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HomeMy WebLinkAboutSupplemental Materials - Futures Committee - 02/13/2017 -• TALENT 2.0|WORKFORCE STRATEGY FORT COLLINS – LOVELAND MSA FEBRUARY 2017 CAROLINE ALEXANDER TOM STELLMAN INTRODUCTION 1 We have over 20 years of experience in over 200 unique communities, across 38 states & 4 countries. SERVICES STRATEGIC PLANNING WORKFORCE ASSESSMENT ECONOMIC ANALYSIS Image credit: DSC_0110 by Bri Weldon via Flickr (CC BY 2.0) Auburn, WA – Economic Development Strategy Austin, TX – Workforce Master Plan Fort Campbell, KY – Regional Economic Diversification Strategy Fort Worth, TX – Economic Development Strategy Green Bay, WI – Economic Development Strategy Kern County, CA – Regional Economic Diversification Strategy Massachusetts Development Authority – Defense Industry Diversification Strategy Minneapolis-St. Paul, MN – Core City Districts Strategy Northern Iowa Corridor – Economic Development Strategy Northwest Florida – Economic Development Strategy Oregon Talent Council – Workforce Study & Investment Strategy Savannah River Site, SC – Consequences Analysis South Carolina I-77 Alliance, SC – Labor Study & Target Industry Alignment Washington Military Alliance - Defense Industry Diversification Strategy CURRENT & RECENT PROJECTS #2 NATIONAL TRENDS 2 Net Job Gains/Losses by Metropolitan Statistical Area The Geography of Jobs Recessions Compared Sources: U.S. Bureau of Labor Statistics, Current Employment Statistics (total nonfarm employment, seasonally adjusted); NBER (recession dates); New York Times (format) 93 94 95 96 97 98 99 100 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 Number of months until all jobs "regained" RECESSIONARY EMPLOYMENT TRENDS Peak employment = 100 1980 1974-1976 1981-1983 1990-1993 2001-2005 2007-2014 (May 2014 = 100.1) 78 months THE GEOGRAPHY OF RECOVERY Source: U.S. Bureau of Labor Statistics, Current Employment Statistics; TIP Strategies Cumulative Change in Employment Since the Beginning of the Great Recession A JOBLESS RECOVERY? Source: Bureau of Economic Analysis, Bureau of Labor Statistics. COMPARISON OF REAL GDP TO EMPLOYMENT 2008 to 2015, cumulative change since 2008 THE HOLLOWING OUT OF THE MIDDLE Sources: U.S. Bureau of Labor Statistics, Current Employment Statistics (total nonfarm employment, seasonally adjusted); NBER (recession dates); New York Times (format) OCCUPATIONAL GROWTH BY WAGE LEVEL 2007 to 2015, indexed to 2007 OUTPUT VS. EMPLOYMENT Source: Brookings’ analysis of Moody’s Analytics estimates GEOGRAPHY OF MANUFACTURING Sources: BLS via Moody’s (Washington Post format) EVIDENCE OF TALENT SHORTAGE Source: Manpower 2016 Talent Shortage Survey. 46.0% 0% 10% 20% 30% 40% 50% 60% 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 US Global PERCENT EMPLOYERS REPORTING DIFFICULTY FILLING JOBS 2006 to 2016 TOP 10 JOBS EMPLOYERS ARE HAVING DIFFICULTY FILLING Source: ManpowerGroup's 2016 Talent Shortage Survey GLOBAL 1. Skilled Trades 2. IT Personnel 3. Sales Representatives 4. Engineers 5. Technicians 6. Drivers 7. Accounting & Finance Staff 8. Management/Executive (Management/Corporate) 9. Production Operators/Machine Operators 10. Secretaries, PAs, Receptionists, Administrative Assistants, & Office Support Staff UNITED STATES 1. Skilled Trades 2. Drivers 3. Sales Representatives 4. Teachers 5. Restaurant & Hotel Staff 6. Accounting & Finance Staff 7. Nurses 8. Laborers 9. Engineers 10. Technicians Talent Gap? DEMOGRAPHICS AUTOMATION POLICIES TRAINING WAGES SCREENING IMAGE EDUCATION CULTURE CHANGING DEMOGRAPHICS Sources: TIP Strategies, U.S. Census Bureau (NP2014_D1) “Working-age” defined as 18-66 (average planned retirement age based on April 2014 Gallup poll. 