Workforce Innovations

NOVA Service

Federal Funding to Develop Regional Workforce Plan

The Silicon Valley employment environment is characterized by increasing flux. Evidence suggests that rising education and skill needs have increased the earnings gap between higher and lower skilled workers. In addition, the jobs that are created here do not correlate well with the jobs that continue to be destroyed through the region’s significant job “churn.” Adding to these challenges, Silicon Valley is fast approaching a crisis in its efforts to ensure a qualified workforce that will meet the growing demands of a dynamic, constantly changing and increasingly innovative economy.

These new challenges are impacted by a number of factors, including:

the growing footprint of globalization, particularly as it relates to volatile innovation economies such as Silicon Valley;

the impending retirement of the Baby Boom generation;

the demographics and educational skill challenges of the generations lined up to replace the aging boomers;

the extremely high cost of living within the region—currently the most expensive metropolitan region in the United States save for New York City; and

reduced funding for human capital development.

While businesses try to adapt to rapid market changes, workers experience more irregularity of employment. It is apparent that risk and uncertainty must be managed if economic progress is to continue. This requires the commitment from the region’s leaders to realign workplaces, institutions, and infrastructure to new economic and social realities. To further these efforts, the NOVA Workforce Board was recently awarded a substantial grant by the U.S. Department of Labor (DOL). The purpose of the $250,000 Regional Innovation Grant is to facilitate strategic planning and the development of a comprehensive regional workforce initiative for Silicon Valley.

NOVA has subcontracted with Joint Venture: Silicon Valley Network to coordinate this initiative locally. This type of grant is designed to focus on regions facing significant worker dislocations and is intended to support economic growth and competitiveness. Grantees are expected to use DOL’s Workforce Innovation in Regional Economic Development (WIRED) conceptual framework for their strategic planning activities. WIRED seeks to integrate economic and workforce activities and demonstrate that talent development can drive economic transformation in regional economies. The goals of the project are aligned with those of the California EDGE Campaign.

The contract award to Joint Venture was spurred by a special workforce analysis in Joint Venture’s 2008 Silicon Valley Index earlier this year that noted the challenges facing the region’s mid-wage workers. NOVA cited Joint Venture’s expertise, existing networks of stakeholders, and successful history with similar projects when determining the most appropriate subcontractor to coordinate the project.

“The challenges facing our workforce are formidable and will continue to impact the mid-range earners unless we take decisive action,” said Russell Hancock, president and CEO of Joint Venture. “Joint Venture is the ideal organization to lead this regional approach, and we are grateful to NOVA for the opportunity.”

“This effort is being championed by the workforce investment boards serving the region—work2future (San Jose/South county), NOVA (North Valley) and San Mateo County—and will capitalize on the commitment of the many stakeholders involved in workforce development,” said NOVA Director Mike Curran. “They include business, education and training organizations, organized labor, community-based organizations, government, elected officials, and economists. Joint Venture has proven its ability to bring these groups together.”

Curran said the initiative seeks to improve access to skill building, adult training, and networks that link job seekers, employers, educators, and labor market information providers. It will also develop a new resourcing model that consists of investments from a number of benefactors.

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