One-Stop Activity Increases Dramatically
The fiscal year ending June 2009 saw a dramatic increase in persons seeking career advisement and training through the Greater Phoenix public workforce system. This system of local one-stop career centers assist displaced workers with unemployment benefits, career search, and job training. Clients visiting comprehensive one-stops run by Maricopa County increased 71% in FY 2009, while City of Phoenix one-stops saw a 103% rise. In addition, CWD staff saw a 97% increase in attendees at their career advisement workshops, and a 166% increase in clients seeking career counseling.
CWD Assists with New Website
People unsure about their future career direction can visit the recently launched college awareness web site www.maricopa.edu/work. On this site, you can take a career interest quiz, request a free enrollment guide, and explore information on different types of career training available through the Maricopa Community Colleges. The site also allows you to explore certificate, two-year degree, or university transfer program options in a variety of high demand industry sectors. This grant funded collaboration between CWD, Marketing & Communications, Occupational Administrators Council, and Career Council showed strong signs of success in the first two months with nearly 9,000 site visits.
Economic Indicators (Greater Phoenix):
Nonfarm Employment (August '08 to August '09):
- Total: -7.9%
- Construction: -26.2%
- Information: -4.1%
- Financial: -6.3%
- Business Services: -11.7%
- Trade & Transportation: -7.8%
- Manufacturing: -8.0%
- Hospitality: -2.2%
- Health: -0.7%
- Education: 0.0%
- Government: -5.5%
Unemployment Rate:
- 8.4% Greater Phoenix (August)
- 9.7% U.S. (August)
Corporate Expansions:
- Standard Renewable Energy: 53 jobs
- Nighthawk Radiology: 55 jobs
- OMCO Solar: 100 jobs
- Starwood Energy/LHM: 125 jobs
- REC Solar: 50 jobs
- APL Transportation: 300 jobs
- Cox Data Center: 50 jobs
Corporate Downsizing:
- Qwest Small Business Center: 58 jobs
- Carefree Resort & Villas: 160 jobs
- Huhtamaki Plastics: 40 jobs
- CMX: 85 jobs
- US Airways: Unknown
- e4e Business Solutions: 70 jobs
- ASM America: 106 jobs
- Bashas': 315 jobs
- GMAC Mortgage: 103 jobs
Maricopa Responds to Federal Stimulus
Over the summer CWD staff, working with our colleges and external partners, crafted a response to the Federal Stimulus package. The $787 billion American Assistance and Recovery Act, signed into law earlier this year, includes a variety of job training, competitive grant, and direct aid opportunities. This assistance is timely. Unemployment in Greater Phoenix stands at 8.4% in August, and is expected to top 10% before the end of the year.
The City of Phoenix and Maricopa County Public Workforce System have received $15.5 million in funds for job training through the stimulus package. In collaboration with these entities, Maricopa will be providing cohort training for dislocated workers in areas such as information technology, health care, HVAC, and solar installation. Additional stimulus opportunities for Maricopa include:
- Competitive grants focused on Green Jobs and Healthcare
- Department of Education increases in student aid and fiscal stabilization.
- Valley Interfaith Project has named Maricopa as its training provider for a $476,000 grant award for job training.
HTWI Completes Summer Faculty Externships
Maricopa faculty participated in summer externships with local manufacturing and automation firms as part of a four-year, $900,000 grant from the National Science Foundation. Known as the High Tech Workforce Initiative (HTWI), this grant looks to develop a workforce well-versed in the technology that is forwarding the areas of manufacturing and automation. The grant is managed by CWD staff. Externships allow Maricopa faculty members to work with an industry partner on site, and then bring their knowledge back to the classroom. Often times, this helps the industry partner get insight into applications of new trends, and, the ability to help shape their future workforce. This summer, the HTWI deployed four externships ranging in topics from Carbon Sequestration to Solar Power Technology and Energy Audits of Distribution and Logistics Firms.
For more information about the HTWI externship program please contact
Jay Kahl at jay@azhightech.com.
Economic and Workforce Overview
The recession appears to have reached its peak in the second quarter of 2009. Things are starting to turn around. Nationwide, economic indicators are beginning to bottom out, and a few measures have even turned upward. The national recession likely ended over the summer and a very slow recovery has begun, but until the National Bureau of Economic Research sees the data it cannot declare the recession officially over.
Employment Update:
- The U.S. lost 3.9 million jobs in the first eight months of 2009, on top of 3.1 million lost in 2008. Nationwide, employment has declined in every month since January 2008.
- Currently, the U.S. unemployment rate stands at 9.7% in August. This is the highest level seen in over 25 years. Unemployment is expected to top 10% in 2009 and will continue to increase even after the recovery begins.
- Factoring in other measures of unemployment and underemployment, such as discouraged, marginally attached, and part-time workers, the U.S. unemployment rates jumps to 16.5%.
Arizona Will Lag Recovery:
- The State of Arizona has been hard hit. The recession in Arizona began earlier and recovery is expected to lag the nation by at least a quarter or two due to the lingering challenges of the real estate market and anticipated layoffs in the public sector.
- From a peak in late 2007, Arizona has lost 311,700 jobs, or 11.5% of employment. A further 5.0% decline is expected in 2009, and a 2.3% decline in 2010. Unemployment is headed above 10%, and robust job growth is unlikely before 2011. Employment levels seen in 2007 will not be recovered until 2013 - a six year correction!
- Per capita personal income in Arizona was up only 0.4% in 2008, ranking it 50th among states.
- Of the 372 metropolitan areas nationwide Greater Phoenix had the fourth largest over-the-year decrease in employment in July (-143,100 jobs), putting it just behind Los Angeles, Chicago, and New York.
- Among the nation's 20 largest metros Greater Phoenix ranked second behind Las Vegas in home price declines between June 2008 and June 2009, down 31.6%. From their peak in June 2006, home values in Greater Phoenix have plunged a whopping 54.0%.
Bright Spots:
- The stock market has recovered over 50% of its value from a low in March 2009.
- Initial claims for unemployment insurance peaked nationwide in February and are declining.
- Inflation is under control. The consumer price index was unchanged in July. Prices have remained steady due to the recession and relatively low energy prices.
- The U.S. Consumer Confidence Index is up from historic lows.
- Existing home sales in Greater Phoenix are up, and prices appear to have bottomed out.
- Mortgage rates are at historic lows, allowing those who can qualify to refinance.
- Federal stimulus initiatives are only now beginning to impact the economy.
- Risks for Arizona moving forward include a collapse of the commercial real estate market, public sector spending and layoffs, continued price declines in the housing sector, a new wave of residential foreclosures, and continued corporate layoffs.
- Long term prospects for Arizona remain strong. The state is expected to add 6 million new residents by 2039, and employment is expected to more than double.
For more information on the state economy,
click here
About Us
The Center for Workforce Development works to ensure that the Greater Phoenix economy has a skilled labor pool which meets the existing and emerging workforce needs of the employer community. You can visit us at
www.maricopa.edu/workforce