department of labor: 2007 wia state plan

8/14/2019 Department of Labor: 2007 WIA State Plan

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Strategic Five-Year Plan for

Title 1 of the Workforce Investment Act of 1998and theWagner-Peyser Act

Years Three and Four

July 1, 2007 June 30, 2009

May 1, 2007

Submitted by theSouth Dakota Department of Labor

700 Go ernors Dri e


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Table of Contents

i. Plan Development .....................................................................................4

ii. Plan Implementation................................................................................. 5

iii. Plan Modifications .....................................................................................6

I. State Vision ................................................................................................7

II. State Workforce Investment Priorities ......................................................28

III. State Governance Structure.....................................................................30

IV. Economic and Labor Market Analysis ......................................................37

V. Overarching State Strategies ...................................................................47

VI. Major State Policies and Requirements ...................................................55

VII. Integration of One-Stop Service Delivery .................................................61

VIII. Administration and Oversight of Local Workforce Investment System .....63

IX. Service Delivery .......................................................................................77

X. State Administration ...............................................................................112

XI. Assurances ............................................................................................121

Attachments

A. Statewide Performance Indicators and Goals ........................................122

B. Program Administration Designees and Plan Signatures.......................124

C. Adult Education and Family Literacy Plan..............................................126


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i. Plan Development

The South Dakota Workforce Development Council (SDWDC) requires local One-Stopboards be composed of a majority of business people. As a result, the businesscommunity has not only had ample opportunity to review and comment on the plan, butwas an integral part of its development. Education, vocational rehabilitation, community-based organizations, etc., are represented on the SDWDC and were given completeaccess to the development and content of the Unified Plan.

The Governor and the SDWDC reviewed and approved the proposed plan prior tosubmission.

A draft copy of this plan will be provided to the following partners:

South Dakota Workforce Development Council; South Dakota Department of Labor (SDDOL); South Dakota Department of Social Services (DSS); South Dakota Department of Human Services (DHS); South Dakota Department of Health (DOH); South Dakota State Library; South Dakota Even Start Program; South Dakota Department of Corrections (DOC); South Dakota Office of Career and Technical Education; Lutheran Social Services of South Dakota; Black Hills Special Services Cooperative; and

Sub-grantees for Adult Education and Literacy and WIA Youth projects.

Persons wishing to review the plan will be given several options to do so. The draft planwill be made available through the SDDOL home page on the Internet for all to see. Forpersons without access to the Internet, hard copies of the draft plan will be mailed toevery South Dakota Career Center (SDCC). Persons wanting a personal copy of theplan can obtain them through SDDOL.


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ii. Plan Implementation

As a single statewide service delivery area (SDA) under JTPA, the leadership and visionfor the system has come from the Governor and the the SDWDC. For purposes of TitleI of the Workforce Investment Act (WIA), the State will continue to be treated as astatewide local service area. The SDWDC has been the driving force behind workforcedevelopment since it was first formed under the Comprehensive Employment andTraining Act (CETA). This distinguished group of key State agency heads, employers,and other interested parties has guided the development of today's One-Stop deliverysystem in our state. The majority of employment and training programs are provided bythe SDDOL, which also provides administrative support for the SDWDC. Under thisstructure, various programs including WIA, Wagner-Peyser, Unemployment Insurance(UI), Job Corps, TANF, and Veterans' employment and training programs are broughttogether with the interests of economic development, career and technical education,Adult Education and Literacy, and vocational rehabilitation.

The SDWDC was formed to maintain the momentum for economic development andvitality by better connecting workforce strategies to economic needs. The 17 memberSDWDC is comprised of a majority of private sector members who represent the State's

employers, labor unions, community leaders and representatives of five State agenciesincluding the Secretary of Labor, Secretary of Education, Secretary of Human Services,Commissioner of the Governors Office of Economic Development (GOED), and theExecutive Director of the Board of Regents. The SDWDC members share a commonpurpose: to improve the services to employers and their current and future employees bystreamlining the delivery of workforce and training services.

The purpose of the SDWDC continues to be to provide planning, coordination,monitoring and policy analysis for the State training system as a whole and to advise theGovernor on strategic policies, goals and standards for the development, andimplementation of effective programs for the development of talent growth for theeconomy and business needs of our state.

In addition to the key policy decisions made at the State level, a good deal of localcontrol has been built into the system in the form of local workforce boards. Theseboards, comprised by a majority business membership have been developed in eachSDCC location. The boards deal with a variety of local workforce issues ranging from

Alternative High Schools to overall long term planning for WIA. A unique blend of stableState agencies and flexible local private non-profit organizations, as well as faith-basedorganizations, effectively delivers workforce services to our employer and participantcustomers.


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iii. Plan Modifications

Economic Development Goals...................................................................................6 - 18

Agency Partnerships ....................................................................................................... 18

Education and Training Opportunities.............................................................................19

Role of Key Players..................................................................................................19 - 20

Governors Vision for Youth .....................................................................................21 - 26

State Workforce Investment Priorities ......................................................................27 - 28

Collaborative Cross-Agency Approach ........................................................................... 36

Services to In-Need Youth ..............................................................................................53

Youth Eligibility Criterion ..........................................................................................75 - 76

Workforce Information Implementation ........................................................................... 79

Youth Services Strategy.......................................................................................104 - 105

Funding for Cross-Agency Collaboration .............................................................106 - 107

Description of Waivers and Workflex Authority ....................................................112 - 113

Proposed Levels of Performance.................................................................................. 120


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Expand the use of information available through the South Dakota TravelMonitoring System, which collects information (in a confidential manner) on

attraction visitation, and occupancy for independent hotels/motels, campgroundsand international guests in South Dakota. The information will be distributed toindustry members through sdvisit.com, e-mail notifications, and annual andmonthly reports.

Research and develop packaging, appropriate content, and distribution ofredesigned CD media kit.

Implement an industry communication campaign to inform and educate tourismbusiness leaders and partners of the offices marketing efforts.

Develop a cooperative program with the South Dakota Convention and Visitors

Bureau Association to increase conventions and other group travel to SouthDakota.The team will research and implement a marketing plan for a minimumof three new professional or group associations for potential trade salesmarketing opportunities.

Research opportunities within the target geographic markets identified by theOffice of Tourism for training and education of South Dakota key travel agents inthe same market.

Continue promotion of South Dakota in six international markets.

Develop and review strategies and incentives aimed at combating increasinggas prices in partnership with the producers and marketers of ethanol-enrichedfuels.

1B. Focus new energy and investment on expanding the fall shoulder season for visitorsin order to increase the percentage of tourism revenues for this season to 42 percent.

Create a new marketing plan that focuses on vacation packages. Invest in promotions to expand the shoulder season. Attract "reverse snowbirds".

These additional goals and strategies have been established:

Create a new marketing plan focusing on vacation packages. Invest in promotions to expand the shoulder season. Attract "reverse snowbirds".

Steps to achieve these goals include: Increase shoulder season marketing efforts with greater financial resources.

Additional resources will be used to enhance peak season fly/drive packages,package advertising for central and eastern South Dakota, Internet key wordcampaigns, direct marketing to out-of-state hunters, and partnerships with mediapartners such as ESPN and Pheasants Forever.


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Establish partnerships to pool resources (e.g. Rapid City Air Service Task Force,Mickelson Trail, South Dakota Advertising Cooperative, National Park Service).

Develop coordinated marketing plans. Continue Governors $1 million challenge for 2005 and 2006.


Build and evaluate contracts with regional marketing associations to reflect theshared vision of 2010, Goal 1 and to coordinate marketing efforts across thestate.

Continue to have Tourism meet with the South Dakota State Historical Societyand the South Dakota Arts Council to plan and implement a marketing andeducational program for cultural and heritage tourism.

Coordinate and host the annual Agri-Cultural Heritage Tourism Conference inpartnership with the Southeast South Dakota Regional Tourism Association inNovember 2006.

Enhance relationships between the Visitor and Industry Relations (VIR) teamand others with contacts in other state/federal agencies and encourage thecreation of agency roundtables to openly discuss projects, issues,

opportunities, etc. that affect participating agencies.o The VIR team will initiate contact and develop on-going communications

with representatives of tribal tourism organizations to meet and openlydiscuss issues and opportunities.

o The team will enhance the visitor information currently provided ontravelsd.com.

o The team will act as the staff lead who works with the selected eventcommittees to promote the various Great Events.

