CommCorpLMIpresentation050908

Slide 1:My name is Jonathan Latner This presentation does cover a lot of material, but we have been given the luxury of time, so please feel free to interrupt You’ll notice as I deliver the presentation, especially at the beginning that I will ask, “does that make sense a lot” This is for two reasons: Nervous Habit Because I want to make sure what I’m saying makes sense because I am here for youMy name is Jonathan Latner This presentation does cover a lot of material, but we have been given the luxury of time, so please feel free to interrupt You’ll notice as I deliver the presentation, especially at the beginning that I will ask, “does that make sense a lot” This is for two reasons: Nervous Habit Because I want to make sure what I’m saying makes sense because I am here for you

Slide 2:Understanding Labor Market Trends and Identifying Career Pathway for Youth

Skills Gap Income Inequality Critical Industries Healthcare Retail Manufacturing Hot Jobs Skills gap - The difference between industry demand and occupational supply Structural reasons for the difficulty of moving individuals with barriers to work into jobs and out of the low wage/low skill workforce Focus on three industries What are the good jobs now? Finally, this process is difficult, so hopefully this will give you some perspective as to why and then we will end on a positive note Skills gap - The difference between industry demand and occupational supply Structural reasons for the difficulty of moving individuals with barriers to work into jobs and out of the low wage/low skill workforce Focus on three industries What are the good jobs now? Finally, this process is difficult, so hopefully this will give you some perspective as to why and then we will end on a positive note

Slide 3:Massachusetts Employment Trends

Source: Bureau of Labor Statistics CES Data, Seasonally Adjusted Data January, 2001 – December, 2007Employment is recovering from recession, but has not equaled its Peak: Feb, 2001 MA is 1 of 6 states that has not reached pre-recessionary employment numbers Recession from December 2000 – March 2003 Employment reached its nadir in December 2003 Growth since then has been SLOW MA is 1 of 6 states to not add jobs during this period (more than its peak) Second only to Michigan –6% to –3%Recession from December 2000 – March 2003 Employment reached its nadir in December 2003 Growth since then has been SLOW MA is 1 of 6 states to not add jobs during this period (more than its peak) Second only to Michigan –6% to –3%

Slide 4:Do We Have Enough Workers Now? Many people are still seeking work

In December ’07, 90,800 fewer jobs than at peak Feb ’01 From 2000 to 2006, virtually no population growth From Q1 ’01 to Q1 ’07: 71,790 more “unemployed” From 2000 to 2006* 21,100 more working part- time 15,200 more marginally attached –stopped looking for jobs recently: 3,000 more “discouraged” 12,200 more stopped due to family or transportation reasons From 2000 to 2005 58,316 more “non-employer” businesses in 2005 compared to 2000 *Note: Based on 12 month averages from Current Population Survey (CPS) Sources: LAUS, Census Projections, and Census Nonemployer Statistics Fewer jobs, but population has maintained Report from the Nellie Mae Foundation that details decline of high-skill workers and increase of low-skill one More unemployed More people who are underemployed Working Part-time, economic reasons = 54,700//75,800 More people who are not even looking for work discouraged = 4,600// 7,600 other reasons =12,300// 24,500 Unemployed –only includes those who have looked for work in the previous 4 weeks Those who have not looked for work in the previous 4 weeks and are not employed are not considered to be in the labor force. Discouraged –those out of a job– have stopped looking for a job –but will likely start looking as economy picks up (or as they pick themselves up!) Response: As more people have been able to find work with others they have gone into work for themselves. The number of nonemployer business has increased 10%. Revenues have increased 16% with average wages about what it is for the state ($50,000) The truth is many people have left Massachusetts, but there is population stability due to an influx of foreign-born immigrants. Discuss educational component of this populationFewer jobs, but population has maintained Report from the Nellie Mae Foundation that details decline of high-skill workers and increase of low-skill one More unemployed More people who are underemployed Working Part-time, economic reasons = 54,700//75,800 More people who are not even looking for work discouraged = 4,600// 7,600 other reasons =12,300// 24,500 Unemployed –only includes those who have looked for work in the previous 4 weeks Those who have not looked for work in the previous 4 weeks and are not employed are not considered to be in the labor force. Discouraged –those out of a job– have stopped looking for a job –but will likely start looking as economy picks up (or as they pick themselves up!) Response: As more people have been able to find work with others they have gone into work for themselves. The number of nonemployer business has increased 10%. Revenues have increased 16% with average wages about what it is for the state ($50,000) The truth is many people have left Massachusetts, but there is population stability due to an influx of foreign-born immigrants. Discuss educational component of this population

