Midlands South Carolina Local Area Workforce Report 2013-2014 Midlands Local Area Workforce Report The Midlands Workforce Development Board (MWDB) serves employers and job seekers in Fairfield, Lexington and Richland counties. In 2012, the MWDB commissioned the Central Midlands Council of Government (CMCOG) to conduct an update to the Board’s 2009 Strategic Plan. This Workforce Report is one of the goals from the CMCOG’s update of the 2009 Plan. The CMCOG is the administrative agent for the MWDB and was required to prepare a Comprehensive Economic Development Strategy (CEDS) in 2012 as part of the CMCOG’s designation by the Economic Development Authority as an Economic Development District. At the time of this preparation of this Workforce Report, the CMCOG has published their 2012 – 2017 CEDS. In the interest of brevity, when data is from the 2012 CEDS, it will be referenced, but not reproduced in this document. The entire document may be viewed at: http://www.centralmidlands.org/pdf/CEDS_FINAL_Adopted_6-28-2012.pdf A detailed analysis of area high schools was requested by the Midlands Workforce Development Board’s Youth Council as part of the area’s strategic planning process. All information contained in this study was taken from the 2012 “School Report Cards” available on the SC Department of Education’s website. In this report the following areas are addressed: I. Area Labor Force II. Area Employers III. Analysis of Trends IV. Adult – Dislocated Worker Strategy V. Youth Strategy VI. Continuous Improvement Midlands Local Area Workforce Report 2013-2014 The Goals of this report are to inform the interested public and system stakeholders of labor market conditions in the three counties, to provide a common language for discussing the local labor market between Midlands’s education and workforce partners and to serve as a baseline for the allocation of program resources. I. Area Labor Force To better understand the potential for growth and to identify possible future challenges the Workforce Report will look at some selected characteristics of the local labor market. The US Bureau of Labor Statistics defines the labor force of an area as all of the residents who are employed or unemployed but seeking employment, at least 16 years of age and not institutionalized or serving in the military. The labor force for the local area was 293,365 with 3.1% unemployment rate in 2000. In 2010 the area’s labor force had grown to 323,378 with an unemployment rate of 9.2%. Table 1: Age Cohorts for Midlands – Ages 15 and Older Age Range 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85 and Older Midlands 51,768 56,932 49,090 43,974 45,326 44,771 47,845 45,911 40,530 34,464 23,884 16,705 12,965 9,055 8,872 Source: US Census/American Community Survey Midlands Local Area Workforce Report 2013-2014 The graph above shows that the Midlands area has a relatively young potential workforce when the median age (29.1 Midlands) is compared to the US (42.3) and SC (37.9). The relative youth of the area is partially accounted for by the presence of the University of South Carolina and other area educational institutions. Table 2: 2010 Educational Attainment for Population 25 and older County No High High Some Associates Bachelors Postwith at School School College Grad least Diploma Diploma Degree high school diploma 23.9% 41.1% 15.5% 5.8% 9.2% 4.5% 76.1% Fairfield 31.0% 21.1% 9.6% 17.0% 9.3% 88.0% Lexington 12.1% 23.7% 20.2% 8.4% 22.1% 14.4% 88.8% Richland 11.2% 15.4% 30.5% 20.7% 8.5% 15.7% 8.6% 83.9% SC with at least a four year degree 13.7% 26.3% 36.5% 24.3% Source: 2010 US Census Table 3: Area High School Graduation and Dropout Rates 2009 to 2012 High School (alphabetically by district) Fairfield Central Gilbert Lexington Pelion White Knoll Airport Brookland-Cayce Batesburg-Leesville Swansea Swansea Freshman Academy Chapin Dutch Fork Irmo AC Flora CA Johnson Columbia Dreher 2009 Graduate/Dropout 2010 Graduate/Dropout 2011 Graduate/Dropout 2012 Graduate/Dropout 73.0%/3.1% 81.3%/1.6% 84.8%/2.5% 72.8%/1.0% 77.3%/1.8% 61.7%/4.9% 75.1%/3.1% 72.4%/4.8% 66.1%/8.2% 61.9%/1.4% 81.5%/1.9% 85.3%/1.7% 70.3%/0.5% 76.3%/1.0% 60.5%/3.4% 67.4%/4.2% 73.8%/5.1% 66.1%/4.4% 76.9%/1.5% 81.0%/2.2% 85.6%/0.8% 79.6%/3.6% 84.0%/1.3% 69.8%/3.6% 71.9%/6.2% 78.7%/2.9% 69.7%/5.8% * * 61.9%/2.7% 81.5%/1.3% 85.3%/1.2% 70.3%/3.8% 76.3%1.5% 60.5%/0.4% 67.4%/1.4% 73.8%/6.4% 66.1%/4.8% * 92.8%/1.9% 85.2%/2.0% 80.2%/2.8% 83.2%/2.8% 50.4%/11.8% 64.7%/3.5% 81.7%/3.4% 92.9%/1.0% 87.5%/1.7% 82.4%/2.2% 66.6%/3.5% 48.8%/11.8% 62.4%/3.6% 79.7%/2.9% 92.9%/0.9% 87.5%/1.5% 82.4%/1.7% 66.6%/3.8% 48.8%/8.5% 62.4%/2.5% 79.7%/2.6% 92.7%/0.7% 87.4%/1.6% 83.0%/1.3% 73.2%/3.4% 52.6%/11.1% 72.0%/2.5% 79.7%/1.9% Midlands Local Area Workforce Report 2013-2014 NA/0.4 Eau Claire Lower Richland Pendergrass Fairwold Richland One Charter Middle College W J Keenan