WORKFORCE INTELLIGENCE NETWORK
QUARTERLY REPORT 路 MACOMB COUNTY 路 Q2 2015
CONTENTS Labor Market and Demand Overview Occupational Clusters Advanced Manufacturing: Skilled Trades & Technicians Advanced Manufacturing: Engineers & Designers Information Technology Health Care Retail & Hospitality
Labor Market and Demand Summary Data Notes and Sources
GEOGRAPHY
WIN region includes 9 counties: Genesee, Livingston, Monroe, Macomb, Oakland, Shiawassee, St. Clair, Washtenaw, and Wayne. This report focuses on Macomb County.
Genesee
St. Clair
Shiawassee Oakland Macomb Livingston Washtenaw
Wayne
Monroe
SECTION ONE LABOR MARKET AND DEMAND OVERVIEW
TOP 20 JOBS IN DEMAND $35Ζ/ - JUNE 201
Heavy and tractor-trailer truck drivers were displaced from the top in-demand job spot in Macomb County during Q1 2015, and now rank 4th during Q2 (478 online job ads). Software developers, applications are the most in-demand occupation (553 online job postings) before Q1’s top job, registered nurses (513 online job postings this quarter). Employer demand for mechanical engineers (480 online job ads) brings this occupation to the top 3.
EMPLOYMENT AND LABOR FORCE
Employment in Macomb County grew at a similar rate to the region, 1.0%, between Q1 2015 and Q2, adding 3,665 new jobs. The county labor force grew a negligible amount (0.1%) between quarters. Because employment is growing at a faster rate than the labor force, the 11.9% decrease in the number of unemployed workers can be attributed to people gaining jobs. Between quarters Macomb County’s unemployment rate dropped 0.8 percentage points from 6.5% to 5.7%.
EMPLOYER DEMAND $35Ζ/ - JUNE 201
Total job postings in Macomb County increased 15.1% between Q1 2015 and Q2. Online job ads are up to 13,819 during Q2, from 11,737 during Q1, the highest level of postings for Macomb County since analysis began in 2011. This large increase and new peak in employer demand is consistent with the increased demand seen in almost all occupational clusters analyzed by WIN in Macomb County.
EMPLOYMENT AND LABOR FORCE OVERVIEW
EMPLOYMENT AND LABOR FORCE OVERVIEW
SECTION TWO OCCUPATIONAL CLUSTERS
MAOMCB COUNTY DEMAND OVERVIEW
ADVANCED MANUFACTURING SKILLED TRADES AND TECHNICIANS WIN’s technicians/skilled trades category includes jobs related to advanced manufacturing. Southeast Michigan has more demand for skilled- trades labor, such as CNC machinists and welders, than almost anywhere else in the country. In 2014, skilled trades employment reached 104,229 individuals in the WIN region. NOTE: Skilled trades related to construction and repair are not included in this cluster, as the focus is on advanced manufacturing. Computer-controlled machine tool operators was the top in-demand job in the Skilled Trades cluster in Macomb County during Q1 2015 with 141 online job postings. However, postings for this occupation are down to 41 during Q2, making this occupation the 5th most in-demand for the County; demand for CNC machinists also declined in other WIN-observed geographies during Q2 signaling that many employers likely found workers to fill open positions The top employer demanded Skilled Trades occupation this quarter was production workers with 134 postings.
ADVANCED MANUFACTURING SKILLED TRADES AND TECHNICIANS: TOP JOBS
ADVANCED MANUFACTURING SKILLED TRADES AND TECHNICIANS: ONLINE JOB POSTINGS OVER TIME
Postings in the Skilled Trades cluster remained stagnant between Q1 and Q2 2015 in Macomb County, at 836, while all other occupational clusters saw increased employer demand. Postings for Skilled Trades occupations account for 6.0% of all online job ads in Macomb County.
