Utah Trendlines: March-April 2012

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Utah Trendlines: March-April 2012

  1. 1. oIssue 1 of 2 h’s W rkfo Uta rceNext issue: Utahs Businesses Today Perspectives on Utah’s Economy Today! March/April 2012 Special Issue: Utahs Workforce Today Profiling Utahs Labor Force— Its a Good Thing pg. 16 Department of Workforce Services
  2. 2. Trendlines Setting the Pace Utah Department of Workforce Services Executive Director Kristen Cox Workforce Research and Analysis Kristen Cox, Executive Director, Rick Little, Director Department of Workforce Services Carrie Mayne, Editor D ear Readers: Contributors When snowshoeing a few weeks ago, my youngest son once again Mark Knold gave meaning to the statement, “out of the mouth of babes.” During Lecia Parks Langston our hike his older brother turned back to complain about how slow everyone John Mathews else was moving. My six year old shot back, “Well, you’re the one who’s lead- ing!” His comment that the pace of the group was dictated by the one leading Jim Robson was not only cute, but insightful. Before looking to others to find answers or Nate Talley place blame, an effective leader will carefully consider the impact they person- Linda Marling Church ally have in determining the pace and cadence of an organization. John Krantz For me, determining pace and direction are two critical factors to an organiza- MeLauni Jensen tions success. Too many new projects or too wide a scope can overwhelm the Rick Llittle organization and cause bad multi-tasking while a lack of new efforts or direc- tion may result in obsolescence. Setting the exact pace or individual direction Curt Stewart for everyone involved may be impossible, but having at least an awareness of these issues is a must. Designer Pat Swenson As an outdoor enthusiast, snowshoeing and hiking are some of my favorite recreational activities. Having the right gear makes all of the difference between a successful hike and a miserable one. Likewise, having the right gear or tools within an organization is imperative when it comes to assessing jobs.utah.gov performance, direction, and pace. At a minimum, the following tools are required to be successful: • Clear targets Trendlines is published every other month by the Workforce Research and • Dashboards to track cost, quality, and throughput Analysis Division. To download this publication go to http://jobs.utah.gov/wi. • Structures to track division or unit, as well as organization-wide projects Click on “Publications” and select the one you want from the list. To obtain • Real-time data on how individuals, teams, and divisions/units are per- additional printed copies or to subscribe forming to Trendlines contact: Whether providing valuable information about the economy of Utah; discuss- Department of Workforce Services ing how women and men match up in educational attainment; or weighing Attn: WRA 140 East 300 South • SLC, UT 84111 the value of creating family friendly workplaces to improve productivity and (801) 526-9785 • Fax: (801) 526-9238 employee success; our goal is for Trendlines to be a valuable tool for you to use Email: wipublications@utah.gov in setting the direction and pace of your organization. The Utah Department of Workforce Services is committed to the mission of connecting job seekers The Workforce Research and Analysis and employers and we hope this edition of Trendlines will help you lead the way. Division generates accurate, timely, and understandable data and analyses to provide Sincerely, knowledge of ever-changing workforce environments that support sound planning and decision-making.2 March/April 2012
  3. 3. contents Metropolitan Areas Lead Utahs 5 Employment Growth Wasatch Front and Statewide Women Outperform Men in 6 Educational Attainment Utahs National News Workforce 8 Third Quarter 2010 New Hire Survey Economic Insight Today How Do We Determine the 10 Unemployment Rate? Economic News Welfare, Work, and the Economy 12 Insider News Customers Served by the Introduction 14 Utah Department of Workforce Services to this issue: For Your Information pg. 4 Profiling Utahs Labor Force— 16 Its a Good Thing The Outlook Work/Life Awards Continue to 19 Focus on Employer Best Practices DWS News The Highs and the Lows ofpg. 12 20 Labor Force Participation in Utah The Outskirts System Analysts: The Link Between 22 Business and Information Technology Occupations A New System of Classifying 24 Occupations by Education and Training DWS-03-44-0312 Whats Happening Equal Opportunity Employer/Program Auxiliary aids and services are available upon request Information to individuals with disabilities by calling (801) 526-9240. Individuals with speech and/or hearing 26 Industry Highlight impairments may call the Relay Utah by dialing 711. Spanish Relay Utah: 1-888-346-3162. Just the Facts... 27 Rate Updatejobs.utah.gov/wi Trendlines 3
  4. 4. Introduction I n this March/April 2012 edition the tion. Rick Little, the Director of our reader will find Trendlines taking Workforce Research and Analysis a pretty thorough look at Utah’s Division dives in with both feet to economy. Not necessarily a forecast, identify who those customers are. although there are a few glimpses You’ll see that indeed this department into the future by our Chief Economist touches a lot of Utahns. Heres why Mark Knold. Known for his strict Trendlines adherence to the data with an eye on Every issue of Trendlines shines its the past, Mark has an "in the trenches" spotlight on a targeted industry and is worth Insider News. This time we’re taking a feel for the economic churn in Utah. look at the Information industry, and reading... There’s some interesting insight into what do we mean when we say the newly hired employees in Utah over “Information Age? Our Insider News the third quarter of 2011that indi- focuses on Welfare, Work, and the cates that networking really helps Economy, tracing the origin of social when one is seeking a job and previ- programs back to the Social Security ous employer referrals do make a Act of 1935, and how it has evolved difference. into today’s social safety net. Every month the department releases As you’ve read so far Trendlines is its monthly analysis of Utah’s economy about a lot of different topics and in the form of Utah’s Employment subjects. I believe you’ll find it inter- Summary, that report is where the esting and worth the time invested in monthly unemployment rate is reading