Regional Labor Market Report

Southern Alleghenies Tech Prep Consortium

May 6, 2010

Presentation Topics

• Regional labor market environment– Population and labor force trends– Industry composition– Unemployment trends– Wage structure

• Educational Attainment• Occupational analysis of Tech Prep Cluster• Workforce Development Initiatives

– Industry Clusters, – High Priority Occupations– Industry Partnerships– Business and Education Consortia

Population Trends

• Population across the region continues to age• Not all counties will decline, but overall loss is projected

at 9.70% (2000 – 2030)*• Changes not consistent among all age cohorts• Older segment projected to continue increasing• Will impact current and future labor supply

• *The Pennsylvania State Data Center at the Pennsylvania State University consulting with a Statewide advisory committee comprised of State agencies, regional planning agencies and academic representatives have produced preliminary State and county population projections for the Commonwealth.

Projected Population Change by County2000 – 2030

(Source: Pennsylvania Preliminary Population Projections Penn State Data Center)

• GAINERS:• County Volume and % Change

• Bedford 2063 4.1% • Huntingdon 2112 4.6%

• Fulton 3245 22.8%

• LOSERS:• County Volume and % Change

• Blair 21,520 16.7%• Cambria 28,115 18.4% Somerset 3502 4.4%

Labor Force Trends

• Labor force participation is comparatively low across the region

• Becoming increasingly diverse and more mobile (approx four out of five work in their county of residence)

• Baby boom generation beginning to retire• Number of females on the increase - reflective of

changes in marital status, educational attainment, fertility, and rising career aspirations

• Older members challenged by new technology

Labor Force participation (a key workforce development issue)

• Definition: LFR is the ratio of the number in the labor force compared to the civilian population (16+)

• Region ranks below the state average • Participation rates vary by age group

– Low among younger workers – Highest among 25 – 54 age group with strong attachments

to the labor market– Older age group comparatively low but on the rise

• Male/female comparison:– Male participation on the decline– Growth among female participants tapering off

Industry Change

• Regional labor market dominated by small employers• Industry composition continues to shift from goods to service

producing Industries• Changes in goods producers (mfg, mining, construction)

paced by manufacturing• Service Producing Industries:

– Have changed the economic landscape of this region– Continue to struggle with generally held misconceptions – Industry transition is accompanied by rising skills and earnings level– Account for four out of five highest paid industries in the region– Service providers are home to 85% of all employers

Nearly two-thirds of All Employers Employ 10 or Fewer Workers

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

Under 5

5-9

10-19

20-49

50-99

100-249

250-499

500-999

1000+

Employers by Size

Changing Industry CompositionNumber of jobs in Goods vs. Service

Producing Industries

29,100

150,600

Goods Producing IndustriesService Producing Industries

Leading Industries Dominated by Service Producers(List determined by number of jobs)

• Education and Health Services• Trade, Transportation, and Utilities• Government• Professional and Business Services• Manufacturing

Unemployment

• Widely recognized as a key indicator of economic performance – but often misinterpreted

• Count based on place of residence• Not a stand alone statistic in analyzing the labor

