Business: Paralegal Studies March 2012 Needs Assessment

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1 Business: Paralegal Studies March 2012 Needs Assessment Prepared by Elisa Lewis Date: March 6, 2012 Business: Paralegal Studies 1

2 Scope Data compiled in this report covers San Bernardino, Riverside, Orange, and Los Angeles counties. Data were drawn from external sources, including the Employment Development Department s California Labor Market Information and the U.S. Department of Education s Integrated Postsecondary Education Data System (IPEDS), as well as Chaffey College s Colleague Administrative database. Data Sources and Calculations Educational Program Data TOP Code Program of Study Paralegal The Taxonomy of Programs (TOP) is a standardized system used at the state level to classify programs and courses at California Community Colleges that are intended to achieve the same outcome. The Business: Paralegal Studies program at Chaffey College is classified under the Paralegal TOP code. CIP Code Program of Study Legal Assistant/Paralegal The Classification of Instructional Programs (CIP) is a standardized coding system used at the federal level to facilitate accurate tracking, assessment, and reporting of fields of study and program completion at educational institutions throughout the country. This report draws on the Legal Assistant/Paralegal CIP code, which maps to the Paralegal TOP code, to compare Chaffey College to other institutions and examine employment trends. Completions Data Degree and certificate data regarding students at Chaffey College were collected from the Colleague Administrative database. Degree and certificate data for all comparison schools were collected from the U.S. Department of Education s Integrated Postsecondary Education Data System (IPEDS). All comparison institutions included in this report are postsecondary and have provided data to IPEDS. IPEDS defines postsecondary education as a formal program designed primarily for students beyond high school age. These include academic, vocational, and continuing professional education, and exclude avocational and adult basic education programs. Occupational Data SOC Code Occupational Title Paralegals and Legal Assistants Title Examiners, Abstractors, and Searchers Legal Support Workers, All Other The Standard Occupational Classification (SOC) system is used by federal statistical agencies to classify workers into occupational categories. The Legal Assistant/Paralegal CIP code was mapped to the three SOC codes listed in the table above using the crosswalk described in the paragraph below. 2

3 Educational Program to Occupation Crosswalk The TOP-CIP-SOC Crosswalk (Employment Development Department, 2007) was used in this report to map TOP codes to CIP and SOC codes. This crosswalk allows the user to estimate labor market demand for California Community College program completers using SOC-based projections from the California Labor Market Information Division. Industry Data The North American Industry Classification System (NAICS) is used by federal statistical agencies to classify business establishments for the purpose of conducting and reporting research on the U.S. business economy. The Standard Occupation Classification codes are mapped to industry data by the California Labor Market Information Division. Industry information is used to geographically map the business locations of potential employers as well as to observe trends across the industries that employ the occupations identified above. 3

4 Introduction and Contents Contents Background Information 5 Regional Job Outlook 8 Largest and Fastest Growing Industry Employers 11 Regional Graduation Summary 15 Chaffey College s Performance on Core Indicators 17 Map of Competitor Institutions 18 Purpose and Goals Chaffey College currently offers a Business: Paralegal Studies certificate program consisting of 27 units. The following is a description of the Business: Paralegal Studies program as outlined in the Catalog: The Paralegal Studies certificate program is intended to prepare students for employment as paralegals in various legal sectors. The American Bar Association (ABA) By- Laws, Section uses the terms paralegal and legal assistant interchangeably referring to persons who, although not members of the legal profession, are qualified through education, training, work experience, and are employed or retained by a lawyer, law office, governmental agency, or other entity in a capacity or function which involves the performance under the direction and supervision of an attorney, of specifically delegated substantive legal work. The Paralegal Studies certificate program emphasizes practical application and the development of up-to-date paralegal related job skills in addition to teaching legal theory. The program is designed to enhance the ability of students to reason, understand and apply correct principles of law by teaching analytical and critical thinking skills. Graduates of the program will possess skills to enter the paralegal profession. It also allows those already in the paralegal line of work to improve their understanding of the paralegal profession. California State statute requires all paralegals to be certified by an accredited educational institution. Chaffey College s Paralegal Studies certificate program meets and exceeds such mandates because Chaffey College is approved by the California Department of Education and the Western Association for Schools and Colleges, and the certificate is awarded to students who have successfully completed 27 semester units in law-related courses. Chaffey College s Paralegal Studies certificate program also exceeds the American Bar Association s guideline for paralegal educational requirement. The purpose of this report is to integrate and analyze data from multiple sources to determine labor market needs for the Business and Office Technologies program at Chaffey College. Regional Definitions Inland Empire includes the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA) Los Angeles County includes the Los Angeles- Long Beach-Glendale Metropolitan Division Orange County includes the Santa Ana- Anaheim-Irvine Metropolitan Division Key Terms and Concepts Replacement Jobs: Replacement jobs refer to the number of job openings due to workers leaving an occupation. Annual Openings: Annual openings are calculated by adding the number of new jobs to the number of replacement jobs, divided by the number of years in the projection period. Projections: Projections of employment are calculated by the Employment Development Department and are based on a mathematical formula that includes historical employment and economic indicators along with national, state, and local trends. Occupation: Jobs are grouped into occupations using the federal Standard Occupational Classification (SOC) system. Industry: Occupations are grouped into industries using the North American Industry Classification System (NAICS). Wages: Hourly wages are reported in percentiles and averages. The 25 th percentile is a useful proxy of entrylevel wages and the 75 th percentile of experienced-level wages. 4

