Narrowing the Skills Gap Regional Coalition. Fall 2014 Local Labor Market Survey Final Report
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- Eleanore Cobb
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1 Narrowing the Skills Gap Regional Coalition Fall 2014 Local Labor Market Survey Final Report Overview Understanding the labor market in a given area is vital to formulating a strategy to address local skills gaps. There is a wealth of public information at the national and even state level for this purpose, but local information is lacking. The coalition determined that while support at the state and national level is very helpful, and that there can be commonalities with statewide and national skills gaps, at the end of the day this coalition is about solutions for local businesses. We needed to understand the needs of first recommendation of the coalition's 2013 report was to create a multi-year survey of local employers, focused on the demand and retirement trends within specific occupations. The survey was sent to about 300 employers in the second quarter of 2014, with 66 unique responses, resulting in a response rate of 22%. Based on estimates of the sample population (in this case using both total employment and total establishments from 1 st quarter 2014 QCEW data from BLS), we estimate a 90% confidence interval, plus or minus 10%. About the Participants While the main focus of the survey was occupational data, something sorely lacking at the local level, we also collected data about the employers themselves. The industry mix compared satisfactorily to BLS QCEW 1 st quarter establishments and employment levels. As one might expect, industry sectors known to have difficulty recruiting certain skilled positions were overrepresented, while industry sectors with mainly low skill positions were underrepresented. This likely reflects self-interest of businesses very concerned with their recruiting difficulties as a motivating factor for completing the survey. Manufacturing, Education and Healthcare, and certain subsectors within Trade, Transportation and Utilities (largely pharmacies and transportation companies) were overrepresented, though within acceptable levels. Leisure and Hospitality and most of Retail Trade were underrepresented, though this isn t surprising given that many of the positions in those industries are low skill, which corresponds to low difficulty in recruitment. Public Administration was underrepresented, which is interesting, given that we know workers in government employment are older on the whole than most industries, which will result in many skilled positions opening in the coming decades. More effort should be made in this sector in future surveys. The survey responses covered employment of 20,008 in the survey area, which worked out to about 13.4% of total employment in the 9 county survey coverage area. While this is a good coverage rate, this figure also reflects the imperfect nature of county data. The decision was made to include companies/communities with strong ties to the Chippewa Valley, however the data we have to compare with (BLS 1Q QCEW) is only available down to the county level. Were we just to tabulate Chippewa Valley businesses in the survey data, we would likely have a much higher coverage rate. Might be worth looking in to adding ability to separate employment in each county in future surveys, if this weren t too
2 onerous to employers. Response rate is much more important. The median employment in the survey region for the respondent businesses was 101, though the actual distribution covered employment sizes all across the board. The respondents employed a total of 38,557 throughout Wisconsin. About half of the respondent businesses also employed workers outside the State of Wisconsin. Difficulty Filling Certain Positions 85% (56) of the respondent businesses indicated that they have difficulty hiring certain positions within western Wisconsin. Businesses were given the ability to designate up to five occupations they have difficulty hiring in western Wisconsin, as well as experience and education desired in each. Almost half of the businesses listed 3 or more hard-to-fill titles. Occupations identified by respondent businesses totaled 3,353 current employment in the region. Businesses projected 644 openings in the next 12 months in these hard-tofill positions, with 1,037 openings in the next 2 years. 2
3 Hard to Fill Occup a tio ns Summa ry 12 mo nths2 yrs RN Welding CNC Related Software/IT CNA Driver (CDL) Physician Assistant Maintenance Machinist Physicia n Eng ine e r Engineering Tech Therapist 8 22 Accountant 6 1 Electrician 4 9 The table above summarizes some of the hard-to-fill occupations listed by businesses (see Appendix A for full listing). Two occupation groups of particular interest are physicians, and engineers. The engineers listed as hard to fill were primarily mechanical engineers and electrical / computer engineers, neither of which is produced in the region. And we also don't produce physicians. These represent the occupations where our only option currently is to attract enough of these individuals to fill employer openings. Healthcare, software/it related, and skilled manufacturing needs are also well represented on the above list. While some positions only required a high school diploma, the businesses preferred associate s and bachelor s degrees for most, and to a lesser extent, certifications (see graph on following page), supporting the inference that these hard-to-fill positions are higher-skilled than many positions throughout the region. 3