Update and implement changes to the Group Tour Planning Guide incooperation with partners from across the state.

Distribute to international and domestic tour operators through mailing, tradeshows, and follow-up.

1D. Develop a statewide one-click, one-call reservation system by 2005.

Work with visitor industry. Make it easy for visitors to purchase packages and make travel arrangements.


The Office will: Implement and enhance travelsd.com to provide an interactive Trip Planner,

which will enable visitors to create their own South Dakota vacation by dropping


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Recognize the effect of camping, hunting and fishing opportunities on our qualityof life.

Improve access, signage and mapping of the States trail ride opportunities andbiking and hiking trails.


Identify travel and outdoor writers and media outlet whose demographics matchour target audience.

Continue attending outdoor travel writer conferences (AGLOW, OWAA,Pheasant FEST, SHOT Show) to showcase South Dakota's outdoor

opportunities with national and regional members. Promote the new hunting and fishing resource websites SD Tourism has

developed. Consumers will be directed to specific domain names such asfishing.travelsd.com or hunting.travelsd.com for a one-stop knowledge aboutSDs sporting opportunities. Print ads promoting hunting vacation packages willbe placed in outdoor magazines and special hunting sections of target marketnewspapers.

Develop and issue a new motorcycle guide to target motorcycle enthusiasts and

give them valuable information as they cruise the highways of South Dakota.The publication will include a map of South Dakota highlighting scenic routes,national and state parks, recreation areas, information centers, and the locationsof partner factory-authorized motorcycle dealers.

Goal Two: Increase GSP (Gross State Product) by $10 billion by 2010

2A. Promote the creation and development of new businesses that will contribute $6billion to the GSP.

Launch South Dakota Entrepreneurship Program:o Re-establish Inventors Congress with local Chambers of Commerce.o Establish handholding infrastructure.

Connect entrepreneurs with handholders, grant-writers, mentors, angel investors. Coordinate with existing entities (e.g. SBIR, SBDC, Enterprise Institute, SCORE). Introduce finance program changes:

o Increase MicroLoan lending limit to $50,000 and incorporate into REDI

Fund with new legislation.o Loan $3 million from REDI fund to regional revolving loan funds.o Establish high opportunity fund with REDI board.

Develop new industry clusters and enhance those already existing (healthcare,biotech, financial, insurance, firearms).


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Identify CEO Centers to create local networks that will foster entrepreneurialdevelopment and assist in the development of specialized action plans for each.

Roll out CEO Centers and begin implementing action plans. Establish entrepreneur service provider tracking system for requests forassistance.

2B. Promote the growth/expansion of existing businesses that will contribute $4 billion toGSP.

Create Red Tape Task Force to review State statutes. Re-establish Manufacturing Extension Partnership (MEP). Re-establish Procurement Technical Assistance Center (PTAC). Assist with branding and marketing of products produced in South Dakota:

o Re-institute South Dakota Made program.o Help South Dakota companies develop Internet presence.

Make finance program changes:o Alter REDI rules to make money easier to obtain.o Raise bonding limit to $5 million.


Make annual selection and present awards for Giant Vision Competition. Promote and provide technical support to the Giant Visions Awards, Innovation

Expo and West River Inventor's Congress. Market new MicroLOAN program policies, which include maximum loan amount

increase from $20,000 to $50,000 and decreased interest rate from 5 percent to3 percent.

Develop and seek approval for administrative rules for the high opportunity andentrepreneur development funds. Market new high opportunity and entrepreneur programs. Start accepting applications for High Opportunity Fund and Entrepreneur Fund. Research industry development in South Dakota and incorporate into marketing

efforts. Continue to pursue opportunities to promote the State's recognized financial

service industry cluster. Develop a comprehensive marketing strategy, including a review of geographic

and sector targets; message, and message delivery methods. Provide an analysis of market opportunities for identified key sectors and

geographic regions. Develop specific goals and tactics to continue research and development of

prospect opportunities from identified targets. Assess GOED Finance and Incentive programs compared to Best Practices of


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o Ethanolo Biodiesel fuelo Wind energy


Develop a comprehensive strategy to create, implement and inform the public ofthe SOUTH DAKOTA CERTIFIED Beef Program.

Develop regulations, forms, and contracts for the processing and marketing ofSOUTH DAKOTA CERTIFIED Beef.

Work with SDBIC and AIB to develop a SOUTH DAKOTA CERTIFIED Beef

research and graduate assistantship program at SDSU Department of RangeManagement to improve beef processing and production practices.

2C. Promote agricultural and natural resource development in South Dakota.

Continue to fund feasibility study for value-added projects:o Dakota Prime, Dakota Turkey Growers, Storied Beef, etc.

Become a net energy exporter:

o Ethanolo Biodiesel fuelo Wind energy

Goal Three: Become a Recognized Leader in Research and TechnologyDevelopment by 2010

3A. Secure Homestake Mine for use as an underground science laboratory.

Establish Homestake Conversion Lab Project. Commit funding to ensure Federal approval.

The Science and Technology Authority works with the Board of Regents and theDepartment of Tourism and State Development to develop the NSF proposal including along-term state plan to maximize the research, education, and economic developmentimpact of the state of South Dakota.

These additional goals and strategies have been accomplished:

Introduced and passed legislation to establish and fund an undergroundresearch laboratory at the 4,850 foot level and initiate related research,education, and economic development activities.


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A peer review process was used to select the four 2010 Research Centers (2004), NSFEPSCoR research focus area (2005), and Research Seed Grants (2005) awarded to 19researchers at University of South Dakota (USD), South Dakota School of Mines andTechnology (SDSM&T), South Dakota State University (SDSU), and Black Hills StateUniversity (BHSU). The 2010 Research Centers established include:

Center for Infectious Disease Research and Vaccinology (SDSU Department ofVeterinary Science & USD School of Medicine)

Center for Accelerated Applications at the Nanoscale (SDSM&T Department ofMaterials and Metallurgical Engineering)

Center for the Research and Development of Light-Activated Materials (USD &

SDSU Chemistry Departments, USD School of Medicine & Avera ResearchFoundation)

South Dakota Signal Transduction Center (USD School of Medicine & SouthDakota Health Research Foundation)

South Dakota currently has 14 PhD programs with an average of 70 PhD graduates peryear. The Board of Regents (BOR) continues to work with the universities to establishadditional PhD programs with a goal to double the number of programs and graduates

by 2010. Specifically this will:

Enable the universities to transition from teaching institutions to researchuniversities and engines of economic development through researchcollaborations with industry and supporting the development of anentrepreneurial culture throughout South Dakota. The BOR is developing a planfor this that will be part of the 2008 budget request.

Continue the development of university research infrastructure by supporting thegrowth of graduate education programs and focused research infrastructure

investments that will support interdisciplinary research activities. Develop and maintain the broadband computing and communications network

needed by researchers and the private sector to achieve 2010 goals. Expand undergraduate research and internship experiences supporting research

and developing a pipeline of students for the expanding graduate programs andSouth Dakota industry while enhancing undergraduate education.

Actively engage communities, industry, and private sector in the development ofa research and entrepreneurial culture in South Dakota.

South Dakota plans to use a portion of two 2010 Research Center's funding as theremaining portion of the $1.5 million of the cost-share of the RII proposal. The 2006 NSFEPSCoR proposal research focus area involves the Light Activated Material andNanotechnology 2010 Research Centers focusing on Photo-Active Nanoscale Systems.This maximizes the effect of the State's 2010 Research Center investment.


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3C. Develop research and technology infrastructure at our universities and with theprivate sector (Emphasis on research that can be commercialized and will benefit SouthDakota).

Create a Research and Development and Tech Transfer Office:o Cooperative effort between State, Board of Regents, and private sector.o Hire specialized faculty for research.o Coordinate efforts to secure grants.o Change intellectual property procedures to increase the number of

patents issued and licensed in South Dakota. Encourage development of tech centers and incubators. Promote further cooperation with EROS. Further develop university research niches (e.g. BHSU with tourism and DSU

with technology security). Coordinate cooperative research efforts between private businesses (like

Hematech), universities, healthcare providers, and other public institutions.