5 Background Information Business: Paralegal Studies Business: Paralegal Studies programs in California Community are instructional programs that study the principles and procedures developed and enforced by institution of government for the social order in the form of legislation, decisions, regulations, and orders. Course topics usually cover legal terminology, forms and procedures; general legal concepts; principles and techniques of legal research, including analysis of legal issues, documentation of appropriate legal precedents, and presentation of research findings useable by attorneys, judges, and others. 1 The descriptions of job duties for paralegal-related occupations are provided by the Occupational Information Network. 2 Paralegals and Legal Assistants 2 Paralegals and Legal Assistants assist lawyers by investigating facts, preparing legal documents, or researching legal precedent. Conduct research to support a legal proceeding, to formulate a defense, or to initiate legal action. Typical Tasks Prepare affidavits or other documents, such as legal correspondence, and organize and maintain documents in paper or electronic filing system. Prepare for trial by performing tasks such as organizing exhibits. Prepare legal documents, including briefs, pleadings, appeals, wills, contracts, and real estate closing statements. Meet with clients and other professionals to discuss details of case. File pleadings with court clerk. Gather and analyze research data, such as statutes, decisions, and legal articles, codes, and documents. Call upon witnesses to testify at hearing. Investigate facts and law of cases and search pertinent sources, such as public records, to determine causes of action and to prepare cases. Direct and coordinate law office activity, including delivery of subpoenas. Keep and monitor legal volumes to ensure that law library is up-to-date. 1 California Community Colleges, Chancellor s Office, Taxonomy of Programs, Sixth Edition (Corrected Version). 2 O*Net Online: 5

6 Title Examiners, Abstractors, and Searchers 2 Title Examiners, Abstractors, and Searchers search real estate records, examine titles, or summarize pertinent legal or insurance documents or details for a variety of purposes. Title Examiners, Abstractors, and Searchers may compile lists of mortgages, contracts, and other instruments pertaining to titles by searching public and private records for law firms, real estate agencies, or title insurance companies. Typical Tasks Prepare lists of all legal instruments applying to a specific piece of land and the buildings on it. Examine documentation such as mortgages, liens, judgments, easements, plat books, maps, contracts, and agreements in order to verify factors such as properties' legal descriptions, ownership, or restrictions. Read search requests in order to ascertain types of title evidence required and to obtain descriptions of properties and names of involved parties. Copy or summarize recorded documents, such as mortgages, trust deeds, and contracts that affect property titles. Examine individual titles in order to determine if restrictions, such as delinquent taxes, will affect titles and limit property use. Prepare reports describing any title encumbrances encountered during searching activities, and outlining actions needed to clear titles. Verify accuracy and completeness of land-related documents accepted for registration; prepare rejection notices when documents are not acceptable. Confer with realtors, lending institution personnel, buyers, sellers, contractors, surveyors, and courthouse personnel in order to exchange title-related information or to resolve problems. Enter into recordkeeping systems appropriate data needed to create new title records or update existing ones. Direct activities of workers who search records and examine titles, assigning, scheduling, and evaluating work, and providing technical guidance as necessary. 2 O*Net Online: 6

