Commonwealth of Virginia Job Vacancy Survey

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1 a Commonwealth of Virginia Job Vacancy Survey Prepared for: Virginia Employment Commission Richmond, Virginia Prepared by: Virginia Center for Urban Development and the Survey and Evaluation Research Laboratory L. Douglas Wilder School of Government and Public Affairs Virginia Commonwealth University October W. Franklin Street PO Box Richmond, Virginia (804)

2 TABLE OF CONTENTS Page Number EXECUTIVE SUMMARY... Overview... Survey Sample... Key Findings... i i i ii INTRODUCTION... RESEARCH METHODOLOGY... Categories for the Analysis... Industry Sectors... Workforce Investment Board Regions... Employer Size Categories... Occupational Classification Codes... Job Vacancy Survey... Developing the Sample... Survey Implementation... Response Rate... Sampling Error... Caveats... SURVEY RESULTS... Summary of Job Vacancy Data... Expectations about Short- Run Changes in Employment... Employees Hired During Past Twelve Months... Degree to Which New Employees have Met Expectations continued

3 SURVEY RESULTS, continued Summary of Job Vacancy Data, continued TABLE OF CONTENTS, continued Page Number Estimated Number of Job and Job Vacancy Rate... Type of Positions and Duration of Job... Educational, Work Experience, and Certification Requirements... Compensation Provided... Wages and Salaries... Benefits... Job by Industry... Agriculture, Forestry, Fishing and Hunting (NAICS 11)... Mining, Quarrying, and Oil and Gas Extraction (NAICS 21)... Utilities (NAICS 22)... Construction (NAICS 23)... Manufacturing (NAICS 31, 32, 33)... Wholesale Trade (NAICS 42)... Retail Trade (NAICS 44 and 45)... Transportation and Warehousing (NAICS 48 and 49)... Information (NAICS 51)... Finance and Insurance (NAICS 52)... Real Estate and Rental and Leasing (NAICS 53)... Professional, Scientific, and Technical Services (NAICS 54)... Management of Companies and Enterprises (NAICS 55)... Administrative and Support and Waste Management Services (NAICS 56) continued

4 SURVEY RESULTS, continued TABLE OF CONTENTS, continued Page Number Job Vacancy by Industry, continued Educational Services (NAICS 61)... Health Care and Social Assistance (NAICS 62)... Arts, Entertainment, and Recreation (NAICS 71)... Accommodation and Food Services (NAICS 72)... Other Services - except Public Administration (NAICS 81)... Public Administration (NAICS 92) Job by Workforce Investment Board Region... Southwest Virginia Workforce Investment Board (WIB I)... New River / Mount Rogers Workforce Investment Board (WIB II)... Western Virginia Workforce Development Board (WIB III)... Shenandoah Valley Workforce Investment Board (WIB IV)... Piedmont Workforce Network (WIB VI)... Virginia s Region 2000 Partnership (WIB VII)... South Central Workforce Investment Board (WIB VIII)... Resource: Capital Region Workforce Partnership (WIB IX)... Northern Virginia Workforce Investment System (WIB XI)... Alexandria / Arlington Workforce Investment Board (WIB XII)... Bay Consortium Workforce Investment Board (WIB XIII)... Peninsula Council for Workforce Development (WIB XIV)... Crater Regional Workforce Investment Group (WIB XV)... Opportunity Inc. - Hampton Roads Workforce Development Board (WIB XVI) West Piedmont Workforce Investment Board (WIB XVII) continued

5 TABLE OF CONTENTS, continued Page Number SURVEY RESULTS, continued Job by Employer Size to 9 Employees to 24 Employees to 99 Employees to 499 Employees to 999 Employees ,000 or More Employees Job by Occupational Group... Management (SOC )... Business and Financial Operations (SOC )... Computer and Mathematical (SOC )... Architecture and Engineering (SOC )... Life, Physical, and Social Sciences (SOC )... Community and Social Services (SOC )... Legal Occupations (SOC )... Education, Training, and Library (SOC )... Arts, Design, Entertainment, Sports, and Media (SOC )... Healthcare Practitioners and Technical (SOC )... Healthcare Support (SOC )... Protective Service (SOC )... Food Preparation and Serving Related (SOC )... Building and Grounds Cleaning and Maintenance (SOC )... Personal Care and Service (SOC ) continued

6 SURVEY RESULTS, continued TABLE OF CONTENTS, continued Page Number Job by Occupational Group, continued Sales and Related (SOC )... Office and Administrative Support (SOC )... Farming, Fishing, and Forestry (SOC )... Construction and Extraction (SOC )... Installation, Maintenance, and Repair (SOC )... Production (SOC )... Transportation and Material Moving (SOC )... Military Specific (SOC )... Non- Classifiable (SOC )... Top 10 Job APPENDIX A: North American Industry Classification System (NAICS) - Major Industry Sectors NAICS Codes, Industry Names, and Major Industry Sectors Descriptions... A- 1 APPENDIX B: Localities Comprising Virginia s Workforce Investment (WIB) Regions Locality Names and FIPS / ANSI Code Numbers... B- 1 Map of Virginia s WIB Regions... B- 4 APPENDIX C: Major Occupational Groups SOC Codes, Occupational Groups, and Example Occupations... C- 1 continued

