Presentation on theme: "Trends in the Maine Labor Market"— Presentation transcript:
1 Trends in the Maine Labor Market Historical trends and projections to the year 2018Key trends will accelerate in the future: baby boomers moving into retirement, globalization continues, technology and innovation redefine industries and occuapations. The consequences are far reaching and we must act to ensure continued economic growth and rising living standards.Pronounced demographic shifts and intense economic restructuring are underway. Maine's population is aging and growing slowly. Low birth rates and out-migration of young people are shaping Maine's population dynamics. Today the baby boomers range in age from 43 to 61. Over the next three decades there will be a mass exodus from the labor market into retirement.Maine's economic fortunes will be determined by how successfully we replace retiring workers and meet demands of new workers. At the same time, the nature of work increasingly demands higher levels of literacy, technology competency, and self-management.Maine Department of LaborCenter for Workforce Research & Information
4 Births have declined 40 percent since the height of the baby boom Births - deaths = natural population change.Natural change way downAs baby boomers advance in age deaths will trend upBirths expected to start to trend down again after 2012In about 15 years Maine likely to have natural decrease -- fewer births than deaths.Need in-migration to keep population stable.
5 Net in-migration has become the primary source of population growth Average annual net change in population by sourceMigration trends swing back and forth with workforce condtionsStrong net in-migration in early 2000s has given way to net out-migration last two years
6 The population is aging rapidly Projected population net change by age group, 2008 to 201855 to 74 growth due to boomers advancing ageFewer 35 to boomers vacating age group25-34 growth baby boom echo0-15 growth echo of baby boom echoEach spike in births smaller than previous as families have fewer children
8 Labor force participation peaks around age 50 and declines at an accelerating rate with ageLabor force participation by age groupLF participation is highest among those age 25 to 44. The boomers are aging beyond their peak years of LF attachement.Implications: Many older people would like to remain involved in work or causes, but will only do so if flexible schedules and alternative work arrangements are available to them.
9 Unemployment rates have generally been lower among women than men since the 1980sHigher unemployment among men reflects restructuring of the economy -- manufacturing job losses disproportionately impact men without post-secondary education.
10 Female labor force participation is no longer rising Female labor force participation doubled since 1950, but no longer a source of LF growth.
11 attachment and peaking of the share of working women Labor force growth is slowing due to the combination of baby boomers aging beyond their peak years of labor forceattachment and peaking of the share of working womenLF forecasts currently only extend out to In the years following 2020 it is difficult to see how the LF can continue to grow without significant in-migration.
12 Demographic trends not only impact total workforce growth, but also demand for products and services and jobs related to production of those itemsA growing middle-age and elderly population will keep demand for health and retirement services rising.Demand for financial services will continue to rise as baby boomers increasingly focus on retirement planning.Businesses will continue to pursue productivity gains through automation and more efficient work practices as a response to slower labor supply growth.Geographic boundaries will continue to fall as consumers and businesses increasingly use technology to locate and purchase products and services, communicate, and perform administrative functions.
14 Service-providing industries have increased from just over half to 87 percent of jobs in less than 60 years
15 Service-providing industries have been the engine of job growth for decades...
16 ... That trend is expected to continue through 2018 with more manufacturing job losses andgrowth in health care and other servicesProjected change in jobs 2008 to 2018
17 The outlook by sector is similar to the previous ten year period, though job gains and losses are expected to moderate. Most job growth is expected in education & health care, professional & business services, and leisure & hospitality. Manufacturing job losses are expected to continue.Intensification of global competition & technology innovation will continue to alter the industry composition of employment.Workers displaced from mfg jobs often lack the education or skills required for success in growing industries and occupations.Those workers often live beyond commuting distance to communities that are experiencing job growth.
18 Industry employment trends and technological change influence what occupations or skills are in demand
20 The share of jobs in blue-collar occupations has steadily declined in the last five decadesSame factors shifting industry mix at play with occupations.Job performance requirements are changing rapidly. Computers and other changes require higher levels of knowlege/skill.With more people working in smaller businesses, people need a wider range of skill sets and more self-management. Requires deeper knowledge and more advanced skills even for workers in lower wage jobs.Shifting mix of jobs by occ related to:Differing rates of growth by industry: Occ staffing varies by industry - tellers in banks, carpenters in construction, ...Shifting mix within each industry: rising use of ATMs & online banking sent share of tellers down and IT staff up.
21 The fastest job growth is expected to continue to be in professional/technical and service occupations...Projected change in jobs by occupational group, 2008 to 2018
22 ...at the upper end of the education/training spectrum... Projected change in jobs by usual education or training requirement, 2008 to 2018
23 Also related to managerial and professional job growth, the fastest growth is expected in occupations at theupper end of the earnings spectrumProjected change in jobsby 2008 average wage
24 ...Though there will continue to be more jobs with lower education/training requirements
25 Occupational employment trends will continue to be driven by broad demographic trends in the population, shifts in jobs by industry, and technological change