Macomb County has high concentrations of workers already employed in the most in-demand Skilled Trades occupations. For example, the most indemand occupation for Q2, production workers, has a location quotient (LQ) of 3.01, meaning that this type of worker is 3.01 times more concentrated in Macomb County than the rest of the nation, on average. All other in-demand occupations have LQs greater than 1.00, the national average. Most of Macomb County’s in-demand Skilled Trades occupations offer workers living wages, above $15 an hour, at the median. Entry-level (10th percentile) wages are not as high but do offer opportunity for wage growth with experience. Most of the in-demand Skilled Trades jobs in Macomb County do not require a post-secondary degree but do require on-the-job training. Firstline supervisors of production and operating workers may be expected to have a postsecondary non-degree award. Many of Macomb County’s most in-demand Skilled Trades occupations do not have students graduating from related degree and certificate programs to satisfy employer demand. Also note that many degrees can prepare a person for multiple jobs, therefore the completions data presented may not be informative for many Skilled Trades occupations.
ADVANCED MANUFACTURING SKILLED TRADES AND TECHNICIANS: TOP 10 JOBS LOCATION QUOTIENT AND WAGES
SKILLED TRADES AND TECHNICIANS: TOP 10 JOBS RECENT GRADUATES AND EDUCATION AND TRAINING REQUIREMENTS
ADVANCED MANUFACTURING ENGINEERS AND DESIGNERS Jobs in the manufacturing industry can range from assembly and production, to skilled trades and technicians, designers and engineers, and even computer-related occupations such as software development. This section focuses on engineers & designers, which represent 74,198 employed individuals in Southeast Michigan. Demand for engineers in the region has been consistent, and employment has been growing quickly. The top in-demand occupations for Macomb County’s Engineering & Design cluster remain the same but slightly shuffled in rank between quarters. Mechanical engineers and electrical engineers top the list again this quarter, as they did in Q1 2015, with 480 and 303 online job postings, respectively. Employers were also in need of industrial engineers (190 postings), commercial and industrial designers (143 postings), and civil engineers (120 postings) during Q2.
ADVANCED MANUFACTURING ENGINEERS AND DESIGNERS: TOP JOBS
ADVANCED MANUFACTURING ENGINEERS AND DESIGNERS: ONLINE JOB POSTINGS OVER TIME
Postings for Engineering & Design workers are up 18.4% from Q1 to Q2 2015. Macomb County employers posted 1,743 online job ads for these workers during April through June this year. This new level of postings is the highest seen for this cluster since analysis began in 2011. Employer demand in the Engineering & Design cluster accounts for 12.6% of all online job postings in Macomb County.
Many of the most in-demand Engineering & Design occupations already have high concentrations of workers in Macomb County. For example, mechanical engineers, the most in-demand occupation for Q2, have a location quotient of 7.12, meaning that the concentration of this worker in Macomb is 612% of the national average, or 7.12 times the national average. Other engineering occupations have similarly large concentrations. Civil engineers (LQ = 0.46) and chemical engineers (LQ = 0.31) have concentrations less than the national average, with room for employment growth in Macomb County. Engineering & Design occupations are high-paying jobs for Macomb County workers. Median hourly wages for the most in-demand occupations are above $29 an hour. Entry-level (10th percentile) wages for engineers are also high, above $20 an hour, at the median. These well-paying jobs require advanced educational attainment, like a bachelor’s degree for entry-level. Many of the top in-demand occupations in Macomb County do not have students completing related degrees at regional institutions. Data show completers in related industrial design programs, but other high demand occupations in mechanical, electrical, and civil engineering do not have graduates for Macomb County employers to hire from. Colleges and universities in the surrounding counties often produce talent needed for Macomb’s employers.
