Workforce Challenges of Electric Power Employers in the Pacific Northwest, 2013-2020 PNCECE Advisory Board Meeting Research Design Alan Hardcastle Sr. Research Manager Mossyrock Dam Photo courtesy of Tacoma Power

Goals for Today: Design Plan Discussion 2013 Core Topics, Analyses Input: Additional Topics and Analyses Financing the Study Study Launch: Fall 2019 Next Steps

National Context: Major Factors Post-Recession Economy Retirement Trends Technology: (Digital, Grid, Data and Analytics) Shrinking Labor Pool Knowledge and Skill Gaps

Regional Context Economic Impact Workforce demographics Future labor supply Education and training Regional hydropower system

Utility Industry Employment by State, 2008 vs. 2011 Nearly 40,000 jobs in 2011 across the 5 states, all employment (public-private, state-federal)

Good Jobs: Average Annual Wages, Utilities vs. All Employment, 2011

2011 Utility Employment by Age Cohort and State, vs 2011 Utility Employment by Age Cohort and State, vs. All Industries (5-states)

Population and Workforce Shifts Retirements likely to increase, especially as economy improves Working age population lags retiree cohorts Nearly all industries and occupations More ethnically-diverse labor pool Under-represented in higher education Millennial Generation (born 1981-2000): Different attitudes, expectations about work “…knowing when and how to lead, delegate, train and support the younger generation of employees can be challenging but is key to developing the future workforce and leveraging the unique knowledge, skills and curiosity that new, younger workers often bring to the job.” Source: Skill Profile for Utility Foremen, 2018 More than one-in-three American labor force participants (35%) are Millennials, making them the largest generation in the U.S. labor force. Pew Research Center Millennials have been called a 'lost generation' because of the impact the recession could have on their future employment and wage-earning potential. – Christian Science Monitor

Washington's Utility Workforce Employment: Counts by Yearly Averages and Worker Age, 1998   Bell curve

Washington's Utility Workforce Employment: Counts by Yearly Averages and Worker Age, 1998, 2008 By 2008 the profile had shifted markedly, more of a bow wake, the super silver sled to non-retirement, as people waited for their pensions and 401Ks to recover.

Washington's Utility Workforce Employment: Counts by Yearly Averages and Worker Age, 1998, 2008, 2018 But the trend continued, especially at the upper age groups, 55 and up. In 1998 just 15% of utility employees were 55+, in 2018 that number more than doubled, to 32% (up from 30% in 2011). So, anecdotally we’re hearing about retirements happening, but these data suggest that we still have a retirement challenge – are we ready for that? What has happened in the last 5 years? How are our utilities coping? How are employers responding and are they adapting to changing labor markets?

Current Vacancies and Projections   Number of vacancies 2013 Projected Openings, 2013-2015 Operators 28 2 Mechanics 15 18 Electricians 39 6 Technicians (Instrument/ Control/ Relay/ Meter) 24 1 Line Workers 60 Power Systems Operators Power Engineers 67 17 Customer Service Representatives 51 Energy Efficiency Program Managers 3 TOTAL 305 48 Fairly modest # of vacancies then, and projections of new jobs (growth, not retirements) very low.

Retirements Forecasts, 2013-2017 Occupation # Employers projecting retirements # Projected Retirees % of current workforce Operators 13 152 15% Mechanics 14 150 16% Electricians 251 26% Technicians 158 19% Line Workers 12 386 18% Power Systems Operators 10 66 17% Power Engineers 177 20% Customer Service Reps 144 9% Energy Efficiency Project Managers 8 38 23%    TOTAL*   1,522 Retirements clearly viewed as challenging

Study Conclusions Recession: demand down, companies right sizing, looking for experienced people. Openings at mid and upper levels hardest to fill—limited supply. Retirements imminent—replacement concerns Fewer entry level vacancies and apprenticeships-no room to enter Greater reliance on technology and automation Rising knowledge and skills bar

Implications Short-term solutions Longer-term strategies Retire-rehire Knowledge transfer Restructuring, technology Longer-term strategies Partnerships-leverage resources, effectiveness Enhance education/training capacity Adapt to the future labor market Region and State Policy Align economic development/workforce for energy Invest in effective collaborations/strategies/practices Focus on emerging needs, skills Upgrade related programs, reward innovation Promote/require work-based learning for all students

Looking Ahead: Design and Launch Input: Topics and Analyses Resources: Financing the Study Study Launch: Fall 2019 or 2020 Next Steps

Questions?

Contact Information Alan Hardcastle WSU Energy Program hardcast@wsu.edu 360/956-2167 2013 Workforce Challenges final report and DOE project results: http://cleanenergyexcellence.org/ Or http://www.energy.wsu.edu/ResearchEvaluation/ WorkforceDevelopment.aspx