The Greening of Louisiana s Economy Summary of Survey Results

Transcription

1 The Greening of Louisiana s Economy Summary of Survey Results Louisiana Workforce Commission September 2011

2 In 2009, Louisiana and Mississippi partnered to research economic development opportunities and workforce needs associated with the region s green economy. Through a $2.3 million grant from the U.S. Department of Labor, a consortium of the Louisiana Workforce Commission, Louisiana State University, Mississippi Department of Employment Security, and Mississippi State University conducted an extensive study of economic activity that is beneficial to the environment. This and other research products were developed as part of that effort. This workforce solution was funded by a grant awarded by the U.S. Department of Labor s Employment and Training Administration. The solution was created by the grantee and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This solution is copyrighted by the institution that created it. Internal use by an organization and/or personal use by an individual for non-commercial purposes is permissible. All other uses require the prior authorization of the copyright owner.

3 Summary of Survey Results List of Tables and Figures...ii Executive Summary... iii Introduction...iv Methodology...1 Current Primary and Support Green Employment...3 Green Jobs and the Gulf Oil Spill...14 Primary Green Job Vacancies...15 Occupational Training Requirements...16 Business Practices...18 Conclusion...22 Appendix A: Methodological Detail...23 Appendix B: Survey Instrument...25 Notes...29 Contents On the cover: man installing alternative energy photovoltaic solar panels on roof. Photo depositphotos.com/elena Elisseeva i

4 The Greening of Louisiana s Economy List of Tables and Figures Table 1: Louisiana s Primary Green Jobs by Activity Category... 7 Table 2: Louisiana s Primary Green Jobs as a Share of Regional Employment...10 Table 3: Louisiana s Primary Green Jobs by Industry (NAICS) Sector...12 Table 4: Louisiana s Primary Green Jobs by Occupational (SOC) Group...14 Table 5: Louisiana s Most Common Primary Green Job Occupational Titles...15 Table 6: Support vs. Primary Green Jobs by Industry (NAICS) Sector...16 Table 7: Louisiana s Primary Green Job Vacancies by Region...18 Table 8: Requirements for Workers with Primary Green Jobs by Activity Category...19 Table 9: Requirements for Workers with Primary Green Jobs by Industry (NAICS) Sector...20 Figure 1: Louisiana s Primary Green Jobs by Activity Category...7 Figure 2: Louisiana s Regional Labor Market Areas and Employment...8 Figure 3: Louisiana s Primary Green Jobs by Regional Labor Market Area...9 Figure 4: Top Ten Industry Sectors by Number of Primary Green Jobs...11 Figure 5: Support vs. Primary Green Jobs as a Percent of Industry (NAICS) Sector Employment...17 Figure 6: Utilization of Green Practices, Services and Products by Primary Green Jobs...21 ii

5 Summary of Survey Results The Louisiana Green Jobs Survey, conducted during the fourth quarter of 2010, is the first of its kind in the state and aims to establish a baseline measure of green employment. The survey sought to capture the gradual greening of the economy by measuring primary and support green jobs. Primary green jobs are those with a primary job function in one of seven green activity categories: Renewable Energy; Energy Efficiency; Greenhouse Gas Reduction; Pollution Prevention and Clean-up; Recycling and Waste Reduction; Sustainable Agriculture, Natural Resource Conservation and Coastal Restoration; and Education, Compliance, Public Awareness and Training Supporting the Other Categories. Support green jobs are those essential to an organization s involvement in a green activity category, but do not require more than 50 percent of an employee s effort. Additional detail was collected for primary green jobs and estimates are presented by green activity category; region, defined by Regional Labor Market Area (RLMA); industry sector, according to the North American Industry Classification System (NAICS); and occupation group, according to the Standard Occupational Classification System (SOC). Some key findings were: There were an estimated 30,205 primary green jobs in Louisiana in the fourth quarter of 2010, which represents 1.6 percent of Louisiana s employment. In addition to those primary green jobs, there were 67,591 support positions. Including primary and support green jobs, employment associated with the seven activity categories totals 97,796, which is 5.3 percent of Louisiana s employment. The Recycling and Waste Reduction activity category comprised the largest share of primary green jobs, 31.5 percent. It was followed by Pollution Reduction and Clean-up with 23.1 percent and Sustainable Agriculture, Natural Resource Conservation and Coastal Restoration with 14.9 percent of Louisiana s primary green jobs. Executive Summary The Baton Rouge RLMA had the largest number of primary green jobs with 8,411. When compared to regional employment, the Baton Rouge and Lafayette RLMAs had the highest percent of primary green employment each with 2.1 percent. The NAICS industry sector with the greatest number of primary green jobs was Administrative and Support and Waste Management and Remediation Services with 4,992. Construction had the second greatest with 3,646. Agriculture, Forestry, Fishing and Hunting had the highest percent of primary green jobs as a share of industry sector employment with 14.1 percent followed by Administrative and Support and Waste Management and Remediation Services with 5.5 percent. Of the SOC occupational groups, Construction and Extraction accounted for the greatest number of primary green jobs with 6,333, followed by Management with 3,639. When compared to the overall number of workers in the occupational group, three groups had primary green employment greater than 5 percent: Farming, Fishing and Forestry with 43.3 percent; Life, Physical and Social Science with 11.8 percent; and Construction and Extraction with 5.3 percent. iii