market • An average of 8.8% last year, comparable to state and

nation• Underemployment – not a measured statistic but

considered by many to be a key economic issue

Comparison of Jobless RatesAnnual Average 2000 - 2009

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

1

2

3

4

5

6

7

8

9

10

PA.U.S.SA Region

Elk6.1

Tioga6.2

Erie5.7

York4.8

Potter7.4

Centre4.3

Berks5.4

Bradford5.4

Pike6.8

Butler4.7

Warren5.4

Lycoming6.0

Bedford7.1

Clinton6.3

McKean6.3

Clearfield6.8

Crawford5.8

Wayne5.3

Indiana5.3

Luzerne6.3

Blair5.3

Somerset6.5Fayette

6.6

Perry5.3

Mercer7.0

Bucks4.8

Lancaster4.3

Chester4.0Franklin

4.5

Clarion6.3

Cambria6.2

Monroe6.3

Schuylkill6.3

Venango5.8

Greene5.9

Allegheny4.9

Adams4.5

Washington5.3

Westmoreland5.3

Jefferson5.6

Forest7.6

Beaver5.6

Armstrong6.0

Susquehanna5.6

Sullivan5.8

Wyoming6.1

Lawrence6.3

Huntingdon6.7

Fulton8.0

Mifflin6.7

Dauphin4.7

Union6.3

Juniata5.4

Carbon6.8

Columbia5.9

Lehigh5.7

Snyder6.2

Cumberland4.3

Cameron9.2

Lebanon4.2 Montgomery

4.4

Lackawanna5.9

Northumberland6.7 Northampton

5.6

Delaware5.0

Montour4.8

Philadelphia7.2

PennsylvaniaUnemployment Rate by County

2008 Annual Average

Center for Workforce Information & AnalysisOctober 29, 2009

Unemployment Rates

4.0 - 5.3 5.4 - 5.9 6.0 - 6.3 6.4 - 9.2

Source: Local Area Unemployment Statistics, 2008 Benchmark

Elk6.1

Tioga6.2

Erie5.7

York4.8

Potter7.4

Centre4.3

Berks5.4

Bradford5.4

Pike6.8

Butler4.7

Warren5.4

Lycoming6.0

Bedford7.1

Clinton6.3

McKean6.3

Clearfield6.8

Crawford5.8

Wayne5.3

Indiana5.3

Luzerne6.3

Blair5.3

Somerset6.5Fayette

6.6

Perry5.3

Mercer7.0

Bucks4.8

Lancaster4.3

Chester4.0Franklin

4.5

Clarion6.3

Cambria6.2

Monroe6.3

Schuylkill6.3

Venango5.8

Greene5.9

Allegheny4.9

Adams4.5

Washington5.3

Westmoreland5.3

Jefferson5.6

Forest7.6

Beaver5.6

Armstrong6.0

Susquehanna5.6

Sullivan5.8

Wyoming6.1

Lawrence6.3

Huntingdon6.7

Fulton8.0

Mifflin6.7

Dauphin4.7

Union6.3

Juniata5.4

Carbon6.8

Columbia5.9

Lehigh5.7

Snyder6.2

Cumberland4.3

Cameron9.2

Lebanon4.2 Montgomery

4.4

Lackawanna5.9

Northumberland6.7 Northampton

5.6

Delaware5.0

Montour4.8

Philadelphia7.2

PennsylvaniaUnemployment Rate by County

2008 Annual Average

Center for Workforce Information & AnalysisOctober 29, 2009

Unemployment Rates

4.0 - 5.3 5.4 - 5.9 6.0 - 6.3 6.4 - 9.2

Source: Local Area Unemployment Statistics, 2008 Benchmark

Area Wage Information

• Average wage for all industries– Bedford County - $30,167 Huntingdon County - $31,522– Blair County – $32,986 Fulton County – $32,448– Cambria County - $32,464 Somerset County - $31,791

• Factors that affect local area wage rates– Labor supply vs. demand– Occupation– Industry composition– Geographic location– Size– Individual characteristics

• Tenure• Employees knowledge and skills• Performance

Highest Paying Industry Sectors and Major Occupational Groups Southern Allegheny Region

• Highest paying industry sectors• Utilities $69,014• Management of Companies and enterprises $59,708• Mining $59,040 • Federal Government $45,800 • Professional and Technical Services $39,710• Manufacturing $39,309

• Highest paying major occupational groups• Management Occupations $70,913• Architecture and Engineering Occupations $55,533• Legal Occupations $55,280• Computer and Mathematical Occupations $51,936• Life, Physical, and Social Science Occupations $54,028

Tioga$578

Potter$639

York$757

Elk$636

Centre$732

Erie$692

Berks$783

Bradford$669

Butler$756

Warren$646

Lycoming$641

Bedford$580

Clinton$597

McKean$647

Clearfield$610

Somerset$611

Pike$560

Luzerne$671

Indiana$704

Wayne$605

Crawford$623

Fayette$592

Blair$634 Perry

$528

Lancaster$733

Bucks$855

Chester$1,107

Mercer$644

Franklin$674

Clarion$612

Cambria$624

Greene$853

Venango$634

Monroe$704

Schuylkill$641

Adams$642

Jefferson$601

Washington$763

Westmoreland$716

Allegheny$928

Forest$643

Susquehanna$508

Beaver$709

Armstrong$679

Sullivan$495

Wyoming$726

Lawrence$663

Huntingdon$607

Fulton$703

Dauphin$840

Mifflin$612

Juniata$566

Carbon$568

Union$692

Columbia$634

Lehigh$862

Snyder$578

Cumberland$794

Cameron$570

Lebanon$652

Lackawanna$666

Montgomery$1,095

Northumberland$631 Northampton

$766

Delaware$919

Montour$955

Philadelphia$1,043

PennsylvaniaAverage Weekly Wage by County

2008 Annual Average

Center for Workforce Information & AnalysisOctober 29, 2009

Average Weekly Wage

$495 - $611 $612 - $647 $648 - $733 $734 - $1,107

Source: Quarterly Census of Employment and Wages, All Ownership

Summary

• Education must continue to be a key partner to ensure future labor force development

• Collaboration between business and education is essential

• Future job picture will reflect the rapidly changing economic environment

• Service industries will continue to dominate

Educational Attainment

• Changing demand for unskilled vs. skilled workers

• Are workers keeping up with technological change?

• How does educational attainment locally compare to the state and nation?