Hire postdoctoral research associate at Nanotechnology Center. Hire Fabrication Technician at Nanotechnology Center. Hire the following positions for the Vaccinology Center of Excellence:

o Assistant/Associate/Full Professor of Preon. Biology, Assistant ResearchProfessor of Molecular Virology, Research Assistant Professor ofMolecular Biology, Research Associate Biochemistry, ResearchAssociate Imaging Technology, Postdoctoral Research Associate and aVeterinary Care Technician.

Hire two chemistry faculty researchers and a medical school researcher inophthalmology to support the Center.

Explore shared research faculty positions between universities and privatesector industry partners.

Support School of Mines goal to establish its South Dakota Tech DevelopmentLaboratory that will house several cutting-edge research activities and projects,all designed to expand knowledge of science and engineering, to solve theproblems of industry, the military and government; and to create economicdevelopment opportunities for South Dakota.

o SDSM&T has established the Friction Stir Welding center, NanoscaleSemiconductor Testing, and other research and development activities tofacilitate industry interaction and research collaborations.

Support the West River Foundation goal, in concert with the Rapid City AreaEconomic Development Partnership, in its goal of developing a regionalincubator/accelerator facility in Rapid City. The incubator will house new and

di b i i h i ifi h i l S ' l i l d


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Continuing goals include:

Tourism and State Development is working with the universities, tribal collegesand economic development organizations to support and coordinate technologybased economic development and entrepreneurial activities.

The South Dakota Space Grant Consortium (SDSGC), based at SDSM&T, willcontinue to enhance faculty development through summer faculty fellowships atthe EROS center.

The South Dakota Center for Biocomplexity Studies will continue to build upon

previous EPSCoR support for scientific clusters in Biological Response to Stressand Geophysical Processes of the Northern Plains. The center is a virtual centerutilizing the intellectual and physical resources at South Dakota State University,South Dakota School of Mines and Technology, the University of South Dakota,and EROS Data Center.

South Dakota State University has developed a Geographic InformationSciences Center of Excellence in collaboration with the EROS Data Center. Dr.Matt Hansen has been hired as the Co-Director of the Center. Dr. Tom Lovelandis the Co-Director from EROS. Additional researchers have been hired by bothpartners and a PhD in Geospatial Science and Engineering has been approvedat SDSU.

Dakota State University continues to move forward with grant applicationsrelative to it's biometric research project. To date, two grant applications havebeen funded: $125,000 from Great Plains Foundation and $250,000 federalearmark to advance the project, particularly for biometric research for banking

and finance.

At South Dakota State University, ongoing areas of research emphasis that arecontinually being developed include: Biocomplexity Studies, BiomassConversion, Infectious Disease, Alternative Energy, Sensing Devices, LightActivated Material, Human Nutrition/Bone Density, Cellular and MolecularBiology, and Environmental Science including chemical engineering. Developingareas of emphasis are Geospatial Science and Engineering (with EROS) andHealth Care Management (with Avera Research)

The SBIR program, N2TEC Summer Institute and other activities wereimplemented to meet the needs of technology entrepreneurs both technicallyand in business. The program involves public private sector collaborative efforts.

Goal Four: Brand and Develop South Dakotas Quality of Life as the Best in


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Work with South Dakota businesses and post-secondary education to identifyneeds and broaden internship opportunities.

Promote South Dakota in terms of culture, employment and quality of life toyoung adults.

4B. Enhance History and Arts as a tool for economic development and cultural tourism.

Quantify the economic impact of arts and history in South Dakota. Advance history and arts as essential to lifelong learning:

o Promote State Historical Societys traveling museum exhibits andeducational kits programs.

o Expand the Arts in School Program and Arts in Community Programs.o Discover opportunities for expanding other history and arts programs.

4C. Stabilize rural populations through community development.

Build up infrastructure:o Railroad (e.g. DME expansion)o Water projects (e.g. Lewis and Clark)o Communication (e.g. wireless service in every community)

Facilitate cooperation between cities and the towns near them. Facilitate the development of community plans. Continue statewide beautification program. Cooperate with statewide and community groups on leadership programs. Develop government resource directory.

4D. Stimulate affordable homeownership, rental housing and day care facilities in South

Dakota communities which evidence a need.

Collaborate with our partners to secure and invest $2 billion in private and publiccapital to provide for affordable owner occupied housing, rental housing anddaycare facilities.

Expand existing partnerships, programs and services to provide homeownershipand rental development opportunities and Federal subsidies to the State's low-income working residents, the elderly and persons with disabilities.

Create service-enriched, permanent housing opportunities for the homelesspopulation to end chronic homelessness in ten years.

Support investment of private capital to provide leverage for tribal initiativeswhich increase homeownership on the reservations.

Improve upon the coordination, promotion and marketing of SDHDA programsand capabilities to better serve our partners, individuals and families in SouthD k


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Engage in a summit process with tribes, as invited. Increase staffing of the Office of Tribal Relations.

Promote the establishment of cultural, non-competitive exchanges betweenreservation and non-reservation schools, if invited.

These additional goals and strategies have been established to connect with students:

Conduct a breakout session at the 2007 Governor's Economic DevelopmentConference that focuses on retaining and importing young adults.

Attend Boys State to gather input from students on how to enhance SouthDakota's image to young people.

Attend Girls State to gather input from students on how to enhance SouthDakota's image to young people.

Attend YBA to gather input from students on how to enhance South Dakota'simage to young people.

Research statewide youth organizations and their annual conferences to set upnew forums to gather input from students on how to enhance South Dakota'simage to young people.

Conduct youth summit with leadership from high school organizations and

gather input on how to enhance South Dakota's image to young people. Coordinate with higher education and technical institutes to gather input from

students on how to enhance South Dakota's image to young people and topresent entrepreneurship information and the data on the advantages of livingand working in South Dakota.

These additional goals and strategies have been established to connect withemployment agencies:

Meet with President of South Dakota Career Planning & Placement Associationto discuss partnership opportunities in promoting internships and graduates fromSouth Dakota's universities.

Meet with South Dakota Bureau of Personnel to discuss partnershipopportunities in promoting internships and graduates from South Dakota'suniversities.

Meet with Career Center manager to discuss partnership opportunities inpromoting internships and graduates from South Dakota's universities.

These additional goals and strategies have been established to connect with economicdevelopment partners:

Meet with Director of Workforce Development, Interns in Industry program withthe Sioux Falls Development Foundation to discuss partnership opportunities inpromoting internships and graduates from South Dakota's universities


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Industry: Bio-Tech Industry: Renewable Energy Industry: U.S. Firearms Industry: Computer Software Industry: U.S. Medical

B. Governors vision for maximizing and leveraging the broad array of Federaland State Resources available for workforce investment flowing through theStates cabinet agencies and/or education in order to ensure a skilled workforcefor the States business and industry.

When it comes to training, South Dakota is devoted to helping communities. Through theWorkforce Development Program, companies have access to dollars to help train newand existing employees.

The GOED will provide technical assistance to help develop the Workforce DevelopmentProgram application. Technical assistance is provided to help identify approaches andideas necessary to develop a successful project.

Collaboration and leveraging of resources is exactly how business is done in SouthDakota. The Governor clearly expects and encourages all cabinet agencies to worktogether to achieve common goals. As evidenced in the 2010 Initiative, Tourism andState Development, Department of Labor, Department of Education, and the Board ofRegents all partner closely on efforts to prepare a quality workforce.

Examples of the partnership include recent collaborative and joint efforts among multiple

state agencies seeking federal, state, private, and philanthropic investment for significantprojects in the state. Such partnerships are directed at development of the healthcareworkforce, talent development under the WIRED philosophy. Agencies working closelytogether and committing time, talent and resources are SDDOL, Department ofEducation, Governors Office of Economic Development, Department of Health, and theBoard of Regents. Private sector business leaders are eager to join with this dedicatedpartnership.

