Labor Market Information for Workforce Development

1. Labor Market Information for Workforce Development

2. Session Goals • Introduce you to Labor Market Information and how it can help you in your job • Demonstrate a variety of LMI resources • Allow you to familiarize yourself with LMI tools

3. What is Labor Market Information (LMI)? • Data that describe and predict the relationship between labor supply and demand • LMI provides data on a variety of subjects: • Population and labor force trends • Industry and occupational employment trends and projections • Wage and benefit information • Career information relating to skills and education • Data are often available at different geographic levels • e.g., State, county, metro area, workforce development region, etc.

4. Who uses LMI?

5. How can LMI help me as a Workforce Development professional? • Better understand the workers in my region, their availability and their capabilities • Identify job opportunities, and match workers to those job opportunities • Determine education and training resources and needs • Analyze the economic trends affecting my workforce • Enhance grant proposals • Prioritize strategic goals

6. Our Agenda for the day • Who is my region’s workforce? • Population and labor force data • What do my workers do? • Occupational data • What can my workers do? • Education and skills-based data • Where are my region’s jobs? • Industry data • Pulling it all together

7. Who is my region’s workforce?

8. In this section, we will: • Introduce you to several sources of demographic data • US Census Bureau • Alabama State Data Center • Identify sources of key labor force data available through Alabama LMI • Labor force data • Unemployment data

9. Common questions • Is my region growing or declining and how will this affect my economy? • Is my population aging? • Will I have enough workers to meet my workforce needs? • How many people are looking for work or are available to work?

10. The Feds • Decennial Census • www.2010.census.gov • Population Estimates & Projections • Annual Estimates • www.census.gov/popest/estimates.html • American Community Survey • Annual Estimates • www.census.gov/acs/www/

11. US Census Bureau Resources • Getting Census Data for your community • Interactive maps for the 2010 Census • http://2010.census.gov/2010census/popmap/ • Alabama Quickfacts • http://quickfacts.census.gov/qfd/states/01000.html • http://quickfacts.census.gov/qfd/states/01000lk.html

12. Population Estimates Program (Annually) • Annual estimate of resident population • Reference date is July 1 each year • Characteristics Included: • Age • Sex • Race • Hispanic origin • www.census.gov/popest/estimates.html

13. American Community Survey (Annually) • Essentially the same questions as the old Census long form • 21 questions about housing unit • 48 questions about each person • Conducted throughout the year • 2.9 million addresses/about 4.5 million persons • Roughly 1.5% of the population each year • Collected via mail, phone, & in-person • www.census.gov/acs/www

14. American Community Survey (Annually) ACS Data grouped in 4 Types of Characteristics • Demographic: sex, age, race Hispanic origin, etc. • Social: Educational attainment, marital status, citizenship, language, etc. • Economic: Employment, occupation, industry, commute, household income, poverty, etc. • Housing: Type of unit, own/rent, age of structure, housing value, etc.

15. 2010 ACS Data Releases

16. The Alabama State Data Center • The Alabama State Data Center is staffed through UA’s Center for Business and Economic Research • Source of technical assistance • Provide help with census, especially small area estimates • http://cber.cba.ua.edu/asdc

17. Population Exercise • Using the sources we just demonstrated, find the following information for your county • What was your county’s population in 2000 and 2010? • How many people in your county were aged 65 and older?What percent of your population was aged 65+? • What percent of your county’s population (aged 25+) have at least a Bachelors Degree? How does this compare to Alabama overall?

18. How big is my labor force? • The labor force includes: • People aged 16 and older who are either in the labor force or actively seeking work • The labor force does not include: • People in the armed forces, retirees, stay-at-home parents, prisoners, discouraged workers, mentally ill, etc.

