Regional Labor Market Report
Southern Alleghenies Tech Prep Consortium
May 6, 2010
Presentation Topics
• Regional labor market environment
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Population and labor force trends
Industry composition
Unemployment trends
Wage structure
• Educational Attainment
• Occupational analysis of Tech Prep Cluster
• Workforce Development Initiatives
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Industry Clusters,
High Priority Occupations
Industry Partnerships
Business and Education Consortia
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
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*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.
Projected Population Change by County
2000 – 2030
(Source: Pennsylvania Preliminary Population Projections
Penn State Data Center)
• GAINERS:
• County Volume and % Change
• Bedford
2063
• Huntingdon 2112
• Fulton
3245
4.1%
4.6%
22.8%
• LOSERS:
• County Volume and % Change
• Blair
21,520 16.7%
• Cambria 28,115 18.4%
Somerset 3502 4.4%
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
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
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
Nearly two-thirds of All Employers
Employ 10 or Fewer Workers
Employers by Size
1000+
500999
250499
100249
50-99
20-49
10-19
5-9
Under
5
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Changing Industry Composition
Number of jobs in Goods vs. Service
Producing Industries
29,100
Goods Producing Industries
Service Producing Industries
150,600
Leading Industries Dominated by Service Producers
(List determined by number of jobs)
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Education and Health Services
Trade, Transportation, and Utilities
Government
Professional and Business Services
Manufacturing
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
Comparison of Jobless Rates
Annual Average 2000 - 2009
10
9
8
7
6
PA.
5
U.S.
SA Region
4
3
2
1
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Pennsylvania
Unemployment Rate by County
2008 Annual Average
Erie
5.7
Crawford
5.8
Mercer
7.0
Lawrence
6.3
McKean
6.3
Warren
5.4
Forest
7.6
Venango
5.8
Clarion
6.3
Butler
4.7
Beaver
5.6
Elk
6.1
Jefferson
5.6
Tioga
6.2
Potter
7.4
Cameron
9.2
Clinton
6.3
Clearfield
6.8
Armstrong
6.0
Indiana
5.3
Cambria
6.2
Allegheny
4.9
Washington
5.3
Greene
5.9
Blair
5.3
Westmoreland
5.3
Fayette
6.6
Huntingdon
6.7
Somerset
6.5
Bedford
7.1
Fulton
8.0
Wyoming
6.1
Sullivan
5.8
Lycoming
6.0
Union
6.3
Centre
4.3
Susquehanna
5.6
Bradford
5.4
Columbia
Montour 5.9
4.8
Franklin
4.5
Adams
4.5
York
4.8
Lackawanna
5.9
Luzerne
6.3
Snyder Northumberland
6.7
6.2
Mifflin
Schuylkill
Juniata
6.7
6.3
5.4
Dauphin
4.7
Perry
Lebanon
5.3
4.2
Cumberland
4.3
Wayne
5.3
Lancaster
4.3
Carbon
6.8
Pike
6.8
Monroe
6.3
Northampton
5.6
Lehigh
5.7
Bucks
Berks
4.8
5.4
Montgomery
4.4
Chester
4.0 Delaware Philadelphia
7.2
5.0
Unemployment Rates
4.0 - 5.3
Source: Local Area Unemployment Statistics, 2008 Benchmark
5.4 - 5.9
6.0 - 6.3
6.4 - 9.2
Center for Workforce Information & Analysis
October 29, 2009
Area Wage Information
• Average wage for all industries
– Bedford County - $30,167
– Blair County – $32,986
– Cambria County - $32,464
Huntingdon County - $31,522
Fulton County – $32,448
Somerset County - $31,791
• Factors that affect local area wage rates
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Labor supply vs. demand
Occupation
Industry composition
Geographic location
Size
Individual characteristics
• Tenure
• Employees knowledge and skills
• Performance
Highest Paying Industry Sectors and Major Occupational Groups
Southern Allegheny Region
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Highest paying industry sectors
Utilities
Management of Companies and enterprises
Mining
Federal Government
Professional and Technical Services
Manufacturing
$69,014
$59,708
$59,040
$45,800
$39,710
$39,309
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Highest paying major occupational groups
Management Occupations
Architecture and Engineering Occupations
Legal Occupations
Computer and Mathematical Occupations
