Hiring Trends

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ExecutiveSummary andAnalyticReport

November 2010

( c ) 2 0 1 0 E R I S S , I n c .V e r s i o n d a t e 0 2 . 1 0 . 2 0 1 1

Inland EmpireLabor Market Survey

Riverside County San Bernardino County


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Inland Empire 2010 Labor Market Survey

Copyright ERISS Corporation 2010 1

TABLE OF CONTENTS

SECTION 1: EXECUTIVE SUMMARY........................................................................... 2

KEY FINDINGS.............................................................................................. 4

DETAILED SURVEY RESULTS........................................................................... 7

Region and Industry ................................................................................................................... 7

Occupational Analyses ............................................................................................................. 13

Business Specific Questions ...................................................................................................... 23

SECTION 2: LABOR MARKET CHALLENGES & POTENTIAL WITHIN THE INLAND EMPIRE:AN ERISS SUMMARY REPORT................................................................................. 34

Narrative Summary .................................................................................................................. 34

I. Demographic Profile ....................................................................................................... 35

II. Labor Market Analysis: The Demand Side ...................................................................... 37

III. Labor Market Analysis: The Supply Side ..................................................................... 42

IV. Recommendations ..................................................................................................... 45

APPENDIX A: SURVEY QUESTIONS.......................................................................... 46

APPENDIX B: INDUSTRY CLUSTER DEFINITIONS....................................................... 53


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SECTION 1: EXECUTIVE SUMMARY

The following Executive Summary report details the findings of a region-wide businesssurvey of Riverside and San Bernardino Counties. The survey took place September through

November 2010.

The project was jointly planned and sponsored by the County of Riverside EconomicDevelopment Agency, the Riverside County Workforce Investment Board, and the County of San Bernardino Economic Development Agency. The project was designed to provide an in-depth analysis of current Workforce skill levels and Labor Market dynamics for Riverside andSan Bernardino Counties with resulting data available through an interactive internetapplication. The analysis was further intended to gather workforce information that willassist the County of Riverside Economic Development Agency, the Riverside CountyWorkforce Investment Board, and the County of San Bernardino Economic DevelopmentAgency in ongoing efforts to develop strategies and enhance linkages in the Inland Empire.

The collected data will assist in providing services to job seekers, employers and residentsthat meet real time workforce needs.

Specific Goals:

Analyze workforce skills attainment levels and gaps in the Inland Empire region. Measure employer-staffing needs. Identify businesses at risk of downsizing and/or relocating. Create a detailed inventory of local businesses. Improve the understanding of the needs and perspectives of local businesses. Identify and address the immediate concerns of individuals businesses. Develop strategies that will support economic development

and growth in local employment. Identify existing and potential niche opportunities in order

to enhance linkages with workforce and economicdevelopment partners and initiatives.

Recommend strategies and training necessary to create asustainable workforce environment for Inland Empireresidents and businesses.

The results of the survey are to be delivered in the following ways:

An interactive web application USWorks for Professionals A confidential ACCESS database contains the raw data and a variety of pre-set

report filters A password-protected employer management and lead management system (BSM) An electronic Executive Summary and Detailed Report (this document) A PowerPoint Presentation of the Report


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Approximately 29% (3,358) of the 11,601 eligible businesses participated in the survey.

SURVEYSCOPE AND METHODOLOGY The survey targeted employers with 5 or more employees. ERISSCorporation conducted the survey using a proprietary Computer

Aided Telephone Interviewing (CATI) system. A stratified census stylesurvey methodology was employed whereby an attempt was made tocontact every business within the survey parameters, with the finalsample representative by size and industry cluster of the population of businesses in the local region.

The final contact database was comprised of 14,558 employers. These employers werestratified according to NAICs code into pre-determined targeted industry clusters orgeographic locations 1 (see Table below). During the survey process 2,957 of thesebusinesses were found to be out of scope 2 of the survey, resulting in a net employer base of 11,601. Of these employers 3,358 participated in the survey resulting in a 29% responserate.

Cluster/Region Location Number of Employers

Recession Resistant Riverside and San Bernardino Counties 3,746

Renewable Energy Riverside and San Bernardino Counties 6,486San Bernardino (not includingbusinesses in the above clusters) San Bernardino County 4,326

TOTAL ALL 14,558

The survey questions collected information from local businesses regarding such areasas: 3

Projected growth and general staffing plans Occupational demand, turnover, hiring plans and wages Plans to expand, downsize and/or relocate Reasons for downsizing or relocating Key issues, concerns and challenges to local businesses Reasons for locating in the County

Participation in international trade Knowledge and participation in energy rebate and incentive programs Issues and concerns in the Healthcare industry Issues and concerns in the Transportation industry

1 NAICS codes for each industry cluster and region are provide in Appendix B2 Employers with wrong phone number and no new number, no answer on repeated attempts, employerswith less than 5 employees. 3 Complete survey questions are provided in Appendix A.


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KEYFINDINGS

REGION AND INDUSTRY The Renewable Energy and Recession Resistant clusters both projected moderate

growth in the next 12 months at 6% and 5% respectively.

The projected growth rate for San Bernardino County was 2%, and the InlandEmpire region as a whole was 5%.

Businesses in the Renewable Energy cluster reported a relatively high turnover rate(12% of employees replaced yearly) as compared to the Recession Resistant cluster(7%).

The County of San Bernardino exhibited approximately the same rate of turnover

(10%) as the overall Inland Empire region.

Renewable Energy employers reported the highest demand (18%), about one thirdof which is accounted for by turnover. The Recession Resistant cluster had 10%demand, also largely driven by turnover.

Employers in the Renewable Energy and Recession Resistant industry clustersreported a fairly low 3% and 1% respectively of all surveyed occupations as currentlyopen.

The median starting salary for experienced employees was similar for the

Renewable Energy ($16/hour) and Recession Resistant ($15/hour) industry clusters.

Employers in the Recession Resistant industry cluster reported the longest time tofill open positions for non-experienced employees.

As compared to the overall Inland Empire region, employers in the two targetedindustry clusters required more work experience on average than in the overallregion, with the employers in the Recession Resistant cluster most commonlyreporting a requirement of 1 to under 2 years, and the Renewable Energy clustermost commonly requiring 2 to under 4 years.

The most commonly reported preferred education level for all regions and industryclusters was High school/GED. The Renewable Energy cluster had the greatestproportion of surveyed occupations with this preferred education level (70%),almost doubling the proportion in the Recession Resistant cluster (36%).

The Recession Resistant cluster had the greatest proportion of occupations forwhich employers reported requiring a Ba chelors Degree or higher (28%) orLicense/Certification (23%), indicating a higher proportion of occupations for whichspecialized training or education is seen as necessary.


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OCCUPATIONAL High-growth occupations for the Recession Resistant cluster were typified by health

and social services occupations.

High-growth occupations for the Renewable Energy cluster were characterized byproduction and engineering occupations.

For the overall region, occupations with the highest turnover tended to be from theServices industry.

Employers in the Recession Resistant cluster reported high turnover rates for manyvocational level occupations.

For the Recession Resistant cluster, many of the occupations with the highest

proportion of current openings were those that could benefit from local certificationor other types of vocational training programs.

BUSINESSSPECIFIC A similar proportion of employers for both industry clusters reported plans to

expand or hire in the next 12 months (15% to 16%).

2% or less of employers reported plans to downsize, close, or relocate outside of theCounty.

The most commonly reported reason for anticipated relocating, downsizing orclosing was declining sales (41%), followed by availability of capital or credit(14%), and taxes (13%).

The most commonly reported possible aids to business expansion were additionalemployees, and new/expanded facilities.

The most commonly reported key concern or challenge for businesses wasdeclining sales followed by cost of employee benefits, and taxes.

20% of surveyed employers reported they had no concerns or challenges.

When asked to report why they brought their business to Riverside or SanBernardino County, the most common response was location.

10% of surveyed businesses reported they engaged in international trade, and 43%of those employers reported they both import and export materials internationally.


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15% of employers were very familiar with energy rebate and/or incentiveprograms offered by their local utility company, and a further 36% of employerswere somewhat familiar with them.

Of a list of local utilities programs, employers most commonly reported participatingin the lighting program.

54% of employers reported they had not participated in any local utility program. Alarge proportion of these employers reported the reason as either did not owntheir building, or lacked information regarding program options.

Businesses in the Health Care industry in San Bernardino County most commonlyreported that lack of information on the Health Care Bill and how it affects theircompany was an issue or concern.

Businesses in the Transportation industry in San Bernardino County most commonlyreported that AB32 requirements and availability of qualified workers were issues

or concerns.


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DETAILEDSURVEYRESULTS

REGION AND INDUSTRY

GROWTH Surveyed businesses were asked to report their current number of employees, and thenumber of employees projected in 12 months. This information was used to calculate a

relative projected growth rate 4 for12 months from the survey. Asshown below, the Renewable Energycluster projected the greatestgrowth at 6%, with the RecessionResistant cluster projected to grow5%. The projected growth rate forSan Bernardino County was 2%, andthe region as a whole was 5%.