it. The entire staff at DWS are revealed. As most people know, that’s committed to our mission to connect the number media members wait to Utah job seekers to Utah Employers, report on, and politicians pay close and here you get a good idea on how attention to. If you’ve ever wanted to we go about that. know how economists arrive at that number, read Mark Knold’s analysis on Whether discussing how women page 10. and men match up against each other in educational attainment, or The department’s mission states, the value of creating family friendly the Utah Department of Workforce workplaces to improve productivity Services strengthens Utahs economy and employee success and loyalty, by supporting the economic stability Trendlines will take you there. We and quality of the state’s workforce. invite you pass this edition along When we say workforce we mean just when you have finished reading it and about every segment of the popula- share it with your colleagues.4 March/April 2012
  5. 5. wasatch front and statewide | by mark knold, chief economistMetropolitan Areas Lead Utah’s Employment Growth It is not surprising that most of the growth is along the Wasatch FrontU tah’s employment growth for 2011 registered 2.4 percent. A nice rebound considering theprior two years combined for a steepemployment contraction.Most of the growth is concentratedalong the Wasatch Front. Thisisn’t necessarily surprising. IfUtah’s economy is going to grow,it has to come from the populousmetropolitan corridor. Yet manyof the state’s rural economies haveyet to “perk up.” An energy boomin the Uintah Basin is primarilyhelping Duchesne and Uintahcounties, and a construction projectto install windmill energy deviceshelped Beaver County, but mostof the remaining rural counties arenot yet experiencing a trickle downeffect from the metropolitan area’sexpansion.Barring any unforeseen economicshock, Utah should continue to expe-rience notable employment growththroughout 2012, to the degree thatwill support both metropolitan andrural economic expansion.jobs.utah.gov/wi Trendlines 5
  6. 6. national news | by jim robson, economist Women Outperform Men in Educational Attainment O ne very important aspect of U.S. 34 had at least a high school diploma, economic success, prosperity, increasing to 85.2 percent as measured and growth over the decades by the American Community Survey has been increasing educational (ACS) in 2010. Females, 25 to 34 years Recently, one interesting attainment of the populace over time. of age, registered 80.7 percent with at An educated workforce is associated least a high school diploma in 2000, trend has been a with higher productivity, increasing increasing to 89.2 percent in 2010. real incomes, and a better standard of large increase in the living. When you look at college-level educa- tion at the national level, women educational attainment Levels of education have risen steadily in America over the past 70 years. significantly surpassed the level of attainment by men. In 2000, 26.1 In the 1940 Census, 24.5 percent of of women. people age 25 and over had at least a percent of males 25 to 34 years of age had a college diploma or above, high school diploma. By 2010 this had increasing by just one percentage point increased to 85.0 percent, with 27.9 to 27.1 percent by 2010. For women percent having attained a bachelor’s of the same age, measured attainment degree or higher. of a college degree or higher was 22.8 In recent years, one trend of particular percent (3.3 percentage points below note has been the relatively large the men) in 2000, increasing by 12.2 increase in educational attainment percentage points to 35.0 percent in of women. This trend is most 2010. readily illustrated by examining the educational attainment among the Looking at this same data for those younger generation, those 25 to 34 in the 25 to 34 age group in Utah, we years of age. see that men exceeded the educational attainment levels of men nationally The 2000 Census showed nationally for those with at least a high school that 80.1 percent of males, ages 25 to diploma and also for those with a6 January/February 2012
  7. 7. Percent of the Population 25-34 Years of Age with a High School Diploma or Above 92.3 90.4 88.1 89.2 87.3 85.2 80.1 80.7 Utah Utah Utah Utah U.S. U.S. U.S. U.S. 2000 2010 2000 2010 Census ACS* Census ACS*bachelor’s degree or higher (seefigures 1 and 2). However, the edgeUtah men had in 2000 over theirnational counterparts has narrowedin both cases. Of concern for Utah,in 2000, 30.0 percent of men hada bachelor’s degree or higher, but Percent of the Population 25-34 Years of Ageby 2010 this had dropped to 27.7 with a Bachelor’s Degree or Abovepercent.For Utah women in the 25 to 34 agegroup, 92.3 percent—3.1 percentagepoints above the national level for 35women—have a high school diploma 30 29.4or above in 2010. While more Utah 27.7 27.1women in 2010 have a college degree 26.1or higher (29.4 percent) than Utah 22.8 22.3men (27.7 percent), Utah womenare 5.6 percentage points below thenational level. Utah Utah Utah UtahTraditionally, Utah values educa- U.S. U.S. U.S. U.S.tional attainment and outperformsthe levels achieved nationally. How-ever, if current trends continue, 2000 2010 2000 2010Utah’s educational attainment levels Census ACS* Census ACS*may fall below national averages,particularly the percentage of thepopulation with a bachelor’s degree *ACS—American Community Survey One-Year Estimatesand above. Source: U.S. Census Bureau.jobs.utah.gov/wi Trendlines 7
  8. 8. economic insight | by nate talley, economist Third Quarter 2010 New Hire Survey Average hourly wage for newly hired employees was $13.39 T he Department of Workforce and national economic environments there were a total of 177,252 new Services (DWS) surveyed a were still experiencing ill effects hires during that time). random sampling of Utah from the most recent recession. The employers who hired a new employee truth is that much of the employer Survey Highlights during the third quarter of 2010. demand for labor persisted during the • The average hourly wage for newly Employers were asked a number referenced quarter. However, it was hired employees was $13.39. of questions about their new hire; offset by job separations and therefore Average hourly wages for the questions designed to provide insight not reflected as net job growth. accommodation and food services as to how the employee was recruited, industry was $8.75 an hour and compensated, and if they were There was an estimated 121,243 new management of companies and retained, among other information. hires in Utah during the third quarter enterprises industry was $22.90 an of 2010 (the Census Bureau’s Local hour. Intuitively, one might speculate that Employment Dynamics program has employer hiring stalled during the a slightly more expansive definition • Fifty-three percent of new hires were third quarter of 2010 since the state of a ‘new hire’ and estimates that appointed to full-time positions.8 March/April 2012
