WIOA State Plan Common Elements

Alabama was one of the last states in the nation to experience significant drops in unemployment after the recession. A slow recovery and shifts in the state’s economic structure kept unemployment significantly higher than the national average after the economic recovery. While the state’s unemployment started decreasing in 2016, the national average was dropping at a much faster speed. In January 2017, the state’s unemployment rate was nearly 1.5 percent higher than the national average, and, by the end of the year, the state’s unemployment rate was equal to the national unemployment rate. Alabama ended 2017 with 2,081,676 employed and—by the end of 2018 2,112,347 were employed, which was the highest number of people employed in the state since figures have been recorded. During 2018, Alabama’s unemployment closely resembled the national average, with the lowest rate of 3.7 percent in September and November. Unemployment rates for Alabama’s seven regions by the end of 2018 ranged from a low of 3.6 percent in Region 4 to a high of 5.9 percent in Region 7. By the end of 2018, there were no counties in the state with double-digit unemployment rates. Wilcox County, which has traditionally ranked in the Top 5 in the nation for highest unemployment rates, dropped to its lowest of 7.8 percent in November 2018.  By September 2019, only 2 counties had an unemployment rate higher than 5.2 percent, Dallas right at the 5.2 mark and Wilcox at 6.2 percent. An annual average of only 86,490 people were unemployed statewide in 2018. Alabama’s record-breaking labor force trends continued into 2019. Economists in the state projected job growth in 2019. In eight consecutive months in 2019, Alabama’s job growth rate either equaled or surpassed the nation, August’s over-the-year growth was 2.3 percent, while the nation was only 1.4 percent. The seasonally adjusted unemployment number for September 2019 in Alabama was a low 66,919, equaling a 3.0 percent statewide unemployment rate. In addition, more people have entered, or reentered, the civilian labor force with the abundance of opportunities available creating a historical high of 2,261,077. 2019 ended with a 2.7 percent unemployment rate in Alabama.

 Alabama’s economy has improved against nearly every measure under the leadership of the Ivey Administration. The unemployment rate measured 4.7 percent in April 2017, and now measures 2.7 percent (November 2019) – a decrease of 42.6 percent. The number of people in the civilian labor force measured 2,176,593 in April 2017, and now measures 2,265,458 (November 2019) – an increase of 4.1 percent. The number of people counted as employed measured 2,073,495 in April 2017, and now measures 2,203,495 (November 2019) – an increase of 6.3 percent. The number of people counted an unemployed measured 103,098 in April 2017, and now measures 61,963 (November 2019) – a decrease of 39.9 percent. The number of jobs counted in our economy measured 2,016,500 in April 2017, and now measures 2,114,800 (November 2019) – an increase of 4.9 percent. Wages have increased from $800.80 in April 2017 to $863.11 (November 2019) – an increase of 7.8 percent. The labor force participation rate has increased from 56.8 percent in April 2017 to 58.6 percent (November 2019) – an increase of 3.2 percent. The percentage of wage & salary job growth measured 0.7 percent in April 2017, and now measures 2.4 percent (November 2019) – it has more than tripled.

According to the Bureau of Labor Statistics, youth unemployment rates dropped in 2018.  Youth age 16 to 19, experienced an estimated unemployment rate of 12.5 percent in 2018, approximately half of the 2017 rate of 24.4 percent. Labor Force participants between the ages of 20 and 24 also experienced lower unemployment from 2017 to 2018, dropping from 14.6 percent to 6.8 percent. When examining the rates by race and sex, the unemployment rate for African American males was 4.8 percent higher than white males, as it also was for African American females compared to white females. While African American males still showed the highest unemployment rate among demographic groups, the unemployment rate in the among African American males dropped from 12.8 percent in 2017 to 7.4 percent in 2018.