19. How big is my labor force? • The labor force participation rate is the number of people aged 16 and above participating in the labor force • Around 64 percent for the US; 60 percent for Alabama • Data based on Current Population Survey (CPS) • The CPS is a joint program of the US Bureau of Labor Statistics and the US Census Bureau • http://www.bls.gov/cps/

20. Who is considered employed? • Employed persons are those who, during the week of the 12th each month: • Worked at least one hour for pay or profit, or • Were self-employed, or • Worked at least 15 hours without pay on a family farm or business • Had jobs but were temporarily absent

21. Who is considered unemployed? • The unemployed are persons who, during the reference week of the 12th each month: • Were not employed, • Were available for work during the week, and • Actively looked for work within the last 4 weeks • Also included as unemployed are persons who were waiting to be called back to a job from which they had been laid off • Note: CPS does not ask about or use unemployment insurance data.

22. Getting labor force and unemployment data for your county/region • The unemployment rate is the percent of people without jobs in the labor force • Provides an indication of the health of your economy • Offers an estimate of the number of people actively seeking work • Unemployment data available through Alabama LMI and US BLS Local Area Unemployment Statistics (LAUS) program. • LAUS is the only official statistic based on an estimating model, and not a census or survey • http://www2.dir.state.al.us/LAUS/default.aspx • http://www.bls.gov/lau/

23. Unemployment data available through Alabama LMI

24. Unemployment in the US, AL and Huntsville MSA Source: US BLS LAUS

25. Unemployment Exercise • Using the Alabama LMI website: • What was your county’s unemployment rate in March 2012? • How many people were considered unemployed? • Using the BLS website: • What was your county’s highest unemployment rate over the past 5 years? • Hint: use http://www.bls.gov/lau/

26. Questions?

27. What do my workers do?

28. In this section, we will: • Introduce you to the Standard Occupational Classification System (SOC). • Show you how to access data on occupational employment and wage and projected future employment. • Occupational Employment Statistics (OES) • Occupational Projections

29. Common questions • What types of occupations/jobs are in my region and what do those jobs pay? • What education and training is required for those occupations/jobs? • What types of occupations are projected to be in demand in my region in the future? • What area educational institutions could help support my region’s current and future workforce demands?

30. Workers’ Occupations • The Standard Occupational Classification (SOC) is a system designed to: • Classify all occupations in the economy, including private, public, and military occupations • Provide a means to compare occupational data across government agencies • Revised periodically: • 2010 revision • Net new job count is 19; 2 of them “green” • www.bls.gov/soc/soc_structure_2010.pdf • Contains information on 840 detailed occupations

31. Standard Occupational Classification (SOC) Structure Broad categories lead to unique 6-digit codes for each occupation: 22 Major groups ; divided into... 49-0000 Installation, Maintenance, and Repair 98 Minor groups; divided into... 49-9000 Other Installation, Maintenance, and Repair 450 Broad occupations; divided into... 49-9080 Wind Turbine Service Technicians 800+ Detailed occupations 49-9081 Wind Turbine Service Technicians

32. Occupational Employment and Wage Estimates Occupational Employment Statistics (OES) • OES collects detailed occupational and wage information by industry and area • Semi-annual establishment survey • Primarily a mail survey of employers • All 50 states • Data are published annually

33. OES Survey Sample • 1.2 million establishments • QCEW is the sampling frame • Includes establishments in • Nonfarm industries • Agricultural services • Federal, State, and Local governments • 3-year collection cycle • The larger an establishment, the more likely it will be included in the 3 year OES sample • 400,000 surveyed annually in two panels • May and November

34. What Estimates Are Included? • Occupational Employment • Occupational Wages (Hourly and/or Annual) • “Mean” – Average wage • “Median” - The point at which 50% of the employment was below this wage and 50% was above • “Entry” – The average of the lowest third of reported wages for the occupation • “Experience” – The average of the upper two-thirds of reported wages for the occupation *** BLS also produces 10th, 25th, 75th & 90th wage rate percentile estimates

35. Sample OES Data for Alabama The average wage of the upper two-thirds The average wage The average wage of the lower two-thirds

36. Geography Statewide Metros – 11 MSAs Balance of State Areas Counties not in a MSA Industries Cross-industry 2-digit NAICS www2.dir.state.al.us/OES/Wage/default.aspx *** Wage data is aged to current year using the latest quarterly Employment Cost Index (ECI) factors Alabama OES Estimates

