Cherokee Office of Economic Development. White Collar Workforce Analysis. April 2011

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1 Cherokee Office of Economic Development White Collar Workforce Analysis April 2011

2 Table of Contents Executive Summary... 1 Methodology Objectives Data Sources Labor Market Overview Labor Market Quantified Labor Market Incomes Workforce Availability Overview Labor Shed Total Workforce Population Growth Commuting Patterns Regional Unemployment Workforce Quality Overview Diversity Occupation/Employment by Major Sector Occupation/Employment by Targeted Subsector Employment by Occupation Number of Employees in White Collar Sectors Target/Occupational Demand Workforce Age

3 Educational Attainment Higher Education Elementary and Secondary Education Employer Satisfaction Labor Costs Management/Professional Recruitment Workforce Training Inventory Recommendations Workforce Findings Workforce Marketing Profile Supporting Data Appendix A Resident Survey Results Appendix B Employer Survey Results Appendix C Workforce Training Inventory Appendix D Occupational Demand Report Appendix E Demographic Detail Report Appendix F Average Wage Data Appendix G - Footnotes

4 Executive Summary Overview The Cherokee Office of Economic Development, as part of its ongoing effort to enhance economic opportunities for Cherokee County, engaged Boyette Strategic Advisors (BSA) to complete a thorough analysis of the white collar workforce in the area. The study addresses these key issues: What is the true labor draw area for white collar workers in the region? What are the out-commuting patterns? What are the key demographic and skill assets and liabilities of the current white collar workforce relative to today s business needs? What are the key demographic and skill assets of the current white collar workforce relative to future business needs? What are the strengths and shortcomings of the regional education and training institutions relative to supplying an ongoing pipeline of white collar talent sufficient to satisfy employers needs? Through this process, BSA determined that Cherokee County draws its workforce from the twelve counties outlined in blue on the map to the right. The labor shed area identifies the areas where employees who work in Cherokee County predominantly live. Note that BSA only included North Fulton County, which, for purposes of this analysis, includes the major cities of Alpharetta, Johns Creek, Roswell and Sandy Springs, as part of the labor shed area. BSA believes that including Atlanta and areas South of Atlanta as part of the labor shed area would misrepresent the labor shed area and the available workforce in the Cherokee County labor shed. In addition to confirming the white collar labor shed area for Cherokee County, identifying and quantifying workforce availability in the area, determining skill sets of the existing white collar workforce, and reviewing and assessing out-commuting patterns in the county, an important 1

5 part of this analysis was also focused on developing data to share with business prospects considering a location in the area and making any needed recommendations to enhance the long-term competitiveness of the workforce in the Cherokee County area. Methodology The following data sources were utilized to develop an overall picture of the workforce in the Cherokee County area: Secondary Data BSA gathered and reviewed data from secondary sources (U.S. Census Bureau, U.S. Bureau of Labor Statistics, Georgia Department of Education, University System of Georgia, National Center for Education Statistics, and Internal Revenue Service). Census and other demographic data was obtained through Decision Data Resources, a web-based application that provides access to demographic data and allows users to develop and create custom reports using available data. This information provided the baseline upon which the primary research was analyzed. Resident Online Survey An online survey instrument was also developed to obtain feedback from residents in Cherokee County, most of who work outside of Cherokee County. A link to the online survey was distributed via various sources throughout the county including by , print advertisements in local newspapers, an article in the Atlanta Journal Constitution, ad inserts in local water and sewer bills, neighborhood newsletters, at civic club meetings, through local churches and several other means. A total of 785 responded to survey. The responses to this survey were used to identify what county most people work in, who their employers are, what fields they are employed in, training interest and needs, commuting tolerances and skill availability. Employer Online Survey Key white collar employers were surveyed online to gauge employer satisfaction and opinions on issues affecting the Cherokee County white collar workforce. The survey was sent to six white collar employers in the area, with five companies responding. The answers to each of these questions were analyzed to determine whether it represented a strength, weakness, opportunity or challenge to the Cherokee County labor market. The data was compared to findings from the other sources as conclusions were made, and the data was drawn upon to quantify and validate perceptions of the workforce. Training Inventory Three training providers in the Cherokee County area were invited to complete an online questionnaire used to develop an inventory of workforce education and training opportunities in the area. The inventory questionnaire was completed by all three training providers. Information from that inventory was used to assess the quantity and subject matter of training options available to area businesses and residents. 2

6 Labor Market Overview As previously indicated, the twelve-county labor shed area for Cherokee County, includes the following counties: Cherokee Bartow Cobb Dawson Douglas Forsyth Cherokee County Labor Shed North Fulton Gilmer Gordon Gwinnett Paulding Pickens Labor Market Quantified Includes all or part of 12 counties in north central Georgia Total population of 2,393,379 in 11 counties within commuting range of Cherokee County employers, plus 316,478 in North Fulton County Somewhat younger than U.S. population Cherokee County Labor Shed (11 Counties) North Fulton County Total Population 2,393, ,478 Median Age Race and Ethnicity White 66.0% 68.3% Black 19.6% 13.4% Hispanic Ethnicity 13.4% 11.7% Asian 5.6% 10.7% Some Other Race 5.8% 4.8% Two or More Races 2.6% 2.6% American Indian and Alaska Native 0.4% 0.2% Native Hawaiian and Other Pacific 0.1% 0.05% Source: 2010 Census Redistricting Data (March 2011) and Decision Data Resources (for median age data only) 3

