Narrative: I. b.

Executive Summary

On Tuesday, November 8, 2022, Sarah Huckabee Sanders was elected governor by the people of Arkansas. She became the 47th governor and the first woman elected to lead the state of Arkansas.  Standing firm on her commitment to strengthening Arkansas’ economy and workforce, within her first 40 days in office, she signed an executive order to create the Governor’s Workforce Cabinet and the state’s Chief Workforce Officer.

The executive order: EO-23-16 highlighted the following disparities and goals for the state of Arkansas.

WHEREAS: Arkansans must have the skills to compete for employment in the current job market;
WHEREAS: In Arkansas, approximately six out of ten jobs require credentials beyond a high school diploma, however, less than half of the workforce in Arkansas is credentialed beyond a high school diploma;
WHEREAS: In Arkansas, fewer than fifty percent (50%) of high school graduates attend college or postsecondary training;
WHEREAS: Currently, there are six state agencies in Arkansas state government that provide or coordinate career and technical education and workforce development;
WHEREAS: It is the policy of this Administration to create a single entity to coordinate and to assist in career and technical education, which in turn, will ensure that young adults who are entering the workforce are prepared for high-wage, high-growth careers; and
WHEREAS: The Governor seeks to establish the Governor’s Workforce Cabinet and the Chief Workforce
Officer.

The Arkansas Department of Commerce has established high-level aspirations that are aligned with the Governor’s vision. Division-specific key performance indicators will help Commerce reach those goals.
Three key performance indicators include:
Current 2028 Goal
Labor Force Participation Rate 57.7% 59.4%
Per Capita Income $52,600 $66,500
Real GDP per Capita $45,00 $51,000

Below is a summary of changes that are being implemented by Commerce in coming years.

• The Arkansas Division of Workforce Services (ADWS) will be reorganized into three new divisions: Re-employment, Arkansas Workforce Connection, and Workforce Policy & Innovation in an employer-centric workforce development model.
• Unemployment Insurance will now be called Re-employment and report directly to the Secretary. This is a high profile and incredibly important function that has been undergoing significant and complex system, process and technical change with the UI Modernization project.
• Arkansas Workforce Connection will have the sole focus of executing the various state and federal workforce development programs that are currently in multiple locations across Commerce and coordinating with local workforce development boards. This employer-centric division will also have a significant focus on ensuring we meet our customers’ needs with a comprehensive and consistent effort of customer/business outreach. This division will include (1) the Office of Skills
Development; (2) Employer Workforce Programming that supports new and expanding businesses to meet their workforce needs; (3) Adult Education (Title II); (4) Arkansas Rehabilitation Services (Title IV); (5) Services for the Blind (Title IV); and (6) Employment Services (Titles I and III).
• Workforce Policy & Innovation will be a new group that will be the glue between policy, program and outcome that integrates best practices, measures outcomes, and collaborates with stakeholders to support on-the-ground solutions that operationalize and improve the state’s workforce development strategy. This group will not only be the thinkers and dreamers on how to drive up Arkansas’ labor force participation rate, they will also be responsible for the State Workforce Development Board and ensure federal and state compliance. They will also work with and receive input from – Arkansas Workforce Connection, Re-employment, Arkansas Economic Development Commission (AEDC), external workforce development organizations and employers.

Conclusion
Arkansas employers are facing significant challenges in attracting talent with the skills needed to run and grow their businesses. This is largely due to low labor force participation and educational attainment coupled with an increasingly dynamic labor market with evolving skill requirements. Many Arkansans are underemployed or detached from the labor force, and facing challenges with poverty, food insecurity, housing, health, and criminal justice system involvement.
Solving these challenges can lead to improved employer productivity and growth; attraction of new business and industry; improved educational, credential, and skill attainment; improved population health and economic security; reduced recidivism; and increased efficiency and effectiveness at all levels.

With limited funding,  meeting these goals will require increased efforts to leverage resources, foster strategic partnerships, and implement innovative solutions.  Arkansas’ Program Year (PY) 2024-2027 WIOA Combined State Plan seeks to outline the vision and strategies to address the aforementioned challenges and achieve the governor’s workforce development
goals.