1. Presented by: Bob Vinson LMI Works April, 2013 Understanding The Labor Market: What’s Happening in Massachusetts and Berkshire County 1

2. Today’s Topics Reviewing Popular Labor Force Measures and Misconceptions Reviewing State and Local Labor Market Developments Reviewing Structural Factors: How Different are the Berkshires? STEM: what is the Impact on the Berkshires 2

3. Labor Force Measures What do they really tell us? Are they misunderstood? What are the common misperceptions? Why does it matter? 3

4. The Unemployment Rate Myth: the rate only includes people who are collecting unemployment Reality: the rate is based on a monthly survey of 60,000 households 4

5. How Is It Measured? Three mutually exclusive groups: Employed Unemployed Not In the labor force 5

6. What Does It Measure? Measures unutilized labor not underutilized labor Does not measure income or job quality UR= U/LF LF= E/E+U 6

7. Employed Worked at least 1 hour during survey week Worked 15 hours or more unpaid in family business Did not work during survey week due to vacation, illness, industry dispute, weather Excludes, military, volunteers, under 16 Multiple job holders—count once 7

8. Unemployed Not worked during the survey week Actively engaged in job search- attend job fairs, contact employment and career centers,send out resumes- reading news adds alone does not count Exempt from search if expecting recall Must be immediately available to take job 8

9. Out of the Labor Force Those not employed or unemployed Reasons not in the labor force:  Child Care /Family Responsibilities  School  Illness/Disability  Discouraged  Retired 9

10. Who’s Unemployed? Another perspective-- Categories  New Entrants  Re-Entrants  Job Leavers  Job Losers Who among these 4 groups are collecting Unemployment Insurance? UI Claimants--about one half the unemployed 10

11. Employment vs Jobs What’s the difference? Employment: Where people live Place of Residence--includes self employment and contract work People with multiple jobs- count once Measures Economic Well Being of a Community 11

12. Jobs Where people work! Where employers are located Indicates strength of local economy Does not include self employed, 1099’s Does include multiple job holders 12

13. Is This Difference Important? Living in Pittsfield, working in Springfield Counted as employed In Pittsfield Job is counted in Springfield 13

14. Unemployment and Job Vacancies December 2009Feb 2013 Unemployed 15,30012,330 Job Vacancies 2,5003,700 Unemployment/Job Vacancies 6.153.3 December 2007 7,700 4,400 1.75 14

15. State and Local Labor Market Developments 15

16. Recent MA Trends February 2012—February 2013 Job Gains +57,600 (1.8%) Is this noteworthy? YES February 2013 employment level (3,318,500) finally surpassed pre-recession peak (3,304,000) (April 2008) We are still below February 2001 level by 67,000 WHY?  Recession 2007 – 2009: lost 136,000 jobs  Recession 2001 – 2003: lost 207,000 jobs 16

17. Recent MA Trends: Sector Changes February 2012—February 2013 Job Gains +57,600 (1.8%) Health and Social Assistance +4,900 Accommodation and Food +11,500 Professional and Technical +9,500 Retail +4,100 Temp Services- +7,900 17

18. More on Jobs Good Producing sector: Construction: Up 4,500 Manufacturing: Down 2,900 Most manufacturing lob loss occurred between February 2012 and August 2012 Caution on Month-to-Month changes NOTE: in February 1984, Manufacturing had 676,000 jobs 18

19. Massachusetts Labor Force February 2012 – February 2013 Unemployment Rate (Seasonally Adjusted) 6.7 to 6.5 Employed: + 5,200 Unemployed: – 5,400 (226,700) Labor Force: - 200 Total Unemployed February 2012: 232,100 February 2010: 300,000 February 2008 157,000 (UR 4.6) NOTE: U.S. rate has fallen from 8.3 to 7.7 19

20. UI Claimant Information February 2012 – February 2013 Initial Claims: fall 1,450 Continued: fall 5,700 February 2013 Claims Levels Initial: 35,100 Continued: 115,100 February 2009: 166,900 February 2008: 104,900 20

21. Berkshire Unemployment Rates February 2013 February 2012 February 2010 February 2008 Berkshire WIA7.17.69.45.2 Pittsfield NECTA7.37.89.45.1 City of Pittsfield7.67.99.45.1 North Adams NECTA7.98.510.56.1 City of North Adams8.99.411.56.4 Great Barrington LMA6.06.58.34.7 Town of Great Barrington5.76.88.54.9 Massachusetts6.87.39.25.0 21 Rates are seasonally unadjusted

22. Berkshire Unemployed Persons February 2013 February 2012 February 2010 February 2008 Berkshire WIA4,9765,4796,7633,744 Pittsfield NECTA2,7273,0183,6281,945 North Adams NECTA1,3091,4451,8311,060 Great Barrington LMA9721,0641,368780 22

23. Berkshire UI Claimants February 2013 February 2012 February 2010 February 2008 Berkshire WIA Initial Claims572725821634 Continued Claims2,6742,8683,4052,447 23