Slide 5:Massachusetts Employment by Industry

Source: Bureau of Labor Statistics, ES-202 2006 Employment Industry Distribution Healthcare is the largest industry by far 25% larger than Retail 50% larger than education or manufacturing Largest 4 industries comprise over 50% of all employmentIndustry Distribution Healthcare is the largest industry by far 25% larger than Retail 50% larger than education or manufacturing Largest 4 industries comprise over 50% of all employment

Slide 6:Massachusetts Employment Tends by Industry

2000 - 2004 2004 - 2006 Source: Bureau of Labor Statistics, ES-202 Slowdown (addressed earlier) affected nearly every industry, but particularly manufacturing Economy picked up in 2004 driven by: 1) Healthcare and education which continued to add jobs 2) Professional Business Services (2 sectors) which recovered their previous job losses and added jobs Many individuals still struggling employment wise which supports the chart, shown earlier, on total employmentSlowdown (addressed earlier) affected nearly every industry, but particularly manufacturing Economy picked up in 2004 driven by: 1) Healthcare and education which continued to add jobs 2) Professional Business Services (2 sectors) which recovered their previous job losses and added jobs Many individuals still struggling employment wise which supports the chart, shown earlier, on total employment

Slide 7:Massachusetts Projected Employment Growth and Current Job Openings

Source: CommCorp Analysis of New England Economic Partnership Data Source: Department of Workforce Development = Net New Jobs in Future Includes Replacement Jobs and New Jobs = Current Hiring Needs Massachusetts Job Vacancies, Q4, 2006 (‘000) Educ. & Health Hotels & Food Other Services Construction Finance Government Trade, Trans Information Prof. & Bus. Svcs. Manfg Where are the jobs going to be in the future? Let me look in my crystal ball – job vacancies versus job projections Give them a number or give them a date, but never both Let me take the opportunity to state a theme which will come up throughout: you know more about what is going on in your neighborhood, city, and region than I do never underestimate the “vibes” that you are getting Education, Healthcare, Professional and Business Services Hotels and Food Where are the jobs now Education and Health (sign of growth) TTR (sign of turnover) Manufacturing whats going on here To be discussed later, but evidence of skills gap between the skills of would be applicants and the demands of employersWhere are the jobs going to be in the future? Let me look in my crystal ball – job vacancies versus job projections Give them a number or give them a date, but never both Let me take the opportunity to state a theme which will come up throughout: you know more about what is going on in your neighborhood, city, and region than I do never underestimate the “vibes” that you are getting Education, Healthcare, Professional and Business Services Hotels and Food Where are the jobs now Education and Health (sign of growth) TTR (sign of turnover) Manufacturing whats going on here To be discussed later, but evidence of skills gap between the skills of would be applicants and the demands of employers

Slide 8:Understanding Labor Market Trends and Identifying Career Pathway for Youth

Skills Gap Income Inequality Critical Industries Healthcare Retail Manufacturing Hot Jobs Income Inequality Okay, the hard part of the presentation, we’ve laid some groundwork, talked about some trends, now lets take a step back and look at really, really broad 30,000 feet trends Wage distribution versus wage inequalityIncome Inequality Okay, the hard part of the presentation, we’ve laid some groundwork, talked about some trends, now lets take a step back and look at really, really broad 30,000 feet trends Wage distribution versus wage inequality

Slide 9:Over the course of more than three decades, wage growth was weak to nonexistent at the bottom of the distribution, strong at the top of the distribution, and modest at the middle. While real hourly earnings of workers within the bottom 30 percent of the earnings distribution rose by no more than 10 percentage points, earnings of workers at the 90th percentile rose by more than 40 percentage points. Median earnings are about $14.5 an hour or $30,000 Why? 2 reasons: Social contract theory Decline in the value of minimum wage Decline in the taxes rate of the top income tax bracket Skill Biased Technological ChangeOver the course of more than three decades, wage growth was weak to nonexistent at the bottom of the distribution, strong at the top of the distribution, and modest at the middle. While real hourly earnings of workers within the bottom 30 percent of the earnings distribution rose by no more than 10 percentage points, earnings of workers at the 90th percentile rose by more than 40 percentage points. Median earnings are about $14.5 an hour or $30,000 Why? 2 reasons: Social contract theory Decline in the value of minimum wage Decline in the taxes rate of the top income tax bracket Skill Biased Technological Change

Slide 10:Changes in Real Annual Wages by Percentile of Income Earner, 1989 - 2006

Source: Analysis of Current Population Survey 1990 – 2007 using IPUMS Inflation Adjusted to 2006 Dollars Note: Income from wage and salary jobs for individuals working full time (35 or more hours per week), full year (50 or more weeks per years) who are over the age of 18.