T URNOVER Surveyed businesses were asked to report the annual turnover for each occupationsurveyed. This information aggregated by region and industry is presented below. As

shown, businesses in theRenewable Energy cluster reportedthe highest overall level of annualturnover (12% of employeesreplaced yearly). Employers in theRecession Resistant clusterreported lower turnover at 7%.The County of San Bernardinoexhibited approximately the samerate of turnover (10%) as theoverall Inland Empire region.

4 Projected relative growth = (number of employees in 12 months number of employees now)/numberof employees now .


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DEMAND A relevant indicator of the staffing challenges related to specific industries and occupationscan be provided by Demand. Demand provides an estimate of the percentage of workersthat will need to be hired during a 12-month period due to both growth AND turnover.Demand is calculated by starting with projected growth, adding in annual turnover, anddividing by the number currently employed. It essentially provides a projected growth ratemodified by turnover rates.

The figure below displays Demand split into growth and turnover components. Forexample, the overall Inland Empire region has a 15% demand rate, comprised of 5% growth

and 10% turnover.

Of the targeted clusters,Renewable Energyemployers reported thehighest demand (18%),

about one third of which isaccounted for by turnover.The Recession Resistantcluster had 10% demand,also largely driven byturnover.

OPENINGS Current openings are calculated by determining the percentage of staffed positions that arecurrently vacant for each surveyed employer. The total percentage of current openings

aggregated over targetedregions and industries isdisplayed in the figure toleft. As shown, the overallInland Empire region has5% of all surveyedoccupations reported ascurrently open. Of theclusters, Renewable Energy

and Recession Resistantreported 3% and 1%respectively of all surveyedoccupations as currentlyopen.


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$10.00

$10.00

$10.00

$8.00

$15

$15

$16

$10

Inland Empire

Recession Resistant

Renewable Energy

San Bernardino

Median Hourly Wages

Experienced

Non-Experienced

32

43

32

30

44

42

45

37

Inland Empire

Recession Resistant

Renewable Energy

San Bernardino

Days to Hire Qualified Employees

Experienced

Non-Experienced

MEDIAN W AGES Starting median hourly wage information by region and cluster is displayed in the figurebelow. As shown, the two targeted clusters and the overall Inland Empire region havesimilar median salaries for experienced and non-experienced newly hired employees. TheCounty of San Bernardino has markedly lower median salaries for both categories, with thegap especially wide for experienced employees.

DIFFICULTY F INDING E MPLOYEES An effective indicator of laborscarcity is the average time ittakes an employer to fill an openposition. The longer it takes abusiness to fill an open position(harder to find), the greater therelative labor scarcity. Thefigure below displays the

average number of days to fillopen positions with qualifiedemployees by industry for bothexperienced, and non-experienced employees(because labor scarcity is relatedto the amount of job experiencerequired).

As shown, over all surveyedemployers in the Inland Empire

region, it takes an average of 44days to fill a vacancy for anexperienced employee, and 32days for a non-experiencedemployee. Of the targetedclusters, Renewable Energydisplays a profile similar to theoverall region. However,Recession Resistant employersreported taking almost as longto find a non-experienced newworker as an experienced newhire. This is possibly due toinherent differences in the

types of occupations (andassociated skill levels), typically employed by the two industries. Higher average times tofind and hire non-experienced employees is often indicative of a skill or labor shortage inkey areas. Due to the wide variation of occupations employed by these industries, theanalysis of scarcity at the occupational level (versus industry) in following sections will revealfurther details of possible skill and/or labor shortages.


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REQUIREDW ORK E XPERIENCE Surveyed employers were asked to report the work experience required for each surveyedoccupation. The table below shows the most commonly reported responses aggregated bytargeted industry and region. For the overall region, the most commonly required workexperience level was none. However, the two targeted industry clusters required moreexperience on average, with the employers in the Recession Resistant cluster mostcommonly reporting a requirement of 1 to under 2 years, and the Renewable Energycluster requiring 2 to under 4 years.

Cluster/Region Required Work Experience% of occupations with

this responseInland Empire None 30Recession Resistant 1 to under 2 years 42Renewable Energy 2 to under 4 years 33San Bernardino None 54

Most commonly required level of work experience by cluster/region

The figure below displays the percentage of occupations for each industry that required nowork experience. As compared to the overall Inland Empire region, employers in the Countyof San Bernardino had the greatest proportion of surveyed occupations requiring noprevious experience (54%). The two targeted clusters had smaller proportions of surveyedoccupations requiring no work experience, indicating higher skill jobs generally associatedwith commonly employed occupations.


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P REFERREDE DUCATION LEVEL Surveyed employers were asked to report the preferred education level required for eachsurveyed occupation. The table below shows the most commonly reported responseaggregated by industry. The most commonly preferred education level for all regions andclusters was High school/GED. The Renewable Energy cluster had the greatest proportionof surveyed occupations with this preferred education level (70%), almost doubling the

proportion in the Recession Resistant cluster (36%).

Cluster/Region Preferred Education Level% of occupations with

this responseInland Empire High school/GED 30Recession Resistant High school/GED 36Renewable Energy High school/GED 70San Bernardino High school/GED 64

Most commonly required education level by cluster/region

The figure below displays the percent of occupations for each industry that required at leastsome college or license/certification or more (combined up through advanced degree). TheRecession Resistant cluster had the greatest proportion of occupations for which employersreported requiring a Bachelors Degree or higher (28%), or License/Certification (23%), indicating a higher proportion of occupations for which specialized training or education isseen as necessary.


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H IRING METHOD Surveyed employers were asked to report the most common hiring method used to hireeach surveyed occupation. The table below shows the most commonly reported responseaggregated by industry. The most commonly reported hiring method for most industrieswas Referrals/Word of Mouth . A higher than normal proportion of hiring through referralsor word of mouth can be indicative of a slower job economy and a buyer s market for labor.

Word of job openings quickly passes to unemployed friends and former co-workersproviding a pool of qualified applicants without the need for outside advertising.

Cluster/Region Most Common Hiring Method% of occupations with

this responseInland Empire Referrals/Word of Mouth 62Recession Resi stant Referral s/Word of Mouth 55Renewable Energy Referrals/Word of Mouth 75San Bernardino Referrals/Word of Mouth 44

Most commonly reported hiring method by cluster/region


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OCCUPATIONAL ANALYSES5 During the survey process,businesses were asked to reportwhich occupations they currentlystaffed, and information wascollected on as many of theseoccupations as possible. For eachsurveyed occupation, questionswere asked regarding current andfuture staffing, wages, hiring,benefits, and other relevantoccupation level information. Thefollowing analyses display the topoccupations for each category foreach targeted region and cluster.Further occupational information

is available through the InteractiveUSWorks Web Application and theelectronic database provided asdeliverables to this project.

P ROJECTEDGROWTH Projected relative growth 6 foroccupations in the targetedregions and clusters are shown inthe table to right.

The growth occupations for theRecession Resistant cluster aretypified by health and socialservices occupations. Growthoccupations for the RenewableEnergy cluster are characterizedby production and engineeringoccupations.

5 For each occupation a minimum of 5 businesses were required to be surveyed in order to calculategrowth trends. A total of 187 occupations fulfilled this criterion.6 Projected relative growth = (number of employees in 12 months number of employees now)/numberof employees now .


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OCCUPATIONTurnover

Rate

Property Managers 49%Fast Food Cooks 48%Engineering Managers 46%Heavy and Tractor-Trai ler Truck Drivers 39%Butchers and Meat Cutters 38%Merchandi se Displayers and Window Trimmers 37%Route Sales Workers 30%Room Service Servers 30%Construction Managers 29%Construction Heavy Equipment Operators 28%

Personal and Home Care Aides 20%Foremen of Production and Operating Workers 14%Certifi ed Nursing Assi stants 14%

Clinical , Counseling, and School Psychologists 13%Ambulance Drivers and Attendants (Except Emergency Medical Tec 13%Receptionists (and Information Clerks) 13%Nursing Aides, Orderlies, and Attendants 12%Computer Programmers 11%Physician Assistants 11%Home Health Aides 11%

Engineering Managers 50%Construction Heavy Equipment Operators 41%Heavy and Tractor-Trai ler Truck Drivers 40%Construction Managers 31%Computer and Information Systems Managers 31%

Counter and Rental Clerks 24%Sheet Metal Workers 23%Industrial Machinery Mechanics 23%Human Resources Managers 23%Electrical Engineers 22%

Route Sales Workers 63%Property Managers 52%Fast Food Cooks 48%Butchers and Meat Cutters 38%Merchandi se Displayers and Window Trimmers 37%Foremen of Helpers, Laborers, and Materia l Movers 35%Vehicl e Salespersons 26%Food Cooking Machine Operators and Tenders 26%Short Order Cooks 26%Janitors and Cleaners (Except Maids and Housekeeping Cleaners) 26%

Inland Empire

Recession Resistant

Renewable Energy

San Bernardino Industry Cluster

ANNUAL T URNOVERThe table to right shows theoccupations with the highestreported turnover rates. For theoverall region, occupations withthe highest turnover tended to befrom the Services industry.However, the targeted industryclusters have distinctly differentoccupational lists, characteristicof their varying compositions.For example, employers in theRecession Resistant clusterreported high turnover rates for

many vocational leveloccupations. Surprising in theRenewable Energy list is thepresence of numerousmanagement positions.


