URBAN INSTITUTE http://www.urban.org/ 2100 M Street NW Washington, DC 20037-1264 Labor Market and Demographic Analysis: A National Picture of Short-term Employment Growth by Skill Pamela Loprest & Josh Mitchell Unemployment and Recovery Project May 2012 Unemployment and Recovery Project This w orking paper is part of the Unemployment and Recovery project, an Urban Institute initiative to assess unemployment’ s effect on individuals, families, and communities; gauge government policies’ effectiveness; and recommend policy changes to boost job creation, improve w orkers’ job prospects, and support out -of-w ork Americans. This w ork is funded in part by the Center for Community Change. The authors gratefully acknow ledge the research assistance of Janice Park. Copyright © May 2012 The view s expressed are those of the author and do not necessarily reflect those of the Urban Institute, its trustees, or its funders. Permission is granted for reproduction of this document, w ith attribution to the Urban Institute . Labor Market and Demographic Analysis: A National Picture of Short-Term Employment Growth by Skill Pamela Loprest and Josh Mitchell Executive Summary It is almost three years since the official end of the Great Recession—the worst economic downturn since the Great Depression. Yet there are only limited signs of genuine labor market recovery. Employment remains well below its pre-recession 2007 peak even though employment has grown over the past five quarters at about the same rate as it grew following past recessions. The unemployment rate continues to exceed 8 percent, and many economists, including the Congressional Budget Office, predict it will remain above 8 percent for the next several years. The Federal Reserve recently forecast the unemployment rate at between 6.8 and 7.7 percent at the end of 2014. Despite this dreary national outlook, there is some cause for optimism. Between the fourth quarter of 2010 and fourth quarter of 2011, the US experienced a net total increase of 1.7 million jobs and forecasters project additional increases over the next few years. 1 Exhibit 1 depicts the slow but improving recovery through 2011 following the dramatic fall in employment during the Great Recession, where the economy lost over 8.4 million jobs. Economists project employment to grow from 2012 to 2017 at an average rate of roughly 1.8 percent per year. 1 Current and historical employment and employment by industry numbers in this report are from the Current Employment Statistics (CES) data published by the Bureau of Labor Statistics. Industry projections are from Moody’s Analytics. The CES covers non-farm payroll employment. Excluded groups include the self-employed, domestic, and unpaid workers. See Appendix for further details. A National Picture of Short-Term Employment Growth by Skill Page 1 Exhibit 1. Total Nonfarm Employment (thousands) 150,000 145,000 140,000 135,000 130,000 125,000 120,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: BLS Current Employment Statistics and Moody's Analytics Over the next five years, employment growth is projected to be slightly higher for jobs that require both the lowest and highest levels of education, although job growth is modest to slow across the board. The prospects for low-skill workers in the short-term are best in the leisure and hospitality sector and the professional and business services sector, with additional jobs appearing in construction as that sector continues to recover. A companion portrait of unemployed workers highlights that a disproportionate number of those seeking work are low-skilled. In addition, low-skilled unemployed are more likely to be young, workers of color, or have a health problem that interferes with work than similarly skilled employed or higher-skilled unemployed workers, factors that are likely to make finding work in a slack labor market even more challenging. National Employment Picture: Long, Slow Recovery During the Great Recession, some sectors were hit harder than others, and during the recovery, sectors are regaining employment at different rates. Exhibit 2 shows employment for selected industry sectors since the beginning of the recession. Employment in 2007 is normed to 1.0 across industries allowing for easier comparisons of growth in employment across industries starting from this base year. 2 The solid lines show actual employment and the dotted lines 2 The graphic shows only eight of thirteen industries for ease of viewing (the legend read from left to right lists industries from highest to lowest in 2017). The level of employment varies substantially across all these industries. A National Picture of Short-Term Employment Growth by Skill Page 2 show projections into the future. The construction industry has been hit the hardest, followed by the manufacturing industry. The only sectors with employment increases in 2011 since the beginning of the recession (over 1.0 in the graphic) are health services (private sector), leisure, and hospitality. Projections for future employment growth over the next 5 years show improvements in all sectors, but even with continued growth, construction, manufacturing, wholesale, and retail trade are not projected to regain prior 2007 employment levels by 2017. Exhibit 2. Change in Employment since 2007 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.70 0.60 2007 2008 2009 2010 Health Services 2011 2012 2013 2014 2015 Leisure and Hospitality Professional and Business Services Total Government Financial Activities Wholesale and Retail Trade Manufacturing Construction 2016 2017 Source: BLS Current Employment Statistics and Moody's Analytics To understand what sectoral growth means for job seekers and to put employment recovery rates in context, we examine the present distribution of employment in the economy. Exhibit 3 shows the percent of total non-farm employment by broad industry category in 2011. Despite continuing declines in employment, total government (combined federal, state, and local which includes teachers, firefighters, and police officers) is the largest industry sector, accounting for 16.7 percent of employment. Wholesale and retail trades also remain large, accounting for 15.4 percent of all employment. The next two largest sectors are professional and business The level of employment and net employment change numbers for all thirteen industries from 2007 to 2011 are reported in Appendix Exhibit A.1. A National Picture of Short-Term Employment Growth by Skill Page 3 services (13.3 percent), and health services (12.7 percent). Manufacturing is 8.9 percent of employment and construction is 4.2 percent of employment. 3 Exhibit 3. Distribution of Employment by Industry 2011 Total Government Wholesale and Retail Trade Professional and Business Services Health Services Leisure and Hospitality Manufacturing Financial Activities Construction Other Services Transportation and Utilities Educational Services Information Mining 16.7% 15.4% 13.3% 12.7% 10.2% 8.9% 5.8% 4.2% 4.1% 3.7% 2.5% 2.0% 0.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Source: BLS Current Employment Statistics. Jobs can also be grouped into occupations which reflect job activities and duties. Using a fairly high level of aggregation, occupations may fall within one of twenty-two groups.4 Within industries, the mix of occupations differs. For example, construction occupations are obviously a large part of the construction industry, but there are also management and administrative jobs within that industry.5 Exhibit 4 shows the distribution of national employment in 2011 by occupations. The largest occupation categories in 2011 were office and administrative support (accounting for 17.9 percent of employment) and sales occupations (accounting for 11.9 percent of employment). 3 In our categorization, we include public school education employees (including teachers and higher education instructors) in the education sector. The standard CES categorization includes these workers in the government sector. 4 Occupation data come from the BLS Occupational Employment Statistics. See appendix for further details. 