7 Legal Support Workers, All Other 2 Occupational description and typical tasks not available. 2 O*Net Online: 7

8 Regional Job Outlook Projected Regional Job Outlook The table below displays 2008 employment estimates and 2018 projections for Business: Paralegal Studies-related jobs. Job openings for Paralegals and Legal Assistants are plentiful across all regions of interest. Job openings for Title Examiners, Abstractors, and Searchers are on the decline. Legal Support Workers, All Other jobs are growing at half the rate of Paralegals, but growing nonetheless. Total Estimated 2008 Jobs Total Projected 2018 Jobs Projected Growth (%) Ave. Annual New Job Openings Ave. Annual Replacement Job Openings Ave. Annual Total Job Openings Paralegals and Legal Assistants State of California 28,300 33,800 5,500 (19.4%) Inland Empire 980 1, (13.3%) Los Angeles CO 8,880 10,430 1,550 (17.5%) Orange CO 3,430 4, (27.1%) Title Examiners, Abstractors, and Searchers State of California 4,800 4, (-10.4%) Inland Empire (-17.2%) Los Angeles CO 1,080 1, (-7.4%) Orange CO (-6.7%) Legal Support Workers, All Other State of California 7,000 7, (8.6%) Inland Empire (5.9%) Los Angeles CO 1,900 2, (6.3%) Orange CO (13.0%) Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited January 23, 2012). 8

9 Projected Regional Job Growth The graphs below show the projected growth from 2008 to 2018 of Business: Paralegal Studies-related jobs. As the graphs show, the number of Paralegals and Assistants jobs is expected to grow across all regions of interest, especially in Orange County. However, Title Examiners, Abstractors, and Searchers jobs are expected to decline across all regions of interest. Legal Support Workers jobs look to be growing as well. % Growth California Paralegals and Legal Assistants Inland Empire Los Angeles County Orange County % Growth Title Examiners, Abstractors, and Searchers California Inland Empire Los Angeles County Orange County % Growth California Legal Support Workers, All Other Inland Empire Los Angeles County Orange County Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited January 23, 2012). 9

10 Regional Hourly Wages This table displays the First Quarter of 2011 hourly wage statistics of Business: Paralegal Studies-related jobs. In general, wages are fairly comparable across all jobs and regions. An employee in one of these jobs can expect to earn anywhere from $17/hr to $36/hr, depending on the specific job and the employee s level of experience. Mean Hourly Rate 25 th Percentile Median Hourly Rate 75 th Percentile Paralegals and Legal Assistants State of California $29.15 $21.68 $28.30 $35.50 Inland Empire $30.39 $22.06 $27.66 $36.27 Los Angeles CO $29.67 $21.59 $28.38 $36.93 Orange CO $28.58 $20.34 $27.12 $34.15 Title Examiners, Abstractors, and Searchers State of California $25.65 $18.00 $24.18 $32.28 Inland Empire $21.82 $16.90 $21.13 $26.99 Los Angeles CO $25.09 $17.72 $22.81 $32.38 Orange CO $26.03 $18.05 $25.05 $32.51 Legal Support Workers, All Other State of California $28.91 $21.07 $27.38 $34.77 Inland Empire $23.48 $17.85 $21.00 $27.38 Los Angeles CO $28.33 $22.31 $27.22 $33.18 Orange CO $24.91 $17.80 $23.56 $31.36 Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited January ). 10

11 Largest and Fastest Growing Industry Employers Largest Industry Employers of Business: Paralegal Studies-Related Occupations The graphs below display the 2008 staffing patterns of the largest industries employing Business: Paralegal Studies-related occupations across the state of California. Each of these occupations is employed in at least 3 industries. Number of Employees 25,000 20,000 15,000 10,000 5,000 0 Paralegals and Legal Assistants Title Examiners, Abstractors, and Searchers Number of Employees 1,800 1,600 1,400 1,200 1, Insurance Carriers Activities Related to Real Estate Offices of Real Estate Agents & Brokers 11

12 Number of Employees 1,800 1,600 1,400 1,200 1, Legal Support Workers, All Other Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited January 23, 2012). 12

13 Change Over Time of the Largest Industry Employers of Business and Office Technologies-Related Occupations The graphs below display projections of staffing changes from of the largest industries employing Business: Paralegal Studies-related occupations in the state of California. Percent Change Paralegals and Legal Assistants Percent Change Title Examiners, Abstractors, and Searchers Insurance Carriers Activities Related to Real Estate Offices of Real Estate Agents & Brokers 13

14 120 Legal Support Workers, All Other Percent Change Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited January 23, 2012). Other Industries with Growth in Business: Paralegal Studies-Related Occupations Aside from the industries that were displayed in the graphs above, one of the Business: Paralegal Studies-related occupations is associated with growth in an additional industry. The table below displays the industry along with its numeric change and percent growth from 2008 to Industry Employment in California Numeric Change Percent Growth Paralegals and Legal Assistants Architectural and Engineering Services % Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited January 23, 2012). 14