C. Governors vision for ensuring a continuum of education and trainingopportunities that support a skilled workforce.

A skilled labor force waiting to happen. That's how the State describes the more than35,000 students enrolled in higher education in South Dakota. These students are bright,energetic and ready to go to work for employers.


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Determination of workforce needs has traditionally been done through evaluation ofLabor Market Information historic data. While this method is still a valuable tool indetermining future areas of potential job growth, the SDDOL is also looking to ourpartners to help determine areas of workforce need based on industry and resourcegrowth possibilities. The Governors Office of Economic Development is an invaluableresource for this type of information as they work daily on the feasibility of businessgrowth within our state. As future needs are established, universities, private colleges,technical schools, and secondary schools will all be part of the workforce talentdevelopment planning strategy.

South Dakota recognizes the importance of partnering education and business. The end

result is a better workforce for all businesses.

Transitioning students in the Alternative Schools and Adult Education and Literacyprogram to post secondary and skill training emerged as a more prominent focus duringthe past few years. Career pathway development for these students helps to developtheir talents and skills supports and contributes to meeting the economic developmentneeds in each community.

There are many Alternative High Schools in South Dakota. The SDDOL has partneredwith 17 schools to provide approximately 1,000 students an opportunity to participant ina joint employment and education program. Such activity in addition to earning creditstoward graduation includes in-depth research and planning for transition to post-secondary education.

The out-of-school youth attending the Adult Education and Literacy program in PY05-06breakdown shows 635 students in the 16-18 age category and 1,136 in the 19-24 age.Of GED completers, 252 were 16 and 17-years-old which is 20 percent of the total

candidates passing the GED. These students are looking for workforce skills and talentdevelopment which has an impact on the economic growth of each region.

D. Governors vision for bringing together the key players in workforcedevelopment including business and industry, economic development, education,and the public workforce system to continuously identify the workforcechallenges facing the State and to develop innovative strategies and solutionsthat effectively leverage resources to address those challenges.

The SDDOL WIA youth program specialist began encouraging awareness andexploration of the healthcare industry approximately five years ago. Summer academieswere held on college campuses for WIA eligible youth. A website was developed andcurrently is hosted by SDDOL. There is information for students and lesson plans forteachers and industry representatives to use in classrooms All the lesson plans are


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Education and Board of Regents all submitted mailing lists for inviting a wide crosssection of individuals throughout South Dakota to the Summit. Over 250 individualsattended representing the various healthcare professions, providers (long term care,hospitals, critical care centers, clinics, county health, etc.), training providers andteaching staff from all levels (secondary, short term training providers, community /technical colleges, and universities), economic development, etc. attended. Breakinginto six focus groups, the individuals reviewed current and projected healthcareworkforce needs, educational and training needs, perceptions and awareness needs,and recruitment and retention needs. Those attending were asked for commitment andassigned to meet again to create a plan of action for solutions to addressing the needs.Task groups were formed to work on specific issues with a culminating activity the

scheduling of the 2nd

Annual Healthcare Workforce Summit.

One consistent message brought out at each meeting was the success of partnershipswith SDDOL. The endorsement of SDDOLs successful involvement for supportingeducation/training opportunities and staffing at facilities caught the interest of othertraining providers and healthcare industry.

For the next two years, the healthcare workforce plan of action will become criteria for allnew SDDOL talent development. One such action/solution will be for better recruitment

of individuals who left our state for healthcare positions to return to practice in SouthDakota. Another priority solution of the Summit workgroups that SDDOL will play amajor role in will be the recruitment of youth to the healthcare field, promotingunderemployed to access training in healthcare, assisting current healthcare workers inneed of more training, or refocusing healthcare skills (due to age or health) to other waysto use their skills, etc.

From the meetings, SDDOL and DOH are truly developing a unified message of how the

healthcare workforce can be developed in South Dakota. Both departments understandthe need to provide education and career progression opportunities. New educationmodels of delivery (simulators, distance learning through web and video, traveling subsworkers and teachers, etc.) are being researched. With this training for workforcemembers, SDDOL sees a need for developing leadership training for employers aroundalternative scheduling, job sharing, benefits, options for leave for training, etc.

This Healthcare Workforce Development Initiative will continue to promote:

Raising awareness of opportunities in healthcare;

Developing a pipeline of training opportunities;

Increasing training and internship opportunities at all levels of education; and


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foster care, youth aging out of foster care, youth offenders, children ofincarcerated parents, migrant and seasonal farm worker youth, and other youth

at risk.

The Governor, with the Department of Education, announced the 2010 EducationInitiativeensuring a roadmap to guide public education. 2010E establishes specificgoals, objectives, and action steps with a time frame and the individuals responsible forexecution.

The Governors 2010E plan has three major initiatives: Starting Strong targets youth from age 3 to grade 3 Finishing Strong focuses on high school and postsecondary Staying Strong target teachers, Native American issues and financial resources

The SDDOL plan will highlight a few of the 2010E goals directly relating not only to theWIA age group for youth, but understanding that third initiative has impact on adultlearners as well.

Starting Strong

Goal 1: By 2010, all third grade students will be proficient - or on a learning plan tobecome proficient - in reading and math.

Finishing StrongGoal 2: By 2010, South Dakota will be first in the nation for the percentage ofstudents going on to college, technical school or advanced training.

Objective 2A: Graduate 95 percent of high school students.

Initiatives:

a. Require compulsory attendance to age 18b. Implement personal learning plans for studentsc. Create senior project modelsd. Implement internship programse. Increase use of advanced placement/dual credit coursesf. Create a state scholars program that connects schools to businesses

Objective 2B: Enroll 75 percent of high school students in the "advanced" or"distinguished" graduation path.

Initiatives:


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Initiatives:

a. Create a statewide virtual high school programb. Implement a one-to-one laptop initiative for high school studentsc. Implement an e-mentoring program

Goal 3: By 2010, the postsecondary education system will fully meet the needs ofthe state's changing economy and its citizens.

Objective 3A: Offer transferable general education courses from Board of Regents'institutions at all technical institute sites, and establish up to 250 program-specific

transfers for technical institute graduates at regents' institutions.

Initiatives:

a. Approve institutional agreements with the technical institutesb. Increase the number of program-to-program articulation agreements from four to

250c. Prepare marketing plan to promote program

Objective 3B: Expand the number of citizens with postsecondary education and trainingby 20 percent.

Initiatives:

a. Increase the number of graduates from Board of Regents' associate degreeprograms by 10 percent

b. Increase the number of graduates from bachelor degree programs by 20 percentc. Double the number of persons ages 25 and older engaged in postsecondaryeducation

d. Increase retention of students in public higher education by 8 percent

Objective 3C: Support postsecondary education programs designed to enhance thestate's long-term economy.

Initiatives:

a. Double the number of Ph.D. programsb. Double the number of Ph.D. graduatesc. Enhance Ph.D. program support infrastructured. Achieve the national average of people with graduate degrees, moving from 6.5

to 9.4 percent


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Goal 5: By 2010, South Dakota will increase educational outcomes for NativeAmerican students.

Objective 5A: Implement a Native American Education Act to address critical educationissues related to South Dakota students, staff and schools.

Initiatives:

a. Establish the Native American Education Actb. Produce an information packet for South Dakota schools to use as teacher

training materials

Objective 5B: Improve graduation rates of Native American students.

Initiatives:

a. Provide summer school academies for Native American high school studentsb. Provide access to Native American language and culture through distance

learning and other delivery methods

Goal 6: By 2010, South Dakota will target financial resources to improveclassroom instruction and educational opportunities.

Objective 6A: Conduct a review and implement any necessary changes to the fundingformula for K-12 education.

Initiatives:

a. Establish a taskforce of school officials, legislators and business leaders toadvise the Department of Education as it reviews current funding formula

b. Study all aspects of current formula including sparsity, small school factor, fundbalance and other revenue

c. Make final recommendations to the Governor by November 15, 2006

The SDDOL has focused their employment and training programs on the out-of-school,

or at risk of dropping out of school, for many years by contracting WIA funds toAlternative High Schools focusing on preparing youth for the transition not only toadulthood but into the workforce. This collaboration with Department of Education andlocal school districts has ensured on an average an additional 450 youth annuallycompleted their high school education and obtained a diploma. Ten of the alternativeschools are operated by community or faith-based organizations.


