WIOA State Plan Common Elements

Introduction

The Workforce Innovation and Opportunity Act (WIOA) requires that the Unified State Plan include “an analysis of the economic conditions in the State.” (WIOA, Section 102(b)(1)(A))  This should include “an analysis of the current workforce, employment and unemployment data, labor market trends, and the educational and skill levels of the workforce, including individuals with barriers to employment, including individuals with disabilities.” (WIOA, Section 102(b)(1)(B))  In addition, this analysis should include information on “existing and emerging in-demand industry sectors and occupations” and “the employment needs of employers, including a description of the knowledge, skills, and abilities needed in those industries and occupations.” (WIOA, Section 102(b)(1)(A)(i)(ii))

Part A:  Economic Analysis

 (A) Economic Analysis. The Unified State Plan must include an analysis of the economic conditions and trends in the State, including sub-State regions and any specific economic areas identified by the State.  This must include:  

1. Existing Demand Industry Sectors and Occupations.  Provide an analysis of the industries and occupations for which there is existing demand.
    
2. Emerging Demand Industry Sectors and Occupations.  Provide an analysis of the industries and occupations for which demand is emerging.
    
3. Employers’ Employment Needs.  With regard to the industry sectors and occupations identified in (A)(i) and (ii), provide an assessment of the employment needs of employers, including a description of the knowledge, skills, and abilities required, including credentials and licenses.

 Existing and Emerging Demand Industries and Occupations
In the current analysis, we define “existing” as industries or occupations that show a strong short-term rate of job expansion (over the past three years) and/or display a high number of job openings today.  We define “emerging” as industries or occupations projected to show significant long-term job gains.

 Existing Demand Industries

One way to gauge existing demand industries is by looking at the recent payroll employment growth (over the past three years). Figure 1 shows 15 industries that employ more than 10,000 persons, have been growing above the all-private-industry average rate of 4.6 percent between 2015 and 2018, and pay above the average weekly wage of $1,032 in 2018.  Among these 15 existing in-demand industries, 10 are goods-producing: three industry groups in the Construction sector, and seven in Manufacturing.

Another metric of existing demand industries is the volume of job vacancies posted.  The Bureau of Labor Market Information and Strategic Initiatives currently conducts a quarterly job vacancy survey (JVS) to identify the distribution of job postings by major industry groups.  Figure 2 shows that, in the second quarter of 2019, there were about 179,340 job openings in Michigan.  About a quarter of these openings were in Educational and Health Services, and another quarter in Trade, Transportation, Warehousing, and Utilities.  A quarter of these openings required a bachelor’s degree or higher, and a little over a third (38 percent) required at least one year of experience.

Existing Demand Occupations
The Michigan JVS found about a quarter of vacancies during the second quarter of 2019 were in Service occupations, around 16 percent in Sales and Related careers, and about 10 percent in Education, Legal, Community Services, Arts, and Media. 

The Conference Board Help Wanted OnLine® (HWOL) Data Series provide more detailed information of job advertisements posted online.  During the second quarter of 2019, there were 135,000 new online job postings in the State of Michigan. Registered Nurses were the most frequent job ads over the period.  At 6,087 new ads over the quarter, they represented 4.5 percent of all ads.  Rounding out the next top five job ads in terms of volume were for occupations that do not require high levels of education: Heavy and Tractor-Trailer Truck Drivers, Supervisors of Retail Sales Workers, Customer Service Representatives, and Retail Salespersons. (Figure 4)

More than 35 percent of jobs advertised online could typically be filled with a high school degree or some college, no degree.  Jobs typically requiring a bachelor’s degree made up the second largest educational cohort, representing 30.8 percent of jobs.  Occupations with lower educational requirements typically have higher employee turnover and are well represented in job ads. (Figure 5)

Emerging Demand Industries

These are industries that are projected to display job gains at or above the all-industry average projected expansion rate of 7.0 percent through 2026.  Figure 6 shows 22 detailed Michigan industries (utilizing 3-digit drill-down code specific to industry title) employing at least 10,000 people in 2016 that fall into this category.  Unlike the list of existing demand industries, emerging industries are predominantly in the service-providing domain.  In fact, almost 70 percent such industries (15 of 22) are in service sectors.  The top two are in Health Care and Social Assistance; they are projected to grow by more than 25 percent over the decade, translating into an average annual growth of over 2.0 percent.