24. Industry Employment Trends: Berkshire County 2011 3 rd Quarter - 2012 3 rd Quarter Description 2011 3 rd Quarter 2012 3 rd Quarter Absolute Change Percent Change Total, All Industries 61,45461,7092550.4 23 - Construction 2,9722,952-20-0.7 31-33 - Manufacturing 4,5634,703140-3.1 Durable Goods1,8041,888844.7 Non-Durable Goods2,7592,815562.0 22 - Utilities 301328279.0 42 - Wholesale Trade 1,0801,114343.1 44-45 - Retail Trade 8,8538,718-135-1.5 48-49- Transportation and Warehousing9781,009313.0 51 - Information 96696820.1 52 - Finance and Insurance 2,0141,934-80-4.0 54- Professional and Technical Services2,5882,646582.2 56- Administrative and Waste Services2,3072,234-73-3.2 61 - Educational Services 6,411na 62 - Health Care and Social Assistance 11,52711,6341072.0 71 - Arts, Entertainment, and Recreation 2,2842,272-12-0.5 72 - Accommodation and Food Services 7,6017,8672663.5 92 - Public Administration 2,4912,446-45-1.9 24

25. Job Structure of Massachusetts and The Berkshires 25

26. Description Massachusetts 2011Berkshires 2011 Avg. Monthly Employment % % Total, All Industries3,191,604100.0%60,364100.0% 23 - Construction121,5283.8%2,7334.5% 31-33 - Manufacturing254,0188.0%4,6277.7% 44-45 - Retail Trade343,68810.8%8,71014.4% 48-49 - Transportation and Warehousing96,2963.0%1,0371.7% 51 - Information89,8532.8%9961.6% 52 - Finance and Insurance168,2075.3%2,0213.3% 54 - Professional and Technical Services261,2688.2%2,5714.3% 56 - Administrative and Waste Services163,0225.1%2,0923.5% 61 - Educational Services326,19910.2%7,28712.1% 62 - Health Care and Social Assistance531,44816.7%11,48919.0% 71 - Arts, Entertainment and Recreation54,6691.7%2,0003.3% 72 - Accommodation and Food Services266,2948.3%6,74411.2% 81 - Other Services except Public Admin137,2214.3%3,1745.3% 92 - Public Administration133,6124.2%2,5214.2% 26

27. Size Class Distribution: Massachusetts and The Berkshires 27

28. Statewide Distribution of Establishments and Employment by Size Groups March 2012 Number of Employees Size GroupsUnits% Employment % Less than 20 0,1,2,3200,33688.1736,20123.1 20-99 4,521,8779.6881,33127.7 100-249 63,4901.5520,94016.4 250-499 78980.39308,2049.9 500+ 8,95870.26734,68623.1 Totals 227,188100.03,181,362100.0 28

29. Berkshire WIA Distribution of Establishments and Employment by Size Groups, March 2012 Number of Employees Size Groups Units%Employment% Less than 200,1,2,34,33488.617,73230.1 20-994,54729.618,82132.0 100-2496641.38,92915.2 250-4997180.46,34510.8 500+8,950.107,01211.9 Totals4,893100.058,839100.0 29

30. Commuting Patterns 30

31. Number% Total number of persons working in the Berkshires area: 65,694100.0% Total who work in the Berkshires and who lived in: Berkshire WIA 59,38690.4% Franklin/Hampshire WIA 1,0021.5% Hampden WIA 9091.4% Other parts of Massachusetts 5290.8% Other New England States 1,5762.4% New York 2,5573.9% Total Berkshire residents who were employed: 64,058100.0% Employed Berkshire residents who were working in: Berkshire WIA 59,38692.7% Franklin/Hampshire WIA 5240.8% Hampden WIA 8291.3% Other parts of Massachusetts3620.6% Other New England States1,3932.2% New York1,3342.1% Berkshire WIA 31

32. STEM Considerations 32

33. STEM Issues to Ponder Defined as occupations but determined by industry structure Why? Industries are where people work; occupations are what people do. And, STEM occupations are concentrated in a subset of industries 33

34. What does this mean for The Berkshires? Small employment in STEM-related industries Occupations requiring at least a Bachelor’s Degree operate in Regional and National labor markets; not local markets Very limited access to 4 year or graduate STEM programs in Berkshires. Will require partnerships and relationships that go beyond Berkshire What are local STEM needs that do not require a Bachelor’s Degree? 34

35. Selected STEM-Related Industries in Berkshire WIA Average Monthly Employment % Total Employment54,058 54 Professional and Technical Services 2,571 5413 Architectural and Engineering Services 1,40264.6% 5415 Computer Systems Design1888.7% 5416 Management and Technical Consulting1064.9% 5417 Scientific Research and Development 421.9% 5419 Other Professional and Technical Services 1868.6% 5112 Software Publishers 100.5% 5191 Other Information Services 23710.9% Total STEM-Related Industries 2,171100.0% STEM Industry Review 35

36. Average Monthly Employment % Total Employment54,058 Manufacturing 4,627100.0% 322 Paper Manufacturing 70115.2% 326 Plastics and Rubber 63713.8% 323 Printing 62413.5% 325 Chemicals 50010.8% 327 Non-Metallic Minerals 46710.1% 332 Fabricated Metals 4279.2% 333 Machinery Manufacturing 4118.9% 334 Semiconductors and Electronic Components 1262.7% 311 Food Manufacturing 1733.7% 3394 Medical Equipment and Supplies 922.0% Total Selected Manufacturing Industries 4,15889.9% Berkshire Manufacturing: 2011 36

37. ……………and….. That’s All Folks! 37