PNAIR Conference November 8, 2012 Tim Norris Education Research and Data Center Washington State Office of Financial Management Using workforce information to help identify future needs

Session Agenda What’s available? Where can I get it? How can I use it?

In a Nutshell Workforce information

Three components Industry  Employment levels, number of companies Occupations  What are people doing  What skills are needed Education  Bridging together employer needs and skills of workers

Bombarded with Acronyms??? USDOL SOC NAICS UI LMI CIP

Coding Systems

Number of employees and wages by NAICS code Grouped by size of employment and type of employment Economic development strategies Forecast of industry trends (growth over 2-yr, 10-yr period) Industries Occupations Number in occupation Wages by occupation Organized by O*Net/SOC code Analyzed by assessment tools Grouped by education & experience Linked to training program Cross-walked to industry patterns Forecast of average annual openings (growth + net replacement) Education Number of enrollments Organized by CIP code Workforce and skills Degree seekers

NAICS is the abbreviation for North American Industry Classification System This coding system is used by statistical agencies of the government to collect, analyze and publish sector and industry data. It replaces the old Standard Industry Code (SIC). NAICS codes are used in the U.S., Canada, and Mexico. This code starts with two digits, with each added digit narrowing the category further for a maximum of six digits.

NAICS = economic sector 722 = economic sub-sector 7222 = broad industry group = specific NAICS industry

NAICS Breakout 72 = Accommodation and Food Services 721 = Accommodation 722 = Food Services and Drinking Places 7221 = Full Service Restaurants 7222 = Limited Service Eating Places = Limited Service Restaurants (fast food and pizza places) = Snack & Nonalcoholic Beverage Bars (coffee bars and ice cream parlors)

The NAICS Sectors Agriculture, Forestry, Fishing & Hunting Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation & Warehousing Information Finance & Insurance Professional, Scientific and Technical Services Real Estate, Renting and Leasing Management Services Admin., Support, Waste Educational Services Health and Social Services Arts, Entertainment & Recreation Accommodation and Food Other Private Services Public Administration

Occupation coding Describes what people do Work characteristics of those who do Common personality traits Used by all federal programs when looking at occupations

Where Did It Come From? In the beginning there were…. DOT — Dictionary of Occupational Titles SOC — Standard Occupational Code O*NET — Occupational Information Network

SOC Groups Used in O*Net Management Business & Financial Operations Computer & Math Science Architecture & Engineering Life, Physical & Social Science Community & Social Services Legal Education, Training & Library Arts, Design, Entertainment, Sports & Media Healthcare Practitioner & Technical Healthcare Support Protective Service Food Preparation & ServingFood Preparation & Serving Building & Grounds MaintenanceBuilding & Grounds Maintenance Personal Care & ServicePersonal Care & Service Sales & RelatedSales & Related Office & Admin SupportOffice & Admin Support Farming, Fishing, ForestryFarming, Fishing, Forestry Construction & ExtractionConstruction & Extraction Installation, Maintenance & RepairInstallation, Maintenance & Repair ProductionProduction Transportation & Material MovingTransportation & Material Moving Military SpecificMilitary Specific

O*Net: The Occupational Information Network This coding system is used by statistical agencies of the government to collect, analyze and publish occupational data. It replaces the old Dictionary of Occupational Titles (DOT). This coding system includes all types of jobs and allows query of job titles, skills and tasks. The O*Net code has eight digits. The Standard Occupational Code (SOC) comprises the first six digits. Each digit narrows the category further.

O*Net-SOC Example: 35 = major group, or job family = minor sector = broad group = detailed group = complete O*Net code Note: O*Net includes all eight digits; the Standard Occupational Code (SOC) includes only the first six digits.