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 20 1 5 20 2 0 20 2 5 20 3 0 20 3 5 20 4 0 20 4 5 20 5 0 COUNTER FORCES •Advancement of retirement age •Relaxed immigration restrictions •Technology reduces employment needs •Out-sourcing of labor to cheaper markets 2027 PROJECTED NET ANNUAL CHANGE IN THE US WORKING-AGE POPULATION John A. Rogers, University of Illinois, F. Seitz Materials Research Laboratory Google MANUFACTURING HEALTH CARE ENTERTAINMENT TRANSPORTATION DISRUPTIVE TECHNOLOGY 47% of US employment is at-risk of automation over next 20 years. AUTOMATION Source: “The Future of Employment,” Dr Michael Osborne and Dr Carl Frey, University of Oxford. 1.Technical feasibility 2.Development & deployment cost 3.Cost/availability of labor 4.Benefits beyond labor substitution Predictors of Automation Source: McKinsey & Company. KEY WORKFORCE CHALLENGES 3 CHALLENGE #1: HIRING DIFFICULTY From 2010 to 2015, the regional economy added almost 20,000 jobs but only 11,000 workers. Combined with low unemployment and high underemployment, the hiring environment is already difficult. 169 180 0 25 50 75 100 125 150 175 200 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 Th o u s a n d s 147 167 0 25 50 75 100 125 150 175 200 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 Th o u s a n d s GROWTH TRENDS: JOBS VS LABOR FORCE TOTAL EMPLOYMENT 2010 TO 2015 CIVILIAN LABOR FORCE 2005 TO 2015 +20K Sources: EMSI, Bureau of Labor Statistics. +11K UNEMPLOYMENT Source: U.S. Bureau of Labor Statistics via Moody’s. COMPARATIVE UNEMPLOYMENT, AVERAGE ANNUAL RATES 2005 TO 2015 3.2 0.0 2.0 4.0 6.0 8.0 10.0 19 9 0 19 9 2 19 9 4 19 9 6 19 9 8 20 0 0 20 0 2 20 0 4 20 0 6 20 0 8 20 1 0 20 1 2 20 1 4 AN N U A L A V E R A G E R A T E MSA Colorado United States LABOR FORCE PARTICIPATION RATE 66.5 67.6 67.4 62.9 60 65 70 MSA Laborshed Colorado United States Sources: U.S. Bureau of Labor Statistics via Moody’s. COMPARATIVE LABOR FORCE PARTICIPATION RATES 2014 Civilian Labor Force, % of Total RECRUITMENT CHALLENGES •Difficulty attracting: •Talent from Denver and from coasts •C-Level executives •Young professionals •Reliable workers to fill jobs with high physical requirements – warehouse, waste collection, construction laborers •Workers that can pass the drug test – most often fail due to marijuana use •Low-wage services – food services, housekeeping RETENTION CHALLENGES •Underemployment means that overqualified workers are always looking for a better job •Generational expectations •Young professional gap EVIDENCE OF UNDEREMPLOYMENT Sources: EMSI, ACS 1-yr estimates EDUCATIONAL REQUIREMENTS OF JOBS VS ATTAINMENT OF LABOR FORCE Fort Collins – Loveland MSA United States 26% 44% 10% 20% 3% 18% 33% 45% 0%25%50%75%100% Less than High School High School or Equivalent Some College Bachelor or Higher Labor Force Jobs 28% 40% 12% 21% 9% 25% 31% 36% 0%25%50%75%100% Less than High School High School or Equivalent Some College Bachelor or Higher Labor Force Jobs PIPELINE CHALLENGES •Awareness of resources •Employer engagement & input •Finding instructors – nursing, computer science •Student choices •Awareness of non 4-year opportunities •Choice of majors at CSU and UNC MOST POPULAR MAJORS 0 200 400 600 800 1,000 1,200 Liberal Arts and Sciences/Liberal Studies (24.0101) Business/Commerce (52.0101) Nursing Assistant (51.3902) Kinesiology and Exercise Science (31.0505) Emergency Medical Technician (51.0904) Psychology (42.0101) Business Administration & Management (52.0201) Automotive Mechanics (47.0604) Registered Nursing/Registered Nurse (51.3801) Speech Communication and Rhetoric (9.0101) Human Development and Family Studies (19.0701) Multi-/Interdisciplinary Studies, Other (30.9999) Computer and Information Sciences (11.0101) English Language and Literature (23.0101) Welding Technology/Welder (48.0508) Biology/Biological Sciences (26.0101) Sociology (45.1101) History (54.0101) Fine/Studio Arts (50.0702) Liberal Arts and Humanities (24.0199) Economics (45.0601) Educational Administration (13.0499) Journalism (9.0401) Music (50.0901) Political Science and Government (45.1001) Associates or less Bachelors Graduate Degree Sources: National Center for Education Statistics, IPEDS Survey. TOP 25 LARGEST FIELDS OF STUDY, 3-YEAR AVERAGE STRUCTURAL CHALLENGES •Housing affordability at all income levels •Purchase & rental •Quality childcare for affordable prices •Transportation/mobility: traffic makes Denver farther away CHALLENGE #2: CONTINUED TIGHTENING Over next 5 years, employers will have at least 28,000 openings to fill. The labor force adds only about 2,000 to 3,000 workers each year. A continuation of this trend would leave an estimated shortfall of about 5,000 workers. PROJECTED DEMAND 5,021 3,056 2,568 9,010 4,655 3,502 Low Middle High New Replacement EMPLOYMENT BY SKILL LEVEL, FORT COLLINS-LOVELAND MSA 2016 TO 2020 +28,000 OPENINGS (7,000 each year) Sources: EMSI. 1,101 2,076 2,112 3,016 2,380 0 1,000 2,000 3,000 4,000 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 CHANGE IN LABOR FORCE Sources: U.S. Bureau of Labor Statistics via Moody’s. CHANGE IN LABOR FORCE, FORT COLLINS-LOVELAND MSA Year-over-year change, # POPULATION GROWTH Sources: Colorado State Demography Office. POPULATION PROJECTIONS OF RESIDENTS 16+, BY AGE YEAR-OVER-YEAR CHANGE, 2015-2020 2.8 3.3 3.0 2.9 3.0 2.2 2.0 2.2 2.4 2.4 0 1 2 3 4 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 Th o u s a n d s Working Age (16 - 64)Senior (65+) CHALLENGE #3: AGING WORKFORCE In many key occupations, more than 25% of the workers are 55 or older. With the wave of likely retirements, employers will need to start succession planning now in order to prepare for the loss of those key individuals. AGING WORKFORCE AGE DISTRIBUTION OF REGIONAL WORKERS FORT COLLINS-LOVELAND MSA Sources: EMSI. TOP MIDDLE SKILL JOBS MIDDLE-SKILL (More than high school, less than four years) 49-9071 Maintenance & Repair Workers, General 27%7% 29-1141 Registered Nurses 27%5% 53-3032 Heavy & Tractor-Trailer Truck Drivers 28%7% 51-9111 Packaging & Filling Machine Workers 15%2% 49-9041 Industrial Machinery Mechanics 24%3% 43-3031 Bookkeeping, Accounting, & Auditing Clerks 32%9% 29-2061 Licensed Practical/ Vocational Nurses 26%5% 51-4041 Machinists 27%5% 41-9022 Real Estate Sales Agents 39%13% 49-1011 First-Line Supvsr., Mechanics, Install, & Repair 27%4% 11-9141 Property, Real Estate, & Community Assoc. Mgrs.40%14% 43-6013 Medical Secretaries 29%6% 47-4011 Construction & Building Inspectors 38%11% 51-8031 W ater/ W W Treatment Plant Operators 30%6% 13-2021 Appraisers & Assessors of Real Estate 32%9% SOC CODE DESCRIPTION DEM OGRAPHICS % 5 5 + Y e a r s % 6 5 + Y e a r s Sources: EMSI. TOP HIGH SKILL JOBS HIGH SKILL (Four-year degree or above) 25-1099 Postsecondary Teachers 30%11% 11-1021 General and Operations Managers 23%4% 13-2011 Accountants and Auditors 25%6% 25-2021 Elementary School Teachers, Except Special Education 28%5% 25-2031 Secondary School Teachers, Except Special and Career/ Tec 28%5% 13-1111 Management Analysts 38%12% 25-2022 Middle School Teachers, Except Special and Career/ Techni 28%5% 25-3099 Teachers and Instructors, All Other 25%8% 21-1014 Mental Health Counselors 25%6% 21-2021 Directors, Religious Activities and Education 39%13% 29-1069 Physicians and Surgeons, All Other 31%9% 21-2099 Religious W orkers, All Other 45%20% SOC CODE DESCRIPTION DEM OGRAPHICS % 5 5 + Y e a r s % 6 5 + Y e a r s Sources: EMSI. SUMMARY OF FINDINGS •The current labor market is already strained •Demand outstrips supply •Mismatch in education & skills •Difficult to recruit and retain from outside of the region •Structural issues (transportation, childcare & housing) exacerbate recruitment challenges •The situation is likely to worsen •Projected demand still more than supply •Aging workforce will create more openings TALENT 2.0 3 THE RESPONSE: TALENT 2.0 •Sets out a common set of goals and strategies •Align efforts and resources •Amplify reach and impact FRAMEWORK Access Actively