7 TABLE OF CONTENTS, continued APPENDIX D: Survey and Related Documents Page Number Summary... D- 1 Survey Front... D- 2 Survey Back... D- 3 Invitation Letter... D- 4 Variations to the Invitation Letter... D- 5 Reminder Postcard... D- 10 Variations to the Reminder Postcard... D- 11 Second Reminder Letter... D- 12 Variations to the Second Reminder Letter... D- 13 APPENDIX E: Survey Response Rates by Major Industry Sectors, Workforce Investment Board (WIB) Regions, and Employer Size Categories Major Industry Sectors... E- 1 WIB Regions... E- 4 Employer Size Categories... E- 6 APPENDIX F: Survey Sampling Errors by Major Industry Sectors, Workforce Investment Board (WIB) Regions, and Employer Size Categories Major Industry Sectors... F- 1 WIB Regions... F- 3 Employer Size Categories... F- 5 continued

8 Appendix G: TABLE OF CONTENTS, continued Data Summaries by Workforce Investment Board (WIB) Regions Page Number WIB I: Southwest Virginia Workforce Investment Board... G- 1 WIB II: New River / Mount Rogers Workforce Investment Board... G- 3 WIB III: Western Virginia Workforce Development Board... G- 5 WIB IV: Shenandoah Valley Workforce Investment Board... G- 7 WIB VI: Piedmont Workforce Network... G- 9 WIB VII: Virginia s Region 2000 Partnership... G- 11 WIB VIII: South Central Workforce Investment Board... G- 13 WIB IX: Resource: Capital Region Workforce Partnership... G- 15 WIB XI: Northern Virginia Workforce Investment System... G- 17 WIB XII: Alexandria / Arlington Workforce Investment Board... G- 19 WIB XIII: Bay Consortium Workforce Investment Board... G- 21 WIB XIV: Peninsula Council for Workforce Development... G- 23 WIB XV: Crater Regional Workforce Investment Group... G- 25 WIB XVI: Opportunity Inc. - Hampton Roads Workforce Development Board... G- 27 WIB XVII: West Piedmont Workforce Investment Board... G- 29 Copyright 2012 Virginia Commonwealth University Richmond, Virginia

9 TABLES AND FIGURES Page Number Table 1. Major Industry Sectors... 3 Table 2. Workforce Investment Board (WIB) Regions in Virginia... 4 Figure 1. Map of Virginia s WIB Regions... 5 Table 3. Employer Size Categories... 5 Table 4. Major Standard Occupational Classification (SOC) System Codes... 6 Table 5. Table 6. Table 7. Table 8. Table 9. Figure 2. Table 10. Figure 3. Table 11. Figure 4. Table 12. Expected Change in the Number of Jobs During the Next Six Months of Employers Indicating that Employees Hired in the Past 12 Months Met Their Expectations for Specific Skills of Employers Indicating that Employees Hired in the Past 12 Months Met Their Expectations for Specific Skills Omitting the Not Applicable Responses Summary of Job Vacancy Data Estimated Number of Job and Job Vacancy Rate Summary of Job Vacancy Data Type of Position, Duration of Position, and Length of Job Vacancy of Job by Length of Vacancy Summary of Job Vacancy Data Educational, Work Experience, and Certification Requirements of Job by Educational Requirements Summary of Job Vacancy Data Compensation and Benefits Provided of Job Offering Specific Fringe Benefits Estimated Full- Time, Part- Time, and Total Job by Industry Ranked by Estimated Number of Total continued

10 TABLE AND FIGURES, continued Page Number Figure 5. Table 13. Table 14. Figure 6. Table 15. Table 16. Figure 7. Table 17. Figure 8. Table 18. Table 19. Figure 9. Table 20. Table 21. of Total Job by Industry Job Vacancy Data by Industry Statewide Ranked by Estimated Number of Job Estimated Full- Time, Part- Time, and Total Job by WIB Region Ranked by Estimated Number of Total of Total Job by WIB Region Job Vacancy Data by WIB Region Ranked by Estimated Number of Job Summary of Job Vacancy Data Average Hourly Equivalent Wage by WIB Region Job Vacancy Rate and Average Hourly Wage Equivalent Estimated Full- Time, Part- Time, and Total Job by Employer Size Category Ranked by Estimated Number of Total of Total Job by Employer Size Job Vacancy Data by Employer Size Category - Statewide Ranked by Estimated Number of Job Estimated Full- Time, Part- Time, and Total Job by Occupational Group Ranked by Estimated Number of Total of Total Job by Occupational Group Job Vacancy Data by Occupation Statewide Ranked by Estimated Number of Job Top 10 Job Ranked by Estimated Number of continued

11 TABLE AND FIGURES, continued Page Number Table A- 1. Figure B- 1. Table C- 1. Table E- 1. Table E- 2. Table E- 3. Table E- 4. Table E- 5. Table E- 6. Table F- 1. Table F- 2. Table F- 3. Table F- 4. Table F- 5. Major Industry Sector Descriptions... A- 1 Map of Virginia s WIB Regions... B- 4 Major Occupational Groups - Example Occupations... C- 1 Response Rates by Major Industry Sectors Arranged by NAICS Code Number... E- 1 Response Rates by Major Industry Sectors Ranked by Response Rate... E- 3 Response Rates by Workforce Investment Board (WIB) Regions Arranged by WIB Number... E- 4 Response Rates by Workforce Investment Board (WIB) Regions Ranked by Response Rate... E- 5 Response Rates by Employer Size Category Arranged by Employer Size Category Number... E- 7 Response Rates by Employer Size Category Ranked by Response Rate... E- 7 Estimated Sampling Error by Industry Arranged by NAICS Code Number... F- 1 Estimated Sampling Error by Industry Ranked by Sampling Error... F- 2 Estimated Sampling Error by WIB Region Arranged by WIB Number... F- 4 Estimated Sampling Error by WIB Region Ranked by Sampling Error... F- 5 Estimated Sampling Error by Employer Size Category Arranged by Employer Size Category Number... F- 6 continued