15 Regional Graduation Summary Education and Training 3 Education and training requirements for Business: Paralegal Studies-related occupations vary. Paralegals and Legal Assistants acquire skills in various ways. Employers prefer Paralegals who are college graduates of paralegal programs or college graduates who have completed paralegal certificate programs. Some employers train legal secretaries or other staff for paralegal positions. Many employers want a Paralegal who has experience in a particular specialty, such as patent prosecution, real estate, tax preparation, nursing, or criminal justice. Some will hire those with no legal experience but experience in a technical field useful to the law firm such as tax preparation, estate practice, nursing, criminal justice, or health administration (for personal injury practice). California offers Regional Occupational Programs (ROP) for Careers in Paralegal. Education and training for Title examiners, Abstractors, and Searchers and Legal Support Workers is similar to that of Paralegals and Legal Assistants. Regional Completers in Business: Paralegal Studies Programs The table below displays the number of program completers in the academic year at regional institutions offering Business: Paralegal Studies-related programs. Besides Chaffey College, there are 31 institutions offering degrees or certificates below the baccalaureate level across the four county region. Institution Name < 1 year Certificate 1 to < 2 year Certificate Award Level Associate s Degree 2 to < 4 year Certificate Chaffey College Cerritos College Coastline Community College College of the Canyons El Camino College Compton Center El Camino Community College District Fremont College Fullerton College ICDC College InterCoast Colleges-Burbank InterCoast Colleges-Riverside InterCoast Colleges-West Covina Irvine Valley College Kaplan College-Palm Springs Kensington College Los Angeles City College Los Angeles Mission College Labor Market Info, Employment Development Department, California Occupational Guides, on the Internet at: (visited January 25, 2012). 15

16 Los Angeles Southwest College Mt San Antonio College Mt San Jacinto Community College District North-West College-Pasadena Pasadena City College Platt College-Los Angeles Platt College-Ontario Riverside City College Sage College San Bernardino Valley College Santa Ana College South Coast College Victor Valley College West Los Angeles College Total Note: -- indicates that this type of degree is not offered. 0 indicates that this degree/certificate level is offered but no degrees or certificates were granted. Source: National Center for Education Statistics, U.S. Department of Education, Integrated Postsecondary Education Data System, on the Internet at: (visited January 25, 2012) 16

17 Chaffey College s Performance on Core Indicators The Perkins IV Career and Technical Education Improvement Act of 2006 mandates that all state and local postsecondary institutions provide data on six core performance indicators for their career and technical education programs. These indicators are: 1) Technical Skill Attainment; 2) Completions; 3) Persistence and Transfer; 4) Employment; 5) Non-traditional Participation; and 6) Non-traditional Completion. Performance goals are set at the state and local levels and progress is monitored based on a comparison between the actual percentage of students who master each performance area and the negotiated levels of performance Chaffey College Performance on Core Indicators The table below displays negotiated and actual core performance indicator levels for all Chaffey College students classified under the Paralegal TOP code. These students performed above district negotiated levels on each core indicator with the exceptions of Core Indicators 3 and 4. Core Performance Indicators Negotiated Level State District Chaffey College Performance Percent Above or Below District Negotiated Level Paralegal Core 1 Technical Skill Attainment 88.82% 88.82% 93.02% 4.2% Core 2 Completions- Credential, Certificate, Degree, or Transfer Ready 80.93% 76.88% 90.48% 13.6% Core 3 Persistence and Transfer 85.86% 85.86% 72.09% -13.8% Core 4 Employment 81.48% 81.48% 62.50% -19.0% Core 5a Non-traditional Participation 22.08% 20.53% 23.26% 2.7% Core 5b Non-traditional Completions 25.00% 22.75% 33.33% 10.6% Source: CA Community Colleges Reporting Services, Paralegal, College Core Indicator Information by 6-Digit TOP ( ). 17

18 Map of Competitor Institutions Legal Services employ the largest numbers of Paralegals and Legal Assistants in the state of California. Across the four counties of interest, there are 22,898 Legal Service employers listed by the California Labor Market (15,006 in Los Angeles County, 4,989 in Orange County, 1,584 in Riverside County, and 1,319 in San Bernardino County). This map illustrates the location of the largest 2.5% of all Legal Services in each county. Also included in the map are the locations of Chaffey College and other competitor institutions offering degrees or certificates in Business: Paralegal Studies programs. 18

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