Alabama’s labor force participation rate fell from 61.4 percent in 2007 to 56 percent in 2017 (one of the five lowest labor force participation rates in the nation. The labor force participation rate is defined as the percentage of civilian noninstitutionalized population age 16 and over who are employed or seeking employment. In May of 2019, data published by BLS indicated that Alabama had the third-lowest labor force participation rate in the nation, at 57.9 percent, behind West Virginia and Mississippi. There have been some improvements in labor force participation, as annual average 2018 showed a 1 percent increase in the percent of the noninstitutionalized population participating in the labor force, 57.4, from 2017. The labor force participation rate increases to 58.6 percent by the end of 2019. While Alabama still has one of the lowest participation rates in the nation, it had the largest increase over the year of all Southeast states. The largest increases in the labor force came from white men, adding approximately 26,000, and women. In addition, around 25,000 youth aged 16-19 entered the labor force over the year. Adult age groups with the largest increases in labor force participation came from age 35-44, with the majority being women, and age 65 and over (most of these are men.) 

While there were many improvements, there were also people who dropped out of the civilian labor force over the year. Approximately 7,000 more African American men left the labor force, increasing the total of nonparticipants to 189,000. Additionally, there were more nonparticipants within the Hispanic population in 2018, with a total of of 46,000. Women dominated this increase in the Hispanic population’s particiation in the civilian labor force. The age groups that experienced the largest decrease in labor force participation over the year were the 25-34 and 45-54 cohorts.  Within the 25-34 cohort, most of the decrease was attributed to African American males. In the 45-54 age cohort, decreases in labor force participation appeared across all demographics, with an estimate of 172,000 not in the labor force in 2018 in the 45-54 age cohort.

In 2018, the measure of labor underutilization in Alabama was 7.3 percent, which was 3.1 percent lower than 2017 and lower than the national rate of 7.7 percent. The measure of labor underutilization includes the unemployed, those employed part-time, and those marginally attached to the labor force. According to the Current Population Survey (CPS), Alabama had an average of 86,800 unemployed residents in 2018. Approximately 51,900 workers were employed part-time for economic reasons, which is referred to as involuntary part-time. These people were either part-time because the businesses they worked for were experiencing poor business conditions or were unable to find full-time employment. People marginally attached to the labor force are those who are not presently working, but would like to work, are available to work, and have looked for work within the last year, but have not searched within the last four weeks. In Alabama, the marginally attached in 2018 was approximately 24,900. The number of discouraged workers in the state, which is a subset of the marginally attached, was around 8,000, which accounts for 32 percent of all marginally attached workers.

The latest census figures for 2017 estimate the population in the state age 16 to 19 is 259,380. Over 38,700 of this cohort were not enrolled in school, and nearly 14,800 were not enrolled in school or participating in the labor force. In 2017, there were approximately 67,339 youth aged 14 to 21 employed in the workforce, and 59 percent of them were working in the retail trade and accommodation and food services sectors and were earning average monthly wage of $866. Nearly 4,056 youth worked in manufacturing and were earning an average monthly wage of $1,732. An estimated 4,019 youth were working in health care with an average monthly wage of $1,026. An estimated 4,621 youth were working in administrative and support and waste management services with an average monthly wage of $1,278.

According to the 2017 SSI Annual Statistical Report, Alabama ranks seventh highest in the nation among the states for the percentage of the population who are receiving disability social security benefits (3.4 percent). This is an improvement from the previous year when the state ranked second in the nation. Census estimates from 2017 reveal that approximately 775,390 people in the state have a disability and 39.5 percent were over the age of 65. Nearly 137,700 disabled persons were in the labor force in 2017. Over 21,000 people with a disability were unemployed. In 2017, 57.2 percent of those who were unemployed had a cognitive disability. Approximately 13,048 of the working disabled persons were still below the poverty level, while 9,185, approximately 44 percent, of the unemployed persons with a disbaility were below poverty level. Within the households receiving Supplemntal Nutrition Assistance Program (SNAP) benefits in the past twelve months, 46 percent included one or more persons with a disability.

In 2017, Alabama had the 20^th largest veteran population in the country (VA National Center for Veterans Analysis and Statistics). The state is home to five military bases: Maxwell-Gunter Air Force Base located in Montgomery; Anniston Army Depot located in Bynum; Fort Rucker located in Dale and Coffee Counties; Redstone Arsenal located in Madison County; and the Coast Guard Aviation Training Center located in Mobile. In addition, Alabama is home to the fifth-largest Army National Guard force in the nation, with a total force of approximately 13,000. According to the US Department of Veterans Affairs, the veteran population in the state in 2017 was 369,962, which was 9.8 percent of the adult population. Over 43 percent of the state’s veterans were 65 or older. Around 24 percent of the state’s veterans live in Region 1 and 20 percent live in Region 4.