12 TABLE AND FIGURES, continued Page Number Table F- 6. Table G- 1. Table G- 2. Table G- 3. Table G- 4. Table G- 5. Table G- 6. Table G- 7. Table G- 8. Table G- 9. Table G- 10. Table G- 11. Table G- 12. Table G- 13. Estimated Sampling Error by Employer Size Category Ranked by Sampling Error... F- 6 Job Vacancy Data by Industry WIB I Ranked by Estimated Number of Job... G- 1 Job Vacancy Data by Industry WIB II Ranked by Estimated Number of Job... G- 3 Job Vacancy Data by Industry WIB III Ranked by Estimated Number of Job... G- 5 Job Vacancy Data by Industry WIB IV Ranked by Estimated Number of Job... G- 7 Job Vacancy Data by Industry WIB VI Ranked by Estimated Number of Job... G- 9 Job Vacancy Data by Industry WIB VII Ranked by Estimated Number of Job... G- 11 Job Vacancy Data by Industry WIB VIII Ranked by Estimated Number of Job... G- 13 Job Vacancy Data by Industry WIB IX Ranked by Estimated Number of Job... G- 15 Job Vacancy Data by Industry WIB XI Ranked by Estimated Number of Job... G- 17 Job Vacancy Data by Industry WIB XII Ranked by Estimated Number of Job... G- 19 Job Vacancy Data by Industry WIB XIII Ranked by Estimated Number of Job... G- 21 Job Vacancy Data by Industry WIB XIV Ranked by Estimated Number of Job... G- 23 Job Vacancy Data by Industry WIB XV Ranked by Estimated Number of Job... G- 25 continued

13 TABLE AND FIGURES, continued Page Number Table G- 14. Table G- 15. Job Vacancy Data by Industry WIB XVI Ranked by Estimated Number of Job... G- 27 Job Vacancy Data by Industry WIB XVII Ranked by Estimated Number of Job... G- 29

14 EXECUTIVE SUMMARY Overview The Virginia Employment Commission partnered with Virginia Commonwealth University to develop and administer a Job Vacancy Survey for the Commonwealth. The objectives of this study were as follows: to determine number, type, and location of job vacancies; to learn about the wages, salaries, and benefits associated with these jobs; and to understand the minimum job requirements (including education, previous work experience, and licenses or certifications). It is anticipated that this information will have multiple uses and will assist many types of users, including state agencies, higher education institutions (especially community colleges), employers, and even individual job seekers. Some uses of these data include the following: Provide insight into the labor needs and skill shortages in key regions across Virginia; Allow for the comparison of employment benefits and compensation within and across industries and occupations; Assist with the development of job training and other workforce programs; and Identify industries and occupations that are most likely to have job openings. Using data from a sample of 7,956 establishments, a total of 63,070 job vacancies in Virginia were estimated across all selected industry sectors during the eight- month survey period from September 2011 through April Survey Sample Over 18,700 establishments across Virginia were asked to participate in this research by completing the survey questions. This sample was selected from among all Virginia establishments covered by Virginia s unemployment insurance tax laws. It was representative of Virginia s fifteen (15) Workforce Investment Board (WIB) regions, the twenty Page i

15 (20) major NAICS industry sectors, and six (6) employer size categories. Surveys were sent out in batches across the eight- month period from September 2011 through April A total of 7,956 establishments responded. The analysis presented in this report was based on these survey results. Key Findings Ø A majority of respondents expected no change in employment during the next six months Respondents were asked to indicate their expectations about the change in the number of jobs at the job site during the next six months. Two- thirds (68 percent) of respondents said that they expected the number of jobs at the establishment to Stay the Same, 10 percent expected an increase in employment, and 7 percent expected a decrease. An additional 13 percent answered that they did not know how the number of jobs would change over the next six months. Ø Employees hired during the past twelve months strongly met employer expectations for key skills Sixty- nine (69) percent of respondents indicated that employees had been hired during the past twelve months for the job site referenced on the survey. These respondents were further asked to indicate whether their new hires had met their expectations with respect to skills in oral and written communications, math, problem solving, information technology, and leadership ability. Considering only those respondents for which the particular skill was applicable (i.e., they did not respond with not applicable ), 93 percent of employers said that new hires met their expectations for oral communication, 90 percent with written communication, 88 percent for math skills, 82 percent on problem solving, 85 percent for information technology, and 76 percent with leadership ability. Page ii

16 Ø Statewide, the job vacancy rate was 1.7 percent for every 100 jobs, there were 1.7 job vacancies Of the 7,956 surveys that were returned, 43 percent gave details about at least one job vacancy. Using these responses, it was estimated that there were 63,070 total job vacancies in Virginia during the survey period September 2011 through April Combining this information with an estimate of total annual employment in Virginia (almost 3.58 million during 2011) resulted in a job vacancy rate of 1.73 percent. At the regional level, the highest job vacancy rates were in Southwest Virginia (2.6 percent), the Capital Region (2.2 percent), Western Virginia (2.2 percent), and New River / Mount Rogers (2.2 percent). The lowest job vacancy rates were in the Bay Consortium region (1.2 percent) and the Shenandoah Valley (1.5 percent). Ø Over two- thirds of the job vacancies were for full time positions and most vacancies were permanent jobs When looking at the type of positions that were available, 68 percent of the vacancies were for full- time positions and 90 percent were for permanent positions (i.e., not temporary or seasonal jobs). Ø Half of the vacancies had been open for less than 30 days At the time the employers were surveyed, about half (54 percent) of the vacancies had been open for less than 30 days. An additional 19 percent had been open 30 to 59 days and 21 percent had been open for 60 days or more. Ø Over three- fourths of job vacancies required education above the high school level. One- third of vacancies required a college degree Respondents were asked to indicate the level of education typically required for their job vacancies. Eighty (80) percent of the vacancies required more than a high school degree or GED. Thirty- three (33) percent of vacancies required a college degree i.e., an associate s degree (6 percent), a bachelor s degree (22 percent), or an advanced degree (6 percent). Eighteen (18) percent of the vacancies had no educational requirements. Page iii

