Building California's Workforce
Aligning labor supply (a skilled workforce) with market demands (the needs of business and industry) is becoming an ominous barrier to California's ability to compete in the global marketplace. The spring 2011 report from America's Edge, Can California Compete?, identifies a widening skills gap in the Golden State. While 47 percent of California jobs are in "middle skills" occupations that require education beyond a high school diploma, but less than a four-year college degree, the report estimates that only 38 percent of California workers have the skills to fill these positions. Additional concerns among California business leaders are the shortage of workers with science, technology, engineering and math (STEM) skills. Just six years ago, California was 14th in the nation in bachelor's degrees awarded in science and engineering; today it's ranked 45th.
What's the cause of the skills gap dilemma? The American Society for Training & Development (ASTD) identifies multiple underlying causes including the changing nature of jobs, the lag in educational attainment, and most recently, the large-scale loss of jobs during the recession that began in late 2007. Economists anticipate that the current recession will feature a jobless recovery-one in which firms put off hiring new workers with attempts to achieve productivity gains with existing employees.
There is no short-term fix in responding to these issues to advance growth and innovation in California. The immediate challenge is to address skills gaps in ways that improve a company's organizational effectiveness and contribute to its long-term success. This is our focus within EWD programs and initiatives.
In this edition of GROW California, we highlight the many ways in which we work with business and industry to address California's skills gap; it's our long-term commitment and contribution to keeping California businesses competitive. No matter the size or sector of your business, our programs and services support businesses in creating a workplace environment that aligns the talent needed for profitability and growth in a knowledge-based economy.