Know Your Labor Market Suitability & Demographics Attributes Brian Corde Bradley Migdal

Transcription

1 Know Your Labor Market Suitability & Demographics Attributes Brian Corde Bradley Migdal

2 Why is labor so important? The labor participation rate has been steadily decreasing since it s peak in 2000.

3 Why is labor so important? The workforce is growing, but not nearly at a healthy enough pace to keep up with demand. US Labor Force (Actual vs. Projected) Labor Force (Actual) Labor Force (Proj)

4 - Worker Shortages About 76 million people were born during the baby boomer years Only 46 million people were born during the Generation X years, meaning there is a significant labor gap once the baby boomers retire By the year 2030, all baby boomers will be aged 65 or older and will likely be out of the workforce for the most part Changing technologies have made many previously defined good jobs obsolete, and this trend will continue with robotics and other technology advances Education has not kept up with workplace demands, and therefore there are many skill shortages despite the fact that there are many unemployed and unemployed individuals

5 - Labor s role in site selection Labor related concerns sits atop most lists of site selection concerns and is likely to continue to do so In Area Development s 2016 Corporate Survey, Availability of Skilled Labor and Labor Costs ranked 2nd and 3rd respectively, and the ranking has been climbing Nearly every type of facility search will have a detailed labor component, not just about the unemployment rate Conveying accurate and meaningful workforce data is among most challenging and critical roles of ED professionals Providing good data that is relevant to the specific requirement at hand can be a major differentiator Data which is out-of-date and lacking substance will reflect poorly on the Economic Development organization

6 - Basic data required: Workforce Demographics & Educational Attainment Labor force and Population growth Unemployment and Changes in unemployment Graduation rates High school and post-high school Crime Cost of Housing Labor Costs Competitors Market saturation Turnover Numbers and Depth of Key Occupations (Location Quotient) Commuting Patterns and Drive Times Training Resources & Pipeline Creation

7 - Workforce Demographics & Educational Attainment;

8 - Recent Trends and Forecasts

9 - Labor Cost Data

10 Wage Trends

11 Hard Numbers and Location Quotient by Industry

12 Candidates by Location

13 Related Occupation Availability

14 - Where Can Data Be Found? Zero or Low Cost BLS Census Local staffing firms Subscription or Pay as You Use Fees EMSI Chmura Jobs EQ ESRI Statebook International (provides some data at no cost)

15 Common RFP Response Mistakes Don t compare to state averages or the US as a whole Most of the time, we are not looking at the whole state or the entire country There is also a good chance there is a non-us option Making blanket comparisons with historical data. Better to focus on recent trends. The labor force of today is not the same as the labor force from 5-years ago Avoid generalities in descriptions (fastest growing, most affordable, thriving, dynamic, etc.) Based upon recent projects there are at least 100 fastest growing community college systems in the U.S. Don t tie your perceived value to recent surveys or lists Best demonstrated by recent wins and expansions

16 Suggestions Instead of comparing to state averages or the US as a whole, compare your market to; Others of similar size Communities where your key employers also have operations Cities with similar Transportation Infrastructure (or lack thereof) Regions that are targeting similar industry clusters Share how your labor force has changed and how existing industry is benefiting Predictive analytics Where is your market headed?

17 Leveraging Local Insights Outside of labor indices and federal data there is a need for data interpretation and local insight into the data. As the labor components have evolved for each company the types of data points required has also evolved. Common questions now include: What % of your workforce leaves the market? What % come from adjacent regions? How many students leave the city upon graduation? How long does it take them to return? How do you keep track of departing students? What is the true commuting area that current employers draw from and how does that compare to your commonly defined region? Are average wages really reflecting what your current employers are hiring for right now? Are current educational attainment rates reflecting those of the working age population?

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19 What is changing? Concern growing over replacing existing skilled labor as boomers leave workforce and capital intensive manufacturing limits creation of new jobs in significant quantities. Contract labor As businesses require greater labor flexibility and cost reductions, companies are increasing their use of contract labor. Do you know how many 3 rd party contracting firms are in your market and supporting other businesses? Do you know if they are having success or difficulty attracting various types and levels talent to your market? Education and training Do you have programs which involve; Education and skill development before and during high school University and community college partnerships with local employers

20 Thank You! Brian Corde Partner Brad Migdal Senior Managing Director Business Incentives Practice