7 Labor Market Incomes Income Levels Both Cherokee County and the labor shed area are above the national and Georgia state average in all income measures. $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Cherokee County Labor Shed Georgia Entire US Average Household Income Median Household Income Per Capita Income Source: Decision Data Resources

8 Cost of Living The ACCRA Cost of Living Index is the most common data source for determining cost of living in Metropolitan Statistical Areas (MSA) throughout the nation. The Atlanta-Sandy Springs-Marietta MSA, which includes Cherokee County, participates in the ACCRA index. Because cost of living can vary significantly within major metropolitan areas such as Atlanta, the index includes two sets of data one focused on Atlanta and one focused on Marietta. The ACCRA index shows the following 2010 annual results for the Atlanta MSA (compared to the U.S. average at 100.0): Atlanta MSA Composite Groceries Housing Atlanta Urban Area Marietta Urban Area Cost of living data for Canton/Cherokee County is available through Sperling s Best Places, which rates communities on a variety of factors. According to that source, the composite cost of living index for Canton is 87.0, with a grocery index of While this source does not provide an index number for housing, it does indicate that the median home cost in Canton is $128,700, while the U.S. median is $183,450 and the Atlanta media is $184,240. City of Canton Composite Groceries Median Home Cost $128,700 5

9 Workforce Availability Overview The 2010 population of the 11-county primary labor shed area is nearly 2.4 million, with an additional 300,000 plus in North Fulton County (based on new U.S. Census data information), and the population is expected to grow by 13.6 percent and 12.5 percent, respectively, through 2015 based on current projections from Decision Data Resources (DDR). Cherokee County s proximity to the Atlanta metro area has contributed to the availability and growth of the county s workforce. Cherokee County also offers good transportation infrastructure with Interstate 575 running north and south through Cherokee County, while Interstate 985 runs through the eastern portion of the labor shed area and U.S. Highway 19 runs through additional counties of the labor draw area. In addition, Cherokee County public schools are ranked among the top school districts in the state of Georgia, and the area is home to Chattahoochee Technical College and Reinhardt College, which are also assets to the region s workforce. Cherokee County is also located in close proximity to Kennesaw State University, which is the third largest state university in the University System of Georgia. All of these factors are addressed in more specific detail below and substantiate Cherokee County s ability to meet its existing and future employers white collar workforce needs. Total Workforce The percentage of workers in the labor force in the 11-county primary Cherokee County labor shed and in North Fulton County is above the U.S. and Georgia averages. The percentage of adults in the workforce in the labor shed is 71.8 percent, with 73.0 percent in the workforce in North Fulton County. Total Labor Force 2010 U.S. Georgia Cherokee County North Fulton County Labor Shed % Not in Labor Force 34.8% 38.9% 28.3% 27.0% % in Labor Force 65.2% 66.3% 71.8% 73.0% In Labor Force 158,136,473 5,075,354 1,327, ,371 Total Population Age 16 Plus 242,386,189 7,660,870 1,850, ,372 6 Source: Decision Data Resources 2011

10 Population Growth The 12-county labor market area has experienced significant population growth over the last 10 years, with the population of the 11 core counties increasing by 37 percent since 2000, which is well above the percentage growth for the state of Georgia and for the nation during the same period. From 2000 to 2010, the U.S. population grew by 9.6 percent, Georgia s population increased by 26.4 percent, and the Cherokee County labor shed grew by 37 percent, while North Fulton County grew by 33.7 percent during the same period. In the next five years, the 11-county area is expected to continue growing at a rate of 13.6 percent, with North Fulton County projected to grow an additional 12.5 percent. During that same period, Cherokee County is projected to grow by 18.8 percent, with all counties experiencing growth and eight counties Bartow, Dawson, Douglas, Forsyth, Fulton, Gwinnett, Paulding, and Pickens projecting double-digit growth. Clearly, this growth indicates that current and potential employers will likely find both quantity and quality improvements in the workforce as the population increases. The Atlanta Regional Commission (ARC) recently completed its Regional Snapshot of the Atlanta region which showed that Cherokee County s population has grown percent between and is projected to grow another 93.6 percent between Population Change United States Georgia Cherokee County Labor North Fulton County Shed ,421,906 8,186,453 1,792, , ,332, % 9,960, % 2,457, % 394, % ,581, % 10,878, % 2,790, % 443, % Source: Decision Data Resources

11 Commuting Patterns In-Commuting The area population has demonstrated that it is willing to drive more than 30 minutes one way for meaningful employment. The following chart illustrates the mean travel time to work by county for all counties within the labor shed area. Mean Travel Time Cherokee County Labor Shed Cherokee County 32 minutes Bartow County 27 minutes Cobb County 29.5 minutes Dawson County 31.6 minutes * Douglas County 32.2 minutes Forsyth County 29 minutes Fulton County 27 minutes Gilmer County 27.1 minutes * Gordon County 23.5 minutes * Gwinnett County 31.5 minutes Paulding County 40.3 minutes Pickens County 30 minutes * Source: U.S. Census Bureau American Community Survey 2009 and American Community Survey for counties marked by * 8

