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Regional Labor Market Report Southern Alleghenies Tech Prep Consortium May 6, 2010.

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Presentation on theme: "Regional Labor Market Report Southern Alleghenies Tech Prep Consortium May 6, 2010."— Presentation transcript:

1 Regional Labor Market Report Southern Alleghenies Tech Prep Consortium May 6, 2010

2 Presentation Topics Regional labor market environment – Population and labor force trends – Industry composition – Unemployment trends – Wage structure Educational Attainment Occupational analysis of Tech Prep Cluster Workforce Development Initiatives – Industry Clusters, – High Priority Occupations – Industry Partnerships – Business and Education Consortia

3 Population Trends Population across the region continues to age Not all counties will decline, but overall loss is projected at 9.70% (2000 – 2030)* Changes not consistent among all age cohorts Older segment projected to continue increasing Will impact current and future labor supply *The Pennsylvania State Data Center at the Pennsylvania State University consulting with a Statewide advisory committee comprised of State agencies, regional planning agencies and academic representatives have produced preliminary State and county population projections for the Commonwealth.

4 Projected Population Change by County 2000 – 2030 (Source: Pennsylvania Preliminary Population Projections Penn State Data Center) GAINERS: County Volume and % Change Bedford 2063 4.1% Huntingdon 2112 4.6% Fulton 3245 22.8% LOSERS: County Volume and % Change Blair 21,520 16.7% Cambria 28,115 18.4% Somerset 3502 4.4%

5 Labor Force Trends Labor force participation is comparatively low across the region Becoming increasingly diverse and more mobile (approx four out of five work in their county of residence) Baby boom generation beginning to retire Number of females on the increase - reflective of changes in marital status, educational attainment, fertility, and rising career aspirations Older members challenged by new technology

6 Labor Force participation (a key workforce development issue) Definition: LFR is the ratio of the number in the labor force compared to the civilian population (16+) Region ranks below the state average Participation rates vary by age group – Low among younger workers – Highest among 25 – 54 age group with strong attachments to the labor market – Older age group comparatively low but on the rise Male/female comparison: – Male participation on the decline – Growth among female participants tapering off

7 Industry Change Regional labor market dominated by small employers Industry composition continues to shift from goods to service producing Industries Changes in goods producers (mfg, mining, construction) paced by manufacturing Service Producing Industries: – Have changed the economic landscape of this region – Continue to struggle with generally held misconceptions – Industry transition is accompanied by rising skills and earnings level – Account for four out of five highest paid industries in the region – Service providers are home to 85% of all employers

8 Nearly two-thirds of All Employers Employ 10 or Fewer Workers

9 Changing Industry Composition Number of jobs in Goods vs. Service Producing Industries

10 Leading Industries Dominated by Service Producers (List determined by number of jobs) Education and Health Services Trade, Transportation, and Utilities Government Professional and Business Services Manufacturing

11 Unemployment Widely recognized as a key indicator of economic performance – but often misinterpreted Count based on place of residence Not a stand alone statistic in analyzing the labor market An average of 8.8% last year, comparable to state and nation Underemployment – not a measured statistic but considered by many to be a key economic issue

12 Comparison of Jobless Rates Annual Average 2000 - 2009


14 Area Wage Information Average wage for all industries – Bedford County - $30,167 Huntingdon County - $31,522 – Blair County – $32,986 Fulton County – $32,448 – Cambria County - $32,464 Somerset County - $31,791 Factors that affect local area wage rates – Labor supply vs. demand – Occupation – Industry composition – Geographic location – Size – Individual characteristics Tenure Employees knowledge and skills Performance

15 Highest Paying Industry Sectors and Major Occupational Groups Southern Allegheny Region Highest paying industry sectors Utilities$69,014 Management of Companies and enterprises$59,708 Mining $59,040 Federal Government $45,800 Professional and Technical Services $39,710 Manufacturing $39,309 Highest paying major occupational groups Management Occupations $70,913 Architecture and Engineering Occupations $55,533 Legal Occupations $55,280 Computer and Mathematical Occupations $51,936 Life, Physical, and Social Science Occupations $54,028


17 Summary Education must continue to be a key partner to ensure future labor force development Collaboration between business and education is essential Future job picture will reflect the rapidly changing economic environment Service industries will continue to dominate

18 Educational Attainment Changing demand for unskilled vs. skilled workers Are workers keeping up with technological change? How does educational attainment locally compare to the state and nation?

