Laborshed Analysis. Noblesville UDO Audit. September 5, 2012

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1 Laborshed Analysis Noblesville UDO Audit September 5, 2012

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3 Laborshed Analysis Introduction A laborshed is defined as the region from which an identified area draws its commuting workers. To better understand labor migration patterns for the City of Noblesville and to support proactive economic development efforts, the OnTheMap web-based mapping and reporting application provided by the U.S. Census Bureau was utilized. The laborshed analysis will help in determining the potential available labor supply and delineate the actual geographic boundaries from which Noblesville is able to attract workers. Similarly, outflow job migration patterns are included to help understand where residents of Noblesville are travelling for employment. The commuting patterns of two other central Indiana communities, Fishers and Greenwood, are surveyed to see how Noblesville compares in the regional market. The national comparable communities of Naperville, Illinois; Oak Lawn, Illinois; Eden Prairie, Minnesota; Ankeny, Iowa; and Cedar Park, Texas are examined in terms of net job inflow and outflow as well as distances workers travel to and from home. Methodology OnTheMap has the ability to produce several different types of analyses for a selected area. For this laborshed analysis, the selected areas are the corporate boundaries of each municipality (city, town, village). Each analysis (with the exception of the inflow/outflow analysis discussed below) is based on the initial criteria of work or home. If work is the selected criteria, the analysis is based on individuals who work within the boundaries of the selected area. They may live inside or outside of that selected area. If home is the selected criteria, the analysis is based on working individuals who live within the selected area. The location of their employment be inside or outside of the selected area. The laborshed report includes the following types of analyses: Area Profile Analysis: characteristics of workers living or working inside the selected area. Distance/Direction Analysis: distance and direction totals between residence and employment locations for workers employed or living in the selected study area. Destination Analysis: home or work destinations of workers employed or living in the selected study area. Inflow/Outflow Analysis: the count of worker flows in to, out of, and internally within the selected study area. The results of each analysis are then compared within the municipality, i.e. the earnings of workers employed in Noblesville versus the earning of those living in Noblesville, or across municipalities, i.e. percentage of employees travelling over 50 miles to employment in the selected municipality. The employment data, available for 2002 through 2010, used in the OnTheMap application are derived from several sources: Unemployment Insurance (UI) Wage Records reported by employers and maintained by each state for the purpose of administering its unemployment insurance system provide information 1

4 on employees and jobs (relationship between employee and firm). These data are provided for "UI-covered employment," which typically includes private-sector employment as well as state and local government. The Office of Personnel Management (OPM) provides information on employees and jobs for most Federal employees. See and for major exceptions. The Quarterly Census for Employment and Wages (QCEW) provides information on firm structure and establishment location. These data are collected by each state under an agreement with the Bureau of Labor Statistics (BLS). Age, earnings, and industry profiles are compiled by the Census Bureau from a state's records and are supplemented with other Census Bureau source data. Final compilations and confidentiality protection are performed by the Census Bureau. The states assign employer locations, while workers' residence locations are assigned by the U.S. Census Bureau using data from multiple federal agencies. Noblesville Profile Noblesville has historically been a net exporter of jobs to the surrounding area, meaning the City is home to more workers than it is jobs. This may not be surprising given Noblesville s desirable housing options and proximity to the City of Indianapolis. However, not all of the comparable communities have an outflow of jobs to their central cities. In 2010, the net difference between the number of workers in Noblesville and the number of jobs in Noblesville was 4,044. Jobs vs. Workers in Noblesville ( ) Inflow / Outflow Summary 25,000 20,000 15,000 10,000 5,000 0 Number of Workers Number of Jobs 2

