Testimony of Linda Lingle to the U. S. Senate Appropriations Subcommittee on Labor, Health and Human Services, and Education
February 18, 2004
I. Greetings
A. Good morning Senator Inouye, Congressman Abercrombie and honorable members of the committee.
B. I am pleased to participate in this hearing for the Senate Appropriations Subcommittee on Labor, Health and Human Services, and Education.
II. Improving the economy
A. After enduring years of economic stagnation, the State of Hawaii is on the verge of an exciting period of growth, development and prosperity.
B. There is an impending boom in the construction and housing industry brought about as result of multi-billion dollar contract with the military.
C. This has catapulted government, private businesses, workers’ unions, educators and the community to forge greater partnerships.
D. They’re collaborating on development and execution of solid, strategic plans to meet the demands this wave of opportunity brings for all our residents.
E. This situation compels each sector to re-examine traditional methods of finding and training skilled workers.
F. Involves nurturing a workforce through job training and continued and remedial education to develop skills that will help individuals obtain gainful employment.
G. Brings to the surface issues and problems we have been trying to deal with for many years.
H. Forces us all to think creatively and work together to build a solid platform, not only to ensure today or tomorrow’s success but to ensure long-term prosperity.
I. There is no one group or entity that can do this alone. We need to work in partnership in this great, new beginning for Hawai`i’s economic success.
J. Great sense of urgency within the community to take whatever steps necessary to seize this opportunity.
K. We can do this, but it will take the effort and commitment of us all to build a strong labor and economic foundation.
III. Challenges in projecting workforce demands A. There are several challenges that will take innovative and creative solutions to work through. However, none are insurmountable.
B. Lack of specific numbers of workers needed in different trades may result in inaccurate projections for recruitment and training.
C. This increases the possibility that workers who are selected may be unemployed for long periods while waiting for jobs to materialize.
D. Conversely, there’s the equally disturbing prospect of an insufficient number of qualified workers for jobs in demand.
E. Because subcontract specifications for the military construction projects had not been released, projecting workforce needs was a major challenge.
F. However, at recent meeting between Department of Labor and Industrial Relations and training coordinators of construction trades, it was reported that recruitment of sufficient number of candidates for apprenticeship programs would not pose a major problem in the near future.
G. All trades reported their recruitment efforts will produce sufficient numbers of qualified candidates.
H. Carpenters reported having 300 workers on the bench right now, although they have scheduled another recruitment for apprentices in April 2004 in anticipation of hiring increase.
I. Should their projections prove inaccurate, more workers will be unemployed until the jobs are created.
IV. Effects of aging population on workforce
A. Hawaii’s aging population also has significant ramifications on state workforce.
B. 2000 Census reported that 38% of our population is 45 years of age or older.
C. Baby boomers’ impending mass retirements will further strain the supply of labor in this state while increasing labor demand in the health-medical and social service industries.
D. Young workers who rapidly advance into mid- and upper-level positions due to labor shortages will need accelerated training to fill these jobs.
E. Hawai`i has traditionally imported workers to meet labor shortages.
F. However, median cost of housing in Hawai`i is $400,000, which places our state at a disadvantage when competing for imported workers with our neighboring states.
G. In Nevada, Arizona and California, construction is also expected to increase over the next 10 years and housing there is significantly more affordable.
H. This will likely mean that our historical labor stream may be less available to us.
V. Educational challenges
A. Historically, there are 21,000 annual job openings in Hawai`i.
B. Twelve thousand (12,000) of those jobs, construction included, require education past high school.
C. Yet of the 13,616 public and private students who enrolled in the ninth grade in the fall of 2001, only 64% are expected to graduate on time this year.
D. A large portion of this population is expected to pursue post-secondary education or opportunities outside of Hawai`i.
E. This means industries will compete for a smaller pool of new workforce entrants who are capable of basic math and reading at an eighth-grade level.
F. In 2002, the National Center for Public Policy and Higher Education produced a national state-by-state assessment.
G. In this report, only 16% of Hawai`i’s eighth graders were proficient in their grade-level math and 19% in their grade-level reading.
H. More disturbingly, only 8% of eighth graders from low-income families were found to be proficient in their grade-level math.
I. This education gap creates a problem for construction and other industries, because these eighth graders will enter the workforce in the second and third years of the initial period of the military housing construction projects.
J. The experience of carpenters has been that 40% of applicants fail the written test required for acceptance into the apprentice-training program.
K. They fail the test because they cannot satisfactorily complete eighth-grade math and reading.
L. To compound the problem, half of those who do pass the written test will fall out of the training program because they fail drug tests or are ill-prepared to handle the rigors of the training program.
