Labor Market Info! - swsc.org · •Preparing students for highly demanded jobs within their region...
Transcript of Labor Market Info! - swsc.org · •Preparing students for highly demanded jobs within their region...
Labor Market Info! Data Driven Decisions:
Aligning Education and Industry
Luke GreinerRegional Labor Market Analyst, Central and SouthwestMinnesota Dept. of Employment & Economic DevelopmentLabor Market Information Officehttp://mn.gov/deed/data/
Labor Market Information Office
• Each state produces employment and economic statistics in cooperation with U.S. Department of Labor’s Bureau of Labor Statistics
• LMI includes employment statistics, unemployment rates, wages and salaries, job projections and more
• LMI is the foundation for informed, market-responsive planning
How is the job market doing?
Minnesota Numbers - September
• Employment growth steady
–MN sheds 5,700 jobs in September
–35,250 jobs over-the-year (1.2% growth)
• Unemployment edges down to 3.8%
• Labor force participation rate at 69.7%
• Avg. hourly earnings at $25.94
Labor Force declining
60.0
62.0
64.0
66.0
68.0
70.0
72.0
74.0
76.0
78.0
80.0
Jan
-76
Jun
-77
No
v-7
8
Ap
r-8
0
Sep
-81
Feb
-83
Jul-
84
Dec
-85
May
-87
Oct
-88
Mar
-90
Au
g-9
1
Jan
-93
Jun
-94
No
v-9
5
Ap
r-9
7
Sep
-98
Feb
-00
Jul-
01
Dec
-02
May
-04
Oct
-05
Mar
-07
Au
g-0
8
Jan
-10
Jun
-11
No
v-1
2
Ap
r-1
4
Minnesota U.S.
Peaked at 75.4% in 2000
Baby-Boomers leaving the labor force
Regional Unemployment Rates
Unemployment up-close
Industry Statistics
Minnesota Industry Trends
Data are September 2014 to September 2015
-3,709
-2,170
-1,615
-429
-357
146
3,744
5,312
9,714
11,109
13,497
-6,000 -4,000 -2,000 0 2,000 4,000 6,000 8,000 10,00012,00014,00016,000
Government
Construction
Other Services
Logging & Mining
Information
Manufacturing
Financial Activities
Trade, Trans. & Utilities
Leisure & Hospitality
Prof. & Business Services
Ed. & Health Services
Alignment is pivotal to meet industry needs and students expectations
Using data to drive policy decisions in education and industry can make better long run strategies. A few ways to make this happen in your community:
• Know what occupations are highly demanded by regional employers and who’s currently hiring
• Find out the true outcomes of higher education programs
• Consider the employment outlook for the region. Where are the jobs now and where will they be in the next ten years?
Occupations In Demand tool • A great place to check personal observations or
individual experiences against data.
• Comprehensive list of more than 300 occupations ranked in relative demand based on;
- Job vacancies
- Number of existing jobs
- Seasonality of job vacancies
- Unemployment insurance claims data
http://mn.gov/deed/data/data-tools/oid/
Occupations In Demand
What are the top 3 occupations in demand in our region?
1. Nursing Assistants
2. Heavy Tractor Trailer Truck Drivers
3. Welders
- $24,856- $40,403
- $43,902
56%
14%
30%
Southwest OID Educational Breakdown
HS Diploma or Less
Some College, Certificate,or Associate Degree
Bachelors Degree orHigher
Top demanded occupations in Southwest Minnesota by education
HS Diploma or Less Some College to Associate Degree Bachelors Degree or Higher
Welders, Cutters, Solderers, and Brazers Nursing Assistants Family and General Practitioners
$43,902 $24,856 $194,199
Combined Food Preparation and Serving Workers, Inc Heavy and Tractor-Trailer Truck Drivers Mechanical Engineers
$18,418 $40,403 $76,149
Personal Care Aides Registered Nurses Industrial Engineers
$22,605 $62,221 $93,608
Farm Equipment Mechanics and Service Technicians LPN's and Licensed Vocational Nurses Financial Managers
$40,358 $39,366 $84,885
Cashiers First-Line Supervisors of Production Workers Accountants and Auditors
$19,140 $51,935 $57,341
Customer Service Representatives Medical Assistants Nurse Practitioners
$38,340 $30,593 $96,993
Home Health Aides Wind Turbine Service Technicians Loan Officers
$22,922 $49,172 $79,640
Slaughterers and Meat Packers Computer User Support Specialists Network and Computer Systems Administrators
$27,909 $50,588 $60,369
Social and Human Service Assistants Industrial Engineering Technicians Securities, Commodities, and Financial Services
$36,517 $47,560 $71,734
Bus and Truck Mechanics and Diesel Engine Speciali Surgical Technologists Internists, General
$38,001 $51,307 $183,537
Using Occupations In Demand• Many highly demanded jobs that do not require higher
education could benefit from career/technical courses in high school.
• Preparing students for highly demanded jobs within their region helps fill the entry level jobs that many companies struggle to fill, AND provides opportunity for students to make a life in their community.
• Using data helps leverage employer support and collaboration with resources at local schools.
• After gaining entry level employment, incumbent worker training can be used to upskill the employees, thus creating new entry level openings.
What about the current job openings?
• Its easy to see “Now Hiring” signs everywhere you look. But what do the data say?
• In the second quarter of 2015 there were about 6,000 job openings in our region
• The most openings were in food prep and serving related (23.4%), followed by transportation and material moving (9.5%), and production (6.2%)
• 22%-34% of openings require some type of higher education
• About a third require a certificate or license
Job Vacancy Survey (MN)
DEED’s Job Vacancy Survey• Great tool to see what occupations are being
filled and industries are hiring in your region.