6 The Greening of Louisiana s Economy Introduction The greening of the economy can be seen throughout the state of Louisiana. It encompasses an evolution of economic activity, workforce needs and business initiatives. Given the recent interest in and anticipated growth of the green economy, ongoing state labor market information (LMI) initiatives needed to be augmented to appropriately gauge the impact and identify the needs of the green economy. The U.S. Department of Labor s Employment and Training Administration encouraged research on the greening of the economy through LMI Improvement Grants funded through the American Recovery and Reinvestment Act (ARRA). The Louisiana Green Jobs Survey was made possible by this funding and was conducted by a consortium including the Louisiana Workforce Commission, Mississippi s Department of Employment Security, Louisiana State University and Mississippi State University. Additional input was sought from the state Workforce Investment Boards; university and technical college systems; numerous state agencies; industry groups; trade associations; employers; and environmental advocacy groups. The Louisiana Green Jobs Survey was conducted with the following objectives: to estimate the current number of primary green jobs and primary green job vacancies; to identify the occupations, skills and training needed in the greening labor market; and to measure additional involvement in green activity including business practices and support green jobs for all businesses regardless of whether or not primary green jobs were reported. Since this was the first survey of its kind conducted in Louisiana, it establishes a benchmark from which future green employment can be projected and against which future measures of green jobs can be compared. Researchers and policy makers can utilize this benchmark to guide future labor market research and data collection and to make informed investment decisions affecting education and workforce development. Since a commonly accepted definition of green jobs has yet to be established, the survey attempts to clearly define what is meant by green jobs and green activities in order to create an objective basis for inclusion of primary green jobs in the final tally. An accurate interpretation of the results and application of them as a benchmark rely on a thorough understanding of this definition. iv

7 Summary of Survey Results Methodology Green Jobs Defined Primary green jobs are defined as those having a primary job function, i.e. a function consuming more than 50 percent of the employee s time, in one of seven green activity categories: Renewable Energy; Energy Efficiency; Greenhouse Gas Reduction; Pollution Reduction and Clean-up; Recycling and Waste Reduction; Sustainable Agriculture, Natural Resource Conservation and Coastal Restoration; and Education, Compliance, Public Awareness and Training Supporting the Other Categories. Each activity category includes: the research, development, production and distribution of a final good or service; the supply of unique parts or inputs to a final good or service; and production processes and business practices regardless of the final good or service produced. The seven categories are defined as follows: 1. The Renewable Energy category includes the research, development, production, storage and distribution of energy that comes from natural and sustainable resources that can be naturally regenerated in a relatively short time period. 2. The Energy Efficiency category includes the research, development and implementation of technologies and practices that use less energy to provide the same level of energy service. 3. The Greenhouse Gas Reduction category includes the research, development and implementation of technologies and practices to reduce greenhouse gas emissions through approaches other than renewable energy generation and energy conservation, including nuclear energy. 4. The Pollution Prevention and Clean-up category includes research, development and implementation of technologies and practices to minimize or prevent the adverse impacts of pollution on the natural environment and human health. 5. The Recycling and Waste Reduction category includes the research, development and implementation of technologies and practices to collect and recycle materials and waste water. 6. The Sustainable Agriculture, Natural Resource Conservation and Coastal Restoration category includes the research, development and implementation of technologies and practices to reduce the environmental impact of agriculture production, improve natural resource conservation, and restore the coast. 7. The Education, Compliance, Public Awareness and Training Supporting the Other Categories category includes: providing training in the application of technologies and practices; activities to develop and enforce environmental regulations; and increasing public awareness of environmental issues. Support green jobs are those essential to an organization s involvement in one of the activity categories, but not requiring more than 50 percent of an employee s effort. Survey Sample and Response The data presented here are based on a survey conducted during the fourth quarter of The survey sample included 12,882 unique Louisiana business establishments drawn from the Quarterly Census of Employment and Wages (QCEW) database. The QCEW contains 1