12 Out-Commuting In addition to considering the potential for drawing workers into Cherokee County from surrounding areas, it is also important to determine if workers are commuting out of Cherokee County who might be potential recruits for new and existing employers in the county. The following chart shows that an estimated 78.7 percent of residents travel outside the county for work each day. Inflow/Outflow Job Counts Count Share Employed in Selection Area 40, % Employed in Selection Area but Living Outside 22, % Employed and Living in Selection Area 18, % Living in the Selection Area 85, % Living in the Selection Area but Employed Outside 67, % Source: On the Map 4, U.S. Bureau of the Census As shown on the chart below, the majority of Cherokee County resident survey respondents (37.9 percent) commute to Fulton County for work each day followed by Cobb County at 22 percent. The survey showed that 20.9 percent of respondents live and work in Cherokee County. 37.9% In what county are you currently employed? 22.0% 20.9% 5.0% 4.7% 3.3% 1.4% 0.6% 0.3% 0.3% Fulton County Cobb County Cherokee County Gwinnett County Dekalb County Forsyth County Bartow County Douglas County Paulding County Gordon County 9

13 Of those surveyed that lived in Cherokee County but did not work in Cherokee County, 97 percent indicated they would prefer to work in Cherokee County. Would you prefer to work in Cherokee County? No 3% Yes 97% Another interesting point from the resident survey was that of the 34 percent of respondents who are employed but seeking other employment, between 80 percent and 90 percent were seeking new employment due to the fact their commute is too long. Although you are employed, are you currently seeking other employment? 100 If you are currently seeking other employment, why? Yes 34% No 66% 50 0 Commute is too long Seeking better pay Lack of opportunities to advance General unhappiness with the job Better benefits All of the Above 10

14 Regional Unemployment The current unemployment rate in Georgia for the month of January 2011 of 10.5 percent is higher than the national rate of 9.8 percent. For the same period, Cherokee County reported an unemployment rate almost one and a half percent below the state average and below the national average at 9.1 percent. In looking at the 12-county labor shed area, the unemployment rate is below both the state and national rates at 9.7 percent. While four counties in the 11-county primary labor shed have rates that are below the state and national averages, six counties report unemployment rates above 11 percent. Data indicates that there are more than 116,000 people currently unemployed in the 11 counties, with an additional 12,000 unemployed in North Fulton County, where the unemployment rate is 8.2 percent. Note that only Forsyth County and North Fulton County have unemployment rates lower than Cherokee County. Workforce Quality Overview Like any area, Cherokee County s tangible and intangible benefits are a result of the people who live, work and raise families within it. There is no single factor that determines the quality of the area and its labor force, but rather a combination of factors that result in an economically diverse area that is prepared to support high-skilled white collar employment. Factors contributing to this workforce climate include: Strong work ethic among seasoned employees; Higher education and training providers; Diversity of skill sets; Significant out-bound commuting; and Growing population. 11

15 Diversity The Cherokee County labor shed offers diverse skills sets and employment opportunities, with Retail Trade (18.5 percent); Manufacturing (13.4 percent); Professional, Scientific and Technical Services (11.7 percent); and Construction (11.3 percent) being the largest major sectors found in the area. The next two largest sectors in the labor shed area are Healthcare and Social Assistance and Wholesale Trade, each representing nine percent of the employment in the area. In Cherokee County, Retail Trade (21.7 percent), Construction (13.87 percent); Manufacturing (11.69 percent); Healthcare and Social Assistance (9.74 percent); and Professional, Scientific and Technical Services (9.43 percent), are the largest sectors. Employers and potential employers in Cherokee County will find that a diverse economy offers a workforce with a variety of skill sets to meet their needs. In looking at subsectors that are dominated by white collar occupations in the labor shed area, Management, Scientific, and Technical Consulting Services has the highest percentage of employment followed by Business Support Services and Computer Systems Design and Related Services. This mirrors the largest subsectors found in Cherokee County except that Office of Physicians is the third highest in Cherokee County instead of Computer Systems Design and Related Services. Occupation/Employment by Major Sector/Subsector The Cherokee County labor market has: Diverse employment opportunities Strong representation in key white collar sectors, including Professional, Scientific and Technical Services and Healthcare and Social Assistance. Readily available support skills and services, particularly in Management, Scientific and Technical Consulting Services, Business Support Services and Computer Systems Design and Related Services. A skilled workforce supported by the fact that 32 percent of Cherokee County participants in the Georgia Work Ready program, which provides skills assessment and certification for job seekers, scored Gold or Platinum when the overall goal is 20 percent. 12

16 Major Sectors Entire U.S. Georgia Cherokee County Cherokee County Labor Shed North Fulton County Total: All Industries 110,517,280 % 3,339,748 46,279 % 765,548 % 178,363 % Agriculture, Forestry, Fishing and 1,432,030 33, % % 3, % % Hunting(11) 1.30% Mining(21) 517, % 6, % % 1, % % Utilities(22) 708, % 19, % % 3, % 1, % Construction(23) 7,901, % 252, % 6, % 86, % 12, % Manufacturing(31-33) 14,189, % 446, % 5, % 102, % 19, % Wholesale Trade(42) 6,305, % 201, % 2, % 68, % 11, % Retail Trade(44-45) 16,194, % 523, % 9, % 141, % 17, % Transportation and Warehousing(48-49) 4,224, % 171, % 1, % 23, % 8, % Information(51) 3,306, % 112, % % 24, % 7, % Professional, Scientific, and 10,265,382 Technical Services(54) 9.29% 305, % 4, % 89, % 20, % Management of Companies and 212,105 Enterprises(55) 0.19% 9, % % 1, % 39, % Educational Services(61) 9,537, % 254, % 4, % 49, % % Health Care and Social 15,725,158 Assistance(62) 14.23% 417, % 4, % 69, % 16, % Arts, Entertainment, and 2,157,898 Recreation(71) 1.95% 48, % 1, % 12, % 3, % Accommodation and Food 9,086,910 Services(72) 8.22% 278, % 4, % 61, % 16, % Public Administration(92) 8,752, % 257, % 1, % 25, % 1, % 13