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OCCUPATION Demand Growth Turnover

Social Workers 113% 110% 3%Sheet Metal Workers 58% 36% 22%Fast Food Cooks 55% 7% 48%Engineering Managers 54% 8% 46%Property Managers 50% 1% 49%

Heavy and Tractor-Trailer Truck Drivers 40% 1% 39%Electrical Engineers 40% 19% 21%Construction Heavy Equi pment Operators 39% 11% 28%Butchers and Meat Cutters 38% 0% 38%Merchandise Displayers and Window Trimmers 37% 0% 37%

Social Workers 176% 174% 2%Foremen of Production and Operating Workers 36% 22% 14%Personal and Home Care Aides 28% 8% 20%Cli nical, Counsel ing, and School Psychologi sts 26% 13% 13%Ambul anc e Dri ver s a nd Attenda nts (Exc ept Emergenc y Medi ca l Tec hs ) 2 5% 1 2% 1 3%Chiropractors 20% 20% 0%Health Educators 18% 14% 4%Social and Community Service Managers 17% 12% 5%Nursing Aides, Orderlies, and Attendants 15% 3% 12%Computer Programmers 15% 4% 11%

Retail Sales Managers 67% 50% 17%Engineering Managers 59% 9% 50%Sheet Metal Workers 59% 36% 23%Construction Heavy Equi pment Operators 55% 14% 41%Heavy and Tractor-Trailer Truck Drivers 41% 1% 40%Electrical Engineers 41% 19% 22%Ja ni tors a nd Cl ea ners (Exc ept Ma ids a nd Hous ekeepi ng Cl ea ners ) 39 % 3 5% 4%I ns pectors , Testers , Sorters, Sampl ers, and Wei ghers 39% 39% 0%Landscaping and Groundskeeping Workers 35% 23% 12%Construction Managers 34% 3% 31%

Social Workers 113% 110% 3%

Fast Food Cooks 55% 7% 48%Engineering Managers 54% 8% 46%Property Managers 50% 1% 49%Heavy and Tractor-Trailer Truck Drivers 40% 1% 39%Construction Heavy Equi pment Operators 39% 11% 28%Butchers and Meat Cutters 38% 0% 38%Merchandise Displayers and Window Trimmers 37% 0% 37%Vehicle Salespersons 34% 8% 26%Route Sales Workers 33% 3% 30%

Recession Resistant

Renewable Energy


Inland Empire

DEMAND Demand is a function of projected growth plus occupational turnover. The table belowshows the occupations with the highest reported demand rates, and also provides growthand turnover rates as an indicator of the components of the demand.

As shown, the demand for many of the highest demand occupations in the Inland Empire is

largely driven by turnover. An excepti on to this is the occupation Social Workers withlargely growth driven demand. For both of the targeted industry clusters the list ischaracterized by occupations with growth-driven demand.


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OCCUPATION%

Openings

Social Workers 52%Sheet Metal Workers 26%Materia ls Engineers 24%Ins pectors, Testers, Sorters, Samplers, and Weighers 23%Fina ncia l Managers, Branch Or Department 21%Plumbers, Pipefitters, and Steamfitters 17%Chiropractors 17%Electrical Engineers 16%Insula tion Workers (Floor, Ceil ing, and Wall ) 16%Civil Engineers 16%

Social Workers 63%Foremen of Production and Operating Workers 18%Chiropractors 17%Clinica l, Counseli ng, and School Psychologists 12%Health Educators 12%Ambula nce Drivers and Attendants (Except Emergency Medica l Techs) 11%Socia l and Community Service Managers 11%Physical Therapis ts 9%Social and Human Service Assistants 8%Medica l Records and Health Information Technic ia ns 8%

Retail Sales Managers 33%Ins pectors, Testers, Sorters, Samplers, and Weighers 28%Sheet Metal Workers 27%Janitors and Cleaners (Except Maids and Housekeeping Cleaners) 26%Purchas ing Agents and Buyers (Farm Products) 20%Landsca ping and Groundskeeping Workers 19%Production, Pla nning, and Expediting Clerks 18%Plumbers, Pipefitters, and Steamfitters 17%Electrical Engineers 16%Order Clerks 16%

Secretaries (Except Legal, Medica l, and Executive) 22%Fina ncia l Managers, Branch Or Department 21%Team Assemblers 19%Security Guards 15%Sales Managers 13%Tire Repairers and Changers 13%Helpers of Ins tall ation, Maintenance, and Repair Workers 11%Computer and Information Systems Managers 9%Vehicl e Sal espersons 7%Desk Clerks 7%

Inland Empire

Recession Resistant

Renewable Energy


OPENINGS

The table to right shows theoccupations with the highestreported percentage of positions

reported as currently open.

As with the growth and demandprojections, for both the overallregion and the RecessionResistant cluster, the largestproportion of current openingswas for the occupation SocialWorkers with 52 % of all currentlystaffed occupations reportedly ascurrently open in the Inland

Empire region.

It is notable that for the RecessionResistant cluster, many of theoccupations with the highestproportion of current openingsare those that can benefit fromlocal certification or other typesof vocational training programs.The Renewable Energy cluster hasmany open positions for manyentry level positions.


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T IME -TO-F ILLOCCUPATIONAL OPENINGS The table below shows the average number of days to fill an opening for the hardest to findoccupations for both experienced and non-experienced employees. For experiencedemployees for all regions and occupations the list is topped by occupations requiring moreextensive training or experience. However, many of the hardest to find occupations fornon-experienced employees required extensive training as well, providing evidence of

possible training gaps. It is also notable many of the occupations appear on both lists whichis indicative of possible skill shortages across the spectrum of experience levels.

OCCUPATION

Avg time tofill openings

in days OCCUPATION

Avg time tofill openings in

days

Cutters and Trimmers of Meat, Poultry, and Fish 124 Dietitians and Nutritionists 205Occupational Therapists 118 Environmental and Health Scientists and Specialists 170Environmental and Health Scientists and Specialis ts 116 Treasurers, Controllers, And Chief Financial Officers 150Education Administrators (Postsecondary) 113 Dental Laboratory Technicians 120School Administrators (Elementary and Secondary) 112 Counselors 120Butchers and Meat Cutters 112 Pharmacists 116Electrical & Electronic Engineering Technicians 108 First-Line Supervisors or Managers of Personal Service Workers 104Mechanical Engineers 102 Cutters and Trimmers of Meat, Poultry, and Fish 102Management Analysts 95 Physicians and Surgeons 99Sa l es Ma na gers 9 1 Phys i ca l Therapi s ts 8 7

Management Analysts 120 Dieti t ians and Nutrit ionists 205Occupational Therapis ts 118 Counselors 170Dental Laboratory Technicians 77 Dental Laboratory Technicians 120Senior Executives (includes Vice Presidents and Chief Executives) 77 Physicians and Surgeons 99Physic ians and Surgeons 77 Physica l Therapis ts 87Physical Therapists 73 Foremen of Production and Operating Workers 86Human Resources Managers 71 Optometri s ts 86Heal th Educators 67 Management Analysts 85General and Operations Managers 66 Registered Nurses (Nurse Practitioners) 73Social and Community Service Managers 65 Occupational Therapists 69

Purchasing Agents and Buyers (Farm Products) 120 Environmental and Health Scientists and Specialists 279Environmental and Health Scientists and Specialis ts 113 Route Sales Workers 88Electrical & Electronic Engineering Technicians 108 Construction and Building Inspectors 82Mechanical Engineers 100 Shop Supervisors or Field Supervisors 81Sales Managers 94 Mechanica l Engineers 69Fi rs t-Li ne Supervi sors o r Ma na gers of Trans a nd Ma ter i al -Movi ng 9 3 Sa l es En gi neers 6 2Engineering Managers 87 Customer Service / Call Center Representatives 62Senior Executives (includes Vice Presidents and Chief Executives) 84 Industrial Machinery Mechanics 62Inspectors, Testers, Sorters, Samplers, and Weighers 80 Parts Salespersons 56Electronics Engineers (Except Computer) 79 Industrial Production Managers 53

Cutters and Trimmers of Meat, Poultry, and Fish 124 Treasurers, Controllers, And Chief Financial Officers 279Education Administrators (Postsecondary) 113 Physicians and Surgeons 143School Administrators (Elementary and Secondary) 112 Dental Laboratory Technicians 120Butchers and Meat Cutters 112 First-Line Supervisors or Managers of Personal Service Workers 120

Mechanica l Engineers 109 Pharmacists 116Management Analysts 99 Cutters and Trimmers of Meat, Poultry, and Fish 102Engineering Managers 96 Optometri s ts 95Foremen of Production and Operating Workers 92 Dentists 85Dental Laboratory Technicians 92 Bill and Account Collectors 84Industrial Machinery Mechanics 92 Production, Planning, and Expediting Clerks 83

NON-EXPERIENCED EMPLOYEES

Inland Empire

Recession Resistant

Renewable Energy

San Bernardino Industry C luster

Inland Empire

Recession Resistant

Renewable Energy


EXPERIENCED EMPLOYEES


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W AGESThe tables below display the occupations with the highest median starting salary forexperienced and non-experienced employees. Many of the occupations listed forexperienced employees require extensive education and/or experience. This is especiallytrue for the two targeted clusters.