8 The Greening of Louisiana s Economy data on all private businesses subject to the state s unemployment insurance tax laws as well as data for federal, state and local government agencies in the state. All establishments in Louisiana with 250 or more employees were included in the sample. The remainder of the sample was selected with replacement using Probability Proportional to Size (PPS) sampling. i Before sampling, the establishments were stratified according to region and industry. Stratification by region was done according to the Regional Labor Market Areas (RLMAs): New Orleans; Baton Rouge; Houma; Lafayette; Lake Charles; Shreveport; Alexandria; and Monroe. Stratification by industry was done according to the establishments assigned North American Industry Classification System (NAICS) codes provided in the QCEW data. Then establishments from each stratum were sampled with probability equal to their share of employment within the stratum. This sampling technique favors large establishments within strata, but assures establishments from every stratum are included regardless of the stratum s size. Surveys were distributed first by mail and could be returned by mail or fax or completed on the web. For those not responding during the response window, the next round of surveying was done by phone. The raw response rate, considering all survey modes, was 40.2 percent. After accounting for establishments that were not eligible, the response rate was 50.8 percent. The cooperation rate was 58.3 percent. Weighting and Estimation Survey responses were vetted, and reported primary green jobs clearly falling outside of the definition were not included in the estimate. Establishments were assigned weights equal to the inverse of the probability that they were included in the sample. For a more detailed account of the methodology, see Appendix A. Current Primary and Support Green Employment Analysis of the responses from The Louisiana Green Jobs Survey reveals an estimated 30,205 primary green jobs in the state during the fourth quarter of 2010, which accounted for 1.6 percent of the state s employment at that time. In addition to those primary green jobs, there were 67,591 support positions. Including primary and support green jobs, employment associated with the seven activity categories totals 97,796, which is 5.3 percent of Louisiana s employment. Primary Green Jobs by Green Activity Category In Table 1, primary green jobs are reported by activity category. Two of the categories, Recycling and Waste Reduction and Pollution Reduction and Clean-up, accounted for more than 50 percent of the primary green jobs in Louisiana with 31.5 and 23.1 percent respectively. Three additional categories each accounted for more than 10 percent of the state s primary green jobs: Sustainable Agriculture, Natural Resource Conservation and Coastal Restoration with 14.9 percent; Education, Compliance, Public Awareness and Training Supporting the Other Categories with 14.3 percent; and Energy Efficiency with 13.3 percent. The remaining categories, Renewable Energy and Greenhouse Gas Reduction, comprised 1.9 percent and 1.0 percent of Louisiana s primary green jobs respectively. 2

9 Summary of Survey Results Louisiana s Primary Green Jobs by Activity Category Activity Category Primary Green Jobs Percent of Total Renewable Energy Energy Efficiency 4, Greenhouse Gas Reduction Table 1 Pollution Reduction and Clean-up 6, Recycling and Waste Reduction 9, Sustainable Agriculture, Natural Resource Conservation and Coastal Restoration 4, Education, Compliance, Public Awareness and Training Supporting the Other Categories 4, Total 30, Source: LSU Division of Economic Development Figure 1 illustrates the distribution of Louisiana s primary green jobs across activity Louisiana s Primary Green Jobs by Activity Category Figure 1 Source: LSU Division of Economic Development 3

10 The Greening of Louisiana s Economy Primary Green Jobs by Region Regional results are reported by Regional Labor Market Area (RLMA). Figure 2 delineates the RLMA regions and shows which parishes fall within each region. A summary of overall and primary green employment data by region is also included. Louisiana s Region Labor Market Areas and Employment Figure 2 4

11 Summary of Survey Results Figure 3 illustrates the distribution of primary green jobs across RLMAs. Baton Rouge and New Orleans, which are also the largest regions with regard to overall employment, had the greatest numbers of primary green jobs with 8,411 and 6,592 respectively. Following them were: Lafayette with 5,622; Shreveport with 3,224; Houma with 1,925; Alexandria with 1,742; Lake Charles with 1,400; and Monroe with 1,289 primary green jobs. Louisiana s Primary Green Jobs by Regional Labor Market Area Figure 3 Source: LSU Division of Economic Development 5