17 Major Targeted Subsectors Entire US Georgia Cherokee County Cherokee County Labor Shed North Fulton County Accounting, Tax Preparation, Bookkeeping, and Payroll Services(5412) 879,094 27, ,744 2,690 Activities Related to Credit Intermediation(5223) 469,924 14, ,587 2,018 Business Support Services(5614) 1,518,721 57,075 1,210 18,446 5,980 Computer Systems Design and Related Services(5415) 1,324,489 44, ,449 12,423 General Medical and Surgical Hospitals(6221) 3,899, , ,991 1,587 Management of Companies and Enterprises(5511) 212,105 9, , Management, Scientific, and Technical Consulting Services(5416) 2,058,590 74,664 1,343 22,942 11,949 Medical and Diagnostic Laboratories(6215) 221,406 3, Office Administrative Services(5611) 993,377 36, ,463 5,207 Offices of Other Health Practitioners(6213) 634,685 14, , Offices of Physicians(6211) 2,945,407 80,996 1,093 14,886 3,806 Other Ambulatory Health Care Services(6219) 524,968 14, ,286 1,062 Other Information Services(5191) 276,204 6, , Other Investment Pools and Funds(5259) 111,809 1, Other Residential Care Facilities(6239) 328,946 7, Outpatient Care Centers(6214) 520,601 12, , Securities and Commodity Exchanges(5232) 5, Software Publishers(5112) 262,909 8, ,903 3,317 14

18 Employment by Occupation In looking at employment in Cherokee County, both by industry sector and by occupation, it is clear that the county has a higher concentration of white collar employment than is found in either the state of Georgia or the United States as a whole. When considering occupation codes, where it is easier to discern white collar employment, a total of 67.6 percent of the county s employed population works in white collar occupations, compared to 62.2 percent for the state of Georgia and just 61.6 percent of the U.S., while blue collar employment is below state and national averages. Number of Employees in White Collar Sectors The Cherokee Office of Economic Development completed a White Collar Business Recruitment Strategy in 2009 that identified the following targeted business sectors for the area: Customer Service/Technical Support Centers Financial Services Healthcare Information Technology Regional Headquarters Retirement Services The following table provides total employment in the 12-county labor shed within key NAICS codes that make up the Cherokee County white collar targeted industry sectors. It shows that Professional/Scientific/Technical Services and Healthcare and Social Assistance are the sectors with the greatest number of employees in the 11-county primary labor shed and are among the top three in North Fulton County, where Information is the second highest ranked subsector. Information is the third highest ranked subsector in the 11-county primary labor shed. In Cherokee County, Healthcare and Social Assistance is the sector with the greatest number of employees followed by Professional, Scientific and Technical Services and Management, Scientific and Technical Consulting Services. 15

19 Cherokee County Labor Shed Business Summary Business Summary 2010 Employees: Number of Employees by NAICS Primary Labor Shed North Fulton County Cherokee County Accounting, Tax Preparation, Bookkeeping, and Payroll Services(5412) 5,977 2, Activities Related to Credit Intermediation(5223) 5,783 2, Business Support Services(5614) 19,106 5,980 1,210 Computer Systems Design and Related Services(5415) 16,730 12, General Medical and Surgical Hospitals(6221) 13,214 1, Health Care and Social Assistance(62) 71,485 16,519 4,509 Information(51) 24,884 20, Management of Companies and Enterprises(55) 1, Management of Companies and Enterprises(5511) 1, Management, Scientific, and Technical Consulting Services(5416) 23,851 11,949 1,343 Medical and Diagnostic Laboratories(6215) Monetary Authorities - Central Bank(5211) Office Administrative Services(5611) 7,815 5, Offices of Other Health Practitioners(6213) 3, Offices of Physicians(6211) 15,520 3,806 1,093 Other Ambulatory Health Care Services(6219) 3,316 1, Other Financial Investment Activities(5239) 4,443 2, Other Information Services(5191) 1, Other Investment Pools and Funds(5259) Other Professional, Scientific, and Technical Services(5419) 11,235 2, Other Residential Care Facilities(6239) Outpatient Care Centers(6214) 1, Professional, Scientific, and Technical Services(54) 91,936 39,830 4,363 Securities and Commodity Exchanges(5232) Software Publishers(5112) 2,924 3,

