Talent 2025 CEO Council Meeting

CEO Council Meeting
October 7, 2020

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Labor Force and Unemployment, West Michigan (2000-August 2020)
Labor Force
(Right axis)
Unemployment Rate
(Left axis)
Quick Recovery, But Not a Return to Normal
Loss of Gig Economy increased Labor Force
32,685 participants above pre-COVID
Unemployment Stagnating
1 in 13 are unemployed (7.6%); February – 2.9%
Falling Optimism
1 in 5 Americans have relocated or know
someone who moved because of pandemic
– Pew Research Center
49% ‘probably or definitely will not’ return to same
job (Aug. 2020), compared to 20% in April
– Associated Press/NORC
77% of respondents reported it’s a bad time to find
a quality job – Gallup

Job Losses Concentrated Among Low-Wage, Low Skill Sectors
Industries with the lowest wages and
lowest educational attainment are
being hit the hardest; they have
reduced capacity for remote work.
In West Michigan, these 2 sectors
account for:
• 1 in 4 Black workers
• 1 in 3 workers of two or more races
• 1 in 4 Hispanic or Latino workers
• 1 in 3 female workers
• 1 in 3 millennial workers

Greatest Impact on Minorities, Women, and Millennials
Minorities (Black/Hispanic):
• Disproportionately more likely to be essential workers or employed among industries most disrupted by COVID. – Economic Policy Institute
• Severe disparities across educational attainment and median incomes prior to COVID (income gaps have widened)
• Hispanics consistently report higher rates of being laid off compared to whites and blacks. – Economist/YouGov
• 1 in 6 Black workers were laid off between February and April, compared to 1 in 4 Latina workers. – Economic Policy Institute
Women:
• Even before the pandemic working mothers were significantly less attached to labor force, now they face compounding stress from shifts to home
and family life.
• For those with children under 18, LFPR was 21.1% lower for women compared to men (2019).
• LFPR was 10.4% lower among women with children under 6, compared to women with children 6-17 years old (2019).
• Women are disproportionately more likely to be essential workers or employed among industries most disrupted by COVID (Retail & Hospitality).
• In West Michigan, women comprised 81% of Health Care jobs and 53% of Retail & Hospitality jobs in 2019.
• Single mothers accounted for 11% of all West Michigan households (63,011), compared to 5% for single fathers (28,486) in 2018.
Millennials:
• People ages 18-29 and 20-44 reported being more worried about losing their jobs than any other generation; this is the second financial crisis
millennials have experienced in their professional lifetimes. – Economist/YouGov
• The unemployment rate for millennial adults (ages 16-24) peaked at 20% in June 2010 (following the Great Recession). Today, these individuals (now
aged 25-34) face an unemployment rate of 13.1%, the second highest of any age group after 16-24 (18.5%). – Pew Research Center
• More likely than other age groups to say they had been laid off and separately that someone they know had been laid off. – Economist/YouGov
• Over 1 in 4 (aged 16 to 29) are now unemployed; Labor force participation dropped -4.5% from July 2019 (1.8 M fewer participants).
• 37% report they moved, someone moved into their home or they know someone who moved because of the outbreak. – Pew Research Center
Agenda | Recovery in Employment, Insights & Trends | Workforce Development | Workforce D&I | Education | Summary 6

Accelerated Shift to Automation and Remote Work
78% of employers plan
moderate to extensive
changes to remote work
strategies.
- Ernst & Young
By 2030, 60% of
occupations have at
least 30% of work that
could be automated.
- McKinsey Global
55% of employees want to
work remote 3+ days per
week; 75% want to work
remote at least one day per
week.
- Morning Consult
62% of hiring
managers say their
workforce will be more
remote going forward.
- UpWork

What HR Leaders Told Us
• 3 in 4 report remote work was the most dramatic change since the pandemic
• 53% report the pandemic increased the pace of adoption for automation/AI
• 85% are considering a permanent shift to allow employees to work remotely
• 46% anticipate long-term challenges to managing distributed teams and dual cultures (remote
team vs on-site team)
• 2 in 3 reskilled or redeployed their current workforce to adapt to changing market conditions
• All reported ghosting was a significant problem in filling open positions
‘Employer Trust, Job Satisfaction, and Job Meaning have new value since COVID’ - Payscale