William S Hall Blythewood Richland Northeast Richland Two Charter High School Ridge View Spring Valley 69.4%/6.0% 76.7%/5.4% NA/0.0% 65.3%/6.5% 61.0%/6.8% NA/0.0% 65.3%/2.4% 61.0%/4.2% 0.0%/0.0% 65.8%/1.8% 64.6%/8.6% 0.0%/0.0% 74.1%/13.5% 86.4%/0.0% 86.4%/0.0% 87.1%/0.8% 69.2%/5.7% NA/0.0% 75.1%/3.3% 65.4%/5.0% 66.5%/4.5% NA/0.0% 82.6%/3.1% 56.0%/3.8% 66.5%/3.8% 0.0%/0.0% 82.6%/2.9% 56.0%/3.5% 74.7%/2.0% 0.0%/3.2% 83.0%/2.3% 70.5%/1.6% * * NA/NA 29.2%/0.0% 76.2%/2.3% 70.6%/1.3% 79.2%/1.9% 75.9%/2.7% 79.2%/1.3% 75.9%/2.6% 82.5%/1.7% 82.1%/0.8% Source: Annual School Report Cards - SC Department of Education The Area’s education picture is mixed. Richland and Lexington Counties both have higher percentages than the state of population 25 and older that have at least a high school diploma or a 4 year degree. Fairfield County is lower than the state average in both categories. The performance measures of our area High Schools including Fairfield Central High have generally show steady improvement in on-time graduations and in preventing dropouts. This trend mirrors the latest report of the Education and Economic Development Coordinating Council that South Carolina school’s were doing better at identifying students who were at risk for dropping out and making appropriate interventions. In the same report the Coordinating Council also noted that regardless of grade level or ethnicity, students have selected Heath Sciences, Science, Technology, Engineering and Mathematics and Audio-Video technology and Communication as their top three cluster choices since implementation of the EEDA in the 2007-2008 school year. During the 2011-2012 school year 50.14% of SC High School Seniors selected the three clusters. Midlands Local Area Workforce Report 2013-2014 Midlands Technical College, the first choice among many WIA participants provides certificates, diplomas and associates degrees in a number of areas that are in demand by the local labor market. Health Professions (CIP 51000) is by far the most popular program area accounting for 57.83% of all certificates and 69.37% of all diplomas awarded in 2011-2012. Health Professions further had the second highest number of associate degree awarded. Table 4: Midlands Technical College – 2011-2012 Fiscal Year Graduates Program CIP Certificate Computers and Information Sciences Engineering Technologies Family and Consumer Sciences Legal Studies Liberal Arts and Sciences Multidisciplinary Studies Science Technologies Homeland Security/Protective Services Public Administration Social Sciences Construction Trades Mechanic and Repair Technologies Precision Production Visual and Performing Arts Health Professions Business Management Totals 110000 150000 190000 220000 240000 300000 410000 430000 440000 450000 460000 470000 480000 500000 510000 520000 33 60 19 27 3 Source: SC Commission on Higher Education Midlands Local Area Workforce Report 2013-2014 Diploma 58 39 44 39 426 82 16 1 1 30 148 13 524 31 906 Associates 56 33 34 77 111 4 21 5 7 193 137 1,144 Table 5: PY 13 Monthly Unemployment (Number of Individuals by County) 20000 18000 16000 14000 12000 Fairfield 10000 Lexington 8000 Richland 6000 4000 2000 0 Source: SC Department of Employment and Workforce Table 6: Age of Workers in Midlands Midland Workers 14-18 19-21 22-24 25-34 35-44 45-54 55-64 65 + Source: US Census/SC Department of Employment and Workforce Midlands Local Area Workforce Report 2013-2014 Commuting Patterns 83.8% of the local Area’s workforce lives and works in the Local Area. Table 7: Top Ten Places Area Residents are Commuting To County Kershaw Newberry Sumter Orangeburg Aiken Mecklenburg NC Calhoun Charleston Greenville York Number 2,134 1,502 1,205 1,127 933 856 732 689 632 578 Source: US 2010 Census Table 8: Top Ten Places Area Residents are Commuting From County Kershaw Newberry Orangeburg Aiken Sumter Calhoun Saluda Greenville York Chester Number 10,375 4,525 2,861 2,740 2,531 2,297 2,200 775 663 628 Source: US 2010 Census The local workforce is stable with no foreseeable drastic increases or shortages of available labor. Midlands Local Area Workforce Report 2013-2014 II. Area Employers Table 9: Midlands Non-Government Employment by Accomodation and Food Services Industry Admin Support Arts Construction Finance and insurance Health Care Information Manufacturing Professional and Technical Svcs Other Services Real Estate Retail Transportation and Warehousing Wholesale Trade Source: SC Department of Employment and Workforce The area’s largest non-government employers in alphabetic order are Blue Cross Blue Shield of SC, Michelin of North America Inc., Palmetto GBA LLC, Palmetto Health, Sisters of Charity Providence Hospital, SMX LLC, United Parcel Services and Wal-Mart Associates Inc. The Impact of small business in the Midlands is substantial in terms of numbers of establishments. Out