INSTRUCTIONAL GUIDE: LABOR MARKET ANALYSIS FOR PROGRAM PLANNING Kate Aitchison, Labor Market Analyst, MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) In cooperation with SYSTEM OFFICE – academic Programs UNIT, MINNESOTA STATE COLLEGES AND UNIVERSITIES SYSTEM (mnSCU) JUNE 2012 OVERVIEW This instructional guide supports a companion labor market analysis spreadsheet. The guide and spreadsheet were developed by the Department of Employment & Economic Development’s Labor Market Information office, in cooperation with MNSCU’s System Office, Academic Programs Unit. PURPOSE The purpose of the labor market analysis spreadsheet is to consolidate and present several data sources in support of academic program planning and approval decisions. Projected labor demand is considered when new workforce related academic programs are proposed. This instructional guide has been prepared to assist spreadsheet users. SPREADSHEET There are five worksheets within the Excel spreadsheet file, which coincide with each step listed in this document. At the top of each worksheet there is a goal listed, plus a method, with basic instructions. Working through the five worksheets will produce an occupationally- and regionally-specific labor market analysis. The Excel spreadsheet is updated twice a year and can be down load from a link on: http://www.programreview.project.mnscu.edu/ (Click on Labor Market Information.) PROCESS Using a Notice of Intent, labor market analyses are submitted as one of the first steps for a new program proposal. Program Navigator is the Web-based workflow software used to submit program applications. Programs that have demonstrated sufficient labor market demand are encouraged to submit a full program application. This Excel spreadsheet analysis should be saved, and attached to the Notice of Intent in Program Navigator. ASSISTANCE A staff directory is provided on the last page of this instructional guide. Questions and comments about this guide and program approval process can be directed to the MnSCU System Office, Academic Programs Unit. Technical questions can be directed to Kate Aitchison, DEED Labor Market Information office. 1 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us SET-UP For the spreadsheet to work, your Excel workbook must be Macro-enabled. A Macro is an automated task that is pre-programmed into the spreadsheet. You can either enable it by saving a local copy of the workbook, or by adjusting your security settings while viewing the workbook. When you first open the spreadsheet, you’ll probably see a security warning at the top of the screen like this: By clicking ‘Enable Content’ – you allow Macros to function in the workbook, and can proceed to work through the spreadsheet without saving. TO SAVE YOUR WORKBOOK IN A MACRO-ENABLED FORMAT (RECOMMENDED) 1. Open the Excel file. 2. In the upper left, click on File –> Save As, and select a name and location for your copy of the workbook. 3. Below the name field is the ‘save as type’ drop down menu. Select ‘Macro Enabled Workbook’ from the drop down menu. 4. Click Save. 5. When you reopen the workbook, your Macros will automatically be enabled. 2 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us STEP 1: CHOOSE YOUR SOC CODE(S) GOAL: SELECT ONE OR TWO SOC CODES AND ENTER THEM IN COLUMN E. METHOD: BROWSE CIPS AND/OR SOCS IN THE CROSSWALK TABLE (OR OTHER RESOURCE) TO SELECT THE APPROPRIATE SOC CODE(S). While programs are identified by their CIP code (Classification of Instructional Programs), occupational data is all organized by SOC code (Standard Occupational Classification) system. You must select one or two SOC codes that represent the type of occupational outcomes your new program will have. Our spreadsheet is equipped with a CIP/SOC crosswalk. The CIP code you choose for your program should correspond with the desired SOC code. If your program trains students for a new or emerging occupation, it may help to select two SOC codes to define the field. When selecting two SOC codes, make sure at least one is directly related to the designated CIP for your program. Note: If you do NOT know either your CIP code or SOC code, use links at the top of the spreadsheet (Step 1), use resources on Page 5-6, or contact MnSCU System Office, Academic Programs Unit for assistance. IF YOU KNOW YOUR CIP CODE 1. Select your CIP code from the list in Column A. You have two options for browsing (sorting or text filtering) but must ultimately select CIP code(s) and name(s). In the column heading, click a dropdown arrow and: Sort the values, or Select Text Filters and enter information to narrow your search. Scroll through the list of values and check ones that are of interest. Note: Additional help with Excel can be found at Microsoft Office Excel Help online, keyword ‘filter’: http://office.microsoft.com/enus/excel-help/. 