5 Appendix exhibit A.2 shows industry by occupation employment for 2011. A National Picture of Short-Term Employment Growth by Skill Page 4 Exhibit 4. Distribution of Employment by Major Occupation 2011 Office and Administrative Support Sales and Related Food Preparation and Serving Related 7.7% Transportation and Material Moving 7.2% Installation, Maintenance, and Repair 6.1% Business and Financial Operations 5.7% Education, Training, and Library 5.6% Construction and Extraction 5.1% Management 5.1% Personal Care and Service 4.0% Computer and Mathematical 3.9% Building and Grounds Cleaning and… 3.4% Production 3.4% Arts, Design, Entertainment, Sports, and… 2.9% Protective Service 2.4% Healthcare Practitioners and Technical 2.2% Architecture and Engineering 1.8% Community and Social Service 1.0% Healthcare Support 1.0% Legal 0.9% Life, Physical, and Social Science 0.8% Farming, Fishing, and Forestry 0.1% 0.0% 5.0% 10.0% 17.9% 11.9% 15.0% 20.0% Source: BLS Current Employment Statistics & Moody's Analytics Employment and Skill Levels A key dimension for understanding the impact of the slow recovery on different groups of workers is the skill-level requirements of both the jobs that were lost and the jobs that are being created. The recession affected workers of various skill levels differently. Low-skill workers lost a higher percentage of jobs in the recession than higher skilled workers. Employment for those with less than a high-school education fell by more than 10 percent over the course of the recession. 6 Employment losses were lower as skill-level increased – 9.1 percent for high school, 3.9 percent for those with some college, and roughly flat for those with a college degree or more. 6 These numbers are based on the BLS employment situation numbers, table A-4 for December 2007 to December 2009, the low point of employment following the start of the recession. See P. Loprest and A. Nichols (2011) “Less Educated Continue to Lose Jobs in Recovery” The Urban Institute for more information http://www.urban.org/url.cfm?ID=412382. A National Picture of Short-Term Employment Growth by Skill Page 5 The skill requirements associated with newly-created jobs are one indication of the likely demand for workers at different skill levels. We use educational attainment here as a measure of skill level. 7 In national employment data we do not observe the educational level requirements of jobs, but the education level of those who are employed in the jobs. During a recession, some individuals work in jobs requiring a lower level of education than they have. This means the education levels of those holding jobs in the recession is likely a bad proxy for education requirements of the jobs. To get a better measure of the education level requirements of jobs, we use pre-recession information from 2007 on the distribution of education levels of the workers within individual occupations and industries. This will also include some individuals with education levels above and below the actual job requirements, but we expect this bias to be far less than the bias during a recession or early recovery period. Exhibit 5 shows the distribution of jobs of differing skill level requirements across different industries. Exhibit 5. Educational Attainment Requirement by Industry Construction Educational Services Financial Activities Health Services Information Leisure and Hospitality Manufacturing Mining Other Services Professional and Business Services Total Government Transportation and Utilities Wholesale and Retail Trade No HS Degree HS Degree Some College 0.25 0.04 0.04 0.06 0.05 0.27 0.13 0.13 0.16 0.09 0.04 0.10 0.13 0.41 0.12 0.23 0.23 0.22 0.32 0.38 0.41 0.33 0.22 0.21 0.41 0.37 0.24 0.22 0.32 0.36 0.32 0.29 0.26 0.28 0.28 0.27 0.27 0.31 0.32 Bachelor's Advanced Degree Degree 0.08 0.31 0.32 0.22 0.32 0.11 0.17 0.12 0.15 0.28 0.27 0.14 0.15 0.02 0.31 0.09 0.13 0.09 0.02 0.07 0.06 0.09 0.14 0.22 0.03 0.03 Source: Authors' calculations using BLS Current Population Survey, 2007 The required skill levels of jobs vary substantially across industries. For example, while 24 percent of construction jobs require less than a high school degree and 41 percent require a high school degree, in the government sector, 27 percent of jobs require a college degree and 22 percent an advanced degree. 7 Although education is only one dimension of the skill requirements of jobs, it is the only measure available in national data sets that also allow us to track industry and occupation employment. A National Picture of Short-Term Employment Growth by Skill Page 6 The skill requirements in this exhibit reflect the different requirements for specific occupations and the underlying distribution of occupations within each industry. 8 For example, in the construction industry most of the jobs are in the construction and extraction occupation. Consequently, the distribution of skill requirement for this occupation (22 percent less than high school, 44 percent high school, 20 percent some college, 4 percent college, and 1 percent advanced degree) is closely aligned to the skill requirements for the industry. Employment in the health services industry is spread across more occupations – primarily management, business and finance; professional and related; services; and office and administrative occupations. Each of these occupations within health services has different educational requirements, which summed together give industry educational requirements. Job Growth in the Near Term What does the slow recovery mean for job growth by sector and for workers of different skill levels moving forward? It is typical after a recession that some sectors recover more quickly than others. In this past recession, the collapse of the housing market led to huge declines in construction employment, and continuing foreclosures and declining home prices have contributed to the slow recovery in that sector. Meanwhile, the large healthcare sector continued to grow faster than other sectors over the past year. We examine what forecasts of employment by sector over the next five years mean for industry/occupation growth and skill requirements. Our national employment forecast by industry for 2012 through 2017 is based on data from Moody’s Analytics, Inc. Net employment growth over this period is projected to be 11.3 percent. The measure “net employment growth” provides information on new job creation that is over and above any job destruction occurring in a given industry. 9 This is not the same as the total number of new jobs created over the period. The US economy is dynamic, even in this sluggish recovery; firms go out of business and new firms open. If there were no change in employment level for an industry over a year (no net employment growth), new jobs would still have been created and others destroyed over the time period, just in a balanced number. We apply our knowledge of the distribution of occupations within industries and the distribution of educational attainment within occupations to arrive at job projections by skill level. Exhibit 6 shows employment in 2011 and projected employment in 2017 by industry. 8 A complete industry occupation distribution of requirements by education level is in the appendix. See Exhibit A.3. The net employment change is also different from job openings which includes job turnover, that is, someone leaving a job and a new person filling that job. 9 A National Picture of Short-Term Employment Growth by Skill Page 7 Exhibit 6. 