17 Ø Three- fourths of job vacancies required related work experience When asked about previous work experience required for a job vacancy, three- fourths (75 percent) of respondents indicated that the vacancy required related work experience. An additional 5 percent answered that unrelated work experience was required, and 19 percent indicated that no previous work experience was necessary. Ø Almost one- third of all vacancies required some sort of formal licensing or certification, though the type of license required is not known Thirty- one (31) percent of the job vacancies had some requirement for a license or certification. Because the respondents were not asked to explain the type of license or certification that was needed for the job, though, the requirements may range from specialized licenses (such as a tradesman s license for an electrician) to more common licenses (such as a valid driver s license). Ø Most full- time vacancies, and some part- time vacancies, offered benefits to employees Eighty- two (82) percent of full- time vacancies provided health insurance, 82 percent provided paid sick leave or paid vacation, and 71 percent provided retirement savings or a pension. In comparison 16 percent of part- time vacancies provided health insurance, 14 percent provided paid sick leave or paid vacation, and 10 percent provided retirement savings or a pension. Ø Over half of all job vacancies were in five major industry sectors: Health Care and Social Assistance, Retail Trade, Professional, Scientific and Technical Services, Public Administration, and Accommodation and Food Services Ranked by the number of job vacancies, five of the twenty major industry sectors represented 58 percent of all job vacancies. These five industries were as follows: Health Care and Social Assistance (14.8 percent of vacancies), Retail Trade (11.8 percent), Professional, Scientific and Technical Services (11.6 percent), Public Administration (9.8 percent), and Accommodation and Food Services (9.7 percent). Page iv

18 Ø Over half of Virginia s estimated job vacancies were in only three of the Workforce Investment Board (WIB) regions During the survey period, 54 percent of job vacancies were located in three of Virginia s fifteen WIB regions. These areas were Northern Virginia - WIB XI (24 percent of total vacancies), Capitol Region - WIB IX (18 percent), and Hampton Roads - WIB XVI (12 percent). Ø The largest percentages of job vacancies were at mid- sized establishments (25 to 99 and 100 to 499 employees) Fifty- nine (59) percent of vacancies were at mid- sized establishments. This included sites that had 25 to 99 employees (37 percent of vacancies) and sites that had 100 to 499 employees (23 percent of vacancies). Ø Seven of the major occupational groups accounted for almost one- third of total job vacancies: Office and Administrative Support, Sales and Related, Food Preparation and Serving Related, Management, Transportation and Material Moving, Production, and Healthcare Practitioners and Technical. Almost one- third (31 percent) of total job vacancies were classified within 7 of the major occupational groups. (This analysis used a total of 23 occupational groups, which excluded Military Specific Occupations, but included Non- Classifiable occupations.) These groups were as follows: Office and Administrative Support (12 percent), Sales and Related (10 percent), Food Preparation and Serving Related (8 percent), Management (7 percent), Transportation and Material Moving (6 percent), Production (6 percent), and Healthcare Practitioners and Technical (5 percent). Page v

19 INTRODUCTION TION The Virginia Employment Commission s (VEC) Economic Information Services Division / Labor Market and Demographic Analysis partnered with the L. Douglas Wilder School of Government and Public Affairs at Virginia Commonwealth University (VCU) to design and implement a Job Vacancy Survey for the Commonwealth of Virginia. Two research divisions of the Wilder School were involved in the project the Virginia Center for Urban Development (VCUD) and the Survey and Evaluation Research Laboratory (SERL). This report presents findings from the survey of Virginia employers and the analysis of job vacancies. Over 18,700 employers from across Virginia were asked to participate in this research by completing the survey questions. This sample was selected from among all Virginia establishments covered by Virginia s unemployment insurance tax laws and was representative of each of the following: Virginia s fifteen (15) Workforce Investment Board (WIB) regions, the twenty (20) major industry sectors, and six (6) employer size categories (i.e., number of employees). The survey was administered from September 2011 through April A total of 7,956 surveys were returned by mail, fax, and online, resulting in final response rate of 44 percent. Responses were weighted in order to estimate the number and type of job vacancies. Using data from this sample, a total of 63,070 job vacancies in Virginia were estimated across all selected industry sectors. These estimated vacancies are based on a point in time snapshot that occurred when the respondents completed their surveys. Employers were asked to provide the number of vacancies (both full- time and part- time) at a specific location and also the following details for each job title in which they had vacancies: Number of full- time and part- time vacancies with that job title; Number of vacancies that were seasonal or temporary; continued Page 1