Slide 11:The value of the minimum wage peaked in the late 1960s Now down nearly $4 or 1/3rdThe value of the minimum wage peaked in the late 1960s Now down nearly $4 or 1/3rd

Slide 12:Decline in the top income tax bracket If we went back further in time this 71% figure would be even higher Broadly, these support a decline in the stability of a “wage floor” the minimum wage and the “wage ceiling” allowing the market to work more freely resulting in increased inequality Before going on to the next chart Skill Biased Technological Change Labor Demand Curve New Labor Demand Curve As technology increasingly affected the work place, jobs in the middle were cut out Emphasizes high skill and low skill work, de-emphasizes occupations requiring moderate skills Decline in the top income tax bracket If we went back further in time this 71% figure would be even higher Broadly, these support a decline in the stability of a “wage floor” the minimum wage and the “wage ceiling” allowing the market to work more freely resulting in increased inequality Before going on to the next chart Skill Biased Technological Change Labor Demand Curve New Labor Demand Curve As technology increasingly affected the work place, jobs in the middle were cut out Emphasizes high skill and low skill work, de-emphasizes occupations requiring moderate skills

Slide 13:This is showing growth in low skill and high skill occupations, using education as a proxy for skill along with a DECLINE in mid-skill occupations This is a change from a demand curve where the more education one had, the better “protection” they had against losing a jobs, continuously so What does this mean? why it is comparatively easier to get a low-wage job, and why it is increasingly difficult to move out of that wage category Some would argue that the “welfare trap” that welfare was supposed to fix has been replaced by a “low-wage job” trap This chart lends explanatory power to that sentiment Why does this affect wages? Labor Supply Curve This is showing growth in low skill and high skill occupations, using education as a proxy for skill along with a DECLINE in mid-skill occupations This is a change from a demand curve where the more education one had, the better “protection” they had against losing a jobs, continuously so What does this mean? why it is comparatively easier to get a low-wage job, and why it is increasingly difficult to move out of that wage category Some would argue that the “welfare trap” that welfare was supposed to fix has been replaced by a “low-wage job” trap This chart lends explanatory power to that sentiment Why does this affect wages? Labor Supply Curve

Slide 14:Real Average Wage by Educational Attainment of Full-time, Full-year Massachusetts Workforce

Source: Analysis of 1990 Census and 2006 American Community Survey using IPUMS Note: Income from wage and salary jobs for individuals working full time (35 or more hours per week), full year (50 or more weeks per years) who are over the age of 18.

Slide 15:Understanding Labor Market Trends and Identifying Career Pathway for Youth

Skills Gap Income Inequality Critical Industries Healthcare Retail Manufacturing Hot Jobs

Slide 16:What is included in the “Healthcare” sector?

Source: Bureau of Labor Statistics Quarterly Census of Employment & Wages I think like any good researcher, I like to begin by defining my terms beginning with what we mean by the Healthcare industry. As you can see here, its divided into 4 major sector’s. The ones in red are those that people typically think of when thinking of Healthcare, the ones in white are those that are not. Ambulatory Care—doctor’s and dentists office, etc. Essentially, the best way to characterize the Ambulatory Care industry is that it covers outpatient care or anything you walk into and out of in a day. Includes medical labs which are companies that provide body fluid analysis and diagnostic imaging or x-ray services, among others Hospitals—not only general hospitals, but also psychiatric and rehabilitation hospitals, as well as substance abuse treatment facilities Nursing Care Facilities—Except for mental health facilities, this category describes residential care facilities for the elderly. Social Assistance—This is the sector that many people do not typically think about when they think of healthcare, but the sector provides a wide array of social assistance to individuals of all ages, from children’s day care centers to family planning centers to vocational, as opposed to educational, training centers. All together, these comprise the healthcare and social assistance industry. Just to note before continuing, when I say the healthcare industry from now on, I am including social assistance in there…its just a little easier to say.I think like any good researcher, I like to begin by defining my terms beginning with what we mean by the Healthcare industry. As you can see here, its divided into 4 major sector’s. The ones in red are those that people typically think of when thinking of Healthcare, the ones in white are those that are not. Ambulatory Care—doctor’s and dentists office, etc. Essentially, the best way to characterize the Ambulatory Care industry is that it covers outpatient care or anything you walk into and out of in a day. Includes medical labs which are companies that provide body fluid analysis and diagnostic imaging or x-ray services, among others Hospitals—not only general hospitals, but also psychiatric and rehabilitation hospitals, as well as substance abuse treatment facilities Nursing Care Facilities—Except for mental health facilities, this category describes residential care facilities for the elderly. Social Assistance—This is the sector that many people do not typically think about when they think of healthcare, but the sector provides a wide array of social assistance to individuals of all ages, from children’s day care centers to family planning centers to vocational, as opposed to educational, training centers. All together, these comprise the healthcare and social assistance industry. Just to note before continuing, when I say the healthcare industry from now on, I am including social assistance in there…its just a little easier to say.

