RESEARCHING REGIONAL WORKFORCE GAPS An overview and sample of the micro- and macro-level uses of demand-driven talent development ABOUT EMSI • EMSI provides employment data and economic analysis via web tools and customized consulting projects and reports. • We’ve produced more than 1,000 comprehensive impact analyses for colleges and universities. • Analyst, our labor market research tool, is used by more than 3,500 professionals in higher education, workforce, economic development and the private sector. • Career Coach, our career guidance tool, has been implemented by many colleges, universities, and workforce boards to help jobseekers and students. WHAT IS A REGIONAL EDUCATION SUPPLY GAP ANALYSIS? Education supply gap analyses assess the current postsecondary education talent supply based on education program completion, which is then compared to the demand for occupations that align to postsecondary programs. WHY USE A REGIONAL EDUCATION SUPPLY GAP ANALYSIS? Supply gap analyses can be used by various stakeholders for different purposes. For example: 1. Community Colleges and Universities may conduct a gap analysis to determine if programs are aligned to community and industry needs 2. Workforce Boards may use gap analyses to evaluate regional talent development across multiple institutions and seek to better align workforce development programs 3. State Departments of Education and/or Labor may use gap analyses for long-term planning, assessment, and targeting of talent development to support specific initiatives INSIGHTS ON OVERSUPPLY AND UNDERSUPPLY Oversupply (aka Surplus): may lead to higher attrition rates (i.e., brain drain). The region is educating a workforce that is leaving after program completion because of a lack of job opportunities. Undersupply (aka Gap): may lead to missed opportunities for economic growth and put stress on local businesses to find the necessary talent elsewhere. POTENTIAL POLICY OPTIONS Oversupply: 1. Education institutions can scale back potentially costly programs, due to excess workforce supply; 2. Economic developers and business developers have the opportunity to court businesses employing the types of occupations found in the oversupply of program completers. POTENTIAL POLICY OPTIONS Undersupply: 1. Education institutions can develop/market programs to increase enrollment in the desired programs/degrees; 2. When working with dislocated workers, workforce boards can target programs that align with “in-demand” occupations. STEPS TO COMPLETE AN ANALYSIS Define Region Select Target Occupations SOC-to-CIP Crosswalk Collect Occupation Data Education Completion • Determine geographic boundaries for region • Determine education institutions to measure within region • In-demand occupation • Occupations corresponding to postsecondary ed/training • Occupations aligning to specific initiatives (e.g., STEM) • Map occupations to education programs • For reference, see: www.xwalkcenter.org • Determine annual occupation demand (e.g., new and replacement jobs), or • Measure demand through some other format (e.g., historical/current job postings) • Collect education completion data • Compare to occupation demand SAMPLE OUTPUT: COLLEGE OF WESTERN IDAHO High Demand Programs CIP Title 52.0408 General Office Occupations and Clerical Services custom1 Marketing Management 49.0205 52.0401 52.1701 15.1202 Truck and Bus Driver/Commercial Vehicle Operation Administrative Assistant and Secretarial Science, General Insurance Computer Technology/Computer Systems Technology 2008 Grads 2009 Jobs 09-'19 Change % Change Annual Openings Median Hourly Wage ($) Gap/ Surplus $13.58 (674) $18.64 (454) 3 15,999 2,790 17% 677 14 12,185 1,971 16% 468 17 9,872 1,628 16% 329 $13.59 (312) 0 5,887 1,197 20% 213 $14.81 (213) 0 3,365 1,020 30% 169 $19.88 (169) 7 2,585 518 20% 128 $18.63 (121) Low Demand Programs 51.1613 Licensed Practical/Vocational Nurse Training (LPN, LVN, Cert, Dipl, AAS) 136 1,218 387 32% 72 $19.38 64 51.0601 Dental Assisting/Assistant 203 881 439 50% 59 $14.44 144 [1]This program did not have any approximate match among all CIP codes. EMSI created a custom program name and CIP code match. Sports Management Journalism Secondary Education (Science) Creative Writing Professional Writing Business Administration Management Information Systems Human Resources Early Childhood Education Business Administration Accounting SAMPLE OUTPUT: MULTI-STATE (OH, PA, NY) TARGET PROGRAM ASSESSMENT 6,000 Average Annual Openings 5,000 Average Annual Graduates and Completers 4,000 3,000 2,000 1,000 0 SAMPLE OUTPUT: NATIONAL ENERGY WORKFORCE OTHER METHODS • Stay tuned! EMSI is experimenting with other ways to measure skill gaps: • Growth of jobs and wages over time • Growth of KSAs over time • Considering job switchers and unemployed workers • Potential for shifting low-demand workers into high-demand positions FOR MORE INFORMATION Please refer to EMSI’s white paper: http://www.economicmodeling.com/2011/06/28/addressingregional-skill-gaps/ QUESTIONS If you would like further information or assistance in developing your own Education Supply Gap Analysis, please contact: Josh Wright jwright@economicmodeling.com