Emerging Demand Occupations

In 2018, the Bureau of Labor Market Information and Strategic Initiatives completed the 2016–2026 long-term employment projections for over 800 detailed occupations.  Based on these projections, a list of Hot 50 occupations was created.  These “high-demand, high-wage” occupations presented a favorable mix of educational requirement, positive projected growth (numeric and percent), sizable annual openings, and an above-average hourly wage.  Occupations were ranked on three criteria (equally weighted), including the three types of annual openings (exit, transfer, and change), the projected employment growth rate, and the median wage.  Training beyond high school was a requirement, and the wage had to be above the all-occupation average pay.  Also, an occupation had to have a minimum employment of 1,000.

Of the Hot 50 emerging occupations in Michigan, 36 require a bachelor’s degree or more.  There are 14 occupations which demand more than a high school but less than a bachelor’s degree.  Ten (10) of Michigan’s Hot 50 occupations are Science, Technology, Engineering, and Mathematics (STEM), while another 10 are in professional trades.

While the Hot 50 list is useful, the Bureau of Labor Market Information and Strategic Initiatives recognizes that the list is significantly dominated by occupations that require a high level of formal education (7 in 10 call for a bachelor's degree or higher).  However, this is not the full story concerning in-demand occupations in Michigan.  In fact, at every level of education and training, there exist many careers that are projected to be in high demand between 2016 and 2026.  Figure 7 shows the top 10 such emerging occupations by educational requirement:[1]

High-demand occupations requiring a high school diploma or equivalent and short-term training are predominantly in services.  Examples include Food Preparation and Servicing Workers and Supervisors, Home Health Aides, and others.  Although in high demand, some careers in this group pay below the all-occupation average.  For example, the occupation of Home Health Aides is projected to grow by 44 percent over the 2016–2026 period but paid only $11 an hour in 2018.  That is $7 below the state’s all-occupation average hourly wage.

High-wage, high-demand careers calling for a post-secondary certificate or moderate training are concentrated in construction (e.g., Cement Masons and Concrete Finishers), transportation (e.g., Heavy and Tractor-Trailer Truck Drivers), services (Police and Sheriff's Patrol Officers), and production (CNC Machine Tool Programmer, Metal and Plastic).  These occupations pay above all-occupation average wage of $18.08 in 2018.  With the exception of Dental Laboratory Technicians (36 percent) and Massage Therapists (29 percent), which are projected to expand, most other demand careers in this category display growth rates that are below 20 percent.

Emerging high-wage, high-demand occupations requiring an associate degree, long-term training, or apprenticeships are dominated by professional trades (Electricians; Plumbers, Pipefitters, and Steamfitters; Machinists;HVAC and Refrigeration Mechanics and Installers; Millwrights, etc.).  They all pay above the all-occupation average ($18.08 per hour in 2018), and some of them are projected to grow by as high as 31 percent between 2016 and 2026 (example: Physician Therapist Assistants).

Most of the emerging high-wage, high-demand occupations requiring a bachelor’s degree or more and high-wage, high-demand STEM occupations are in computer sciences, engineering, health sciences, and management.  They are projected to grow the most through 2026 and display higher pay scales than occupations in the previous three groups (high school or equivalent, post-secondary certification/long-term training/apprenticeship, and associate degree or some college). 

The next section presents an analysis of the Knowledge, Skills, Abilities, and Tools and Technologies (KSATs) needed in the emerging occupations.  The required certifications and licenses are presented where available. 

Employers’ Employment Needs
Regarding in-demand industry sectors and occupations identified, the Unified State Plan asks to provide an assessment of the employment needs of employers, including a description of the knowledge, skills, and abilities required, including credentials and licenses.

Knowledge, Skills, Abilities, and Tools Needed in Industries and Occupations In-Demand

 It is critical to understand what knowledge, skills, and abilities and what tools and technologies and certifications (if available) are expected of successful job candidates in demand occupations for the next decade. 

Shared Knowledge, Skills Abilities, and Tools

Demand occupations require workers to possess technical skills and knowledge related to their specific occupational discipline and to master certain tools and technologies and even achieve particular certifications.  Some KSATs are common to all in-demand occupations identified above.  All in-demand occupations in Michigan require a solid foundation in basic skills, such as reading, communication, math, and cognitive abilities that influence the acquisition and application of knowledge in problem solving.  Most require active learning and critical thinking skills.  

• Knowledge shared by all groups include customer and personal service, clerical, computers and electronics, mathematics, and building and construction.
   
• Skills that are common to all groups comprise speaking, active listening, reading comprehension, critical thinking, service orientation, and writing.
   
• Abilities that cut across all groups are near vision, oral comprehension, oral expression, speech clarity, written comprehension, problem sensitivity, information ordering, and deductive reasoning.
   