4 Some businesses specified no experience necessary for the listed positions, however the majority were looking for 1-2 years of experience. Frequency distributions of experience desired by positions listing education desired showed a correlation between higher education levels in hard to fill positions and more experience desired. While all education categories had a certain number of positions specifying no experience required, the distributions clearly skew towards a median of 1-2 years desired for terminal education of Certifications, Associate s degrees, and Bachelor s degrees. It seems likely that this trend would continue into Master s and PhD s, a lower number of observations in those categories made this statistically difficult to verify. The statistical median of the High School Diploma or equivalent category was about 6 months experience desired, though there were plenty of observations in both the no experience required, 1 year, and 2 years categories. This distribution was weighted more towards little or no experience vs higher education levels. This education and experience data for each occupation gives us a valuable window into solving the specific recruitment issues for individual occupations. 4
5 Retirement Concerns In addition to current positions that employers are having difficulty recruiting, national demographic trends show that upcoming baby boomer retirements will exacerbate the recruitment problem, making certain positions even harder to hire, as well as introducing new positions of concern to the mix. Businesses were given the ability to designate up to five occupations that were areas of concern given upcoming retirements in western Wisconsin, as well as experience and education desired in each. About two-thirds of the business respondents indicated that retirements were a concern. About onethird of the businesses listed 3 or more retirement concern titles, with the majority of businesses in the 1-2 range. Occupations identified by respondent businesses totaled 4,222 current employment in the region. Businesses projected 609 of these positions turning over due to retirement in the near-term. While some positions only required a high school diploma, the businesses preferred associate s and bachelor s degrees for most, and to a lesser extent, certifications or some college, supporting the inference that these about-to-retire positions are higher-skilled than many positions throughout the region. In fact, this distribution skewed even more towards higher education levels than the current hard-to-fill positions listed earlier. 5
6 R e tire me nt Co nce rns # R e tiring RN 176 Physicia n 110 CNC Related 61 Ma na g e r/exe cutive 50 Machinist 17 Maintenance 15 LPN 11 Eng ine e r 10 Accountant 7 Medical Assistant 6 Welding 5 Driver (CDL) 3 Engineering Tech 3 CNA 3 Electrician 3 Software/IT 2 The table above summarizes some of the occupations listed by businesses of particular concern for retirements (see Appendix B for full listing). Two occupation groups of again of particular interest are physicians, and engineers. The engineers listed as hard to fill were primarily mechanical engineers for this section, which we don't produce in the region. And we also don't produce physicians. These represent the occupations where our only option currently is to attract enough of these individuals to fill employer openings. Healthcare and skilled manufacturing needs were again well represented on the above list. Software/IT was less represented, which highlights how new this industry cluster is in the area, and the relative youth of those in the occupation as well. Managers/Executives, also bolded in red above, were also a major concern. 65% of businesses responding to this question listed this type of occupation, a very high frequency. This shows the relative age of the occupation, as well as how concerned businesses are with losing the accumulated experience found in these positions. 6
7 Some businesses specified no experience necessary for the listed positions, however the majority were looking for experience, which highlights the accumulated experience and expertise about to be lost in these positions. In fact the experience desired trends much higher on the distribution than the current hard-to-fill positions listed earlier with a significant number looking for 5 years or more. Frequency distributions of experience desired by positions listing education desired also showed a correlation between higher education levels in about-to-retire positions and more experience desired. While most education categories had a certain number of positions specifying no experience required, the distributions clearly skew higher than the current hard to fill positions, with many desiring 2-5 years or more at most education levels. 7