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One indicator of the dedication to ensuring the neediest youth receive the best educationpossible is through assisting the Alternative High School teachers to obtain their NationalCertification. The National Board Certification offered by NBPTS is geared to teachers

who seek higher levels of professional growth and a process to critically examine theirteaching practice against high, rigorous standards. The standards measure whataccomplished teachers should know and be able to do. Obtaining National BoardCertification is a rigorous process including a two-part assessment based on standardsand reflecting varied aspects of teaching. For South Dakota, one of the leading mentorsin this process is a teacher at a SDDOL affiliate alternative high school.

Due to the mix of funding sources, the SDDOL affiliate Alternative High Schools serve

not only WIA students, but dropouts whose individual or family income is above the WIAguidelines. The second part of WIA eligibility, the barriers, provides the criteria for thoseabove the economic guidelines to enter the alternative schools. Just a few of therecognized barriers the 911 students for the first half of the 2006 program year include:

702 had dropped out of the traditional school 489 were below the 9th grade reading comprehension and/or math computation

according to the Test of Adult Basic Education 158 had a recognizable disability they were willing to admit to (many dropouts do

not want to admit to being in need of special education plans) 159 were with youth in state recognized foster care programs 283 were offenders

Starting in 2009, youth 18 and under without a high school diploma, will have requiredattendance at an educational setting. The Departments of Education and Labor will befurther developing their linkages and educational opportunities to ensure youth havehigh quality secondary and postsecondary linkages.

The Alternative High Schools affiliated with the SDDOL are very familiar with the needfor performance accountability such as entering advanced training and earningcertificates of national distinction.

Another unique situation for a third of SDDOLs affiliate Alternative High Schools is theco-location with SDCCs, social service programs, vocational rehabilitation programs, etc.The changing WIA funding levels have probably put an end to bringing other alternative

schools under the same roof of one-stops, but SDDOL is implementing a newrequirement for the SDCCs to demonstrate integration of services.

Each SDCC will be required to submit a calendar of events at their regional affiliateAlternative High School. The employment representatives will play an integral role inutilizing the workforce information to ensure youth know what talents are important in


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The Adult Education and Literacy state program specialist just completed a statewideregionalized training with the WIA staff. The state program specialists were reviewingthe similarities of data collection and reporting. Attendees included field staff from

Vocational Rehabilitation, TANF, WIA, alternative schools, Job Corps, and AEL. Theattendees broke into community teams to develop local connections and processes forreferrals, program support, client supports, and information sharing. The response tothe involvement of such a wide range of partners in planning was such a success; it willcontinue to be a model for continuous state-led strategic planning at the local level.

For 2005, 975 youth between the ages of 16 and 24 obtained a GED diploma in SouthDakota.

The federal funding levels for SDDOL programs are impacting the way services aredelivered. By bringing all adult WIA funding back into the Career Centers starting July2007, the impacts on WIA youth and Adult Education and Literacy creates a need to shiftand reengage the partners. This does impact the ability of various faith and communitybased partners delivery of services. In hopes of maintaining talent development forregional economic development, key players for each delivery area will need to bereorganized to devise new strategies for talent development in the next two years.

Over the last two years, SDDOL has consistently reached out to state levelrepresentatives of the federal partners recognized in the shared vision for youthcollaboration. At the 2004 regional meeting in Arizona, youth programs associated withyouth in and exiting foster care, existing youth correctional sites, Job Corps, AdultEducation, and, of course, WIA youth programs. Over the last couple of years, SDDOLhas often, and will continue to be, the first introduction to the vision that other stateagencies have among the federal agencies listed as partners.

Attending and presenting at statewide trainings and regional trainings is one of the bestways to reach out to field staff of the various partners. Providing communitydevelopment time with targeted delivery of service projects has proven to be an effectivecommunications and program development process. The SDDOL will continue to offerpresentations and strategic development planning sessions at all opportunities. Theopportunities for developing a standardized policy with regional direction are vital duringthis time of shifting economies.


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II. State Workforce Investment Priorities

The SDDOL and GOED made revisions in the Workforce Development

Training Program. Under this partnership, they now will fund two types oftraining: new and current employee. New employee training continues to beonly for jobs that are newly created. Current employee training is for the out-of-the-ordinary training such as new equipment or certifications and mustprovide the trainee with an increase in the wages.

The wage requirement has been increased. Companies must pay the higherof $10.00 per hour or the 10th percentile of that job classification asdetermined by LMIC.

Companies must provide their employees with a benefit package whichincludes health insurance. The company must contribute a portion of thepremium for the health insurance.

The application was updated to include a list of possible benefits. Applicantswill need to check off the benefits they provide. This has always beenrequired in the application but the list was not provided in the past.

2007 legislation was passed to update and modernize the REDI (Revolving

Economic Development & Initiative) Fund. By incorporating the intent of thevarious sub funds back into REDI, the Governors Office of EconomicDevelopment intends to refresh the 20-year-old intent of REDI and betterserve the needs of modern business. The new legislation incorporates theentrepreneur support program, value-added tourism sub fund, and the capitalinvestment program into the REDI Funds primary mission.

In 2006, the APEX loan programs lending limit was raised from $150,000 to$237,500. The program was also extended to manufacturers and exportersof non-agricultural products that export 75 percent or more of their productoutside South Dakota.

The skills of a company's workforce are critical to a company's overallsuccess. The Workforce Development Program provides grants to assistcompanies with up to one-half of their eligible training expenses to ensuretheir new and current employees have the skills they need.

In 2006, the program:

Awarded 59 grants totaling $2.7 million.

Trained 4,054 employees

Provided assistance to seven companies who were new to SouthDakota.

Helped, both directly and indirectly, more than 60 companies in 17


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director of the GOED. Each business representative will work with GOEDsmarketing, research and finance professionals to develop a sales strategyspecific to his industry.

Industry: Bio-Tech Industry: Renewable Energy Industry: U.S. Firearms Industry: Computer Software Industry: U.S. Medical

The industries were chosen by the GOED after researching South Dakotas

strengths and weaknesses. This approach makes luring business a state-wide effort, and will allow teams

to really dig in to a specific industry learning the industry challenges, whatSouth Dakota can offer it, networking with people throughout the field, andobtaining technical knowledge that will make a difference when recruitingthese companies to our state.

Targeted Industry Research

Industry definition by NAICS Codes Growth of industry national outlook Industry concentration by state for employment and # of establishments Current issues facing industry Largest companies in target states All South Dakota companies in the industry South Dakota advantages for industry Post-secondary degrees/majors supporting the industry in South Dakota


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III. State Governance Structure

A. Organization of State agencies involved in the public workforce investmentsystem in relation to the Governor

1. Organizational Chart


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SD Worforce Development Council

Dept. of Education (DOE)

Dept. Tourism & State Development (TSD/GOED)

Board of Regents (BOR)

Services to the Visually Impaired Services to the Deaf Vocational Rehabilitation

Dept. of Health and Human Services (HHS)

Workforce Investment Act

Career Learning Centers

Alternative High Schools

Job Corps

ABE/GED

Workforce T raining

Labor Market Information Center

Food Stamp Employment & Training

Work Opportunity Tax Credit

Experience Works

Veteran Training Programs

Technical Services

Workforce Services

South Dakota Career Centers

Field Operations Unemployment Insurance

Dept. of Labor (DOL)

Office of the Governor


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2. The agencies involved in the public workforce investment system interrelateon workforce and economic development issues and the respective lines ofauthority.

The Governors 2010 Initiative Economic Plan strongly ties economic development withthe need to increase training for the workforce in targeted industries. The SDWDCestablished by Executive Order 95-14 requires State Agency membership on thiscouncil. Those agencies as required members are:

Secretary of Labor Secretary of Education Secretary of Human Services Executive Director of the Board of Regents Commissioner of the GOED

These agencies in conjunction with the SDWDC work collectively to improve theeconomic stability of the State. During quarterly SDWDC meetings, the members havethe opportunity to discuss economic issues particular to their local areas with themembers of the Governors Cabinet.