of 5,084 establishment in Midlands 70.04% have 9 employees are less and 92.99% have 49 employees or less. Government and education continue to represent large parts of the economy in Midlands employing 63,036 individuals. This places education as the 3rd largest employing sector and public administration as the 5th in the Midlands area. Midlands Local Area Workforce Report 2013-2014 III. Analysis of Trends Table 10: Midlands SC Projections (Growing Industries Only) Industry Wages $14,942 Projected Change 2010 to 2020 2,949 Annual Openings 1,154 Accommodation and Food Service Admin Support Construction Finance and Insurance Health Care Information Manufacturing Professional and Technical Services Other Services Retail Trade Transportation and Warehousing $28,600 $45,812 $61,360 3,385 3,129 1,492 1,889 426 537 $49,140 $56,264 $55,848 $72,228 11,457 146 1,689 3,747 1,367 286 1,086 367 $30,368 $25,272 $41,860 2,688 4,017 1,358 402 1,489 718 Source: SC Department of Employment and Workforce The US Department of Labor, Office of the Assistant Secretary for Employment and Training reports that the last recession which economic indicators reveal began in December 2007 ended in June 2009. The US Department of Commerce’s Bureau of Economic Analysis, reports that since January 2011, the state has recruited 23,000 manufacturing jobs and an accompanying $9 billion in capital investment to the state. South Carolina’s manufacturing gross domestic product which is the market value of final goods and services produced within a region grew at 8.5% in 2012 compared to 7.8% for the US. Overall the analysis released in June 2013, ranked South Carolina’s economy as the 12 th fastest growing in the nation and tied with North Carolina as the fastest growing on the east coast. An example of this growth locally is the August announcement by television maker, Element Electronics that they will open a facility in Winnsboro in the fall of 2013. The Midlands Local Area Workforce Report 2013-2014 facility is to be located in the old Perry Ellis building and hire 250 initially with the workforce growing quickly to 500. It is expected that this facility will boost existing area businesses as well as spurring the creation of spin-offs. In 2012, iTs│SC, a competiveness initiative of New Carolina released a report on the insurance technology sector of the area’s economy. This specialized sub-sector of the local economy makes substantial contributions to the local economy and has vast potential for growth. The report says that more than 12,000 local jobs are directly attributable to insurance technology and or services and pay wages more than twice the state average. In surveys conducted by iTs│SC for the report, many local employers reported their desire to bring insurance jobs back to the United States that are now offshored due to costs and quality concerns. The key to growth in this sector is improving the quantity of skilled workers available to employers. This represents a potential opportunity for the Midlands Workforce Development Board and education partners. In the Midlands the above chart shows that in terms of the number of annual openings in industry sectors that are growing, Health Care, Manufacturing, Administrative Support and Transportation and Warehousing, as well as Accommodation and Food Service, and Retail Trades are strong. As observed in past years the economy of the Midlands continues to be well balanced among several mature industrial sectors. Based on the ten year projections, several sectors also look promising for future growth as the recovery continues and spreads throughout the wider economy. The Central Midlands Council of Governments reports in the 2012 Building Permit Study for the Central Midlands Region that 3,637 housing permits were issued in 2012 for the Columbia Metro Area. The report which total new housing units approved for construction from 1975 shows that 2006 was the best year with over 8,875 permits issued in the Columbia Metro Area which comprises Richland and Lexington counties. This is a good indicator of potential housing market recovery. Midlands Local Area Workforce Report 2013-2014 IV. Adult - Dislocated Worker Strategy The Workforce Investment Act designates an Adult as an individual who is 18 years of age or older and is unemployed and seeking work but having difficulty finding work or is working but earning less than what is required to be self sufficient based on the Lower Living Standard Income Level (LLSIL) guidelines as published each year in the federal register. Dislocated Worker as an individual 18 years of age or older who has been laid off, or has received a notice of termination or layoff from employment; Is eligible for or has exhausted unemployment insurance; has demonstrated an appropriate attachment to the workforce, but not eligible for