8 Degrees Hired Administrative Professional Accounting Human Resource Management 43 Business Administration 31 Finance Operations & Technology Management Customer Service Representative Training & Human Resource Development Small Business Accounting 17 Electrician Graphic Design & Interactive Media Organizational Leadership & Communication Top 20 Degrees by Frequency Air Conditioning, Heating & Refrigeration Technology 11 Risk Management & Insurance 11 Food Safety 10 Communication 10 Finance, Investment & Banking 10 Risk Management & Insurance 9 Food Science &Technology 8 Construction Management 8 Data were also collected on which degrees/certifications each employer hired. While we have no way of knowing how many of these students they hire, we do know how many businesses in the survey hire each particular degree/certification. The majority of the top 20 were business operations related degrees/certifications, occupations like administrative professional, accountant, HR, etc., which transcend industry sectors. For example, with 49 businesses hiring the administrative professional degree/certification, out of 66 total responses, that equals 74% of respondent businesses. Most businesses hire at least a few of these "business" occupations, by necessity. However, there were some interesting standouts like electrician, food science, and construction management. The full listing can be found in Appendix B. Items in red, italicized print were write-ins. 8
9 Current employees Projected openings Projected openings Appendix A: Hard to Fill Occupations with title 12 months 2 years Accountants Agricultural Inspectors Appraisers, Real Estate Architects, Except Landscape and Naval Buyers and Purchasing Agents, Farm Products Civil Engineers Computer Hardware Engineers Computer Systems Engineers/Architects Computer-Controlled Machine Tool Operators, Metal and Plastic Construction Managers Cooks, Institution and Cafeteria Cooks, Restaurant Cost Estimators Cutting, Punching, and Press Machine Setters, Operators, and Tenders, Metal and Plastic Dental Assistants Driver/Sales Workers Educational, Guidance, School, and Vocational Counselors Electrical Drafters Electrical Engineering Technicians Electrical Engineers Electricians Electro-Mechanical Technicians Electronics Engineering Technicians Engine and Other Machine Assemblers Financial Managers, Branch or Department First-Line Supervisors of Mechanics, Installers, and Repairers First-Line Supervisors of Office and Administrative Support Workers First-Line Supervisors of Production and Operating Workers Food Batchmakers Food Cooking Machine Operators and Tenders Food Scientists and Technologists Food Service Managers General and Operations Managers Grinding, Lapping, Polishing, and Buffing Machine Tool Setters, Operators, and Tenders, Metal and Plastic Heavy and Tractor-Trailer Truck Drivers Hotel, Motel, and Resort Desk Clerks Industrial Engineering Technicians Industrial Engineers Information Security Analysts Inspectors, Testers, Sorters, Samplers, and Weighers Internists, General Laborers and Freight, Stock, and Material Movers, Hand Light Truck or Delivery Services Drivers Loan Officers Logistics Analysts Machinists Maids and Housekeeping Cleaners Maintenance and Repair Workers, General Maintenance Workers, Machinery Market Research Analysts and Marketing Specialists Massage Therapists Mechanical Drafters Mechanical Engineering Technologists Mechanical Engineers Medical Records and Health Information Technicians Millwrights Mixing and Blending Machine Setters, Operators, and Tenders Mobile Heavy Equipment Mechanics, Except Engines Model Makers, Metal and Plastic Network and Computer Systems Administrators Neurodiagnostic Technologists Nurse Practitioners Nursing Assistants Occupational Health and Safety Specialists Office and Administrative Support Workers, All Other Operating Engineers and Other Construction Equipment Operators Paper Goods Machine Setters, Operators, and Tenders Personal Financial Advisors Pesticide Handlers, Sprayers, and Applicators, Vegetation Pharmacists Pharmacy Technicians Physical Therapists Physician Assistants Public Relations and Fundraising Managers Purchasing Agents, Except Wholesale, Retail, and Farm Products Registered Nurses Regulatory Affairs Specialists Rehabilitation Counselors Residential Advisors Sales Agents, Financial Services Secretaries and Administrative Assistants, Except Legal, Medical, and Executive Software Developers, Applications Speech-Language Pathologists Structural Metal Fabricators and Fitters Team Assemblers Tellers Welders, Cutters, Solderers, and Brazers
10 Current Number of employees Anticipated number of Appendix B: Retirements with title: employees retiring: Accountants 23 7 Advertising Sales Agents 15 4 Agricultural Inspectors 10 4 Appraisers, Real Estate 1 1 Architectural and Engineering Managers 1 1 Bill and Account Collectors 4 1 Buyers and Purchasing Agents, Farm Products 2 1 Chief Executives Customer Service Representatives 16 8 Dentists, General Electrical and Electronics Repairers, Commercial and Industrial Equipment 9 4 Electrical Drafters 4 3 Electrical Engineers 1 1 Electrical Power-Line Installers and Repairers 13 3 Electricians 3 3 Engine and Other Machine Assemblers 11 5 File Clerks 1 1 Financial Clerks, All Other 1 1 First-Line Supervisors of Mechanics, Installers, and Repairers 9 5 First-Line Supervisors of Production and Operating Workers 15 8 Food Cooking Machine Operators and Tenders General and Operations Managers Graphic Designers 12 3 Heavy and Tractor-Trailer Truck Drivers 85 3 Human