A high percentage of veterans participate in the labor force, with a labor force participation rate of 69.9 percent in 2017. Over 65.0 percent of the veteran population in the state has at least some education beyond high school, with 27 percent holding a bachelor’s degree or higher. While the unemployment rate in 2017 averaged around 5.8 percent, the rate for veterans was 3.8 percent (ACS 2017). There are many veterans who need additional assistance due to disabilities incurred during military service. Nearly 24,866 veterans were below poverty level in 2017 (ACS 2017). In addition, the Department of Veterans Affairs (VA) National Center for Veterans Analysis and Statistics estimated that 98,577 veterans in the state were receiving disability compensation.

At 21.8 percent, older workers (age 55 and over) constitute a significant and growing part of total nonagricultural employment. The share of older workers for the WDRs ranged from 20.6 percent for Region 3 to 23.2 percent for Region 6. To meet long term occupational projections for growth and replacement, labor force participation of younger residents must increase; otherwise, older workers may be required to work longer. Alabama continues to lose workers to surrounding states, for the latest data (2017) indicates there was a net out-commute of approximately 41,674 people.The total number of out-commuters in 2017 was nearly 113,000, up over 5,000 from 2016. The data indicates that the largest increase in out-commuters appeared in the under 30 age group. While the largest percentage of these commuters worked in Georgia, there was minimal change over the year. The largest increase in workers from 2016-2017 traveled to Tennessee and Florida.

An additional source of skilled labor exists among the underemployed. The underemployed present a significant pool of labor because they tend to respond to job opportunities that they believe provide (i) higher income, (ii) more benefits, (iii) superior terms and conditions of employment, and (iv) a better skills, training, and experience. The underemployed also create opportunities to upskill entry-level workers as they are likely leave lower-paying jobs for better-paying ones. Underemployment rates for counties, AlabamaWorks regions, and the state were determined from an extensive survey of the state’s workforce. A total of 8,845 complete responses were obtained. About 45 percent (4,022 respondents) were employed, of whom 918 stated that they were underemployed. Among the regions, underemployment ranged from 19.9 percent for North AlabamaWorks to 26.0 percent for East AlabamaWorks. Central Six AlabamaWorks has the most available labor, followed by North AlabamaWorks. The two regions account for about 44 percent of the state’s available labor force. Among the counties, Hale County had the highest rate of underemployment at 41.5 percent and Marshall had the lowest with 10 percent. Twenty-nine counties had underemployment rates above the state’s 22.8 percent average.

The most frequently cited reasons for being underemployed were low wages at available jobs, a lack of job opportunities locally, living too remotely, family or personal obligations, property ownership inhibiting mobility, and childcare responsibilities. Non-workers cite retirement, disability or other health concerns, social security limitations, low wages at available jobs, undisclosed reasons, and a lack of job opportunities in their area as reasons for their status. Such workers may become part of the labor force if their barriers to employment are addressed. The statewide underemployment rate was 22.8 percent in 2018. Applying this rate to March 2019 labor force data demonstrates that 491,049 employed Alabama residents were underemployed. B adding the unemployed, a total available labor pool of 574,914 statewide may be determined. The underemployed are 6.9 times more numerous than the unemployed and are a more realistic measure of the available labor pool in the state. Prospective employers must be able to offer the underemployed incentives to induce them to change jobs. Underemployed workers are willing to commute farther and longer for a better job. For a one-way commute, 45.9 percent of the underemployed are prepared to add 20 or more minutes to a one-way commute and 34.6 percent are willing to add 20 or more extra miles for a better job.

Most workers (78.2 percent) are satisfied or completely satisfied with their jobs. Workers are most satisfied with the work that they do and least satisfied with the earnings they receive. Fewer underemployed workers are satisfied with their jobs (59.4 percent). The underemployed are more dissatisfied with their earnings and most satisfied with their work shift. Workers are generally willing to train for a new or better job, with the underemployed being much more willing (66.8 percent versus 55.1 percent). However, the willingness to train is strongly influenced by who pays for the cost of training. Workers typically do not wish to pay for the training and their willingness is highest when the cost is fully borne by the government or employer and lowest when the trainee must pay the full costs. The underemployed workers are more willing to train for the new or better job even if they must bear the full cost.