Slide 17:Proportion of Total Massachusetts Workforce Employed by Healthcare Sub-Sector, 2006

Sector 2006 Employment As I just described, Healthcare breaks down into the four major sub-sectors: This side chart illustrates the size of the individual sub-sectors. For example, hospitals, the largest sub-sector, covers nearly 40% of all healthcare employment It is so large, that if it were an industry unto itself would be roughly the size of the finance industry (172,238) so that gives you some idea of the size of this one sectorAs I just described, Healthcare breaks down into the four major sub-sectors: This side chart illustrates the size of the individual sub-sectors. For example, hospitals, the largest sub-sector, covers nearly 40% of all healthcare employment It is so large, that if it were an industry unto itself would be roughly the size of the finance industry (172,238) so that gives you some idea of the size of this one sector

Slide 18:Healthcare Industry Group Level Employment (2006) and Trends (2000 – 2006)

2006 Employment Change from 2000 Source: Bureau of Labor Statistics Quarterly Census of Employment & Wages The largest industries by employment in the Healthcare and Social Assistance sector are general hospitals (150,508), nursing homes (57,824), and doctor’s offices (47,739). These three account for 55% of the entire Healthcare and Social Assistance Healthcare added 29,000 jobs between 2001 – 2005. Most of that increase came from the growth in General Hospitals General Hospitals employ slightly less than 1/3rd of the healthcare industry As you can see here nursing homes and outpatient care centers shed jobs between 2001 and 2005. To many people, this is at odds with what they have been hearing. I am pointing this out to illustrate a point about using these numbers as a basis of knowledge, not the end all, be all answer. Anecdotal evidence describes the increasing importance in these two industries to care for ageing patients or those not needing in-patient hospital stays and yet, as it says here, these two industries have lost jobs. Is this true!!! Or, is this an example of a consolidating healthcare industry, i.e. general medical hospitals opening satellite offices or taking over independently owned outpatient centers so that hospital growth is masking growth in other sub-sectors? I don’t know, but anytime you’re looking at this type of information always think about whether it makes sense. If it doesn’t, ask questions. Message Hospitals are the largest employers and fastest growing Don’t always believe what the data says The largest industries by employment in the Healthcare and Social Assistance sector are general hospitals (150,508), nursing homes (57,824), and doctor’s offices (47,739). These three account for 55% of the entire Healthcare and Social Assistance Healthcare added 29,000 jobs between 2001 – 2005. Most of that increase came from the growth in General Hospitals General Hospitals employ slightly less than 1/3rd of the healthcare industry As you can see here nursing homes and outpatient care centers shed jobs between 2001 and 2005. To many people, this is at odds with what they have been hearing. I am pointing this out to illustrate a point about using these numbers as a basis of knowledge, not the end all, be all answer. Anecdotal evidence describes the increasing importance in these two industries to care for ageing patients or those not needing in-patient hospital stays and yet, as it says here, these two industries have lost jobs. Is this true!!! Or, is this an example of a consolidating healthcare industry, i.e. general medical hospitals opening satellite offices or taking over independently owned outpatient centers so that hospital growth is masking growth in other sub-sectors? I don’t know, but anytime you’re looking at this type of information always think about whether it makes sense. If it doesn’t, ask questions. Message Hospitals are the largest employers and fastest growing Don’t always believe what the data says

Slide 19:Regional Employment in the Healthcare Industry

Source: Mass. Department of Workforce Development Quarterly Census of Employment & Wages 2006 Employment Healthcare comprises 15% of all state jobs and, with the exception Metro South/West which has a lower share, most of the regions have roughly the same percentage of healthcare employment as the state. Similarly, except for Metro South/West, Healthcare is the one of the top 3 largest employers in every region.Healthcare comprises 15% of all state jobs and, with the exception Metro South/West which has a lower share, most of the regions have roughly the same percentage of healthcare employment as the state. Similarly, except for Metro South/West, Healthcare is the one of the top 3 largest employers in every region.

Slide 20:Regional Structure of the Healthcare Industry

Source: Mass. Department of Workforce Development Quarterly Census of Employment & Wages This chart illustrates the sub-sectoral distribution of the healthcare industry With the exception of Boston, there is not a regional variation in hospital employment across Massachusetts' eight regions. Most have the same proportion of employment as Massachusetts The key difference is the Boston, 60% of healthcare employment is in hospitals, nearly twice that for any other region. This is due to the concentration of teaching and research hospitals in Boston Massachusetts General Hospital and Brigham and Women’s Hospital alone employ over 30,000 people. Berkshires has a much higher percentage in the Nursing Care sub-industry (33%). However, compared to the other regions, has a much lower percentage of its total employment in the Nursing Home and Residential Care sub-sector. This chart illustrates the sub-sectoral distribution of the healthcare industry With the exception of Boston, there is not a regional variation in hospital employment across Massachusetts' eight regions. Most have the same proportion of employment as Massachusetts The key difference is the Boston, 60% of healthcare employment is in hospitals, nearly twice that for any other region. This is due to the concentration of teaching and research hospitals in Boston Massachusetts General Hospital and Brigham and Women’s Hospital alone employ over 30,000 people. Berkshires has a much higher percentage in the Nursing Care sub-industry (33%). However, compared to the other regions, has a much lower percentage of its total employment in the Nursing Home and Residential Care sub-sector.

