Located in:
- II. Strategic Elements
The Unified or Combined State Plan must include a Strategic Planning Elements section that analyzes the State’s current economic environment and identifies the State’s overall vision for its workforce development system. The required elements in this section allow the State to develop data-driven goals for preparing an educated and skilled workforce and to identify successful strategies for aligning workforce development programs to support economic growth. Unless otherwise noted, all Strategic Planning Elements apply to Combined State Plan partner programs included in the plan as well as to core programs. Where requirements identify the term “populations”, these must include individuals with barriers to employment as defined at WIOA Section 3. This includes displaced homemakers; low-income individuals; Indians, Alaska Natives, and Native Hawaiians; individuals with disabilities, including youth who are individuals with disabilities; older individuals; ex-offenders; homeless individuals, or homeless children and youths; youth who are in or have aged out of the foster care system; individuals who are English language learners, individuals who have low levels of literacy, and individuals facing substantial cultural barriers; farmworkers (as defined at section 167(i) of WIOA and Training and Employment Guidance Letter No. 35-14); individuals within 2 years of exhausting lifetime eligibility under the Temporary Assistance for Needy Families program; single parents (including single pregnant women); and long-term unemployed individuals. Additional populations include veterans, unemployed workers, and youth, and others that the State may identify.
- a. Economic, Workforce, and Workforce Development Activities Analysis
The Unified or Combined State Plan must include an analysis of the economic conditions, economic development strategies, and labor market in which the State’s workforce system and programs will operate.
- a. Economic, Workforce, and Workforce Development Activities Analysis
II. a. 1. C. Comparison of Economic and Workforce Analytical Conclusion. Describe areas of opportunity for meeting hiring, education, and skills needs identified in the economy compared to the assets available in the labor force in the state.
Current Narrative:
Arkansas is a diverse state in both available workforce and industries. Arkansas employers face an opportunity with helping their staff develop the critical skills needed for the modern workforce. The diversity of post-secondary colleges and universities work collaboratively with industry to provide the training and education needed. Arkansas’ labor market continues to be strong with a lower unemployment rate than the national average. In recent years, the ratio of unemployed persons per job opening in the state has been near historic lows. Rural areas are experiencing population and labor force declines while central and northwest Arkansas are experiencing nearly all the population, labor force, and job growth in the state.
Retail, food production, gas stations and related industries are the backbone of Arkansas’ economy. Arkansans are eating out more leading to substantial growth in the food services sector. Arkansas’ aging population is driving the increased need for healthcare services, health practitioners, and healthcare support workers. Arkansas currently is projected to need healthcare providers on many fronts, largely impacting the following occupations: nurse practitioners, nursing assistants, home & personal care aides, childcare workers, medical assistants, specific practitioners, and multiple human services occupations.
Many in the workforce face difficulties in working that WIOA partners can help address. The positive correlation between education and economic growth continues to track beyond high school and into postsecondary outcomes. First, a college degree is crucial to increasing a person’s earning potential. Second, the economic gains of postsecondary education aren’t limited to individuals.
In Arkansas, Labor Force Participation (LFP) Rates were at their highest in the early and mid-1990s. The highest rate ever reached was 64.2%, which occurred several times in 1994 and 1995. Comparable rates were reached again in 2005 (63.3%) but have steadily declined since then. LFP Rates in Arkansas reached a new low of 56.6% in September 2021 but have since rebounded slightly and fluctuated between 57.4% - 57.7% in 2022. The latest data available shows Arkansas’ LFP Rate at 57.4% in March 2023 (Bureau of Labor Statistics, 2023).
There is a direct correlation between increased educational attainment and lower levels of unemployment. People with higher education levels also earn more on average than those with lower education levels. According to the Current Population Survey, educational attainment also has an impact on Labor Force Participation Rates. In this study, Labor Force Participation in Arkansas: A Comprehensive Study May 2023, those with higher educational attainment are also more likely to be active in the Labor Force. In 2022, Arkansans (Age 25+) with less than a High School Diploma participated in the Labor Force at a rate of 38.8%. Arkansans with a bachelor’s degree or higher (Age 25+) had a LFPR of 66.8%.