29 = Healthcare Practitioners &Technical Occupations = Professional to patient service (e.g. MD, DD, therapists) = LPNs, Technologists and Technicians = Specialists, Trainers, and All Others = Lab Technologists and Technicians = Dental Hygienists = Medical Equipment Technologists (e.g. Radiologists) = Emergency Medical Technicians and Paramedics = Dietetic Technicians = Pharmacy Technicians = Psychiatric Technicians = Respiratory Therapy Technicians = Radiologic Technologists = Radiologic Technicians Coding Example

Classification of Instructional Programs (CIP) Supports the tracking and reporting of fields of study and program completions activity Originally developed by U.S. Dept of Education Taxonomy is hierarchical in nature

What we know… The NAICS codes is used to classify industries The O*NET/SOC codes are used to classify occupations CIP code is used to classify education programs

Information about Occupations Employment and wages Industry staffing patterns Forecasts of employment and job openings Education and training classification  Typical education needed for entry  Work experience in related occupation  Typical on-the-job training needed to attain competency

Source of Data Occupational Employment Statistics (OES)

An employer survey which produces employment and wage-rate estimates by occupation and industry for states and areas All industries surveyed each year, rather than every third year Baseline for industry and occupation estimates

Information from OES Employment by occupation Wage ranges by occupation Occupational breakout by industry Collected twice a year and published annually Available for state and MSAs (workforce areas in some states) Data “aged” to bring up to date - ECI

OES Staffing Patterns Estimates Data developed with most current 3 years of data Employment by occupation tallied for each detailed industry Staffing ratios developed represent each occupations share of industry employment Industry-Occupation matrix established shows what industries employ what occupations Shows what occupations are employed in an industry

Education and Training Classifications Developed by Bureau of Labor Statistics Helps us answer questions like:  What is the demand for workers with a college degree (or some level of education)?  What training or experience is needed in different careers, in addition to formal education? Three categories of information for each occupation:  Typical education needed for entry  Work experience in a related occupation  Typical on-the-job training needed to attain competency in occupation

Education and training classifications Typical entry-level education Work experience in a related occupation Typical OJT needed to attain competency Doctoral or professional degree More than 5 yearsInternship/residency Master’s degree1-5 yearsApprenticeship Bachelor’s degreeLess than 1 yearLong-term OJT (more than 1 year) Associate’s degreeNoneModerate-term OJT (1 to 12 months) Postsecondary non- degree award Short-term OJH (less than 1 month) Some college, no degreeNone High school diploma or equivalent Less than high school

Education and training classifications for SOC codes

Percent change in employment by typical entry-level education category Percent change, projected Average, all occupations = 14.3%

SOC to CIP Crosswalk

Employment Forecasts Expected change in employment By industry and by occupation Current and projected employment counts Growth rates and average annual openings Short (2yr) Medium (5yr) and Long (10yr)

Employment Forecasts

What we know… The NAICS and O*NET/SOC are used to classify industries and occupations The OES survey is the basis for employment and wage estimates and baseline employment levels The OES survey also helps identify staffing patterns for an industry and the inverse that shows which industry employ an occupation BLS also has established an education and training classification for each occupation. SOC to CIP relationships can be mapped Short and long-term employment forecasts

Putting it all together Economic Development  Firm moving to the area or expanding  What is the available workforce?  Is their capacity for staff training Training for specific jobs  High skill, high wage  Green jobs  Demand jobs  STEM jobs  Fastest growing

Economic Development Get the NAICS code of the company From the NAICS, get the typical staffing patterns for that industry  Identify the primary occupations for that company For those occupations, identify the education requirements  Link to CIP code  Identify enrollments and completers Perform analysis  Supply vs. demand Develop a plan

Training for specific occupations Identify the group of occupations  O*NET or state resources  Occupations within industry cluster  Sort employment forecasts by occupation Link education requirements to occupations Link CIP code(s) to occupaiton

Data Sources

Getting the data CIP/SOC crosswalk  US Dept of Education  Education and training classification  Bureau of Labor Statistics  Industry/Occupation crosswalk (national)  BLS  Industry/Occupation crosswalk (state and area)

Getting the data Occupation Employment and Wages  Bureau of Labor Statistics  Link to state labor market information offices  O*NET Online 

TIM NORRIS EDUCATION RESEARCH AND DATA CENTER Contact Information