2011 and 2017 Employment Level by Industry (000s) (change in employment ) 25,000 +2,977 20,000 5,000 +898 +2,403 15,000 10,000 +1,801 +3,447 +102 +978 +822 +387 +578 +288 +3 0 2011 Employment Level +241 2017 Employment Level Source: BLS Current Employment Statistics & Moody's Analytics The industry sectors with the largest projected net employment increases are professional and business services and health services. These sectors are also the largest projected job gainers in terms of growth rates. In contrast, employment gains in manufacturing, mining, wholesale and retail trade, and transportation and utilities will be much more modest. Using these industry forecasts, we compute employment in 2011 and 2017 by occupation and change in employment, illustrated in exhibit 7. Projected net employment over this period and growth rates are also shown in Exhibit 8. The largest number of net jobs gained by occupation over the next 5 years is in the office and administrative support occupation with over 2.6 million net jobs expected to be added.10 This is followed by sales occupations adding over 1.2 million jobs. The projected growth rate across occupations varies considerably. The occupations with the highest growth rates are education, personal care services, and community and social services, all growing at over 16 percent. It is worth noting that occupations with the greatest projected net employment gains or the highest growth rates do not necessarily pay the highest wages. Exhibit 8 also shows the median hourly wage by occupation for 2010 (the most recent data available). The occupation with the greatest net increase in jobs (office and administrative support) pays on average $14.77 per hour, which is lower than the median hourly wage in 2010 10 We assume here that the occupational distribution within industries remains the same in 2017 as in 2011. This is a reasonable assumption over a 5 year period. However, it is possible that coming out of a major recession the nature of how goods and services are produced within industries may shift and as such the skill and occupation mix will also shift. Any such shift that had already happened by 2011 is captured. A National Picture of Short-Term Employment Growth by Skill Page 8 of $16.27. High growth in lower paying jobs is in line with research showing that in the early part of the recovery low-paying jobs have dominated employment growth. 11 Exhibit 7. 2011 and 2017 Employment Level by Major Occupation (employment change 000s) Office & Administrative Support Sales & Related Food Prep. & Serving Related Transp. & Material Moving Install., Maintenance, & Repair Business & Financial Operations Education, Training, & Library Construction & Extraction Management Personal Care & Service Computer & Mathematical Building & Grounds & Maint. Production Arts/Design/Ent./Sports, & Media Protective Service Healthcare Practitioners & Tech. Architecture and Engineering Community & Social Service Healthcare Support Legal Life, Physical, & Social Science Farming, Fishing, & Forestry +2,656 +1,231 +325 +891 +1,166 +929 +1,199 +989 +816 +853 +663 +445 +510 +571 +424 +339 +248 +236 +160 +128 +134 +10 0 5,000 10,000 2011 Employment Level 15,000 20,000 25,000 30,000 2017 Employment Level Source: BLS Current Employment Statistics & Moody's Analytics Using our measures of how skill requirements vary across industry and occupation categories we can translate these forecasts into employment gains for jobs of different skill levels. 11 “The Good Jobs Deficit: Low-Paying Jobs & Falling Wages Dominate Growth Since 2010” National Employment Law Project, July 2011. http://www.nelp.org/page/-/Final%20occupations%20report%207-25-11.pdf?nocdn=1 A National Picture of Short-Term Employment Growth by Skill Page 9 Exhibit 8. Net Employment Change and Growth by Major Occupation, 2007-2017 Occupation Office and Administrative Support Sales and Related Food Preparation and Serving Related Education, Training, and Library Installation, Maintenance, and Repair Construction and Extraction Business and Financial Operations Transportation and Material Moving Personal Care and Service Management Computer and Mathematical Arts, Design, Ent., Sports, and Media Production Building & Grounds & Maintenance Protective Service Healthcare Practitioners and Technical Architecture and Engineering Community and Social Service Healthcare Support Life, Physical, and Social Science Legal Farming, Fishing, and Forestry Net Employment Change +2,656,067 +1,230,547 +325,428 +1,199,017 +1,166,305 +988,911 +929,403 +891,172 +852,987 +815,891 +662,557 +571,494 +510,229 +445,287 +424,022 +338,871 +248,103 +235,745 +160,271 +133,878 +128,260 +10,181 Source: BLS Current Employment Survey and Moody's Analytics Growth Rate 11.3% 7.8% 3.2% 16.3% 14.5% 14.6% 12.4% 9.4% 16.1% 12.1% 12.9% 15.1% 11.4% 9.8% 13.7% 11.7% 10.7% 17.0% 12.5% 12.2% 10.6% 8.1% Median Hourly Wage $14.77 $11.72 $9.02 $21.97 $19.29 $18.79 $29.17 $13.66 $9.92 $43.96 $35.44 $20.61 $14.58 $10.81 $17.63 $28.12 $33.95 $18.89 $11.90 $28.14 $35.86 $9.44 Net Employment Increase by Skill Levels Exhibits 9 to 13 show where net employment growth in 2012 is forecast by selected industry sectors for different skill level requirements. 12 Exhibit 9 shows that the largest net gains in employment for jobs that require less than a high school education will be in the leisure and hospitality sector. The second largest growth will be in the professional and business services sector. 12 Appendix exhibit A.4 presents net employment change numbers by industry and skill level. A National Picture of Short-Term Employment Growth by Skill Page 10 Exhibit 9. Net Employment Growth for Less than High School Degree, 2011-2017 1,200,000 1,000,000 800,000 Total Growth=1,759,000 647,000 600,000 400,000 245,000 200,000 15,000 0 316,000 186,000 29,000 14,000 13,000 400 91,000 63,000 25,000 115,000 Exhibit 10. Net Employment Growth for High School Degrees, 2011-2017 1,200,000 1,000,000 600,000 400,000 200,000 0 765,000 693,000 800,000 743,000 398,000 Total Growth=3,936,000 374,000 48,000 192,000 62,000 38,000 189,000 1,000 334,000 99,000 A National Picture of Short-Term Employment Growth by Skill Page 11 Exhibit 11. Net Employment Growth for Some College, 2011-2017 1,200,000 1,062,000 915,000 1,000,000 800,000 685,000 600,000 400,000 Total Growth=4,374,000 488,000 263,000 239,000 200,000 92,000 84,000 26,000 0 285,000 159,000 75,000 1,000 Exhibit 12. Net Employment Growth for College Degrees, 2011-2017 1,200,000 975,000 1,000,000 Total Growth=3,200,000 800,000 658,000 600,000 479,000 400,000 200,000 0 261,000 81,000 119,000 258,000 93,000 17,000 300 87,000 35,000 137,000 A National Picture of Short-Term Employment Growth by Skill Page 12 Exhibit 13. Net Employment Growth for Advanced Degrees, 2011-2017 1,200,000 1,000,000 Total Growth=1,653,000 800,000 600,000 400,000 200,000 0 497,000 378,000 15,000 120,000 77,000 27,000 47,000 7,000 200 52,000 398,000 8,000 27,000 A National Picture of Short-Term Employment Growth by Skill Page 13 Exhibit 10 shows that employment growth is spread across several industries for jobs requiring just a high school education. Professional and business services, leisure and hospitality, and health services have the largest net gains. Wholesale and retail trade, as well as the recovering construction and government sectors, will also show gains. The net employment growth for those jobs requiring some college education (exhibit 11) is also spread across these same industries, although health services industry has the largest net employment gains. For jobs that require a college or advanced degree (exhibits 12 and 13), 2017 net employment growth is concentrated in the professional and business services sector. We also see significant net gains in the health services sector and government sector. If we aggregate across all sectors by skill requirement, we see net employment gains for every educational level (exhibit 14). Exhibit 14. 2011-2017 Net Change in Employment, by Education Requirement 14.0% 12.0% 10.0% 11.4% 10.8% 11.3% 11.5% 9.6% 8.0% 6.0% 4.0% 2.0% 0.0% Less Than High High School Degree School Degree Some College College Degree Advanced Degree Source: BLS Current Employment Statistics, BLS Current Population Survey, and Moody's Analytics Employment growth rates are slightly higher for those with less than a high school degree than other groups, 11.4 percent. 