However, it is notable that some of the relatively higher paying occupations for bothexperienced and non-experienced employees required only a technical degree or similarvocational training (or less).

OCCUPATION Hourly wage OCCUPATION Hourly wage

Occupational Therapists $50.00 School Administrators (Elementary and Secondary) $38.62Dental Hygienists $43.75 Dental Hygienists $37.50School Administrators (Elementary and Secondary) $40.87 Physical Therapists $28.00Optometrists $38.46 Registered Nurses (Nurse Practitioners) $28.00Foremen of Production and Operating Workers $36.54 Construction and Building Inspectors $24.04Construction and Building Inspectors $36.06 Engineering Managers $24.04Physical Therapists $35.00 Marketing Managers $24.04Civil Engineers $33.65 First-Line Supervisors or Managers of Non-Retail Sales Workers $20.00Architectural and Civil Drafters $33.65 Carpenters $20.00Computer and Information Systems Managers $32.33 Elementary and Middle School Teachers $19.33

Occupational Therapists $50.00 Dental Hygienists $37.50Foremen of Production and Operating Workers $48.08 Physical Therapists $28.00Dental Hygienists $43.75 Registered Nurses (Nurse Practitioners) $28.00Optometrists $38.46 Licensed Practical and Licensed Vocational Nurses $19.50Physical Therapists $35.00 Social and Community Service Managers $18.51Regis tered Nurses (Nurse Practitioners) $32.00 Bookkeeping, Accounting, and Auditing Clerks $14.42Computer Programmers $28.85 General Office Clerks $10.58Health Educators $28.75 Administrative Services/Office Managers $10.00Legal Secretaries $25.48 Secretaries (Except Legal, Medical, and Executive) $10.00Accountants $24.04 Insurance Clerks (Claims and Policy Processing) $10.00

Construction and Building Inspectors $36.06 Construction and Building Inspectors $24.04Accountants $33.65 Carpenters $20.00Civil Engineers $33.65 First-Line Supervisors or Managers of Non-Retail Sales Workers $20.00Architectural and Civil Drafters $33.65 Construction Managers $19.23Computer and Information Systems Managers $33.65 Civil Engineers $16.83Carpenters $33.65 Architects (Except Landscape and Naval) $16.83Mechanical Engineers $31.25 General and Operations Managers $16.00Engineering Technici ans (Except Drafters, Electrica l, or Electronic) $31.25 Purchasi ng Agents (Except Wholesal e, Retail , and Farm Products) $15.00Cement Masons and Concrete Finishers $29.00 Sales Representatives $14.45Engineering Managers $28.85 Heavy and Tractor-Trail er Truck Drivers $14.00

Dental Hygienists $43.75 School Administrators (Elementary and Secondary) $38.62School Administrators (Elementary and Secondary) $40.87 General and Operations Managers $20.00Engineering Managers $40.44 Purchasing Agents (Except Wholesale, Retail, and Farm Products) $20.00Optometrists $37.50 Elementary and Middle School Teachers $19.33Physical Therapists $35.00 Construction Managers $19.23Computer and Information Systems Managers $33.65 Accountants $19.23Civil Engineers $33.65 Social and Community Service Managers $19.23Electricians $30.00 Licensed Practical and Licensed Vocational Nurses $18.50Registered Nurses (Nurse Practitioners) $29.43 Billi ng and Posting Clerks $16.83Computer Programmers $28.85 Advertising and Promotions Managers $14.42

MEDIAN STARTING SALARY: NON-EXPERIENCED EMPLOYEES

Inland Empire

Recession Resistant

Renewable Energy


MEDIAN STARTING SALARY: EXPERIENCED EMPLOYEES

Inland Empire

Recession Resistant

Renewable Energy



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OCCUPATION %

Environmental and Health Scientists and Specia li sts 84Mobil e Heavy Equipment Mechanics (Except Engines) 84Chiropractors 84Electronics Engineers (Except Computer) 83Education Admini strators (Postsecondary) 80Architects (Except Landscape and Naval) 77Machi nery Maintenance Worker 74Treasurers, Controll ers, And Chief Financi al Officers 74Senior Executives (incl udes Vice Presidents and Chief Executives) 74

School Adminis trators (Elementary and Secondary) 72

Senior Executives (incl udes Vice Presidents and Chief Executives) 91Chiropractors 84Heal th Educators 57Cli nical , Counseling, and School Psychologis ts 57Counselors 57General and Operations Managers 54Paral egals and Legal Assis tants 50Computer Progra mmers 50Human Resources Managers 50Physici ans and Surgeons 50

Environmental and Health Scientists and Specia li sts 100Mobil e Heavy Equipment Mechanics (Except Engines) 84Computer and Information Systems Managers 83Electronics Engineers (Except Computer) 80Treasurers, Controll ers, And Chief Financi al Officers 80Electrical & Electronic Engineering Technici ans 80Machi nery Maintenance Worker 78Industria l Production Managers 78Architects (Except Landscape and Naval) 75Marketing Managers 72

Education Admini strators (Postsecondary) 80Machi nery Maintenance Worker 80Treasurers, Controll ers, And Chief Financi al Officers 80

Electronics Engineers (Except Computer) 80Engineering Managers 79Mobil e Heavy Equipment Mechanics (Except Engines) 78School Adminis trators (Elementary and Secondary) 72Computer and Information Systems Managers 72Mechanica l Engineers 72Senior Executives (incl udes Vice Presidents and Chief Executives) 72

Minimum Required Work Experience: Percent Requiring2 Years or More Experience

Inland Empire

Recession Resistant

Renewable Energy


M INIMUM REQUIREDW ORK E XPERIENCE

Surveyed employers were asked toreport the minimum requiredwork experience for each surveyedoccupation. The available answerchoices were: None; Under 3months; 3 to under 6 months; 6months to under 12 months; 1 tounder 2 years; 2 to under 4 years;4 to under 10 years; 10 years ormore.

The table to right lists theoccupations with the greatestproportion of employers requiring2 or more years of experience(last three answers combined),and those requiring no workexperience. For the InlandEmpire, the occupation with thegreatest proportion of surveyedemployers reporting they requiredtwo or more years of experiencewas Environmental and Health

Scientists and Specialists , with84% of employers reporting theyrequired this experience levelwhen they staff the occupation.

The list is heavily represented byoccupations with skills acquiredthrough work experience, such assupervisory roles whereknowledge of skills and processesof supervised workers is essential.

Other occupations for whichemployers prefer higher levels of work experience are those wherespecialized knowledge acquiredthrough experience can beespecially valuable.


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OCCUPATION %

Fast Food Counter Workers 88Hosts and Hostesses 82Food Cooking Machi ne Operators and Tenders 80Buspersons and Barbacks 80Ambulance Dri vers a nd Attendants (Except Emergency Medical Tec 75Dishwashers 69Janitors and Cleaners (Except Maids and Housekeeping Cleaners) 66Cashiers 65Vehic le and Equipment Cleaners 64Freight, Stock, and Materia l Movers (Hand Laborers) 63

Maids and Housekeeping Cleaners 100Ambulance Dri vers a nd Attendants (Except Emergency Medical Tec 75

Janitors and Cleaners (Except Maids and Housekeeping Cleaners) 70Foremen of Production and Operating Workers 44Physical Therapis ts 43Nursing Aides, Orderli es, and Attendants 43Physical Therapis t Assis tants and Aides 38Receptionis ts (and Information Clerks) 36Home Health Aides 33Certifi ed Nursi ng Assi stants 33

Weighers, Measurers, Checkers, and Samplers, Recordkeepers 60Landsca ping and Groundskeeping Workers 60Vehic le and Equipment Cleaners 56Freight, Stock, and Materia l Movers (Hand Laborers) 55Hand Packers and Packagers 55Team Assemblers 53Cutting, Punching, and Press Machi ne Operators (Metal) 50Janitors and Cleaners (Except Maids and Housekeeping Cleaners) 50Order Clerks 42Counter and Rental Clerks 40

Fast Food Counter Workers 88Hosts and Hostesses 82Food Cooking Machi ne Operators and Tenders 80Buspersons and Barbacks 80Vehic le and Equipment Cleaners 75Freight, Stock, and Materia l Movers (Hand Laborers) 70Janitors and Cleaners (Except Maids and Housekeeping Cleaners) 70

Cashiers 69Dishwashers 69Order Clerks 67

Minimum Required Work Experience: Percent Requiring NO Work Experience

Inland Empire

Recession Resistant

Renewable Energy


Occupations requiring no workexperience (table to right) are

typified by low skill/wagepositions. They are heavilyrepresented with jobs commonlyfound in the Retail and Servicesindustries. The RecessionResistant cluster represents anotable exception to this generalrule, with many Health Servicesoccupations represented in thelist. These occupations generallyrequire a technical or vocationaldegree, and with no workexperience often required, theyrepresent promising posteducation employmentopportunities.