2. Once you select your CIP code from the Column A list, the crosswalk will automatically display corresponding SOC codes in Columns C and D (see example below). 3 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us 3. Choose the SOC code(s) from Column D that best matches your program. You can also refilter the list if you feel that a second SOC code is needed to analyze your program. 4. Type your selected SOC codes into the boxes. Example: First part of CIP code is known You want to start a new program at your institution based on your Forestry program, to train people to work in an Environmental Testing lab for the US Forest Service. You know that Forestry programs are in the 03.05*** CIP codes. You can either a) apply a ‘begins with’ filter using 03.05, or b) scroll through Column A to find the Forestry section of the crosswalk. It lists all the Forestry CIP codes, and their related SOC codes in Column C. You see a SOC that looks like a close match, ‘Forest & Conservation Technicians’, SOC 19-4093. That number gets entered in cell E3. BUT, if you were hoping to develop a program with more laboratory focus, you would want to find another occupation that better covers those skills in cell E5. If the secondary occupation does not show up in the existing crosswalk, either select a new CIP, or explore the resources on the next two pages to identify a new CIP or SOC code. 4 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us If you don’t know your CIP code: The CIP User Site, http://nces.ed.gov/ipeds/cipcode/ provides tools to help you locate the best CIP code for your program. Their help section, http://nces.ed.gov/ipeds/cipcode/help/01_gettingstarted.aspx?y=55, can guide you to the tool that will be the most helpful. Further questions about CIP code selection can be directed to Academic Program staff members (see directory). Once you’ve selected your CIP code, return to the instructions. . 5 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us If you don’t know your SOC code: There are great online tools to help you explore and research SOC codes: BLS.gov: http://www.bls.gov/soc/: Keyword search of SOC definitions. Results provide a short description and SOC code. O*NET Code Connector: http://www.onetcodeconnector.org/ : Search by keyword search or job families. **Note: O*NET codes are 8-digit codes that correspond closely with 6-digit SOC codes. To use the O*NET code (format: XX-XXXX.XX) for this analysis, simply drop the last two digits after the period. Once you know your SOC code, return to the instructions. 6 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us STEP 2: CHOOSE YOUR REGION(S) GOAL: SELECT ONE OR TWO GEOGRAPHIC AREAS AND ENTER THEM INTO COLUMN E USING THE DROP DOWN MENU. METHOD: REFERENCING THE MAP PROVIDED, SELECT THE REGION, GROUP OF REGIONS OR ENTIRE STATE TO DESCRIBE YOUR SERVICE AREA. Select the Step 2 tab at the bottom of the spreadsheet. Step 2 can be customized in a number of ways, and should reflect your student recruitment area and the extent to which your graduates will spread across the state for their job hunt. Even if your program has a statewide reach you should still include data for your immediate economic development or planning region as well. 1. Select your region(s) from the options provided in the map. A ‘region’ is a grouping of counties. You have multiple options: o Choose an Economic Development Region (EDR) - smallest geography available o Choose a Planning Region - larger areas, usually made up of two or more EDRs o Choose a Metropolitan Statistical Area (MSA) – common metro areas other states and is typically based on counties. It will overlap with the Planning/EDR regions. o Choose the entire state o Choose a combination the above Use the map on to help you select the best region for your analysis. Clicking on the map will open a larger version in your web browser. 2. Once you’ve selected your region(s), use the drop down menu in cell 3E and 5E to enter the name of the region(s). 7 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us DEFINING YOUR SERVICE AREA Map can be found online at: http://www.programreview.project.mnscu.edu/vertical/Sites/%7B4744D4A75367-4707-B22E-6F4EDB73FFFF%7D/uploads/%7BDB5BD75C-EB90-4E1C-81C8-68F9E61FEB46%7D.PDF The Planning Regions are made up of the following Economic Development Regions (EDRs) o o o Northwest: EDR 1, 2, 4, 5 Northeast: EDR 3 Central : EDR 7E, 7W, 6E 8 Labor Market Analysis for Program Planning o o o Southwest: EDR 6W, 8, 9 Southeast: EDR 10 Metro: EDR 11 kate.aitchison@state.mn.us STEP 3A: PULL THE DATA GOAL: CREATE REPORT. METHOD: PRESS CONTROL + E TO VIEW RESULTS. Select the Step 3 tab at the bottom of the spreadsheet. Now that you’ve entered your SOC code(s) and Region(s), you can automatically filter your results by pressing: CTRL + e Troubleshooting: If the results displayed do not match what you were initially looking for, return to Steps 1 and 2 to verify your SOC code(s) or region code(s). If needed, changes can be made to these codes, and then the Step 3 filter be re-run by pressing CTRL + e. If you’d like to view the 26,000+ unfiltered results, find the Data tab at the top of the screen, and the ‘clear filter’ icon on the toolbar. Click ‘Clear’ to view all of the unfiltered records. 