Slide 21:I want to begin transition into healthcare occupations Up until this point we have been talking about the “industrial distribution” of Healthcare, breaking up healthcare into smaller and smaller sub-industry groupings Now, I want to discuss how healthcare can be described by the occupations that it employs Remember, industries are where you work; occupations are what you do. Industries employ many different types of occupations. Just about half of the people who work in the sector do healthcare jobs or belong to "healthcare occupations," whether professional (requiring at least an Associate's degree) or healthcare support workers (requiring a certificate or completion of a job-training program). Healthcare professionals include physicians, registered nurses (RN), and licensed practical nurses (LPN) With rare exception occupations requiring at least an Associates Degree While the healthcare support worker group comprises occupations such as certified nurses' assistants (CNA), home health aides, medical assistants, and dental assistants. Occupations requiring a High School Diploma and/or a professionally recognized certificate Non-healthcare workers employed in the Healthcare and Social Assistance sector include administrative workers, daycare teachers, social service workers, and food preparation workers. Message This chart illustrates that one does not need to be necessarily interested in “healthcare occupations” in order to look for a job in the healthcare industry I want to begin transition into healthcare occupations Up until this point we have been talking about the “industrial distribution” of Healthcare, breaking up healthcare into smaller and smaller sub-industry groupings Now, I want to discuss how healthcare can be described by the occupations that it employs Remember, industries are where you work; occupations are what you do. Industries employ many different types of occupations. Just about half of the people who work in the sector do healthcare jobs or belong to "healthcare occupations," whether professional (requiring at least an Associate's degree) or healthcare support workers (requiring a certificate or completion of a job-training program). Healthcare professionals include physicians, registered nurses (RN), and licensed practical nurses (LPN) With rare exception occupations requiring at least an Associates Degree While the healthcare support worker group comprises occupations such as certified nurses' assistants (CNA), home health aides, medical assistants, and dental assistants. Occupations requiring a High School Diploma and/or a professionally recognized certificate Non-healthcare workers employed in the Healthcare and Social Assistance sector include administrative workers, daycare teachers, social service workers, and food preparation workers. Message This chart illustrates that one does not need to be necessarily interested in “healthcare occupations” in order to look for a job in the healthcare industry

Slide 22:It can also go the other way Now we are going to transition from discussing the industrial make-up of Healthcare; the column on the left in red…to the occupational make-up of healthcare, the row in blue across the top. The left column is where people work…the top row is what people do, allowing us to look at the industry make up of occupations For example, 12% of all administrative occupations work in Healthcare 22% of all personal care workers (your child care and home-care workers), 11% of all buildings & grounds workers (your janitors & maids), 12% of all physical scientists (your researchers), and on down the line. Now, we’ll look vertically at the industry breakdown of healthcare occupations that are divided into two major categories: Practitioners and Support Workers: As you can see, a significant majority of these occupations work in the healthcare industry, but there are those that work outside of it In education as teaching faculty In government as policy makers or emergency responders Message: 1) Healthcare occupations work in industries outside of healthcareIt can also go the other way Now we are going to transition from discussing the industrial make-up of Healthcare; the column on the left in red…to the occupational make-up of healthcare, the row in blue across the top. The left column is where people work…the top row is what people do, allowing us to look at the industry make up of occupations For example, 12% of all administrative occupations work in Healthcare 22% of all personal care workers (your child care and home-care workers), 11% of all buildings & grounds workers (your janitors & maids), 12% of all physical scientists (your researchers), and on down the line. Now, we’ll look vertically at the industry breakdown of healthcare occupations that are divided into two major categories: Practitioners and Support Workers: As you can see, a significant majority of these occupations work in the healthcare industry, but there are those that work outside of it In education as teaching faculty In government as policy makers or emergency responders Message: 1) Healthcare occupations work in industries outside of healthcare

Slide 23:2001 - 2006 Occupational Pay Structure

Source: Bureau of Labor Statistics Occupational Employment Statistics1 A brief slide here on occupational wages for healthcare occupations Healthcare professionals earn about 60% more than the state median salary While Healthcare Support workers earn about 25% less This is not surprising given the amount of education required to attain most professional jobs The pace of growth is notable and is representative of an ongoing trend 1) Highly technical skilled occupations, like healthcare professionals, earn more now 2) but the rate of increase has outpaced lower skill occupations Education pays more now and pays more over timeA brief slide here on occupational wages for healthcare occupations Healthcare professionals earn about 60% more than the state median salary While Healthcare Support workers earn about 25% less This is not surprising given the amount of education required to attain most professional jobs The pace of growth is notable and is representative of an ongoing trend 1) Highly technical skilled occupations, like healthcare professionals, earn more now 2) but the rate of increase has outpaced lower skill occupations Education pays more now and pays more over time

