Work force and economic development agencies team up in tough times (1/20/2008)

Michigan's economic woes have prompted a greater incentive for work force agencies and economic development groups to collaborate, a new University of Michigan study shows.

The two entities have historically been discrete and disconnected but the groups are increasingly coordinating efforts to get the most out of limited resources, the study says.

"What began out of necessity is now seen in many places as the only way to move forward," said Elsie Harper-Anderson, assistant professor of urban and regional planning.

The study, funded by the Center for Local, State, and Urban Policy at U-M's Gerald R. Ford School of Public Policy, focused on the growing collaboration between work force agencies and economic development groups. These organizations' distinct goals and approaches have traditionally differed-economic development emphasizes creating jobs and increasing economic activity, while work force development focuses on placing people in jobs.

Massive job losses in Michigan, the ailing auto industry and its related sectors, decreases in federal program funding, and out migration of young educated workers increased the sense of urgency to address local economies, says Harper-Anderson. Recently, there has been some progress as businesses, nonprofits and government agencies are beginning to collaborate more on work force and economic development efforts.

"Work force administrators interviewed in Michigan saw a need for more consistent and systematic efforts to create more seamless connectivity as compared to the sporadic and ad hoc efforts they see now," said Harper-Anderson, whose research focuses on the impact of macroeconomic transformations on regional labor markets, local economies and racial inequality patterns.

Some broad changes have contributed to the evolving relationship in Michigan:

• Organizational changes have blurred the former divisions between the two fields.
  In many areas the two functions have been brought together under one larger administrative unit. More organizations now serve either dual or multiple purposes, including both work force development and economic development.



• Intersecting networks, shared knowledge and growing social capital have increasingly linked the two fields together.
  Several administrators explained that they continue to sit on the same boards and working groups even after their official title and/or organizational affiliations have changed. The result of more local, regional, and national networks made up of individuals with diverse backgrounds and interests taking on work force and economic development issues simultaneously has been a great deal more crossover and connectivity between the two fields.



• Customization of efforts have increased collaboration between the fields, based on local assets, traditions and relationships.
  Attempts to build economies on existing local assets have led to customized strategies based on local institutions, resources and relationships. In turn, leveraging these local assets has necessitated new partnerships and collaborations. Some of these partnerships have occurred directly between work force and economic development organizations.



• Changes in the actors involved, as business leaders take increasingly active roles in work force development efforts.
  Work force administrators reported that business leaders have become more interested in labor force development because they realize that a critical component of a competitive economy is a well-trained work force. Many work force administrators said that business leaders have taken a more active interest in the system in general.



• New approaches taken by work force development officials that are more inline with how economic development officials operate.
  The ways in which administrators and staff conceptualize their roles have increasingly included new functions not previously on the work force development agenda. Several work force administrators reported actively engaging in marketing their services for training, recruitment and screening of employees as well as actively participating in the recruitment of businesses to their area, both of which have traditionally been the role of economic development.

Note: This story has been adapted from a news release issued by the University of Michigan

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