Preparing California for the Future of Work

Aerospace Corporation Workforce and Hiring Trends

• FY17 revenue approached $1 billion, with projections to surpass this mark in 2018.
• The organization employed nearly 4,000 staff, with 73% in technical roles and over 750 holding PhDs.
• Record hiring is underway, with plans to hire over 500 employees this year, including 400 in technical roles and 299 interns.
• 42% of new hires are from diverse backgrounds, reflecting a strategic commitment to workforce diversity.
• Critical recruitment needs include software engineers, robotics specialists, cybersecurity experts, and electrical engineers.

California-Specific Industry Challenges

• A primary bottleneck is the shortage of engineers and scientists who possess current or eligible security clearances.
• The industry faces intense competition from technology firms and startups offering higher salaries, often poaching defense talent.
• An aging workforce is leading to increased retirements, exacerbating the talent gap.
• High cost of living in California and a general lack of public awareness regarding aerospace careers hinder recruitment.
• There is a noted trend of employees leaving the defense sector for non-traditional tech companies rather than other aerospace firms.

The "Middle Skills" Gap

• Nearly half of U.S. jobs are projected to be "middle-skilled" by 2024, defined as requiring more than a high school diploma but less than a four-year degree.
• A deficit of 12 million workers exists to fill these middle-skilled roles across the economy.
• Industry partners, such as Symantec, estimate 60,000 unfilled cybersecurity roles could be filled by candidates with specific training but no four-year degree.
• Requiring four-year degrees for roles that do not need them creates inflationary pressure on wages and distorts the labor market; 66% of surveyed employers acknowledge overlooking qualified candidates due to this requirement.
• The LinkedIn Economic Graph identifies the largest current skill gap nationally as "soft skills," specifically communication, teamwork, and collaboration.

Automation and Workforce Evolution

• Automation transforms job content rather than solely eliminating jobs; for example, Amazon fulfillment centers use robots to deliver items to associates rather than replacing them.
• New roles have emerged from automation, such as mechatronics and repair technicians, requiring upskilling of existing staff.
• Unlike the Industrial Revolution which took 60+ years for wages to recover, current technological changes are occurring at a pace that demands proactive skills development.
• Amazon reports creating over 250,000 full-time jobs in the U.S. and an average of 130 new jobs per week in California since 2013.
• Amazon's "Career Choice" program pays up to 95% of tuition for associates to train for roles outside Amazon that pay more than their current position.

Educational Institution Roles and Initiatives

• California Community Colleges (CCC): 115 colleges are partnering with employers and government to build curricula for the skilled workforce; the P-TECH model (9-14 academy) will allow students to earn an associate degree alongside high school.
• California State University (CSU): Produces over 100,000 graduates annually; has launched new master's degrees in cybersecurity and food safety to meet industry needs; offers competency-based and online credentials for upskilling.
• Legislative Investment: California invested an additional $1.3 billion in higher education this year and is pursuing tuition-free community college for the first year.
• Early Childhood: The legislature supports early childhood education initiatives, citing that 90% of brain development occurs by age five, creating a business case for pre-K investment.

Strategic Shift from Partnership to Integration

• Panelists argue that traditional "partnerships" are insufficient; the future requires "true integration" and "scale" to address income inequality and workforce gaps.
• The goal is to move beyond parallel systems to a single, aligned ecosystem where government, education, and industry co-design curricula and pathways.
• There is a call to scale successful local pilots, such as the LA Unified/Amazon cloud computing dual enrollment program, to a state-wide level.
• Emphasis is placed on "durable, transferable credentials" that allow workers to move between jobs and educational institutions without restarting their progress.

Apprenticeships, Internships, and Work-Based Learning

• Amazon's cloud support apprenticeship includes formal classroom training and paid on-the-job work, with apprentices earning ~70% of their final salary during the one-year program.
• Aerospace Corporation hires 300+ interns annually, converting many into full-time employees through summer and year-round paid programs.
• Pre-apprenticeship programs are identified as critical gateways for underrepresented groups and adults who lack foundational technical skills or algebraic capability.
• Internships are viewed as a method to "de-risk" hiring by allowing employers to evaluate candidates in real-world settings before making full-time commitments.

Soft Skills and Employability

• Soft skills are identified as the primary differentiator for hiring; identical technical resumes can be rejected if a candidate fails to demonstrate communication or "storytelling" abilities during an interview.
• Employability training must be explicit, covering norms like punctuality, business etiquette, and professional conduct, particularly for military transitions and first-generation college students.
• California State University has piloted the Stanford "Design Your Life" course to help students connect personal vision with professional goals and soft skill development.
• Success in acquiring soft skills often requires addressing systemic barriers (e.g., lack of transportation or childcare) that prevent young adults from mastering professional behaviors.

Barriers to Entry and Reform

• Security clearance processes often disqualify capable candidates based on minor past mistakes, creating a loss of talent for the defense industry.
• The panel supports "Ban the Box" initiatives and argues for the removal of barriers for individuals with prior convictions who have rehabilitated themselves.
• There is a consensus that the "one-and-done" education model is obsolete; workers will sustain 7-11 jobs after age 22, necessitating a focus on continuous upskilling and reskilling.
• California faces a funding shortfall in higher education, turning away 30,000 eligible students annually and driving graduates to out-of-state institutions.

Forward-Looking Statements and Advice

• Industry leaders urge employers to stop using four-year degrees as a blunt proxy for talent and to create alternative pathways for diverse candidates.
• Government is invited to be viewed as a collaborative partner rather than a regulator, particularly in funding and policy design.
• The immediate imperative is to "lean in" at the local level to scale successful programs rather than waiting for state-level solutions.
• The future workforce requires a moral imperative to attach as many Americans as possible to the labor market through foundational skills and proper job matching.