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OCCUPATION %

Pharmacy Technicians 100Elementary and Middle School Teachers 100Dental Hygienists 100Occupational Therapists 100Chiropractors 100Regis tered Nurses (Nurse Prac titioners) 98Physical Therapists 96Heavy and Tractor-Trail er Truck Drivers 93Health Educators 93Pharmacists 92

Dental Hygienists 100Occupational Therapists 100Chiropractors 100Clinica l, Counseling, and School Psychologists 100Regis tered Nurses (Nurse Prac titioners) 98Physical Therapists 96Health Educators 93Optometrists 91Licensed Practi cal and Licensed Vocational Nurses 89Dietitians and Nutritionists 89

Environmental and Health Scientists and Special is ts 100Heavy and Tractor-Trail er Truck Drivers 92Cargo and Freight Agents 88Electricians 87

Civi l Engineers 77Electrical Engineers 71Heating, Air Conditioning, and Refrigeration Mechanics and Instal 64Landscape Architects 60Truck Drivers, Light Or Delivery Services 58Construction and Buildi ng Ins pectors 56

Pharmacy Technicians 100Elementary and Middle School Teachers 100Dental Hygienists 100Health Educators 100Regis tered Nurses (Nurse Prac titioners) 100Dental Assistants 96

Physical Therapists 92Licensed Practi cal and Licensed Vocational Nurses 92Civi l Engineers 92Heavy and Tractor-Trail er Truck Drivers 92

Recession Resistant

Renewable Energy


Inland Empire

Percent Requiring Occupational Cer tification or License

OCCUPATIONAL C ERTIFICATION Surveyed employers were asked toreport if they required anoccupational license or certificationfor each surveyed occupation. Thetable to right displays theoccupations with the highestpercentage of surveyed employerswho reported they required anoccupational license orcertification, and the occupationsfor which no license or certificationwas typically required.

As would be expected, the list of those requiring a license orcertification is heavily representedby occupations in the HealthServices industry.


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OCCUPATION %

Optometrists 100Education Admini strators (Postsecondary) 100Teacher Assi stants 100School Admini strators (Elementary and Secondary) 99Counselors 99Elementary and Middle School Teachers 93Lawyers 91Engineering Technici ans (Except Drafters, Electrical , or Electronic) 90Physic ians and Surgeons 90Civil Engineers 89

Optometrists 100Counselors 100Accountants 92Senior Executives (incl udes Vice Presidents and Chief Executives) 91Lawyers 90Physic ians and Surgeons 90Marketing Managers 88Health Educators 85Chiropractors 83Management Analys ts 80

Marketing Managers 93Engineering Technici ans (Except Drafters, Electrical , or Electronic) 90Treasur ers, Controllers, And Chief Financi al Officers 90Civil Engineers 89Engineering Managers 87Architectural and Civil Drafters 87Environmental and Health Scientists and Speciali sts 80Landscape Architects 80Architects (Except Landscape and Naval) 80Electroni cs Engineers (Except Computer) 80

Optometrists 100Electroni cs Engineers (Except Computer) 100Counselors 100Education Admini strators (Postsecondary) 100Engineering Technici ans (Except Drafters, Electrical , or Electronic) 100

Teacher Assi stants 100School Admini strators (Elementary and Secondary) 99Elementary and Middle School Teachers 93Senior Executives (incl udes Vice Presidents and Chief Executives) 93Lawyers 92

Renewable Energy


Preferred Education Level: Percent Requiring at Least Some College (upthrough Graduate Degree)

Inland Empire

Recession Resistant

P REFERREDE DUCATION LEVEL For each surveyed occupationemployers were asked what level of education was preferred. Theavailable answer choices were:None; High school/GED; License /Certification; Some college;Associate degree; BS/BA; Graduatedegree or above.

The table to right lists theoccupations with the greatestproportion of employers preferringat least some college up through

graduate degree (not includinglicense and certification programs).Not surprisingly, employers preferhigher education levels for teachersas well as health servicesoccupations that require more thana vocational level education.


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BUSINESS SPECIFICQ UESTIONS In order to gather the information necessary to make planning decisions and assistbusinesses, surveyed businesses were asked a series of questions designed to assess suchareas as plans to expand or downsize (and reasons for doing so), concerns and challengesfor doing business, barriers to growth, and knowledge of available energy programs.

P LANS TOE XPAND /D OWNSIZE /R ELOCATE As shown in the figure below, the great majority of surveyed businesses in all clusters andregions projected no changes in the next 12 months. A relatively small proportion of employers reported plans to downsize or relocate. At least 15% of employers reportedplans to expand or hire. 7

7 Businesses were permitted to choose more than one answer.

67%

10%

2%

18%

0%

2%

60%

15%

1%

16%

6%

2%

61%

18%

1%

15%

4%

1%

None / No change

Dont know

Closing

Expansion

Downsizing

Relocation outside of the Region

In the next twelve 12 months, does your company anticipate...

Recession Resistant

Renewable Energy

San Bernardino


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REASONS FOR DOWNSIZING OR C LOSING

Businesses that reported they anticipated relocating, downsizing or closing in the next 12months (85 businesses) were asked to choose from a list of possible reasons for theiranticipated action. As shown, the most commonly reported reasons were declining sales(41%), followed by availability of capital or credit (14%), and taxes, (13%) 8 .

.



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H ELP W ITH E XPANSION Businesses that stated they would be expanding in the next 12 months were asked to reportwhat resources or aid would help with their expansion. Of the 469 surveyed businessesreporting plans to expand, 60% cited a ne ed for additional employees , and 36% reported aneed for new/expanded facilities or equipment. 9


5%

5%

4%

16%

22%

24%

25%

29%

36%

36%

60%

Other

Dont know

None

Information on Tax Incentives for Hiring

New Technology

Access to Capital or Credit

Increased Visibility in the Marketplace

Staff Development / Training

Equipment

New / Expanded Facili ties

Additional employees

If expanding, which of the following do you expect to need?


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K EY C ONCERNS AND C HALLENGESK EY C ONCERNS AND C HALLENGES Surveyed employers were asked which of a list of issues represented key concerns or

challenges.10

The most commonly provided response wasdeclining sales with 31

% of employers reporting this area as a concern. This was followed by cost of employeebenefits (26%), and taxes (19%). 20% of surveyed businesses reported they had noconcerns or challenges.


20%

11%

7%

2%

4%

4%

4%

4%

5%

5%

8%

9%

12%

13%

16%

19%

26%

31%

None

Don't Know

Other

Access to Suppliers

Business affected by Foreign Trade

Permitting and Zoning

Expiring or Lack of Incentives

Transportation Issues

Insufficient Room for Expansion

Availability of new Incentives

Lack of Skilled or Qualified Workforce

Ability to Retain Employees

Utility Costs (Gas, Electricity, Water)

Availability of Capital or Credit

High Worker Compensation

Taxes

Costs of Employee Benefits (Heal thcare, etc.)

Declining Sales

Which of the following business issues are currently key concerns orchallenges for your business?


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REASONS FOR MOVING TO RIVERSIDE ORS AN BERNARDINO C OUNTY Surveyed employers were asked to report the reasons they initially moved to Riverside orSan Bernardino County. As shown i n the figure below, location was the most commonlyprovided answer, with employers in both Counties equally likely to report this reason.Employers in Riverside County were most likely to report moving to their County for friendsand family, or quality of life than employers in San Bernardino County.

26%

8%

2%

2%

3%

3%

3%

4%

6%

10%

11%

17%

44%

19%

9%

2%

1%

2%

3%

4%

4%

11%

17%

9%

17%

44%

Dont Know

Other

Utility Costs

Proximity to Quality Univer sities andEducation

Quality Workfor ce

Ample Supply of Labor

Proximity to Supplies

Business Incentives

Quality of Life

Friends and Family

Cost of Land/Facilities

Proximity to Customers

Location

Which of the following reasons brought your business to(Riverside County) or (San Bernardino County)?

Riverside County

San Bernardino County


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I NTERNATIONALT RADE Surveyed businesses were asked if their business engaged in international trade. As shown,10% of surveyed businesses reported they did engage in this type of trade.

Those 10% of businesses reporting they did engage in International Trade were asked afollowup questions to determine the type. As shown, 43% of employers engaged inInternational Trade reported they both import and export materials internationally.

Don't know, 9%

No, 80%

Not currentlybut plan to in

the future,(>1%)

Yes, 10%

Is your business engaged in international trade?

Both, 43%

Export goodsand materials,

28%

Import goodsand materials,

27%

If yes, do you import goods and materials,export goods and materials, or both?


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K NOWLEDGE OF E NERGY REBATE AND / OR I NCENTIVE P ROGRAMS Surveyed businesses were asked to rate their knowledge of energy rebate and/or incentiveprograms offered by their local utility company. As shown, 15% of employers were veryfamiliar with these programs, and a further 36% of employers were somewhat familiar with them.