20 Amount of time that the employer has been trying to fill the vacancies (if multiple vacancies, amount of time for the oldest vacancy); Level of education typically required for the job; Level of work experience typically required; Expected wage or salary paid to both full- time and part- time employees with this job title; Type of benefits offered to full- time and part- time employees; and Requirement of a license or certification to hold the position. The Job Vacancy Survey provides information that is beneficial to many users: state agencies, higher education institutions (especially community colleges), employers, and even individual job seekers. Some uses of these data are listed below: Provide insight into the labor needs and skill shortages in key regions across Virginia; Allow for the comparison of employment benefits and compensation within and across industries and occupations; Assist with the development of job training and other workforce programs; and Identify industries and occupations that are most likely to have job openings. This project was initiated under the leadership of Mr. Donald Lillywhite, Director of the VEC s Economic Information Services (EIS) Division, and Mr. David Tysinger, Economist, EIS Labor Market and Demographic Analysis. RESEARCH METHODOLOGY Categories for the Analysis Data for this study were examined by the following four categories: major industry sectors (2- digit NAICS code), Workforce Investment Board (WIB) region, occupation (SOC codes), and employer size (number of employees). These categories are discussed in the sections that follow. Additional details are provided below and in Appendix A (Major Industries), Appendix B (WIB regions), and Appendix C (Occupational groups) Page 2

21 Industry Sectors Industries are classified using the North American Industry Classification System (NAICS). The NAICS system was developed through collaboration among the statistical agencies of the United States, Canada, and Mexico, and was first released in This system provides the basis for classifying businesses by industry and collecting data on the economic activity in these industries. Under the NAICS system, establishments that use the same or similar processes to produce goods or services are combined and assigned a unique classification number the NAICS code. 1 Economic data including the level of employment, wages and salaries paid to employees, and the number of firms in these industries are compiled and reported for a specific sector using its NAICS code. Table 1 lists the twenty major industry groups and their corresponding 2- digit NAICS codes. NAICS Code Industry Agriculture, Forestry, Fishing and Hunting Mining, Quarrying, and Oil and Gas Extraction Table 1. Major Industry Sectors NAICS Code Utilities Construction 56 Industry Real Estate and Rental and Leasing Professional, Scientific, and Technical Services Management of Companies and Enterprises Administrative / Support and Waste Management Services Manufacturing 61 Educational Services 42 Wholesale Trade Retail Trade Transportation and Warehousing Information 81 Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services (except Public Administration) 52 Finance and Insurance 92 Public Administration Source: U.S. Census Bureau 1 Development of NAICS. U.S. Census Bureau website. Page 3

22 Workforce Investment Board Regions There are fifteen Workforce Investment Board (WIB) Regions within the Commonwealth of Virginia. 2 The names of each WIB, and a map of Virginia detailing the location of each WIB, are shown below. A detailed list of the localities (counties and independent cities) that comprise each WIB is presented in Appendix A. Table 2. Workforce Investment Board (WIB) Regions in Virginia WIB Number I II III IV WIB Name Southwest Virginia Workforce Investment Board New River / Mount Rogers Workforce Investment Board Western Virginia Workforce Development Board Shenandoah Valley Workforce Investment Board WIB Number XI XII XIII XIV VI Piedmont Workforce Network XV VII VIII IX Virginia s Region 2000 Partnership South Central Workforce Investment Board Resource: Capital Region Workforce Partnership Source: Virginia Employment Commission XVI XVII WIB Name Northern Virginia Workforce Investment System Alexandria / Arlington Workforce Investment Board Bay Consortium Workforce Investment Board Peninsula Council for Workforce Development Crater Regional Workforce Investment Group Opportunity Inc. - Hampton Roads Workforce Development Board West Piedmont Workforce Investment Board 2 The localities originally represented by WIB V ( Northern Shenandoah Valley ) and WIB X ( City of Richmond ) are included in WIB IV ( Shenandoah Valley Workforce Investment Board ) and WIB IX ( Resource: Capital Region Workforce Partnership ), respectively. Page 4

23 Figure 1. Map of Virginia s WIB Regions Source: Virginia Center for Urban Development at VCU. Map prepared using ArcGIS. Employer Size Categories For this research, six employer size categories were defined, based on the number of employees (both full- time and part- time) working at the establishment. These categories are shown in Table 3. Table 3. Employer Size Categories Category Number Employer Size Categories (Number of Employees) 1 1 to 9 employees 2 10 to 24 employees 3 25 to 99 employees to 499 employees to 999 employees or more employees Page 5

24 Occupational Classification Codes The U.S. Bureau of Labor Statistics combines occupations into twenty- three major Standard Occupational Classification (SOC) System codes, as displayed in Table 4. Table 4. Major Standard Occupational Classification (SOC) System Codes SOC Code Occupational Group SOC Code Management Occupations Business and Financial Operations Occupations Computer and Mathematical Occupations Architecture and Engineering Occupations Life, Physical, and Social Science Occupations Community and Social Services Occupations Legal Occupations Education, Training, and Library Occupations Arts, Design, Entertainment, Sports, and Media Occupations Healthcare Practitioners and Technical Occupations Healthcare Support Occupations Occupational Group Food Preparation and Serving Related Occupations Building and Grounds Cleaning and Maintenance Occupations Personal Care and Service Occupations Sales and Related Occupations Office and Administrative Support Occupations Farming, Fishing, and Forestry Occupations Construction and Extraction Occupations Installation, Maintenance, and Repair Occupations Production Occupations Transportation and Material Moving Occupations Military Specific Occupations Protective Service Occupations Source: U.S. Bureau of Labor Statistics Job Vacancy Survey The VCU research team developed and implemented the Job Vacancy Survey with a sample of employers in Virginia. The VEC provided detailed employment information to the VCU research team for all establishments covered by Virginia s unemployment insurance tax laws. Data for these employers are measured quarterly by the VEC s Page 6

