The 2003 Catalog of Workforce Preparation Programs contains information on 75 State- and federally-funded programs administered by 15 New York State agencies, representing an investment in the workforce of over $1 billion. These programs provide education and training activities and services to employed and unemployed adults and youth. While some programs are administered directly by State agencies, others provide grants for programs implemented by schools, colleges, community-based organizations, and professional associations.

New York State's workforce preparation programs can be categorized in several ways. One group of programs focuses on providing education and training to insure that new labor force entrants possess the skills demanded by employers. Other programs assist individuals who must contend with specific problems (i.e. lack of money, basic skills or education, transportation, etc.) before they can compete successfully in the labor market and become self-sufficient. Several programs benefit those who are already employed. These programs aim to enhance the competitiveness of New York State's businesses by retraining and upgrading the skills of existing workers and improving productivity while retaining jobs. A fourth area of program activity facilitates the re-entry of displaced or dislocated workers.

According to the U.S. Department of Labor, between 1995 and 2002, the civilian labor force grew by just over 850,000 workers, from 8,512,000 to 9,362,000. That number stayed fairly constant from June 2002 to June 2003. During the latter period, the unemployment rate remained at roughly 6.1%, lower than the national average for the first time since 1991. As off June 2003, the unemployment rate was higher in New York City (8.1%) than in the rest of the State, which was enjoying a comparatively low 4.9%.

The labor force, reflecting socio-demographic changes, has shifted in composition during the last decade. Current Population Survey data from 1990 and 2002 indicate that women's participation in the labor force is up from 44.2% to 46.8%. The percentage of workers between the ages of 25-44 dropped from 53.5% in 1990 to 47.1% in 2002. The share of workers ages 45 and older grew from 31.2% in 1990 to 38.6% in 2002.

There are changes in the workforce environment as well. Technological transformation and the global economy have altered workers' lives. Overall, the need for advanced levels of education and training in the U.S. is expected to greatly increase. According to the Bureau of Labor Statistics, "employment in all seven education or training categories that generally require a college degree or other post secondary award is projected to grow faster than the average across all occupations. These categories accounted for 29 percent of all jobs in 2000 but will account for 42 percent of projected new job growth, 2000-2010."¹

Many jobs that were considered non-college level by employers are now classified as college level. Education upgrading has occurred in many occupations due to changes in job duties, business practices, and/or technology. On the other hand, in 1998, an estimated 17 % of college graduates (5.9 million nationally) were working in positions that did not require skills learned in a bachelor's degree program. While some of these graduates chose to enter such occupations for personal reasons, others worked in non-college level jobs because they cannot match their skills and knowledge with college level positions.²

Higher education in the State has responded to the demand for high tech workers. In 2001-02, of the college degrees awarded in the State, 8% were for computer and information systems or engineering, up slightly from the previous year (7.9%).³ The number of Bachelor's, Master's, and professional degrees conferred in 2001-2002 was higher than in the previous decade.⁴ Associate degrees have stayed roughly stable during that time, but Doctoral degree conferrals have been decreasing since their peak in 1993-1994.

Nevertheless, both labor force quantity and quality (as measured by the shortage of skilled workers) have emerged as critical issues here in New York. Employers publicly acknowledge an inability to hire enough workers with the requisite skills. This situation could restrain the State's future economic growth.

In a survey of its members conducted by the Business Council of New York, Inc., employers remain very concerned about the shortages of skilled workers.⁵ As technology continues to drive changes in almost every industry sector, and as new, emerging industries gain significance in the State's overall economy, demand for a workforce that is technically skilled will grow. The National Science Foundation in its report "The Supply of Information Technology Workers in the United States" finds that this deficit is especially true in the information technology industry.⁶ These kinds of jobs, associated with the design, development, implementation, support, or management of computer-based information systems, particularly software applications and computer hardware, are distributed throughout virtually every sector of the economy, and are among New York's fastest growing occupations.

An earlier Business Council report concluded that almost 70% of business respondents acknowledged that productivity in their companies had suffered because of employee skill gaps.⁷ This skills gap - the mismatch between skills of the labor force and those required in jobs created by today's economy - is a barrier to further job creation and economic expansion. Almost all employers stated that their existing workforce needed to upgrade its skills in one or more areas - with technology skills ranked first (84.5%).

Recent data, however, have shown decreases in industries that employ graduates in computer and information systems and engineering. Between June 2002 and June 2003, 8,400 jobs were lost in computer systems design and related services, and 8,000 telecommunications jobs disappeared.⁸ On the other hand, 26,800 jobs were added in the educational and health services sector where labor shortages seem to be recurring.

Today's workers, whether new or experienced, must engage in a continuing process of developing their skills and abilities to perform effectively in a changing work environment. Workforce Preparation Programs benefit both employers and workers to achieve this goal and, thus, to strengthen and expand business and job opportunities in New York State.