Narrative: II. a. 1. B.

Workforce Analysis

To gain a better understanding of the workforce trends in the State of Colorado, state level data was compiled to have a holistic view of the workforce. The Talent Pipeline Report was published to guide Colorado towards its workforce goals. This document, in addition to labor market data from the Colorado Department of Labor and Employment (CDLE), was used to create the workforce analysis.

Employment and Unemployment

Unemployment levels in Colorado, however, vary substantially based on individuals’ educational attainment. In 2018, unemployment in Colorado hovered at 2.6 percent for people with some college or an associate’s degree and at 2.4 percent for an adult with a bachelor’s degree or higher—lower than the unemployment rate for high school graduates (3.8 percent) and for those with less than a high school education (3.2 percent). Average earnings continue to be higher for those with higher levels of education

Source: Current Population Survey, 2018; 2018 American Community Survey, 1-year Estimates 

There are fluctuations in the unemployment rate by region of the state as well. A review of the unemployment rate for MSAs shows unemployment in October 2018 ranging from 2.8 percent (Boulder-Longmont MSA and Fort Collins-Loveland MSA) to 4.9 percent in the Pueblo MSA.

Colorado Unemployment by MSA

Source: Colorado Dept. of Labor and Employment, Labor Market Information

The 2019 Colorado Talent Pipeline Report explored the unemployment dynamics for special populations within the state’s workforce. The rate of individuals identified with specific barriers is shown in the table below.

Youth Unemployment: The youth unemployment rate (ages 16 to 19) remained quite elevated throughout and following the Great Recession; more recently it has seen improvement. In 2018, the youth unemployment rate stood at 14.5 percent. However, the rate is still very high for black or African American youth, in particular, at 25.9 percent (Current Population Survey).

Veterans: Unemployment rates for veterans are slightly elevated as compared to non-veterans. Employment services for recently separated veterans play a critical role in the successful transition from military to civilian employment. The Colorado Department of Labor and Employment provides specialized services that are available only for eligible veterans, such as individualized job search assistance and case management for veterans with a service-connected disability or other barriers to employment, vocational and work-based training, as well as job fairs and hiring events specifically for veterans. Veteran-specific services are provided by Veteran Employment Representatives (VER)—highly trained staff who are themselves veterans, and understand many of the challenges that veterans face.

One considerable veteran-specific issue is that many transitioning veterans have training and expertise in critical skill areas, but lack the civilian credentials necessary to obtain employment in their career field. The Colorado Department of Labor and Employment, Department of Regulatory Agency and Department of Higher Education are working together to identify military occupations that need civilian credentialing and licensing, compare military training with civilian requirements, and develop pathways to expedite the training and credentialing process. 

Individuals with Disabilities: Frequently the first, and most intractable barrier underemployed or unemployed Coloradans with disabilities face is an overemphasis on what is expected that he or she cannot, should not, or is not doing. The lack of balance between a focus on functional limitation rather than on the person’s talent and ambitions is expensive and wasteful. The workforce development system in Colorado is committed to providing the high quality services necessary to prepare individuals with disabilities to compete for jobs and fully participate in Colorado’s workforce. Colorado currently ranks 9^th in the nation for employment of individuals with disabilities. There are just over 300,000 Coloradans with disabilities, representing 8.9% of the State’s population. 41.6% of these individuals are employed compared to 79.1% of Coloradans who do not have a disability. When compared nationally, Coloradans with disabilities fare slightly better than the national average. However, there is still significant work to be done to improve the employment prospects of individuals with disabilities in Colorado, including encouraging participation in the workforce by individuals with disabilities through increased understanding of the supports available to promote their success, and ensuring those who seek to work have opportunities to do so in competitive integrated employment.

The Division of Vocational Rehabilitation (DVR) leads the way by providing the full range of rehabilitation services, including one-on-one vocational guidance and counseling, necessary to understand and mitigate the ways a disability may impede the capacity to show and apply talent at work. In Program Year 2018, DVR assisted 2009 Coloradans with disabilities to achieve their employment outcomes of obtaining, retaining, regaining, or advancing in competitive integrated employment. These workers earned an average of $14.69 an hour, working 28.3 hours a week on average. DVR further works with employers and community partners to increase opportunities for employment, career advancement, and economic gain for eligible Coloradans with disabilities. In addition to the work of DVR, all Workforce Centers are compliant with Section 188 of the Workforce Innovation and Opportunity Act, ensuring physical and programmatic access to all services and benefits available throughout the workforce development system. Ensuring Physical and programmatic accessibility is also a component of the state’s certification policy for one-stop centers, which will help to further ensure that all customers can access services in all parts of the state.

When individuals with disabilities can access services effectively and efficiently, they not only benefit from being productive members of the workforce, but the state benefits from a population that relies less heavily on social services; it is crucial to sustain a supply of capable workers that will continue to grow Colorado business while attracting others to the state.

Long-term Unemployed: The long-term unemployed, (individuals out of work for 26+ weeks), face a unique combination of social, emotional, and skill deficiencies caused by the duration of their unemployment. These deficiencies require intensive “wraparound” services to address these issues effectively, while rapidly moving individuals to paid work experience and reemployment. Currently, there are 19,000 individuals considered long-term unemployed; during the same period the year before there were 21,000 individuals who were considered long-term unemployed.