25 Quarterly Census of Employment and Wages (QCEW) data. selecting the survey sample were from 3rd Quarter 2010 QCEW records. The QCEW data included the following information: Employer name; Physical address; Mailing address for unemployment insurance filings (UI address); Number of employees at the physical location; Employer s industry classification code (NAICS code); The data used when Locality code indicating the Virginia city or county where the job site is located (ANSI / FIPS code); and Ownership code (i.e., private, local government, state government, or Federal government). Developing the Sample QCEW data indicated 218,672 establishments in Virginia during 3rd Quarter 2010 (the source data for the contact information). The sample was stratified by major industry sector (2- digit NAICS code), WIB region, and employer size category (number of employees). Because of this, any establishments in the population for which one or more of these elements was not available was omitted prior to the sample selection. This included the following businesses: Companies with zero (0) employees reported during the third month in the 3 rd Quarter 2010 were omitted from the population. Ø There were 28,097 establishments that met this criterion. Companies with a FIPS code greater than or equal to 900 were omitted from the dataset. Codes of 900 and above do not represent specific localities and, as such, it was not possible to tell where the site was located or to assign the company to a particular WIB region. 3 Ø There were a total of 11,398 establishments that met this criterion. 3 FIPS 900 = Multi Master Account, i.e., the sum for all units in a multi- unit group; FIPS 995 = Multi County Locations ; FIPS 996 = Foreign Country Work Location ; FIPS 998 = Out of State Work Location ; and FIPS 999 = Work Location Unknown. Page 7

26 Companies with a NAICS code equal to were omitted from the dataset. This code indicates that the industry is unclassified and it was not possible to assign the firm to a particular industry group. Ø There were a total of 2,001 establishments that met this criterion. Some establishments met more than one of these criteria and the totals presented above contain certain businesses more than once. A total of 36,276 unique establishments were omitted from the population data for this project. The adjusted population size was 182,396 establishments. A sample of 18,799 establishments from across Virginia, approximately ten percent of this population, was selected to receive the survey. After the sample had been chosen, one category of establishments that were not applicable was also removed. These were 2010 Census Intermittent Workers. While these jobs existed in 2010 (i.e., the source data year), they are not applicable for years in between the decennial Census. As a result, five additional establishments were removed from the sample resulting in a final sample size of 18,794 establishments. Survey Implementation The VCU research team designed and implemented a mail survey for this project. The surveys were sent out in batches across an eight- month period, from September 2011 through April Each batch was distributed using a three wave mailing with the following components: 1) Initial mailing: The invitation letter was written from Mr. Donald Lillywhite, Director of the VEC s Labor Market Information Division, and was printed using the VEC letterhead and VEC envelopes. A paper survey was included, along with a postage- paid envelope to return the survey. Respondents were also given an online reply option using the website Each survey had a unique identification code that could be used to access the questions online. 2) Reminder postcard: The postcard served as a thank you for everyone who had already responded to the survey and as a way of asking others to please return their survey. It was sent approximately three to four weeks Page 8

27 after the initial mailing. The survey website was provided on the postcard, as a reminder of the online reply option. 3) Second letter: The second letter was sent to anyone who had not replied within approximately six weeks after the initial mailing. This mailing made another request for the potential respondent to complete the survey. Another survey and a postage- paid reply envelope were also included. The second letter was also written from Mr. Lillywhite and was printed on VEC stationery. The survey questions and examples of the three mailings used for this project are included in Appendix D. Response Rate Of the 18,794 establishments in the sample, 916 were omitted from the analysis for one of the following reasons: the survey came back with an invalid address, a response was received that the employer had closed or no longer had operations in Virginia, or a potential respondent refused to participate. The modified sample size was 17,878. A total of 7,956 surveys were returned by mail, fax, and online, resulting in a response rate of 44.5 percent. (See Appendix E for a comparison of response rates across the major industry sectors, WIB regions, and employer size categories.) Using data from the sample, a total of 63,070 job vacancies in Virginia were estimated across all selected industry sectors during the eight- month period from September 2011 through April Sampling Error The statewide sample of 7,956 is subject to a sampling error of plus or minus 1.1 percentage points at the 95 percent level of confidence. This means that in 95 out of 100 samples like the one used here, the results obtained should be no more than 1.1 percentage points above or below the figure that would be obtained by interviewing all Virginia employers. Where the answers of subgroups are reported, the sampling error would be higher. (See Appendix F for estimated sampling errors for each industry sector, WIB region, and employer size category.) Page 9

28 Caveats Survey Measurement Errors: Information presented in this report relies on data collected from a sample of Virginia employers. There is a certain degree of sampling error that exists simply because the full population is not being surveyed. Also, due to non- response (refusals to participate, etc.), standard calculations of sampling error may understate the actual extent to which survey results are at variance with the true population values. It is important to note that surveys are also subject to errors from sources other than sampling. While every effort is made to identify such errors, they are often difficult or impossible to measure. Job Vacancy Estimates: Job Vacancy data are intended to be general indicators of occupational demand. They should not be interpreted as an exact number or exact distribution of actual vacancies. Many factors can influence the number and type of job vacancies that exist at any given time including the opening or closing of job sites and the movement of current or potential employees in or out of a particular geographic area. SURVEY RESULTS Using data from the, the number and type of job vacancies was estimated for each major industry sectors, WIB region, employer size categories, and major occupational group. (When the Number of Cases is shown as part of a table in this report, it represents the un- weighted number of cases from the sample that was used to estimate the particular value or percentage.) Summary of Job Vacancy Data Expectations about Short- run Changes in Employment Respondents were asked to indicate their expectations about the change in the number of jobs at the specific site during the next six months. Table 5 shows that two- thirds (68 percent) said that they expected the number of jobs to Stay the Same (see Table 5). Ten (10) percent had positive expectations and said that the number of jobs would either Definitely Increase (2 percent) or Probably Increase (8 percent). In Page 10