B. State Workforce Investment Board

1. Organization and structure of South Dakota Workforce Development Council.

As a single statewide service delivery area under WIA, the leadership and vision for thesystem has come from the Governor and his appointed SDWDC. For purposes of Title Iof the WIA, the State will continue to be treated as a statewide local service area. The

SDWDC has been the driving force behind workforce development since it was firstformed under the Governors Executive order 95-14 on June 19, 1995. Thisdistinguished group of key State agency heads, employers, and other interested partieshas guided the development of today's One-Stop delivery system in our State. Themajority of employment and training programs are provided under the umbrella of theSDDOL, which also provides administrative support for the SDWDC. Under thisstructure, key employment and training programs WIA, Wagner-Peyser, Job Corps,Adult Education and Family Literacy, UI, Veterans' employment, training programs, andLabor Market Information Center (LMIC) are brought together with the interests of

economic development, vocational technical education, basic education, and vocationalrehabilitation.

The SDWDC was formed to maintain the momentum for economic development andvitality by better connecting workforce strategies to economic needs. The SDWDCmembers share a common purpose: to improve the services to employers and their


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2. Organizations and entities represented by SDWDC

SDWDC is a 17 member council comprised of a private sector majority that reflects the

composition of the pool of local employers; which are large employers and employers ingrowth industries. According to Executive order 95-14 other members must representlocal labor organizations, community-based organizations, the Secretary of theDepartment of Labor, the Secretary of the Department of Education (DOE), theSecretary of the GOED, the Secretary of Human Services, and the Executive Director ofthe Board of Regents are also members of the board. One of our private sectormembers is also a member of the South Dakota Rehabilitation Board.

The board consists of Five representatives of small (fewer than 100 employees) employers. Four representatives of large (100 and more employees) employer. One representative of employers organizations/labor Secretary of Labor Secretary of Education Secretary of Human Services Secretary of Governors Office of Economic Development

Executive Director of the Board of Regents Two community-based organizations

SDWDC also serve as Youth Councils under WIA.

In Section 111 there is no requirement for a state with a grandfathered council to involveall other nonmembers from Section 111 in the planning and implementing of the Statesworkforce investment system. However, the planning and implementing of the StatesUnified Plan is made available for public comments though SDDOL website, which

provides those interested with information prior to enactment of the plan, July 1, 2007.On request the public can receive minutes of the formal meetings of the SDWDC whichare also posted on the SDDOL website.

3. South Dakotas process to identify Board members.

South Dakota is a single state workforce investment area with a grandfathered StateWDC on Workforce Services that is responsible for planning and oversight. The

SDWDC was created by the Governors executive order 95-14 on June 19, 1995. Themembers are appointed by the Governor. They are composed of a private sectormajority that reflects the composition of the pool of local employers; included are anareas largest employers and employers in growth industries. Administrative authority isuniform statewide, with resource allocations determined at the state level.


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C. Structure/Process for State agencies and State board to collaborate andcommunicate with each other and with the local workforce investment system.

1. Description of the steps South Dakota will take to improve operationalcollaboration of the workforce investment activities and other relate activities andprograms outlined in section 112 (b)(8)(A), at both the State and local level (e.g.,

joint activities, memoranda of understanding, planned mergers, coordinatedpolicies, etc.). The State board and agencies eliminate any existing State-levelbarriers to coordination.

The South Dakota statewide planning document articulates a systematic and sustainableplan for workforce and economic development based on customer needs, labor marketbased allocation of resources to continue economic expansion for South Dakota. TheState leaders expect that all customers, both job seekers and employers, will be servedthrough the South Dakota One-Stop delivery system that capitalizes on the use of thelatest technology and effective customer service providers.

The majority of employment and training programs are provided under the umbrella of

the SDDOL, which also provides administrative support for the SDWDC. Under thisstructure, key employment and training programs like WIA Title 1 WorkforceInvestment System including adult and youth, Job Corps, UI, Veterans employment andtraining programs, LMIC, WIA Title II Adult Education and Literacy (AEL), and Title IIIWagner Peyser are brought together.

Adult Education and Literacy is developing a transition to college and post secondarytraining programs to act as a catalyst in reshaping talent development strategies for

greater success.

The SDWDC was formed to maintain the momentum for economic development andvitality by better connecting workforce strategies to economic needs. The 17 memberSDWDC is comprised of a majority of private sector members who represent the Statesemployers, labor unions, community leaders and representatives of five State agenciesincluding the Secretary of Labor, Secretary of Education, Secretary of Human Services,commissioner of the GOED, and the Executive Director of the Board of Regents. TheSDWDC members share a common purpose: to improve the services to employers and

their current and future employees by streamlining the delivery of workforce and trainingservices

2. Description of the lines of communication established by the Governor toensure open and effective sharing of information among the State agenciesresponsible for implementing the vision for the public workforce system and


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Since South Dakota is a statewide local service area, the coordination of integrated

services is greatly simplified. The SDDOL will act as administrator under the

guidance of the SDWDC for WIA implementation. Under a Memorandum of Understanding (MOU) process in which mandatory

partners are identified, the services, processes, and referral methodology is outlined.In the MOUs, one of the main objectives is that each One-Stop Partner be aware ofwhat every other Partner has to offer in the way of services to the customer. Oncethis is accomplished, duplicative steps and/or unnecessary administrative steps willbe eliminated.

SDCCs will serve as the hubs for workforce participants. Once a plan is developed

for a customer, the appropriate referral(s) to a Partner(s) will take place. The overallobjective is to allow the customer to receive the services they need in a timelymanner without having to go through a series of unnecessary steps.

Furthermore, technological advances will be made available to allow manycustomers to be self-served. The customer, however, will always be made awarethat they may have access to a SDCC representative whenever they may need one.

3. Description of the lines of communication and mechanisms established by theGovernor to ensure timely and effective sharing of information between the Stateagencies/State Board and local workforce investment areas and local Boards.Including types of regularly issued guidance and how Federal guidance isdisseminated to local Boards and SDCCs.

The lines of communications for the Governor begin at the cabinet level Secretaries, andcontinue to the State and local staff. The Governors cabinet typically served as a forumfor partners to meet regularly and discuss how to work better together at SDCCs and todiscuss specific issues regarding management of centers.

The collaboration continues with the SDWDC. Membership on the board is directedthrough the Governors Executive Order 95-14. In addition to industry representatives,State agency representation for workforce investment and human resource investment iswell embodied in the make up of the SDWDC for our State. State agency representationincludes the Department of Vocational Rehabilitation (VR), DOE, DSS, and the GOED inaddition to the SDDOL. The Council is kept well aware of the evolving USDOL vision forcollaborative youth programming.

The Council is responsible for authorizing the annual Request for SubcontractorProposals for services. The need for collaborative programming in a community orregion is strongly identified in the overview of required programming. Locals writtenapplication must demonstrate a strong community/region partnership base. The highlyintegrated programming in each community helps restrict siloed programs and aligns


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IV. Economic and Labor Market Analysis

A. South Dakota Gross Domestic Product by Industry

Gross domestic product (GDP) is the measurement of the output of goods and servicesproduced by labor and propertylocated in an area. Total GDP for South Dakota hasincreased almost eight billion dollars since 2000, an increase of 40 percent. This issignificant growth compared to the national rate of 27 percent for the same time period.

Current data for the year 2005 show South Dakotas output is led by the finance andinsurance industry, followed by manufacturing and the real estate, rental and leasing

industry. The other top industries include heath care and social assistance, retail tradeand agriculture.