9 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us STEP 3B: INTERPRETING YOUR RESULTS After using the CONTROL + e command you’ll see a filtered list of results based on your input of SOC code(s) and region(s). In Steps 1 & 2 you chose one or two occupations, and one or two regions. For each SOC/region combination you selected, you will see a row of results. If you chose 2 SOC codes, and 2 regions to analyze, you’ll see four rows of data displayed. Hovering over the column titles (cells 6D-6L) provides you with a short explanation of the data shown. See the table below for more information about the data displayed. 10 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us COLUMN HEADINGS For results in step 3, columns of data provide the following information: Column Heading Interpretation Column A – Region(s) This column will list the region(s) selected in Step 2. Column B/C – SOC Code(s) & Job Title(s) This column will list the SOC code(s) and job title(s) of the occupation(s) selected in Step 1. Column D – Occupations in Demand (OID) This column will display the regional demand for the selected occupation(s) based on: relative employment size, the number of job openings, the projected future growth of the occupation, seasonality, and the rate of unemployment among people in this position. A zero to five star rating will be displayed. Occupations that show no OID ranking did not have enough information to be ranked (usually because the occupation is too small or new). It answers the question: How strong is the demand for this occupation in my region? Column E – Employment This shows how many people are employed in this specific occupation within the selected region. In the example, we can see that Region 5 employs 40 Surgical Technologists. This is an estimate based on our Occupational Employment Statistics survey. To calculate the share of employment of a given occupation, divide it by the total regional employment found in the Benchmarks table. It answers the question: How many people are working in this occupation in my region? Column F/G – Starting Wage and Salary Column H – Annual Projected Openings 11 This is based on the 25th percentile of all wages for the occupation, a good benchmark for ‘starting’ wage offers in a position, calculated hourly and annually. It answers the question: How much could a jobseeker expect to be paid in a starting position in this occupation? This number is based on 10 year employment projections, broken down into annual job growth. It answers the question: How many openings in this field can I expect to see in a year? Labor Market Analysis for Program Planning kate.aitchison@state.mn.us Column Heading Column I – Typical Education Needed for Entry Column J – Work Experience in a Related Occupation Column K – Typical On the Job Training Needed to Attain Competency Column L – Transferable Skills Interpretation Explains the typical level of training associated with the selected SOC code. It answers the question: What level of education should someone have in order to work in this occupation? Explains the average amount of work experience needed for the selected SOC code, in lieu of a certain educational requirement. This is typically associated with managerial and supervisory positions. It answers the question: What amount of experience should someone have to work in this occupation? Explains the typical level needed once someone is employed in a job. It is occupation specific, not job specific. It answers the question: What amount of on-the-job training is normal for this occupation? Utilizes the ‘My Skills My Future’ tool to see how the selected occupation matches with other occupations. A Yes/No answer indicates whether or not there are any occupations that have a 75% skill match with the selected occupation. It answers the question: Are there any other occupations that need skills similar to my current occupation? Column M-O – Example Occupations with Matching Skills 12 These are the three closest skill matches to the selected occupation. They may or may not be within a 75% match (see ‘Transferable Skills’ field). It answers the question: What other occupations need similar