Michigan Department of Licensing and Regulatory Affairs Bureau of Construction Codes.
COMPETITIVENESS OF THE MICHIGAN CONSTRUCTION … › doc › workshop › 2016 › ... ·...
15
COMPETITIVENESS OF THE MICHIGAN CONSTRUCTION INDUSTRY Worker’s and Firm’s Characteristics; Employment Trends and Dynamics, Using LEHD QWI and J2J Data Series Longitudinal Employer-Household Dynamics (LEHD) Workshop March 7 – 8, 2016 U. S. Bureau of Census Leonidas Murembya, Ph.D. Economic Specialist, Michigan Bureau of Labor Market Information and Strategic Initiatives Assistant Professor (economics), Michigan State University 1
Transcript of COMPETITIVENESS OF THE MICHIGAN CONSTRUCTION … › doc › workshop › 2016 › ... ·...
COMPETITIVENESS OF THE MICHIGAN CONSTRUCTION
INDUSTRY
Worker’s and Firm’s Characteristics; Employment Trends and
Dynamics, Using LEHD QWI and J2J Data Series
Longitudinal Employer-Household Dynamics (LEHD) Workshop
March 7 – 8, 2016
U. S. Bureau of Census
Leonidas Murembya, Ph.D.Economic Specialist, Michigan Bureau of Labor Market Information and Strategic Initiatives
Assistant Professor (economics), Michigan State University
1
Presentation Outline
From Quarterly Workforce Indicators (QWI)
Construction Worker’s Characteristics (Age, Gender, Educational Attainment)
Construction Firm Characteristics (Age and Size)
From Other U. S. Census Bureau’s Economic Data
Characteristics of the Construction Business Owner
From Job-to-Job (J2J) Data Series
J2J Hires and Separations
Hires from and Separations into Persistent Nonemployment
Destination Industries and States for Michigan Construction J2J Movers
2
Construction Worker’s Characteristics (Age,
Gender, Educational Attainment)
Construction Firm Characteristics (Age and Size)
From Quarterly Workforce Indicators (QWI)3
The Michigan Construction Industry is Male-Dominated
4
86%82%
88% 87%
51%
14%18%
12% 13%
49%
CONSTRUCTION CONSTRUCTION OF BUILDINGS
HEAVY AND CIVIL ENGINEERING
CONSTRUCTION
SPECIALTY TRADE CONTRACTORS
ALL INDUSTRIES
Male Female
Source: U. S. Census Bureau, Local Employment-Household Dynamics, Quarterly Workforce Indicators, Third Quarter 2014
Higher-than-Average Share of Workers in the Prime Age
Groups of 35 to 545
0.7%
3.2%4.5%
20.4%
24.9%27.1%
16.0%
3.2%
1.7%4.3%
5.8%
20.2%
21.3%
24.4%
17.9%
4.4%
14-18 19-21 22-24 25-34 35-44 45-54 55-64 65-99
Construction All Industries
Source: U. S. Census Bureau, Local Employment-Household Dynamics, Quarterly Workforce Indicators, Third Quarter 2014
Higher-than-Average Share of Workers With a High
School Diploma or Less6
12%
33%
29%
15%
11%9%
26%29%
25%
12%
LESS THAN HIGH SCHOOL
HIGH SCHOOL OR EQUIVALENT, NO
COLLEGE
SOME COLLEGE OR ASSOCIATE
DEGREE
BACHELOR'S DEGREE OR ADVANCED
DEGREE
EDUCATIONAL ATTAINMENT NOT
AVAILABLE (WORKERS AGED 24 OR YOUNGER)
Construction All Industries
Source: U. S. Census Bureau, Local Employment-Household Dynamics, Quarterly Workforce Indicators, Third Quarter 2014
Over Half of All Construction Firms are Small-Sized
(0 to 19 Employees)7
2.8
%
3.9
%
4.0
% 10
.5%
78
.8%
50
.2%
16
.9%
18
.0%
3.7
% 11
.1%
2.9
%
3.6
%
3.2
%
7.9
%
82
.3%
19
.8%
10
.2%
16
.1%
6.1
%
47
.8%
Construction All industries
Employment by Firm Age Employment by Firm Size
Source: U. S. Census Bureau, Local Employment-Household Dynamics, Quarterly Workforce Indicators, Third Quarter 2014
J2J Hires and Separations
Hires from and Separations into Persistent
Nonemployment
Destination Industries and States for Michigan
Construction J2J Movers
From Job-to-Job (J2J) Data Series8
Steady Payroll Employment Decline Since 2000
9
10098 95
91 91 9085
79
73
6158 60 61 63 64
100 101 99 99103
108113 112
106
89
81 82 8386
90
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Michigan U.S.