Slide 24:Registered nurses (RNs) and licensed practical nurses (LPNs) in Massachusetts have roughly the same age distribution, with both groups older than either nursing aides or all workers in Massachusetts as of the 2000 census. More than a quarter of RNs (28%) and LPNs (31%) in the state are 50 years or older, compared to only 24% of all workers. Only about a third of nurses are under 40, while half of all Massachusetts workers are. The aging of the nursing workforce may pose a problem for the Commonwealth in the future. It is interesting to note, however, that the age distribution of nursing aides is representative of all workers in the Commonwealth. Ageing workforce, we need to bring them back and keep themRegistered nurses (RNs) and licensed practical nurses (LPNs) in Massachusetts have roughly the same age distribution, with both groups older than either nursing aides or all workers in Massachusetts as of the 2000 census. More than a quarter of RNs (28%) and LPNs (31%) in the state are 50 years or older, compared to only 24% of all workers. Only about a third of nurses are under 40, while half of all Massachusetts workers are. The aging of the nursing workforce may pose a problem for the Commonwealth in the future. It is interesting to note, however, that the age distribution of nursing aides is representative of all workers in the Commonwealth. Ageing workforce, we need to bring them back and keep them

Slide 25:The further down the nursing career ladder you go, the more racially and ethnically diverse the occupation is. According to the 2000 Census for Massachusetts, the occupations of nursing aide and home health aide employ proportionally five times as many African Americans and twice as many Hispanics as the Commonwealth as a whole. Registered nurses (RNs) are the least diverse among the three occupations depicted here. For example, only 1% of RNs are Hispanic compared to the 5% of the state’s employees who are. Note, I’ve done this analysis using the 2006 American Community Survey and found that the proportions for all of these are nearly identical to the 2000 Census with the exception of LPNs who have decreased their proportion of Whites (85 to 74) while African American’s have increased (9 to 20) As I suggested earlier the foreign – born population is increasing and so as employers are thinking about where the future employees will come from it is important to look beyond the “traditional workforce.” The further down the nursing career ladder you go, the more racially and ethnically diverse the occupation is. According to the 2000 Census for Massachusetts, the occupations of nursing aide and home health aide employ proportionally five times as many African Americans and twice as many Hispanics as the Commonwealth as a whole. Registered nurses (RNs) are the least diverse among the three occupations depicted here. For example, only 1% of RNs are Hispanic compared to the 5% of the state’s employees who are. Note, I’ve done this analysis using the 2006 American Community Survey and found that the proportions for all of these are nearly identical to the 2000 Census with the exception of LPNs who have decreased their proportion of Whites (85 to 74) while African American’s have increased (9 to 20) As I suggested earlier the foreign – born population is increasing and so as employers are thinking about where the future employees will come from it is important to look beyond the “traditional workforce.”

Slide 26:Understanding Labor Market Trends and Identifying Career Pathway for Youth

Skills Gap Income Inequality Critical Industries Healthcare Retail Manufacturing Hot Jobs

Slide 27:2006 Distribution of the Retail Industry

Source: Bureau of Labor Statistics Quarterly Census of Employment & Wages, 2006 Unlike HC, what we think of as retail is retail Grocery stores Clothing stores Electronics and appliance stores However, within those three large categories there are vastly different cultures Grocery stores 24/7 Employees: part-time 60-80% vs. full-time (32 hours) Full-time = good wages, good benefits (unionization) Service = convenience Electronics and appliance stores Seasonal Employees: commission vs. wage/salary base; or Sales/technician vs. clerks Service = “attachments,” but less product knowledge Lots of turnover, but lots of retention B.A. as a proxy for skills, unnecessarily Who gets the jobs Unlike HC, what we think of as retail is retail Grocery stores Clothing stores Electronics and appliance stores However, within those three large categories there are vastly different cultures Grocery stores 24/7 Employees: part-time 60-80% vs. full-time (32 hours) Full-time = good wages, good benefits (unionization) Service = convenience Electronics and appliance stores Seasonal Employees: commission vs. wage/salary base; or Sales/technician vs. clerks Service = “attachments,” but less product knowledge Lots of turnover, but lots of retention B.A. as a proxy for skills, unnecessarily Who gets the jobs

Slide 28:2006 Occupational Distribution – Retail Industry

Source: Bureau of Labor Statistics Quarterly Occupational Employment Statistics, 2006 Occupational distribution Largest is: Sales Office/admin = back office Transportation When you think of retail, you think of salesOccupational distribution Largest is: Sales Office/admin = back office Transportation When you think of retail, you think of sales

