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The governor believes we can better connect California's workers to the emerging high tech jobs, especially in Silicon Valley."

Tal Finney, Governor Gray Davis' chief policy aide was speaking, and we were in his office in the Capitol earlier this year. His statement was no surprise. I had been associated with the governor for nearly 15 years, and knew Gray had a strong interest in Silicon Valley, as the engine of the state's jobs and economic growth.

In the past few years several studies have referred to Silicon Valley's "workforce gap," the inability of employers to find skilled workers. In May, Joint Venture Silicon Valley estimated that the Valley economy was losing $3 billion- $4 billion annually due to its lack of skilled workers.

The state Employment Development Department (EDD), of which I'm director, participates in a variety of Valley job training programs, and as well serves thousands of job seekers annually. To better understand the current Valley workforce, Bob Marr, EDD's job training manager, and I have met in the past few months with Valley EDD staff, as well as with over 20 major employers (Solectron, United Defense, IBM, Comdisco, Applied Materials) and the Silicon Valley Manufacturing Group.

Chief among our initial findings:

• Nearly all major employers have a sizable list of job openings, reflecting the tightest labor markets in the state and region of the past three decades. Unemployment in Santa Clara, which averaged over 6 percent in 1994, was down to an unprecedented 2.7 percent in September. EDD projections are for very strong job growth during the next decade.
• Employers consistently indicate a highest need for computer engineers and computer programmers. These are jobs that require at least a college degree (often an advanced degree) or sophisticated computer skills. "We can't find enough software professionals," explains Virginia Lawler, human resources manager with IBM, which has a workforce of nearly 6,000 in the Valley.
• More than one third of jobs in technology, though, do not require a college degree or sophisticated technology skills. These include the entry-level assembly and manufacturing positions, as well as the higher-skilled technicians. Employers say they have varying degrees of difficulty in filling these positions. Employers often complain today that there are too many job seekers lacking any technology orientation or basic literacy or math skills, or basic work orientation.
• There exists in the Valley a network of job training agencies focused on training of non-college graduates, including community-based organizations and community colleges, and headed by the North Valley (NOVA) Private Industry Council, one of the outstanding training agencies in the nation. These job training groups generally possess the elements of effective training: close ties to employers, knowledge of the industry or sub-industry, and follow-up after placement.

Michael Bernick is director of the state Employment Development Department (EDD), and the author of several books. He is currently writing "Work, Dignity & Craft in the 21st Century."

On one level, then, improved Valley workforce preparation does not mean a dramatic break from the existing training system, developed and improved over the past three decades. At EDD, we are working with NOVA on several projects to augment this system, to take advantage of the current window of employment opportunities. Among our projects are new training for systems administrators, network administrators, computer support specialists - all jobs in demand and elements of a career ladder in technology.

On another level, though, improved workforce preparation involves more fundamental changes in the roles of technology in K-12 education, the orientation of low income communities to technology, and continual skills upgrading for the incumbent workforce. A number of these changes are under way, in the governor's education reforms and in the local efforts to expand technology internships. Other changes are in development, particularly the important effort by Senator John Vasconcellos and Joint Venture Silicon Valley to link East San Jose neighborhoods to technology jobs and opportunities.

At EDD, we meet regularly with officials of cities in California who want to develop their technology base of jobs and companies. While the white-hot Valley economy inevitably will slow, it will continue to be the state's main engine of technology, and the leader in emerging approaches in workforce preparation.