Issuu

WORKFORCE INTELLIGENCE NETWORK

QUARTERLY REPORT 路 CITY OF DETROIT 路 Q4 2014

CONTENTS Labor Market and Demand Overview Occupational Clusters Advanced Manufacturing: Skilled Trades & Technicians Advanced Manufacturing: Engineers & Designers Information Technology Health Care Retail & Hospitality

GEOGRAPHY

WIN region includes 9 counties: Genesee, Livingston, Monroe, Macomb, Oakland, Shiawassee, St. Clair, Washtenaw, and Wayne. This report focuses on the City of Detroit.

Labor Market and Demand Summary Data Notes and Sources

SECTION ONE LABOR MARKET AND DEMAND OVERVIEW

TOP 20 JOBS IN DEMAND OCTOBER - DECEMBER 2014

Prior to Q4 2014, the top posting occupations in the City of Detroit consistently have been Software Developers for Applications, Registered Nurses, several retail occupations and Heavy and TractorTrailer Truck Drivers. In Q4, the top occupation was Registered Nurses (994 postings) with Heavy and Tractor-Trailer Truck Drivers a close second at 940 postings. Software Developers, Applications has shifted down to be the fourth most-in-demand occupation and most retail positions are lower on the list.

EMPLOYMENT AND LABOR FORCE

EMPLOYMENT DEMAND OCTOBER - DECEMBER 2014

The unemployment rate declined by 1.7 percentage points from 15.8% in Q3 2014 to 14.0% in Q4 (the subtraction looks slightly off due to rounding). This drop, however, is due primarily to the labor force decline rather than rapidly increasing payrolls. Employers today to have fewer workers to choose from than ever before.

Employment, on the other hand, did grow during the last quarter. Increasing by 1,571 individuals (0.6% increase), employers in the city have more individuals currently in jobs than in 2008 prerecession. However, the increases are slow and if current trends continue the city is unlikely to reach pre-recession peak employment for several years.

Postings in Detroit are up this quarter. The city is driving much of the increase in demand across the region, most of which is attributable to jobs not included in the occupational clusters analyzed by WIN. Detroit postings previously fell for two quarters from 22,314 in Q1 2014 to 17,392 in Q2, then down again to 15,413 in Q3. In Q4 2014 postings jumped to 20,930, close to other recent peaks.

EMPLOYMENT AND LABOR FORCE OVERVIEW

SECTION TWO OCCUPATIONAL CLUSTERS

CITY OF DETROIT DEMAND OVERVIEW

ADVANCED MANUFACTURING SKILLED TRADES AND TECHNICIANS

WINâ€™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. Once again, First-Line Supervisors Of Production And Operating Workers are the top posting skilled trade in the city with 78 postings, outpacing the next most in-demand job 2:1. The next most prevalent job is Production Workers, All Other with 41 postings. Controlled Machine Tool Operators, Metal And Plastic, once consistently among the top jobs, has dropped to the 8th position this quarter.

ADVANCED MANUFACTURING SKILLED TRADES AND TECHNICIANS: ONLINE JOB POSTINGS AND EMPLOYMENT OVER TIME

Online job postings for skilled trade workers have stagnated in Q4 2014 shifting down by a single posting from 294 in Q3 2014 to 293 in Q4. Postings have now been on a steady decline for all of 2014. Skilled trade and technician postings represent 1.4% of total City of Detroit online job postings, the smallest cluster analyzed by WIN.

Skilled trade and technician employment levels in the city fell steeply prior to the recession, peaking in 2005 (7,413 employees) then bottoming out in 2009 (4,951 employees). Currently, 5,993 individuals are employed in skilled trade and technician jobs in the City of Detroit. Employment in this cluster has stagnated over the past several years, but is still higher than 2009.

ADVANCED MANUFACTURING SKILLED TRADES AND TECHNICIANS: TOP JOBS WAGES

ADVANCED MANUFACTURING SKILLED TRADES AND TECHNICIANS: TOP JOBS EDUCATIONAL ATTAINMENT REQUIREMENTS

ADVANCED MANUFACTURING ENGINEERS AND DESIGNERS

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. Civil Engineers displaced Mechanical Engineers as the top engineering and design job in demand in the City of Detroit with 154 and 144 postings, respectively. Other top jobs include Electrical Engineers with 119 postings and Industrial Engineers with 63.

ADVANCED MANUFACTURING ENGINEERS AND DESIGNERS: ONLINE JOB POSTINGS AND EMPLOYMENT OVER TIME

Postings for engineers and designers in the City of Detroit had an uptick in Q4 2014 compared to Q3 moving from 758 in Q3 to 816 in Q4. Previously, postings in this cluster were on a year-long downturn falling from a peak in Q1 2014 of 1,104. Engineer and designer postings represent 3.9% of total online job postings in the City of Detroit.

Employment in engineering and design positions has recovered well in the City of Detroit since the recession. With peak employment in 2005 (5,023 employees) and the lowest point in 2009 (3,780 employees), employment is now at 4,624 and is relatively stable.

ADVANCED MANUFACTURING ENGINEERS AND DESIGNERS: TOP JOBS WAGES

ADVANCED MANUFACTURING ENGINEERS AND DESIGNERS:TOP JOBS EDUCATIONAL ATTAINMENT REQUIREMENTS

INFORMATION TECHNOLOGY

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 maintains its top job position in IT for the City of Detroit with 566 postings in Q4 2014. This occupation has been at the top of IT postings for several years running. Other top postings include Computer Systems Analysts (424 postings) and Computer User Support Specialists (321 postings).