• Common Tools and Technologies to all groups of emerging demand occupations are database user interface and query software, enterprise resource planning software, graphics or photo imaging software, medical software, operating system software, analytical or scientific software, computer-aided design software, and map creation software.

Top Five Knowledge, Skills, Abilities, and Tools and Technologies Specific to In-demand Occupations by Educational and Training Requirements

High-demand Occupations Requiring a High School Diploma or Equivalent and Short-term Training

Knowledge                                                               

Food Production                                                    

Sales and Marketing                                                        

Clerical                                                                             

Personnel and Human Resources                                  

Law and Government                                                      

Skills

Coordination

Social Perceptiveness

Monitoring

Management of Personnel Resources

Operation and Control 

Abilities                                                                           

Speech Recognition                                                        

Static Strength                                                                 

Trunk Strength                                                                 

Manual Dexterity                                                             

Multi-limb Coordination                                                       

Tools and Technologies 

Point of Sale Software
Bar Code Reader Equipment

Commercial Use Deep Fryers

Commercial Use Food Choppers or Cubers or Dicers

Commercial Use Food Warmers

 High-wage, High-demand Careers Demanding a Post-secondary Certificate or Moderate Training

Knowledge                                                                    

Mechanical                                                                      

Public Safety and Security                                              

Administration and Management                                    

Sales and Marketing                                                        

Transportation

Skills                                                                                      

Troubleshooting

Operation Monitoring

Social Perceptiveness

Negotiation

Equipment Maintenance

Abilities                                                                            

Control Precision                                                             

Manual Dexterity                                                             

Arm-Hand Steadiness                                                      

Multi-limb Coordination                                                          

Far Vision                                                                         

Tools and Technologies

Power Saws

Pullers

Customer Relationship Management Software

Flatbed Trailers

Lifts
 

Most in-demand occupations in these two educational and training categories are physically demanding.  Examples include Construction Laborers, Heavy Truck and Trailer-Tractors Drivers, Food Preparation and Serving Workers, Home Health Aides, and others.  Knowledge such as food production, sales and marketing; skills such as equipment maintenance; and abilities such as multi-limb coordination are needed.  They also comprise first-line supervisory positions in the fields of mechanics and installation, construction, production, and others which require some management skills and abilities.  Knowledge of tools and technologies used in construction, retail trade, food preparation such as lifts, power saws, point of sale software, and others are needed. 

High-wage, High-demand Occupations Requiring an Associate Degree, Long-term Training, Or Apprenticeships

 Knowledge                                                                     

Design                                                                              

Production and Processing                                             

Medicine and Dentistry                                                    

Psychology                                                                      

Telecommunications                                                                                

Skills

Judgment and Decision Making

Repairing

Equipment Maintenance

Coordination

Quality Control Analysis

 Abilities                                                                           

Arm-Hand Steadiness                                                      

Control Precision                                                             

Visualization                                                                     

Finger Dexterity
Inductive Reasoning                                                              

Tools and Technologies

Levels

Analytical or Scientific Software

Calipers

Computer Aided Manufacturing Software

Power Saws

 Emerging in-demand careers in this group are heavily concentrated in professional trades (Electricians;Plumbers, Pipefitters, and Steamfitters; Machinists; HVAC and Refrigeration Mechanics and Installers; Millwrights, etc.) and technical occupations (Dental Hygienists, Physical Therapist Assistants, Respiratory Therapists, and others).  They require knowledge in design, dentistry, production and processing; skills in equipment maintenance and quality control; abilities in inductive reasoning and visualization; and the use of tools and technologies such as calipers, computer-aided manufacturing software, and others.

 High-wage, High-demand Occupations Requiring a Bachelor’s Degree or More

 Knowledge                                                                     

Education and Training                                                    

Engineering and Technology                                          

Personnel and Human Resources                                  

Economics and Accounting                                             

Physics                                                                            

Skills

Complex Problem Solving

Systems Analysis

Programming

Systems Evaluation

Instructing

 Abilities                                                                            

Manual Dexterity                                                             

Control Precision

Visualization                                                                           

Mathematical Reasoning

Information Ordering                                                                          
               

Tools and Technologies

Development Environment Software

Cardiac Output (CO) Monitoring Units or Accessories

Diagnostic or Interventional Vascular Catheters or Sets

Business Intelligence and Data Analysis Software

Object or Component-oriented Development Software

High-wage, High-demand STEM Occupations

 Knowledge                                                                     

Engineering and Technology                                          

Telecommunications                                                       

Education and Training                                                    

Physics                                                                            

Communications and Media                                            

Skills

Complex Problem Solving

Systems Analysis

Systems Evaluation

Programming

Persuasion

Abilities                                                                            

Inductive Reasoning                                                        

Information Ordering                                                        

Speech Recognition                                                              

Mathematical Reasoning                                                 

Number Facility                                                                

Tools and Technologies

Web Platform Development Software

Database Management System Software

Program Testing Software

Operating System Software

Semiconductor Process Systems                                   

Emerging demand occupations requiring a bachelor’s degree or higher or a STEM degree are mostly cerebral.  They comprise a broad range of fields of studies and careers including (but not limited to) Architecture and Engineering, Information Technology, Health Care Practitioner and Technical, Business and Financial, as well as Management.