What HR Leaders Told Us
• 2 in 3 reported that expanded unemployment benefits made it difficult to recall workers
• 30% offered bonuses and/or increased wages and benefits to recall workers
• 50% report childcare availability has moderately/greatly impacted return to work
• 64% cite that varying K-12 reopening plans has moderately/greatly impacted return to work
• 1 in 3 cite continued labor shortages and unexpected resignations
• 36% report increased demand for front-line workers; 47% say these are hard-to-fill
• 1 in 5 report increased demand for Diversity & Inclusion officers

Reskilling the Workforce at Scale Needed in Response
• Minorities, women, & millennials
experienced disproportionate job loss
• 50,200 jobs below pre-COVID as of August
• 1 in 13 are unemployed
• 4 in 5 jobs were service-providing
• 3 in 5 jobs required a High School
Diploma or below
• 32,685 labor force participants above
pre-COVID
• 65% of current job postings require a
postsecondary credential

#
Poll Questions

#
Workforce Development:
Roadblocks to Full Employment

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• Women are default caregivers
• Heads of single-family households
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Challenges
New COVID-related health and safety rules
Health concerns among providers, parents
The ratio of kids allowed decreased due to COVID
Demand down with more parents working from home, unemployed
Advocacy
Increase ratios for home and group providers
Greater flexibility for before and after-school care
90-day grace period to implement new rules
Simplify funding and oversight into one office
Child Care
%
%

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14
Challenges
• Serves only a fraction of need
• Lacks accountability, too costly for outcomes
• Not convenient for working adults
• Fails to prepare people for in-demand jobs
Advocacy
1. Competitive bidding for more qualified providers
2. Integration of occupational training
3. Higher standards for performance
4. Align state and federal program requirements
Adult Education

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15
Returning Citizens

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16
A 20-Year Problem Solved
See link on Resources page

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Workforce Diversity & Inclusion

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Making Measurable Gains in Diversity and Inclusion
2014 2015 2016 2017 2018
Workforce D&I
Group formed
Inclusion
Interviews
Report
published
1st Community
of Practice
(26 employers)
CEO Council approves:
• CEO Commitment Form
• Benchmark Survey
• Employer Toolkit
Workforce DE&I
Strategies Piloted
(21 employers)
• HireReach Cohort 2
• 30 Committed
Employers
• Improved
Benchmark Survey
• Increased
resources on
PIVOT2019
2nd Community
of Practice
(10 employers) 2020
Workforce
D&I
Strategies
Launched
• Cohort 1
• D&I Strategies Expanded
Implementation
80+ Committed
CEOs

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19
D&I Update

Invitation to West Michigan Business Leaders

#
Education

Higher Education

K-12 Priorities
College and Career Readiness
• Career Technical Education (CTE) has increased significantly
since 2014:
• 6,500+ more students enrolled
• 20,000+ completed a CTE programs
• CTE grad rate is 15 points higher (95%) than all MI students
Early Literacy
• 2019: MI ranked 32nd in the nation on 4th grade reading
• Expected to see statistical where there was Reading Now
Network-like programs
• Increased accountability and use of literacy best practices

Career Technical Education
Advocacy
1. Employers offer work-based learning
2. Expand high school CTE programs
3. Help districts buy industry equipment
Challenges
• Work-based learning opportunities lost
• School scheduling (remote/full-time/hybrid)
• Credentialing of students
• Inability to participate if remote learning

Internet Access
• At least 30% of West Michigan students
lacked access to reliable internet in Spring.
• Broadband access varies significantly:
• Osceola (30%)
• Lake (31%)
• Oceana (38%)
• Kent (97.9%)
• Ottawa (98.6%)
Not an Easy Fix
• Many providers and stakeholders
• Build out is expensive
• Providers need household data to invest

K-12 COVID Cases (Example)
Kent County Health Department
As of October 1:
• 92 schools in Kent County have had cases of COVID-19.
• The total number of cases in students and staff combined is 170.
• Of these cases:
• 99 have had a known exposure outside of school
• 6 have had a known exposure within school
• 65 have had an unknown exposure.

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In-person learning is significantly more effective in
improving student learning outcomes
Remote learning will exacerbate the achievement
gap between economically disadvantaged students
and their peers
The risk of COVID-19 is the same for students
regardless of the number of days they attend
school in-person (full-time vs. hybrid)
In-person learning provides opportunity to develop
essential social and emotional skills and receive
non-academic supports, such as mental health
services.
In-person learning provides a mechanism to meet
students’ nutritional and physical health needs.
Remote vs In-school Learning

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MAVIN

Summary & Call to Action

Talent 2025 CEO Council Meeting

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