5 The following charts present a snapshot of the workforce, both living and working in Noblesville, in Noblesville had an inflow or workers for construction; retail trade; and accommodation and food services jobs. There was an outflow of workers in the information; finance and insurance; real estate; professional and technical services; and management industries. Considering these industry sectors, it is not surprising that there is an inflow of lower paid workers with less educational attainment and an outflow of higher paid and more educated workers. There was a net outflow of over 4,000 high paid (more than $3,333 per month) workers from Noblesville in % Jobs by NAICS Industry Sector (2010) 16% 14% 12% 8% 6% 4% 2% 0% Agriculture, Forestry, Fishing and Hunting Mining, Quarrying, and Extraction Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Information Finance and Insurance Real Estate and Rental and Leasing Professional, and Technical Services Management of Companies and Enterprises Admin. & Support, Waste Mgmt. and Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services (excluding Public Admin.) Public Administration Work in Noblesville Live in Noblesville 3

6 30% Jobs by Educational Attainment (2010) 25% 20% 15% Work in Noblesville Live in Noblesville 5% 0% 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 50% Jobs by Earnings (2010) 45% 40% 35% 30% 25% 20% Work in Noblesville Live in Noblesville 15% 5% 0% $1,250 per month or less $1,251 to $3,333 per month More than $3,333 per month Where Workers Live Who are Employed in Noblesville Location selection for new businesses and expansion plans for existing businesses can be heavily influenced by labor force issues, particularly the availability of skilled labor, training of the workforce, and relocation of key employees. These factors are becoming increasingly more important in terms of maintaining economic development competitiveness. What classifies as a reasonable commute may depend on the individual employee, traffic congestion, the price of gas, and even the wage paid. In general though, workers will choose to commute shorter distances if jobs are available. Again, this may be due to higher gas prices, wanting to spend more time with family, or a desire for more recreation time. Workers may also commute longer distances for higher paying jobs but it would be expected that workers may ultimately seek to live closer to that job or change jobs to one closer to home as more jobs become available. 4

7 The map below generally depicts the laborshed for Noblesville in The purple-shaded areas represent where workers live who are employed in Noblesville. Areas of darker purple represent higher concentrations of workers. Source: U.S. Census Bureau, OnTheMap Application Breakdown of where workers live by city is included on the following page. The other central Indiana communities of Fishers and Greenwood are also presented for comparison. Of the workers employed within the City of Noblesville, 19% also live in the City. The second most frequent city of residence for Noblesville workers is Indianapolis, followed by Fishers, Westfield, and Carmel respectively. Of the three central Indiana communities examined, Noblesville is the only one where the largest percentage of the workforce lives in the base city. 5

8 Where Workers Live Who are Employed in Noblesville (2010) 45% 19% 12% 8% 4% 4% 2% 3% Noblesville city, IN Indianapolis city (balance), IN Fishers town, IN Westfield town, IN Carmel city, IN Anderson city, IN Cicero town, IN Lawrence city, IN Elwood city, IN Kokomo city, IN All Other Locations Where Workers Live Who are Employed in Fishers (2010) 39% 2% 2% 4% 5% 3% 25% 17% Indianapolis city (balance), IN Fishers town, IN Noblesville city, IN Carmel city, IN Lawrence city, IN Anderson city, IN Westfield town, IN Muncie city, IN Bloomington city, IN Greenwood city, IN All Other Locations Wher Workers Live Who are Employed in Greenwood (2010) 48% 29% 12% 3% 2% Indianapolis city (balance), IN Greenwood city, IN Franklin city, IN New Whiteland town, IN Whiteland town, IN Carmel city, IN Beech Grove city, IN Fort Wayne city, IN Fishers town, IN Lawrence city, IN All Other Locations 6

9 Where Workers are Employed Who Live in Noblesville The following map shows the employment locations for workers who live in Noblesville. The darker purple-shaded areas correspond to higher concentrations in job locations. In addition to commercial and institutional clusters within Noblesville, areas of higher employment concentration include: downtown Indianapolis; downtown Westfield; Carmel, especially the U.S. 31/Meridian Street office corridor; the area surrounding the Keystone Ave. and I-465 interchange; Castleton; and the I-69 and SR 37 corridor in Indianapolis and Fishers. Source: U.S. Census Bureau, OnTheMap Application The following charts show the breakdown of where workers live who reside in Noblesville, Fishers, and Greenwood, respectively. 7