unemployment insurance and unlikely to return to a previous industry or occupation; has been terminated or laid off or received notification of termination or layoff from employment s a result of a permanent closure or substantial layoff; Is employed at a facility, where the employer has made the general announcement that the facility will close within a 180 days; was self-employed (including employment as a farmer, a rancher, or a fisherman) but is unemployed as a result of general economic conditions in the community or because of a natural disaster; or is a displaced homemaker who is no longer supported by another family member. The Workforce Investment Act is funded by program years that begin on July 1 and end June 30 of the following year. Each state and territory of the US is divided into Local Workforce Areas designated by the Governor of each state and territory in accordance with Section 116(a)3 of the Workforce Investment Act. Each Local Workforce Area has certain program performance measures that must be met during the program year in order for that Local Area to remain eligible to receive Workforce Investment Act funding. One performance measures for Midlands Adults in program year 2013 requires that the individuals who complete the program earn $10,769 for 6 months of average earnings. This means the successful completer will earn at least $10.36 an hour based on a standard 40 hour work week. The Midlands Program year 2013 earnings performance Midlands Local Area Workforce Report 2013-2014 measure for Dislocated Workers is at least $12,000 (or $11.53 an hour) for six months of earnings. In order to achieve performance and to make the best possible use of limited workforce investment act funding, the State Workforce Investment Board requires the Local Areas in South Carolina to select which industrial sectors of the local economy will be the target of their efforts in the coming year. In this Report the Midlands Workforce Development Board selects targeted industrial clusters and explains the criteria used to make the selection. Based on the information from Table 10 above regarding annual openings for growing industries in the Midlands and the earnings requirements of the Adult and Dislocated Worker performance measures, the recommendation for target industry clusters in the Midlands for 2013-2014 are Administrative Support to include certain IT jobs such as database administration and information support, Manufacturing, Transport and Logistics and Health Care. In addition to the data in this report, the selection of these targeted clusters continues the work of past program years. The Midlands Area has engaged in a multitude of training initiatives, both regional and sector-based, that have evolved in response to labor market demand. The critical need for skilled Maintenance Technicians in advanced manufacturing has been on the horizon for some years. With the size of the labor pool diminishing due to retirement, local businesses are fighting for the same candidates or are conducting exhaustive searches outside of the area. Recognizing this need, Midlands Technical College has been developing a two-track Maintenance Tech program with input from local manufacturing employers. This program is set to launch by fall 2013, and is anticipated to address this growing challenge for the sector. Midlands Local Area Workforce Report 2013-2014 In response to the growing need of specialized sub-sectors of the local economy such as insurance technology, the Midlands Workforce Development Board has aggressively sought out expanded partnerships. MWDB worked with Midlands Technical College in starting and expanding their Growing Resources for Information Technology (GRIT) program, designed to provide short term training to increase output of qualified IT job seekers in the local market. This project is expected to continue through at least June of 2014. Another crucial area is qualified commercial drivers under the transportation, distribution, and logistics cluster. In response to a projected shortage of drivers, the Midlands Workforce Development Board has partnered with the SC National Guard (SCNG) in an initiative known as SC Troops to Truckers (T2T). T2T assists veterans in obtaining a Class-A CDL coupled with employment in a professional driving position. The initiative is operated by the SCNG and provides veterans a no-cost, short-term training coupled combined with a mentoring component with the end result of selfsufficient employment in a demand field. These are just three of the initiatives to move the workforce of the Midlands towards employment and self sufficiency. The Midlands Workforce Development Board, partner agencies, and staff continue to be committed to working together for tomorrow’s workforce. In support of the SC WorkReady Communities initiative the Board sets a