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The Labor Market and the Workforce
• In recent years, there has been a fundamental shift in
the economy.
• There is greater need for a workforce with advanced
levels of education, technical, and social skill than in the
past.
• Human capital characteristics of the population are of
critical importance when considering the economic
health of a region.
Metro Boston’s
Native Born and Foreign Born Workforce
2000
16.3%
83.7%
2006
79.2%
20.8%
Native Born
Foreign Born
Source: 2006 American Community Survey, BRA Research Division Analysis
Nativity Breakdown-Metro Boston’s Workforce- 2000 and 2006
• Between 2000 and 2006, foreign-born workforce increased by almost
94,000 people. Metro Boston’s
• This amounts to an absolute increase of approximately 32%.
• While it is expected to see growth in the foreign-born population, it is
surprising to see this amount of change in a short period of time.
The LEP and EP Workforces
English Language Skills-Metro Boston’s Workforce- 2000 and 2006
Source: 2006 American Community Survey, BRA Research Division Analysis
2000
3.1%
96.9%
2006
95.3%
4.7%
EP LEP
• In 2000, close to 55,000 members of Metro Boston’s workforce had
limited English language skills.
• By 2006, close to 88,000 members of Metro Boston’s workforce could be
defined as having limited English language skills.
• This change marks an absolute increase of 37%.
Educational Attainment of the
LEP and EP Workforces
28%
17%
33%
8%
2%
9%
3%
1%
5%
22%
17%
7%
27%
15%
0%
5%
10%
15%
20%
25%
30%
35%
8th grade
or less
High School High School
Graduate
Some
College
Assoc.
Degree
Bach.
Degree
Post-
gradute
% of LEP % of EP
Source: 2006 American Community Survey, BRA Research Division Analysis
Educational Attainment by LEP and EP Workforces
• There are significant differences in the educational attainment levels of
the LEP and EP workforces in Metro Boston.
• 45% of the LEP workforce has less than a high school diploma, compared
to 6% of the EP workforce.
• Interestingly, 12% of the LEP workforce has a college degree.
• These are mostly likely people who earned degrees in their home country.
Summary of Workforce Characteristics
• Between 2000 and 2006, Metro Boston’s labor force grew
approximately 3%.
• During that same time period, Metro Boston’s foreign-born and
LEP workforces grew at a much faster rate.
– The foreign-born workforce grew 32%
– The LEP workforce grew 37%
• While growth in these populations is expected, the degree of
change in a short period of time is surprising.
• These results lend support to assertions that English language
proficiency will become a significant economic issue as the
foreign-born population begins to fill critical job vacancies.
Source: 2006 American Community Survey, BRA Research Division Analysis
Characteristics of the 2004 Labor Market
All Jobs by Language Skill Requirement in Metro Boston-2004
Low
Employment
19%
Average wage
$25,043
Medium-Low
Employment
30%
Average wage
$33,145
Medium-High
Employment
34%
Average wage
$53,680
High
Employment
17%
Average wage
$71,117
Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.
• Overall, 64% of all jobs in the labor market fall in the medium-
low or medium-high language skill categories.
• There is a clear connection between language skill requirements
and salary.
• The highest language skill category pays almost 3 times more
than the lowest language skill category.
• While there are jobs available to people with limited language
skill, these jobs pay dramatically less than jobs requiring even
modest language skills.
Characteristics of Expected New Jobs for 2014
Projected New Jobs (2004-2014) by Language Skill Requirement
Low
3% Growth
7% of New Jobs
Average wage
$17,998
Medium-Low
6% Growth
20% of New Jobs
Average wage
$29,079
Medium-High
11% Growth
41% of New Jobs
Average wage
$57,930
High
16% Growth
32% of New Jobs
Average wage
$74,109
Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.
• The number of new jobs created in our region available to people
with limited language skills will be severely limited.
• 93% of new jobs created in the region will require at least
modest language skills.