  9. 9. Third Quarter 2010 New Hires and Average Hourly Wages • Eighteen percent of the new hires New Hires Average Hourly Wage were employed on a temporary or 25,000 $25.00 Average Hourly Wage seasonal basis. 20,000 $20.00 New Hires • Approximately 51 percent of the 15,000 $15.00 new hires were found in construc- 10,000 $10.00 tion, retail trade, administrative support, waste management ser- 5,000 $5.00 vices, accommodation and food 0 $0.00 services. These industries generally Agriculture Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation & Warehousing Information Finance & Insurance Real Estate Prof, Scientific & Technical Management Admin Support & Waste Education Services Healthcare & Social Assistance Arts, Entertainment & Rec Accommodation & Food Other Services Government experience a higher-than-average turnover, meaning that the demand for new hires was likely fueled by the need for replacement labor. • The administrative support and waste management services industry housed almost 17 percent of all new hires during the referenced period. Included in this industry are temporary help and staffing services companies, which are usually the Percent of Third Quarter New Hires first to experience an increase Separated One Year Later in hiring activity following an economic downturn. 70% 60% • Only 55 percent of the newly hired 50% 40% employees remained employed by 30% the hiring organization one year 20% later. This indicates that at least for 10% the positions that were filled by the 0% newly hired employee, employment Agriculture Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation & Warehousing Information Finance & Insurance Real Estate Prof, Scientific & Technical Management Admin Support & Waste Education Services Healthcare & Social Assistance Arts, Entertainment & Rec Accommodation & Food Other Services Government longevity is not standard. As seen in figure 2, separation statistics vary considerably by industry. • About 65 percent of all newly hired employees discovered the job opening through networking or word of mouth. Likewise, over 42 percent of employers stated that a referral from a friend, family member, or previous employee was one of the most influential For additional information on the DWS factors of the hiring decision. These statistics suggest that informal New Hires Survey contact Nate Talley channels of job search and job at natetalley@utah.gov. matching remain prevalent in the labor market.jobs.utah.gov/wi Trendlines 9
  10. 10. economic news | by mark knold, chief economist How Do We Determine The Unemployment Rate? Share of Total Household Contrary to what you might think, Income in Utah by unemployment benefits are not the Quintiles 2010 primary factor in the unemployment rate calculation. U nemployment rates are among the most frequently state-level unemployment rate calculation, and in some referenced indicators of labor market health. states, they are not used at all. Given the ubiquitous nature of these rates, it is important to understand the methods through which To be counted as unemployed, one must be without a job they are derived. and seeking work. If one is without a job, yet is not looking for a job, then the individual is not considered unemployed Unemployment rates are calculated and owned by under the official definition of unemployment. the federal government—more specifically, the U.S. Bureau of Labor Statistics (BLS). It is this federal agency There are three ways through which people become that determines not only the national unemployment unemployed. The first is to lose a job (job losses could take rate, but rates for all states, counties, metropolitan the form of a layoff, firing, expiration of temporary job, areas, and cities (with a population of 25,000 or more). etc.). The second is to voluntarily leave a job. The third is Advantages of the federally defined approach to the to newly enter the labor force (for example, students who production of unemployment rates are numerous. First, a graduate and begin seeking work) or to return to the labor centralized methodology allows for the standardization of force after a period of absence. Unemployment benefits unemployment rate estimates, which means that rates can are only available to those in the first category, and even be compared across different states, counties, and other then, not all are eligible. Therefore, unemployment areas. Second, since the release of updated unemployment insurance activity only includes a fraction of those who rates usually elicit a strong market response, a federally are unemployed. Nationally, about one-third of the imposed release schedule helps to add some predictability unemployed are on the roles of unemployment insurance. to when the newest unemployment rates will be available. In Utah, an even smaller percentage of the unemployed Finally, a centrally driven estimate production process are captured by unemployment insurance statistics. helps to keep unemployment rates insulated from local political influence. Since those leaving jobs and those entering or re- entering the labor force are generally not eligible to Contrary to what many people believe, unemployment collect unemployment insurance, a more comprehensive insurance claims (unemployment benefits) are not the method is needed to fully estimate the volume of the primary factor in the unemployment rate calculation. unemployed. This is done through a monthly survey Instead, a monthly national survey is the driving force. called the Current Population Survey (commonly Unemployment claims are just a small portion of the referred to as the Household Survey). This is administered10 March/April 2012