Slide 29:Distribution of Sales Occupations – Retail Industry

Source: Bureau of Labor Statistics Quarterly Occupational Employment Statistics, 2006 When you think of sales, you think of salespersons This is the largest occupation in the state, followed by RNs Followed by cashiers and first-line supervisors Sales occupations are concentrated among these 3When you think of sales, you think of salespersons This is the largest occupation in the state, followed by RNs Followed by cashiers and first-line supervisors Sales occupations are concentrated among these 3

Slide 30:Median Salary of Sales Occupations – Retail Industry

Source: Bureau of Labor Statistics Quarterly Occupational Employment Statistics, 2006 The median salary of salespersons is quite low Note: this is based upon a full year hourly wage, which as we all know is not what everyone works, so total salary is probably less However, the third largest category, supervisors earn a fairly decent salary There is 1 supervisor for every 8 clerks To move up is incredibly hard, but it is an option Moreover, most supervisors do not require much more than experience and a HS diploma This is an opportunity, albeit a difficult one to achieve The median salary of salespersons is quite low Note: this is based upon a full year hourly wage, which as we all know is not what everyone works, so total salary is probably less However, the third largest category, supervisors earn a fairly decent salary There is 1 supervisor for every 8 clerks To move up is incredibly hard, but it is an option Moreover, most supervisors do not require much more than experience and a HS diploma This is an opportunity, albeit a difficult one to achieve

Slide 31:Understanding Labor Market Trends and Identifying Career Pathway for Youth

Skills Gap Income Inequality Critical Industries Healthcare Retail Manufacturing Hot Jobs

Slide 32:“The rumors of my death are greatly exaggerated!”-- Mark Twain

Slide 33:Selected regions in Massachusetts have 15-19% employment in manufacturing

Despite declines, Manufacturing is still very important to many regions, especially in the Northeast Despite declines, Manufacturing is still very important to many regions, especially in the Northeast

Slide 34:Regions that Share Borders Tend to Have the Same Largest Manufacturing Sub-Sector

Source: Massachusetts Department of Workforce Development, Quarterly Census of Employment & 2006 Largest (Employment) Manufacturing Sub-Sector by Workforce Investment Area, 2006 I know this is small, but it shows the largest sub-sector within each region When you see this, you can see that regions that share borders also tend to share industry concentration Miscellaneous Jewelry and silverware manufacturing Plastics Computer and Electronic Product Laboratory instruments Chips Radar systemsI know this is small, but it shows the largest sub-sector within each region When you see this, you can see that regions that share borders also tend to share industry concentration Miscellaneous Jewelry and silverware manufacturing Plastics Computer and Electronic Product Laboratory instruments Chips Radar systems

Slide 35:Massachusetts exports machinery, medical/surgical instruments, pharmaceuticals and chemicals

Of course the types of goods that Massachusetts exports have changed radically in that time period. Part of the reason for the growth is that exports that did not exist 10 years ago are now bringing in billions of dollars in revenue. This is chart illustrates, I think, the key difference between the manufacturing industry of today versus 10 years ago Notice the huge increases in Chemicals, Pharmaceutical Products, and Medical or Surgical Instruments. Notice Industrial Machines and Electrical Machinery. These two export categories are significantly represented by the electrical manufacturing sub-sector which is, yes, still the largest Manufacturing sub-sector, but has also experienced the most declines in Massachusetts (2001 – 2005) Smaller companies are increasingly leveraging technological advances to manufacture and sell things whose values are increasingly valuable. Manufacturing has gone through a virtual tectonic shift as it has moved away from production that requires labor and towards production that requires technology. This shift has significantly diminished the job prospects for low-skill production workers, but has enhanced the value for those with the skills in precision technology that newer products, such as medical instruments, blood plasma, etc. require. Of course the types of goods that Massachusetts exports have changed radically in that time period. Part of the reason for the growth is that exports that did not exist 10 years ago are now bringing in billions of dollars in revenue. This is chart illustrates, I think, the key difference between the manufacturing industry of today versus 10 years ago Notice the huge increases in Chemicals, Pharmaceutical Products, and Medical or Surgical Instruments. Notice Industrial Machines and Electrical Machinery. These two export categories are significantly represented by the electrical manufacturing sub-sector which is, yes, still the largest Manufacturing sub-sector, but has also experienced the most declines in Massachusetts (2001 – 2005) Smaller companies are increasingly leveraging technological advances to manufacture and sell things whose values are increasingly valuable. Manufacturing has gone through a virtual tectonic shift as it has moved away from production that requires labor and towards production that requires technology. This shift has significantly diminished the job prospects for low-skill production workers, but has enhanced the value for those with the skills in precision technology that newer products, such as medical instruments, blood plasma, etc. require.