Not Familiar atAll, 47%

SomewhatFamiliar, 36%

Very Familiar,15%

How would you rate your knowledge of energy rebateand / or incentive programs offered by your local utility

companies?


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P ARTICIPATION IN P UBLIC U TILITIESP ROGRAMS Surveyed businesses were asked which of a list of local utility programs they hadparticipated in. Overall, the lighting program was the most commonly reported (23% of employers participating) followed by energy efficient management programs (14%). 54 %of employers reported they had not participated in any program.

3%

4%

7%

12%

14%

23%

54%

Power Generation

New Construction

HVAC

Other

Energy Efficiency Management

Lighting

I have not participated in any localutility programs

Which of the following local util ity programs have you participated in ?

Those 54% of surveyed businesses that had not participated in any programs were asked toreport what reasons kept them from doing so. A large proportion of these employersreported they either did not own their building, or lacked information regarding program

options.

5%

8%

26%

27%

33%

Financial Concerns

Other

Lack of Information regardingprograms or options

Do Not Own the Building

Dont Know

Which of the following have kept you from participating in any of the local utili typrograms?


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I SSUES AND C ONCERNS IN THE H EALTH C ARE I NDUSTRY Businesses in the Health Care industry in San Bernardino County were asked to report whatthey felt were the issues and concerns in their industry.

The most commonly reported issue was l ack of information on the Health Care Bill and howit affects the company (26%). Other concerns were unclear of the Government guidelines(22%), and availability of experienced workers (14%).

21%

20%

5%

9%

11%

11%

14%

22%

26%

Dont know

None

Other

Local Training Programs that providedCertified Workers

Availability of Certified Workers

Implementation of Electronic MedicalRecords Systems

Availability of Expe rienced Workers

Unclear of the Government Guidelines

Lack of information on the Health Care

Bill and How it Affects your Company

Which of the following would you say are the issues or concerns in theHealthcare Industry today?


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RENEWABLE E NERGY C LUSTER Surveyed businesses were asked if they considered their business to be a part of therenewable energy cluster. As shown, 18% of employers reported they were a part of thecluster. As further shown, 23% of those employers who considered themselves a part of therenewable energy cluster were interested in participating in a focus group to betterunderstand the issues and concerns facing the industry.

Yes

18%

No

61%

Dont Know

20%

Would you consider your business as part of theRenewable Energy Cluster?

Yes

23%

No

66%

Dont Know

10%

Would you be interested in participating in a FocusGroup, hosted by the County, to better understand the

issues and concerns facing your industry today?


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SECTION 2: LABOR MARKET CHALLENGES & POTENTIAL WITHIN THE INLAND EMPIRE: AN ERISS SUMMARY REPORT

NARRATIVESUMMARY

The Inland Empire region, which is geographically defined by Riverside and SanBernardino counties in California, would be larger than nine other states including, NewJersey, Massachusetts or Maryland. With a population of 4,142,113 persons, the regionmakes up 11.2 percent of Californias population of nearly 37 million persons. The region isbecoming more diverse than the state as the Inland Empire with 37.9 percent of the regionidentifying as White, compared to 41.5 percent in the state, with U.S. Census data pointingto 46.3 percent of the population identifying themselves as Latino in the region comparedto 37 percent in the state overall. While this diversity reflects a multicultural mosaic, italso poses a long-term workforce challenge as 38.8 percent of the population in RiversideCounty and 39.6 percent of the population in San Bernardino County constitutes non-

native speakers of English speakers, based on the same U.S. Census data.

Like the rest of the nation, the Inland Empire region has been hit hard by the recessionwith an unadjusted September unemployment rate of 14.8 percent that is higher than thenational 9.6 percent average and the state of Californias 12.4 percent rate. Theseunemployment figures, out of a total regional labor supply of approximately 1,768,200workers, are likely to continue to rise with consolidations and reductions in the financialactivities and hospitality industries. A survey of 11,601 employers within the Inland Empireregion was conducted, with 3,358 employers (or 29%) responding. This survey points to amore pessimistic trend toward expansion as 31 percent of employers noted that decliningsales were a current challenge in their business environment and 41 percent of all

employers anticipated downsizing or closing as a result of the poor business climate in thenext twelve months. The financial activities and hospitality industries constitute nearly 25percent of the regions largest 50 employer s, though healthcare employers constitute thelargest share of recession resistant jobs.

Per capital income hovers at $23,539 and median household income is at $57,372,based on 2009 U.S. Census projections, compared statewide per capita income at $29,405and median household income at $61,154. Overall, 12.9 percent of individuals live belowthe poverty line that is on par with the statewide average.

Despite the high growth potential in the healthcare industry with State labor marketprojections suggesting a 40.5 percent increase in the total number of jobs by 2018, thereare difficulties in meeting these labor market demands. First, many of the high growth jobs in healthcare require post- secondary education (often a minimum of an Associatesdegree or higher) and U.S Census data point to a 16.3 percent educational attainment ratefor a Bachelors degree compared to the state rate of 22.4 percent. To complicate matterseven more, the pipeline of candidates for healthcare industry jobs is diminished in the 22.4percent high school dropout rate in the two counties. Second, there is an exodus of workers out of the region where U.S. Census data point to only 55.7 percent of the regionsworkforce working within Riverside or San Bernardino counties and less than 10 percent of


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those employed within the county commuting to the Inland Empire from nearby LosAngeles or Orange counties.

There is potential to make up the shortage, however, with active engagement anddeployment of the 192 training providers in the Inland Empire. While the region isanchored by the University of California, Riverside and California State University, San

Bernardino as well as the Riverside and San Bernardino Community College districts andother private educational institutions and proprietary schools who deliver high-qualityadult and continuing/workforce education, more work must be done to expand thenumber of WIA-eligible training providers as only 64 of these trainers to benefit dislocatedand under-employed workers who bene fit from core and intensive services at the regionsOne-Stop Centers. Further, the capacities of these institutions will require upgrades of classroom space and additional faculty to reduce the backlog of students who wish to entertraining programs for the future high-growth jobs. This capacity expansion will narrow thegap between labor supply and labor demand within the growing Inland Empire region tocreate the areas long -run workforce competitiveness.

I. DEMOGRAPHIC PROFILE Table 1: Breakdown of Population by Race

Category Inland Empire % California %White 1,568,229 38% 15,325,751 41%African-American 292,158 7% 2,159,978 6%Latino 1,920,133 46% 13,681,370 37%Asian 230,910 6% 4,559,739 12%Total 4,143,113 36,961,664

The 2009 U.S. Census estimated 4,143,113 persons or approximately 11 percent of Californias population of nearly 37 million persons lived within the regions 27,269 squaremiles 11. Demographically, the region is predominantly White at 38 percent of thepopulation, as compared to the 41 percent of the state that are Caucasian. Yet the InlandEmpire is significantly more of Latino origin with 46 percent of the population, using thesame 2009 U.S. Census data, compared to the 37 percent in the state overall. At the sametime, the diversity of the region s population is reflected by 7 percent identifying as African-American, compared to 6 percent statewide and a smaller proportion of Asian-Americans at6 percent in the region which is 6 percentage points under the statewide profile of 12percent. 12

Greater than one in three persons over 5 years old in the two counties is a non-nativeEnglish speaker, with 38.8 percent non-native English speakers in Riverside County and 39.6

11 http://quickfacts.census.gov/qfd/states/06/06065.html (Riverside County);http://quickfacts.census.gov/qfd/states/06/06071.html (San Bernardino County). Aggregate calculationsmade by author.12 Ibid.
http://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://quickfacts.census.gov/qfd/states/06/06071.htmlhttp://quickfacts.census.gov/qfd/states/06/06071.htmlhttp://quickfacts.census.gov/qfd/states/06/06071.htmlhttp://quickfacts.census.gov/qfd/states/06/060605.html


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percent non-native speakers in San Bernardino. 13 These percentages, which are aboutdouble the level of non-native English speakers nationally (19.6 percent in the U.S.)

(Totals may not add up due to rounding errors)

Like the rest of the nation, the Inland Empire region has been hit hard by the recession withan unadjusted September unemployment rate of 14.8 percent that is higher than thenational 9.6 percent average and the state of Californias 12.4 percent rate. 14 Theseunemployment figures, out of a total regional labor supply of approximately 1,768,200workers, are likely to continue to rise with consolidations and reductions in the financial

activities and hospitality industries.15

Per capita hovers at $23,539 and median household income is at $57,372, based on 2008U.S. Census projections, compared statewide per capita income at $29,405 and medianhousehold income at $61,154. 16 Overall, 12.9 percent of individuals live below the povertyline that is on par with the statewide average.