  11. 11. Utah Unemployed by Reason Utah Unemployed December 2010-November 2011 December 2010-November 2011 Job Leavers 9% Looking for Part-Time Work 17% Job Losers Looking for Entrants/ 59% Full-Time Re-entrants Work 32% 83% Source: U.S. Census Bureau, Current Population Statistics. • http://www.bls.gov/gps/notescps.htmmonthly to 60,000 households nationwide by the U.S. unemployment rate. Utah provides the unemploymentCensus Bureau, at the behest and financing of the Bureau insurance claims data, and the federal governmentof Labor Statistics. Selected households rotate in and out supplies the remaining inputs and makes the calculation.of the survey—in for four months, out for eight, back infor four, then finished. In addition to questions regarding Each month, Utah announces and profiles bothdemographic information such as age, race, and gender, Utah’s unemployment rate and employment growthindividuals are asked whether they were employed, how estimation, but those numbers are generated by themany hours they worked, what industry they worked in, federal government. The federal government asksalong with many other questions related to their labor states to issue a monthly announcement to put a localmarket activities. For interviewees who were not working, analytical perspective on the data; however, the states dothe survey asks whether they are looking for a job, the not generate nor “own” the data.methods used to find a job, and so forth. It providesdetailed survey information of monthly household labor The process that generates the unemployment rate ismarket activity. not perfect—it simply produces an estimate. The key to it all comes down to the definition, which centers uponThe survey results produce the national unemployment activity. Is an individual without work and looking for arate. But at the state and local level, the monthly survey job? It is theoretically possible for all unemployed peoplesample size is not considered statistically strong enough to stop looking for a job. The unemployment rate wouldto produce the unemployment rate on its own (700 then fall to zero. The unemployment rate statistics suggesthouseholds monthly in Utah). Therefore, each state’s that some of the recent unemployment rate decline cansurvey results are combined with historical data to be attributed to unemployed people no longer lookingconstruct an econometric model, out of which comes for work.the state’s official unemployment rate estimation. Theinputs into this model are not only historical data and The unemployment rate can also decline as people findthe current survey results, but also the recent amount of jobs. They leave the ranks of the unemployed and becomeunemployment insurance claims (although this input’s employed. With 36,000 jobs created in Utah over the pastinfluence with the model varies by state—it does not year, job gains are also part of the recent unemploymenthave a strong influence in Utah), current estimates rate decline.of Utah employment growth or contraction, Utahpopulation estimates, and other economic variables. The Additionally, variability in the survey can occasionally bemost influential factor in the model is the current survey significant enough that unemployment movements canresults, yet the other variables help to stabilize monthly be partially attributed to this factor. In the case of thefluctuations that are inherent and potentially sizable due current unemployment rate decline, survey variabilityto the survey’s small sample size. also appears to be an influencing factor. Job gains, labor force exits, and survey variability are currentlyThe federal government designs the model. The survey all contributing factors in the state’s recent noticeableprovides the data for the model. The model produces the unemployment rate decline.jobs.utah.gov/wi Trendlines 11
  12. 12. insider news | by john krantz, economist Welfare, Work, and the Economy A background on welfare for mothers with dependent children and how numbers of new entrants coincide with economic times. T he social program known as welfare traces its origin public either accepted the program as satisfying a back to the Great Depression, when it was created legitimate social need or was at least unconcerned with as part of the Social Security Act of 1935. The pro- it. However, the broad social changes of the 1960s would gram was originally known as Aid to Dependent Children drastically alter the public’s opinion toward welfare, and later as Aid to Families with Dependent Children providing an impetus toward reform. Perhaps the (AFDC), the title the program would retain through the most influential social change was the steady increase mid-1990s. The program was designed to provide sup- in the percent of working mothers. Only 28 percent port to mothers with dependent children whose fathers of women with children worked outside of the home had left the family, become incapacitated, or died. The in 1960, but by the 1990s this figure rose to nearly 70 legislation was motivated by a 1934 study conducted by percent. Consequently, public opinion shifted away from the Committee on Economic Security that found 8 mil- the view that mothers need to be home taking care of lion children living in families receiving unemployment children toward the view that mothers can and should relief, a number equal to approximately 22 percent of all work outside of the home. Two other social trends served children under the age of 16 in the U.S. The study warned to foster an overall negative view of welfare among the that these children were exposed to a significant risk of public. From 1960 to the mid-1980s, the divorce rate more delinquency or serious neglect and prescribed financial than doubled and the percentage of births to unmarried assistance to protect children from this risk. women quadrupled. Some argued that these trends were the direct results of welfare on the basis that there were During the first 25 years of AFDC, the program operated financial incentives toward divorce, never marrying, and as intended, caseloads were relatively low, and the general out-of-wedlock childbearing. Regardless of the validity of12 March/April 2012