Extremely limited data are available on opioid and substance misuse within the North AlabamaWorks region. Alabama continues to have one of the highest rates of opioid prescriptions dispensed in the nation, at a rate of 107.2 scripts per 100 residents in 2017, nearly twice the national average of 58.7 scripts per 100 residents. The number of opioid prescriptions per 100 persons in the region as compared to Alabama and the United States shows this is one of the worst contiguous regions in the country for opioid prescriptions. Opioid-related overdose deaths in Alabama have risen every year since 2013, reaching levels more than triple that observed in the mid-2000s. Using the Rural Appalachia Overdose Mapping Tool from NORC for data from 2013-2017, the counties in the region show high overdose mortality rates as compared to Alabama and the United States. As noted in the Alabama Opioid Strategic Response Needs Assessment, the state’s lack of structure and regulatory guidelines for reporting drug overdose deaths has contributed to the underreporting of opioid overdoses and deaths. It is important to note that there are secondary effects of the opioid epidemic across Alabama, including, but not limited to, HIV and viral hepatitis infection attributed to unsterile intravenous drug use. The North AlabamaWorks region includes multiple counties identified to be the most vulnerable to an outbreak of HIV or Hepatitis C within the United States (CDC, 2016).

 According to the United States Department of Veterans Affairs (VA), the veteran population in Alabama in 2017 was 369,962, or 9.8 percent of the adult population, with approximately 24 percent of veterans living in the North AlabamaWorks region. A sixth of Alabama’s veterans sought treatment for substance use in 2016 within VA facilities, within which opioid prescription rates exceed the national average and have increased each year since 2001 (Solomon, 2014). Some research shows that OUD prevalence rates at the county level among veterans in Alabama from 2015 to 2017 were 0.79 percent (SD = 0.16), with hotspot analysis revealing a significant cluster of “high-high” veteran OUD prevalence in Cullman, Marion, and Winston counties (Albright et al., in press). Alabama’s incarceration rate is 59 percent higher than the national average, the third-highest rate in the nation. According to the Alabama Department of Corrections (ADOC) Annual Report (2015), drug-related crimes were the leading cause of convictions. The state’s prison system is operating at 200 percent of capacity and is involved in a lawsuit regarding the inadequate provision of mental health care. ADOC estimated that from 75 percent to 80 percent of the offenders in custody have a history of substance abuse (ADOC Annual Report, 2015).

 In December of 2019, data published by the Bureau of Labor Statistics (BLS) indicated that Alabama had the third-lowest labor force participation rate in the nation, at 58.6%. According to a study conducted by the Liberty Foundation, where it compared labor force participation rates using 2013 BLS data, out of the 51 states, Alabama ranked second lowest labor force participation for ages 35 to 44, third lowest for ages 45 to 54, and fourth lowest for ages 55 to 64. Between 2014 and 2017, the labor force participation rate for those ages 35 to 44 dropped 0.2 percent, from 78.5% to 78.3%. Upon further investigation, the noninstitutionalized population for that age group dropped nearly 60,000, with 40,000 being women.

Alabama’s labor force and economy are among the hardest hit by the opioid crisis.[1] Between1999 and 2015, the volume of prescription opioids per capita in Alabama rose 693 percent, or about 14 percent annually. This rise in opioid use in Alabama was associated with a 2.6 percentage point decline in the state’s labor force participation rate of prime-age workers, slowing annual real gross domestic product (GDP) growth by 1.2 percentage points.

The rise in opioid prescriptions from 1999 to 2015 led the labor force participation rate for both prime-age men and women to decline substantially. Opioids lowered the participation rates of prime-age men and women by 2.3 percentage points and 2.9 percentage points, respectively. For perspective, opioids decreased nationwide labor force participation rates of prime-age men and women by 1.4 percentage points and 1.8 percentage points, respectively. The decline in the prime-age male labor force participation rate in Alabama means that in 2015 19,300 men were absent from the labor force due to opioids.