29 comparison, 7 percent indicated that the number of jobs would either Probably Decrease (6 percent) or Definitely Decrease (1 percent). An additional 13 percent of respondents answered that they did not know how the number of jobs would change over the next six months. Table 5. Expected Change in the Number of Jobs During the Next Six Months Number of Jobs will Definitely Increase Number of Jobs will Probably Increase Number of Jobs will Stay the Same Number of Jobs will Probably Decrease Number of Jobs will Definitely Decrease Do Not Know No Response 2.1% 8.1% 67.5% 6.0% 1.3% 13.4% 1.6% Total 100.0% Number of Cases 7,850 Source:. Virginia Employment Commission (Economic Information Services Division / Labor Market and Demographic Analysis) and Virginia Commonwealth University Employees Hired During Past Twelve Months Survey respondents were asked whether employees had been hired for the specific location during the past twelve months. Sixty- nine (69) percent of respondents indicated that employees had been hired during this time frame, while 31 percent said that no employees had been hired. Degree to Which New Employees Have Met Expectations For those respondents who indicated that new employees had been hired for the specific site during the past twelve months, additional information was collected as to whether these new employees had met the employer s expectations for the skills listed on the next page: Page 11

30 Oral communication Written communication Math skills Problem solving Information technology Leadership ability Table 6 shows the percent of respondents who said that these new employees had met their expectations. The answer options presented to respondents were Yes, No, and Not Applicable. For employees hired in the past twelve months, 87 percent of respondents indicated that their expectations had been met with respect to oral communication skills, 72 percent with respect to written communication, 64 percent for math skills, 70 percent for problem solving, 57 percent with respect to information technology, and 52 percent for leadership ability (Table 6). Table 6. of Employers Indicating that Employees Hired in the Past 12 Months Met Their Expectations for Specific Skills Skill Yes (Did meet expectations) No (Did not meet expectations) Not Applicable No Answer Total* Number of Cases Oral communication 86.9% 5.8% 6.4% 0.9% 100.0% 5,442 Written communication 71.9% 6.7% 19.7% 1.7% 100.0% 5,412 Math skills 63.9% 6.7% 27.6% 1.7% 100.0% 5,403 Problem solving 69.7% 13.6% 14.7% 1.9% 100.0% 5,396 Information technology 56.5% 8.3% 33.2% 2.0% 100.0% 5,411 Leadership ability 52.1% 14.6% 31.3% 2.0% 100.0% 5,397 Source:. Virginia Employment Commission (Economic Information Services Division / Labor Market and Demographic Analysis) and Virginia Commonwealth University * Note: Due to rounding, the sum of responses for some skills is not equal to 100 percent. Another way of considering these data is to examine the degree to which new employees met expectations for employers but only for those employers for which a Page 12

31 specific skill was applicable. Data in Table 7 focus on the percent of employers who said that new employees had (or had not) met their expectations for the particular skill, and who also did not choose Not Applicable as a response (for that particular skill). When considering only those respondents who which a particular skill was applicable (Table 7), 93 percent of employers said that new hires met their expectations for oral communication, 90 percent with written communication, 88 percent for math skills, 82 percent on problem solving, 85 percent for information technology, and 76 percent with leadership ability. Table 7. of Employers Indicating that Employees Hired in the Past 12 Months Met Their Expectations for Specific Skills Omitting the Not Applicable Responses Skill Yes (Did meet expectations) No (Did not meet expectations) No Answer Total* Number of Cases Oral communication 92.8% 6.2% 1.0% 100.0% 5,103 Written communication 89.5% 8.3% 2.2% 100.0% 4,321 Math skills 88.3% 9.3% 2.4% 100.0% 3,825 Problem solving 81.7% 16.0% 2.3% 100.0% 4,561 Information technology 84.5% 12.5% 3.0% 100.0% 3,541 Leadership ability 75.8% 21.3% 2.9% 100.0% 3,553 Source:. Virginia Employment Commission (Economic Information Services Division / Labor Market and Demographic Analysis) and Virginia Commonwealth University * Note: Due to rounding, the sum of responses for some skills is not equal to 100 percent. Estimated Number of Job and Job Vacancy Rate From the 7,956 surveys that were returned, 3,420 respondents (43 percent) gave details about at least one job vacancy. There were an un- weighted 8,478 job vacancies (including both full- time and part- time) reported by respondents. After weighting the survey data, it was estimated that there were 63,070 job vacancies in Virginia during the survey period September 2011 through April Page 13