VI. Need for education reform
A. All this points out the need for education reform in our state.
B. The very foundation of a strong, skilled and successful workforce is education.
C. Hawai`i is blessed with students who can learn, teachers who can teach, principals who can lead, and communities that want to support their schools.
D. Even so, the public education system is not performing at an acceptable level.
E. Study after study has concluded that this is not a people problem – it is a structural problem.
F. We need to act with a sense of urgency to help our children succeed in the classroom and later in the workplace, in whatever career they choose.
VII. What we’ve been doing to help
A. Department of Labor and Industrial Relations, through its Workforce Development Council and Division, partners with construction trades, local Workforce Investment Boards, community colleges and other public and private agencies.
B. The department aggressively promotes trade and apprenticeship programs and assists with recruitment efforts.
C. These recruitment efforts are conducted at fourteen (14) One-Stop Centers for Workforce Assistance located throughout the state.
D. The One-Stops provide jobseekers and employers with access to electronic job matching services, resource facilities, business equipment, Internet access and job and career counseling services.
E. These centers collectively contain the largest data bank of approximately 48,00 job seekers in Hawai`i.
F. All centers are gearing up to intensify recruitment efforts and enhance services and programs.
G. My administration has undertaken several initiatives to deal with the “projected” shortage of skilled workers.
H. In many cases, my administration serves as a facilitator to numerous groups and agencies engaged in efforts to help this situation.
I. State also participating in numerous job fairs and outreach activities to promote numerous workforce development programs and services that are available.
J. Workforce Development Division – in partnership with private businesses, other government departments and agencies, and trade industries – produced an annual job fair in Honolulu in January.
K. This event drew over 3,000 jobseekers and included almost a hundred employers, and some trades reported receiving hundreds of applications for apprenticeship programs.
L. Another Job Fair is scheduled for May 2004 and is projected to attract even more jobseekers due to high school and college graduations occurring at that time.
VIII. Pre-Apprenticeship pilot program
A. Department of Labor – in collaboration with Neighbor Island Workforce Investment Boards, community colleges and trades – is launching the Pre-Apprenticeship Program.
B. This pilot program is offered through the Workforce Development Council and funded by the Workforce Investment Act Discretionary Fund.
C. The program is intended to provide remedial training in math and reading that will significantly increase the success rate of Hawai`i applicants for apprenticeship jobs in construction and in other industries facing a lack of skilled workers.
D. University of Hawai`i’s Community Colleges will design the curriculum and select instructors from programs at Community Colleges and Community Schools for Adults.
E. The curriculum will be aligned with the specific entry requirements of employers and can also be used by other entities throughout the state.
F. This pilot program will include at least 100 people who have been unable to pass entry apprenticeship tests, along with participating employers and unions.
G. Local Workforce Investment Boards in each county will collect data to monitor each participant’s progress and evaluate the program’s success.
H. Advertising for the first recruitment of this pilot project will take place in March.
I. Beginning in May, local Workforce Investment Boards in each county will work with trade organizations to steer applicants to these pre-test refresher or remedial courses.
IX. Pilot project for high school students
A. Another effort being spearheaded by the University of Hawai`i, Honolulu Community College, is developing arrangements with the DOE for implementation of a pilot project to be implemented in the summer.
B. High school students will earn credit for vocational training at HCC.
C. We fully support this innovative project because it will eventually lead to stronger and more consistent vocational technical curriculum across all public high schools.
D. It is also directly in-line with President Bush’s recent State of the Union address in which he pledged to increase financial support to community colleges to enable them to better train individuals in industries that are creating the most new jobs.
E. Better linkages between secondary school, working world and post-secondary education will be promoted and supported to improve students’ awareness of construction trades and encourage their selection of the trades as vocational choices.
F. A major outreach event is tentatively planned for late summer or early fall to promote and educate youth, schools and jobseekers about apprenticeship programs, with focus on the construction trades.
X. Federal funding
A. Federally funded employment and training programs for adults and youth, such as those under the Workforce Investment Act administered by the DLIR, will increase their focus on construction trades to equip participants for possibly entry into these jobs.
B. The State respectfully requests assistance with federal funding to effectively support, facilitate and drive many of these ongoing efforts.
C. Automation of existing manual processes, functions, data collection and certification identification is critical to ensure rapid response, quality support and service delivery.
D. We also need funding to increase our capabilities to provide Internet-based programs and information to the community.
E. High demands for outreach activities will also require additional funding to fully promote construction trades and educate students, school faculty and jobseekers about these industries.
F. Thank you for allowing me the opportunity to testify. I will be happy to answer any questions you may have.