20 Targets/Occupational Demand Clearly, it is critical that the region have a ready and skilled workforce to meet the needs of companies in its targeted white collar sectors outlined above if it is to be successful in recruiting them to the area. The demand analysis reveals that, with the exception of some office and administrative support occupations, all white collar occupational codes indicate growth through 2016 for the metropolitan Atlanta workforce area, which includes Cherokee County, with some projected to grow by as much as 70 to 80 percent, with many growing at a rate of 30 percent plus. This would indicate the need to increase training and recruitment efforts in these areas to ensure that the workforce is available to meet the needs of new companies in these categories. In the Customer Service/Technical Support Centers category, demand in both the customer service and computer support categories is expected to increase through Overall, computer and mathematical occupations are expected to increase by 46.2 percent, which represents an increase of almost 6,000 jobs. Specifically, computer support specialists will increase 36 percent, computer software engineers 65.5 percent, and computer and information systems managers 39.4 percent. Similarly, demand for customer service representatives is expected to grow by 42.1 percent through The Financial Services category is expected to see tremendous growth in virtually all occupations, with business and financial operations occupations projected to grow by 35.5 percent or almost 10,000 jobs in the Atlanta metro area through Specifically, demand for financial analysts is expected to increase by 47.8 percent, accountants and auditors by 37 percent, and budget analysts by 34.3 percent. In addition, because there are no occupations with declining demand related to financial services, there will be limited opportunities for retraining employees who have lost jobs due to a reduction in available job opportunities The Healthcare and Retirement Services categories require many of the same skill sets, and demand is expected to increase significantly in the coming years. Demand for healthcare practitioners and technical occupations is expected to grow an average of almost 60 percent in the area, while healthcare support occupations will grow by more than 76 percent through In total, this represents almost 20,000 new jobs in healthcare related occupations. Nursing aides, occupational and physical therapy assistants, and medical assistants all will see growth of nearly 80 percent, while physician assistants, registered nurses, physical therapists and surgical technologists are projected to grow by more than 70 percent. The Information Technology sector will require many of the same occupations as those identified for Customer Service/Technical Support Centers. In addition to the occupations addressed in that sector, exponential growth is projected for computer systems analysts at 52.5 percent, database administrators at 49.7 percent, and network and computer systems administrators at 52.9 percent. While it is difficult to identify specific occupation codes for Regional Headquarters, where a variety of skill sets are required, it is important to note that the overall management occupations category is expected to grow by 26.7 percent, while office and administrative support jobs 17

21 are projected to increase by 24.8 percent. However, demand for telephone operators, file clerks, computer clerks and order clerks is expected to decline, which might provide for opportunities to retrain those employees for positions in growing occupations to support regional headquarters operations. In terms of management positions, no occupations are projected to decline, so that growth must be addressed by additional graduates and recruitment of professionals from outside the market. Workforce Age While the current median age of the Cherokee County labor shed population is below the U.S. median, it is projected to increase at a faster rate than the U.S. median. The median age within the labor shed is currently 35.1 and is projected to be 36.6 by 2015, while the United States median is 37.1 and projected to increase to 37.9 within five years. Educational Attainment An educated and trainable workforce is the combined result of quality public school systems and access to nearby colleges and universities. Cherokee County public schools are among the highest ranked in the state of Georgia. In addition, Cherokee County is home to Chattahoochee Technical College and Reinhardt University, as well as having ready access to many other post-secondary institutions throughout the Atlanta metropolitan area. These offerings contribute to the educational attainment of the area. Of the population age 25 and over in the 11-county labor draw area, an estimated 43 percent have an associate, bachelor or graduate degree, while an additional 20 percent have attended college. In North Fulton County, 67 percent of the 25 plus population has a college degree, with an additional 15 percent having attended college. This translates to a pool of more than one million residents in the labor shed who have attended or completed college. In Cherokee County, 43 percent have an associate, bachelor or graduate degree, while an additional 22 percent have attended college. That is projected to increase to 47 percent by The following chart provides the specific data on educational attainment in the Cherokee County labor shed: 18

22 Cherokee County Labor Shed North Fulton County United States State of Georgia Cherokee County Educational Attainment Population Age 25+ (2010) 204,363,850 6,435,116 1,658, , ,801 Grades K-8 (2010) 12,717,789 6% 382,761 6% 77,943 5% 4,098 3% 4,631 2% Grades 9-12 (2010) 17,609,194 9% 669,580 10% 117,049 7% 9,882 7% 6,080 2% High School Graduate (2010) 60,681,691 30% 1,942,989 30% 430,609 26% 35,710 25% 35,103 13% Some College (2010) 40,699,390 20% 1,239,516 19% 326,984 20% 31,280 22% 40,669 15% Associate Degree (2010) 15,605,331 8% 431,181 7% 126,168 8% 11,761 8% 16,203 6% Bachelors Degree (2010) 36,055,704 18% 1,147,111 18% 396,710 24% 35,047 25% 108,934 41% Graduate Degree (2010) 20,994,751 10% 621,978 10% 183,324 11% 13,423 10% 53,181 20% Total Associate, Bachelors or Graduate Degree 36% 35% 43% 43% 67% Population Age 25+ (2015) 216,640,711 7,140,610 1,890, , ,663 Grades K-8 (2015) 12,235,672 6% 373,328 5% 84,405 5% 3,330 2% 4,867 2% Grades 9-12 (2015) 15,689,326 7% 638,454 9% 112,619 6% 9,863 6% 5,681 2% High School Graduate (2015) 65,179,032 30% 2,201,027 31% 498,787 26% 40,880 24% 41,351 14% Some College (2015) 41,679,123 19% 1,328,037 19% 346,116 18% 35,810 21% 41,918 14% Associate Degree (2015) 17,889,417 8% 530,430 7% 157,970 8% 15,649 9% 18,573 6% Bachelors Degree (2015) 40,303,992 19% 1,332,979 19% 466,084 25% 46,019 27% 127,572 42% Graduate Degree (2015) 23,664,149 11% 736,355 10% 224,601 12% 17,792 11% 62,699 21% Total Associate, Bachelors or Graduate Degree 38% 36% 45% 47% 69% 19