Table 3: Income Level s

Category Riverside San Bernardino California

Median Household 58,168 56,575 61,154Per Capita 24,836 22,243 29,405Poverty Rate 12.2% 13.4% 12.9%

13 Ibid.14

http://www.labormarketinfo.edd.ca.gov/cgi/databrowsing/localAreaProfileQSResults.asp?selectedarea=Riverside+County&selectedindex=33&menuChoice=localAreaPro&state=true&geogArea=0604000065&countyName = (Riverside County);http://www.labormarketinfo.edd.ca.gov/cgi/databrowsing/localAreaProfileQSResults.asp?selectedarea=San+Bernardino+County&selectedindex=36&menuChoice=localAreaPro&state=true&geogArea=0604000071&countyName= (San Bernardino County)15 Ibid.16 http://quickfacts.census.gov/qfd/states/06/06065.html (Riverside County);http://quickfacts.census.gov/qfd/states/06/06071.html (San Bernardino County). Aggregatecalculations made by author.

Table 2: Labor Force Populations

Category Region Riverside San Bernardino

Employed 1,506,900 772,200 734,700Unemployed 261,400 139,400 122,000Total 1,768,200 911,500 856,700
http://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://www.labormarketinfo.edd.ca.gov/cgi/databrowsing/localAreaProfileQSResults.asp?selectedarea=Riverside+County&selectedindex=33&menuChoice=localAreaPro&state=true&geogArea=0604000065&countyNamehttp://www.labormarketinfo.edd.ca.gov/cgi/databrowsing/localAreaProfileQSResults.asp?selectedarea=Riverside+County&selectedindex=33&menuChoice=localAreaPro&state=true&geogArea=0604000065&countyNamehttp://www.labormarketinfo.edd.ca.gov/cgi/databrowsing/localAreaProfileQSResults.asp?selectedarea=Riverside+County&selectedindex=33&menuChoice=localAreaPro&state=true&geogArea=0604000065&countyNamehttp://www.labormarketinfo.edd.ca.gov/cgi/databrowsing/localAreaProfileQSResults.asp?selectedarea=Riverside+County&selectedindex=33&menuChoice=localAreaPro&state=true&geogArea=0604000065&countyNamehttp://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://quickfacts.census.gov/qfd/states/06/06071.htmlhttp://quickfacts.census.gov/qfd/states/06/06071.htmlhttp://quickfacts.census.gov/qfd/states/06/06071.htmlhttp://quickfacts.census.gov/qfd/states/06/06071.htmlhttp://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://www.labormarketinfo.edd.ca.gov/cgi/databrowsing/localAreaProfileQSResults.asp?selectedarea=Riverside+County&selectedindex=33&menuChoice=localAreaPro&state=true&geogArea=0604000065&countyNamehttp://www.labormarketinfo.edd.ca.gov/cgi/databrowsing/localAreaProfileQSResults.asp?selectedarea=Riverside+County&selectedindex=33&menuChoice=localAreaPro&state=true&geogArea=0604000065&countyNamehttp://www.labormarketinfo.edd.ca.gov/cgi/databrowsing/localAreaProfileQSResults.asp?selectedarea=Riverside+County&selectedindex=33&menuChoice=localAreaPro&state=true&geogArea=0604000065&countyName


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II. LABOR MARKETANALYSIS: THE DEMAND SIDE

Labor market projections suggest that healthcare is a high-growth industry with 19 of the 30fastest growing occupations falling within that sector. State labor market projectionssuggesting a 40.5 percent increase in the number of jobs by 2018. 17 In part, the expandedneed for healthcare jobs reflects the overall aging population in the region and nationally.Concurrently, recent policy trends (such as expansion of federal healthcare insurancecoverage under healthcare reform) might potentially add more jobs in this industry as newlyinsured persons might now seek out preventive and long-term medical care within anoverburdened system. Moreover, seven of the regions largest employers are healthcareproviders and constitute 18 of the top 20 most recession-resistant employers.

17 www.labormarketinfo.edd.ca.gov

Table 4: 30 Fastest Growing Occupations (Long-Term)

Occupational Title 2008 2018

Personal & Home Care Aides 24,560 35,520Medical Scientists, Except Epidemiologists 850 1,210

Network Systems & Data Analysts 1,250 1,750Physician Assistants 770 1,060Separating & Filtering Machine Workers 220 300Home Health Aides 3,720 5,060Fitness Trainers & Aerobic Instructors 1,940 2,580Other Personal Care Workers 40,250 53,010Physical Therapist Aides 510 670Radiation Therapists 160 210Cardiovascular Technologists 330 420Surgical Technologists 620 810Biochemists 130 170Life Scientists 1,560 2,020Compliance Officers 2,010 2,600Occupational/Physical Therapist Assistant 1,270 1,640Gaming Dealers 1,600 2,070Medical Assistants 6,810 8,720Computer Software Engineers 1,350 1,720Emergency Medical Technicians 1,870 2,360Respiratory Therapists 1,510 1,910Physical Therapists Assistants 550 710Electrical Repairers 110 140

Physical Therapists 1,100 1,380Pharmacy Technicians 3,020 3,790Health Technologis ts 1,000 1,250Computer Software Engineers 1,460 1,830Loan Counselors 210 260Nursing, Psychiatric and Home Health Aides 13,260 16,480Registered Nurses 21,380 26,550
http://www.labormarketinfo.edd.ca.gov/http://www.labormarketinfo.edd.ca.gov/http://www.labormarketinfo.edd.ca.gov/http://www.labormarketinfo.edd.ca.gov/http://www.labormarketinfo.edd.ca.gov/


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As part of the labor market analysis, ERISS conducted a survey of 11,601 employers (with afirm size of five or more employees for each employment cluster and 20 or more employeessurveyed within San Bernardino County). The survey was able to attain a statisticalsignificant set of findings as 3,358 employers (or 29 percent) responded. This survey pointsto a more pessimistic trend toward expansion as 31 percent of the regions employers notedthat declining sales were a current challenge in their business environment and 41 percent

of all employers who anticipated downsizing or closing indicate that the poor businessclimate is the key factor in that decision. Yet optimistically, labor quality remains high asonly 8 percent of growing employers indicated that the lack of a qualified workforce was achallenge at their company and, for those who plan to downsize in the next 12 months, 2percent of these employers felt that the region did not have the skilled workforce they needto remain competitive.

The survey results also identify that short-term employment gains are expected withinmanufacturin g and green construction jobs, even as this industry is less recession -resistant than the stability within healthcare. Perhaps, the construction industry is bestpoised to expand in the near future as these jobs have relatively short-waiting times to fillvacancies compared to higher-end healthcare jobs. Turnover, as typical in othercommunities, remains high in retail and the hospitality industry.

Table 7: Key Concerns or Challenges of Regional Employers

Reason Percent

Declining Sales 31%Costs of Employee Benefits 26%None 20%Taxes 19%

High Wages for Workers 16%Availability of Capital or Credit 13%Utility Costs 12%Don't Know 11%Ability to Retain Employees 9%Lack of Skilled or Qualified Workforce 8%Other 7%Availability of New Incentives 5%Insufficient Room for Expansion 5%Business Affected by Foreign Trade 4%Permitting or Zoning 4%Expiring or Lack of Incentives 4%Transportation Issues 4%Access to Suppliers 2%

(Note: Survey results do not equal 100% as multiple answers were allowed; for moreinformation, please refer to USWorks database for the Inland Empire)


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Table 8: Reasons for Relocation, Downsizing or Closing(Regional Employers)

Reason PercentDeclining Sales 41%Other 28%Availability of Capital or Credit 14%

Taxes 13%Costs of Employee Benefits 10%Insufficient Room to Expand 10%High Wages for Workers 9%Utility Costs 5%Difficulty to Retain Employees 4%Business Affected by Foreign Trade 4%None 3%Don't Know 3%Expiring or Lack of Incentives 3%Transportation Issues 3%Availability of Incentives Elsewhere 2%Lack of Skilled or Qualified Workforce 2%Permitting or Zoning 2%Access to Suppliers 1%

Table 9: Fastest Projected Growth Occupations (over next 12 months)(Construction and Manufacturing Jobs in Boldface)

OccupationNext 12 Month

Projected GrowthSocial Workers 110%Sheet Metal Workers 36%Inspectors, Testers, Sorters, Samplers 30%Financial Managers 26%Plumbers, Pipefitters and Steamfitters 20%Insulation Workers 20%Electrical Engineers 19%Civil Engineers 19%Weighers, Measurers, Checkers 17%Foreman of Production Workers 17%Team Assemblers 16%Electronics Engineers 16%

Packaging and Filling Machine Operators 16%Landscaping and Groundskeepers 16%Foreman, Construction, Drilling Work 15%Tire Repairers and Changers 15%Security Guards 15%HVAC Mechanics and Installers 15%Construction and Building Inspectors 15%Health Educators 14%


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Table 10: Occupations with Most Current OpeningsNumber of Current Openings, Divided by Total Number on the Job = Openings)

Occupation Openings

Social Workers 52%Sheet Metal Workers 26%

Inspectors, Testers, Sorters, Samplers 23%Financial Managers 21%Plumbers, Pipefitters, and Steamfitters 17%Electrical Engineers 16%Insulation Workers 16%Civil Engineers 16%Weighers, Measurers and Checkers 15%Foremen of Production Workers 15%Team Assemblers 14%Packaging and Filling Machine Operators 14%Electronics Engineers 14%