The share of long-term unemployed out of all unemployed persons also continues to decrease: currently, the long-term unemployed make up less than one fifth of all unemployed (Bureau of Labor Statistics, 2018). Credit for this drop can be attributed to Colorado’s improved economy, as well as to concentrated public and private initiatives. 

Labor Market Trends

The 2018 Talent Pipeline Report notes that by the year 2020, it is estimated that 64 percent of all jobs, nationally, will require post-secondary education. In Colorado, however, 74 percent of all jobs statewide and 86% of tier 1 top jobs will require some level of post-secondary education or training by the year 2020, well exceeding the national average. Relative to the rest of the nation, Colorado has a highly educated adult population. However, Colorado’s existing labor force has a credential attainment of 57%, illustrating a significant gap between actual and required postsecondary credential attainment in the state.

More jobs are expected to require higher levels of education in the coming years. To meet emerging employer demand, Colorado will need to increase postsecondary credential production by 1.8% per year in order to meet the goal set by the Colorado Department of Higher Education of 66 percent post-secondary certificate or degree attainment level for Coloradans ages 25 to 34 by 2025.

Additionally, comprehensive state level data show that several industries and occupations are on the incline while others will continue to decline over the next 10 years.

As noted in the Talent Pipeline Report, health care and social assistance will add an additional 91,122 jobs to the economy over the next ten years. The subsectors that will experience the most growth are:

• Offices of Other Health Practitioners (12,626 jobs)
• Individual and Family Services (12,148 jobs)
• Home Health Care Services (10,709 jobs)
• Offices of Physicians (8,469 jobs)

Professional, scientific and technical services will add an additional 52,559 jobs over the next ten years. The Computer Systems Design Services subsector will add an additional 16,742 jobs over the next ten years while the subsectors of Management, Scientific, and Technical Consulting Services, Architectural, Engineering, and Related Services, and Accounting, Tax Preparation, Bookkeeping, and Payroll services will add 11,350; 9,344; and 4,823 jobs respectively.

Education and Skill Levels of the Workforce

It is important to note that there are significant disparities in educational attainment by race ethnicity. Identifying these gaps is important in addressing overall workforce preparedness due to its impact on the development of the state economy. In Colorado, 26.2 percent of Hispanic adults (25-34 years old) have a college degree, whereas 58.9 percent of non-Hispanic white adults 25-34 years old have a degree. Due to these statistics, Colorado foresees needing additional support for those in underserved populations due to the impact of educational attainment on the long term sustainability of the workforce.

One variable that complicates analysis of a state’s workforce supply are interstate migration patterns. Typically, people with higher levels of education tend to have higher levels of geographic mobility, so while Colorado may lose a portion of educated Coloradans to out-of-state opportunities, the state still attracts a large share of highly educated people. While Colorado has consistently been able to attract qualified talent from outside of Colorado historically, in-state migration is projected to slow over the next 20 years, impacting Colorado’s talent pipeline as older skilled workers continue to retire in large numbers.

Skill Gaps

During the development of the Colorado Talent Pipeline Report, the Colorado Department of Education, Department of Higher Education, and the Colorado Workforce Development Council collaborated to identify the skills that will ensure Coloradans are prepared for work or education beyond high school. Through facilitated discussions with business and industry, education, higher education, non-profit organizations, government stakeholders, and students, core skills were identified for more than 100 established, industry-developed competencies that are necessary for success beyond high school. These core skills are included below and will be a focus on the workforce and education programs driven by sector partnerships and career pathways in the state. Across industry, as measured by O*NET scores, the most in-demand skills include:

• Critical thinking
• Active listening
• Reading comprehension
• Speaking
• Judgment and decision making
• Complex problem solving

Colorado’s Graduation Guidelines are intended to assist students in gaining work-ready skills while in high school. At the secondary level, the goal is for all students to understand and articulate their individual skill-set, how they relate to potential careers and jobs, and graduate with these in-demand skills from high school. Colorado industry representatives are clear that students who graduate from high school and seek to work in Colorado need in-demand skills that meet business, industry, and higher education standards. Graduation guidelines are a roadmap to help students and their families plan for success after high school by demonstrating their knowledge, skills and abilities to enter the workforce, military or higher education without significant training or remediation. The expected K-12 Outcomes include Academic Competencies, Professional Competencies, Entrepreneurial Competencies, Personal Competencies, and Civic Competencies. As shown below, each of the most needed skills align with at least one of the expected K-12 Outcomes.

While the opportunity therefore exists for students to exit the K-12 system with necessary skills, employers communicate that they struggle finding individuals who have the necessary professional competencies to perform, even in low-skill jobs. Additionally, as stated above, 64 percent of the top jobs list are for occupations that typically require some level of formal postsecondary education or training for entry, whether it is an employer-sponsored formal training program, apprenticeship, certificate or degree. Colorado continually works with industries to identify the skills and competencies needed for critical occupations. This process is done with education at the table so that training providers can make informed decisions about program and curriculum shifts that may be needed to ensure in-demand skills are being taught to students.