 Architecture and Engineering Occupations

• Architecture and Engineering occupations are technical but also practical, so they require a mix of knowledge, skills, and abilities.  Mechanical applications, mathematics, and the laws of physics are among the most important areas of knowledge for this category of occupations.
• Skills needed involve making decisions after analyzing tremendous volumes of data and mathematical information.  Leading skills are complex problem solving, critical thinking, and judgment and decision making.

• Many Architecture and Engineering occupations are expected to employ tools and technologies targeted at improving quality and reducing defects or inefficiencies, such as Quality Assurance and Six Sigma aimed at quality improvement. 
   

Information Technology Occupations

• These positions require an important mix of technical, business, and problem-solving skills.  Information technology jobs require knowledge of circuit boards, processors, chips, electronic equipment, and computer hardware and software, including applications and programming.  Design and systems analysis skills are also vital.
• Abilities for these occupations are typically related to computer usage and programming.  For example, jobseekers should have the ability for mathematical reasoning, number facility, and deductive reasoning.
• Computer occupations have many technologies associated with them.  Depending on the occupation, individuals employed in these occupations will need to know everything from traditional software packages to advanced computer programming languages, such as SQL, Java, and Linux. 

Health Care Practitioner and Technical Occupations

• Knowledge of the information and techniques needed to diagnose and treat human injuries and diseases are important in all critical health care occupations.  This includes knowledge of symptoms, treatment alternatives, drug properties and interactions, and preventative health care measures.
• Tools and technologies related to Health Care occupations include several that ensure quality in the delivery of health services as well as increasing efficiencies in delivery of care, such as electronic medical records and time management.

 Business and Financial Occupations

• Occupations found in this category will require workers to possess skills such as communication, critical thinking, and time management.  These workers must also be able to establish and maintain cooperative working relationships with others and have knowledge of economic and accounting principles and practices, the financial markets, banking, and the analysis and reporting of financial data.
• Most of the occupations in this category will need to use office productivity software such as Microsoft Office for documents, spreadsheets, publications, and database administration.
• In addition to productivity software, many tools and technologies for Business and Financial occupations involve risk management and even technical proficiencies such as Generally Accepted Accounting Principles (GAAP).

 Management and Supervisory Occupations

• Occupations found in this category will require workers to possess skills such as speaking, active listening, and critical thinking.  Workers must also have knowledge of administration and management and of personnel and human resources.  These workers ought to have the ability to express and comprehend oral and written communication.
• The use of personal computers has become a requirement for many professional occupations.  Therefore, a high mastery of spreadsheet and word processing software is a must.  Also, with the quickly changing communication technology, workers in this category must feel comfortable using email software as well as the delivery platforms such as smartphones, tablets, and others.

 Occupational Licensing
Licensure has increasingly become a key feature of the nation’s job market.  Five percent of the United States (U.S.) workforce held an active occupational license in the 1950s, but by 2018 that figure had risen to 21.4 percent.  Similarly, the share of Michigan’s workforce that was licensed averaged 21.8 percent between 2015 and 2017.[2]  The purposes of occupational licenses include:

• A certification that individuals employed in certain jobs have the skills, knowledge, and experience necessary to perform their duties;
• An attempt to improve the health and safety of the employed license holder, other workers, consumers, and the public;
• A standard set of prerequisites to try to minimize workplace risks such as injuries, illnesses, or deaths;
• A general framework of standards for the licensed occupation; and
• A signal to consumers about the skill levels and qualifications of available providers.

The agency that issues the most licenses in Michigan is the Department of Licensing and Regulatory Affairs’ (LARA) Bureau of Professional Licensing (BPL), which handles licenses in health care and general occupational professions.  Other authorities regulate licenses that usually fall under their area of emphasis.  For example, the Michigan Department of Education issues teaching licenses, while the Michigan Department of Agriculture and Rural Development issues livestock dealer licenses.  Overall, there are more than 20 agencies responsible for licensing in Michigan.