13 It is also notable that those with exactly a high school degree will experience the slowest rate of job growth over the next five years at 9.6 percent. This is in part attributable to the high concentration of jobs requiring exactly a high school degree in the 13 Other research shows an increasing demand over time for jobs with higher education requirements. See Carnevale, A., N. Smith, and J. Strohl, 2010, “Help Wanted: Projections of Jobs and Education Requirements Through 2018,” Georgetown Center on Education and the Workforce. Although the methods we use differ from this study, our projections of total employment requiring less than high school or high school in 2017 are not far different from their projection for 2018. The trends historically over a longer period than from 2011 to 2017 show bigger gains for higher education levels. A National Picture of Short-Term Employment Growth by Skill Page 14 manufacturing, mining, and transportation and utilities sectors which are all projected to grow slowly. The slightly higher rate of growth among jobs requiring less than a high school degree over the next five years needs to be placed in the context of the large decline in jobs requiring less than a high school degree during the recession. Exhibit 15 shows employment change by skill requirement starting in 2007 and projected through 2017. While employment is growing across all educational requirement categories, it is clear that jobs requiring less education have the most ground to make up. Jobs requiring high school or less than high school education are not projected to return to their 2007 level until 2014. Exhibit 15. Employment Change by Education Requirement 1.15 1.1 Advanced Degree 1.05 College Degree 1 Some College 0.95 Less than High School Degree 0.9 0.85 2007 High School Degree 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: BLS Current Employment Statistics, BLS Current Population Survey, and Moody's Analytics Unemployment through the Recovery: Who is Left Behind? The net increase in jobs requiring different skill levels is only one side of the economic recovery story. The other side is the size of the labor pool by skill level that is searching for jobs. We typically use the unemployment rate as an indicator of the size of this labor pool. The unemployment rate tells us the number of individuals actively searching for work as a percentage of the labor force. The labor force is A National Picture of Short-Term Employment Growth by Skill Page 15 the total number of employed and unemployed workers. In February 2012, there were 12.9 million unemployed workers in the U.S.; almost 7 million of these workers had a high school degree or less. One of the stark realities of the recovery is that there are still many more people seeking jobs than there are job openings. There were 3.5 million job openings in January 2012 14 which means 3.7 unemployed people for every job opening. While even in a healthy economy there are more job seekers than openings, this is still a high number, especially this far into a recovery. For comparison, during the 2001 recession the highest value of this ratio was 2.8 job seekers per job opening. Moreover, the official unemployment data only includes those who are actively searching for work. Many others have given up actively searching, but would still take a job if one was offered – the socalled “marginally attached” or “discouraged” workers. 15 In February 2012, in addition to the unemployed there were another 2.8 million marginally attached persons. If marginally attached individuals were counted as unemployed, the unemployment rate for February 2012 would increase from 8.3 to 9.8 percent. In addition to the unemployed and those who have stopped searching for work, over time there will be other additions to the pool of potential workers. Natural growth in the labor force occurs as the population grows and young people enter the labor market seeking work. In the next five years after such a deep recession, there will also be labor market entry from “pent up supply” — people who refrained from entering during the recession because unemployment was so high. This includes young people who went on for more schooling than they might have otherwise or parents with older children who chose not to join or re-join the labor market when they would have in normal economic times. These delayed labor market entrants will also be competing for work as the recovery continues. 16 In some ways, low-skill workers are at a disadvantage in this recovery. Workers with lower education have higher unemployment rates than more educated workers. 17 In February 2012, the unemployment rate for individuals age 18 and over with less than a high school degree was 17.6 percent. It was 10.9 percent for those with just a high school degree and 5.0 percent for those with a college degree. Exhibit 16 shows that the low skilled are disproportionately represented among the unemployed relative to the employed. In 2012, only 8 percent of the employed have less than a high school degree compared to 17 percent of the unemployed. Among discouraged workers, the proportion with lower education 14 US Department of Labor, Job Openings and Labor Turnover, http://www.bls.gov/news.release/pdf/jolts.pdf. The US Department of Labor officially defines someone as “marginally attached to the labor market” if they are not working, searched for work in the last year but are not in the last week, and are willing to take a job if offered. “Discouraged workers” are a subset of the marginally attached who say the reason they are no longer searching is because they do not believe there is a job available in their line of work or they lack the necessary schooling or training, or they cannot find work due to discrimination. US Bureau of Labor Statistics. 2009 “How the Government Measures Unemployment.” 16 Predicting labor supply in the recovery is difficult because it is made up of “natural” labor force population growth as well as this “pent-up” supply. In addition, other factors that are difficult to predict include patterns of immigration in response to the recovery and changes in retirement patterns as some unemployed older workers leave the labor force for early retirement while others with jobs work longer because of reductions in the value of their retirement assets. 17 Unemployment rates for less skilled workers are almost always higher than for more skilled workers, even in a robust economy. 15 A National Picture of Short-Term Employment Growth by Skill Page 16 levels is even higher, with 22 percent without a high school degree and 38 percent with exactly a high school degree. Exhibit 16. Education Distribution of Employed and Unemployed 100% 90% 80% 20.5% 37.1% 70% 28.5% 60% 50% Some College 28.1% 38.3% 34.4% 30% High School Less than High School 27.2% 10% 0% 18.7% College or More 40% 20% 20.9% 7.7% Employed 16.6% Unemployed 22.1% Discouraged Source: Author's calculations from February 2012 CPS Exhibit 17 shows the absolute size of the unemployed population by skill level. There are more than 2.3 million unemployed with less than a high school degree and 4. 6 million who have a high school degree. A closer examination of the characteristics of the unemployed, especially among those with low skill levels, reveals who is likely to face the greatest challenges in finding employment. Exhibit 18 shows how the unemployment rate varies across gender, race, and age over the whole population and within skill levels. Generally, these patterns are similar to before the recession, although the specific rates are higher. 18 In early 2012, the unemployment rate for men is higher than for women, in line with characterizations of the recession as hitting men harder than women. However, this varies across skill level. Female workers with less than a high school degree have a higher unemployment rate than men at the same education level; similarly among o those with some college, women have a higher unemployment rate than men. 18 Appendix exhibit A.5 presents unemployment rates for each skill level by age within race/ethnicity group. A National Picture of Short-Term Employment Growth by Skill Page 17 Exhibit 17. Size of Unemployed Population by Skill Level 5,000,000 4,658,000 4,500,000 4,000,000 3,676,000 3,500,000 3,000,000 2,500,000 2,369,000 2,000,000 1,662,000 1,500,000 1,000,000 586,000 500,000 0 Less than High High School Some College School Source: Author's calculations from February 2012, CPS. Bachelor's Degree Advanced Degree The unemployment rate for Hispanic and for black workers is substantially higher than the overall rate, 14.0 and 11.2 compared with 8.5 percent. 