  13. 13. such arguments, the ever-growing share of the public that important facts about welfare under TANF is that, strictlyhad developed an unfavorable opinion of welfare served speaking, it is no longer an entitlement program.to embolden policymakers to legislate major reforms tothe program. Turning to economic matters, the health of Utah’s labor market and the number of new entrants into TANF exhibitWelfare reform was achieved with the passing of the an inverse relationship that is clearly discernable in thePersonal Responsibility and Work Opportunities Recon- accompanying graph. The economic downturns are definedciliation Act of 1996, which dismantled AFDC and put in as periods where the labor market was contracting in Utah.its place Temporary Assistance for Needy Families (TANF). As expected, when the demand for labor decreased, a greaterThe new program was designed around the central tenet number of individuals were unable to secure employmentthat welfare is only a temporary source of financial assis- and were forced to resort to TANF for assistance. Conversely,tance granted under the expectation that recipients are during periods of strong labor market growth, the greateractively seeking employment or pursuing activities to the number of employment opportunities, the smaller theimprove their chances of future employment. number of individuals who needed to rely on TANF to make ends meet. The impact of the Great Recession upon Utah’sIn order to promote compliance with the requirements to economy has most often been expressed in terms of lostpursue work-related activities, states are given the power jobs. From December 2007 to February 2010, the State ofto impose sanctions in the forms of benefit reductions Utah experienced the largest percentage drop in employ-and, under some circumstances, the lifetime elimina- ment during the post-World War II era. Data on the numbertion of all benefits. To eliminate the perceived incentive of new TANF cases provides a supplemental measure of thetoward having additional children out of wedlock, states severity of the recession. The seasonally-adjusted number ofare free to impose caps that fix the size of benefits received new TANF cases reached a peak of roughly 380 in May 2010,by each family. Possibly the most significant reform was shortly after the labor market had reached the bottom of thethe imposition of time limits on the receipt of welfare. downturn. This represents the largest number of new TANFTANF limits individuals to a maximum of five years of cases in any month since the inception of the program ineligibility for welfare, but states are permitted to impose October 1996. Not only, then, does the TANF data provideeven shorter time limits if they choose. In Utah, the time another illustration of the depths to which the labor marketlimit is 36 months. Because individuals can be denied fell during the Great Recession, but it also reveals that TANFbenefits for not participating in work-related activities serves an important function as a social safety net duringor for having exhausted the time limit, one of the most periods of economic duress. New TANF Cases and Employment in Utah January 1996 to October 2011 The number of new 1,300 600TANF cases is measured 1,200 500 on the right vertical axis while employment 1,100 400 is measured on the left vertical axis in 1,000 300 thousands. Different 900 200 scales were chosen to more clearly reveal the 800 100relationship between the two data series. 700 0 Jan-2011 Jan-1996 Jan-1997 Jan-1998 Jan-1999 Jan-2000 Jan-2001 Jan-2002 Jan-2003 Jan-2005 Jan-2006 Jan-2007 Jan-2008 Jan-2009 Jan-2010 Jan-2004 Economic Downturns Total Employment in Utah New TANF Cases Sources: Utah Department of Workforce Services and the Bureau of Labor Statistics.jobs.utah.gov/wi Trendlines 13
  14. 14. for your information | by rick little, director, workforce research & analysis division Customers Served by the Utah Department of Workforce Services The Utah Department of Workforce Services hoping to enhance their careers. A few job seekers are (DWS) strengthens Utah’s economy by supporting from other states as well as foreign countries. More the economic stability and quality of the state’s than half of all job seekers find employment within workforce. In preparing its customers to prosper now three months of their last service. and as the workforce of the future, DWS administers public services associated with helping employers to Unemployment Insurance Claimants— find qualified workers and assists job seekers to find Despite fewer claims last year, there were still employment. more than 113,000 claimants. As a condition of continued eligibility, claimants must seek Four primary customer groups are served by DWS: employment and report progress weekly. More employers, job seekers, unemployment insurance than 80 percent of claimants also receive services claimants, and temporary public assistance recipients. as job seekers. Additional services may be available Each of these is defined and quantified below. In to unemployment insurance claimants such as re- addition, DWS partners with education, economic employment workshops, counseling, and incentives to development, and local government agencies to employers if they hire claimants. inform and support shared projects that strengthen Utah’s workforce. Temporary Public Assistance Recipients—The key to avoiding poverty and Employers—There are approximately 85,000 attaining self-sufficiency is employment. Still, there worksites in Utah with more than 1.2 million jobs. are many thousands of families that need supportive DWS associates with virtually all employers to fund services while they seek employment or higher the unemployment insurance trust fund that pays paying job opportunities. Many employers do not benefits to eligible workers in the event of layoffs. provide health insurance benefits. Households Fortunately, claims for unemployment insurance are facing these challenges may qualify for temporary down and more than 6,600 of Utah’s worksites have public assistance such as Food Stamps or Medicaid. jobs listed with DWS. Since many of these employers A few may be eligible for cash assistance. More than are the largest in the state, there were more than 500,000 Utahns (including children) received benefits 240,000 openings available throughout the year at the last year. Among these recipients, about 240,000 were DWS website,www.jobs.utah.gov. adults ages 18 to 64. About 42 percent of these adults also received employment services as job seekers. Job Seekers—During state fiscal year 2011, DWS is actively working to increase this ratio. DWS served 322,000 job seekers ages 18 to 64. At one time or another during the year, about 75 percent of DWS served more than 466,000 adults last year in those served were not employed. This count includes Utah. These services included rendered job search, post-secondary students looking for part-time jobs unemployment insurance, and/or public assistance after class and employed persons seeking a second services which equates to about one in every four job for some extra cash. Others have a job but are adults in the state during state fiscal year 2011. 14 March/April 2012
