Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - January 19, 2000
Contact:  Governor's Communications Office, 360-902-4136
Alt Contact:  Mark Stewart, Workforce Training and Coordinating Board, 360-664-4232

Locke proposes boosts in on-the-job training, education

SEATTLE — Gov. Gary Locke today released a survey that shows two out of every three employers in Washington had trouble finding qualified workers last year. To fight the growing gap of skilled workers for Washington employers, Locke is urging the Legislature to pass his proposal that would boost the amount of on-the-job training and education for workers around the state.

"We have put together a number of initiatives that would expand education and training, especially for high-demand, information technology jobs," Locke said. "Our state has thousands of companies and thousands of working families who would be better served if we could expand on-the-job training and education to keep these high-paying jobs here in Washington."

Locke proposed three items in his supplemental budget that would address workforce development. The first would add $2.4 million to increase the capacity of the state's colleges and universities to provide training for high-demand information technology jobs that are available now.

The governor's second proposal would use $1.2 million to invest in a Skills Gap Fund to help build partnerships between industries and the education and training systems. The proposed system would provide on-the-job training to those who need it, Locke said, while giving community colleges a chance to train workers to fill the needs of local industries.

His third proposal would provide a business-and-occupation tax credit of 50 percent of the cost of worker training for businesses that contract with local community colleges and private schools.

"Employers tell us that if they can't find workers with the skills they need, they can't innovate and grow," Locke said. "We need to keep Washington jobs here for Washington workers."

Locke unveiled the results of a survey of more than 3,900 of the state's employers recently completed by the state's Workforce Training and Education Coordinating Board. Among the initial findings of the Workforce Board's survey:

Difficulty finding qualified workers - Employers in Puget Sound have a harder time finding qualified workers than firms in other parts of the state. For example, firms in Snohomish (71 percent), King (69 percent) and Pierce (68 percent) counties have greater difficulty than those in nine small counties at the eastern edge of the state: Asotin, Columbia, Ferry, Garfield, Lincoln, Pend Oreille, Stevens, Walla Walla and Whitman (53 percent).

The scarcity of skilled workers affects all industries, most particularly construction (73 percent) and manufacturing (70 percent). Companies in the fast-growing high-tech sector, including software and electronics, had only slightly less difficulty (63 percent).

Difficulty finding qualified workers by skill - Among those reporting difficulty, 91 percent of firms have a hard time finding skilled workers with occupation-specific skills; 90 percent have difficulty finding workers with problem-solving or critical-thinking skills; and 85 percent have problems finding workers with positive work habits and attitudes.

Economic consequences - Among those reporting difficulty, 74 percent of firms said the scarcity of skilled workers will lower productivity, while 67 percent said it will reduce output and sales. Sixty-four percent said scarcity will reduce the quality of their products and services.

Skill requirements, training increasing - Forty-seven percent of all employers report that skills required to adequately perform production or support jobs increased during the past three years. Seventy-six percent of high-tech firms and 56 percent of firms in the service sector reported increased skill requirements.

Thirty-eight percent of firms say they have increased classroom training for employees during the past three years. Eighty-five percent of employers report that they provide on-the-job training.
Surveys were mailed statewide to 10,739 employers during the summer and early fall of 1999. More than 3,900 employers responded to the survey, a response rate of 37 percent. Results are weighted to reflect all employers statewide.

Initial results of the employer survey have been shared with each of the 12 local Workforce Development Councils to use in their ongoing strategic planning efforts.

The Workforce Board conducts the survey every two years to analyze the workforce development needs of the state's employers and to advise state policymakers on these needs and strategies to address them.

The governor released the survey results today after touring GreaterGood.com of Seattle. GreaterGood.com builds, markets, and manages online shopping villages in which a percentage of each purchase benefits a non-profit organization.

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