• Projected growth is much smaller in occupations requiring low
and medium-low language skill as compared to medium-high and
high language skill.
• New jobs in the highest language skill category pay more than 4
times better than new jobs in the lowest language skill category.
Language Skill Requirements in the Labor
Market-Current and New Jobs
Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.
Language Skill Low Medium-Low Medium-High High
Wages-Current
Jobs
$25,043 $33,145 $53,680 $71,117
Wages-New Jobs $17,998 $29,079 $57,930 $74,109
Conclusions
• These data demonstrate that the foreign-born workforce and the
workforce with limited English skills continues to grow in our
region.
• Consistent with recent trends and previous research.
• Population trends indicate immigrants will likely be relied on to fill
critical job vacancies in our region in the future.
• Human capital concerns.
• At the same time, we see significant disparities in the proportion,
pay, and growth rates of occupations requiring low language skill
and those that require advanced language skill.
• Quality of life issues for those with limited English skills.
• These data underscore the importance of ESOL courses.
• High demand for these classes—large waiting lists.
• Language skills in Greater Boston’s foreign-born workforce is both
an economic development issue for the region, as well as a quality
of life issue for a growing segment of the region’s population.
Conclusions
• These data demonstrate that the foreign-born workforce and the
workforce with limited English skills continues to grow in our
region.
• Consistent with recent trends and previous research.
• Population trends indicate immigrants will likely be relied on to fill
critical job vacancies in our region in the future.
• Human capital concerns.
• At the same time, we see significant disparities in the proportion,
pay, and growth rates of occupations requiring low language skill
and those that require advanced language skill.
• Quality of life issues for those with limited English skills.
• These data underscore the importance of ESOL courses.
• High demand for these classes—large waiting lists.
• Language skills in Greater Boston’s foreign-born workforce is both
an economic development issue for the region, as well as a quality
of life issue for a growing segment of the region’s population.

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The Labor Market and the Workforce

  • 1. The Labor Market and the Workforce • In recent years, there has been a fundamental shift in the economy. • There is greater need for a workforce with advanced levels of education, technical, and social skill than in the past. • Human capital characteristics of the population are of critical importance when considering the economic health of a region.
  • 2. Metro Boston’s Native Born and Foreign Born Workforce 2000 16.3% 83.7% 2006 79.2% 20.8% Native Born Foreign Born Source: 2006 American Community Survey, BRA Research Division Analysis Nativity Breakdown-Metro Boston’s Workforce- 2000 and 2006 • Between 2000 and 2006, foreign-born workforce increased by almost 94,000 people. Metro Boston’s • This amounts to an absolute increase of approximately 32%. • While it is expected to see growth in the foreign-born population, it is surprising to see this amount of change in a short period of time.
  • 3. The LEP and EP Workforces English Language Skills-Metro Boston’s Workforce- 2000 and 2006 Source: 2006 American Community Survey, BRA Research Division Analysis 2000 3.1% 96.9% 2006 95.3% 4.7% EP LEP • In 2000, close to 55,000 members of Metro Boston’s workforce had limited English language skills. • By 2006, close to 88,000 members of Metro Boston’s workforce could be defined as having limited English language skills. • This change marks an absolute increase of 37%.
  • 4. Educational Attainment of the LEP and EP Workforces 28% 17% 33% 8% 2% 9% 3% 1% 5% 22% 17% 7% 27% 15% 0% 5% 10% 15% 20% 25% 30% 35% 8th grade or less High School High School Graduate Some College Assoc. Degree Bach. Degree Post- gradute % of LEP % of EP Source: 2006 American Community Survey, BRA Research Division Analysis Educational Attainment by LEP and EP Workforces • There are significant differences in the educational attainment levels of the LEP and EP workforces in Metro Boston. • 45% of the LEP workforce has less than a high school diploma, compared to 6% of the EP workforce. • Interestingly, 12% of the LEP workforce has a college degree. • These are mostly likely people who earned degrees in their home country.