23 Higher Education Recent high school graduates and adults considering returning to college have a variety of options available in the Cherokee County, with Chattahoochee Technical College and Reinhardt University located in the county and Kennesaw State University located nearby in Cobb County, as well as the other various other institutions in the labor shed area. Information on these three key institutions may be found below: Location Chattahoochee Technical College Reinhardt University Kennesaw State University Cherokee County (Canton and Woodstock campuses) Cherokee County (near Waleska) Cobb County (Kennesaw) Type 2-Year, Public 4-Year, Private 4-Year, Public Enrollment 11,400 1,220 22,500 Degrees Awarded Certificates, Associate of Applied Science, Associate s Degrees Associate, Bachelor s, Master s Certificates, Bachelor s, Master s, Doctorate Tuition In-State: $2,370 per year In-State: $16,996 per year In-State: $5,042 per year Out-of-State: $4,395 per year Out-of-State: $16,996 per year Out-of-State: $14,618 per year Chattahoochee Technical College (CTC) is a two-year public college with an enrollment of 11,400 students. CTC operates eight campuses in North Georgia, including one in Canton and one in Woodstock. CTC offers technical certificates, Associate of Applied Science and Associate degrees in a number of areas. In addition to its certificate and degree programs, CTC also provides adult and continuing education courses as well as training for business and industry in Cherokee County. Reinhardt University is a private university affiliated with the United Methodist Church and is located on a 525-acre residential campus near Waleska in Cherokee County. The college has a total enrollment of 1,220 students and offers 44 majors including four Master s programs, including a Master s of Business Administration program. Reinhardt also offers accelerated Bachelor degree completion programs which are designed for working adults. Kennesaw State University (KSU) is located in Kennesaw, Georgia, which is in Cobb County near Cherokee County. KSU was recognized by U.S. News & World Report's America s Best Colleges issue in both 2008 and 2009 as an up-and-coming university. With an enrollment of 20

24 nearly 22,500, KSU is the third largest state university in the University System of Georgia, and offers more than 60 certificate and Bachelor degree programs. KSU also offers numerous graduate degree programs in professional concentrations including nursing, business, information systems, conflict management, education and professional writing. KSU s Executive MBA program is the second-largest executive MBA program in the country and has been recognized by Business Week magazine with top 10 ratings in e-business and teamwork. The program was also recognized among the best in the world by CEO Magazine in Elementary and Secondary Education The 12-county labor shed area is home to 16 public school districts that offer a K-12 education. Twelve districts in the area report graduation rates that exceed the Georgia average of 80.8 percent, and one of the districts (Calhoun in Gordon County) reports a graduation rate above 90 percent. Ten districts in the region have a composite ACT score that is at or above the state average of 20.7, including Cherokee County at 21.1 percent, and 11 districts have a higher percentage of students eligible for Hope Scholarships than the state average of 38.2 percent, including Cherokee County at 43.5 percent. Eleven districts, including Cherokee County, have teacher salaries above the state average. Employer Satisfaction A cross-section of white collar employers were surveyed online to gauge their satisfaction and opinions on issues related to the county s workforce. In this survey, 100 percent of employers stated they were satisfied or very satisfied with the employees they hire in Cherokee County. When asked to rate their employees in specific skill areas, employers participating in the survey also gave employees high marks. Again, almost all employers were satisfied or very satisfied, particularly in the areas of employer/employee relationships, punctuality and trainability. The lowest level of satisfaction was found in the area of soft skills, with one employer expressing dissatisfaction in this area. In the areas of technical skills and productivity, some employers indicated they were neither satisfied nor dissatisfied with their employees. Labor Costs A recent survey of employers in the region found that 100 percent of respondents felt that the cost of labor is about right when compared to the quality of labor available. 21

25 The average industry earnings in the Cherokee County labor shed for all sectors is $43,145, which is slightly lower than the United States average but slightly higher than the state of Georgia average. Related only to the white collar sectors listed below, the Cherokee County labor shed average is $55,284, which is lower than the United States average of $68,163 and slightly lower than the state of Georgia average of $59,370. For Cherokee County, the average industry earnings are $33,715, which is lower than the United States, Georgia and labor shed averages. Related only to the white collar sectors below, the average is $41,483, which is also lower than the United States, Georgia and labor shed averages. The only sector where the Cherokee County average is higher than all other averages is with Data Processing, Hosting and Related Services in which the Cherokee County average wage is 84,440. NACIS Code United States Georgia Cherokee County Labor Shed Cherokee County Average All Industries $ 45,559 $ 42,902 $ 43,145 $ 33,715 Average White Collar Sectors $ 60,787 $ 54,495 $ 52,184 $ 41,483 NAICS 51 Information $ 69,155 $ 70,710 $ 63,929 $ 38,718 NAICS 52 Finance and insurance $ 79,734 $ 59,182 $ 51,753 NAICS 54 Professional and technical services $ 74,711 $ 69,269 $ 65,629 $ 45,856 NAICS 55 Management of companies and enterprises $ 91,429 $ 82,045 $ 83,813 $ 44,660 NAICS 61 Educational services $ 42,303 $ 39,299 $ 37,317 $ 27,494 NAICS 62 Health care and social assistance $ 43,832 $ 42,709 $ 43,640 $ 38,164 NAICS 71 Arts entertainment and recreation $ 31,192 $ 31,124 $ 18,787 $ 17,298 NAICS 92 Public Administration $ 53,939 $ 46,307 $ 45,174 $ 40,427 Targeted Sub Sectors NAICS 221 Utilities $ 77,171 $ 78,036 $ 78,218 $ 68,000 NAICS 517 Telecommunications $ 70,655 $ 73,440 $ 62,877 $ 49,588 NAICS 518 Data processing, hosting and related services $ 76,170 $ 77,496 $ 75,335 $ 84,440 NAICS 519 Other information services $ 58,198 $ 47,927 $ 57,034 $ 18,580 NAICS 521 Monetary authorities -central bank $ 84,431 NAICS 522 Credit intermediation and related activities $ 58,575 $ 55,605 $ 53,455 $ 48,135 NAICS 523 Securities, commodity contracts, investments $ 176,131 $ 129,529 $ 84,198 NAICS 524 Insurance carriers and related activities $ 68,077 $ 66,212 $ 61,060 $ 57,359 NAICS 525 Funds, trusts and other financial vehicles $ 79,545 22

