February 1, 2012

Madison Club

Wisconsin Insurance AllianceAnnual Meeting

Secretary Reggie NewsonWisconsin Department of Workforce Development

Wisconsin: The Workforce of Choice

Governor Walker’s Strategies WorkingGovernor Walker’s Strategies Working

Recent State Address Shows Results: Recent State Address Shows Results:

Unemployment rate down, lowest since 2008

Added 13,500 private sector jobs last year vs. 150,000 loss previous three years

94% of job creators say Wisconsin’s on right track

Majority of employers surveyed plan to expand, hire workers

Wisconsin Is Open for BusinessWisconsin Is Open for Business““We are turning things around. We are headed in the right direction.”We are turning things around. We are headed in the right direction.”

Wisconsin Is Open for BusinessWisconsin Is Open for Business““We are turning things around. We are headed in the right direction.”We are turning things around. We are headed in the right direction.”

““Wisconsin Working” Builds on Successful StrategiesWisconsin Working” Builds on Successful Strategies

First day in office, declared Wisconsin open for business

Affirmed job creation goal, called special sessions to spur growth

Won approval of tax credits to help create jobs

Achieved regulatory reform

Created new economic development agency

Working with employers to find quality employees

Moving Wisconsin forward

Property & Casualty Insurance, Key WI IndustryProperty & Casualty Insurance, Key WI Industry Economic impact – 2010 payroll topped $1.22 Billion

Nearly 500 firms, 18,870 direct employees

Average annual salary, nearly $65,100 vs. $40,000 average overall

Among leading private sector employers in communities

American Family, Madison

QBE, Sun Prairie

Sentry, Stevens Point

ACUITY, Sheboygan

Wisconsin Worker’s CompensationWisconsin Worker’s Compensation

First in Nation WC Program

Advisory Council with equal membership 5 labor, 5 management

Competing interests committed to consensus Latest example, AB-499, subject of public hearing today Raises permanent partial disability benefit At $312 per week, still among lowest Iowa, highest, at $1,300 per week

Industry has key role in successful process Sentry, Liberty Mutual & QBE are non-voting

Advisory Council members

Wisconsin Worker’s CompensationWisconsin Worker’s Compensation

Wisconsin Worker’s Compensation Rates Among Lowest

Actual Cost Per $100 of Payroll

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

WI IA MI Il MINN

1 2 3 4 5

State Comparison

Pre

miu

m R

ate

Wisconsin Worker’s CompensationWisconsin Worker’s Compensation

Wisconsin Average Cost per WC Case Among Nation’s LowestWisconsin Average Cost per WC Case Among Nation’s Lowest

Wisconsin ranks 39th among 45 states with comparable plans

Average cost of $8,120 = 7th lowest nationally

Illinois ranks 4th highest at $19,805 average cost per case

Minnesota ranks 15th highest at $12,853

Iowa ranks 28th highest at $10,290

Michigan ranks 38th at $8,313

Wisconsin Worker’s CompensationWisconsin Worker’s Compensation

Wisconsin Gets High Marks in National Studies

Workers back on job faster → 1st among 11 study states Study states include Calif., Tex., Mich., Penn., Fla.

Worker satisfaction → 1st among 11 states in HC study States include Calif., Tex., Mich., Penn., Fla.

Time loss ranking →lowest of 16 study states Temporary disability average 4 weeks shorter than median Study states include Calif., Tex., & Midwest states

Source: Workers Compensation Research Institute

Rising Healthcare Costs Among ChallengesRising Healthcare Costs Among ChallengesWC has strong safety focus, employer partnerships

Single “Wrap Up” Coverage of major construction projects Multiple contractors, one policy, one safety plan Site visits, inspections, pro-active approach to prevent accidents Examples: Marquette Interchange, UW-Madison Discovery Center

Wisconsin Corporate Safety Awards Highlights successful safety programs as examples for others Funded in part by DWD

“For over a year we have been building a better job creation environment in Wisconsin. These new initiatives will continue our efforts to create jobs for Wisconsin families.” Governor Walker.

Wisconsin WorkingWisconsin WorkingSpecial Cabinet on Economic and Workforce Investment PlanSpecial Cabinet on Economic and Workforce Investment Plan

Wisconsin Working – DWD Role

Plan helps address skills gap, promote private sector job creation

Double the number of job fairs held in 2012

Hire 14 additional staff to assist in re-employment services

Partner with WEDC to identify employers’ labor needs and supply interested workers to fill openings

Work with the Dept. of Veterans’ Affairs to assist veterans in finding meaningful employment

Create College and Workforce Readiness Council to recommend improvements that will result in immediate job creation

Support “Wisconsin Wins” legislation to help unemployed workers gain skills

Workforce Challenge: Skills Gap

When we entered office, we were surprised by the skills gap: 120,000 people on unemployment, yet employers telling us, “I can’t find welders.”What are we doing to match workers to jobs?

Sending targeted email job recruitments to over 77,000 jobseekersOrganizing almost 200 job fairs serving 1,400 employers and 24,000 jobseekersUnemployment Insurance claimants must now register with Job Center of Wisconsin and complete a resume

Wisconsin workers -- Age 26 & older

• Many occupations require at least technical degree

• 65.8% lack technical degree

Source: U.S. Census, 2005-2009 American Community Survey

Workforce Challenge

High School

Drop Out

11%

High School Grad

34.3%Some

College(no degree)

20.5%

Associates Degree

8.8%

Four-year College Degree, or more

25.4%

JobCenterofWisconsin.com = opportunitiesJobCenterofWisconsin.com = opportunitiesJob openings exceeding 32,000Top 10 job openings statewide on JCW.com

Production / ManufacturingOffice and Administrative SupportHealthcare Practitioners (RNs/LPNs)ManagementSales

Transportation / Moving Computer & MathArchitecture & Engineering Military Personal Care & Service

DWD Strategic Goals DWD Strategic Goals Connect job seekers to jobs (250,000 jobs)

Support development of highly skilled labor force

Achieve unemployment insurance solvency and increase program integrity

Deliver DWD services more efficiently and support increased transparency and accountability

Wisconsin: The Workforce of Choice

DWD Strategic Goals

Connecting job seekers to jobsPromote Job Center of Wisconsin, job services DWD & partners provide

Connect unemployment insurance claimants to employment & training services

Empower individuals with barriers to employment to become economically self sufficient

Wisconsin: The Workforce of Choice

DWD Strategic Goals

Support development of highly skilled labor forceEngage Governor’s Council on Workforce Investment

Coordinate, align workforce development programs with public & private sector partners

Focus resources on key sectors with high growth, strong demand for workers

Wisconsin: The Workforce of Choice

DWD Strategic Goals

Achieve UI solvency, increase program integrityEngage Unemployment Insurance Advisory Council

Increase UI program efficiency and cost effectiveness

Wisconsin: The Workforce of Choice

DWD Strategic GoalsDeliver DWD Services More Efficiently and Support Increased Transparency and Accountability

Continuously identify and implement strategies to deliver programs and services more efficiently

Improve funding and efficiency of the Equal Rights and Worker’s Compensation programs

Measure results to allow for informed decision making on resource allocations

Enhance efficiencies by implementing high-priority IT projects

Thank You!

Questions?

Secretary Reggie NewsonDepartment of Workforce Development

201 East Washington AvenueP.O. Box 7946

Madison, WI 53707-7946Telephone: (608) 267-1410

Email: sec@dwd.wisconsin.govwww.dwd.wisconsin.gov