19 This pattern encompasses all education categories for black workers and for most categories (except some college and advanced degree) for Hispanic workers. Unemployment rates for low-skill workers of color are exceptionally high. For example, unemployment among black workers with less than a high school degree is 29.5 percent. Young workers (ages 18 to 25) are more likely to be unemployed than older workers across all skill levels, with an unemployment rate of 15.2 percent. One quarter of the unemployed are ages 18 to 25. Younger workers who are also low-skilled fare far worse; 29 percent of young workers without a high school degree are unemployed and 21 percent of those with a high school degree. These workers likely have less work experience, which creates more difficulty competing for jobs. 19 The official unemployment rate for February was 8.3 percent. This number is different because we are calculating from the same data for workers age 18 and older (rather than 16 and older) and we are not seasonally adjusting. Published statistics are not available for all the characteristics by education level that we present. A National Picture of Short-Term Employment Growth by Skill Page 18 Exhibit 18. Unemployment Rates by Gender, Race, Age, and Skill Level, 2012 Unemployment Rate Unemployed (000s) Gender Male Female Race White, NonHispanic Black, NonHispanic Hispanic Other Age 18-25 26-35 36-45 46-55 56-65 All Less than High School High School Some College Bachelor's Degree Advanced Degree 8.5% 17.6% 10.9% 8.0% 5.0% 3.4% 12,954 2,369 4,659 3,677 1,663 587 9.0% 7.9% 16.4% 18.2% 10.4% 9.5% 7.6% 8.4% 5.5% 4.6% 3.1% 3.4% 7.0% 17.0% 9.3% 7.2% 4.5% 3.0% 14.0% 29.5% 17.7% 11.3% 7.3% 6.7% 11.2% 8.1% 16.1% 13.5% 11.6% 10.5% 7.5% 11.4% 7.5% 5.5% 3.4% 3.6% 15.2% 8.9% 7.2% 7.0% 6.2% 29.2% 18.2% 14.7% 15.0% 10.1% 21.0% 12.2% 9.4% 8.4% 6.6% 9.9% 9.5% 7.1% 6.4% 6.8% 7.8% 4.8% 4.2% 4.5% 5.5% 4.3% 2.9% 2.7% 3.7% 3.6% Source: Author's calculations from the February 2012 CPS. There are other personal barriers to re-employment for some unemployed workers including language fluency, disability, and having a criminal record. For example, it is estimated that 65 million Americans have a criminal record which can limit their access to jobs. 20 Not all of these barriers are measured in national data. Exhibit 19 provides information on the prevalence of several barriers that are available, including lack of citizenship, not speaking English as your primary language, health problems, and debt. It presents the prevalence of these barriers among all unemployed workers and by skill level. It also shows the prevalence among all employed workers for context. Overall, unemployed are more likely than employed workers to lack citizenship, to speak a primary language other than English, and to have a work-limiting physical or mental health condition. These factors could be part of the reason some workers are unemployed. Among those unemployed with less than a high-school degree, the prevalence of these potential barriers is even higher than all 20 National Employment Law Project. 2011. “The Case for Reforming Criminal Background Checks for Employment” http://www.nelp.org/page/-/SCLP/2011/65_Million_Need_Not_Apply.pdf?nocdn=1 A National Picture of Short-Term Employment Growth by Skill Page 19 unemployed. For example, the unemployed with less than a high school degree are almost twice as likely as all unemployed to speak a primary language other than English (45% vs. 23%). The prevalence of all three of these barriers declines as skill level increases. These results suggest that a high percentage of unemployed, less-skilled workers face disadvantages in the labor market when seeking work over and beyond the challenges posed by job availability at their respective skill levels. Exhibit 19. Potential Barriers to Re-Employment Among Unemployed, by Skill Level High School Some College Bachelor's Degree Advanced Degree Unemployed Less than High School Unemployed Unemployed Unemployed Unemployed Unemployed 8.5% 17.6% 10.9% 8.0% 5.0% 3.4% 139,566 12,954 2,369 4,659 3,677 1,663 587 8.7% 11.0% 27.9% 8.2% 5.0% 7.0% 9.5% Primary Language other than English 17.09% 22.95% 44.93% 20.72% 16.25% 16.69% 8.71% Work limiting physical or mental condition 5.05% 9.35% 11.27% 9.68% 9.77% 5.57% 4.00% Median level of non-housing debt ($) 10,000 6,000 1,000 5,000 9,700 12,000 13,000 All Employed Unemployment Rate (Number in 000s) Not U.S. Citizen Source: Employment, unemployment and citizenship are from the February 2012 CPS. Primary language other than English, work limiting physical or mental condition, and median level of non-housing debt are from the 2008 Survey of Income and Program Participation (SIPP), representing the second half of 2010. The median debt includes those reporting 0 debt. Conclusions The recovery is continuing, but at a slow pace with relatively modest employment growth projected over the next five years and unemployment forecast to remain well above 7 percent for the next several years. Sectors such as professional and business services, health services and leisure and hospitality are forecast to grow over the next five years while the depressed manufacturing and government sectors are forecast to gain jobs very slowly, remaining well below their pre-recession levels. Using our national industry forecast, we estimate employment growth by the required skill levels of jobs, occupations, and industry sectors. A National Picture of Short-Term Employment Growth by Skill Page 20 Within the overall low national employment growth forecast, predicted employment growth rates for 2012 through 2017 are slightly higher for jobs requiring the lowest and highest level of educational attainment and lowest for those with exactly a high school degree. Across given skill level requirements, the industries with the highest net employment gains vary. This stems from the very different distributions of specific occupations and jobs within industries. The largest number of jobs added that require less than a high school degree are in the leisure and hospitality industries. For those requiring just a high school degree, net employment gains are highest across leisure and hospitality, professional and business services, and health services. Jobs requiring higher education levels are increasing, on net, the most in health services and professional and business services. Putting net employment gains in perspective, the size of the unemployed population is still many times the number of job openings in the economy. Low-skill workers are disproportionately represented among the unemployed. In addition, the low-skill unemployed are more likely to have personal characteristics and circumstances that can make finding work difficult. The economy has not yet seen the job growth necessary to get us back to employment levels before the recession, much less meeting the job needs of a growing labor force. More job creation is needed across industry sectors and all skill levels to return to a truly healthy economy. A National Picture of Short-Term Employment Growth by Skill Page 21 LABOR MARKET AND DEMOGRAPHIC ANALYSIS: A NATIONAL PICTURE OF SHORT-TERM EMPLOYMENT GROWTH BY SKILL APPENDIX This appendix describes the methods used for the analysis in the main report. We start with a description of data we use. The appendix also provides additional detailed result tables that are referred to in the main text. Data We use data from several different sources in this study. They are described below. Current Employment Statistics (CES). The CES is a monthly survey conducted by the Bureau of Labor Statistics of approximately 140,000 establishments representing payroll employment in non-farm sectors. Besides the farm sector, the CES also excludes the self-employed, proprietors, unpaid, and domestic workers. The CES is considered the most reliable data source for current employment figures by industry sector and geographic region. Moody’s Analytics. Historical data from the CES as well as projections from 2012 and 2017 are provided by Moody’s Analytics Inc., a private forecasting firm. We use this data to measure employment by industry from 2007 through 2011 and projections from 2012 through 2017. Current Population Survey (CPS). The CPS is a monthly survey conducted by the Bureau of Labor Statistics of approximately 60,000 households representing the civilian non-institutionalized population. The CPS is the only data source that can provide current information on employment by both industry and occupation, as well as information on educational attainment levels. While the CES is generally considered the most reliable source for industry employment counts, the CPS provides accurate information on the employment share of an industry that is in a particular occupation or education category. We use the CPS to calculate the occupation employment share of each industry sector and the distribution of educational attainment within each industry-occupation cell. Applying the CPS shares to the CES employment counts allows us to estimate the number of workers by educational attainment category. For the ten major occupation categories, the CPS uses the 2010 Census occupation classification system which is derived from the Standard Occupational Classification system. We