  15. 15. DWS also partners with education, economic development, and local government agencies to inform and support shared projects that strengthen Utah’s workforce. Distribution of Customers Served Department of Workforce Services Total Distinct Customers = 466,000 customers ages 18 to 64 Worksites = 85,000 State Fiscal Year 2011 Employers ConnJob 85,000 ectio Unemployment n Insurance Claimants 113,000 Public Assistance Recipients 240,000 Labor Exchange Customers 322,000jobs.utah.gov/wi Trendlines 15
  16. 16. the outlook | by lecia parks langston, economist Profiling Utahs W hen misused, the word ‘pro- filing’ can certainly have some negative connota- tions. But accessing sufficient data to Labor Force— provide a demographic profile is a good thing. Understanding the na- ture of our labor force provides pro- ductive information for planners at the individual, business, and public- Its a Good Thing. . . sector level. Fortunately, the American Communi- ty Survey provides a vast storehouse of information about Utah’s labor force. This particular profile includes data from the recently-released 2010 one-year estimates. Not in labor Utah Labor Male 55.9% Bachelors Unpaid degree or family force 31.6% higher 31.9% workers Female 0.1% 44.1% Employed Self- 61.8% Some employed college or 4.9% associates degree 37.2% Government Unemployed 16.6% 6.4% High school graduate Private wage 23.2% and salary 78.4% Less than high school graduate 7.7% Employment Status Gender Educational Attainment Class of Worker16 March/April 2012
  17. 17. The average Utah labor force have any kind of work-related dis-participant is most likely employed— ability. At his place of employment,although 32 percent of the population he probably has some type of sales-is not in the labor force at all. The related position. He typically works A vast amountaverage labor force participant isalso just slightly more likely to be almost 37 hours a week earning about $41,000 a year at his full-time job. If of informationmale than female. He’ll usuallyboast some college attendance or an he is married, his wife is also most likely a member of the labor force. about Utahs laborassociate’s degree. He’s most likely towork for a private sector employer, Of course, the “average” tells only force is providedbe about 37 years old, and be white(not Hispanic). He probably lives in a one small paragraph of Utah’s labor force story. As you can see from by the Americanhousehold with two or more workers. the accompanying charts, Utah’s labor force is actually very diverse. Community SurveyHe spends his 21 minute commute Plus, the work experience of itsdriving in a truck, car, or van all by numerous members is incrediblyhimself. He most likely does not varied.Force Profile 2010 Profile cont. next page Age 75+ 0.5% Native 3 or more Hawaiian and workers Age 65-74 Other Pacific 9.3% 2.8% Islander 0.9% WhiteAge 55-64 Black or African alone, not 2 workers 12.9% American 1.0% Hispanic 31.8% or LatinoAge 45-54 American Indian 86.7% 1 worker 20% and Alaska 38.8% Native 1.2% Hispanic Age 25-44 or Latino No workers 49.5% Other 5.5% origin (of 20.1% any race) Age 20-24 13.3% 14.3% Asian 2.2% Age 16-19 6.8% White 91.2% Age Race Ethnicity Workers in Householdjobs.utah.gov/wi Trendlines 17
  18. 18. the outlook | by lecia parks langston, economist For more information about Other means 1.8% Utah’s labor force from Public transportation the American Community 2.1% Work at home 4.4% Survey, go to: Walk 2.9% • http://factfinder2.census.gov Carpool in car, truck, or van 11.2% Drive alone in car, truck, or van 77.6% Profile Means of Travel to Work Production, transportation, and material moving 2010 cont. occupations 12.4% Did not work Natural resources, 21.9% construction, and maintenance occupations 9.7% Usually work 1 to 14 hours per Sales and office week 5.3% occupations 27.1% Service occupations 15.4% Usually work No 15 to 34 disability Healthcare practitioner and hours per 95.6% technical occupations 4.6% week 17.7% Usually With a Education, legal, community work 35 or disability service, arts, and media more hours 4.4% occupations 10.8% per week 55.1% Management, business, and financial occupations 13.8% Occupation Usual Hours Worked Employed by Disability Status18 March/April 2012
  19. 19. dws news | by curt stewart, public information officerWork/Life Awards 2011Continue to Focus on Employer Best 2011 Work/Life AwardPractices WinnersF or the thirteenth year, the De- •Whole Life Best Scores • Fehr & Peers – Salt Lake City partment of Workforce Services Child care, elder care, community Office of Work and Family Life involvement, balance, wellness and • Digital Financial Group – Murrayrecognized the state’s best workplac- education. • Utah Foster Care Foundation –es with the Utah Work/Life Awards. MurrayThis year there were twenty winning •Workplace Excellence Bestcompanies from around the state, Scores • DigiCert, Inc. – Lindonranging from 10 to almost 1,000 em- A healthy work environment,ployees. The Utah Work/Life Awards company culture, employee • Cementation USA Inc. – Sandyshowcase employer best practices retention and recruiting.and provide an on-going forum for • Cirque Corporation – Salt Lake Cityoutstanding companies to exchange •Business & People Success Bestideas and collaborate on challenges. Scores • Intermountain Financial Group/ Based on training, accountability, MassMutual – Salt Lake CityThe winning companies demon- professional/personal developmentstrated a dedication to hiring inter- and communication. • Equitable Life & Casualty Insurancenally and creating cultures of learn- Company – Salt Lake Citying, passion and engagement. The “The Work/Life Awards are designed“Work Life” awards are a DWS tradi- to help employers customize and • Software Technology Group – Salt match their workplace culture and Lake Citytion that does more than just rec-ognize an employer’s commitment needs of their current and future workforce,” says DWS Executive • Spillman Technologies – Salt Laketo employees; these awards also re- Cityflect the Department of Workforce Director Kristen Cox. “Winning the award is rarely about bells and whis-Services mission to connect Utahns tles. It is about culture and meaning, • CyberSource, a Visa