INFORMATION TECHNOLOGY ONLINE JOB POSTINGS AND EMPLOYMENT OVER TIME

Demand for IT workers remains relatively steady for another quarter. Since falling from a peak of 4,499 postings in Q3 2013 posting have hovered around 3,000 since Q2 2014 and remain there in Q4. Employer demand for IT workers is consistent in the city. IT postings represent 14.5% of online job ads in the City of Detroit, one of the two largest groups analyzed by WIN.

Despite such high demand, employment in IT fields has not recovered since the recession. In 2005, 9,076 individuals were employed in IT occupations in Detroit. In 2010, that dropped to 6,405 (a 30% drop), and currently stands at 6,631 employees. This cluster is one of only two (retail and hospitality is the other) not to experience significant job growth post-recession. IT employers are posting nearly 1 job per 3 current employees; a change from the nearly 1:1ratio in 2013. It is clear that with lack of employment growth and consistent posting, employers are not finding the IT talent they need, that IT employer are doing less business in the city, or are leaving the city.

INFORMATION TECHNOLOGY TOP JOBS WAGES

INFORMATION TECHNOLOGY TOP JOBS EDUCATIONAL ATTAINMENT REQUIREMENTS

HEALTH CARE

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 is the most in-demand health care occupation in the City of Detroit, as it out-posts the next highest posting health care job more than 5:1. This occupation has been the top online poster for several years running. Other top jobs are not as consistent in their number or ordering. In Q4 2014 the other top posters include Nursing Assistants (158 postings) and Medical Records and Health Information Technicians (154 postings).

HEALTH CARE ONLINE JOB POSTINGS OVER TIME

Postings for health care jobs in the City of Detroit increased by almost 50% between Q3 and Q4 2013, moving from 1,862 to 2,753 postings. This is the highest recorded number of job postings related to health care occupations since online posting data has been collected. While employment fell in 2014 in this cluster, the increase in postings indicates that more hiring for health care workers is in the city’s future. Health care occupation online postings represent 13.2% of all online job postings in the City of Detroit.

Bucking the trend for many other occupation groups, employment in health care was relatively “recession resistant”, with no slowdown in employment growth over the past decade. Current employment in the city stands at 28,942 (roughly 400 lower than 2013 but nearly equivalent to 2012). While employment in health care jobs in Detroit dropped this year, it still has some of the highest employment in the city, representing over 10% of total employment.

HEALTH CARE TOP JOBS WAGES

HEALTH CARE TOP JOBS EDUCATIONAL ATTAINMENT REQUIREMENTS

RETAIL AND HOSPITALITY

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. Top jobs in retail and hospitality in the City of Detroit include Sales Representatives, Wholesale And Manufacturing, Except Technical And Scientific Products (720 postings), Customer Service Representatives (335 postings), Retail Salespersons (313 postings), and Sales Managers (305). The City of Detroit is unique in that its top posting for retail and hospitality jobs is not for Retail Salespersons, which differs from other areas within the region.

RETAIL AND HOSPITALITY ONLINE JOB POSTINGS AND EMPLOYMENT OVER TIME

Online job postings for retail & hospitality jobs increased 46% between Q3 and Q4 2014, growing from 2,500 to 3,643 postings. After several quarters of decline coming down from the Q3 2013 peak of 4,386 postings, employers look to be in need of workers again. Employment has been dropping in this sector, but the uptick in employer postings could be a signal that more workers are needed. Retail & hospitality postings represent 17.4% of all online job postings in the City of Detroit.

Employment in retail and hospitality jobs in Detroit are on the opposite trend of many other clusters. Employment in this cluster is often first to increase when the economy improves, instead, it has continued to decline with employment overall. With 63,700 employees, this cluster represents about 22.4% of total employment in the city. Employment seemed much higher in 2005 (71,331 employees). City employment overall was higher then as well, and this cluster represented 22.2% of total employment. While employment is falling, it is following the same pattern as the city has for the past decade and has retained a share of just over 20% total employment.

RETAIL AND HOSPITALITY TOP JOBS WAGES

RETAIL AND HOSPITALITY TOP JOBS EDUCATIONAL ATTAINMENT REQUIREMENTS

SECTION THREE

LABOR MARKET AND DEMAND SUMMARY

SECTION FOUR

DATA NOTES AND SOURCES

The labor force in the City of Detroit has been on a very slow and steady decline. In Q4 2014, the labor force lost much of what had been gained in Q3. A decline of 4,950 individuals (1.5% drop) from Q3 2014 put the labor force at even lower levels. 2014 marks the lowest point yet for the labor force in Detroit. Employment is on the rise. Increasing by 1,571 individuals (0.6% increase), employers in the city have more individuals currently in jobs than in 2008 prerecession. The unemployment rate declined by 1.7 percentage points from 15.8% in Q3 2014 to 14.0% in Q4 (the subtraction looks slightly off due to rounding). This drop, however, is due primarily to the labor force decline rather than rapidly increasing payrolls. Employers today to have fewer workers to choose from than ever before. Postings in Detroit are up this quarter. The city is driving much of the increase in demand across the region, most of which is attributable to jobs not included in the occupational clusters analyzed by WIN (see top jobs analysis on page 2). Detroit postings previously fell for two quarters from 22,314 in Q1 2014 to 17,392 in Q2, then down again to 15,413 in Q3. In Q4 2014 postings jumped to 20,930, close to other recent peaks. 50.3% of online job postings in the City of Detroit are from one of the five occupation groups analyzed by WIN. 26

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

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.

FOR MORE INFORMATION ABOUT RESEARCH AND DATA, VISIT OUR WEBSITE: WWW.WIN-SEMICH.ORG/DATA-RESEARCH