Unskilled jobs are disappearing and demand for higher skills is rising

1950 1994 Current0%

20%

40%

60%

80%

100%

Professional

Skilled

Unskilled

16%

73%

10%

30%

47%

23%

40%

40%

19%

Source: U.S. Bureau of Census and Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis (Pennsylvania statewide)

Do too few Area workers have the education to keep up with rapid technological change?

14%

49%

13%

8%10%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Less than aHigh School

diploma

High SchoolDiploma or

GED

Some College,No Degree

Associate'sDegree

Bachelor'sDegree

Post-GraduateDegree

Source: American Fact finder

Educational Attainment for the Southern Allegheny Region

Educational Attainment (18 to 24 years)

Less than high school High school graduate Some college or associate degree

Bachelor degree0

5

10

15

20

25

30

35

40

45

U.S.SA RegionPennsylvania

Occupational Analysis

• Step by step procedure utilizing an occupation selected from the construction technology cluster:

– Defining the occupation– Selecting your resources– Analysis of selected occupation

• Projected growth• Wages• Defined as an HPO and “green occupation”• Nature of the Work• Training, Other Qualifications, and Advancement• Employment• Job Outlook• Projections• Earnings• Wages• Related Occupations

Construction Technology Cluster Definition

• 46.5999 Construction Technology A cluster industry/occupational program that provides for a sequence of secondary technical core planned courses in Tech Prep. This program prepares individuals to apply knowledge and skills in the construction technology field. Instruction is provided in the basic skills in a variety of areas associated with building construction such as carpentry, masonry, plumbing, heating, and electrical. Instruction includes, but is not limited to, blue print reading, cost estimating, uses of hand and power tools; cutting, fitting, fastening, and finishing various materials; and applying technical specifications and knowledge concerning the physical properties of materials.

LMI Resources for Occupational Analysis

• Center for Workforce Information and Analysis*– workforceinfo@state.pa.us– Products include:

• Long term Industry and Occupational Projections• Career Guide• Occupational Wages• Career Videos• Pennsylvania Occupational Outlook Handbook

• U.S. Bureau of Labor Statistics*– www.bls.gov

• Occupational Outlook Handbook

• Pa Department of Labor and Industry*– www.paworkforce.state.pa.us

• High Priority Occupations• Targeted Industry Clusters• Green Industries and Occupations

• May be added to Tech Prep Links website*

Results of Analysis

• Tech Prep Cluster - Construction Technology• Occupational Title: –Carpenter• Projected Employment Growth: through 2016: ( 3.9% )

– Projected annual job gains:– Due to growth 8– Replacement needs 28

• Wages– Average hourly wage - $16.41– Average annual wage - $34,130– Entry level wage - $21,770– Experienced - $40,310

• On the HPO list? Yes• Defined as a green occupation? Yes• Additional Information (See handout)

Workforce Development Initiatives

Industry PartnershipsHigh Priority Occupations

Pa’s Targeted Industry Clusters

Industry Partnerships

• Industry partnerships can:– identify specific training needs and skill gaps– help connect young people to careers– help educational and training institutions – arrange curriculum to meet business demands– address worker recruitment and retention– develop career ladders within companies– highlight best practices and promote communication

among companies.

Industry Partnerships(continued)

• More than 6300 businesses in nearly 80 Industry partnerships across Pennsylvania

• Across the region a number of our counties have individual industry consortiums around manufacturing and healthcare.

• All of our counties have business/education partnerships. They go by different names ie, BASICS (Businesses and Schools Investing in Cooperative Solutions), or Business & Education Consortium.

• Southern Alleghenies Advanced Materials and Diversified Manufacturing Industry Partnership– With nearly 80 companies, ranging from 20 to 1500 employees, this

partnership is focusing on retraining workers and expanding and enhancing business

High Priority Occupations

• In the past too many workforce education programs were not aligned with actual skills needed

• Workforce development strategy works to change that by targeting education and training dollars to HPO’s

• HPO’s are job categories within selected industry clusters that are in demand by employers, have higher skill needs, and are most likely to provide family sustaining wages.

Goals: Now and in the Future ( HPO’s continued)

• Annually produce the traditional list of HPO’s for the state and local workforce investment area

• Formulate a process for identifying and including the new, emerging and evolving occupations to include those directly related to the green economy

• Continue to assist the educational community as they integrate the HPO process into secondary and post secondary education systems

Pa’s Targeted Industry Clusters

• Advanced Materials & Manufacturing• Agriculture & Food Production

• Bio Medical• Building & Construction• Business & Financial Services

• Education• Health Care

• Information and Communication Services• Logistics & Transportation• Lumber & Wood Products

• Each of these clusters consists of a group of industries closely linked by common products markets, labor pools, similar technologies, supply chains, and /or other economic ties.

Why develop industry clusters?

• Gain a better understanding of local industries while raising awareness of their importance

• Compare performance of a local or regional industry sector with that of the State and Nation

• Define relationships among the various industries• Develop improved strategies for workforce and

economic development planning

Questions/ Comments