10 Where Workers are Employed Who Live in Noblesville (2010) 2% 4% 7% 20% 12% 15% 36% Indianapolis city (balance), IN Noblesville city, IN Carmel city, IN Fishers town, IN Westfield town, IN Kokomo city, IN Anderson city, IN Lawrence city, IN Lafayette city, IN Fort Wayne city, IN All Other Locations Where Workers are Employed Who Live in Fishers (2010) 4% 14% 14% 52% Indianapolis city (balance), IN Fishers town, IN Carmel city, IN Noblesville city, IN Lawrence city, IN Westfield town, IN Bloomington city, IN Fort Wayne city, IN Anderson city, IN Muncie city, IN All Other Locations Where Workers are Employed who Live in Greenwood (2010) 23% 2% 2% 3% 3% 12% 5 Indianapolis city (balance), IN Greenwood city, IN Franklin city, IN Columbus city, IN Beech Grove city, IN Carmel city, IN Plainfield town, IN Bloomington city, IN Fishers town, IN Fort Wayne city, IN All Other Locations 8

11 Number of Jobs Across Communities Like Noblesville, most of the comparable communities experienced job growth between 2003 and Greenwood, Indiana and Oak Lawn, Illinois were the only two communities that lost jobs over that time period. Given that Naperville, Illinois has a population of 167,883, significantly higher than any other comparable community, it is not surprising that it be home to the most jobs. However, Eden Prairie, Minnesota has a population of only 60,387 but was home to over 20,000 more jobs than the other comparable communities (excluding Naperville, IL). Eden Prairie is the headquarters of several manufacturing and wholesale businesses. 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Number of Jobs in Each Community (2003 and 2010) Number of Workers Across Communities The number of workers living in Naperville, Illinois coincides with the much greater population of the city when compared to the other communities. Although Eden Prairie, Minnesota has a high number of jobs, the number of workers living in Eden Prairie is more in congruence with the other comparable communities of similar size. 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, Number of Workers in Each Community (2003 and 2010)

12 Job Inflow / Outflow The net job inflow or outflow is the difference between the number of jobs in a community and the number of workers living in that community. If the resulting difference is a positive number, that means the community has more people entering it every day for work than those leaving the community for work. If the number is negative, then there is an outflow of working individuals from the community every day. As discussed earlier, Noblesville is a net exporter of jobs as it has a net outflow of 4,044 workers; this trend increased slightly from 2003 to Oak Lawn, Illinois is the only comparable community that experienced a shift from having a net inflow in 2003 to an outflow in ,000 15,000 10,000 5, ,000-10,000-15,000 Net Job Inflow (+) and Outflow (-) In-Area Employment Efficiency In-area employment efficiency is a measure of the jobs held in a community by residents of that community. Almost all of the communities examined have experienced decreases in in-area employment efficiency from 2003 to Only Fishers, Indiana increased in-area efficiency over that time. Of the jobs in Noblesville in 2010, 3,169, or 19.3% were held by residents. This is the second highest of the comparable communities and suggests Noblesville those who work in Noblesville also find it an attractive and affordable place to live. 30% 25% 20% 15% 5% In-Area Employment Efficiency (2003 and 2010) 0%

13 Distance from Work (in select city) to Home All of the communities were fairly consistent with between 4 and 52% of the jobs in the community being filled by workers commuting less than 10 miles. Over 20% of individuals working in Ankeny, Iowa and Cedar Park, Texas travel greater than 50 miles to their home. This suggests there may be gap between wages and housing affordability. Distance from Home (in select city) to Work Over 80% of the working residents of Noblesville travel less than 25 miles to their job. In Cedar Park, Texas, 22% of the working residents must travel greater than 50 miles for employment. Austin, Texas is approximately 20 miles from Cedar Park suggesting there is another employment destination in the area. 60% 50% 40% 30% 20% 0% Distance from Work (in select city) to Home (2010) Less than 10 miles 10 to 24 miles 25 to 50 miles Greater than 50 miles 70% 60% 50% 40% 30% 20% 0% Distance from Home (in select city) to Work (2010) Less than 10 miles 10 to 24 miles 25 to 50 miles Greater than 50 miles 11

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