1 Workforce and Economic Development October 2012 L. Wm. Seidman Research Institute

Seidman Research University Economist Projects Work for Industry – Intel – A&D Projects – Mines Work for Govt – AZTC Report – Revenue Forecasting – Commerce Authority

For Today Economic Development Base Industries Role of Workforce in Economic Development The buzz around Technology Defining the AZ Workforce Landscape Comparing with other Metros Looking to the Future What will it take to compete? Questions

Economic Development in AZ Structure – Commerce Authority – TREO – GPEC – Cities and Counties Objectives Base Industries

Arizona Base Industries Based on both tradability and disproportionate size, many of the driving activities in Arizona can be grouped into one of three clusters: tourism and seasonal residents, high-technology manufacturing and associated wholesale trade, and call centers and back-office operations. A number of other activities that do not fit into one of these categories, such as copper mining, also help drive the state’s economy.

Base Industries cont. Each of these clusters is important in the Phoenix and Tucson metropolitan areas, though the specific leading industries within these categories vary between the two metro areas. In the balance of the state taken as a whole, only the tourism and seasonal residents cluster is a significant economic driver. Agriculture, mining, and government (particularly the federal government) are among the economic drivers in Arizona outside of the two major metro areas. Government also is important in the Tucson area, mostly due to the large size of the University of Arizona.

So what is important to attracting and retaining base Industries? Export based industries face pressures from businesses located anywhere on the planet. Their goal is to maximize profits and create positive returns on investments of capital.

Factors driving base industry migration Quality and depth of workforce Quality of transportation Infrastructure that allows the flow of resources in and products out in an efficient timely manner Quality of the energy, communications, and education infrastructure and programs Importance of Place, Moretti Tax and Regulatory Policy

The buzz around Technology Knowledge Economy Pursuits Our AZ Tech Report – Wages and signals – Mobility vs. pressure for local production – Competing with globalization and productivity – Matching tech workers with tech jobs Milken Report – 3 conclusions

Milken 1 For many years, Arizona enjoyed the Sun Belt boom. Drawn by relatively low costs and a high standard of living, new residents flocked to the state from all over the country. Arizona experienced growth not only in housing, but also in many high-tech fields. But the latest downturn has vividly demonstrated that unfocused growth is not the path to stable long-term prosperity. Like the rest of the country, Arizona is confronting tough choices as it navigates a serious recession.

Milken 2 To be clear, Arizona has pivotal resources with which to pursue more aggressive technology-based development. It is home to three large research universities (Arizona State University, the University of Arizona, and Northern Arizona University) and several mature high-tech industries. The state also has in place organizations dedicated to promoting technology growth, such as Science Foundation Arizona, and boasts a unique ability to attract businesses and talent from around the country.

Milken 3 In order to compete on a national level—as well as with key Western rivals such as Colorado, Utah, New Mexico, and Oregon—the state will need to supply the missing pieces of the puzzle: a deeper pool of skilled, educated workers; sufficient capital to fund research and expansion by entrepreneurs; and state-level leadership that is informed and committed to implementing well-considered, long- range development strategies.

Examining the workforce landscape The Governor’s Council on Workforce Policy has developed the Arizona Workforce Connection website ( as a source of information on recruiting and employment for businesses and job-seekers. Topics covered include educational and government programs, human resources contacts, legal and labor relations information, various incentive programs, and many other elements of the Arizona workforce environment.