19 Unskilled jobs are disappearing and demand for higher skills is rising Source: U.S. Bureau of Census and Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis (Pennsylvania statewide)

20 Do too few Area workers have the education to keep up with rapid technological change? Source: American Fact finder Educational Attainment for the Southern Allegheny Region

21 Educational Attainment (18 to 24 years)

22 Occupational Analysis Step by step procedure utilizing an occupation selected from the construction technology cluster: – Defining the occupation – Selecting your resources – Analysis of selected occupation Projected growth Wages Defined as an HPO and green occupation Nature of the Work Training, Other Qualifications, and Advancement Employment Job Outlook Projections Earnings Wages Related Occupations

23 Construction Technology Cluster Definition 46.5999 Construction Technology A cluster industry/occupational program that provides for a sequence of secondary technical core planned courses in Tech Prep. This program prepares individuals to apply knowledge and skills in the construction technology field. Instruction is provided in the basic skills in a variety of areas associated with building construction such as carpentry, masonry, plumbing, heating, and electrical. Instruction includes, but is not limited to, blue print reading, cost estimating, uses of hand and power tools; cutting, fitting, fastening, and finishing various materials; and applying technical specifications and knowledge concerning the physical properties of materials.

24 LMI Resources for Occupational Analysis Center for Workforce Information and Analysis* – – Products include: Long term Industry and Occupational Projections Career Guide Occupational Wages Career Videos Pennsylvania Occupational Outlook Handbook U.S. Bureau of Labor Statistics* – Occupational Outlook Handbook Pa Department of Labor and Industry* – High Priority Occupations Targeted Industry Clusters Green Industries and Occupations May be added to Tech Prep Links website*

25 Results of Analysis Tech Prep Cluster - Construction Technology Occupational Title: –Carpenter Projected Employment Growth: through 2016: ( 3.9% ) – Projected annual job gains: – Due to growth 8 – Replacement needs 28 Wages – Average hourly wage - $16.41 – Average annual wage - $34,130 – Entry level wage - $21,770 – Experienced - $40,310 On the HPO list? Yes Defined as a green occupation? Yes Additional Information (See handout)

26 Workforce Development Initiatives Industry Partnerships High Priority Occupations Pas Targeted Industry Clusters

27 Industry Partnerships Industry partnerships can: – identify specific training needs and skill gaps – help connect young people to careers – help educational and training institutions – arrange curriculum to meet business demands – address worker recruitment and retention – develop career ladders within companies – highlight best practices and promote communication among companies.

28 Industry Partnerships (continued) More than 6300 businesses in nearly 80 Industry partnerships across Pennsylvania Across the region a number of our counties have individual industry consortiums around manufacturing and healthcare. All of our counties have business/education partnerships. They go by different names ie, BASICS (Businesses and Schools Investing in Cooperative Solutions), or Business & Education Consortium. Southern Alleghenies Advanced Materials and Diversified Manufacturing Industry Partnership – With nearly 80 companies, ranging from 20 to 1500 employees, this partnership is focusing on retraining workers and expanding and enhancing business

29 High Priority Occupations In the past too many workforce education programs were not aligned with actual skills needed Workforce development strategy works to change that by targeting education and training dollars to HPOs HPOs are job categories within selected industry clusters that are in demand by employers, have higher skill needs, and are most likely to provide family sustaining wages.

30 Goals: Now and in the Future ( HPOs continued) Annually produce the traditional list of HPOs for the state and local workforce investment area Formulate a process for identifying and including the new, emerging and evolving occupations to include those directly related to the green economy Continue to assist the educational community as they integrate the HPO process into secondary and post secondary education systems

31 Pas Targeted Industry Clusters Advanced Materials & Manufacturing Agriculture & Food Production Bio Medical Building & Construction Business & Financial Services Education Health Care Information and Communication Services Logistics & Transportation Lumber & Wood Products Each of these clusters consists of a group of industries closely linked by common products markets, labor pools, similar technologies, supply chains, and /or other economic ties.

32 Why develop industry clusters ? Gain a better understanding of local industries while raising awareness of their importance Compare performance of a local or regional industry sector with that of the State and Nation Define relationships among the various industries Develop improved strategies for workforce and economic development planning

33 Questions/ Comments

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