Utah Rural Online Initiative Pilot Program
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The purpose of the Rural Online Initiative (ROI) Pilot Program is to provide Utah’s rural workforce and businesses with an agency that provides education/training and services for online opportunities in remote employment, freelance work, and online commerce.
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Utah Rural Online Initiative Pilot Program
- 2. 20-35% job losses in Emery, Daggett and Piute Counties 3% average Utah unemployment rate 7.5% unemployment in Garfield, Wayne, Piute Counties
- 3. “ We need to find ways to adapt to the changing market out there and find a pathway to success. -Gov. Herbert
- 4. RELOCATING INCOME IS MORE FEASIBLE THAN RELOCATING JOBS $200 per freelance worker for broadband and online learning platform subscription $2,000 per worker to move office vs
- 6. 94% of jobs created between 2005- 2015 were in the alternative work category.
- 7. Telecommuting, co-working spaces, virtual teams, freelancing & online talent platforms are the future of work.
- 8. 35% OF THE U.S. WORKFORCE FREELANCED IN 2017 57 87 103 83 2017 2027
- 9. INDEPENDENT WORKERS GENERALLY FIT INTO 4 SEGMENTS PRIMARY INCOME SUPPLEMENTAL INCOME PREFERRED CHOICE OUT OF NECESSITY d30% Free agents 30% | 49 million d14% Reluctants 14% | 23 million d40% Casual earners 40% | 64 million d16% Financially strapped 16% | 26 million Source: 2016 McKinsey Global Institute survey of ~8,000 US and European respondents.
- 10. Gov. is trying to measure job insecurity, but in the emerging freelance economy, what one worker calls job insecurity another may say is the whole point of going freelance.
- 11. By 2027, that is projected to exceed 50%. 36% OF THE U.S. WORKFORCE FREELANCED IN 2017 51%49% 36% 64% 2017 2027
- 13. McKinsey rated Utah as one of the Best States for Household Internet Access 4th
- 14. UTAH IS ALREADY BEHIND THE VISION THAT: Broadband strengthens and grows Utah’s businesses by allowing them to be nationally and internationally competitive, promoting innovation and entrepreneurship, attracting investment and supporting the development of the workforce of the future.
- 15. COMMUNITY OUTREACH Town Hall Meetings Skill-based Workshops ASSESSMENTS 1-on-1 Coaching & Webinars SMS Messaging Slack Channel Collaboration HOW WE WILL REACH RURAL UTAHNS AND MAKE AN IMPACT
- 16. THE OBJECTIVES OF THIS PILOT PROGRAM ARE: Raise awareness of the freelance market Train people in getting started with existing skills Assess current level of freelance skills Mentor those that lack skills to do freelance work Set rural Utahns on pathway to develop more freelance skills
- 17. ROI UNIT Senior Program Coordinator Program Coordinators (3) Staff Assistant Steering Committee Extension Faculty – Principal Investigator, Advisor
- 19. SKILLS & PARTNERS Top Freelance & Remote Online Job Categories Software Development, Artificial Intelligence, Machine Learning Data Mining Sales, Lead Generation Web Development Accounting/Bookkeeping Financial Analysis Business Consulting, Marketing, Brand Strategy Graphic Design Power Point Video Editing Audio Editing Photo Editing Copywriting/Editing Content Writing/SEO Social Media Management Instagram Marketing AutoCAD 3D Rendering 3D Animation Customer Support Virtual Assistant Paralegal Services Insurance Inspection Teaching/Tutoring Voiceover Talent Potential Partners & Resources County Commissioners Dept. Workforce Services Five & Six County AOG SBDC Network Digital Works Farm Bureau/YF&R High Schools Pluralsight Entrata Chatbooks Upwork Flexjobs
- 20. GOALS County Population 2016 Unemployment Rate 2018 Unemployed State Unemployment Rate ROI Goal Piute 1,466 4.4% 65 3.1% 19 Sevier 21,267 3.7% 787 3.1% 128 Emery 10,216 5.0% 511 3.1% 194 Carbon 20,399 4.8% 979 3.1% 347 Grand 9,579 5.1% 489 3.1% 192 Wayne 2,702 6.5% 176 3.1% 92 Garfield 4,986 8.2% 409 3.1% 254 San Juan 16,895 6.6% 1,115 3.1% 591 Kane 7,334 3.2% 235 3.1% 7 Beaver 6,463 3.8% 246 3.1% 45 Iron 500 3.5% 17 3.1% 2 Washington 160,245 3.2% 5,128 3.1% 160 2,031 1689
- 21. CONCLUSION We must preserve our rural communities. Utah is on the verge of a critical time in the history of our rural communities. Rural communities are struggling like they never have before. Connecting our rural Utahns to the on- demand, Freelance Economy to increase income & prosperity