Landscaping and Groundskeepers 14%Tire Repairers and Changers 13%Security Guards 13%Foremen, Construction, Drilling Work 13%Construction and Building Inspectors 13%HVAC Mechanics and Inspectors 13%Shop Supervisors or Field Supervisors 12%

Table 11: Occupations with Highest Annual Turnover

Occupation Turnover Rate

Property Managers 49%

Fast Food Cooks 48%Engineering Managers 46%Heavy and Tractor-Trailer Truck Drivers 39%Butchers and Meat Cutters 38%Merchandise Displayers 37%Room Service Servers 30%Route Sales Workers 30%Construction Managers 29%Construction-Heavy Equipment Operators 28%Vehicle Salespersons 26%Short Order Cooks 26%

Food Cooking Machine Operators 26%Switchboard Operators 25%Credit Authorizers, Checkers, and Clerks 22%Sheet Metal Workers 22%Electrical Engineers 21%Hosts and Hostesses 20%Personal and Home Care Aides 19%Cashiers 19%


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III. LABOR MARKETANALYSIS: THE SUPPLY SIDE U.S. Census data also point to a 16.3 percent educational attainment rate for a Bachelorsdegree in the region compared to the state rate of 26.6 percent. 18 In the longer-term, thereis the correlated shortfall and labor shortage crisis with the high school dropout rate for thetwo counties at 22.4 percent, compared to the 19.6 percent in California, based onCalifornia Department of Education data. 19

The short-term horizon is somewhat brighter as most of the fastest growing occupations inthe region are those that require on-the-job training or more rapid training that can bedelivered within the work environment. Yet these sub-par educational attainment rates donot bode for an optimistic outlook for the Inland Empire as many of the future jobs,particularly in the high-growth healthcare sector, will require some measure of post-secondary education.

The other key element in identifying the resources for addressing labor supply quality is thecapacity of training within the region. Overall, there are 192 training providers in the inland

Empire, ranging from small proprietary vendors (with enrollments of under 20 students percohort) to large four-year educational institutions (e.g., University of California, Riverside,Loma Linda University, or California State University, San Bernardino) with the Riverside andSan Bernardino Community College Districts as anchors.

Yet for all the depth of these resources, only 64 of these vendors are either accredited orWIA-eligible. The WIA-eligibility is also a key factor in sponsoring the ability of under-employed (incumbent) and currently dislocated workers, who receive either core and/orinten sive services at the regions eight One Stop Centers, to receive the re -skilling andtraining they need to assume these jobs. In the healthcare field, capacity is even furtherconstrained as only 43 training providers offer coursework in healthcare-related areas, mostof whom only award short-term certificates rather than the degree-based credentials thatemployers seek in this sector. Only 13 programs offer degrees at an Associates or higherlevel in a health-related area (or offer pre-requisite courses in basic sciences that cantransfer into the same or other four-year institutions.) (Capacity is also, undoubtedly,affected by limited laboratory and classroom space, faculty recruitment issues, and longerwaiting lists periods for entry into degree programs.) Hence, time to fill openings in somehealthcare jobs fall within the 70+ days range.

Green construction job training is available by 32 training providers. This type of training,however, is much easily ramped up as some of the instruction involves re-tooling of basictechniques in construction and/or building trades. This training also can lead to short-termcertification that can be applied to employment in the available jobs in the field.

18 http://quickfacts.census.gov/qfd/states/06/06065.html (Riverside County);http://quickfacts.census.gov/qfd/states/06/06071.html (San Bernardino County). Aggregate calculationsmade by author.19 http://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=33+RIVERSIDE&Topic=Graduates&Level=County&submit1=Submit http://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=36+SAN+BERNARDINO&Topic=Graduates&Level=County&submit1=Submit Aggregate data calculated by author
http://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://quickfacts.census.gov/qfd/states/06/060605.htmlhttp://quickfacts.census.gov/qfd/states/06/06071.htmlhttp://quickfacts.census.gov/qfd/states/06/06071.htmlhttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=33+RIVERSIDE&Topic=Graduates&Level=County&submit1=Submithttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=33+RIVERSIDE&Topic=Graduates&Level=County&submit1=Submithttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=33+RIVERSIDE&Topic=Graduates&Level=County&submit1=Submithttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=33+RIVERSIDE&Topic=Graduates&Level=County&submit1=Submithttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=36+SAN+BERNARDINO&Topic=Graduates&Level=County&submit1=Submithttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=36+SAN+BERNARDINO&Topic=Graduates&Level=County&submit1=Submithttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=36+SAN+BERNARDINO&Topic=Graduates&Level=County&submit1=Submithttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=36+SAN+BERNARDINO&Topic=Graduates&Level=County&submit1=Submithttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=36+SAN+BERNARDINO&Topic=Graduates&Level=County&submit1=Submithttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=33+RIVERSIDE&Topic=Graduates&Level=County&submit1=Submithttp://dq.cde.ca.gov/dataquest/SearchName.asp?rbTimeFrame=oneyear&rYear=2007-08&cCounty=33+RIVERSIDE&Topic=Graduates&Level=County&submit1=Submithttp://quickfacts.census.gov/qfd/states/06/06071.htmlhttp://quickfacts.census.gov/qfd/states/06/060605.html


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Table 12: Educational/Training Requirements for Top 30 Future Occupations 20

Occupational Title Education/Training NeededPersonal & Home Care Aides Short-term on-the-job trainingMedical Scientists, Except Epidemiologists Doctoral degreeNetwork Systems & Data Analysts Bachelor's degreePhysician Assistants Bachelor's degreeSeparating & Filtering Machine Workers Moderate-term on-the-job trainingHome Health Aides Short-term on-the-job trainingFitness Trainers & Aerobic Instructors Some post-secondary educationOther Personal Care Workers Short-term on-the job training

Physical Therapist Aides Short-term on-the-job trainingRadiation Therapists Associate's degreeCardiovascular Technologists Associate's degreeSurgical Technologists Some post-secondary educationBiochemists Doctoral degreeLife Scientists Bachelor's degreeCompliance Officers Long-term on-the-job trainingOccupational/Physical Therapist Assistant Some post-secondary educationGaming Dealers Some post-secondary educationMedical Assistants Moderate-term on-the-job trainingComputer Software Engineers Bachelor's degreeEmergency Medical Technicians Some post-secondary educationRespiratory Therapists Associate's degreePhysical Therapists Assistants Associate's degreeElectrical Repairers Some post-secondary educationPhysical Therapists Master's degreePharmacy Technicians Moderate-term on-the-job trainingHealth Technologists Some post-secondary educationComputer Software Engineers Bachelor's degreeLoan Counselors Bachelor's degreeNursing, Psychiatric and Home Health Aides Some post-secondary educationRegistered Nurses Associate's degree

20

20 Americas Career InfoNet; online.onetcenter.org


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Table 13: WIA-Eligible and Accredited Training Providers in Healthcare

County Provider Name

Academy of Holis tic Heal th ArtsAll About MassageBanning Massage SchoolCalifornia Nurses Educational InstituteCenter for Employment TrainingGoodwill Industries of the Inland CountiesLa Sierra UniversityMt. San Jacinto Community CollegeNorth West CollegePalo Verde CollegeRiverside Community CollegeRiverside County Regional Occupational ProgramUniversal Schools & Colleges of Health & Human Services

University of California, RiversideAmerican Red Cross-Upland Empire ChapterBarstow Community CollegeBarstow Regional Occupational ProgramBear Valley Regional Occupational ProgramCalifornia State University, San BernardinoChaffey Adult SchoolChaffey Community CollegeChapman UniversityChino Valley Adult SchoolColton-Redlands-Yucaipa Regional Occupational ProgramCopper Mountain Community CollegeCrafton Hills CollegeFontana Unified School Dis trictHealth Care Innovations, Inc.Loma Linda University

RIVERSIDE

SAN BERNARDINO

(For more detail, please refer to USWorks database for the Inland Empire)

In sum, the labor market analysis of the demand and supply sides, conducted by ERISS,illustrates a disconnection in the workforce system to bolster the regions human capitalpotential to meet the widening gaps and future employer demands in healthcare andshort- term needs in green construction jobs. Addressing this mismatch will, in part,narrow by broadening existing training capacities at all institutional levels. Additionally,pipelines need to be extended into the K-12 system with career awareness programs tobolster interest in healthcare and green job occupations and expanding the workerpopulation to incorporate non-traditional groups into the field, including immigrants,returning Veterans, ex-offenders (with surety bonding) with seamless career pathways forentry and upward employment mobility. These same groups will also benefit from anaccelerated process to increase the number of WIA-eligible and accredited trainingproviders who can offer coursework and other skill enhancements to participants at a cost-efficient, yet high quality level.


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IV. RECOMMENDATIONS

Like many areas across the country, the Inland Empire region's existing labor supply is notcompatible against the current and future labor demand. This mismatch is largelyexacerbated by an educational attainment (Bachelor's degree or higher) that is substantivelylower than the rest of California against double-digit employment growth in health care andIT sectors which require this higher skill capacity. Remedying this skill gap is alsocompromise

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