12 The Greening of Louisiana s Economy In Table 2, overall employment by region is taken into consideration. Primary green jobs accounted for at least 2 percent of employment in three regions. Baton Rouge and Lafayette had the highest rate with 2.1 percent, and Houma had 2.0 percent primary green employment. They were followed by: Alexandria with 1.6 percent; Shreveport with 1.4 percent; New Orleans and Lake Charles each with 1.3 percent; and Monroe with 1.2 percent. Louisiana s Primary Green Jobs as a Share of Regional Employment Regional Primary Percent Primary Labor Market Green Jobs Employment i Green Jobs New Orleans 6, , Baton Rouge 8, , Table 2 Houma 1,925 95, Lafayette 5, , Lake Charles 1, , Alexandria 1, , Shreveport 3, , Monroe 1, , State Total 30,205 1,845, i Employment data from Louisiana QCEW nd Quarter Source: LSU Division of Economic Development Primary Green Jobs by Industry The survey results were also analyzed by industry sector using the business establishments North American Industry Classification System (NAICS) codes. Of all the industry sectors, Administrative and Support and Waste Management and Remediation Services had the greatest number of primary green jobs with 4,992. Construction had the second greatest number with 3,646. Four additional industry sectors had primary green jobs totaling more than 2,000: Wholesale Trade with 2,959; Manufacturing with 2,783; Public Administration with 2,659; and Professional, Scientific and Technical Services with 2,362. Figure 4 illustrates the top 10 industry sectors in terms of number of primary green jobs. 6

13 Summary of Survey Results Top 10 Industry Sectors by Number of Primary Green Jobs Figure 4 Administrative & Support & Waste Management & Remidiation Services 4,992 Construction Wholesale Trade Manufacturing Public Administration Professional, Scientific & Technical Services Other Services (except Public Administration) Retail Trade Agriculture, Forestry, Fishing & Hunting Accomodation & Food Services 3,646 2,959 2,783 2,659 2,362 1,932 1,490 1,321 1, Source: LSU Division of Economic Development Table 3 provides a summary by industry sector and reports the number of primary green jobs as well as overall employment. Agriculture, Forestry, Fishing and Hunting ii had the highest rate of primary green jobs relative to the sector s overall employment. Primary green jobs accounted for 14.1 percent of the sector s employment. The next highest rate of primary green employment is 5.5 percent in Administrative and Support and Waste Management and Remediation Services followed by Wholesale Trade with 4.2 percent and Other Services (except Public Administration) with 4.1 percent primary green jobs. In five other industry sectors, primary green employment accounted for at least 2 percent of overall employment: Construction and Professional, Scientific and Technical Services each with 2.8 percent; Public Administration and Real Estate and Rental and Leasing each with 2.5 percent; and Manufacturing with 2.0 percent. 7

14 The Greening of Louisiana s Economy Louisiana s Primary Green Jobs by Industry (NAICS) Sector Primary Percent Primary Industry Green Jobs Employment i Green Jobs Accommodation & Food Services 1, , Administrative Support & Waste Management & Remediation Services 4,992 90, Agriculture, Forestry, Fishing & Hunting 1,321 9, Arts, Entertainment & Recreation , Construction 3, , Educational Services , Finance & Insurance , Health Care & Social Assistance 1, , Table 3 Information 96 29,136 NR Management of Companies & Enterprises NR 23,836 NR Manufacturing 2, , Mining, Quarrying & Oil & Gas Extraction , Other Services (except Public Administration) 1,932 46, Professional, Scientific & Technical Services 2,362 82, Public Administration 2, , Real Estate & Rental & Leasing , Retail Trade 1, , Transportation & Warehousing 1,148 74, Unclassified 120 2, Utilities , Wholesale Trade 2,959 70, Total 30,205 1,845, i Employment data from Louisiana QCEW nd Quarter NR Not reported due to low number of responses Source: LSU Division of Economic Development 8