  • 5. Summary of Workforce Characteristics • Between 2000 and 2006, Metro Boston’s labor force grew approximately 3%. • During that same time period, Metro Boston’s foreign-born and LEP workforces grew at a much faster rate. – The foreign-born workforce grew 32% – The LEP workforce grew 37% • While growth in these populations is expected, the degree of change in a short period of time is surprising. • These results lend support to assertions that English language proficiency will become a significant economic issue as the foreign-born population begins to fill critical job vacancies. Source: 2006 American Community Survey, BRA Research Division Analysis
  • 6. Characteristics of the 2004 Labor Market All Jobs by Language Skill Requirement in Metro Boston-2004 Low Employment 19% Average wage $25,043 Medium-Low Employment 30% Average wage $33,145 Medium-High Employment 34% Average wage $53,680 High Employment 17% Average wage $71,117 Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis. • Overall, 64% of all jobs in the labor market fall in the medium- low or medium-high language skill categories. • There is a clear connection between language skill requirements and salary. • The highest language skill category pays almost 3 times more than the lowest language skill category. • While there are jobs available to people with limited language skill, these jobs pay dramatically less than jobs requiring even modest language skills.
  • 7. Characteristics of Expected New Jobs for 2014 Projected New Jobs (2004-2014) by Language Skill Requirement Low 3% Growth 7% of New Jobs Average wage $17,998 Medium-Low 6% Growth 20% of New Jobs Average wage $29,079 Medium-High 11% Growth 41% of New Jobs Average wage $57,930 High 16% Growth 32% of New Jobs Average wage $74,109 Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis. • The number of new jobs created in our region available to people with limited language skills will be severely limited. • 93% of new jobs created in the region will require at least modest language skills. • Projected growth is much smaller in occupations requiring low and medium-low language skill as compared to medium-high and high language skill. • New jobs in the highest language skill category pay more than 4 times better than new jobs in the lowest language skill category.
  • 8. Language Skill Requirements in the Labor Market-Current and New Jobs Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis. Language Skill Low Medium-Low Medium-High High Wages-Current Jobs $25,043 $33,145 $53,680 $71,117 Wages-New Jobs $17,998 $29,079 $57,930 $74,109
  • 9. Conclusions • These data demonstrate that the foreign-born workforce and the workforce with limited English skills continues to grow in our region. • Consistent with recent trends and previous research. • Population trends indicate immigrants will likely be relied on to fill critical job vacancies in our region in the future. • Human capital concerns. • At the same time, we see significant disparities in the proportion, pay, and growth rates of occupations requiring low language skill and those that require advanced language skill. • Quality of life issues for those with limited English skills. • These data underscore the importance of ESOL courses. • High demand for these classes—large waiting lists. • Language skills in Greater Boston’s foreign-born workforce is both an economic development issue for the region, as well as a quality of life issue for a growing segment of the region’s population.
  • 10. Conclusions • These data demonstrate that the foreign-born workforce and the workforce with limited English skills continues to grow in our region. • Consistent with recent trends and previous research. • Population trends indicate immigrants will likely be relied on to fill critical job vacancies in our region in the future. • Human capital concerns. • At the same time, we see significant disparities in the proportion, pay, and growth rates of occupations requiring low language skill and those that require advanced language skill. • Quality of life issues for those with limited English skills. • These data underscore the importance of ESOL courses. • High demand for these classes—large waiting lists. • Language skills in Greater Boston’s foreign-born workforce is both an economic development issue for the region, as well as a quality of life issue for a growing segment of the region’s population.

Editor's Notes

  1. The total workforce in Boston grew approximately 3% between 2000 and 2006. Or…about a little over 59,000 people. The native born grew roughly 94,000. The among of net new foreign-born is bigger than net new workforce---indicating we are losing some native-born workers and are replacing them with FB workers.
  2. The LEP workforce grew by 32,744 (accounting for 55% of the labor force growth).
  3. Human capital concerns and quality of life concerns