• Looking at the job requirements can help guide conversation between companies and education, both secondary and post-secondary.
Retaining the future labor Force
• If only 1- of- 3 demanded occupations require a bachelors degree or more, what happens when almost 2-in-3 students plan to go to a 4- year college?
• Only 11% plan to go to a 2- year college
• 24% of students plan to stay in SW Minnesota
• When asked what is the main reason some people chose to leave, half said better career opportunities
Graduate Employment Outcomes
Who should use the tool?
• Prospective students, to set realistic expectations for employment and wages following graduation
• Parents and career counselors, to help prospective students plan their education
• Education program planners interested in aligning program offerings to market demand
• Policy makers interested in evaluating the state’s returns on investments in higher education
Five key aspects of employment
1. EMPLOYABILITY (in-state employment rate)
2. FULLTIME AND YEAR-ROUND STATUS(job quality and job stability)
3. EARNINGS
4. TOP INDUSTRIES OF EMPLOYMENT
5. TOP REGIONS OF EMPLOYMENT
A GEO analysis…
Instructional Program Bachelors Degree Award
Number of Bachelor Degree
Graduates
Annual Median Earnings of All
Employed Graduates in 2nd year after
graduation
Percent working full-
time and year-round in 2nd Year
Median Earnings of Full-time
Employed in 2nd Year
We
ll A
lign
ed
Engineering 1,217 $55,489 69% $59,124
Construction trades 25 $53,675 76% $55,472
Computer and information science 647 $51,990 68% $56,277
Health profession 2,577 $50,021 40% $59,646
Engineering technologies 165 $47,688 68% $51,960
Business, management, and marketing 6,272 $38,667 64% $45,289
Po
orl
yA
lign
ed
Visual and performing arts 1,562 $17,833 29% $31,039
Transportation and materials moving 51 $17,731 35% $26,447
Communications technologies/technician 21 $17,629 N/A* N/A*
Area, ethnic, cultural, gender, and group studies
168 $17,540 28% $30,300
History 443 $16,513 29% $34,154
Theology and religious vocations 337 $15,741 30% $33,185
A step further…0 5 10 15 20 25 30
Professional & Technical Services
Information
Manufacturing
Finance & Insurance
Wholesale Trade
Retail Trade
Accommodation & Food Service
Professional & Technical Services
Educational Services
Health Care & Social Assistance
Visual and performing arts
Computer and information science
• Comparison of any other pair of majors from previous chart would reveal the same discrepancies in employment outcome
What does this information tell us?
• If wage and employment rates are the outcome of interaction between supply and demand, they tell us a great deal about which fields of study are in demand and which are not
• Providing these data to young people selecting a major, and to incumbent workers looking to change careers, would allow them to better self-select into areas with better opportunities
• Data for all fields of study are on our website at: http://mn.gov/deed/data/data-tools/graduate-employment-outcomes/
Minnesota’s Employment Outlook
• According to DEED’s 2012-2022 Employment Projections data, about 34.2% of jobs required postsecondary education– 967,827 out of 2,832,962 jobs (+8.1% from 2012 to 2022)– Remaining 65.8% of jobs require high school diploma or less
• +6.6% from 2012 to 2022– Most jobs require on-the-job training or related work experience
The Georgetown Number• Ever heard the line that “74% of jobs in Minnesota will require
postsecondary education” by 2020?• Georgetown University Center on Education and the Workforce
• 71.7% of Minnesota’s labor force already has some college or a degree
• DEED Projects only ~ 35% of ALL Jobs by 2022 will require Postsecondary Education
Excellent Video on Education in New Economyhttps://vimeo.com/67277269
Invest in Education• The cost of an education is a very worthwhile investment!
• With a gap of $23,764 last year; over $1 million over 45 years!
$84,396
$89,128
$69,108
$57,616
$40,404
$33,852
$24,544
$ 43,004
$37,804
annual
Expectations for Minnesota’s future job growth• With the labor market fully recovered from the recent
recession, current projections show a more balanced outlook through 2022
• Job growth over the next decade will average 0.7% a year, a slower pace than previous projections– National projections at 1.0% a year
• The key macroeconomic assumptions driving the 2012-2022 national industry projections are:– Demographic changes drive demand for healthcare & related services– Labor force growth will slow below 0.5% annually
(baby-boomers leaving)– GDP projected to increase at an annual rate of 2.6%– Economy will reach full-employment by 2022
Industry Projections• Southwest Minnesota is projected to grow 2.7% (slowest in state)
– 5,685 net new jobs– Health Care & Social Assistance may add +4,076 jobs (+16.0%)– Fast growth in Construction, Professional & Technical Services,
Administrative Support & WasteManagement (Temp. Services)
• 48,000 replacement openings– Only personal care & service
will have more new jobs– Biggest needs in sales, office &
admin. support, food prep,production, management,transportation, education,healthcare practitioners & support, installation & repair
Other LMI products and publicationsLocal Look Regional Blog Monthly blog covering regional economic trends Workforce insights. Occupations In Demand, Unemployment Rates
Minnesota Economic TRENDS Quarterly magazine on economic topics Subscriptions available free of charge or on-line
Minnesota Employment REVIEW Monthly magazine on economic data and regional trends Includes Minnesota business development Available exclusively on-line
http://mn.gov/deed/review
http://mn.gov/deed/trends
http://mn.gov/deed/data/locallook/
Thank you!Please let me know how I can help!
Luke GreinerRegional Labor Market Analyst, Central and Southwest Minnesota
Minnesota Dept. of Employment and Economic Development
Labor Market Information OfficePhone: (320)-308-5378