support employers in finding, attracting, and retaining the talent that they need Alignment Align education and workforce resources more closely with business community and the local talent pool Barriers Collectively address structural issues that serve as barriers to a secure talent pipeline YOUR PLACE: NORTHERN COLORADO •TALENT PORTAL. Create a talent portal that provides information about working, living, and relocating to the region. •AMBASSADORS. Assemble a multi-generational and diverse group of “ambassadors” that are willing to help sell the community by participating in recruitment events such as panel discussions or networking events. •TRAILING SPOUSES. Partner with existing business networks (chambers of commerce, business associations, and industry associations) to create a program by which spouses and partners of recruits can be connected to potential employers or job opportunities. •RECRUITMENT SERVICES. Develop a recruitment services program to support employers. •TALENT ROADSHOWS. Organize talent roadshows to create opportunities for local employers to jointly market to prospective talent pools. THE UNDEREMPLOYMENT PROJECT •OUTREACH. Reach out to underemployed individuals through employers and directly •INVENTORY. Catalog resumes and skills of underemployed •COACH. Provide coaching to these individuals to find better jobs •RETRAIN. Connect them to retraining as needed to align skills to opportunities •RE-EMPLOY. Assist them in finding better opportunities PLAN FOR SUCCESS(ION) •ASSESS. Invest in tools that can help companies assess their needs and craft a transition strategy •EDUCATE. Hold workshops on topics relevant to succession planning •KNOWLEDGE-SHARE. Create peer working groups that meet quarterly to provide a forum for peers to share information and best practices as well as to work through issues together •TRAINING. Create program to train workers to move up •EXPERTISE. Train or hire an expert that can provide technical assistance one-on-one to companies SECTOR PARTNERSHIPS (SUPPORT FOR ESTABLISHED INITIATIVE) •SURVEY. Partner with existing sector organizations to conduct annual employer surveys to document needs in critical occupations •ADVISE. Coordinate with sector partnerships to create a more centralized business advisory function. •LAUNCH. Monitor the needs of other industries, and facilitate the launch of new partnerships as needed. FRONT RANGE CAREER ACADEMY (EXPANSION OF CURRENT INITIATIVE) •EXPAND. Enhance FRCC’s current high school programs •Small learning environment, experiential learning, dual enrollment •COLLABORATION. Foster collaboration between school districts, community college, and key employers •ALIGNMENT. Enhances industry-education alignment and is an asset for talent & business attraction ADVOCACY •Continue to advocate for I-25 Corridor improvements •Advocate on behalf of FRCC to secure funding for the Allied Health School •Incorporate affordable housing as an issue on the local advocacy agenda IMPLEMENTATION STRUCTURE Steering Committee Education & Training Partners Public Sector Partners Industry Partnerships & Associations Philanthropy STEERING COMMITTEE ROLES •Maintain strategic coherence •Manage fundraising and outreach efforts •Provide additional project management and support MEASURING PROGRESS & IMPACT •Growth parity: comparison of employment growth and labor force growth •Labor force participation •Unemployment rate •Underemployment: educational requirements of jobs and educational attainment of workers •Workforce efficiency: the percent of employed residents who live and work in the region •Wages: cost-of-living adjusted wages •Income equity: the ratio of the earnings of the 90th percentile to the 10th percentile QUESTIONS ? THANK YOU 2905 San Gabriel Street Suite 205 Austin, TX 78705 512.343.9113 www.tipstrategies.com Image Credit :Austin_Texas by Ed Schipul via Flickr (CC BY-SA 20)