15 Summary of Survey Results For nine industry sectors, when primary green jobs are considered relative to overall employment, primary green jobs accounted for less than one percent of employment. The industry sectors that had lower rates of primary green jobs are: Utilities with 0.9 percent; Arts, Entertainment and Recreation with 0.8 percent; Accommodation and Food Services and Retail Trade each with 0.7 percent; Health Care and Social Assistance with 0.4 percent; Finance and Insurance with 0.3 percent; Educational Services with 0.2 percent; and Information and Management of Companies and Enterprises each with less than 0.1 percent. The residual industry sectors, those for which primary green jobs comprised between 1 and 2 percent of overall employment, are Mining, Quarrying and Oil and Gas Extraction with 1.3 percent and Transportation and Warehousing with 1.5 percent. Primary Green Jobs by Occupation Assigning Standard Occupation Classification (SOC) codes to the reported primary green job titles allows for estimates by occupation. Primary green jobs for which the job title was unclear, but involvement in a green activity was clear, were not assigned SOC codes. Instead, they are included in the Non-Classifiable category. Table 4 provides a summary of primary green jobs by occupational group. As is the case for industry groups, the prevalence of primary green jobs within occupational groups varies considerably. Primary green jobs were reported for all but one occupational group, Healthcare Support. The occupational group Construction and Extraction had the largest number with 6,333, and Management had the second greatest number with 3,639. Two additional occupational groups had nearly 3,000 primary green jobs. Production had 2,969, and Installation, Maintenance and Repair had 2,820. For three occupational groups: Farming, Fishing and Forestry; Life, Physical and Social Sciences; and Construction and Extraction, primary green jobs comprised more than 5 percent of the occupational group s employment with 43.3, 11.8 and 5.3 percent respectively. Similar to the Agriculture, Forestry, Fishing and Hunting industry sector, the Farming, Fishing and Forestry occupational group may likely suffer employment reporting issues. However, this occupational group is still quite significant as it accounted for more than 1,500 primary green jobs in Louisiana. Primary green jobs in 12 occupational groups were less than 1 percent of overall employment, and for two of those, Personal Care and Service and Healthcare Support, primary green jobs accounted for 0.1 percent or less of employment. The other occupations that had lower rates of primary green jobs are: Computer and Mathematical and Community and Social Services each with 0.2 percent; Legal and Healthcare Practitioners and Technical each with 0.3 percent; Office and Administrative Support and Arts, Design, Entertainment, Sports and Media each with 0.4; Sales and Related and Business and Financial each with 0.5 percent; Education, Training and Library with 0.6 percent; and Food Preparation and Serving- Related with 0.7 percent. The remaining occupational groups, those for which primary green jobs accounted for at least 1 percent, but less than 5 percent of employment, are: Building and Grounds Cleaning and Maintenance with 1.0 percent; Transportation and Material Moving with 1.5 percent; Protective Service with 1.8 percent; Production with 2.4 percent; Installation, 9

16 The Greening of Louisiana s Economy Louisiana s Primary Green Jobs by Occupational (SOC) Group Primary Occupational Group Green Jobs Employment i Percent Primary Architecture & Engineering 1,210 34, Arts, Design, Entertainment, Sports & Media 71 15, Building & Grounds Cleaning & Maintenance , Business & Financial Operations , Community & Social Services 67 28, Computer & Mathematical 31 16, Construction & Extraction 6, , Education, Training & Library , Farming, Fishing & Forestry 1,638 3, Table 4 Food Preparation and Serving-Related 1, , Healthcare Practitioners and Technical , Healthcare Support NR 58,540 <0.1 Installation, Maintenance & Repair 2, , Legal 42 13, Life, Physical & Social Science 1,443 12, Management 3,639 85, Non-Classifiable 1,386 NA NA Office & Administrative Support 1, , Personal Care & Service 41 50, Production 2, , Protective Service , Sales & Related 1, , Transportation & Material Moving 2, , Total 30,205 1,871, i Employment data from Louisiana QCEW nd Quarter NR Not reported due to low number of responses NA Not Applicable Source: LSU Division of Economic Development 10

17 Summary of Survey Results Maintenance and Repair with 2.7 percent; Architecture and Engineering with 3.5 percent; and Management with 4.3 percent. At a higher level of specificity, the five most common occupational titles among primary green jobs are presented in Table 5 in descending order. Primary Green Job Occupational Titles Occupational Title Agriculture and Food Science Technicians Table 5 Forest and Conservation Workers Operating Engineers and Other Construction Equipment Operators General and Operations Managers Farmworkers and Laborers Crop Nursery and Greenhouse Source: LSU Division of Economic Development Support Green Jobs In order for a position to be classified as a primary green job, the employee must spend more than 50 percent of his time performing tasks in one of the seven activity categories. This strict definition of a primary green job provides a useful standard for determining the inclusion of positions in the primary green jobs tally; however, it may not capture the entire impact of green activities on the labor market. Involvement in a green activity may be essential to a position without requiring more than 50 percent of a worker s effort. So in addition to measuring primary green jobs, the survey inquired about support green jobs. Support green jobs include workers who spend some, but not more than 50 percent of their time, performing tasks in the green activity categories. Although these workers do not have a primary job function in a green activity category, they are considered essential to their organization s involvement in an activity category. There were an estimated 67,591 support green jobs in Louisiana during the fourth quarter of Support green jobs outnumbered primary green jobs by more than 2-to-1. For some of these positions, involvement in the activity categories may never require greater than 50 percent effort. However, as the greening of the economy continues, some of these positions may require more extensive involvement in the activity categories and develop into primary green jobs. Table 6 summarizes support green jobs by industry sector and provides the primary green jobs estimates for comparison. In all but three industry sectors: Administrative and Support and Waste Management and Remediation Services; Agriculture, Forestry, Fishing and Hunting; and Construction, support outnumbered primary green jobs.. Figure 5 provides a comparison of primary and support green jobs as a percent of industry sector employment. 11

