Economy

Workforce Quality

Workforce Quality

Overall, Virginia boasts one of the best-educated and most productive workforces in the country. However, some regions have low levels of educational attainment, and the state lags behind in providing workers for middle-skills employment.

Why is This Important?

According to the U.S. Census Bureau, 90.6 percent of Virginia adults had at least a high school diploma in 2014. However, in today's dynamic economy, jobs increasingly require education or credentials beyond high school. No matter what form additional education takes -- a 4-year college degree, a 2-year degree or certificate from a community college, or a technical education certificate earned while in high school -- it not only prepares individuals for the tasks required by a job, but also enhances their ability to adapt to new working environments. Demand for skilled workers is high and expected to increase rapidly in the future.

How is Virginia Doing?

Virginia has been successful in producing and attracting college-educated workers. As a result, it has a remarkably well-educated labor force with a high percentage of baccalaureate and higher degree holders. It employs a higher percentage of people in science and engineering occupations than any other state in the nation.

On the other hand, Virginia has a relatively low number of workers with credentials, such as associate's degrees, suitable for middle-skilled positions -- those jobs which require some training or education beyond high school, but not a 4-year college degree. In addition, low levels of educational attainment can be found among large segments of the population in some regions of the state.

College-educated Worker Migration

Every state sees continual population migration -- people moving in to live, people moving out to live elsewhere. The migratory flow of college-educated adults in a state can vary in response to regional economic conditions and the relative size of its higher-education sector. In recent years, Virginia has usually benefited from a net influx of college-educated adults from across the nation.

In 2014, there were 76,261 college-educated adult in-migrants compared to 80,108 out-migrants in Virginia, the first negative migration flow since 2012; previous years (2009-2011 and 2013) had been positive.

Viewed another way, Virginia's net migration rate of college-educated adults was -1.9 per 1,000 residents in 2014, which ranked 31st among US states. This rate was lower than peer states Maryland (1.1), Tennessee (2.8), and North Carolina (6.8). The leading state in 2014 was Arizona at 14.2 per 1,000 residents. (The domestic net migration rate for the United States is, by definition, zero.)

Educational Attainment

The table below illustrates the highest level of education for adults age 25 to 64 in 2014 and includes the leading state for each level. For example, West Virginia is the national leader for adults whose highest level of education is a high school diploma, while North Dakota leads for having the fewest adults with no high school completion at all.

Virginia ranked fourth in the nation for the most graduate or professional degrees (16.2%) and seventh for the most bachelor's degrees (22.5%). Nationally, 11.4 percent of the population had a graduate or professional degree and 20.0 percent had a bachelor's degree.

Highest Level of Education for Adults Age 25-64, 2014

State	Less than High School	High School	Some College	Associate's	Bachelor's	Grad/Prof
U.S. (average)	11.8%	26.4%	21.4%	8.9%	20.0%	11.4%
Virginia	9.6% (rank 24th)	23.6% (rank 41st)	20.3% (rank 39th)	7.8% (rank 42nd)	22.5% (rank 7th)	16.2% (rank 4th)
Alaska	5.9%	28.7%	29.0% - Leader	8.7%	18.3%	9.2%
West Virginia	11.5%	40.5% - Leader	23.7%	7.6%	13.3%	7.7%
North Dakota	5.3% - Leader	25.8%	23.3%	15.8% - Leader	22.3%	8.5%
Massachusetts	8.5%	23.1%	16.1%	8.1%	25.6% - Leader	18.7% - Leader
North Carolina	12.0%	25.0%	22.7%	10.0%	20.1%	10.2%
Tennessee	11.7%	32.7%	21.4%	7.5%	17.6%	9.2%
Maryland	9.2%	24.2%	19.7%	7.1%	22.0%	17.8%

Peer state Maryland ranked higher than Virginia for graduate or professional degrees, with 17.8 percent, while Massachusetts led the nation in these (18.7%). Massachusetts was also first for bachelor's degrees (25.6%).

Virginia's achievement was considerably lower for sub-baccalaureate degrees that prepare workers for middle-skill jobs such as electricians, plumbers, and many types of computer work. In 2014, 7.8 percent of Virginia's workforce had an associate's degree, ranking the state 42nd and below the national average of 8.9 percent. Among peer states, North Carolina was higher at 10.0 percent, while Tennessee (7.5%) and Maryland (7.1%) were lower.

In addition, 9.6 percent of Virginia's workforce-aged adults lacked a high school diploma – the 24th highest (worst) among the 50 states. North Dakota was the lowest at 5.3 percent. The percentage of Virginia's population without a diploma was lower than North Carolina (12.0%) and Tennessee (11.7%), but higher than Maryland (9.2%). The national average was 11.8 percent.

Within Virginia, rural regions have the highest percentage of people without diplomas, which creates a serious impediment to economic growth in these areas. In 2010-2014, the percentage of adults with less than a high school diploma was 17.2 percent in the Southside region, 16.3 percent in the Southwest region, 13.9 percent in the Eastern region, and 13.0 percent in the Valley region. Conversely, these same regions also have the lowest percentages of residents with 4-year college and post-college degrees.

STEM Workforce

Science, technology, engineering, and math (STEM) occupations are among the most lucrative and are widely considered a bellweather for a state's or nation's ability to innovate and keep competitive pace in a dynamic global economy. In Virginia, universities and colleges are the largest source of entrants into the STEM workforce. On a population-adjusted basis, Virginia awarded 51 associate’s degrees in STEM fields per 100,000 residents in 2016, compared to 37 per 100,000 residents nationwide. Virginia’s rate was sixth highest in the nation and higher than peer states North Carolina and Maryland (28) and Tennessee (21). The nation’s highest 2-year STEM degree rate was found in Arizona, with 98 per 100,000 residents.