 Data from LARA’s BPL indicate a count of more than 500,000 occupational licenses spread across several different professions, as of January 2019.  The ten professions with the most licenses make up over half of the occupational licenses tracked by the BPL.  The professions with the highest number of awarded licenses are Registered Nurses (156,102), Cosmetologists (71,950), and Medical Doctors (39,128), while those with the lowest counts include Natural Hair Culturists (54), Personnel Agents (40), and Oral Pathologists (7).

 Some indications suggest that Michigan’s licensed occupations will experience faster long-term employment growth and exhibit higher median wages relative to the state overall.  From 2016 to 2026 the total employment level for 35 selected[3] licensed occupations is expected to increase by 9.8 percent; almost 3 percentage points above the projected all-occupation average growth rate of 7.0 percent.  Similarly, the selected occupations are projected to make up nearly 9 percent of the 547,120 total annual openings estimated statewide for 2016 to 2026.  Finally, of the 35 selected licensed occupations where data was available, 23 had a 2018 median wage that exceeded the $18.08 per hour median wage of all Michigan occupations.

Apprenticeship

Several careers, particularly in professional trades, required some level of apprenticeship.  In 2018, there were nearly 18,900 active apprentices across Michigan, spread over 1,100 programs.  These apprenticeship programs are largely confined to three regions of the state.  West Michigan claims 29 percent of all programs.  This is followed by the Detroit Metro and Southwest Michigan regions at 19.6 percent and 14 percent, respectively.  While West Michigan is home to the largest number of active programs, it is responsible for the third largest share of active apprentices at 13.2 percent.  The Detroit Metro region is home to a significant share at 44.8 percent, followed by the East Michigan region at 16.9 percent.

Much of the apprentice population resides among two industries, called traditional apprenticeships.  These apprenticeships include the industries of Construction and Manufacturing.  Among 2018 active apprentices, these industries combined to make up 78.5 percent of all active apprentices in the State of Michigan, with Construction making up the larger share.

 The occupations most associated with apprenticeships are rather unsurprising.  Electricians lead the way in terms of share of active apprentices at 22 percent.  Construction Laborers make up the second largest share with 15.1 percent.  Among others is Carpenters (8.8 percent) and Plumbers, Pipefitters, and Steamfitters (7.3 percent).

 Along with these occupations, it is possible to track the wage progression while they are completing the apprenticeship, and it is also possible to see the one-year-after wage among those who were able to find employment (among 2017 completers).  Electricians, for example, see significant progression in their apprenticeship wages.  At the start of the apprenticeship, these apprentices earn a median starting wage of $13.55.  This bumps up to a median wage of $27.74 during the last year of their apprenticeship.  This wage increases for those who are employed one year later, as they earn a median wage of $36.17.  This wage at the start of employment is more than $15 greater than that of the 25th percentile starting wage ($20.69) as determined by 2018 Occupational Employment Statistics (OES).  Many of the large occupations among apprentices see similar wage progression as well.

 The demographical make up of underrepresented groups is another important aspect to consider among apprentices.  Tracking the shifts in these populations among new apprentices allows for analysis of the changing diversity.

 In the 2008–2015 period, women only made up 6.4 percent of all newly registered apprentices.  Outside of a spike in 2014 to 14.6 percent, this share never reached greater than 7.3 percent.  By the 2016–2018 period, this share reached 11.3 percent, again seeing a spike to 20.7 percent in 2018.

 There also has been a rise in newly registered apprentices among people of color.  In the earlier period, this share sat at 10.3 percent.  From 2016 to 2018, this increased to 13.1 percent.  It is important to note, however, the large portion of this population have an unknown racial background, making up over 15 percent of new apprentices. [4]

 [1] A complete list of Michigan’s Career Outlook can be downloaded from the Bureau of Labor Market Information and Strategic Initiatives website: https://milmi.org/Research/michigans-career-outlook-through-2026.

[2] Closner, Catherine and Leighton, Tyler. 2019. “Occupational Licensing in Michigan.” Michigan’s Labor Market News, Vol. 74, Issue 12. Lansing, MI: Bureau of Labor Market Information and Strategic Initiatives, Michigan Department of Technology, Management & Budget.

[3] Closner, Catherine and Leighton, Tyler. 2019. “Occupational Licensing in Michigan.” Michigan’s Labor Market News, Vol. 74, Issue 12. Lansing, MI: Bureau of Labor Market Information and Strategic Initiatives, Michigan Department of Technology, Management & Budget.

[4] Gandhi, Nick. 2019. “Registered Apprenticeships in Michigan.” Michigan’s Labor Market News, Vol. 75, Issue 9. Lansing, MI: Bureau of Labor Market Information and Strategic Initiatives, Michigan Department of Technology, Management and Budget.