- 22. REFERENCES Accenture. (2017, January 19). Technology Vision 2017 Report. Retrieved from: https://www.accenture.com/us-en/insight-future-workforce-trends Burkitt, B. (2017, August 4). Gov. Herbert urges leaders to take action at Summit. Retrieved from: http://www.thespectrum.com/story/news/local/cedar-city/2017/08/04/gov- herbert-urges-rural-leaders-take-action-summit/541621001/ Freelancers Union & Upwork. (2017). Freelancing in America: 2017. Retrieved from: https://www.upwork.com/i/freelancing-in-america/2017/ Kopf, D. (2016, December 5). Almost all the US jobs created since 2005 are temporary. Retrieved from: https://qz.com/851066/almost-all-the-10- million-jobs-created-since-2005-are-temporary/ Manyika, J., Lund, S., Bughin, J., Robinson, K., Mischke, J. & Mahajan, D. (2016, October). Independent work: Choice, necessity, and the gig economy. Retrieved from: https://www.mckinsey.com/global-themes/employment-and- growth/independent-work-choice-necessity-and-the-gig-economy McGuire, R. (2017, July 17). Ultimate Guide to Gig Economy Data: A Summary of Every Freelance Study We Can Find. Retrieved from: http://nation1099.com/gig-economy-data-freelancer-study/ O’Donoghue, A.J. (2017, December 13). Gov. Gary Herbert unveils $16.7 billion budget proposal for Utah. Retrieved from: https://www.deseretnews.com/article/900005653/gov-gary-herbert-unveils- dollar167-billion-budget-proposal-for-utah.html Reese, N. (2017, November 30). Internet access in Utah: stats & figures. Retrieved from: https://broadbandnow.com/Utah The State of Utah. (2014). Broadband Project. Retrieved from: https://broadband.utah.gov/wp- content/uploads/2015/01/BroadbandPlan2014FINAL.pdf U.S. News Best States Report. (2016). Internet Access Rankings: Measuring how well and how fast citizens can access the internet. Retrieved from: https://www.usnews.com/news/best- states/rankings/infrastructure/internet-access World Economic Forum. (2016, January). The Future of Jobs Report: Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution. Retrieved from: http://www3.weforum.org/docs/WEF_Future_of_Jobs.pdf
Editor's Notes
- The purpose of the Rural Online Initiative (ROI) Pilot Program is to provide Utah’s rural workforce and businesses with an agency that provides education/training and services for online opportunities in remote employment, freelance work, and online commerce.
- While northern Utah’s economy has prospered in recent years, not all counties are sharing in the success – especially in the rural communities. Emery, Daggett and Piute counties have all seen 20-35 percent job losses. Unemployment rates in portions of southern Utah are double the 3 percent state average with Garfield, Wayne and Piute counties all reporting rates of more than 7.5 percent in June 2017. Burkitt, B. (2017, August 4). Gov. Herbert urges leaders to take action at Summit. Retrieved from: http://www.thespectrum.com/story/news/local/cedar-city/2017/08/04/gov-herbert-urges-rural-leaders-take-action-summit/541621001/
- The #25kJobs initiative is a solid start…but even Governor Herbert agrees that we need to do more. Many rural communities have suffered due to declines in agriculture and the coal industry. “We need to find ways to adapt to the changing market out there and find a pathway to success.” – Gov. Herbert Burkitt, B. (2017, August 4). Gov. Herbert urges leaders to take action at Summit. Retrieved from: http://www.thespectrum.com/story/news/local/cedar-city/2017/08/04/gov-herbert-urges-rural-leaders-take-action-summit/541621001/
- Working 9-5 for a single employer bears little resemblance to the way a substantial share of the workforce makes a living today. Millions of people assemble various income streams and work independently, rather than in structured payroll jobs. This is hardly a new phenomenon, yet it has never been well measured in official statistics—and the resulting data gaps prevent a clear view of a large share of labor-market activity. We do not need businesses to relocate, this is a near impossible task. We already have an improving broadband infrastructure in place…we just need to relocate income. We can connect the dots in the time in which we live by connecting people in rural Utah to the global freelance market. Kopf, D. (2016, December 5). Almost all the US jobs created since 2005 are temporary. Retrieved from: https://qz.com/851066/almost-all-the-10-million-jobs-created-since-2005-are-temporary/
- Many rural Utahns already have the skills to start earning freelance income from home, in a library, or a co-working space. Those that find themselves without the skills, can develop these skills in a rather short period of time through online learning platforms, like Utah’s very own: Pluralsight. These skills can also be acquired at any of Utah’s technical colleges. With 2018 being the “Year of Technical Education,” declared by Governor Herbert, the technical college pathway would allow rural Utahn’s to enter the freelance economy with skills in: Programming, IT, Web Development, Bookkeeping, Digital Media, 3D Modeling, Healthcare Coding, and Drafting. O’Donoghue, A.J. (2017, December 13). Gov. Gary Herbert unveils $16.7 billion budget proposal for Utah. Retrieved from: https://www.deseretnews.com/article/900005653/gov-gary-herbert-unveils-dollar167-billion-budget-proposal-for-utah.html