The steeper decline in prime-age female labor force participation means that even more women were absent from the labor force. In 2015, opioids kept 27,000 women in Alabama out of the labor force. Together, the growth in per capita prescription opioids from 1999 to 2015 caused the total prime-age labor force participation rate in Alabama to decline by 2.6 percentage points. That translates to a loss of 46,300 workers as of 2015.

The nonagricultural employment of Alabama residents in the state averaged about 1.8 million quarterly. The manufacturing sector was the leading employer in Alabama, with 269,709 jobs in the third quarter of 2018. Rounding out the top five industries, by employment, are health care and social assistance, retail trade, accommodation and food services, and educational services. These five industries provided 1,103,478 jobs, which is 58.3 percent of the state total. Manufacturing has historically had a huge impact on the economy of the state, primarily to the tremendous growth in transportation equipment manufacturing. The state is home to four major auto manufacturing plants, a major shipbuilding plant, several aerospace manufacturing plants, including one producing planes in the US for the first time, located in Mobile. Less than 25 years ago, zero automobiles were manufactured in Alabama. Today, our four auto original equipment manufacturers annually produce 1 million vehicles and 1.5 million engines. With the additional of Mazda/Toyota, Alabama will produce 1.3 million vehicles and 1.8 million engines annually. These major plants have led to hundreds of thousands of jobs in parts manufacturing across the state. Automobiles have become Alabama’s number one export. The state ranks second in the United States in vehicle exports, and fifth in the number of vehicles manufactured.  The insurgence of transportation manufacturing in the state has produced a huge demand for highly skilled technical workers. Occupations such as team assemblers, aircraft mechanics, aircraft assemblers, welders, industrial machinery mechanics, computer-controlled machine operators, machinists, and many others have experienced significant increases in employment.  Furthermore, advances in technologies, such as the wide use of robotics for parts assembly, have raised the level of skills required to compete for these jobs.  This facility, as well as the Alabama Industrial Development Training (AIDT) Maritime training facility in Mobile, are providing invaluable training services to manufacturing employers across the state. Health care makes up approximately 13.8 percent of the state’s employment.

While hospitals have maintained a fairly steady employment level over the last decade, the specialized areas of the health care industry are showing rapid growth. Due to the aging population, demand for home health services and nursing care facilities has grown rapidly. Two of the largest occupations in demand in recent years have become personal care aides and home health aides. Although these are entry-level occupations with low wages, they serve as an entry-level job as part of a healthcare career pathway.  Outpatient surgical procedures have become common due to advances in technology, and this has increased the number of outpatient care facilities or rehabilitation facilities. The huge demand for physical therapists, physical therapists’ assistants, occupational therapists, and speech-language pathologists is a result of an increased number of people needing assistance to function independently after medical procedures. The huge demand for health care has also created higher patient loads on physicians, which in the last decade has resulted in an increase in medical assistants, physician assistants, and surgical assistants. These professionals are trained to perform basic health care services, such as physicals, minor illnesses, and administer diagnostic tests under the supervision of a physician. This frees the physicians to focus on the more serious medical problems. This is the trend throughout the health care industry. The number of surgeons, physicians, dentists, anesthesiologists cannot alone handle the huge needs from a growing and aging population. This provides huge opportunities for people who are interested in working in the healthcare field and earning a sustainable wage without obtaining advanced degrees. In Alabama, as in most of the states in the nation, specialized healthcare occupations dominate the high demand occupations. Half of the current list of the top forty occupations in highest demand are healthcare occupations, with nine requiring less than a bachelor’s degree for entry into the careers.  Furthermore, nearly half of the top 40 in-demand occupations are healthcare occupations. 

The current top 40 high demand occupations in Alabama are based on the 2016-2026 occupational employment projections.  All three factors, demand, growth, and wages, are used to determine the occupations in high demand, hot jobs, in the state. Nine of the occupations in high demand in the state are a result of the growing need for healthcare. The top five of these healthcare occupations that are in demand are in nursing and assisting, or aides, most of them requiring a post-secondary certificate or associate degree or higher. The healthcare occupation in the highest demand is medical assistants, which is projected to have an average of 1,055 openings a year in the state through the year 2026.  To enter a position as a medical assistant, applicants need a post-secondary certificate at minimum. Registered nurses are also ranked high, with projected average annual 3,725 openings, and require an associate degree. Due to insurance costs and an increased number of the population needing health care, there are more demands for medical technician and assistant positions.  Occupations such as physical therapist assistants, medical assistants, nursing assistants, dental assistants, and others of this nature are increasing in demand to help physicians with the increased patient loads.  