Source: Michigan Bureau of Labor Market Information and Strategic Initiatives, Current Employment Statistics, Annual Averages
Job-to-Job Flows in Michigan's Construction Sector
(2001 - 2014) - Seasonally Adjusted10
2%
4%
6%
8%
10%
12%
14%
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Hiring Ratesfrom PersistentNon-employmentSeparationRates toPersistent Non-employmentJ2J Hire Rate
J2J SeparationRate
Source: U. S. Census Bureau, Local Employment-Household Dynamics, Job-to-Job Data Series, Quarterly Averages
Job-to-Job Movers in the Michigan Construction
Industry, Second Quarter11
10,796
7,686
3,415
6,633
-
2,000
4,000
6,000
8,000
10,000
12,000
2001 2007 2009 2014
Source: U. S. Census Bureau, Local Employment-Household Dynamics, Job-to-Job Data Series, Second Quarter
Top Ten Destination Industries of Construction Workers
Job-to-Job Movers in Michigan12
2001 2007 2009 2014
Destin.
Industry
%
Total
Job
Movers
Destin.
Industry
%
Total
Job
Movers
Destin.
Industry
%
Total
Job
Movers
Destin.
Industry
%
Total
Job
Movers
Constr. 62% Constr. 59% Constr. 56% Constr. 58%
Temp srvcs 9% Temp srvcs 10% Temp srvcs 10% Temp srvcs 9%
Manuf. 5% Manuf. 6% Retail 6% Manuf. 7%
Retail 5% Retail 4% Manuf. 5% Retail 4%
Profess. 3% Other srvcs 3% Accom. 4% Profess. 3%
Accom. 3% Profess. 3% Health 3% Other srvcs 3%
Wholesale 2% Wholesale 3% Wholesale 2% Wholesale 3%
Other srvcs 2% Accom. 2% Profess. 2% Accom. 2%
Health 1% Transp. 2% Other srvcs 2% Transp. 2%
Gov. 1% Health 1% Real Est. 2% Health 1%
Source: U. S. Census Bureau, Local Employment-Household Dynamics, Job-to-Job Data Series, Second Quarter
Top Five Destination States of Michigan Construction
Workers Job-to-Job Movers 13
2001 2007 2009 2014Destination States Movers
Destination States Movers
Destination States Movers
Destination States Movers
Nation 11,874 Nation 9,097 Nation 4,180 Nation 7,613
Michigan 10,796 Michigan 7,686 Michigan 3,415 Michigan 6,633
Ohio 188 Ohio 244 Ohio 130 Ohio 202
Indiana 113 Indiana 168 Illinois 102 Indiana 88
Illinois 74 Wisconsin 116 Wisconsin 66 Pennsylvania 73
Texas 67 Florida 102 Indiana 65 Illinois 60
Michigan Share 91% Michigan Share 84% Michigan Share 82% Michigan Share 87%Neighboring States 3%
Neighboring States 6%
NeighboringStates 9%
NeighborStates 5%
Source: U. S. Census Bureau, Local Employment-Household Dynamics, Job-to-Job Data Series, Second Quarter
Conclusions and Future Research
Even though the Michigan construction sector, like most other sectors of the economy, is on a rebound since the end of the recession, it still has a long way to go before it becomes as vibrant as it was in the early years of the millennium.
The job-to-job employment dynamic shows a recent surge in the construction worker’s confidence to find new jobs, indicating an increase in the health of the state’s construction labor market.
Access to restricted microdata will allow to extend this research by looking at the reasons workers move from job to job, industry to industry, and states to states, paying particularly attention to economic shocks like the recent recession.
14