18 The Greening of Louisiana s Economy Support vs. Primary Green Jobs by Industry (NAICS) Sector Industry Sector Support Green Jobs Primary Green Jobs Accommodation & Food Services 4,349 1,183 Administrative & Support & Waste Management & Remediation Services 3,316 4,992 Agriculture, Forestry, Fishing & Hunting 875 1,321 Arts, Entertainment & Recreation Construction 3,446 3,646 Educational Services 7, Finance & Insurance Health Care & Social Assistance 12,603 1,164 Table 6 Information 155 NR Management of Companies & Enterprises NR NR Manufacturing 5,828 2,783 Mining, Quarrying & Oil & Gas Extraction 6, Other Services (except Public Administration) 2,829 1,932 Professional, Scientific & Technical Services 2,501 2,362 Public Administration 2,671 2,659 Real Estate & Rental & Leasing 1, Retail Trade 4,599 1,490 Transportation & Warehousing 2,361 1,148 Unclassified Utilities Wholesale Trade 4,866 2,959 Total 67,591 30,205 NR Not reported due to low number of responses Source: LSU Division of Economic Development 12

19 Summary of Survey Results Figure 5 Support vs. Primary Green Jobs as a Percent of Industry (NAICS) Sector Employment Agriculture, Forestry, Fishing & Hunting Administrative & Support & Waste Management & Remediation Services Unclassified Wholesale Trade Other Services (except Public Administration) Professional, Scientific & Technical Services Construction Public Administration Real Estate & Rental & Leasing Manufacturing Transportation & Warehousing Mining, Quarrying & Oil & Gas Extraction Utilities Arts, Entertainment & Recreation Accomodation & Food Services Retail Trade Health Care & Social Assistance Information Finance & Insurance Educational Services Management of Companies & Enterprises Primary Green Jobs Support Green Jobs Source: LSU Division of Economic Development Green Jobs and the Gulf Oil Spill Given the geographic and temporal proximity of the survey to the Gulf Oil Spill, a hypothetical question was included to gauge the effect of the spill on the number of green jobs reported. Given the employers expected number of green jobs had the Gulf Oil Spill not occurred, it is clear that the oil spill had little effect on reported green jobs in this survey. There are a number of reasons why this survey would not capture the workers involved in the clean-up efforts following the spill. Most importantly, our sample was drawn from a database of employers who were covered by the unemployment insurance tax law prior to the spill. If new employers began operations to take advantage of the large amount of work that was needed to respond to the event, they would not have been present in the sampling frame. In addition, a large number of workers may have been contracted through out-ofstate employers that would not have been part of the sampling frame. Finally, Louisiana residents may have been hired by Louisiana businesses through contingent or alternative employment arrangements as opposed to being hired as permanent employees and may not have been included in survey responses. 13

20 The Greening of Louisiana s Economy Primary Green Job Vacancies In addition to inquiring about current primary green jobs, the survey asked employers about current primary green job vacancies. Table 7 reports an estimated 1,903 primary green job vacancies in Louisiana during the fourth quarter of 2010, resulting in a vacancy rate of 6.3. The high rate of vacancies relative to current primary green jobs is characteristic of a growing sector of the economy and suggests that primary green jobs may become more prevalent in the near future. The primary green job vacancies are reported by RLMA. Two regions had a primary green job vacancy rate of more than 10 percent. Houma had a primary green job vacancy rate of 17.3 and Lake Charles had a rate of 12.7 percent. They are followed by Lafayette with 7.9; Shreveport with 7.6; Monroe with 7.2; Baton Rouge with 5.9; Alexandria with 3.9; and New Orleans with 0.7. On the surface, the fact that New Orleans had the second largest number of primary green jobs and the least number of vacancies may seem surprising. However, it may be an indication that New Orleans workers are filling primary green job vacancies quickly, which could be a result of better qualified candidates. Louisiana s Primary Green Job Vacancies by Region Regional Primary Green Primary Green Primary Green Labor Market Area Job Vacancies Jobs Job Vacancy New Orleans 44 6, Baton Rouge 500 8, Table 7 Houma 333 1, Lafayette 443 5, Lake Charles 178 1, Alexandria 68 1, Shreveport 244 3, Monroe 93 1, State Total 1,903 30, Source: LSU Division of Economic Development 14

