Utah A High-Demand JOBS Economy. January 2015

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1 Utah A High-Demand JOBS Economy January 2015

2 STEM and High-Demand Jobs in Utah Innovate+Educate applauds the work of the Utah STEM Impact Center and the Utah Department of Workforce Solutions as they lead with a vision for a STEM-competitive workforce to ensure Utah s continued economic success in the global workforce. This report focuses on laying out a framework for Utah to approach their economy through the lens of high-demand jobs, using real labor data and research validated by Innovate+Educate through its Skills to Jobs framework of competency-based hiring and training. We believe Utah can lead the nation in competency-based employment with the strong leadership already demonstrated by the Utah STEM Action Center and its collaborators across the State. Acknowledgments We thank our partners at Burning Glass Technologies, Inc. for providing the data and resources necessary to create this report for the State of Utah. We continue to be grateful to our Board of Directors and our national partners and collaborators that support Innovate+Educate s mission and vision to create new employment pathways for all citizens based on skills and competencies. Authors Jamai Blivin Scott Fast Dr. Merrilea Mayo 2

3 Table of Contents STEM and High-Demand Jobs in Utah 2 Acknowledgments 2 Definition of Competency 4 Looking for Talent in All the Wrong Places? 7 High-Demand Jobs Drive Economic Prosperity and Promote Innovation 9 Origin of Data 9 STEM High-Demand Jobs Salt Lake City Provo-Orem Ogden-Clearfield Area Opportunities & Recommendations Information Technology Salt Lake City Provo-Orem Ogden-Clearfield IT Opportunities & Recommendations High-Demand Jobs in Additional Sectors Salt Lake City Provo-Orem Ogden-Clearfield Skills to Jobs Framework Outline About Innovate+Educate Appendix A Utah Jobs Data Appendix Spreadsheet Appendix B Salt Lake City Provo-Orem Ogden-Clearfield

4 Definition of Competency According to the Oxford Dictionary, competencies are the knowledge, skills, abilities, personal characteristics and other work-specific factors that help differentiate superior performance from average performance. Competencies are key in clearly defining the essential functions of a job. Core Competencies are the (set of) skills which are crucial to a business, in order for it to gain a competitive advantage in the market. Identifying a set of core competencies which truly affect a company s performance will save time and money in the long run. Through our research, funded by the W. K. Kellogg Foundation, we were able to identify a large hidden talent pool in Albuquerque, New Mexico that actually had the skill level necessary for an IT position in a global IT company, but did not have the traditional measures based on outdated hiring methods (degree and years of experience), so were overlooked. We know from our data that there is a hidden talent pool ready for the job openings that exist across cities. A focus on competency-based hiring and training identifies this new talent pool that will bring ROI to employers, cities and regions if they are willing to shift their behavior and integrate hiring tools that assess skills and competencies. Jamai Blivin, CEO, Innovate+Educate 4

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6 The hiring act over the last 50 years has not changed, other than the innovations of online job postings, which was a huge innovation itself. Then arose LinkedIn, Facebook and other social media channels for looking for jobs and finding talent. But the parameters have not changed. Years of experience in a specific field and specific degrees have continued to create a barrier for many young adults across the country. Even degreed candidates find themselves underemployed or unemployed (close to 50% of those 28 years old and younger in the U.S. currently with a degree are either underemployed or unemployed). Shifting from Who you know/where did you go to school to What you know/what skills can you articulate for a job is the next big paradigm shift needed for a vibrant U.S. economy. This does not displace the higher education institution, but does require a shift in the way higher education provides courses and credentials. The two-year institutions (community colleges) have more flexibility to adapt to a skills-based hiring infrastructure, and we believe they will continue to play a key role in the career and training space in years ahead. 6