32 Total annual employment in Virginia, during 2011, was estimated by the Virginia Employment Commission to be 3,578, Based on these values, the overall job vacancy rate which measures job vacancies as a percent of total jobs (employment in the occupation plus vacancies) was 1.7 percent (Table 8). 5 Table 8. Summary of Job Vacancy Data Estimated Number of Job and Job Vacancy Rate Estimated Number of Job Total Employment (Annual 2011) Job Vacancy Rate 63,070 3,578, % Sources:. Virginia Employment Commission (Economic Information Services Division / Labor Market and Demographic Analysis) and Virginia Commonwealth University Annual 2011 Employment Totals are from the Virginia Employment Commission Quarterly Census of Employment and Wages (QCEW) data. Type of Positions and Duration of Job When examining the type of positions that were available, 68 percent of the vacancies were for full- time positions and 32 percent were for part- time positions (see Table 9). Most of the vacancies (90 percent) were permanent jobs, though 10 percent were for temporary or seasonal jobs. At the time the employers were surveyed, about half (54 percent) of the vacancies had been open for less than 30 days (Table 9 and Figure 2). 4 Annual 2011 Employment Totals are from the Virginia Employment Commission Quarterly Census of Employment and Wages (QCEW) data. 5 The method for computing the Job Vacancy Rate used for this study corresponds with the approach used by the U.S. Bureau of Labor Statistics for its Job Openings and Labor Turnover Survey (JOLTS) program. Job Vacancy Rate is computed as job vacancies divided by the sum of employment plus vacancies. Some job vacancy studies use a slightly different definition i.e., job vacancies divided only by employment. Page 14

33 Table 9. Summary of Job Vacancy Data Type of Position, Duration of Position, and Length of Job Vacancy of Number of Cases Type of Position Full- Time Positions 67.8% 2,679 Part- Time Positions 32.2% 858 Duration of Position Permanent Positions 89.9% 2,930 Temporary or Seasonal Positions 10.1% 2,930 Length of Job Vacancy Vacancy Open Under 30 days 53.8% 3,216 Vacancy Open 30 to 59 days 19.0% 3,216 Vacancy Open 60 days or more 21.2% 3,216 No Response 6.0% 3,216 Source:. Virginia Employment Commission (Economic Information Services Division / Labor Market and Demographic Analysis) and Virginia Commonwealth University Page 15

34 Source:. Virginia Employment Commission (Economic Information Services Division / Labor Market and Demographic Analysis) and Virginia Commonwealth University Educational, Work Experience, and Certification Requirements Jobs often have requirements about the minimum education level and amount of work experience that they require. Some positions also require a license or other certification. As shown in Table 10, data from the survey of Virginia employers indicated that almost half (48 percent) of vacancies required formal education beyond high school level and three- fourths (75 percent) required work experience related to the job. Thirty- one (31) percent required a license or formal certification. (The type of license or certification was not obtained from respondents. The requirement could range from specialized licenses, such as a tradesman s license for an electrician, to more common licenses, such as a valid driver s license.) Page 16

35 Table 10. Summary of Job Vacancy Data Educational, Work Experience, and Certification Requirements of Number of Cases Educational Requirements No Educational Requirement 18.2% 3,261 Requires High School Diploma / GED 31.4% 3,261 Requires Some College 7.6% 3,261 Requires Vocational Training 8.0% 3,261 Requires Associate s Degree 5.5% 3,261 Requires Bachelor s Degree 21.5% 3,261 Requires Advanced Degree 5.9% 3,261 Level of Work Experience Required No Experience Required 18.5% 3,271 Requires Unrelated Work Experience 4.9% 3,271 Requires Related Work Experience 75.2% 3,271 Requires License or Certification 31.3% 3,193 Source:. Virginia Employment Commission (Economic Information Services Division / Labor Market and Demographic Analysis) and Virginia Commonwealth University Page 17

36 Figure 3. of Job by Educational Requirements Source:. Virginia Employment Commission (Economic Information Services Division / Labor Market and Demographic Analysis) and Virginia Commonwealth University Compensation Provided Respondents were asked about the expected wage or salary for each of the job vacancies for which they provided details. Both the dollar amount of pay and the pay frequency i.e., hourly, monthly, or annually were requested. Information was also provided about general categories of benefits offered with a particular job vacancy. These results from these questions are summarized in Table 11 and discussed below. Page 18

37 Wages and Salaries Using data from respondents who provided both a salary amount and a pay frequency, the following average wages and salaries were estimated for full- time job vacancies: $14.34 per hour (average) for jobs that received an hourly wage; $3,802 per month (average) for jobs that received a monthly salary; and $55,102 per year (average) for jobs that received an annual salary. To provide a better comparison across the pay frequencies, the wage and salary data for full- time job vacancies were converted to an hourly equivalent rate. Wages for jobs that received an hourly wage were kept in an hourly amount. For jobs that received an annual salary, it was assumed that the employee would work a standard 2,080 hours per year. Therefore, the hourly equivalent amount was computed by dividing the annual salary by 2,080. For jobs that received a monthly salary, it was not known how many months or hours would be worked each year. Because of this, job vacancies with monthly salaries were not included in the calculation of an hourly equivalent rate. It was estimated that full- time vacancies paid an average of $20.45 per hour. In comparison, part- time job vacancies paid the following wages and salaries: $10.71 per hour for jobs that paid an hourly wage; $1,620 per month for jobs that paid a monthly salary; and $14,514 per year for jobs that paid an annual salary. The hourly equivalent rate for part- time vacancies only used jobs that paid an hourly wage. For these jobs, the hourly rate was known. For part- time jobs that paid a monthly or annual salary, however, it was not clear how many hours would be worked during a year. As such, these pay data were not used in the calculation of an hourly equivalent amount. It was estimated that part- time vacancies paid an average of $10.71 per hour. Combining both full- time and part- time jobs, the average hourly equivalent was estimated to be $17.25 per hour. Page 19

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