WIOA State Plan Common Elements

iv. Skill Gaps

Describe apparent ‘skill gaps.’

The gap between workforce talent and the set of skills required for a job is commonly referred to as a “skills gap.”

Delaware used several data stream/points to address skills gaps and determine priorities. Data was initially generated from Delaware’s Office of Occupational and Labor Market Information. The information was then reviewed and synthesized by Delaware’s CTE office, The DWDB staff, and Delaware United Way. Additional data was mined from the US Census Bureau and the Centers for Disease Control.

Delaware Top Priority: Promise Communities

Analysis of the data revealed eight promise communities having these characteristics:

• 318,610 or 35% of state population live in the Eight Promise Communities

• 53% of children (age birth to 17) and 49% of Adults (age 18+) live in the Eight Promise Communities

• 28.9 % of the children live in poverty

• 44.9% of residents are considered low income

• 37.3% of children are proficient in reading by 3^rd grade; and

• 18.2% of the population 25 and over have a HS diploma

• 10% unemployed

• 66.5% receive some form of public assistance

Additional information in a report from the Delaware Department of Health and Social Services entitled Centers for Disease Control (CDC) Advisory Council Final Report, published by (DHSS) dated, January 16, 2107, cited unemployment as a factor leading to hopelessness and ultimately gun violence. Evidence and data from all sources showed significant gaps in skills and access to skills training occurring in eight Promise communities. The United Way of Delaware writes:

United Way of Delaware is changing lives by bringing scale and focus to social service programs across the state. To do this, we have identified “Eight Promise Communities” where data show the greatest concentration of need. Working with community-based organizations in these areas, we align and integrate services that prepare children for school, improve education and employment outcomes for young people, and help families achieve financial stability. By focusing resources in these communities, we seek to drive meaningful, measurable outcomes that improve the quality of life for all Delawareans.

The eight promise communities are listed in the funding guidelines at appendix G.

Delaware’s Second Priority: Pathways. Delaware has fully embraced Pathways to Prosperity (Pathways), as listed in the funding guidelines at Appendix G. The DWDB, in conjunction with Delaware Department of Education, and the Delaware Trade Schools has crafted its demand occupation list to reflect this, as well as a trades pathway.

Background:

By 2024, 30% of Delaware’s workforce (143,593 jobs) will be replaced. Of this 30%, job growth will account for 8% (39,326 new jobs) and replacements will account for 22% (104,267 jobs). Delaware’s labor market can be organized into three categories of employment: low-, middle-, and high-skill jobs. Low-skill jobs require a high school diploma or less and provide an average wage of $26,350 per year. Middle-skill jobs require some type of postsecondary education, e.g. Registered Apprenticeship, certification, or an Associate Degree and provide an average wage of $44,960 per year. High-skills jobs require a Bachelor’s Degree or higher and provide an average wage of $88,510 per year.

Middle- and high-skill employment accounts for 62% of all Delaware jobs and will represent 69% of all projected growth openings through 2024. Further, employment in middle-skill jobs is consistent across the state and can be accessed through cost-effective education and training programs which are desirable for youth entering the workforce and adults seeking to upskill. By defining a statewide strategy to increase the number of youth and adults prepared to enter middle- and high-skill employment we will create opportunities for Delawareans and help drive our state’s economic growth.

State & County Job Statistics (source DDOL Wage Projections):

• 66% of all Delaware jobs are in New Castle County—of which 31% of jobs are high-skill, 32% are middle-skills, and 37% are low-skill;

• 15% of all Delaware jobs are in Kent County—of which 18% of jobs are high-skill, 34% are middle-skill, and 48% are low-skill;

• 17% of all Delaware jobs are in Sussex County—of which 11% of jobs are high-skill, 35% are middle-skill, and 54% are low-skill (note 2% of all Delaware jobs are multi-county);

• 8,210 new jobs were gained in Delaware in 2015 (down from 12,870 new jobs in 2014)—representing the sixth consecutive year of job gains—at a growth rate of 1.9% (mirrors the US but is down from 2.4% average state growth rate);

• 5,200 jobs were gained in New Castle County in 2015—at a growth rate of 1.8%;

• 560 jobs were gained in Kent County in 2015—at a growth rate of 0.9%; and

• 2,890 jobs were gained in Sussex County in 2015—at a growth rate of 4.1%.

Youth Unemployment Percentages (source DDOL Unemployment & Wage Data):

• 15.8% of men ages 20-24 were unemployed in 2014 compared to 5.8% unemployment for all age demographics;

• 8.8% of women ages 20-24 were unemployed in 2014 compared to 5.8% unemployment for all age demographics; and

• 18% of African Americans ages 20-24 were unemployed in 2014 compared to 11% of Hispanic/Latinos ages 20-24 and 10% of Whites ages 20-24.

Job Sector Statistics (source DDOL Annual Economic Summary):

• 2,040 jobs were gained in 2015 in Health Care and Social Assistance which is the largest industry in the state;

• 1,820 jobs were gaining in 2015 in Transportation and Warehousing—gaining nearly 6,000 jobs in the last four years; and

• 1,560 jobs were gained in Accommodation and Food Services which grew at a 4.2% rate in 2015.

Occupational Data by Career Cluster (ranked by growth rate—source DDOL Labor Market Projections):

Middle Skill (MS): Occupations requiring some type of postsecondary education (such as Registered Apprenticeship, certification, or an Associate Degree);

High Skill (HS): Occupations requiring at least a Bachelor’s degree, or Associates’ Degree with either a required Residency/Internship or five years of experience;

High Wage (HW): Occupations paying more than the Delaware all-industry statewide median wage ($37,960 in 2016); and

High Demand (HD): Occupations with at least 4 annual job openings due to growth in Delaware.

* Denotes issues in collecting traditional labor market information.

Filling this gap drives Delaware’s workforce development strategy.