26 NAICS 531 Real estate $ 43,075 $ 46,451 $ 51,302 $ 31,681 NAICS 532 Rental and leasing services $ 71,103 $ 36,196 $ 38,327 NAICS 533 Lessors of nonfinancial intangible assets $ 83,863 $ 69,834 $ 60,627 NAICS 561 Administrative and support services $ 31,733 $ 32,167 $ 30,953 $ 30,766 NAICS 813 Membership associations and organizations $ 34,570 $ 33,670 $ 34,820 $ 18,411 Source: U.S. Bureau of Labor Statistics 2011 It is important to note that in the survey results, the average pay of those that commute outside of Cherokee County was between $50,000 to $74,999 for 28 percent of respondents, more than $100,000 for 21 percent of respondents, and between $75,000 to $99,999 for 20 percent of respondents. In summary, 69 percent of respondents earn more than $50,000 per year, which is somewhat on par with the average wage for the white collar sectors listed above of $55,284 in the labor shed area. 28% What is your current annual pay? 21% 20% 16% 8% 3% 3% $50,000 to $74,999 More than $100,000 $75,000 to $99,999 $35,000 to $49,999 $25,000 to $34,999 $15,000 to $24,999 Less than $15,000 23

27 Management/Professional Recruitment Recruiting management and professional staff is critical to the success of a white collar targeted industry strategy. Many areas outside major metropolitan centers find this recruitment to be challenging, even in areas such as Cherokee County that are located in close proximity to a major city. In fact, in some cases, the competition for professional employees with those major cities can exacerbate the problem in communities like Cherokee County. Among employers who participated in the online survey (note that only five participated), half said it is difficult to recruit from outside the region for professional positions. However, one quarter have found recruitment to be easy with the other quarter saying it is neither easy nor difficult to recruit professionals to Cherokee County. This is likely because some professionals would prefer to live in a smaller community, while still having access to all the amenities available in Atlanta, in addition to other advantages such as a lower cost of living. If yes, rate the ease or difficulty of recruitment for such professional positions: 50% 25% 25% Difficult Easy Neither easy nor difficult 24

28 Workforce Training Inventory Overview Cherokee County employers and potential employees have access to a wide variety of education and training programs that ensure a welleducated and highly-skilled workforce. Three post-secondary education and training providers in the area were invited to complete an online inventory of the programs they offer. The following providers completed the inventory questionnaire: Chattahoochee Technical College Reinhardt University Kennesaw State University Among the providers participating in the inventory, it is apparent that a variety of training programs are available at various times and locations throughout the area. At least one provider offers customized training for businesses, in addition to the routine courses that are available. Area training providers also have apprenticeship or internship programs to give students real world work experience. The online survey results indicate that employers are generally satisfied with the quality of training programs offered in the region, but would like to see more training available in soft skill areas and teamwork. Communications, teamwork, mechanical and electrical technical skills are four areas in which employers would like to see additional training opportunities offered. In considering training needs, employers who participated in the online survey said that soft skills, productivity and punctuality were the most common deficiencies found in their new hires. The online survey results indicate that employers are generally satisfied with the quality of education and training programs offered in the region, but would like to see more training available in communications, sales, customer service, and Six Sigma/Green-Black Belt. 25

29 Recommendations Ongoing Update of Workforce Data and Workforce Marketing Profile An available and trained workforce is an important aspect of every site search today. Prospects expect to be provided with the most up to date workforce data available in a timely manner. This Workforce Analysis will provide that data but it will be up to the Cherokee Office of Economic Development to ensure that such data is kept up to date going forward on at least an annual basis. Training/Programs for Key Occupations in Targeted Sectors As part of the workforce analysis completed for Cherokee County, occupational demand data was reviewed for selected occupational codes in each of the six targeted business sectors. Clearly, it is critical that the Cherokee County have a ready and skilled workforce to meet the needs of companies in these sectors if it is to be successful in recruiting them to the area. As previously mentioned, Cherokee County s targeted white collar sectors present some challenges in terms of occupational demand. Virtually every occupational code within the county s targeted sectors are projected to grow through 2016, some by as much as 70 to 80 percent, with many growing at a rate of 30 percent plus. This projected growth will require some aggressive education/training and recruitment strategies to meet the workforce needs of new and existing employers in these white collar sectors. The Cherokee Office of Economic Development should work with the local training institutions to ensure that new programs are implemented for new graduates, as needed, and training is offered for existing business industry. 26