apply the same NAICS industry sectors as used in the CES to make the two samples compatible. For educational attainment, we construct five categories: less than high school graduate, high school graduate, some college, college graduate, advanced degree. Our CPS sample is restricted to wage and salary earners age 16 and over. We exclude the selfemployed and farm workers to conform to the CES sample. A National Picture of Short-Term Employment Growth by Skill Page A1 Occupational Employment Statistics (OES). The OES produces annual estimates of employment and wages by occupation and industry. We use the 2010 OES (latest available) to measure the occupational employment distribution within each of our industry sectors. The twenty-two occupational groups we use come from the 2010 Standard Occupational Classification system. Methodology1 Establishing 2011 Baseline Employment by Industry and Occupation (OES) We measure average monthly industry employment each quarter of the CES data. Appendix table A.1 presents employment levels by industry for the last quarter of 2007, 2009, and 2011. These data are the basis of Exhibit 2 in the report. We apply the matrix of the 2010 OES occupational employment distribution within each industry to the 2011 industry employment numbers to generate 2011 baseline employment by occupation estimates. For example, the CES indicates that there are 11.8 million workers in the manufacturing sector and the OES indicates that 6% of manufacturing workers are employed in management occupations. This gives approximately 708,000 workers in management occupations in the manufacturing industry. Aggregating the number of managers across all industries gives estimates of total employment by occupation found in Exhibit 3 in the report. Establishing 2011 Baseline Employment by Industry and Occupation (CPS) We repeat the above technique to estimate an alternative set of industry-occupation employment figures using the occupational employment distribution matrix from the 2011 CPS. Although the CPS occupation data is less detailed and reliable than the OES, we are using the CPS because it provides needed information on skill requirements. The CPS industry-occupation matrix is found in exhibit A.2. Measuring Skill Requirements (CPS) We use the 2007 full calendar year of CPS to measure the distribution of educational attainment within each industry-occupation cell. While education is only one proxy for skill, it is the only such measure available in the CPS. We use the 2007 pre-recession year because we believe that during the Great Recession and its aftermath, the overall lack of jobs induced many individuals with higher levels of educational attainment to fill jobs for which they may be overqualified. To get a better sense of the underlying job requirements of a particular industry-occupation, the 2007 educational levels are likely more accurate than 2011 levels. Appendix exhibit A.3 contains five industry-occupation matrices, one for each level of educational attainment. For example, in the manufacturing industry and production 1 Our national employment projection methodology differs from the often-cited BLS Employment Projections in several ways. First, we are creating an intermediate term forecast that does not assume full employment and utilization across industries. Second, we attempt to adjust for the fact that educational attainment within an industry-occupation cell during the most recent years of high unemployment may reflect workers taking jobs for which they are overqualified. Our methods are also distinct from those used by Center on Education and the Workforce--Carnevale et al. (2010) who argue that the BLS understates education requirement growth because their methods ignore education upgrading that occurs within detailed occupations. We do not assume educational requirement upgrades in education within occupation between 2007 and 2017. In practice, however, Carnevale et al. arrive at predictions for the educational distribution for 2018 that are similar to our projection numbers for 2017. A National Picture of Short-Term Employment Growth by Skill Page A2 occupation, 20% of the jobs require less than a high school degree while 50% require a high school degree. Incorporating Industry Forecasts for 2017 We incorporate the employment by industry forecasts from Moody’s Analytics for 2012 through 2017 and compare to the 2011 baseline. Combining the industry forecasts with the 2007 and 2011 CPS matrices, we estimate employment by educational attainment. We then calculate the net employment change between 2011 and 2017 by industry and level of education as shown in exhibit A.4. Unemployment Statistics by Skill Level The report also presents information on the unemployed by skill level. As a complement to these data, Appendix exhibit A.5 presents unemployment rates for each skill level by age group within race/ethnicity group. These data are from the CPS 2012. State Forecasts The report focuses on national data. The same techniques can be used to create estimates for states. Table A.6 provides estimates of employment by education skill-level for 2007, 2011, and projections for 2017 for 25 selected states using the same methodology as above except state employment estimates. The numbers in the final column, percent change from 2011 to 2017correspond to the national numbers in Exhibit 14 in the report. Exhibit A.1 Change in Employment by Industry between 2007 and 2011, Quarter 4 Industry Construction Educational Services Financial Activities Health Services Information Leisure and Hospitality Manufacturing Mining Other Services Prof. & Business Services Total Government Transportation & Utilities Wholesale & Retail Trade Total Nonfarm 2007 Q4 Employment 2009 Q4 Employment 2011 Q4 Change in Change in Employment Employment, Employment 2007-2009 2007-2011 7,526,000 2,971,167 8,238,400 15,544,934 3,025,333 13,527,900 13,751,667 734,134 5,505,000 18,023,900 22,335,667 5,107,533 21,592,899 137,884,534 5,686,000 3,097,100 7,686,200 16,218,600 2,753,333 12,973,400 11,497,333 662,000 5,325,000 16,440,900 22,513,000 4,731,433 19,862,333 129,446,632 5,528,333 3,271,767 7,689,033 16,778,567 2,645,000 13,431,300 11,788,333 815,166 5,352,333 17,532,034 22,007,334 4,873,100 20,272,400 131,984,700 -1,840,000 125,933 -552,200 673,666 -272,000 -554,500 -2,254,334 -72,134 -180,000 -1,583,000 177,333 -376,100 -1,730,566 -8,437,902 -1,997,667 +300,600 -549,367 +1,233,633 -380,333 -96,600 -1,963,334 +81,032 -152,667 -491,866 -328,333 -234,433 -1,320,499 -5,899,834 Source: BLS Current Employment Statistics A National Picture of Short-Term Employment Growth by Skill Page A3 Exhibit A.2 2011 Occupation-Industry Employment Matrix Occupation Management, Business, & Finance Professional and Related Construction 741,758 144,444 45,698 92,257 Educational Services 468,258 2,045,183 307,249 Industry Services Farming Construction & Extraction Installation & Maintenance Production Transportation 349,823 3,889 3,532,966 335,926 98,354 183,218 5,528,333 31,279 315,306 2,353 16,044 36,367 10,663 39,064 3,271,767 Sales Office & Admin Industry Total Financial Activities 2,994,516 577,651 337,302 1,346,253 2,137,126 1,803 40,532 122,868 44,231 86,751 7,689,033 Health Services 1,437,880 7,484,342 4,998,950 54,380 2,401,686 3,167 38,277 96,311 136,602 126,972 16,778,567 528,272 796,789 84,175 343,621 449,331 2,436 20,207 306,858 64,416 48,895 2,645,000 Leisure and Hospitality 1,514,233 511,822 9,064,646 1,056,941 647,545 2,257 43,142 119,024 133,410 338,280 13,431,300 Manufacturing 1,835,828 1,626,654 196,528 513,933 1,090,437 45,304 242,225 579,540 4,718,813 939,071 11,788,333 Mining 100,463 86,935 7,088 15,134 62,529 5,725 331,256 61,179 54,095 90,763 815,166 Other Services Professional and Business Services 504,552 836,924 1,818,589 219,204 529,724 5,027 24,848 824,059 323,916 265,490 5,352,333 3,760,069 5,416,898 3,123,519 722,320 2,848,194 18,222 179,731 344,454 475,352 643,274 17,532,034 Total Government 2,554,178 9,632,114 4,385,236 207,034 3,238,664 30,025 487,575 441,560 299,756 731,191 22,007,334 Transportation and Utilities 508,758 229,034 125,534 116,715 810,380 8,031 104,868 395,980 195,849 2,377,949 4,873,100 Wholesale and Retail Trade 1,306,511 1,024,071 836,349 9,781,368 3,513,803 71,153 124,786 846,073 710,373 2,057,913 20,272,400 Information Source: Authors' calculations using BLS Current Employment