Nearly a third of the high demand occupations are highly-skilled trade jobs, which typically appear in the construction and manufacturing industries. Four of them—industrial machinery mechanics, engine and other machine assemblers, team assemblers, and computer-controlled machine tool operators—are a direct result of a fast-growing transportation and aerospace manufacturing industries in the state. There is also a high demand for welders and machinists across the state due to the state’s expanding manufacturing industries. The remaining statewide occupations on the high-demand list are IT occupations, engineers, managers, and financial and data analysts. The three engineering occupations are all imperative for the success of the state’s thriving manufacturing sector; industrial engineers, mechanical engineers, and aerospace engineers. Demand for market research analysts is a reflection of an emphasis on making effective and efficient decisions based on data analysis.

 (iii) Education and Skill Levels of the Workforce 

In 2016, only 32 percent of 2016 jobs required at least some college or postsecondary award or certification to qualify them to enter employment. However, around half the people in jobs that did not require formal training or high school diploma were still required to successfully complete some level of moderate to long-term training to learn the specific duties of the job. When looking at projected employment through 2026, the state is expected to grow 6.9 percent. Analyzing the projected growth by formal training categories, jobs requiring a master’s degree are expected to grow the most at 13.4 percent, which is significantly higher than the state average. Furthermore, all categories of postsecondary education from postsecondary non-degree award all the way through a doctoral or professional degree are expected to grow at a rate higher than the state average. This is the norm throughout the country. Those jobs only requiring a high school diploma or less are projected to grow near 5.7 percent over the same period.  

Looking at projected growth, on-the-job training requirements and jobs requiring internships or residencies are projected to grow faster than the state average, at 7.3 percent. In 2016, the average salary for workers in jobs requiring an associate degree ($51,787) surpassed the state average for all occupations ($43,790). The data also proves that work experience pays more; people holding jobs that required work experience to enter the occupation received higher wagesthan the average wage for all occupations in the state. Occupations requiring at least five years of work experience received over double the salary of the state average.  

In recent years, national attention has been drawn to the skill requirements for jobs. Medium skill jobs have become the focus of Alabama’s workforce development efforts. These are jobs that may not require a degree but do require some training after high school, whether it’s extensive on-the-job training, a certification, license, apprenticeship, or an associate’s degree. Over a third of the jobs in Alabama fall into this category. Furthermore, in ADOL’s top forty high demand occupations for the 2016-2026 projection period, there are more people currently employed in high-demand medium-skill jobs than in high- and low-skilled jobs combined. This means that there will be more growth- and replacement-related openings in medium-skill jobs than in high- and low-skilled jobs combined. Medium skilled high demand jobs alone are projected to create over 25,000 new jobs through 2026. These are the jobs that are important to fill, for these grow faster than average, produce many job openings, and provide a sustainable wage.  

Preliminary figures show that the 2018 high school graduation rate in Alabama was 90%, increasing from 87% in 2016.  While reaching 90% is significant, leaders in higher education and industry are concerned about the graduates who are not college and career ready (CCR).  Graduates are classified as college and career ready in Alabama if they meet at least one of the following standards: 1) Score college ready in at least one subject on the ACT;  2) Score silver level or higher on WorkKeys assessment;  3)  Passing score on an Advanced Placement Exam;  4) Earn a career technical education credential; 5) Earn dual enrollment credit at a college; or 6) acceptance into military service. In 2016, there was over a 20 perncent gap between the percent of high school graduation rate (87 percent) and the college and career readiness rate (66 percent). Over two years, the CCR rate has increased nearly 10 percent, to 75 percent, which has narrowed the gap between CCR rate and graduation rates down to approximately 15 percent. Generally, school systems with lower CCR rates also had lower graduation rates. Systems with the highest gaps tend to appear in rural counties.