37. Geography and Industries of National OES Estimates • Geography • Nationwide • State • MSA • www.bls.gov/oes/home.htm • Cross-industry Example of Cross Industry: All Machinists (51-4041) www.bls.gov/oes/current/oes514041.htm • By 3-, 4- and 5-digit NAICS 4-digit NAICS Example: Machinists working in the Motor Vehicle Parts Manufacturing Industry www.bls.gov/oes/current/naics4_336300.htm

38. Demonstration of Alabama’s OES Data Website • Cross-Industry OES Estimates • www2.dir.state.al.us/OES/Wage/wagesbygrouparea.aspx • Occupational Wages by Industry Sector • www2.dir.state.al.us/OES/Wage/wagesbyindustrysector1.aspx

39. OES Exercise • On the LMI website, look up what occupation in your region (Balance of State or MSA) for the manufacturing sector had the highest estimated employment. • What was its SOC Code? • What was its Mean Hourly and Annual Wage? • On the BLS website, look up that occupation/SOC Code. • How does its Mean Hourly and Annual Wage compare to the region? • What industries have the highest concentration of employment in this occupation?

40. Occupational Projections • Occupational Projections released every two years • BLS develops national projections • Cross-industry and by industry • 2010-20 most current release • www.bls.gov/emp/ • States develop state projections • Cross-industry • 2008-18 most current release • 2010-20 projects should be out in July • www2.dir.state.al.us/Projections/default.aspx

41. Occupational Projection Estimates • Employment – Base year & 10 years forward • Average Annual Growth – annual % change in employment • Average Annual Job Openings • Total Openings - Numeric change in employment • Growth – Newly created jobs • Replacement – Number of jobs that will arise due to workers who change occupations, retire, etc. **Employment may not be sufficient in an occupation to allow the development of projections or the data may be confidential

42. Example of Occupational Projections Openings projected due to workers leaving the occupation Openings due to newly created jobs

43. Demonstration of Alabama’s Projections Data Website • Occupational Projections • www2.dir.state.al.us/Projections/Occupational/Proj2018/Statewide/Summary.aspx • Industry Projections • www2.dir.state.al.us/Projections/default.aspx

44. Education and Training Required for Occupations BLS assigns three categories of information to each detailed occupation: • Typical education needed for entry • Commonly required work experience in a related occupation • Typical on-the-job training needed to obtain competency in the occupation *** This classification system is new with the 2010-20 projections

45. Less Than High School janitors and cleaners or cashiers High School Diploma or Equivalent food service manager or pharmacy technicians Some College, No Degree transportation inspectors or computer support specialists Postsecondary Non-Degree Award (certificate or other award) nursing aides, emergency medical technicians (EMTs) and paramedics or hairstylists Bachelor’s Degree dietitian or civil engineers Associate’s Degree mechanical drafters, respiratory therapists or dental hygienists Master’s Degree physician assistants or educational, vocational, and school counselors Doctoral or Professional degree Lawyers, physicians and surgeons or dentists Typical Education Needed for Entry

46. Commonly Required Work Experience • No experience • Nuclear engineer or dishwasher • Less than 1 year of experience • Meeting, convention and event planners or restaurant cooks • 1 to 5 years of experience • Human resources managers or locomotive engineers • More than 5 years of experience • Computer and information systems managers or financial managers

47. None Geographers or pharmacists Short-Term OTJ Floral designers or sewing machine operators Moderate-Term OTJ School bus drivers or printing press operators Long-Term OTJ Millwrights or tool and die makers Apprenticeships Electricians or real estate appraisers Internship/residency Landscape architects or orthodontist Typical On-The-Job Training Needed to Attain Competency

48. Occupations Projected With the Fastest Growth

49. Projections Exercise Using the Employment Projections data on the BLS website, look up the occupation you had identified in the previous exercise and answer the following: • What is the projected employment change from 2010 to 2020? • What is the projected percentage change from 2010-2020? • What is the typical entry-level education required for this occupation? • What work experience in a related occupation is required? • What is the typical on-the-job training is required? http://www.bls.gov/emp/

50. Questions?