Life, Physical, and Social Science Occupations
$70,913
$55,533
$55,280
$51,936
$54,028
Pennsylvania
Average Weekly Wage by County
2008 Annual Average
Erie
$692
Crawford
$623
Mercer
$644
McKean
$647
Warren
$646
Venango
$634
Forest
$643
Clarion
$612
Elk
$636
Jefferson
$601
Tioga
$578
Potter
$639
Cameron
$570
Clinton
$597
Lycoming
$641
Bradford
$669
Sullivan
$495
Susquehanna
$508
Wyoming
$726
Wayne
$605
Lackawanna
$666
Pike
$560
Columbia Luzerne
Montour
$671
$634
$955
Monroe
Union
$704
Carbon
$692
Northumberland
Armstrong
$568
Snyder
$631
$679
Schuylkill
Northampton
Beaver
Indiana
Mifflin Juniata $578
Lehigh $766
$641
$709
$704
$612
$862
$566
Dauphin
Cambria
Blair
Allegheny
Bucks
Berks
$840
Perry
$624
$634
$928
Lebanon
$855
$783
Westmoreland
$528
$652
Huntingdon
$716
Washington
Montgomery
$607
Cumberland
$763
$1,095
Lancaster
$794
Bedford
Chester
Somerset
$733
Franklin
Fulton
York
Fayette
$580
$1,107
Philadelphia
$611
Adams
Greene
$674
$703
$757
$592
$1,043
$642
$853
Delaware
$919
Lawrence
$663
Butler
$756
Clearfield
$610
Centre
$732
Average Weekly Wage
$495 - $611
$612 - $647
Source: Quarterly Census of Employment and Wages, All Ownership
$648 - $733
$734 - $1,107
Center for Workforce Information & Analysis
October 29, 2009
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
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?
Unskilled jobs are disappearing and demand
for higher skills is rising
100%
80%
16
10
60%
40%
19
40
23
47
73
20%
40
30
0%
1950
1994
Current
Source: U.S. Bureau of Census and Pennsylvania Department of Labor and Industry, Center for
Workforce Information and Analysis (Pennsylvania statewide)
Professional
Skilled
Unskilled
Do too few Area workers have the education to keep
up with rapid technological change?
Educational Attainment for the Southern Allegheny Region
50%
49%
45%
40%
35%
30%
25%
20%
15%
10%
14%
13%
8%
5%
10%
6%
0%
Les s than a
High School
diploma
High School
Diploma or
GED
Some College,
No Degree
As s ociate's
Degree
Source: American Fact finder
Bachelor's
Degree
Pos t-Graduate
Degree
Educational Attainment
(18 to 24 years)
45
40
35
30
25
U.S.
SA Region
20
Pennsylvania
15
10
5
0
Less than high school
High school graduate
Some college or associate
degree
Bachelor degree
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
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.
LMI Resources for Occupational Analysis
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Center for Workforce Information and Analysis*
– workforceinfo@state.pa.us
– Products include:
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Long term Industry and Occupational Projections
Career Guide
Occupational Wages
Career Videos
Pennsylvania Occupational Outlook Handbook
U.S. Bureau of Labor Statistics*
– www.bls.gov
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Occupational Outlook Handbook
Pa Department of Labor and Industry*
– www.paworkforce.state.pa.us
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High Priority Occupations
Targeted Industry Clusters
Green Industries and Occupations
May be added to Tech Prep Links website*
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
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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)
Workforce Development
Initiatives
Industry Partnerships
High Priority Occupations
Pa’s Targeted Industry Clusters
Industry Partnerships
• Industry partnerships can:
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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.
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
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
HPO’s
• HPO’s 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.
Goals: Now and in the Future
( HPO’s continued)
• Annually produce the traditional list of HPO’s 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
Pa’s Targeted Industry Clusters
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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.
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
Questions/ Comments