ADVANCED MANUFACTURING ENGINEERS AND DESIGNERS: TOP 10 JOBS LOCATION QUOTIENT AND WAGES
ENGINEERS AND DESIGNERS: TOP 10 JOBS RECENT GRADUATES AND EDUCATION AND TRAINING REQUIREMENTS
INFORMATION TECHNOLOGY Information technology jobs include occupations that are associated with entry level, technical, and professional careers related to the design, development, support and management of hardware, software, multimedia, and systems integration services. While the information technology cluster does not currently meet the employment levels of the other clusters, it is quickly growing. In 2014, IT occupational employment was 74,309 in the WIN region. Top jobs in this cluster include computer support specialists, computer systems analysts, and software developers for applications. Software developers, applications, are again the most in-demand IT occupation in Macomb County during Q2, like in much of the WIN Region. Demand for this occupation continues to grow, from 211 in Q4 2014, to 355 in Q1 2015, and now 554 in Q2. This is a 35.9% increase for application software developers between quarters. Demand for this occupation also significantly outpaces the next in-demand IT occupations in Macomb County. Computer systems analysts rank second this quarter with 148 postings, and business intelligence analysts come in third with 138 postings.
INFORMATION TECHNOLOGY TOP JOBS
INFORMATION TECHNOLOGY ONLINE JOB POSTINGS OVER TIME
Postings in Macomb County’s IT cluster grew 24.0% from Q1 2015 to Q2. Employers posted 1,545 online job ads for IT occupations from April through June, compared to 1,174 January through March. This is a new peak in employer demand for Macomb’s IT cluster, the highest level of postings seen since analysis began in 2011. IT postings are capturing a large share of employer demand in the county as well, with these 1,545 postings accounting for 11.2% of all online job ads during Q2.
Employment in IT occupations in Macomb County is slightly below the national average. Software developers, applications in Macomb have a location quotient (LQ) of 0.42 meaning that the concentration of this worker here is 42% of the national average. Employment in other IT occupations is closer to the national average, with room for employment growth as employer demand continues to grow. However, with low concentrations finding workers may be difficult for employers unless more talent moves into the area. The growing cluster of IT occupations offer Macomb County workers high-paying jobs, with median wages for the most in-demand occupations ranging between $20 and $40 per hour. Many in-demand IT occupations also offer good wages at the entry level (10th percentile). Most of these high-paying IT jobs require advanced educational attainment like a bachelor’s degree. Regional institutions report high numbers of program completions related to Macomb County’s in-demand jobs. However, 80 completions for software developers, applications in 2013 are not sufficient for the 554 job postings during Q2 2015. Macomb County students will need to be counseled into IT programs or local employers will have to recruit from outside the region to satisfy the continually growing demand.
INFORMATION TECHNOLOGY TOP 10 JOBS LOCATION QUOTIENT AND WAGES
TOP 10 JOBS RECENT GRADUATES AND EDUCATION AND TRAINING REQUIREMENTS
HEALTH CARE WIN’s health care occupation cluster includes jobs related to health care support and practitioners. This cluster is one of Southeast Michigan’s largest with, 243,782 employees in 2014. Employment in this cluster has been consistently growing, more health care workers needed to care for Michigan’s aging population and in response to regulatory and other changes. Registered nurses are routinely the most in-demand job in this cluster.
Registered nurses dominate Health Care cluster job postings in Macomb County, as in much of the rest of the WIN region. Local employers posted 513 online job ads for RNs during Q2 2015, up 22.2% from 399 in Q1. Employer demand for RNs also far outweighs demand in other Health Care occupations. Macomb County employers posted 125 online ads for medical assistants during Q2, 117 for nursing assistants, and 100 for medical records and health information technicians.
HEALTH CARE TOP JOBS
HEALTH CARE ONLINE JOB POSTINGS OVER TIME
Postings in the Health Care occupations cluster increased 22.6% between Q1 and Q2 2015. Macomb County employers posted 1,807 online job ads for Health Care occupations during Q2, compared to 1,399 during Q1. This level of posting represents a new high in employer demand for this cluster since analysis began in 2011. Health Care job postings make up 13.1% of all online job ads in Macomb County.