21 Summary of Survey Results Occupational Training Requirements In order to better understand the workforce needs of businesses with employees performing primary job functions in the green activity categories, the survey asked about unique skills and licenses, certificates and other training necessary for workers in each of the green activity categories. Specifically, the survey asked if primary green job workers within a green activity category require unique skills compared to workers with the same job titles that do not work in the activity category. Employers were also asked if employees working in an activity category require any special licenses, certificates or other training. Table 8 reports the percent of survey respondents with requirements for workers by green activity category. Only employers with reported primary green jobs in the category are included. In addition to involvement in a particular activity category, requirements for unique skills and special licenses, certificates or other training may vary by industry sector. Table 9 reports the percent of respondents with requirements for primary green job workers in any green activity category by industry sector. Requirements for Workers with Primary Green Jobs by Activity Category Percent Requiring Special Licenses, Percent Requiring Certificates or Other Activity Category Unique Skills Training Renewable Energy Table 8 Energy Efficiency Greenhouse Gas Reduction Pollution Reduction and Clean-up Recycling and Waste Reduction Sustainable Agriculture, Natural Resource Conservation and Coastal Restoration Education, Compliance, Public Awareness and Training Supporting the Other Categories Total Source: LSU Division of Economic Development 15

22 The Greening of Louisiana s Economy Requirements for Workers with Primary Green Jobs by Industry (NAICS) Sector Percent Requiring Special Licenses, Percent Requiring Certificates or Other Industry Sector Unique Skills Training Accommodation & Food Services NR NR Administrative & Support & Waste Management & Remediation Services Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Educational Services Finance & Insurance Table 9 Health Care & Social Assistance Information NR NR Management of Companies & Enterprises Manufacturing Mining, Quarrying & Oil & Gas Extraction Other Services (except Public Administration) Professional, Scientific & Technical Services Public Administration Real Estate & Rental & Leasing Retail Trade Transportation & Warehousing Unclassified Utilities Wholesale Trade NR Not reported due to low number of responses Source: LSU Division of Economic Development 16

23 Summary of Survey Results Business Practices In addition to employing workers to perform tasks that fall into one of the seven activity categories, businesses may also participate in the greening of the economy by using green goods or services or implementing business practices that benefit the environment. Figure 6 summarizes the percent of business establishments utilizing specific practices, services and products according to whether or not they reported any primary green jobs. All green practices, services and products were more likely to be utilized by business establishments that also have green jobs, but green business practices are by no means limited to these business establishments. Utilization of Green Practices, Services and Products by Primary Green Jobs Figure 6 Recycling Waste Reduction Recycled Products Alternative Fuel Vehicles Renewable Energy Energy Efficiency/Conservation LEED or energy efficient construction and remodeling Sustainable Farming Water Conservation Pollution Reduction Other None Refused Percent w/primary Green Jobs Percent w/o Primary Green Jobs Source: LSU Division of Economic Development 17

24 The Greening of Louisiana s Economy Conclusion During the fourth quarter of 2010, it is estimated that primary green jobs comprised 1.6 percent of Louisiana s employment. While they are spread across the state geographically and appear in most industry and occupational groups, there are certain areas where primary green jobs are much more concentrated. The Administrative and Support and Waste Management and Remediation Services industry sector has the largest number of primary green jobs by more than 1,000. It also has the second-highest percent of primary green jobs relative to overall industry sector employment. The only industry sector with a higher percent is Agriculture, Forestry, Fishing and Hunting. The Administrative and Support and Waste Management and Remediation Services industry sector includes businesses in the following industries: Services to Buildings and Dwellings; Waste Collection; Waste Treatment and Disposal; and Remediation and Other Waste Management Services. It follows that Recycling and Waste Reduction and Pollution Reduction and Clean-up are by far the most common activity categories reported for the state. Given that the Construction industry sector had the second-highest number of primary green jobs, it is not surprising that the Construction and Extraction occupational group is the largest. New construction, as well as rebuilding and renovation, has been influenced recently by federal incentive programs to improve energy efficiency in buildings. In addition to the wealth of detail regarding the current composition of jobs created by the greening of the Louisiana economy, this survey provides data on the skill requirements associated with those jobs. It is also important to put the vacancy rate of more than 6 percent into perspective. This figure is roughly comparable to the rates recorded statewide for Louisiana in the wake of hurricane Katrina (the highest ever recorded in a statewide job vacancy survey). This high vacancy rate provides evidence of the unmet workforce needs associated with the greening economy. Meeting these workforce needs will allow Louisiana to take full advantage of employment growth opportunities in both traditional and emerging industries. 18