Another challenge is the high rate of students are required to take remedial mathematics and/or English classes when entering college. In 2018 over 6,000 public high school graduates who enrolled in college had to take remedial mathematics and/or English (5,000 had to take remedial mathematics). 2017 data indicates that in 6 counties, all located in South Alabama, over 50% of the students enrolled in college had to take remedial classes: Barbour 69 percent, Butler 61 percent, Wilcox 57 percent, Bullock 55 percent, Crenshaw 53 percent, and Conecuh 51 percent. Data shows an even larger disparity when examining various subpopulations. During the 2017-2018 school year, only 22.5 percent of African American students in 11th grade reached level 3 or 4 (out of 4) in mathematics on the statewide summative assessment. The high percentage of Alabama students required to take remedial classes beyond high school intensifies the gaps in decision making and problem-solving skills. Alabamians who are deficient in the basic mathematics and English skills will be less likely to be able to apply these skills in the workplace.  

(iv) Skill Gaps
With unemployment rates at a historical low, workforce skills gaps become more apparent. In 2018, the Alabama Workforce Council initiated a study on the state’s postsecondary educational attainment level to determine a strategy for increasing the number of skilled workers in the labor force. Research found that in 2017 Alabama’s postsecondary education attainment rate for individuals age 25-64 was 43 percent. Employment projections through 2025 indicate that the attainment level for all workers needs to be at 51 percent to labor market demands. Another challenge the state faces is many experienced workers who will soon retire out of the workforce.  There are currently over 100,000 workers 65 and older. While some of these may be just working part time to supplement retirement benefits, a majority have not retired yet. Slightly over 300,000 workers are between ages 55 and 64. Furthermore, many young people, who obtain advanced degrees in Alabama, leave the state for better opportunities and higher wages. The state must develop strategies to increase the labor force participation rate and keep Alabama’s best and brightest in the state.

Since 2015, all 12th graders in Alabama’s public high schools are given the WorkKeys assessment, which measures skills proficiency against common workplace skills. The assessment consists of 3 tests; Applied Mathematics, Graphic Literacy, and Workplace Documents. Students receive either bronze, silver, gold or platinum level based on their scores. A bronze certificate indicates that the student should be ready for 16 percent of jobs, while the highest certificate, platinum, signifies that the student has demonstrated applied skills for 96 percent of the occupations in the ACT database.  In Alabama, students earning a silver, gold, or platinum certificate are deemed as workforce ready, which signifies that they are prepared for at least 71 percent of jobs. Since 2015, Alabama’s 12th graders have shown a slow but steady increase in WorkKeys scores, with 59 percent deemed workforce ready in 2015 and 64 percent in 2018. Students in 15 of the state’s 67 counties had workforce readiness below rates below 50 percent and five had rates below 30 percent: Greene, Wilcox, Perry, Bullock, and Sumter.  The lowest scores were apparent in the most rural counties in the state. A statewide examination of workforce readiness by demographic subgroups clearly shows disparity in workforce readiness among groups with barriers to successful employment. Less than 50 percent of homeless students, migrant students, African Americans, and students in foster care scored as workforce ready on the WorkKeys assessment.
 

Using the O*NET database, skills were matched to three significant occupational categories from the 2016-2026 projections: high demand, fast growing, and high wage. The table below displays the percentage of the respective occupations in each category where the skill is classified as a primary skill, which is defined as one of the ten skills with the highest importance scores according to O*NET. Basic skills are required across all occupations as the scores show. The biggest similarity between these three different sets of occupations is all three totals listed the same basic skill with the highest score: critical thinking. Generally, the remaining five skills categories displayed some significant differences across these occupational lists. The high wage occupations had much higher scores in complex problem solving as well as judgement and decision making. Technical skills scores appeared notably higher across the high demand and fast-growing occupations, as opposed to those in high wage occupations all below a score of eight. Another interesting finding is that the high demand and fast-growing occupations had higher scores in time management than the high-wage occupations. These are important indications of skill demands in the coming years. The occupations in greatest demand are require significant technical and time management skills, while the highest wage occupations in the state require more problem solving and decision making.

[1] The information in this section is from https://www.americanactionforum.org/project/opioid-state-summary/alabama/.