South Dakota Gross Domestic Product

(millions of current dollars)

Industry ValuePercent of

Total

All Industries $30,919 100.0%

Private industries 26,912 87.0%

Finance and insurance 5,366 17.4%Manufacturing 3,068 9.9%

Real estate, rental, and leasing 2,813 9.1%

Health care and social assistance 2,699 8.7%

Retail trade 2,206 7.1%

Agriculture, forestry, fishing, and hunting 1,808 5.8%

Wholesale trade 1,713 5.5%

Construction 1,267 4.1%

Information 886 2.9%Accommodation and food services 820 2.7%

Transportation and warehousing, excluding Postal Service 819 2.6%

Professional and technical services 785 2.5%

Other services, except government 752 2.4%

Utilities 564 1.8%

Administrative and waste services 465 1.5%

Arts, entertainment, and recreation 298 1.0%

Management of companies and enterprises 222 0.7%

Educational services 222 0.7%Mining 138 0.4%

Government 4,007 13.0%

Source: Bureau of Economic Analysis, US Department of Commerce


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South Dakota has a significant number of self-employed and unpaid family workersbecause of the large number of farmers and ranchers and small nonfarm businesses inthe State. The following table shows South Dakota employed persons by class of

worker. The class of worker data is from the Current Population Survey, which measuresthe employment status of each resident. The agricultural workers category includes bothself-employed and unpaid family workers and wage and salary workers.

2006 South Dakota Employed Persons by Class of Worker

Class of Worker

Number ofWorkers

Agricultural Workers 37,000

Nonagricultural Wage & Salary Workers 351,000

Nonagricultural Self-employed & Unpaid Family Workers 29,000

Total Employed 417,000

Source: 2006 Current Population Survey; US Bureau of Labor Statistics

The nonfarm sector is also a significant part of the South Dakota economy, especiallywith respect to the creation of wage and salaried jobs. As exhibited in the class of workertable, the number of nonagricultural wage and salaried workers is significantly largerthan the number of workers in the other classes. Nonfarm wage and salaried workers isa measure of workers at jobs by place of work, regardless of place of residence. The2006 annual average nonfarm wage and salaried workers was 398,800, which was 2.3percent higher than the previous year. The 2006 percentage growth was quite a bithigher than the historical annual average growth rate of 0.7 percent from 2000 to 2006.Historical nonfarm wage and salaried worker levels and growth were impacted by layoffsthat started in the second quarter of 2004.

The private nonfarm industries in South Dakota that employ the most workers includeeducation and health services, retail trade, leisure and hospitality, and manufacturing.The importance of health services is a result of regional medical centers that serve out-of-state residents. Education is impacted by the large number of rural school districtsand small class sizes. The leisure and hospitality industry is tourism related, and SouthDakota has many tourist attractions hiring workers throughout the State.

2006 South Dakota Nonfarm Wage & Salaried Workers

Industry Number ofWorkers

PercentDistribution

Statewide 398,800 100.0%

Government 75,100 18.8%

Education & Health Services 58,600 14.7%


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Other Services 15,600 3.9%

Transportation & Warehousing & Utilities 12,700 3.2%

Information 7,000 1.8%

Natural Resources & Mining 900 0.2%

Source: South Dakota Department of Labor, Labor Market Information Center

As mentioned previously, nonfarm wage and salaried workers are counted by their placeof work. So, workers employed at multiple establishments of work are counted morethan once. Many workers in this State have multiple jobs. In fact, South Dakota has one

of the highest rates of dual job-holding in the nation. Wage records research shows adecline in multiple job-holding as the economy slowed. In 2000, the ratio of jobs toworkers peaked at 1.182. By 2003, the ratio had dropped to 1.156. It is apparent fromthe declining rate that fewer jobs were available, especially for workers looking for asecond (or third) job. Current data indicate the level of multiple job holding has slightlydecreased, with a ratio of 1.116 in 2005.

B. Projected growth and decline of South Dakota industries and occupations.

Among the fastest growing industries, health care and social assistance,accommodation and food services, construction, and finance and insurance areprojected to require the largest number of workers from 2004 through 2014. Thehealthcare and social assistance industry alone will need an additional 15,410 workersduring the projections time period.

South Dakota Projected Fastest Growing Industries

2004 2014 Worker PercentIndustry Title Workers Workers Growth Growth

Healthcare and Social Assistance 50,900 66,310 15,410 30.3%

Arts, Entertainment, and Recreation 6,120 7,710 1,590 26.0%

Professional, Scientific & Technical Services 8,650 10,890 2,240 25.9%

Administrative & Support & Waste Management Services 12,460 15,330 2,870 23.0%

Construction 19,950 24,360 4,410 22.1%

Accommodation & Food Services 34,570 40,350 5,780 16.7%

Educational Services 6,130 7,090 960 15.7%Transportation & Warehousing 9,460 10,800 1,340 14.2%

Real Estate & Rental & Leasing 3,630 4,140 510 14.0%

Finance and Insurance 24,210 27,290 3,080 12.7%



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C. Industries and occupations in demand for skilled workers and available jobsprojected over the next decade.

Industry trends have a large impact on the future demand for workers in both theagricultural and nonagricultural industries. The short-term prospects for workers arecurrently mixed. While some businesses continue to experience lay-offs, others arestarting to add staff. Since short-term occupational projectionsfor 2006-2008 are not yetavailable, job openings canbe used to provide a picture of short-term demand forworkers. The following table shows the occupations with more than 1,000 openingsregistered with SDCCs in 2006.

2006 South Dakota Jobs with the Most Openings

Occupational TitleNumber ofOpenings

Laborers and Freight, Stock and Material Movers, Hand 5,077

Freight, Stock and Material Movers, Hand 3,719

Customer Service Representatives 2,915

Retail Salespersons 2,497

Maids and Housekeeping Cleaners 2,467

Slaughterers and Meat Packers 2,384

Cashiers 2,026

Landscaping and Groundskeeping Workers 1,962

Construction Laborers 1,724

Production Laborers 1,670

Waiters and Waitresses 1,598

Nursing Aides, Orderlies and Attendants 1,582

Janitors and Cleaners, except Maids and Housekeeping Cleaners 1,526

Bill and Account Collectors 1,448Office Clerks, General 1,416

Combined Food Preparation and Serving Workers, including Fast Food 1,087

Cooks, Restaurant 1,053

Registered Nurses 1,045Source: South Dakota Department of Labor, Labor Market Information Center

Other than the registered nurses, none of the jobs in the SDCC list of most job openingsrequire postsecondary education. These types of jobs have higher turnover and requirea large number of workers to keep them staffed. The long-term demand for workers iscaptured through occupational projections, which provide information about the futureneed for workers by occupation. Projections estimate the demand for new workersneeded to fill jobs because of growth or replacement of working leaving the work force.The South Dakota 2004-2014occupational projections indicate that the fastest growing

ti ill i t d d ti


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South Dakota Projected Fastest Growing Occupations

2004 2014 Percent

Occupational Title Workers Workers ChangeNetwork Systems and Data Communications Analysts 470 743 58.1%

Personal and Home Care Aides 989 1,486 50.3%

Computer Software Engineers, Applications 278 411 47.8%

Computer Software Engineers, Systems Software 232 341 47.0%

Diagnostic Medical Sonographers 190 276 45.3%

Physician Assistants 324 466 43.8%

Medical Assistants 961 1,383 43.9%

Dental Hygienists 423 597 41.1%

Social and Human Service Assistants 607 848 39.7%

Physical Therapist Assistants 257 360 40.1%

Dental Assistants 652 906 39.0%

Fitness Trainers and Aerobics Instructors 633 873 37.9%

Registered Nurses 8,885 12,005 35.1%

Network and Computer Systems Administrators 990 1,324 33.7%

Substance Abuse and Behavioral Disorder Counselors 433 581 34.2%


With respect to the occupations needing the most workers yearly, there are 38occupations that will require more than 100 workers per year through the year 2014.These occupations lead the list of occupations needing the most workers yearly thatrequiresome postsecondary education:

Registered Nurses Teacher Assistants Carpenters General and Operations Managers Elementary School Teachers, Except Special Education Secondary School Teachers, Except Special and Vocational Education First-Line Supervisors/Managers of Retail Sales Workers First-Line Supervisors/Managers of Office and Administrative Support

Workers

Accountants and Auditors Farmers and Ranchers Executive Secretaries and Administrative Assistants Automotive Service Technicians and Mechanics


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outlook rating does not directly measure shortages, it shows the occupations that willpresent the best job opportunities for workers. Within the list of occupations with afavorable or very favorable job outlook, almost all require some type of postsecondary

talent development.