7 Looking for Talent in All the Wrong Places? Workforce across the U.S. is changing rapidly. There continues to be a talent shortage in highdemand fields, and Utah is no exception. As higher education looks at new models for engaging students, states continue to focus on the demand side of the equation, realizing that the demand side is key to innovation in the workforce system. The employer can impact significant change in states, including looking at new models for identifying, hiring and training talent. Traditional internships, mentorships and training programs remain important, but key to innovation in states will be the virtualization of skill up curriculums that align directly with the state s high-demand jobs. Utah is a leader in economic development, innovation and technology in the U.S. Utah has an opportunity to pave the way for other states to move to a system in which the employer specifies the competencies and skills necessary for the jobs, and the education and training partners are able to provide a curriculum to assure the learner/worker has those skills. It sounds easy, but change is required change that both embraces and subsequently implements a tangible strategy for recognizing, articulating and mapping the skills needed to available jobs. Imagine a system in which Utah s citizens are recognized for their skills, no matter where they come from (the armed services, prior experience, formal education, online training). Imagine a system that creates an equal playing field for all to show their skills, attain skills and further their education. Finally, imagine building this system based on region-specific, real-time labor data that maps high-demand jobs and the skills required with the existing skills of the population, and then bridges supply and demand with customized training resources and employment pathways. 7

8 Skills to Jobs is the future. Utah is the leader. 8

9 High-Demand Jobs Drive Economic Prosperity and Promote Innovation Recommendation: Utah should link education and training with demand-driven and marketrelevant skills. The Origin of the Data The data in this report comes from multiple sources. Job-posting information comes from Burning Glass Technologies, Inc. Salary and employment numbers come from the Bureau of Labor Statistics. ACT WorkKeys scores for each occupation come from the ACT Occupational Database. All of these are tied together using U.S. Department of Labor Occupational Information Network (O*NET) codes, which define jobs, job categories and job names. Burning Glass is a Boston-based labor market information company founded in Burning Glass aggregates job postings from approximately 15,000 Internet job boards (as well as company websites) and codes and categorizes those openings and their requirements to facilitate interpretation and analysis. Burning Glass lists specific skills and certifications required for the job as mentioned in the advertisement. The excessively professional definition of STEM jobs has led to missed opportunities to identify and support valuable training and career development. The Hidden STEM Economy, Brookings Report, June This information allows one to distinguish skill levels between jobs within the same occupation. For example, one computer occupation may require fluency with Microsoft Windows, while another requires fluency in JavaScript or another programming language. To identify which jobs are STEM jobs, we have used the Brookings definition of STEM jobs. As described in Still Searching: Job Vacancies and STEM Skills by Jonathan Rothwell, Brookings quantified STEM knowledge by understanding the level of STEM skills needed to do a job as identified by the workers in that job. O*NET provides knowledge scores in various domains for every occupation in the economy. Occupations with extraordinarily high levels of knowledge in one or more STEM domains (science, computers, engineering or math) are classified as STEM occupations. We have used the information in O*NET to further divide the list into jobs that require a high degree of STEM skills and those that require some degree of STEM skills. 9

10 STEM High-Demand Jobs The following is an analysis of top (high-demand) STEM jobs in the Salt Lake City, Provo-Orem and Ogden-Clearfield Metropolitan Statistical Areas (MSAs). These listings include the O*NET job title and the number of jobs advertised between January and December Salt Lake City Area The following are the top STEM jobs in the Salt Lake City area MSA. The high-demand jobs fall into three overall categories: Information Technology (Developers, Analysts, Administrators, User Support Specialists, Quality Assurance) Health Care (Nurses, Managers, Nursing Assistants, Therapists, Technicians) Business/Finance (Accountants/Auditors, Financial Analysts/Advisors, Regulatory Affairs) 10

11 Provo-Orem Area The following are the top STEM jobs in the Provo-Orem Area. The high-demand jobs fall into three overall categories: Information Technology (Developers, Analysts, Administrators, User Support Specialists, Quality Assurance) Health Care (Nurses, Managers, Nursing Assistants, Therapists, Technicians) Business/Finance (Accountants/Auditors, Financial Analysts/Advisors, Regulatory Affairs) 11