Many of the most in-demand Health Care occupations are underrepresented in Macomb County. The most in-demand occupation, registered nurses, have a location quotient (LQ) of 0.79, meaning that employment of RNs in Macomb County is only at 79% of the national average. Therefore, the demand seen for RNs can be attributed to a true shortage of supply. Other occupations, like medical assistants (LQ = 1.39) and physical therapists (LQ = 1.21), have a slight competitive advantage in Macomb when compared to the national average (LQ = 1.00). Many of Macomb County’s most in-demand Health Care occupations offer workers living wages (above $15 an hour) at the median. Demand for registered nurses in Macomb is huge, and qualified workers could stand to make $32.95 an hour on average, or $24.67 at entry level (10th percentile). Most Health Care occupations also offer opportunities for wage growth with experience. The highest paying Health Care occupations are the ones that require higher educational attainment. Macomb County employers need RNs and will pay them well; workers need to obtain an associate’s degree but many employers are starting to require a bachelor’s degree for nurses. Physical therapists, physician assistants, and nurse practitioners need a graduate degree to work in the field. Regional institutions report high numbers of completers in programs preparing workers for in-demand careers like registered nurses or medical assistants. However, the 287 RN graduates in 2013 are not enough to fill the 513 open RN positions posted during Q2 2015.
HEALTH CARE TOP 10 JOBS LOCATION QUOTIENT AND WAGES
TOP 10 JOBS RECENT GRADUATES AND EDUCATION AND TRAINING REQUIREMENTS
RETAIL AND HOSPITALITY The retail and hospitality cluster is the largest occupational cluster that WIN analyzes, both in terms of employment and online job postings. This cluster is of very high importance to the region because it is the first to grow when the economy expands and the first to contract in a downturn: It is often a leading indicator. As defined by WIN, the retail and hospitality cluster encompasses all customer service occupations, with skills transferrable across the retail sector, the hotel industry, food and beverage service industry, call centers, and other areas. In 2014, 632,825 individuals were employment in retail and hospitality related occupations in the region. Online job postings for retail salespersons dominated employer demand in the Retail & Hospitality cluster in Macomb County during Q2 2015. The 399 postings for this occupation outpace the next top jobs by at least 1.5. Employers posted 256 ads for first-line supervisors of retail salesworkers, 245 ads for wholesale and manufacturing sales representatives, and 240 for customer service representatives.
RETAIL AND HOSPITALITY TOP JOBS
RETAIL AND HOSPITALITY ONLINE JOB POSTINGS OVER TIME
Postings in the Retail & Hospitality cluster grew 8.8% between Q1 and Q2 2015. Postings for this cluster peaked in Q3 2013 at 2,946, and the 2,514 postings during Q2 2015 are nearing this level. Retail is an important cluster for Macomb County; the online job postings in this cluster account for 18.2% of all postings this quarter.
Macomb County has a slight competitive edge in many Retail & Hospitality occupations when compared to the national average. For example, retail salespersons in Macomb have a location quotient (LQ) of 1.16 meaning that the concentration of this type of worker is 1.16 times, or 16% higher than, the national average. Other Retail occupations also have highly concentrated employment in Macomb County. Occupations in the Retail & Hospitality cluster compensate Macomb County workers anywhere from $9.11 to $32.06 an hour, at the median. Careers in wholesale and purchasing are higher paying. Wholesale and manufacturing sales representatives can make $23.83 an hour, on average, and purchasing agents can make $32.06 an hour. Entry level (10th percentile) wages are less competitive in the Retail & Hospitality cluster. Most occupations in the Retail & Hospitality cluster do not require more than a high school diploma, require little previous experience and only some on-thejob training of their workers. Many degrees can prepare workers for high level retail jobs in sales and marketing, so analyzing regional related degree completions is not very applicable to this occupation cluster.
