Wisconsin Department of Workforce Development

TOMMY G. THOMPSON
Governor
State of Wisconsin

 For Immediate Release - September 9, 1998
Contact: David Blaska (608) 266-6925

GOVERNOR ACTS NOW TO BUILD TOMORROW'S WORKFORCE

Milwaukee - Gov. Tommy G. Thompson today unveiled a dramatic new initiative to assure that Wisconsin's unparalleled economic boom continues well into the 21st Century. The governor said his Initiative on Building Tomorrow's Workforce will forge partnerships with business, labor, education, state and local government to keep employers and high-skill jobs growing in Wisconsin.

The Governor's Initiative on Building Tomorrow's Workforce emphasizes training, education, recruitment, and supportive services, such as childcare. It responds to five workforce forums held this summer throughout the state involving 435 businesses in which, overwhelmingly, employers said they needed more and better-trained workers, especially in the industrial and technical trades.

"By Building Tomorrow's Workforce, we are opening the door wide to make certain that all of Wisconsin can continue to prosper," Gov. Thompson said. "Enlarging the workforce and increasing the supply of high-skilled workers encourages business to keep growing and helps working families move up the earnings ladder."

In the last decade, Wisconsin's record-shattering economic juggernaut has created jobs at twice the national rate. Today, a greater percentage of Wisconsin residents have jobs than in any other state in the nation. And never has Wisconsin's unemployment been lower.

But that very growth and the demographics of an aging workforce have created a new challenge. Many businesses that would like to expand must rein in their plans because they can't find the workers they need - especially those in the high-end industrial skills.

He announced the initiative at Tower Automotive, one of Milwaukee's largest employers of high-skilled workers.

1. Cabinet level. To head the effort, the governor said he would name a Special Assistant to the Governor for Building Tomorrow's Workforce. The special assistant will have cabinet rank and will use the existing Council on Workforce Excellence, made up of business, labor, education, and government, as his sounding board.

   "This appointee will have broad powers to assure that all state agencies are working cooperatively with business and labor to get the job done right," he said.

2. Technical education. That mandate includes:
   • Map out the future of technical and industrial education for high school and post-secondary students. The governor will appoint a task force to bring back that report by December 31.

   • Increase youth apprenticeships by 5,000 by the Year 2000.

   • Make youth apprenticeships available to the 5,000 low-income teenagers now participating in Milwaukee's Step Up program.

   • Begin a new youth apprenticeship in welding at Tower Automotive and Super Steel in conjunction with North Division High School.

3. Childcare. Many mothers would like to enter the workforce, at least part-time, if affordable childcare was available. To help those families, the governor will:
   • Provide $10 million in below-market rate loans and grants to develop childcare centers in workplaces and large apartment complexes.

   • Earmark $8.5 million in training scholarships to help childcare centers staff up.

   • Provide business management assistance to stabilize a childcare industry that has been plagued by rapid business turnover.

   • Promote the availability of Wisconsin's childcare subsidies to any working family living within 165 percent of the federal poverty level ($22,000 a year for a family of three) through a mass media campaign.

4. Apprenticeships. Adult enrollment in Wisconsin's industrial apprenticeships will be increased by 10 percent (or 1,000 enrollees) in three years. The effort will be concentrated on producing more qualified electricians, machinists, tool and die makers, and other high-skill trades.

5. Making the most of under-used workers.

   • Teach English in the workplace to Wisconsin's growing Hmong and Hispanic residents.

   • Update job-search technology to make it accessible to sight- and hearing-impaired to reach people with disabilities.

   • Seek federal waivers to implement Pathways to Independence.

6. Bringing new workers to the workforce.

   • Former residents and veterans recently released from the armed services will be encouraged to return to the state.

   • Recruiting both ends of the age spectrum: retirees to consider rejoining the workforce, at least part-time, and young job entrants still weighing their options. The governor unveiled two public service announcements urging job seekers to "Get Connected" at Wisconsin Job Centers located throughout the state.

   • Work with Congress to ease the impact on Social Security so that retirees can participate in the workforce and provide tax breaks to encourage on-the-job training.

     "This is a golden opportunity to make sure all citizens fully share in Wisconsin's prosperity," Gov. Thompson said.

7. Transportation. The state will help local units of government form partnerships with employers to bring workers to jobs, childcare, and apprenticeship training.

In addition, Governor Thompson will announce tomorrow a major new tax initiative that will make Wisconsin even more attractive to all workers.

Initiative borne of state's successful economy

"Building Tomorrow's Workforce is a challenge borne of good news," Gov. Thompson said. He noted that:

• In the last 11 years, Wisconsin has created nearly 640,000 jobs– a 39 percent increase, compared to 19 percent nationally.

• The unemployment rate over the first seven months of 1998 is the lowest ever.

• In the last 11 years, Wisconsin has created 94,900 manufacturing jobs, while the nation has lost more than 462,000 during. Manufacturing jobs in the state have increased 18.8 percent compared to a 2 percent decline nationally.

Job creation has been so successful in Wisconsin that in the Milwaukee metro area, employers were trying to find 11,300 full-time workers with technical training or experience -- and having a hard time filling half those jobs.

Employers there are paying $7.40 an hour for jobs that required no high school and no experience

• over two dollars more than minimum wage. In a recent survey, 46 percent of business leaders said a shortage of workers was their chief concern. Another survey said 34 percent of companies surveyed had lost work because they did not have enough qualified workers.

Wisconsin's demographics is not helping. The post World War 2 baby boom produced 90,000 new entrants into the workforce in the early 1980s to replace 41,000 people reaching retirement age. That trend has already begun reversing and in 20 years, only 73,000 Wisconsin residents will join the workforce while 79,000 reaching age 65.

What's more, a majority of jobholders in some of the key industrial trades are fast reaching retirement age. For instance, 85 percent of Wisconsin's tool and die makers will be eligible to retire in five years.

State economists estimate employers could hire 110,000 more workers immediately. But 74 percent of the state's population age 16 and over already is employed, according to the Wis. Department of Workforce Development.