12 Ogden-Clearfield Area The following are the top STEM jobs in the Ogden-Clearfield Area. The high-demand jobs fall into the following categories: Health Care (Nurses, Managers, Nursing Assistants, Therapists, Technicians) Information Technology (Developers, Analysts, Administrators, User Support Specialists, Quality Assurance) Business/Finance (Accountants/Auditors, Financial Analysts/Advisors, Regulatory Affairs) Engineering (Electrical and Mechanical Engineers are in the following list, but other types of Engineers also have a significant number of job postings: Industrial (79 postings), Civil (43 postings), Biochemical (40 postings), Electronics (34 postings), Chemical (33 postings) and Aerospace (23 postings) First Line Supervision Production and Operating Workers (Manufacturing) Logistics 12

13 Opportunities & Recommendations The inability of businesses in these 3 MSAs to fill the demand across these main industries has a significant negative impact on Utah s job market and economy. It also puts Utah at a risk of losing good talent due to a mismatch in labels. Obtaining a deeper understanding of the needs within these industries and methods for meeting these needs presents challenges, but also opportunities. These industries are experiencing talent shortages in many locations across the country. Utah s ability to create a pipeline of identifiable and skilled talent presents the opportunity for additional growth in these industries. To have a better understanding of the challenges and opportunities, the next phase would include gathering information beyond number of job postings, specifically from the demand side and other experts in Utah such as: The long-term outlook for these industries and for specific jobs in Utah Complexity and duration of education and certification requirements for these jobs Salary for entry-level jobs and the ability to create career pathways leading to higher-level jobs within the industry Workforce information such as attrition and retirement of the existing workforce and individuals already or projected to be in the education pipeline for these jobs The following table is a summary of information available for all of the jobs listed as a Top STEM Job in any of the 3 MSAs included. The large amount of data prevented us from including the full, detailed table in the body of this report; however an expanded version of the table can be found in Appendix A and Appendix B attached to this report. 13

14 An analysis of this data shows that: These jobs have good salaries, with all except one having an average wage over $48,000. The entry-level jobs provide a livable wage immediately, and career pathways in the industry provide additional opportunities for salary growth. These competitive wages suggest that salary is not contributing to the perceived skills gap or inability of employers to fill open positions. Each of the job groups has a combined number of jobs that represent a significant part of Utah s economy. There are fewer entry-level Health Care jobs available than there are jobs that require more advanced training, such as a Registered Nurse. A further understanding of how enhanced recruiting and career pathway support can be provided to Utah in the next phase, including several national case studies of competencies throughout the career pathway in Health Care. One study shows Mercy Health Hospitals saw turnover reduced by 32% in its first year using competency-based hiring. They also saved $2M and increased the diversity in its new hires by 22%. 14

15 Information Technology The strength of high-demand jobs (particularly in Salt Lake City and Provo-Orem), the diversity of roles present in the list of Top STEM jobs, and the ability to create strong training and career pathways in the Information Technology industry presents an opportunity for Utah. While a variety of developer/programmer roles are the top need, there is also strong demand for a variety of adjunct technical roles, such as user support specialists and administrators. This provides a variety of entry-level roles and multiple pathways that may or may not require advanced degrees. A focus on skills and competencies increases access to employment that can further lead to training, education and ultimately degree attainment. Because the IT industry has a variety of programming languages, operating systems and technical support roles, it is important to have a more extensive understanding of these needs before designing IT training and career pathways. A deeper look at IT job postings reveals that the following IT skills are in the greatest demand. 15