Company –with employment. American Fork asking and responding.” These awards are presented in three • Futura Industries – Clearfieldsize categories: micro, medium “Every year this award gets harderand large organizations each with and harder to win,” said Lynette Ras- • CLEARLINK – Salt Lake Cityvarying degrees of cultural depth, mussen, Director of the Departmentworkplace identity and clarity of of Workforce Services’ Office of Work • Marriott Vacation Clubfocus. Employees are articulate & Family Life. “The success of Work/ International, Owner Services – Saltambassadors when it comes to Life Award-winning companies Lake Citydescribing impactful workplace shows up in many forms, includingexperiences and their company’s improved productivity, customer re- • Nicholas & Co., Inc. – Salt Lakesuccess in creating an exceptional lations, retention, recruitment and Cityplace to work. The Work/Life marketing.”Award focuses on four best practice • South Davis Community Hospital – The companies recognized by this Bountifulcategories. Companies that excelin addressing their employee award not only reflect the monetary value of employment but reflect the • Canyons – A Talisker Mountainand business needs in these areas Resort – Park Citysee high return on investments, values and importance of family. The strength of Utah’s workforceincreased productivity, loyalty, and their commitment to their • 1-800 CONTACTS, Inc. – Draperretention, innovation and bottom-line reward. The awards are based employees is one of the factors • Automatic Data Processing, Inc. –on the following criteria: that allows our state to weather the West Valley City storm of the recession and start the•Flexibility and Benefits Best recovery ahead of other states. For • Mountain American Credit Union – Scores more information and how to apply West JordanFlexible work arrangements, time for this award next year, contact theoff, family/flex benefits and health Work and Family Life team at 801-care. 468-0112.jobs.utah.gov/wi Trendlines 19
  20. 20. the outskirts | by lecia parks langston, economist The Highs and the Lows of Labor Force in Utah Participation E lection years bring about inevitable conversations regard- ing unemployment rates, employment ratios, discouraged workers and labor force participation. This article spot- lights one aspect of the labor force I’ve always found interesting: the labor force participation rate. When measuring labor force participation, the usual universe includes the population 16 years and older not confined to an institution (nursing homes, prisons, etc.). The universe includes individuals 65 and older who are typically retired. The participation rate is simply the percentage of that universe which is active in the labor force. To be counted in the labor force, one can either be employed or unemployed. Employed persons worked for pay or profit (or at least 15 hours in a family-owned business for no pay). A person on temporary absence from a job is also included. For example, if you are ill, on strike, on vacation, snowed in, or having a baby and will be returning to a particular job, you are counted as employed. Enumerating the unemployed is somewhat trickier. To be counted among the unemployed you must be “able and available” for work and you must have made some type of job search during the last four weeks. An exception to the job-search rule is made for workers on temporary layoff. Those not “employed” or “unemployed,” are excluded from labor force counts—the retired, stay at home parents, discouraged workers who have stopped making a job search, and teenagers just going to school. The American Community Survey five-year estimates (2006- 2010) which are available for all counties, allow us to compare participation rates across Utah. Participation rates vary from only 51 percent of the 16 years-and-older population in Daggett and Piute counties to 73-75 percent in neighboring Wasatch and Summit counties. Studies have shown—particularly20 March/April 2012
  21. 21. The labor force participation includes the population 16 years and older, as well as individuals 65+. for women—a high correlation between educational participation in individual families to make ends meet. attainment and labor force participation. Interestingly, It seems reasonable to suppose that counties with a Summit County also shows the highest proportion of high proportion of seniors would show low labor force individuals with a bachelor’s degree or higher in the participation rates. Statistical analysis indeed shows state. Population-dense Wasatch Front metropolitan a strong correlation between the percentage of the counties all display higher-than-average labor force population over the age of 65 and a low labor force participation rates. Yet, some small rural counties also participation rate. Given the fact that women tend to maintain high rates—notably Garfield (71 percent) and participate in the labor force at a lower rate than men, I Wayne (69 percent). Interestingly, both of these counties thought there might also be a relationship between the display a significant tourism-related component to share of the labor force that was female and low overall their employment base. Perhaps the seasonal, low-pay participation rates. Not so. There appears to be only a nature of these jobs require a higher rate of worker weak correlation between the two. 2006-2010 Labor Force Participation Rate For more information about individual county labor force data, check out the American Community Survey data at: • http://factfinder2. census.gov Source: U.S. Census Bureau; American Community Survey Five-Year estimate.jobs.utah.gov/wi Trendlines 21