skills to my current occupation? Labor Market Analysis for Program Planning kate.aitchison@state.mn.us Benchmarks: The grey box below the results of your search can provide benchmark data about the regions and state following the same measures listed above. Each region displays data for ALL OCCUPATIONS. You can use this Benchmarks table to compare your region and occupation to other areas of the state, answering questions like: Does the occupation make more or less than the average regional wage? Is the proposed occupation a significant portion of the local economy? Will the proposed occupation make up a significant share of projected future jobs? 13 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us STEP 4: OTHER CONSIDERATIONS GOAL: PLEASE CONSIDER THE QUESTIONS BELOW. PROVIDE YOUR ANSWER IN COLUMN B. METHOD: USE THE PROVIDED LINKS TO ANSWER THE FOLLOWING QUESTIONS. Use step 4 to help enrich your analysis, and provide further examples of how the proposed program is meeting workforce needs. Enter summaries of your findings into the spreadsheet. 1. Identify job openings that indicate this program is warranted. Go online (or to your newspaper, etc.) and copy a relevant job posting that a graduate of your program could qualify for. You can address the demand for training programs, certifications, work experience that your program will provide to jobseekers. RESOURCES - OPENINGS http://www.MinnesotaWorks.net/ http://www.indeed.com/ http://www.monster.com/ Other online resources include: industry job boards, newspaper job listings, free posting sites (like Craigslist), and association job boards (MN Council of NonProfits, etc.). If you can’t find a job with the SOC job title you’ve selected, browse the Lay Job Titles database to find other keywords to use in your search: http://www.bls.gov/soc/soc_2010_direct_match_title_file.pdf 2. Identify opportunities for career advancement. This field allows you talk about the ways the program could be used to springboard someone onto another career. You can address the career ladder for this position, especially if it initially garners a lower wage. You could also use the opportunity to talk about the transferable skills taught in the program, and how it might lead someone onto a career in a different field. RESOURCES - CAREERS CareerOneStop Sample Career Ladders (retail, construction, hospitality, IT, long-term healthcare, advanced manufacturing, energy, financial services): http://www.careeronestop.org/competencymodel/careerpathway/cpwreviewsamplepaths .aspx Saginaw Valley Career Ladders database (IT, construction, processing occupations, healthcare occupations, advanced manufacturing): http://www.saginet.org/education/components/scrapbook/default.php?sectiondetailid=92 ISEEK Green Career Paths: http://www.iseek.org/industry/green/careers/greenpathways.html Career and Technical Education (CTE) Career Pathways: http://www.cte.mnscu.edu/consortia_resources/documents/POS_ColorHighRes.pdf 14 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us STEP 5: CONCLUSIONS & FINAL STEPS GOAL: PREPARE A SUMMARY USING FINDINGS FROM STEPS 3 AND 4. METHOD: ENTER YOUR CONCLUSIONS IN THE TEXT BOX BELOW. This is a spot to pull together what you’ve learned from the spreadsheet, and highlight the strengths of your proposed program. Incorporate the LMI data produced in Step 3, comparisons to regional benchmarks (also Step 3), and results from the online research in Step 4. Other separate resources can also be included in the write up. This is also a space where you can address any limitations of the process. For example, if you are proposing a career that is a combination of two occupations, the data may not fully capture the demand for this new career. Articulating those limitations shows that you’ve made the best effort to provide as relevant an analysis as is possible. 1. Type your analysis into the text box. 2. Save your workbook and attach it to your Notice of Intent (online) through Program Navigator. 3. Print your workbook to keep for your own records and future program planning. 15 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us SUPPORT DEED (Department of Employment & Economic Development) Kate Aitchison, Research Analyst, labor market assistance Kate.aitchison@so.mnscu.edu (651) 259-7416 Labor Market Information Helpline Staffed by Research Analysts: Mon-Fri, 9am - 3pm deed.lmi@state.mn.us 1-888-234-1114 or (651) 259-7384 MnSCU Academic Programs Ron Dreyer, System Director for Academic Programs Ron.Dreyer@so.mnscu.edu (651) 201-1684 Tamara Arnott, Academic Programs Director Tamara.Arnott@so.mnscu.edu (651) 201-1685 Marta Mohr, Academic Programs Director Marta.Mohr@so.mnscu.edu (651) 201-1683 16 Labor Market Analysis for Program Planning kate.aitchison@state.mn.us