Slide 36:There are more, more educated workers and less, less educated workers in manufacturing

2000 Census PUMS Data, 5% sample 2006 ACS PUMS Data Population aged 25 or older Change in the Educational Distribution of Manufacturing Workers Since 2000, the educational attainment of manufacturing workforce has changed There are fewer less educated workers and more, more educated workers Since 2000, the educational attainment of manufacturing workforce has changed There are fewer less educated workers and more, more educated workers

Slide 37:Most jobs are production jobs:In Mass. More Engineers, Scientists, Managers

Occupational Distribution of Manufacturing in Massachusetts and Nationwide, 2005 This is not surprising given the structure of the manufacturing industry, Especially in comparison to the U.S We have fewer blue collar occupations Production, installation, and material moving occupation We have more professional occupations Engineering, math, sciences Note, production occupations are still the largest category by far This is not surprising given the structure of the manufacturing industry, Especially in comparison to the U.S We have fewer blue collar occupations Production, installation, and material moving occupation We have more professional occupations Engineering, math, sciences Note, production occupations are still the largest category by far

Slide 38:The educational attainment of production workers has increased

2000 Census PUMS Data, 5% sample 2006 ACS PUMS Data Population aged 25 or older Change in the Educational Distribution of Production Workers in Manufacturing This is important to remember when we look at the educational distribution of production workers in manufacturing Like the industry, there are fewer less educated workers and more, more educated workers But, 2/3rds of production workers still have a HS diploma or less This is important to remember when we look at the educational distribution of production workers in manufacturing Like the industry, there are fewer less educated workers and more, more educated workers But, 2/3rds of production workers still have a HS diploma or less

Slide 39:Manufacturing is the sector with the 6th highest number of job vacancies

Source: Massachusetts Department of Workforce Development, Job Vacancy Survey, Q2, 2007 Massachusetts Vacancies by Sectors, Q2, 2007 Moreover, there is still a need for workers in manufacturing It is the industry with the 6th highest number of vacancies Though it is worth noting the proportion of jobs requiring experience and/or an associates degree But, these are “real jobs,” and by that I mean they are permanent, full-time, full-year jobs with health benefits!Moreover, there is still a need for workers in manufacturing It is the industry with the 6th highest number of vacancies Though it is worth noting the proportion of jobs requiring experience and/or an associates degree But, these are “real jobs,” and by that I mean they are permanent, full-time, full-year jobs with health benefits!

Slide 40:Vacancy rate is low: more vacancies provide health benefits than in any other sector

Manufacturing Vacancies by Major Occupational Category, Q2, 2007 However, the downside is the most of the vacancies are in professional occupations Occupations which require either a bachelors degree or higher and/or a significant amount of experience That said, production occupations are still the occupational category with the largest number of vacanciesHowever, the downside is the most of the vacancies are in professional occupations Occupations which require either a bachelors degree or higher and/or a significant amount of experience That said, production occupations are still the occupational category with the largest number of vacancies

Slide 41:Understanding Labor Market Trends and Identifying Career Pathway for Youth

Skills Gap Income Inequality Critical Industries Healthcare Retail Manufacturing Hot Jobs Report released by us and the crittenton women’s union Jobs in demand now, with at least 100 vacancies and/or a 5% vacancy rate for the previous 2 surveys Requiring an assoicates degree or less Jobs pay wages above 48,500 dollars (FESS Standard) at the 75th percent levelReport released by us and the crittenton women’s union Jobs in demand now, with at least 100 vacancies and/or a 5% vacancy rate for the previous 2 surveys Requiring an assoicates degree or less Jobs pay wages above 48,500 dollars (FESS Standard) at the 75th percent level

Slide 42:A wide variety of jobs A wide variety of jobs

Slide 43:No Shame in My Game – Katherine Newman

“…our culture confers honor to those who hold down jobs of any kind over those who are outside of the labor force “Despite odds, job seekers work their networks, turn in applications wherever they find an open door, and take civil service exams in hopes of landing a plum opportunity. “There are competencies involved in these jobs that should be more widely known and more easily built upon as the basis for advancement in the labor market. “It is a long way from first-line management to the point where the ‘real money’ comes their way. “Despite difficulties, the nation’s working poor continue to seek their salvation in the labor market. Study of workers living in Harlem, NY who got jobs working in McDonalds Why get a job How do they get jobs How do they move up This is hard, but people try So, to conclude, hopefully I’ve wrapped up on a somewhat positive note showing that while it is difficult to achieve jobs that pay living wages, they are out thereStudy of workers living in Harlem, NY who got jobs working in McDonalds Why get a job How do they get jobs How do they move up This is hard, but people try So, to conclude, hopefully I’ve wrapped up on a somewhat positive note showing that while it is difficult to achieve jobs that pay living wages, they are out there