Resources Managers 1 1 Human Resources Specialists 2 1 Industrial Production Managers 4 3 Internists, General Laborers and Freight, Stock, and Material Movers, Hand 45 7 Laundry and Dry-Cleaning Workers 40 5 Licensed Practical and Licensed Vocational Nurses Logistics Analysts 5 3 Machinists Mail Clerks and Mail Machine Operators, Except Postal Service 1 1 Maintenance and Repair Workers, General 3 1 Maintenance Workers, Machinery 79 9 Manufacturing Engineers 10 3 Mechanical Engineers 10 5 Medical and Clinical Laboratory Technologists 0 0 Medical Assistants Medical Secretaries Millwrights 2 1 Model Makers, Metal and Plastic 1 1 Nursing Assistants 45 3 Operations Research Analysts 1 1 Packaging and Filling Machine Operators and Tenders Paper Goods Machine Setters, Operators, and Tenders Pharmacists Pharmacy Technicians Printing Press Operators 12 3 Production, Planning, and Expediting Clerks 1 1 Purchasing Managers 5 3 Radiologic Technologists Receptionists and Information Clerks 5 1 Registered Nurses Rehabilitation Counselors 3 1 Reporters and Correspondents 30 7 Sales Managers 10 5 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 45 9 Software Developers, Applications 2 2 Veterinarians 5 2 Welders, Cutters, Solderers, and Brazers
11 APPENDIX C: Degrees Hired, Frequency (# of Business Repondents out of 66) Administrative Professional 49 Doctorate in Nursing 3 Accounting 47 Environmental Public Health 3 Human Resource Management 43 Medical Microbiology & Immunology 3 Business Administration 31 Hotel, Restaurant & Tourism Management 3 Finance 25 Agronomy 2 Operations & Technology Management 24 Animal Sciences 2 Customer Service Representative 22 Farm Business & Production Management 2 Training & Human Resource Development 21 Geography 2 Small Business Accounting 17 Electrical Power Distribution 2 Electrician 16 International Business 2 Graphic Design & Interactive Media 16 Teacher - Art Education 2 Organizational Leadership & Communication 12 Acturial Science 2 Air Conditioning, Heating & Refrigeration Technology 11 Communication Sciences & Disorders 2 Risk Management & Insurance 11 Dental Hygienist 2 Food Safety 10 Entomology 2 Communication 10 Physics 2 Finance, Investment & Banking 10 Social Welfare 2 Risk Management & Insurance 9 Agricultural & Applied Economics 1 Food Science &Technology 8 Agriscience Technician 1 Construction Management 8 Landscape Architecture 1 Environmental Sciences 7 Landscape, Plant & Turf Management 1 Industrial Design 7 Soil Science 1 Journalism 7 Electrical Line Worker 1 Mass Communication 7 Family & Consumer Science Education 1 Health Care Administration 7 School Counseling 1 Nursing Assistant 7 School Psychology 1 Nutritional Sciences 6 Teacher - Biology 1 Construction 6 Teacher - Chemistry 1 Environmental Refrigeration, Air Conditioning & Heating Service Technician 6 Teacher - Economics 1 Plumber 6 Teacher - Elementary & Middle School 1 Professional Communication & Emerging Media 6 Teacher - English 1 Technical & Professional Communication 6 Teacher - French 1 Dietetics 6 Teacher - Geography 1 Health Information Technology 6 Teacher - German 1 Nursing - Associate Degree 6 Teacher - Health, Wellness & Fitness 1 Nursing - BS 6 Teacher - History 1 Human Development & Family Studies 6 Teacher - Life & Environmental Science 1 Civil Engineering Technician - Structural 5 Teacher - Marketing & Business Education 1 Chemistry 5 Teacher - Mathematics 1 Exercise Science & Sport Studies 5 Teacher - Natural Science 1 Kinesiology 5 Teacher - Physics 1 Medical Assistant 5 Teacher - Psychology 1 Medical Laboratory Technician 5 Teacher - Reading 1 Nutritional Sciences 5 Teacher - Science 1 Pharmacology & Toxicology 5 Teacher - Secondary Education 1 Pharmacy Technician 5 Teacher - Social Studies 1 Alcohol & Other Drug Abuse (AODA) 5 Teacher - Sociology 1 Early Childhood Education 5 Teacher - Spanish 1 Agricultural Business Management 4 Teacher - Special Education 1 Architectural Studies 4 Teacher - Technology 1 Sheet Metal 4 Political Science 1 Chemistry w/business Emphasis 4 Genetics 1 Economics 4 Doctor of Dental Science 1 Career, Technical Education & Training 4 Veterinary Technician 1 Teacher - Early Childhood 4 Real Estate Commercial & Residential Appraiser 1 Interpreter Training 4 CAD Operator 1 Biochemistry 4 Facilities manager 1 Biological Sciences 4 Biological Aspects of Conservation 0 Biology 4 Community & Environmental Sociology 0 Diagnostic Medical Sonography 4 Forest Science 0 Microbiology 4 Horticulture 0 Nurse Practitioner 4 Plant Pathology 0 Physical Therapist Assistant 4 Wildlife Ecology 0 Psychology 4 Residential Construction 0 Radiography 4 Steamfitter 0 Renal Dialysis Technician 4 Theater & Studio Arts 0 Respiratory Therapy 4 Sport Management 0 Surgical Technologist 4 Applied Social Science 0 Hospitality Management 4 Global Studies 0 Child Care Services 4 International Economics & Development 0 Real Estate Property Management 3 International Politics & U S Foreign Relations 0 Retail Merchandising & Management 3 Public Administration 0 Athletic Training 3 Real Estate & Urban Land Economics 0 American Sign Language Studies 3 Life Sciences Communication 0 Biomedical Sciences 3 Golf Enterprise Management 0 Chemistry w/business Emphasis 3 Cosmetology 0 Dental Assistant 3 11
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