30 Workforce Findings The Cherokee County labor shed is comprised of all or part of 12 counties in north central Georgia. The area has a total population of 2,393,379 in the 11-county primary area, plus an additional 316,478 in North Fulton County. The age 16+ population is 1,850,784 in the 11 counties, with 300,372 in North Fulton County. The total labor force in the primary labor shed is 1,327,887, with 219,371 in the North Fulton County labor force. Both the primary area and North Fulton County have a labor participation rate above both the state and national averages. The 11-county area participation rate is 71.8 percent, with North Fulton County at 73 percent, compared to a state average of 66.3 percent and a U.S. average of 65.2 percent. While many Cherokee County residents commute into Fulton County, including metro Atlanta for work, residents of Atlanta and areas south of there are not likely to commute to Cherokee County. For that reason, only the northern portions of Fulton County are considered to be part of the Cherokee County labor shed. This includes the cities of Alpharetta, Johns Creek, Roswell and Sandy Springs and encompasses nine Zip Code areas in North Fulton County. The 11-county labor shed area and North Fulton County have both experienced tremendous growth in the last 10 to 20 years, with the 11- county labor shed growing at 37 percent, while North Fulton County grew at 33.7 percent. This rate of growth significantly outpaces the state and national growth rates, and the Cherokee County labor shed is projected to continue growing at a rate faster than the state and nation for the next five years. The 11-county area is expected to see growth of 13.6 percent, while North Fulton County is projected to grow by 12.5 percent. The Atlanta Regional Commission (ARC) recently completed its Regional Snapshot of the Atlanta region which showed that Cherokee County s population has grown percent between and is projected to grow another 93.6 percent between Unemployment in the 11-county area is below the Georgia state average and in line with the national rate, while North Fulton County s unemployment rate is below both the state and national averages. The unemployment rate in the labor shed for the month of January 2011 was 9.7 percent, with North Fulton County at 8.2 percent for the same period. Four counties in the labor shed area reported rates below the state and national averages in January, with six counties reporting rates above 11 percent for the same period. While the Retail and Manufacturing sectors have the greatest employment in the 11-county labor shed area, Professional/Scientific/Technical Services is also well-represented. In looking at only white collar employment, Management/Scientific/Technical Consulting Services; Business Support Services and Computer Systems Design are the leading subsectors. White collar employment in Cherokee County totals 67.6 percent, which is above the state (62.2 percent) and national (61.6 percent) averages. The recent Regional Snapshot released by the ARC shows that Cherokee County is projected to lead the Atlanta region over the next 30 years ( ) with a percent increase in jobs. Also according to the ARC Regional Snapshot, of total employment in Cherokee 27

31 County in 2010, an estimated 12.8 percent are in the highest-paying sectors, which include Professional/Scientific/Technical, Information, Finance, Wholesale Trade and Management of Companies. It is projected that as of 2040, 18.8 percent of jobs in Cherokee County will be in the highest-paying sectors. While the Atlanta metropolitan area was recently ranked by Forbes magazine as the third worst metropolitan area for commuters, only 21 percent of Cherokee County residents surveyed for this study indicate that they work in Cherokee County. They primarily commute to Atlanta, Canton, Marietta, Alpharetta and Sandy Springs. The Cherokee County workforce experiences more out-commuting (78.7 percent of residents) than in-commuting (55.6 percent of workers), according to the U.S. Census Bureau. The Cherokee County workforce is well-educated compared to the state and national averages. In the 11-county labor shed area, 43 percent of residents have a college degree, with an additional 20 percent having attended college without earning a degree. This compares to 35 percent of Georgia residents and 36 percent of U.S. residents who hold college degrees. In addition to an educated workforce, Cherokee County also has a skilled workforce supported by the fact that 32 percent of Cherokee County participants in the Georgia Work Ready program, which provides skills assessment and certification for job seekers, scored Gold or Platinum when the overall goal is 20 percent. The labor shed area has significantly higher average household and per capita income averages than the state of Georgia and the U.S. The 11-county primary labor shed has an average household income of $81,453, with North Fulton County reporting an average household income of $130,156, compared to a state average of almost $69,000 and a U.S. average of just over $72,000. Similarly, the area s per capita income is also well above state and national averages. The average industry earnings in the Cherokee County labor shed for all sectors is $43,145, which is slightly lower than the United States average but slightly higher than the state of Georgia average. For white collar sectors only, the Cherokee County labor shed average is $55,284, which is lower than the United States average of $68,163 and slightly lower than the state of Georgia average of $59,370. The resident survey showed that 69 percent of respondents earn more than $50,000 per year, which is on par with the average wage in the labor shed area for white collar positions. Cherokee County s targeted white collar sectors present some challenges in terms of occupational demand. Virtually every occupational code within the county s targeted sectors are projected to grow through 2016, some by as much as 70 to 80 percent, with many growing at a rate of 30 percent plus. This projected growth will require some aggressive education/training and recruitment strategies to meet the workforce needs of new and existing employers in these white collar sectors. 28

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