- The 9-5 job is going away. Nearly all (94% of the 10 million) jobs created between 2005 and 2015 were not traditional nine-to-five employment. “We find that 94% of net job growth in the past decade was in the alternative work category” (Kopf, 2016). Alternative work = 1099, Contract or Temporary. Think Uber, Airbnb, Task Rabbit, Freelancer. A full-time job with one employer has been considered the norm for decades, but increasingly, this fails to capture how a large share of the workforce makes a living. A narrow focus only on traditional jobs ignores tens of millions who put together their own income streams and shape their own work lives. Although independent work is not a new phenomenon, it does not fit neatly into financial labor statistics. This report aims to fill some of the data gaps surrounding it. Kopf, D. (2016, December 5). Almost all the US jobs created since 2005 are temporary. Retrieved from: https://qz.com/851066/almost-all-the-10-million-jobs-created-since-2005-are-temporary/
- Telecommuting, co-working spaces, virtual teams, freelancing & online talent platforms are all on the rise, transcending the physical boundaries of the office or factory floor and redefining the boundary between one’s job and private life in the process (World Economic Forum, 2016). World Economic Forum. (2016, January). The Future of Jobs Report: Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution. Retrieved from: http://www3.weforum.org/docs/WEF_Future_of_Jobs.pdf
- In the next five years everything we assume about full time employment and freelancers will flip completely. On-demand talent platforms will serve as the primary driver of economic growth around the world and will even replace conventional management models. Legacy models of employment will be “dissolved and replaced with talent marketplaces” driven by the “surge of on-demand labor platforms and online work management solutions” (Accenture, 2017) According tor the Upwork/Freelancers Union Study, 35 percent of the U.S. workforce—57 million people—freelanced in 2017. Freelancers Union & Upwork. (2017). Freelancing in America: 2017. Retrieved from: https://www.upwork.com/i/freelancing-in-america/2017/
- The McKinsey Global Institute study groups contingent workers into four categories: Free agents — These freelancers actively choose gig economy work as their career or professional framework. Free agents are 30 percent of independent workers in the U.S. and Europe, numbering around 49 million. Casual earners — These are professionals who also choose to freelance to augment their primary income. These part-time freelancers number around 64 million, representing 40 percent of the contingent worker population in Europe and the U.S. Reluctants — These are like full-time free agents, but not by choice. Reluctants were either laid off or are hindered in some way from getting traditional employment. They derive their primary income from the gig economy. They number around 23 million, accounting for 14 percent. Financially strapped — These are similar to casual earners but more out of necessity than choice. They freelance because they need to augment their primary income. Financially strapped freelancers could be as many as 26 million and account for 16 percent of the contingent workforce in the US and Europe. Manyika, J., Lund, S., Bughin, J., Robinson, K., Mischke, J. & Mahajan, D. (2016, October). Independent work: Choice, necessity, and the gig economy. Retrieved from: https://www.mckinsey.com/global-themes/employment-and-growth/independent-work-choice-necessity-and-the-gig-economy
- There is little government data about people who make their living freelancing because for generations the Bureau of Labor Statistics just counted three broad categories: farm employment, non-farm employment and employer. It’s estimate that approximately 11 percent of the working adult population in the U.S. are working primarily as full-time independent contractors in the gig economy (McGuire, 2017). The U.S. Government Accountability Office is not on track to measure the size of the Freelance Economy because it is really trying to measure job insecurity. In the emerging Freelancer Economy, what one worker calls job insecurity another may say is the whole point of going freelance. More and more people choose freelancing so that they command their own fate or because they value the flexibility. McGuire, R. (2017, July 17). Ultimate Guide to Gig Economy Data: A Summary of Every Freelance Study We Can Find. Retrieved from: http://nation1099.com/gig-economy-data-freelancer-study/
- The growth of the gig economy is part of a larger change in the nature of work that might be better described as the “blended workforce” model. Employers are increasingly engaging freelance workers and it is Utah’s opportunity to connect and educate our rural communities to this reality. McGuire, R. (2017, July 17). Ultimate Guide to Gig Economy Data: A Summary of Every Freelance Study We Can Find. Retrieved from: http://nation1099.com/gig-economy-data-freelancer-study/
- The solution will come from connecting the dots. “We don’t need the jobs, we need the income from the jobs.” – Darin Bushman. This income can be generated by freelancing, which is a more practical way then trying to convince and encourage employers to move jobs to rural communities.
