1. NORTH SHORE LABOR MARKET UPDATE JANUARY 2013 Presented by Will Sinatra

2. N ORTH S HORE L ABOR M ARKET U PDATE Total Industrial Employment on the North Shore from Jan 2007 to March 2012 Recession period from 4 th Quarter 2007 to 4 th Quarter 2009 Recovery period from 4 th Quarter 2009 to 4 th Quarter 2011 Source: EOLWD, LAUS, 1/07-3/12

3. N ORTH S HORE L ABOR M ARKET U PDATE The Recession on the North Shore 4 th Quarter 2007- 4 th Quarter 2009 The North Shore 4 th Quarter 2009 Employment is 154,651 5,121 jobs lost during this period 3% decline 4 th Quarter 2009 Employment 4Q 07- 4Q 09 Percent Change Source: EOLWD, ES202, 4thQ07-4thQ09

4. N ORTH S HORE L ABOR M ARKET U PDATE NE employment at 402,017 but lost 15,500 jobs during this period, a 3.7% decline Northeast Region Massachusetts MA employment at 3,009,046 but lost 130,000 jobs during this period, a 4.0% decline Source: Clifford, New England Policy Center

5. N ORTH S HORE L ABOR M ARKET U PDATE Outcome of the Recession 4 th Q2007-4 th Q2009 Areas of Significant Change North ShoreNortheast Massachusetts/ All Regions Gained JobsInformationManagement of CompaniesHealth Care, Education Lost Jobs---Wholesale, Information Manufacturing, Construction, Administrative Support & Waste Services, Financial Services, Professional & Technical Services, Retail Recession Outcomes: Health Care and Education gained employment Manufacturing, Construction, Administrative Support Waste Services, Financial Services, and Real Estate were the hardest hit

6. N ORTH S HORE L ABOR M ARKET U PDATE The Recovery on the North Shore 4 th Quarter 2009 – 4 th Quarter 2011 The North Shore total employment in the 4 th Quarter 2011 was 168,911 recovered 4,267 Jobs during this period 2.6% growth 4 th Q 2011 Employment 4Q 09- 4Q 11 Percent Change Source: EOLWD, ES202, 4thQ09-4thQ11

7. N ORTH S HORE L ABOR M ARKET U PDATE Northeast Recovery 417,486 Employment, 3.6% Growth Massachusetts Recovery 3,234,889 Employment, 2.9% Growth 4 th Quarter 2011 Employment 4 th Q 09-4 th Q 11 Percent Change Source: EOLWD, ES202, 4thQ09-4thQ11

8. N ORTH S HORE L ABOR M ARKET U PDATE Areas of Significant Change North ShoreNortheastMassachusetts/All Regions Gained Jobs Durable Goods Durable Goods, Professional & Technical Services Health Care, Accommodation & Food Services, Administrative Support and Waste Services, Construction Lost Jobs Utilites, Public Administration, Finance, Real Estate Management of Companies, Real Estate Finance, Non-Durable Goods Current State of Recovery Recovery Outcomes: Health Care continues to grow Education’s growth has slowed down Manufacturing is returning, concentrated growth in Durable Goods in the Northeast and North Shore Very slow growth in Construction Tourism pick up throughout Growth in Accommodation & Food Services and Arts, Entertainment, and Recreation. Financial Services employment decline is nearly double the rate on the North Shore compared to the Northeast and Massachusetts Real Estate is weak on the North Shore and Northeast compared to Massachusetts

9. N ORTH S HORE L ABOR M ARKET U PDATE Unemployment Rate for the USA, Massachusetts, and North Shore North Shore Unemployment follows Massachusetts Seasonal Trends Rises in Dec-Jan and April/May-June Falls from Feb-April/May and Sept-Oct Remains steady during the Summer Source: EOLWD, LAUS, 1/07-9/12

10. N ORTH S HORE L ABOR M ARKET U PDATE Unemployment Challenges RegionCensusTotal Labor Force Under 3535 & Over % of Unemployed % of Labor Force % of Unemployed % of Labor Force USA2009-2011 ACS156,456,69452%36%48%64% Massachusetts2009-2011 ACS3,573,91948%35%52%65% Northeast2008-2010 ACS556,27245%32%55%68% North Shore2007-2011 ACS220,03847%32%53%68% The Under 35 population are disportionately represented in the percentage of unemployed throughout the country The Northeast and North Shore Labor Forces are older than Massachusetts and USA Northeast Source: Clifford, New England Policy Center

11. N ORTH S HORE L ABOR M ARKET U PDATE Educational Attainment of the Population Over 18 Years Old EUC= Customer’s with more than 26wks of unemployment Sampling of Extended Unemployment Coverage customers enrolled from May19th to July 31st Source: US Census Bureau, American Community Survey, 2007-2011, 2008-2011

12. N ORTH S HORE L ABOR M ARKET U PDATE What is the education data telling us? The North Shore has a comparable educational attainment level to the Northeast The North Shore & Northeast both have a lower rate of Graduate degrees than Massachusetts but a higher rate of Associates' and Some College Massachusetts, Northeast, and the North Shore all have an educational attainment higher than the USA. The EUC Cohort has an educational attainment lower than all regions Northeast Source: Clifford, New England Policy Center

13. N ORTH S HORE L ABOR M ARKET U PDATE Educational Attainment by Age Groups for EUC, North Shore, & Massachusetts Source: US Census Bureau, American Community Survey, 2007-2011, 2008-2011

14. N ORTH S HORE L ABOR M ARKET U PDATE What is the education data telling us? The population Under 35 has a higher educational attainment than the 35 and Over Cohort when considering the number still in High School and College The North Shore and Northeast have similar educational attainments Both regions are lower than Massachusetts However, the EUC Cohort has a reversal of the educational trends with the 35 and Over having a higher attainment level compared the Under 35 Cohort. Both groups are lower than their regional counterparts

15. N ORTH S HORE L ABOR M ARKET U PDATE Putting it all together The North Shore economy is still recovering from the recession If the current growth rate is maintained we should recover all jobs lost to recession by the end of 2013, but unemployment will still remain higher than prerecession levels due to population growth and individuals returning to the labor force. The unemployed will be at a disadvantage in returning to employment due to their lower level of educational attainment compared to their peers. This is especially true for the Under 35 EUC group Opportunities should exist in Durable Goods manufacturing

16. Sample Durable Goods Manufacturing Jobs in Essex County OccupationEmployerCitySalary Electronic AssemblerRaytheonAndover$40,000 MachinistFlowserveLawrence$42,000 CNC Lathe Set-UpSterling MachineLynn$39,000 QC InspectorJohnson ControlsLynnfield$31,000 Mechanical AssemblerCommunication & Power Industries Beverly$33,000 CNC ProgrammerA.W. Chesterton Company Groveland$58,000 An online search of Wantedanalytics found 298 jobs in manufacturing posted from September 1 st to January 8th North Shore Labor Market Update

17. C ONTACT INFORMATION William Sinatra Planning & Data Analyst North Shore Workforce Investment Board 70 Washington Street, Suite 314 Salem, MA 01970 (978) 741-3805 wsinatra@northshorewib.com