that require specialized skills and/or education beyond a high school diploma, particularly as the labor market tightens. For this reason, DEED has been and will continue to develop new informational products and website tools to provide career guidance to those choosing whether and where to pursue additional education and training. One such tool is the Labor Market Information Office’s Career Profiles (http://mn.gov/deed/data/data-tools/career-profile/), an all-in-one source for career explorers to learn about an occupation’s employment conditions (wages, growth, vacancies, etc.), educational requirements, appropriate instructional programs, and post-secondary offerings, tasks and required skills and abilities, related occupations, and direct links to currently available job openings.

In addition, the LMI Office is developing a method for measuring workforce alignment that involves identifying the number of graduates of various instructional programs and aligning them with the number of occupational positions that these graduates are now qualified to fill. Career explorers could then identify educational programs that are expected to yield good employment opportunities for graduating student. These tools will provide the information necessary to best align the choices students make regarding major with the occupational opportunities being created by Minnesota’s employers.

Skill gap analysis is a strategic function at the regional level. Regional planning includes the selection of key growth sectors and occupations in demand that lead to family sustaining wages. The diversity of Minnesota’s economy requires this type of approach to best meet the needs of business and industry across the state. The LMI data described through this section of the plan is provided on a regional basis and is assisting regions with articulating their skill gaps and the alignment of system resources to more effectively address those gaps.

The approach to filling those gaps can be illustrated by considering the 307,169 Minnesotan’s who have some postsecondary education, but no degree. If a region has selected an occupation in demand within a sector strategy that requires a 1 year certificate, that gap for individuals in this category can be articulated relatively easily by looking at the gaps in skills that could direct educational and training design to fill those gaps, whether it be classroom or work-based, such as an apprenticeship.

Job Seekers participating in this type of approach would also be assessed for gaps in support needs, such as child care, transportation and other basic needs. Minnesota’s FastTRAC programs represent the fundamental basis for our design of career pathways. The goal is to provide the shortest successful path to educational/credential attainment and transition into occupations in demand.