  22. 22. occupations | by linda marling church, research analyst System Analysts: The Link Between Business and Information Technology I want to streamline a production process within my solutions and ways that they can be customized to company. Sounds simple, right? I want to make a few benefit your business. For example, they can recommend changes here and there and it’s done. While making the most suitable web application for your business or minor changes may sound simple, many questions may organization and develop ways to incorporate the power arise, that if not analyzed and answered carefully may of multiple web applications in order to solve business cost a lot of money and make an inefficient process problems. They can identify the most efficient software even worse. I need new computer equipment and I need in terms of speed, usability, cost of implementation, to plan for the cost and implementation of the new and maintenance. Utilizing your system analyst to system. How long will production be held up, and how recommend suitable hardware and recommend server will this affect my employees? Will I be facing layoffs architecture will enhance your company‘s bottom line. or will I be paying overtime? System analysts make the communication between information technology and Melding the potentially disparate goals of the business business departments possible. They bridge the gap owner, a supervisor, an accountant, a computer between what a business wants to do and how it can be programmer and production worker into a productive done, taking into consideration all the consequences of and profitable system is the task of the system analyst. doing so. Most analysts have computer science or information science degrees. They must understand math, computers, System analysts learn the relationships and interactions planning, and have exceptional communication and of your business system and the elements that compose critical thinking skills. Writing skills are essential it. They develop and test strategies for managing the when gathering information from a variety of sources system and improving its outcome. System analysts and different levels of management. The ability to understand the architecture behind different software explain their systems and give clear instructions and22 March/April 2012
  23. 23. Most analysts have computer science or information science degrees.recommendations is key to the success of the analyst. According to the Bureau of Labor Statistics, employmentSince system analysts work in a variety of fields, a of computer system analysts is expected to grow by 20degree that corresponds with the field is often required. percent from 2008 to 2018, which is a much faster rateFor instance, many MBAs also have a concentration in than the average occupation. Demand for these workersinformation systems, bank system analysts may have will increase as organizations continue to adopt anda degree in finance, and an analyst employed by a integrate increasingly sophisticated technologies andhospital may have training or experience in health care. as the need for information security grows. The annualSince technology is changing rapidly, ongoing training median wage for this occupation in the United States isis a must. about $78,000 for those with a bachelor’s degree. 2008-2018 Employment Projections for Computer Systems Analysts Current Projected Annual % Total Annual Star Area Name Employment Employment Change Openings Rating Utah - 2,871 3,598 2.5 140 4 Statewide Metro Utah 2,710 3,390 2.5 130 5 Nonmetro 80 100 2 0 3 Utah United States 532,180 640,270 2 22,280 Resources: Utah Economic Data Viewer • http://jobs.utah.gov/jsp/wi/utalmis/default.do • www.bls.govjobs.utah.gov/wi Trendlines 23
  24. 24. whats happening | by john mathews, economist A New System of Classifying Occupations by Education and Training A new classification structure provides an in-depth look at occupations and needed training. J ob seekers, students, and anyone interested in work- This system ing want to know what educational and training re- was used to quirements are needed to get started in an occupation. assign training Do I need a degree, work experience in a related occupation, levels in the on-the-job training, or a combination of the three to Utah Job jump into the world of work? Well, it depends on the oc- Outlook for cupation you are interested in. The U.S. Bureau of Labor 2008-2018. It was Statistics (BLS) has developed a new classification system a one-dimensional classification structure that assigned that addresses the question of “delineating the most one of the above training codes to the list of the some common way persons prepare for an occupation.” 750 occupations in the Utah Job Outlook. What the prior classification system didn’t do was provide the job seeker In the past, the BLS has assigned training codes defining with two other important dimensions for describing how workers prepared by determining the typical way one occupation other than the typical educational level needed enters an occupation. This system, which we used at the for entry. These two included a category defining work Department of Workforce Services, specified 11 training experience in a related occupation, and the typical on- levels as the typical method of job entry. This hierarchy the-job training (including apprenticeship or internship) was a continuum starting with academic credentials needed to attain competency in the occupation. (degrees) and ending with basic short-term on-the-job training. Here is the list of the 11 education/training The new system addresses these added dimensions by levels: providing three education/training categories instead of one. First, and similar to the original 11 assignments, • First professional degree is the typical education needed for performing a job. Second, is an indicator of the level of work experience • Doctoral degree needed in a related occupation, and third, the level of • Master’s degree on-the-job training called for. Now job seekers can gain a better understanding of what is needed for success in • Bachelor’s or higher degree, plus work experience a given occupation. Below is a table showing the new • Bachelor’s degree three-dimensional classification of level of training, work • Associate degree experience, and on-the-job training (see table 1). • Postsecondary vocational awards By the Numbers—Some notes • Work experience in a related occupation In the Standard Occupational Classification (SOC) system, • Long-term on-the-job training (including skilled there are 750 job titles that are assigned 1) a typical level and apprenticed trades) training in OJT setting of education for entry, 2) work experience in a related and/or in formal classroom setting for one year or occupation, and 3) the level of on-the-job training needed more for competency in the occupation. Some occupations only call for the education and training (showing “none” • Moderate-term on-the-job training—from one for the work experience and on-the-job training criteria). month up to one year Others have a mix of all three. For example, most manager • Short-term on-the-job training—short job titles call for a bachelor 

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