25 Summary of Survey Results Appendix A: Methodological Detail The data presented here are based on a survey conducted during the fourth quarter of The survey sample included 12,882 unique Louisiana establishments drawn from the most recent Quarterly Census of Employment and Wages (QCEW) database available, the 4th quarter of The QCEW contains data on all businesses, local government agencies and state government agencies in the state subject to the state s unemployment insurance tax laws. All establishments in Louisiana with 250 or more employees were included in the sample. The remainder of the sample was selected using Probability Proportional to Size (PPS) sampling. Since the sample was pulled with replacement, some establishments were sampled multiple times. The total number in the sample was 16,516. The most one establishment was selected was 10 times; this occurred three times. Eighty-one percent of the establishments were sampled once; 98 percent were sampled three times or less. Before sampling, the establishments were stratified according to region and industry sector. Stratification by region was done according to the Regional Labor Market Areas: New Orleans; Baton Rouge; Houma; Lafayette; Lake Charles; Shreveport; Alexandria; and Monroe. Stratification by industry sector was done according to the assigned North American Industry Classification System (NAICS) code provided in the QCEW data. All 20 industry sectors in the NAICS were sampled. Survey instruments were mailed to all establishments in the sample and could be returned by mail or fax or completed on the web. This initial survey mode resulted in 1,001 responses. For those not responding by mail, fax or web during the response window, the next round of surveying was done by phone. The phone survey mode resulted in 4,176 additional completes. The total number of unique establishment responses was 5,177, resulting in a raw response rate of 40.2 percent. An alternative response rate and cooperation rate were calculated in keeping with the American Association for Public Opinion Research (AAPOR) response and cooperation calculator. iii Accounting for establishments that were determined not eligible during the phone survey, the response rate rises to 50.8 percent. Non-eligible establishments include those that were out of sample; those with no eligible respondent; and those with numbers that were fax lines, disconnected or residences. The cooperation rate was 58.3 percent. This calculation accounts for establishments that were not eligible as well as those not contacted during the phone survey. Sample Selection All large establishments, those with 250 or more employees, were included in the sample. There were a total of 756 large establishments all of which were included once with certainty. The remaining 12,126 establishments were sampled with replacement using Probability Proportional to Size (PPS) after being stratified by region and industry sector. Stratification assures that establishments from all regions and industries are included regardless of the stratum size. PPS sampling was used to select 15.3 percent of establishments within each stratum with a minimum of 10 units selected from each. If fewer than 10 establishments existed in a 19

26 The Greening of Louisiana s Economy stratum, the entire stratum was included in the sample. In PPS sampling, the probability of being sampled is determined by size. Here size is the number of employees in the establishment. If total employment within a stratum is 100, an establishment in the stratum with 50 employees would be sampled with probability 0.5. An establishment in the stratum with 10 employees would be sampled with probability 0.1. Thus, within-strata establishments with more employees are more likely to be selected. Estimation and Weighting For the stratified establishments sampled using PPS, weights equal the inverse of the probability of being sampled, multiplied by the number of times the establishment was sampled (as the sample was pulled with replacement) and divided by the total number of establishments selected in the stratum including each occurrence of selection for those sampled more than once. 20

27 Summary of Survey Results Appendix B: Survey Instrument 21

28 The Greening of Louisiana s Economy 22

29 Summary of Survey Results 23

30 24 The Greening of Louisiana s Economy

31 Summary of Survey Results i Lohr, Sharon L. Sampling: Design and Analysis. Pacific Grove, CA: Brooks/Cole Publishing Company, Print. ii Agriculture, Forestry, Fishing & Hunting is underrepresented in our sampling frame relative to other sectors due to the fact that a smaller proportion of agricultural producers are included in the unemployment insurance records. This implies our estimate of green jobs represents a lower bound for this sector. To the extent that the population differs from our sampling frame, sample selection bias may influence our estimates of the proportion of green jobs in this sector. Notes iii AAPOR Response Rate Calculator. Version 3.1. November,

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