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19 IT Opportunities & Recommendations An analysis of this data shows that: Programming Languages in the highest demand are: SQL, Java/JavaScript, C#, XML,.Net, C++, and Python Operating System experience in the highest demand is: Linux and Unix Technical roles in the highest demand are: Technical Support, System and Network Configuration, and Software Installation It is recommended that education, training and up-skilling programs be adjusted to target these high-demand skills. It is also recommended in Phase 1 of implementation to determine a baseline of existing skills within the population to further refine training programs. By identifying candidates with the core foundational skills and competencies, these candidates can then be trained and mentored into entry-level IT positions. Businesses hiring and training to these identified skills have seen significant and measurable impact on reduced turnover, time to full productivity and increased retention. In addition, viable candidates are often overlooked with traditional hiring methods. Innovate+Educate s work in New Mexico identified a hidden candidate pool matched close to 50% of individuals with skills equal to or greater than the requirements for an IT technician position but were invisible to the employer for lack of degree or direct experience. The below chart is the data analysis that supports this finding. 19

20 As one can see from the above chart, an analysis of 9,910 job seekers in the Albuquerque region tested under I+E s auspices shows a large amount of invisible talent with the competencies/skills of a four year degreed candidate and with the math competencies matched to an IT technician position at a large fortune 500 company. High-Demand Jobs in Additional Sectors While there are significant STEM opportunities, we also wanted to note in this report the non-stem high-demand jobs. A review of this information in the charts following shows that less than half of the highest-demand jobs are in STEM fields, which leaves a large number that are still important to the Utah economy. In addition, it identifies an additional, significant opportunity to meet job demand in the Retail industry with jobs including Sales Representatives, Customer Service Representatives, Salespersons, and Supervisors/Managers. These listings include the O*NET job title and the number of jobs advertised between January and December Note that included in the high-demand jobs are fields that are non-stem fields. We believe that Utah should consider not only a STEM jobs approach but add other highdemand jobs to the work they consider in the future to assure a vibrant economy supporting the employers across the State that have made Utah their place of business. 20

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24 Skills to Jobs Framework Outline Innovate+Educate s Skills to Jobs framework focuses on meeting the unfilled demand of employers by helping them identify, define and hire based on fundamental employability competencies. Our framework combines research, technology and on-the-ground implementation at the regional level to: 1. identify in-demand jobs using real-time labor data, 2. map employer competency needs, 3. illuminate existing sources of local talent (not always apparent through traditional hiring methods such as degree or resume) and, 4. outline existing (or lacking) training assets Steps #1 and #2 have been presented in this initial report. Steps #3 and #4 would be included in Phase 1 of implementation. Once we have created a competency landscape within a region, we work with local partners to build tangible pathways to employment using assessments, training, enabling technology solutions and demand-driven communication strategies. Regional partners generally include (but are not limited to): Local Government Educational Institutions (high schools, community colleges and 4-year colleges) Department of Workforce Foundations Chambers of Commerce Social Impact Organizations (e.g., Goodwill) Local Business & Industry Champions (often sector-specific, e.g. IT) At the most basic level, the goal of the Skills to Jobs competency-based framework is to create a common language between supply and demand. In this transparent system, employers can search and hire based on identified skills and competencies, and job seekers can easily demonstrate or train up to the skills and competencies employers need. For Utah, we recommend customizing elements of the Skills to Jobs framework according to the results of this report and suggest the following for Phase 1 of implementation: Conduct additional research to map existing sources of local talent and their top skills (or identify key gaps). Cross reference this with degree holders (both 2 and 4-year degrees) mapping what the top degrees are in comparison to the top jobs in the 3 MSAs 24

25 Work with regional partners, education institutions, community-based organizations and training programs to identify existing training assets that provide the most direct pathway to open jobs within the MSA Map the employer-driven assessments used to assess qualified candidates with a focus on entry and mid-skill positions Build on the U.S. Department of Labor s competency framework for the highdemand sectors including employer recognized pathways that will be recognized for advancement in specific high-demand fields. Connect to other foundations that might have interest in funding the work into future phases for scaling nationally 25

