Creating Pathways to High-Demand Career Opportunities, January 31, 2023
Summary
A draft document titled Creating Pathways to High-Demand Career Opportunities, dated January 31, 2023, prepared for the Michigan House of Representatives Economic Development and Small Business Committee. It states the mission of expanding economic opportunity and prosperity for all and sets out the LEO Strategic Plan for FY22 – FY26 with strategic focus areas. It reports jobless rates, labor force participation rates and median annual wages by educational attainment, citing the Current Population Survey and MiSchoolData. It describes programs including Michigan Reconnect, described as tuition-free education for adults 25 and older, the Going PRO Talent Fund, launched in 2014, and the Tri-Share Child Care Program.
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“Creating Pathways to High-Demand Career Opportunities, January 31, 2023.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-01-31-testimony-hecon-2023-michigan-department-of-labor-and-econo-3d4c2acd0b/
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Michigan House of Representatives
Economic Development and Small Business Committee
DRAFT
January 31, 2023
Creating Pathways to
High-Demand Career
Opportunities
Mission
Expand economic opportunity and prosperity for all.
Vision
Make Michigan a place where all people, business and
communities have the educational and economic means to reach
their full potential.
LEO Organizational Chart
STRATEGIC FOCUS AREAS
A Close equity gaps
Prioritize closure of socioeconomic / demographic opportunity gaps in all decision making.
B Create better jobs and support small businesses
Become the benchmark of economic development by supporting the creation of good
Building a and promising jobs that make Michigan’s economy more resilient, while implementing the
state’s first small business strategy that includes focusing on microbusinesses. Address
talent shortages in current and future growth sectors in every region of the state.
Stronger
Michigan C Educate Michiganders and grow the middle class by removing barriers to
employment
Support education, training, onramps, certifications to make sustaining wages more
attainable. Address barriers including housing, transportation, healthcare, childcare,
language, and placement. Address talent shortages in current and future growth
sectors in every region of the state.
D Protect and enhance health, safety, and economic security for workers
Ensure safe working conditions, fair wages, and labor protections
E Build strong communities and have great places to live
LEO Strategic Plan Create a strong foundation for communities to grow by making historic investments
FY22 – FY26 in broadband, housing, and other critical infrastructure. Invest in developing vibrant
places with rich amenities.
Education Offers Hope For Better Outcomes
Jobless rates tend to be much higher for individuals without a high school diploma
or those without additional education beyond a GED. Labor force participation rates
are also lower for these groups.
Jobless Rate Labor Force Participation Rate
8.8% 70.7%
60.6%
51.5%
5.4%
35.4%
4.1%
2.2%
Less Than a High School Some College Bachelor's Less Than a High School Some College Bachelor's
High School Graduates, or Associate Degree High School Graduates, or Associate Degree
Diploma No College Degree and Higher Diploma No College Degree and Higher
Source: Current Population Survey, 12-Month DEMECON July 2021-June 2022; U.S. Census Bureau
Median annual wages increase with higher educational attainment. Outcomes
for recent graduates show significant increases in wages with postsecondary
education.
Median Annual Wages by Educational Attainment
$80,000
Wages After 1 Year Wages After 5 Years $71,300
$70,000
$60,000 $56,400
$52,900
$50,000
$38,800 $39,600 $39,300
$40,000 $34,700 $33,700
$30,000
$19,800
$20,000 $14,300 $12,400
$9,500
$10,000
$0
No High School High School Certificate Associate Degree Bachelor's Degree Master's or Higher
Diploma Diploma Degree
Source: MiSchoolData
Postsecondary education is correlated with lower poverty rates in Michigan.
Completing high school or equivalent had a poverty rate nearly 13 percentage
points less than not completing.
Population Below Poverty Level in Michigan
30.0%
26.3%
25.0%
20.0%
15.0% 13.8%
9.5%
10.0%
5.0% 3.9%
0.0%
Less Than High School High School Graduate Some College, Associates Bachelor's Degree or Higher
Graduate (Includes Equivalency) Degree
Source: American Community Survey, 2019 1-Year Estimates, U.S. Census Bureau
Rebuilding Michigan’s Economy from all Angles
Expanding Access to
Developing Michigan’s Removing Barriers to
Post-Secondary Creating Better Jobs
Workforce Employment
Education
Michigan Reconnect Going PRO Talent Apprenticeships
Tri-Share Child Care
Fund EV Academy
Sixty by 30
• A strong state – and a strong economy –
requires a concentration of talented people
who are prepared to compete in a modern
workforce and solve future challenges.
• Together we can build a better Michigan
for all.
Sixtyby30.org
Michigan Reconnect
• Tuition-free education for adults 25
and older.
• 24,000+ Reconnectors enrolled
More than 112,000 • 2,000+ received a degree or skills
applicants accepted. certificate
• Expand eligibility to 400,000+
Michigan.gov/Reconnect
Going PRO Talent Fund
• Launched in 2014 to assist employers with
training, developing and retaining employees.
• Training to more than 170,000 Michigan
workers at more than 6,000 businesses.
• Fiscal Year 2023 $55M investment through
bipartisan budget.
• Participating workers see nearly a 10%
increase to hourly wages because of training.
Michigan.gov/TalentFund
Expanding State Apprenticeships
• More than $35.8M in State Apprenticeship
Expansion Grants since 2019.
• $6.2M in State Apprenticeship Expansion
grants, creating more than 18,700
opportunities across Michigan.
• Federal grants and $10M in FY23 budget, we
expect to create more than 6,000 new
apprentices over the next few years.
• Supplemental included additional $25M in
state apprenticeship grants.
Michigan.gov/Apprenticeships
Removing Barriers to
Employment
• FY23 includes $10M and
supplemental $15M investment to
address barrier removal.
• Partnering for action.
EV Jobs Academy
• $5M awarded to develop and
expand highly qualified and skilled
workforce in automotive mobility
and electrification industry.
• Collaborative approach to develop
education and training solutions –
more than 100 partners involved.
Michigan.gov/EVJobsAcademy
Tri-Share Child Care
Program
• Providing long-term support to
businesses and families.
• Splits child care costs between
employees, employer and the state.
• $1M initial investment and $2.5M in
our 2023 budget
• Available in 13 Key Regions
• Support from W.K. Kellogg
Foundation and The Ballmer Group
Michigan.gov/TriShare
We are continuing to find more innovative ways
to support businesses and employees through:
Continuing to • Enhancement grants
Drive the Work • Michigan Mainstreet Initiative
• Sixty by 30 fund
Thank you.
Michigan.gov/LEO
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