- Size of freelance economy = opportunity % of workforce engaging in the freelance economy on a PT and FT basis Trends showing that freelancing is the future of work and that this is a sound investment of resources for our rural communities McKinsey rated Utah as one of the Best States (#4) for Household Internet Access U.S. News Best States Report. (2016). Internet Access Rankings: Measuring how well and how fast citizens can access the internet. Retrieved from: https://www.usnews.com/news/best-states/rankings/infrastructure/internet-access
- Broadband can provide access to regional, national and worldwide markets, enhancing the opportunities for cur- rent businesses, while providing the infrastructure to attract entrepreneurs, a highly-skilled workforce and technology- based companies that would have not otherwise considered locating in particular areas of the state. Utah is already an economic leader because of its commitment to broadband infrastructure. Broadband strengthens and grows Utah’s businesses by allowing them to be nationally and internationally competitive, promoting innovation and entrepreneurship, attracting investment and supporting the development of the workforce of the future. As the state looks toward the next frontier of economic development, the relationship between broadband and other priorities will continue to narrow. Broadband is a key component in accomplishing the Governor’s four objectives for economic growth, which are outlined below. Objective 1: Strengthen and Grow Existing Utah Businesses, both Urban and Rural Objective 2: Increase Innovation, Entrepreneurship and Investment Objective 3: Increase National and International Business Objective 4: Prioritize Education to Develop the Workforce of the Future The State of Utah. (2014). Broadband Project. Retrieved from: https://broadband.utah.gov/wp-content/uploads/2015/01/BroadbandPlan2014FINAL.pdf
- This pilot program would engage & educate people in counties with the highest rates of unemployment: Garfield 6.7% - 61% connected to high speed internet San Juan 6.7% - 52% connected to high speed internet Wayne 6.5% - 60% connected to high speed internet Grand 4.8% - 63% connected to high speed internet Uintah 5.6% - 56% connected to high speed internet Piute 5% Emery 4.7% Carbon 4.9% Dagget 5.2% Duchesne 5.1% Forms of outreach & Education: Community outreach Town Halls Training sessions 1-on-1 Coaching Webinars Provide scholarships/reimbursement for skills that allow freelancers to rapidly respond to market demand. Work with Pluralsight on discounted (or free) access to learning platform Tax incentives to Utah companies that hire rural Utahns (HB 390).
- Uncover the barriers keeping rural Utahns from joining the freelance economy: Do they just not know about it? Are they lacking skills? Is connection an issue? What is keeping them generating freelance income online? Provide scholarships or reimburse those that complete online courses to develop new skills that allow them to broaden there services in the freelance market Recruit students to Uintah Basin Technical College programs in Office Professional and Civil Technology
- Looking for commissioners and other leaders to help serve on the Steering Committee w/ Darin Bushman and Victor Iverson Need influencers who can help Program Coordinators make connections
- Asterisk is for base stations
- Create a Rural Utah Freelancer Agency on Upwork with user profiles that track income, skills, job completion, success rates, references,
- Looking for commissioners and other leaders to help serve on the Steering Committee w/ Darin Bushman and Victor Iverson Need influencers who can help Program Coordinators make connections
- We’re on the verge of a critical time in history for our rural communities. They are struggling like they never have before. We must preserve our rural communities Connecting rural Utahns to the on-demand, Freelance Economy is the quickest way to increase income and distribute prosperity more equitably