RETAIL AND HOSPITALITY TOP 10 JOBS LOCATION QUOTIENT AND WAGES
TOP 10 JOBS RECENT GRADUATES AND EDUCATION AND TRAINING REQUIREMENTS
SECTION THREE
LABOR MARKET AND DEMAND SUMMARY
Employment in Macomb County grew 1.0% between Q1 2015 and Q2, adding 3,665 new jobs. The county labor force grew slightly (0.1%) between quarters. Because employment is growing at a faster rate than labor force participation, the 11.9% decrease in unemployment can be attributed to people gaining jobs. Between 1st and 2nd quarters 2015 Macomb County’s unemployment rate dropped from 6.5% to 5.7%. Total job postings in Macomb County increased 15.1% between Q1 2015 and Q2. Online job ads are up to 13,819 during Q2, from 11,737 during Q1, the highest level of postings for Macomb County since analysis began in 2011. This large increase and new peak in employer demand is consistent with the increased demand seen in almost all occupational clusters analyzed by WIN in Macomb County. The occupational clusters analyzed by WIN captured 61.1% of all online job postings in Macomb County this quarter. Heavy and tractor-trailer truck drivers were displaced from the top in-demand job spot in Macomb County during Q1 2015, and now rank 4th during Q2 (478 online job ads). Software developers, applications are the most in-demand occupation (553 online job postings) before Q1’s top job, registered nurses (513 online job postings this quarter).
SECTION FOUR DATA NOTES AND SOURCES
DATA NOTES AND SOURCES SPECIAL DATA NOTE • Due to changes in Burning Glass’s aggregation, parsing, and deduplication methods implemented in December 2014, data from previously released reports should not be compared to data in reports starting in Q4 2014 and moving forward. For the Q4 2014 report, the WIN team re-gathered and analyzed all of the data (postings from 2011 through 2014) to ensure that all numbers are up-to-date. If you would like information on the differences between the updated data and data from previous reports, please contact WIN's Research Director Colby Spencer Cesaro at colby.cesaro@win-semich.org. • Wage data that is not labeled as a national average is specific to each report's geography. For example, wage data reported in the WIN Region report is averaged across the 9-county WIN Region. Data in the Wayne County report is wage data solely for Wayne County. • All numbers included in this report are the correct and updated data. • Wage and educational attainment data available varies depending on the occupation. All wage and educational attainment data provided is for the 6digit SOC code. Some 6-digit codes do not have education or wage data available, in this case we leave the information blank. • Educational attainment data available refers to the share of the current workforce in each bracket, not what is shown in postings. Employers may require different educational attainment than what is in this report. • Quarterly reports: Due to a data update in Burning Glass Technologies’ Labor Insight tool, comparisons should not be made between data from each quarterly report and the annual review data should not be compared to data from previous quarterly reports. • Adjustments to the labor force information were also made to reflect and incorporate updated inputs, re-estimation, and controlling to new statewide totals. Much of the information related to monthly and quarterly employment is updated several months after the initial release. More information can be found here: http://www.bls.gov/lau/launews1. htm
DATA NOTES AND SOURCES UNDERSTANDING DEMAND VS EMPLOYMENT • Employment refers to actual employment numbers—the number of people in jobs—in targeted industries or occupations. • Demand refers to statistics derived from employer job postings, which indicate the potential for employment but may or may not materialize into actual jobs. • Job posting-related demand, as presented in this report, is measured by online job postings. Employer demand may be larger than what is highlighted in this report if employers find talent by other means.
DATA SOURCES • Labor market demand data for this report was compiled using Burning Glass Technologies’ Labor Insight Tool, and analyzed by the Workforce Intelligence Network. Other data sources include, the Bureau of Labor Statistics, and Economic Modeling Specialists Inc. (EMSI). Check out our website http://www.winsemich.org for more data and detailed information about our sources.
UNDERSTANDING CLUSTERS • Rather than focusing on talent demand within industries (types of firms), WIN generally emphasizes exploring talent demand based on occupations, including the skills, educational credentials, and experience needed to work in them. • WIN research examines industry data, as the health of companies can be useful for economic development purposes. However, shifting focus from industry to occupation is important as different types of occupations with extremely different skillsets may work within and across industries. For example, accountants, computer specialists, and engineers all may work in the manufacturing industry. • By clustering occupations, the talent system can identify employer demand for particular skillsets across multiple industry types and develop a response through training and pipeline development to meet that demand.
BOARD ORGANIZATIONS
FOR MORE INFORMATION ABOUT RESEARCH AND DATA, VISIT OUR WEBSITE: WWW.WIN-SEMICH.ORG/DATA-RESEARCH