26 About Innovate+Educate Innovate+Educate is a national 501c3 nonprofit recognized as a leader in building new pathways to employment in high demand fields. Located in Santa Fe, New Mexico, Innovate+Educate is led by a Board of Directors from top industry across 35 states. We implement research-based, demand-led strategies that will lead to the national adoption of competency-based hiring and training by employers. We accomplish this through our think and do model of 1) Research, 2) Implementation and 3) Movement Building. We believe a natural outcome of a demand driven approach will be increased awareness of and access to career-building skills for individuals, ultimately transferable across sectors. Our vision is to open multiple pathways to learning and employment that results in economic success for all. Why Innovate+Educate Innovate+Educate has developed and is currently implementing a Skills to Jobs framework that builds new pathways from education to employment within an industry sector and/or regional location. Many leading organizations agree on the critical need for on-the-ground solutions but Innovate+Educate is one of the few to have created a research-based, demanddriven framework that can be adopted by cities, workforce boards, industries and regions. While our vision is national in scale, we believe that a shift to a competency-based system must occur at the local level and be championed by local leadership. We serve as the integrator, customizing the Skills to Jobs framework to meet local needs and collaborating with key stakeholders throughout implementation. 26

27 Appendix A Utah Jobs Data Appendix Spreadsheet Worksheet: Top Jobs Salt Lake City, Provo, Ogden The following information is available in the columns within these 3 worksheets: Location: MSA for the data Bureau of Labor Statistics (BLS) 6d SOC: The 6 digit Standard Occupational Classification (SOC) code that represents an occupation BLS or O*NET Job Title: The occupation title that corresponds to the SOC Code MSA Total Jobs 2013: The number of people employed in an occupation in the MSA as of the latest BLS dataset (2013) BG Job Openings 2014: The number of advertised job openings over the past 12 months, from Burning Glass Average Wages 2013: For the occupation, in the MSA in 2013 (BLS data) Median Wages 2013: For the occupation, in the MSA in 2013 (BLS data) ACT WorkKeys scores for each occupation, imported from the ACT Occupational Database. There are 7 tests represented in 7 columns in the worksheet: Applied Mathematics (Appl Math), Reading for Information (Read for Info), Locating Information (Locate Info), Applied Technology (Appl Tech), Business Writing (Bus. Writing), Listening for Understanding, and Workplace Observation. Valid options are numbers ranging from 1 to 7, with 1 being of low complexity and 7 being of high complexity High STEM? and Super STEM?: Whether the occupation requires a high amount of knowledge in any of the following: science, computers, engineering, or math. 1=yes it does, 0= no it doesn t. Anything with a 1 in any of these four areas was considered by the Brookings Institute to be a High Stem job. Any occupation having a 1 in more than one area was considered by Brookings to be a Super STEM job and is identified with a 1 in the Super STEM jobs column Note: The method the Brookings Institute used to determine the occupations that are above-average in STEM is through a review of O Net surveys of required knowledge in these areas. Brookings calculated an average value for all jobs, in each STEM area. If a particular occupation scored at least 1.5 points (on the original Likert scale of 7) above that average, then it was considered to require a high amount of STEM knowledge/skill in that area. Education Level Expected: Level of education expected to be obtained to fulfill the job requirements, from BLS Length of On the Job Training: Amount of time expected to be spent on on-the-job training related to the job, from BLS Length of Experience Expected: Amount of time expected to be spent in the occupation or a similar occupation to fulfill the job requirements, from BLS 27

28 Worksheet: Top Employers Salt Lake City, Provo, Ogden These three worksheets contain the information about the employers that are posting jobs in the MSA. This data comes from Burning Glass. It includes the name of the employer and the total number of jobs they posted during Please note that this is a posting for all jobs, STEM and non-stem. Appendix B The following charts contain information about the companies/organizations that are posting the highest number of jobs within an MSA. The first chart within an MSA is the greatest number of postings for all jobs. The second chart within an MSA is the greatest number of postings for IT jobs. Please note that we have not contacted the companies/organizations listed in the report to get their permission to publish their names. Therefore, we recommend that this information not be distributed beyond the recipients of the original . 28

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35 Innovate+Educate PO Box 9919 Santa Fe, NM