goal of assessing all Adult and Dislocated Worker participants in the three counties for the assessments which form the National Career Readiness Credential (NCRC). To be awarded the NCRC an individual must pass assessments in Applied Mathematics, Locating Information and Reading for Information. Of the Adults and Dislocated Workers assessed 2,500 will earn the NCRC. As the economy continues to recover and individuals who are long term unemployed begin to seek work again, the Midlands will be ready to assist with targeted workshops Midlands Local Area Workforce Report 2013-2014 available at all three of our locations. These workshops will focus on those skills which aid in re-employment such as resume writing, interview preparation and others. Staff will continue to seek new partners to facilitate workshops and to expand offerings. Centers will monitor attendance of workshops conducted and engage customers to ensure workshops offered meet demand. V. Youth Strategy The Midlands Workforce Development Board’s Youth Council provides services to youth under the Workforce Investment Act. The focus of the Youth Council for the coming program year is to: Develop a method to support front-line staff in the recruitment and program strategies for engaging the appropriate partners to establish strategies and tactics, and seamless agency relationships to identify and solicit (interest from) 17+ year old high school seniors "in school" "at-risk" youth for counseling and mentoring and individual and family support services to transition to the next phase of workforce development to include entry into post-secondary education, employment or military service. Develop a method to support front-line staff in the recruitment and program strategies for engaging the appropriate partners to establish strategies and tactics, and seamless agency relationships to identify and solicit (interest from) 17+ year out of school and "at-risk" youth for counseling and mentoring and individual and family support services to transition to the next phase of workforce development to include entry into post-secondary education, employment or military service. Two factors which the Youth Council have identified as critical to the understanding of what young people need in the Midlands is the consequences of teen pregnancy and the continuing problems of youth unemployment. The good news in South Carolina and the Midlands region is that the decline in teen pregnancy and high school drop-out rates continued. Teen pregnancy continued a decade plus decline and for the fourth straight year high school drop-out rates declined. Midlands Local Area Workforce Report 2013-2014 However much work remains to be done, the rates of both teen pregnancy and high school drop-out in South Carolina still exceeds the national rate. The National Campaign to Prevent Teen and Unplanned Pregnancy lists in a recent report the sobering facts. Nearly one third of girls who drop out of high school cite pregnancy as key reason, only 40 percent of teen moms finish high school and less than 2% of women who have a child before the age of 18 finish college by age 30. The recent recession has caused drastic declines in the number of 16-19 year olds who are employed. According to data from the Center for Labor Market Studies at Northeastern University, at 45%, 2000 was the best post World War Two year for youth employment. Employment for young people ages 16 to 19 declined to 36.8% in 2003 and then down to 35% in 2007. In 2012, which was the worst year for youth employment since the Second World War, just 26% of teens were working nationwide. During the same period, South Carolina ranked 43 rd among the States and District of Columbia with only 25.6% of teens working. Summer employment for teens was no better, down from 52% in 2000 to 30% nationwide in 2012. Unemployed teens tend to be African-American or Hispanic, and 4 out of 5 are from families earning less than $20,000 in pre-tax income, and after adjustments for normal population variation, are slightly more likely to be female. In proposing strategies to meet this year’s focus, the Youth Council will seek to link education to work, by identifying all work experience and training of WIA eligible youth by appropriate cluster. 75% of all eligible youth who are participating in work experience will be paired with an employer from one of the Midlands’ targeted industry clusters. 80% WIA eligible youth will be enrolled in training programs directly associated with one of the Midlands’ targeted industry clusters. The Youth Council will also work with youth service providers to ensure that African-American and Hispanic female teens are not left out of any WIA sponsored summer jobs program. Midlands Local Area Workforce Report 2013-2014 VI. Continuous Improvement Midlands Local Area Workforce Report 2013-2014