Statistics and Current Population Survey A National Picture of Short-Term Employment Growth by Skill Page A4 Exhibit A.3 2007 Occupation-Industry Education Requirement Less than High School Industry Construction Educational Services Financial Activities Health Services Information Leisure and Hospitality Manufacturing Mining Other Services Prof. & Business Services Total Government Transportation and Utilities Wholesale and Retail Trade HS Degree Construction Educational Services Financial Activities Health Services Information Leisure and Hospitality Manufacturing Mining Other Services Prof. & Business Services Total Government Transportation and Utilities Wholesale and Retail Trade Occupation Management, Business, & Finance 0.05 0.01 0.01 0.01 0.02 0.06 0.01 0.04 0.02 0.01 0.01 0.01 0.03 Professional and Related 0.04 0.01 0.01 0.01 0.01 0.09 0.01 0.08 0.02 0.01 0.01 0.03 0.03 Management, Business, & Finance 0.27 0.06 0.15 0.11 0.12 0.29 0.15 0.20 0.15 0.08 0.11 0.21 0.20 Professional and Related 0.15 0.05 0.10 0.08 0.11 0.17 0.10 0.16 0.09 0.08 0.06 0.14 0.18 Services 0.22 0.17 0.26 0.15 0.37 0.31 0.24 0.32 0.22 0.32 0.09 0.10 0.22 Services 0.44 0.38 0.40 0.41 0.21 0.33 0.46 0.40 0.40 0.38 0.35 0.34 0.43 Sales 0.12 0.09 0.02 0.06 0.08 0.39 0.04 0.00 0.14 0.05 0.09 0.05 0.11 Office & Admin 0.08 0.03 0.03 0.04 0.04 0.14 0.06 0.09 0.08 0.05 0.02 0.06 0.13 Sales 0.21 0.27 0.19 0.27 0.23 0.32 0.21 0.05 0.36 0.23 0.28 0.29 0.35 Office & Admin 0.35 0.23 0.36 0.35 0.30 0.32 0.41 0.34 0.34 0.33 0.33 0.37 0.43 Farming 0.46 0.00 0.26 0.58 0.00 0.11 0.33 1.00 0.00 0.34 0.12 0.21 0.42 Construction & Extraction 0.32 0.10 0.22 0.13 0.18 0.12 0.20 0.18 0.20 0.25 0.08 0.09 0.23 Installation & Maintenance 0.13 0.08 0.18 0.06 0.05 0.22 0.10 0.14 0.18 0.09 0.06 0.10 0.11 Production 0.25 0.19 0.16 0.25 0.10 0.35 0.20 0.15 0.35 0.20 0.12 0.08 0.18 Transportation 0.25 0.18 0.20 0.20 0.20 0.24 0.23 0.11 0.28 0.24 0.10 0.15 0.24 Industry Total 0.25 0.04 0.04 0.06 0.05 0.27 0.13 0.13 0.16 0.09 0.04 0.10 0.13 Farming 0.51 0.00 0.00 0.42 0.00 0.14 0.38 0.00 0.34 0.20 0.31 0.55 0.31 Construction & Extraction 0.44 0.50 0.47 0.41 0.32 0.38 0.43 0.51 0.41 0.33 0.46 0.41 0.53 Installation & Maintenance 0.44 0.29 0.36 0.37 0.37 0.42 0.44 0.43 0.45 0.37 0.46 0.45 0.45 Production 0.42 0.27 0.38 0.43 0.45 0.35 0.50 0.38 0.40 0.41 0.40 0.45 0.47 Transportation 0.50 0.46 0.40 0.48 0.40 0.35 0.52 0.61 0.38 0.50 0.51 0.49 0.48 Industry Total 0.41 0.12 0.23 0.23 0.22 0.32 0.38 0.41 0.33 0.22 0.21 0.41 0.37 A National Picture of Short-Term Employment Growth by Skill Page A5 Exhibit A.3 2007 Occupation-Industry Education Requirement (continued) Some College Construction Educational Services Financial Activities Health Services Information Leisure and Hospitality Manufacturing Mining Other Services Prof. & Business Services Total Government Transportation and Utilities Wholesale and Retail Trade College Degree Construction Educational Services Financial Activities Health Services Information Leisure and Hospitality Manufacturing Mining Other Services Prof. & Business Services Total Government Transportation and Utilities Wholesale and Retail Trade Management, Business, & Finance 0.32 0.17 0.25 0.26 0.23 0.33 0.24 0.29 0.26 0.21 0.22 0.26 0.30 Professional and Related 0.25 0.15 0.26 0.35 0.26 0.26 0.26 0.20 0.20 0.22 0.16 0.25 0.31 Management, Business, & Finance 0.30 0.37 0.44 0.38 0.46 0.26 0.40 0.28 0.38 0.48 0.35 0.40 0.38 Professional and Related 0.45 0.37 0.42 0.33 0.47 0.35 0.41 0.33 0.31 0.40 0.37 0.41 0.34 Services 0.19 0.32 0.23 0.35 0.31 0.28 0.24 0.26 0.29 0.23 0.38 0.32 0.27 Services 0.09 0.12 0.09 0.08 0.09 0.07 0.05 0.02 0.07 0.07 0.15 0.21 0.07 Sales 0.33 0.27 0.33 0.31 0.33 0.20 0.27 0.40 0.28 0.32 0.40 0.34 0.34 Office & Admin 0.44 0.50 0.43 0.45 0.44 0.39 0.37 0.40 0.39 0.42 0.44 0.42 0.33 Sales 0.30 0.21 0.37 0.26 0.30 0.07 0.41 0.56 0.18 0.34 0.17 0.28 0.17 Office & Admin 0.11 0.18 0.16 0.14 0.18 0.13 0.14 0.13 0.16 0.18 0.17 0.13 0.10 Farming 0.03 1.00 0.74 0.00 0.00 0.37 0.18 0.00 0.36 0.26 0.25 0.24 0.18 Construction & Extraction 0.20 0.32 0.14 0.32 0.36 0.32 0.32 0.26 0.32 0.28 0.34 0.37 0.15 Installation & Maintenance 0.37 0.37 0.33 0.43 0.44 0.25 0.37 0.35 0.29 0.39 0.39 0.38 0.37 Production 0.27 0.24 0.31 0.24 0.21 0.16 0.23 0.32 0.17 0.29 0.33 0.37 0.28 Transportation 0.23 0.23 0.24 0.21 0.29 0.31 0.20 0.23 0.23 0.21 0.30 0.26 0.23 Industry Total 0.24 0.22 0.32 0.36 0.32 0.29 0.26 0.28 0.28 0.27 0.27 0.31 0.32 Farming 0.00 0.00 0.00 0.00 0.00 0.38 0.08 0.00 0.31 0.21 0.23 0.00 0.07 Construction & Extraction 0.04 0.08 0.14 0.07 0.14 0.13 0.04 0.04 0.08 0.10 0.09 0.10 0.06 Installation & Maintenance 0.05 0.17 0.09 0.10 0.12 0.09 0.07 0.08 0.06 0.12 0.09 0.07 0.06 Production 0.04 0.15 0.15 0.05 0.19 0.11 0.05 0.09 0.06 0.10 0.11 0.09 0.06 Transportation 0.02 0.11 0.13 0.09 0.11 0.10 0.04 0.04 0.10 0.04 0.08 0.08 0.04 Industry Total 0.08 0.31 0.32 0.22 0.32 0.11 0.17 0.12 0.15 0.28 0.27 0.14 0.15 A National Picture of Short-Term Employment Growth by Skill Page A6 Exhibit A.3 2007 Occupation-Industry Education Requirement (continued) Management, Business, & Professional Finance and Related Construction 0.06 0.11 Educational Services 0.39 0.41 Financial Activities 0.14 0.22 Health Services 0.24 0.22 Information 0.17 0.14 Leisure and Hospitality 0.06 0.14 Manufacturing 0.19 0.23 Mining 0.19 0.23 Other Services 0.18 0.37 Prof. & Business Services 0.22 0.29 Total Government 0.31 0.40 Transportation and Utilities 0.12 0.17 Wholesale and Retail Trade 0.10 0.15 Source: Author's calculations using BLS Current Population Survey Advanced Degree Services 0.06 0.01 0.03 0.01 0.03 0.01 0.01 0.00 0.01 0.01 0.03 0.03 0.01 Sales 0.04 0.16 0.09 0.10 0.06 0.01 0.07 0.00 0.04 0.06 0.07 0.04 0.02 Office & Admin 0.01 0.06 0.02 0.03 0.03 0.02 0.02 0.05 0.04 0.03 0.03 0.02 0.01 Farming 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.00 0.00 0.09 0.00 0.03 Construction & Extraction 0.01 0.00 0.03 0.07 0.00 0.04 0.01 0.01 0.00 0.03 0.03 0.03 0.03 Installation & Maintenance 0.01 0.10 0.05 0.03 0.03 0.03 0.01 0.00 0.02 0.03 0.01 0.00 0.01 Production 0.02 0.15 0.00 0.03 0.05 0.02 0.01 0.06 0.01 0.01 0.04 0.02 0.01 Transportation 0.00 0.03 0.02 0.02 0.00 0.01 0.01 0.00 0.01 0.01 0.02 0.02 0.01 Industry Total 0.02 0.31 0.09 0.13 0.09 0.02 0.07 0.06 0.09 0.14 0.22 0.03 0.03 A National Picture of Short-Term Employment Growth by Skill Page A7 Exhibit A.4 Net Employment Change between 2011-2017, by Industry and Education Projected Net Employment Change Construction Less than High School Degree High School Degree Some College College Degree Advanced Degree Educational Services +245,000 +398,000 +239,000 +81,000 +15,000 Less than High School Degree High School Degree Some College College Degree Advanced Degree +15,000 +48,000 +84,000 +119,000 +120,000 Financial Activities Less than High School Degree High School Degree Some College College Degree Advanced Degree Health Services Less than High School Degree High School Degree Some College College Degree Advanced Degree Information Less than High School Degree High School Degree Some College College Degree Advanced Degree Leisure and Hospitality Less than High School Degree High School Degree Some College College Degree Advanced Degree Manufacturing Less than High School Degree High School Degree Some College College Degree Advanced Degree +29,000 +192,000 +263,000 +261,000 +77,000 +186,000 +693,000 +1,062,000 +658,000 +378,000 +14,000 +62,000 +92,000 +93,000 +27,000 +647,000 +765,000 +685,000 +258,000 +47,000 +13,000 +38,000 +26,000 +17,000 +7,000 Projected Net Employment Change Mining Less than High School Degree High School Degree Some College College Degree Advanced Degree Other Services Less than High School Degree High School Degree Some College College Degree Advanced Degree Professional and Business Services Less than High School Degree High School Degree Some College College Degree Advanced Degree Total Government Less than High School Degree High School Degree Some College College Degree Advanced Degree Transportation Less than High School Degree High School Degree Some College College Degree Advanced Degree Wholesale and Retail Trade Less than High School Degree High School Degree Some College College Degree Advanced Degree +400 +1,100 +800 +300 +200 +91,000 +189,000 +159,000 +87,000 +52,000 +316,000 +743,000 +915,000 +975,000 +497,000 +63,000 +374,000 +488,000 +479,000 +398,000 +25,000 +99,000 +75,000 +35,000 +8,000 +115,000 +334,000 +285,000 +137,000 +27,000 Source: Authors' calculations using BLS Current Employment Statistics, Current Population Survey, and Moody's Analytics A National Picture of Short-Term Employment Growth by Skill Page A8 Exhibit A.5. Unemployment Rates by Age, Race/Ethnicity, and Skill Level, 2012 Unemployment Rate Unemployed (000s) All 18-25 26-35 36-45 46-55 56-65 Non-Hispanic, White 18-25 26-35 36-45 46-55 56-65 Non-Hispanic, Black 18-25 26-35 36-45 46-55 56-65 Hispanic 18-25 26-35 36-45 46-55 56-65 Other 18-25 26-35 36-45 46-55 56-65 All Less than High School High School Some College Bachelor's Degree Advanced Degree 8.5% 12,954 17.6% 2,369 10.9% 4,659 8.0% 3,677 5.0% 1,663 3.4% 587 15.2% 8.9% 7.2% 7.0% 6.2% 29.2% 18.2% 14.7% 15.0% 10.1% 21.0% 12.2% 9.4% 8.4% 6.6% 10.1% 9.3% 7.3% 6.5% 6.8% 7.8% 4.8% 4.2% 4.5% 5.5% 4.3% 2.9% 2.7% 3.7% 3.6% 12.2% 7.4% 5.9% 6.0% 5.6% 24.6% 20.9% 15.9% 13.2% 9.3% 18.3% 10.7% 8.7% 7.7% 6.1% 8.6% 8.4% 6.2% 6.1% 6.6% 6.7% 4.5% 3.4% 3.9% 5.0% 2.7% 2.1% 2.7% 3.3% 3.2% 24.9% 15.9% 11.2% 10.9% 7.1% 43.8% 38.2% 32.8% 18.6% 11.7% 34.3% 19.7% 13.9% 13.6% 5.6% 15.9% 14.8% 8.4% 9.0% 7.1% 9.4% 5.7% 9.1% 6.2% 9.0% * 7.8% 4.2% 9.0% 6.0% 17.1% 10.3% 9.8% 9.1% 8.9% 29.6% 14.6% 13.2% 15.3% 11.3% 18.6% 11.0% 9.5% 7.3% 10.2% 9.7% 6.4% 9.2% 5.2% 8.3% 11.5% 7.8% 6.0% 7.2% 2.9% * 5.2% 3.7% 2.0% * 16.2% 6.9% 5.5% 7.6% 8.0% 30.4% 10.9% 4.6% 16.4% * 21.7% 10.7% 4.6% 8.6% 8.6% 12.7% 12.6% 11.8% 7.5% 7.8% 9.9% 3.7% 4.7% 5.4% 9.0% * 2.3% 1.6% 4.7% 7.4% Source: Author's calculations from the February 2012 CPS. * indicates sample too small to report results (n<50) A National Picture of Short-Term Employment Growth by Skill Page A9 Exhibit A.6. State-Level Employment and Projected Employment by Skill-Level for Selected States US Alabama Arizona California Colorado Florida 2007 2011 2017 % Change 2007-2011 % Change 2011-2017 LTHS 15,511,099 14,518,772 16,278,686 -6.40% 12.12% HS 39,863,899 37,616,424 41,553,323 -5.64% 10.47% Some College 40,010,113 38,468,085 42,841,285 -3.85% 11.37% College 28,350,735 27,434,348 30,635,817 -3.23% 11.67% Advanced 14,148,688 13,947,072 15,600,211 -1.42% 11.85% LTHS 224,786 203,984 235,197 -9.25% 15.30% HS 590,372 540,036 609,695 -8.53% 12.90% Some College 576,835 538,761 613,130 -6.60% 13.80% College 411,657 388,128 442,913 -5.72% 14.12% Advanced 207,832 200,155 228,180 -3.69% 14.00% LTHS 308,909 263,986 320,002 -14.54% 21.22% HS 768,358 676,424 806,895 -11.96% 19.29% Some College 772,644 703,581 845,831 -8.94% 20.22% College 556,277 513,125 619,178 -7.76% 20.67% Advanced 274,673 261,883 316,840 -4.66% 20.99% LTHS 1,699,053 1,547,623 1,744,405 -8.91% 12.72% HS 4,315,344 3,962,545 4,394,492 -8.18% 10.90% Some College 4,363,173 4,092,686 4,564,222 -6.20% 11.52% College 3,206,565 3,036,712 3,394,837 -5.30% 11.79% Advanced 1,595,233 1,543,643 1,721,939 -3.23% 11.55% LTHS 271,935 253,154 291,050 -6.91% 14.97% HS 669,730 629,418 710,327 -6.02% 12.85% Some College 677,077 651,032 740,061 -3.85% 13.68% College 490,600 475,730 541,854 -3.03% 13.90% Advanced 239,121 239,306 273,057 0.08% 14.10% LTHS 938,651 832,017 983,377 -11.36% 18.19% HS 2,274,799 2,041,072 2,362,936 -10.27% 15.77% Some College 2,313,504 2,129,915 2,491,891 -7.94% 16.99% College 1,641,423 1,522,581 1,782,133 -7.24% 17.05% 794,309 757,262 888,326 -4.66% 17.31% Advanced Georgia LTHS 462,165 411,713 498,450 -10.92% 21.07% HS 1,196,269 1,078,041 1,270,450 -9.88% 17.85% Some College 1,194,636 1,099,759 1,298,205 -7.94% 18.04% College 866,221 805,040 950,019 -7.06% 18.01% Advanced 430,073 409,856 482,542 -4.70% 17.73% A National Picture of Short-Term Employment Growth by Skill Page A10 Hawaii Illinois Iowa Maine Massachusetts Michigan Minnesota LTHS 76,521 70,550 77,256 -7.80% 9.50% HS 177,649 165,302 179,835 -6.95% 8.79% Some College 180,883 172,283 188,504 -4.75% 9.42% College 126,876 123,326 135,568 -2.80% 9.93% Advanced 65,560 65,694 72,320 0.20% 10.09% LTHS 655,539 609,924 663,986 -6.96% 8.86% HS 1,715,231 1,606,003 1,722,663 -6.37% 7.26% Some College 1,728,658 1,646,077 1,775,236 -4.78% 7.85% College 1,260,972 1,207,577 1,304,388 -4.23% 8.02% Advanced 622,095 611,127 658,293 -1.76% 7.72% LTHS 167,161 160,261 175,550 -4.13% 9.54% HS 445,623 430,694 467,206 -3.35% 8.48% Some College 440,723 430,886 469,606 -2.23% 8.99% College 314,690 308,090 335,314 -2.10% 8.84% Advanced 156,537 155,244 168,366 -0.83% 8.45% LTHS 67,220 63,914 69,968 -4.92% 9.47% HS 176,158 167,168 180,532 -5.10% 7.99% Some College 181,297 174,887 191,094 -3.54% 9.27% College 128,597 124,393 135,962 -3.27% 9.30% Advanced 66,585 65,064 71,192 -2.28% 9.42% LTHS 347,108 337,309 366,407 -2.82% 8.63% HS 902,943 879,599 945,697 -2.59% 7.51% Some College 953,430 942,799 1,020,923 -1.12% 8.29% College 716,393 708,752 770,521 -1.07% 8.72% Advanced 369,909 369,993 401,937 0.02% 8.63% LTHS 470,195 425,160 464,091 -9.58% 9.16% HS 1,220,223 1,113,895 1,200,709 -8.71% 7.79% Some College 1,224,674 1,139,162 1,237,781 -6.98% 8.66% College 885,233 828,285 902,783 -6.43% 8.99% Advanced 446,150 424,879 464,165 -4.77% 9.25% LTHS 299,893 280,808 314,728 -6.36% 12.08% HS 792,188 750,555 834,604 -5.26% 11.20% Some College 806,017 779,234 870,922 -3.32% 11.77% College 582,001 567,359 631,655 -2.52% 11.33% Advanced 290,416 288,327 320,406 -0.72% 11.13% A National Picture of Short-Term Employment Growth by Skill Page A11 Missouri Montana Nevada New Hampshire New York North Carolina Ohio LTHS 311,765 286,613 313,645 -8.07% 9.43% HS 802,221 747,282 806,754 -6.85% 7.96% Some College 809,309 770,205 837,066 -4.83% 8.68% College 582,161 557,331 606,592 -4.27% 8.84% Advanced 291,216 283,620 309,444 -2.61% 9.11% LTHS 52,686 49,505 54,411 -6.04% 9.91% HS 129,536 123,394 134,399 -4.74% 8.92% Some College 130,345 126,922 139,039 -2.63% 9.55% College 89,185 87,797 95,998 -1.56% 9.34% Advanced 45,174 45,509 49,645 0.74% 9.09% LTHS 192,738 163,427 207,918 -15.21% 27.22% HS 388,459 329,933 406,224 -15.07% 23.12% Some College 370,222 324,549 396,819 -12.34% 22.27% College 235,528 208,398 252,486 -11.52% 21.16% Advanced 104,105 95,416 114,318 -8.35% 19.81% LTHS 71,526 69,473 77,790 -2.87% 11.97% HS 186,138 178,993 197,807 -3.84% 10.51% Some College 188,161 184,385 205,807 -2.01% 11.62% College 134,718 132,659 148,694 -1.53% 12.09% Advanced 67,847 68,115 76,463 0.39% 12.26% LTHS 875,338 859,930 960,640 -1.76% 11.71% HS 2,372,677 2,310,323 2,540,557 -2.63% 9.97% Some College 2,555,055 2,520,275 2,786,790 -1.36% 10.57% College 1,947,516 1,924,872 2,125,067 -1.16% 10.40% Advanced 1,024,065 1,030,105 1,138,195 0.59% 10.49% 471,962 427,707 488,069 -9.38% 14.11% HS 1,206,418 1,100,125 1,238,376 -8.81% 12.57% Some College LTHS 1,197,439 1,118,574 1,273,823 -6.59% 13.88% College 857,827 812,502 927,060 -5.28% 14.10% Advanced 432,322 417,830 477,959 -3.35% 14.39% LTHS 597,749 551,563 610,549 -7.73% 10.69% HS 1,567,636 1,453,565 1,586,129 -7.28% 9.12% Some College 1,570,052 1,487,103 1,628,481 -5.28% 9.51% College 1,125,391 1,071,434 1,174,486 -4.79% 9.62% 560,759 544,265 595,278 -2.94% 9.37% Advanced A National Picture of Short-Term Employment Growth by Skill Page A12 Pennsylvania Tennessee Virginia Washington Wisconsin LTHS 629,368 610,777 666,966 -2.95% 9.20% HS 1,653,075 1,604,677 1,743,346 -2.93% 8.64% Some College 1,688,046 1,659,325 1,819,762 -1.70% 9.67% College 1,218,467 1,199,964 1,320,186 -1.52% 10.02% Advanced 619,177 620,703 684,422 0.25% 10.27% LTHS 317,212 291,464 325,134 -8.12% 11.55% HS 824,316 763,279 836,401 -7.40% 9.58% Some College 811,649 769,078 850,497 -5.24% 10.59% College 571,504 548,320 608,109 -4.06% 10.90% Advanced 278,773 276,352 308,585 -0.87% 11.66% LTHS 414,764 391,458 444,341 -5.62% 13.51% HS 1,052,472 1,005,163 1,121,900 -4.50% 11.61% Some College 1,075,800 1,047,882 1,173,334 -2.60% 11.97% College 804,363 792,026 887,603 -1.53% 12.07% Advanced 416,685 419,665 467,679 0.72% 11.44% LTHS 331,066 305,237 348,982 -7.80% 14.33% HS 848,302 796,730 897,888 -6.08% 12.70% Some College 852,264 818,910 929,071 -3.91% 13.45% College 616,322 599,358 681,965 -2.75% 13.78% Advanced 309,551 307,301 350,703 -0.73% 14.12% LTHS 323,177 301,394 331,579 -6.74% 10.02% HS 849,834 797,532 865,041 -6.15% 8.46% Some College 833,694 796,670 868,805 -4.44% 9.05% College 589,342 566,095 616,888 -3.94% 8.97% Advanced 289,508 283,434 309,572 -2.10% 9.22% A National Picture of Short-Term Employment Growth by Skill Page A13