Virginia also awarded 198 STEM field bachelor’s (and higher) degrees per 100,000 residents in 2015, ranking it 20th highest in the nation, compared to a national average of 180 degrees. Massachusetts was the leading state with 340 STEM degrees per 100,000 residents. Among peer states, Virginia was lower than Maryland (257), but higher than North Carolina (161) and Tennessee (119).

Because of Virginia's strength in knowledge-intensive industries, the state has a high percentage of skilled workers. In 2014 the Commonwealth again ranked first in the nation for the percentage of its workforce  -- 7.5 percent -- in science and engineering (S&E) occupations. Maryland's percentage of workers in S&E was 7.4 percent, while North Carolina (4.5%) and Tennessee (3.2%) were lower than the national average of 4.7 percent.

Worker Productivity

Worker productivity, defined as output per worker, is another measure of workforce quality. Unlike educational attainment, which captures the inputs into workforce quality, worker productivity measures the average output of workers. High labor productivity has traditionally resulted in higher standards of living, although this pattern hasn't held in recent decades.

Virginia's productivity mirrored the national average until the late 1990s, when the state started growing more rapidly. In 2014, Virginia's output-per-worker value -- $86,563 -- was higher than the national average of $84,896 (adjusted in year 2009 dollars; see Data Sources note). Virginia ranked 14th among all the states. North Carolina ($79,314), and Tennessee ($73,088) had lower rates of productivity than Virginia, while Maryland ($91,072) was again higher. New York ($108,799) was the leading state for worker productivity in 2014.

Career and Technical Skills and Training

Interest in and support for career and technical education has been growing in recent years. Many Virginia high schools now offer students the chance to prepare for certain careers by completing technical education programs before they graduate. Students may earn state licenses, qualify for industry certifications, and pass National Occupational Competency Testing Institute (NOCTI) or Workplace Readiness Skills (WRS) assessments. In the 2014-15 school year, Virginia high schools granted a total of 128,820 such awards -- up from 103,599 the previous year -- with industry certifications accounting for most of the increase.

Attainment of workforce credentials has generally been rising rapidly among Virginia's regions since 2010; in 2015, only the Valley region saw a decline. The Southwest region produced the highest number of career and technical education certifications or assessments: 191 per 10,000 residents, followed by the Hampton Roads region at 160 and the Southside region at 159. The West Central region produced the fewest certifications or assessments with 135 per 10,000 residents in 2015. The state average was 154 per 10,000 residents.

A Career Readiness Certificate (CRC) is a portable, assessment-based credential that gives employers and certificate holders a uniform measure of key workplace skills. Individuals seeking a CRC credential must pass tests in Applied Mathematics, Locating Information, and Reading for Information -- skills commonly required across the workplace spectrum. CRCs are typically more popular in states or regions where fewer residents go on to attain postsecondary education.

National data indicates that an average of 81.3 career readiness certificates per 10,000 residents have been issued to Virginians since the certificate began to be offered in 2004. This certification rate is just shy of the national average of 82.0 per 10,000 residents and ranks 21st in the nation. Among peer states, North Carolina (252.9) and Tennessee (152.0) were considerably higher, while Maryland (0.4) was markedly lower. Alaska led the nation with 505 CRCs per 10,000 residents.

The number of Career Readiness Certificates issued in Virginia has grown significantly since 2008, but stabilized across 2012-2014 and even declined in 2015, when just 9,393 CRCs were issued. Among Virginia's regions, the Southside issued the most CRCs per 10,000 residents in 2015 (48), followed by the Southwest region (30). The Northern (2) and Hampton Roads (4) regions issued the fewest. The state average was 10 certificates per 10,000 residents.

What Influences Workforce Quality?

A skilled workforce is an indicator of both the presence of industries that need them and a measure of a state's ability to educate or attract top-notch workers. Thus, workforce quality can be improved both by investing in education and training and by creating a business-friendly environment that attracts knowledge-intensive businesses and responds to their workforce needs.

However, education isn't the only pathway to a skilled, well-paid workforce or to improvements in regional economies. Of the 1.4 million projected job openings in Virginia over the next 10 years, a majority will not require a college degree, but specialized training that leads to a work-related credential. Many of these jobs will also pay significantly more than the average wage level.

What is the State's Role?

Virginia's greatest contribution thus far to workforce readiness is in the more than 68,000 degrees that are produced in its public colleges and universities every year. In addition, over 80,000 Career Readiness Certificates, which certify individual employability skills, have been awarded by community colleges and one-stop employment centers since the program began in 2004. Under the governor's leadership, the state has also embarked on an ambitious program to produce an additional 50,000 STEM-H credentials by 2018.

The state can further help create a high-quality workforce through a variety of means. Virginia has already commenced or plans to engage in most of the following:

• Better match employers and workers by providing accessible information about job skill requirements; education and training programs; and current and projected job opportunities, compensation expectations, and the like
• Serve as a coordination point between employers and government agencies involved in both workforce and economic development to help ensure that residents can accumulate the skills, credentials, and degrees needed for ongoing career progress
• Help employers and the business community navigate available government programs and ensure that students and job seekers gain the necessary skills to meet market demand
• Continue to invest in education and training
• Expand opportunities for work-based learning experiences, such as vocational education, apprenticeships, and employer-based training
• Provide career transition services and fast-tracked training for military veterans to prepare them for civilian jobs
• Assist disabled, dislocated, senior, and socially disadvantaged workers in getting counseling, training, and job-placement and job-retention services through programs accessible via Virginia's One-Stop Workforce Centers
• Create a good business environment, provide sensible economic incentives, and forge industry partnerships to foster the economic vitality needed to create new job opportunities for all

For a more detailed look at Virginia's efforts to boost workforce development and quality, check out the Virginia Workforce System Report Card.