D. Potential growth industries and occupations

Economic development in South Dakota is focusing on industries compatible with theSouth Dakota economy and likely to expand in the future. Some of these industryclusters include Bio-Tech, Renewable Energy, Firearms, Computer Software andMedical. All of these industry clusters have staffing patterns that depend on workers with

high levels of talent development, including management, research, healthcare,engineering, computer, and skilled production occupations. Planned expansion in thehealthcare industry alone will have a significant effect on the regional economy, with anestimate of over 9,000 added jobs.

E. Jobs and occupations critical to South Dakotas economy.

Critical jobs/occupations will include most of the healthcare practitioners,technical andsupport occupations, as well as some education occupations. Registered nurses,medical assistants, medical records technicians, dental assistants, pharmacists, medicaland clinical laboratory technologists, medical transcriptionists, radiologic technologistsand technicians, and pharmacy technicians are all on the list of occupations with afavorable or very favorable job outlook and all are projected to need 30 or more newworkers per year. Medical and health services managers, special education teachers,postsecondary vocational education teachers, kindergarten teachers and self-enrichment education teachers have a favorable or very favorable job outlook rating andwill require 10 or more new workers per year. There are specific areas within other

teaching occupations that can be considered critical, including K-12 music, specialeducation, or foreign language in a public, private or parochial school, or teaching highschool math or science in a public, private or parochial school. Based on foreign laborcertifications in the State, there is a shortage of American workers available to fill avariety of openings, including postsecondary teachers, research assistants, medicaldoctors, computer software engineers, mechanical and electrical engineers, and a fewsecondary school teacher positions.

F. Skills needed for available, critical and projected jobs.

The following table shows the projected occupational growth by development level.Occupations that require no postsecondary education are projected to be slower growingthan those that require postsecondary education. Occupations that require on-the-jobdevelopment will be growing at 11.9 percent, generating about 100,000 new jobs from


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South Dakota Occupational Projections by Talent Development Level

2004

Workers

2014

Workers

Percent

Change

NewWorkers

NeededOn-the-Job Development 248,440 277,940 11.9% 100,110

Some Postsecondary Education 123,580 139,525 12.9% 39,425

Bachelor's Degree 43,120 49,790 15.5% 15,850

Bachelor's Degree & Work Experience 15,230 17,790 16.8% 5,315

Master's Degree & Higher 12,510 14,975 19.7% 4,785


G. Current and projected demographics of the available labor pool now and overthe next decade.

State residents participate in the labor force at a very high rate. The latest annualCurrent Population Survey figures show the South Dakota labor force participation ratewas 73.7 percent in 2004. In other words, almost 74 percent of all residents age 16years and over were in the labor force, either working or looking for work. Thiscompares to a 2004 national average of 66.0 percent. Only two other states (Minnesotaand Nebraska) had higher labor force participation rates than South Dakota during the

reference period. The youth in the State were also active participants in the labor force.In 2004 approximately 64.7 percent of South Dakotas youth (age 16-19 years) were inthe labor force. Nationally, 43.9 percent of the youth (age 16-19 years) participated inthe labor force.

Since the labor force participation rate is very high in South Dakota, it is not unexpectedthat the unemployment rate would be low. In 2006, the annual average unemploymentrate was 3.2 percent. The unemployment rate has been quite low for the past several

years. Because of the rural nature of the State and close connection to the agriculturaleconomy, South Dakota typically enjoys low unemployment rates. Despite rising workerlevels and an improving economy in 2006, layoffs continued among a few employersrelated to global competition.

H. South Dakotas in-migration and out-migration of workers.

The 2006 population estimates show that there are 781,919 State residents. The

following table has population projections from 2000 to 2010. The 0-18 years of agegroup will decrease in size and will become a much smaller share of the total population,accounting for only 24.5% by 2010. Conversely, the 65+ years age group will increasesubstantially and account for 16.7% of the 2010 population. So, the future workforce willbe made up of fewer younger workers and more experienced and older workers.


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The 19-24 years age group represents residents who are transitioning from high schooland postsecondary education into the workforce. During their first years in the real

world, many workers in this age group take a job that is temporary, lower paying, and atthe bottom of the career ladder to their chosen occupation. As their talent developmentprogresses and theybecome more experienced, they will probably move on to better

jobs.

As the population ages, it is apparent more employers will need to look at older workersto meet their workforce staffing needs. Older workers have a high level of developedtalentand have proven their dependability. Many of these older workers have the skillsneeded by employers and will be looking for flexible, part-time jobs.

A factor that impacts population trends is the migration of residents into and out of theState. From 2000 to 2006, South Dakota gained 2,731 residents due to net migration.This net migration statistic includes the migration of 1,951 foreigners and 810 nationalresidents that migrated into the State. Based on migration statistics by age, it isinteresting to note that the age distribution of the in-migration is basically the same asout-migration. Younger workers (19-24 years of age) comprise about one-fifth of both thein-migration and out-migration. As expected, older residents 65+ years of age make up a

very small share of migrants.

I. Gaps South Dakota is experiencing today and gaps projected over the nextdecade.

The slow-growing and aging state population means fewer workers will be available totake lower skilled jobs. Many of these jobs are filled by new workers who are taking first

jobs or by workers with no postsecondary education. With respect to jobs that require

postsecondary education, the key will be to retain graduates trained in the State. If alarge number of these graduates can be retained, and the labor pool keeps growing asforecasted, there should be no major skills/talent development gaps. The only areas ofconcern are identified in the following sections.

J. South Dakotas workforce development issues identified, andK. Workforce development issues of South Dakota critical to economic healthand growth.

There will be two great challenges with respect to preparing workers for future jobs andmeeting the business demand for new workers. One will be to provide trained, skilledworkers for occupations that require postsecondary education. The second challengewill be to ensure an adequate supply of good workers are available to fill jobs thatrequire no postsecondary talent development, but tend to be entry-level, lower paying


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First, there have to be enough students enrolled and graduating from thesepostsecondary programs. Second, it is important that graduates who have to belicensed or certified for their chosen occupations can pass the required licensing test or

meet the certification requirements. Third, enough graduates have to remain in the stateand take jobs related to their education. Because all three factors impact the supply ofworkers, the number of enrolled students in and graduates of educational programs willhave to be higher than the projected demand for new workers. In some cases, theenrollment and graduate levels have to be substantially more.

The South Dakota Follow-up Project provides information on the placement outcomesfor public educational and talent development programs. Based on the 2005 graduatereport, 80 percent of the public university graduates originating in South Dakota were still

found in the state six months after graduation; 36.0 percent of the university graduateswho were not from South Dakota remained in the state. Just about 90 percent of thediploma degree program completers found jobs, with almost 68 percent of those with

jobs finding work related to their talent development. Over 92 percent of associatedegree graduates had a job placement, and almost 69 percent of the graduates with jobsfound jobs in occupations related to their education. With respect to graduates ofbachelors degree and higher degree programs, around 84 percent found jobs; almost68 percent of those with jobs were in occupations related to their educational program.

As mentioned previously, occupations that require only on-the-job development areexpected to grow 12 percent, generating about 100,000 new jobs from 2004-2014. Jobsin these occupations tend to be lower paying and experience high turnover becauseworkers think of these jobs as stepping stones to better paying jobs. Many of these jobsare taken by younger workers or workers that want part-time jobs.

The state population is relatively slow-growing and is getting older. These factors havea negative impact on the supply of workers, especially the supply of younger workers.

The supply of new workers entering the labor market has slowed in the last few years.However, it is very likely a slow-growing economy in recent years has lowered thenumber of new workers entering the workforce. According to wage record research(using administrative records) conducted in the state, there were about 66,693 newworkers appearing on company payrolls in 2005 who were not on payrolls in 2004.

Those workers come from many different sources, including workers moving to the state,residents previously unemployed, residents of other states commuting to South Dakota

to work, and new entrants and reentrants to the workforce. The new entrants wouldinclude high school students, college students, recent graduates, etc. Workers returningto the work force after absences because of long-term illness, family responsibilities, etc.would make up the reentrant category.

Since the number of residents in the younger worker age group is projected to decline


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In addition to the issue of declining number of younger workers, some occupations faceproblems with job turnover. Job turnover represents the labor flows into the labor marketand also between businesses. The job turnover picture has two perspectives-job entr

department of labor: 2007 wia state plan

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