Arizona Statewide Occupational Employment & Hourly Wage Estimates Occ. CodeOccupational Title 10th Percentile Wage Median Wage 90th Percentile Wage Rounded Employ- ment Share of Employment All Occupations$8.60$16.40$39.192,380, Management Occupations$20.14$39.98$ , % Business & Financial Operations Occupations$16.05$27.22$ , % Computer & Mathematical Occupations$17.93$34.09$ , % Architecture & Engineering Occupations$19.13$34.88$ , % Life, Physical, & Social Science Occupations$13.67$23.08$ , % Community & Social Service Occupations$10.89$17.93$ , % Legal Occupations$17.11$33.99$ , % Education, Training, & Library Occupations$9.99$18.79$ , % Arts, Design, Entertainment, Sports, & Media Occupations$9.11$18.97$ , % Healthcare Practitioners & Technical Occupations$14.51$31.03$ , % Healthcare Support Occupations$9.02$12.84$ , % Protective Service Occupations$9.55$19.73$ , % Food Preparation & Serving Related Occupations$7.72$9.09$ , % Building & Grounds Cleaning & Maintenance Occupations$7.90$10.31$ , % Personal Care & Service Occupations$7.86$10.10$ , % Sales & Related Occupations$8.17$12.71$ , % Office & Administrative Support Occupations$9.49$15.20$ , % Farming, Fishing, & Forestry Occupations$7.70$8.94$ , % Construction & Extraction Occupations$11.19$18.09$ , % Installation, Maintenance, & Repair Occupations$10.52$19.07$ , % Production Occupations$8.72$14.25$ , % Transportation & Material Moving Occupations$8.34$13.93$ , %

Pinal County Occupational Employment & Hourly Wage Estimates Occ. CodeOccupational Title 10th Percentile Wage Median Wage 90th Percentile Wage Rounded Employ- ment Share of Employment Diff from AZ All Occupations$8.39$15.76$ , Management Occupations$23.19$41.36$68.532, % -1.46% Business and Financial Operations Occupations$13.50$24.91$42.861, % -2.10% Computer and Mathematical Occupations$16.52$28.58$ % -2.22% Architecture and Engineering Occupations$20.23$34.12$ % -1.30% Life, Physical, and Social Science Occupations$15.39$25.44$ % -0.22% Community and Social Service Occupations$10.20$20.90$ % -0.01% Legal Occupations$17.83$33.84$ % -0.42% Education, Training, and Library Occupations$10.18$18.00$28.324, % 1.95% Arts, Design, Entertainment, Sports, and Media Occupations$11.86$18.43$ % -0.48% Healthcare Practitioners and Technical Occupations$11.37$29.95$48.543, % 0.90% Healthcare Support Occupations$9.63$12.43$ % -1.45% Protective Service Occupations$15.47$22.28$35.285, % 6.34% Food Preparation and Serving Related Occupations$7.71$9.06$13.956, % 2.74% Building and Grounds Cleaning and Maintenance Occupations$8.40$11.32$20.671, % -0.39% Personal Care and Service Occupations$7.66$8.84$15.722, % 2.56% Sales and Related Occupations$8.10$11.23$26.624, % -2.37% Office and Administrative Support Occupations$8.80$14.23$22.867, % -4.21% Farming, Fishing, and Forestry Occupations$7.80$9.45$ % 0.51% Construction and Extraction Occupations$11.03$21.53$33.841, % -0.59% Installation, Maintenance, and Repair Occupations$12.61$20.93$32.802, % 1.49% Production Occupations$9.47$15.15$26.192, % 0.53% Transportation and Material Moving Occupations$8.09$12.85$21.793, % 0.19%

Metro Comparisons PHX Tucson San Diego Las Vegas Denver Albuquerque Salt Lake

Arizona Moving Forward Current look ahead Reasons to question the traditional prospects

Educational Attainment, Age 25 and OlderU.S.ArizonaPinal SHARES in Percent No schooling completed1.1 Nursery to 4th grade th and 6th grade th and 8th grade th grade th grade th grade th grade, no diploma High school graduate, GED, or alternative Some college, less than 1 year Some college, 1 or more years, no degree Associate's degree Bachelor's degree Master's degree Professional school degree Doctorate degree Less Than High School High school graduate, GED, or alternative Some College/Associate's Bachelor's degree Master's or Professional Doctorate degree

Unemployment rate Total, 25 years and over6.6 Less than a high school diploma11.3 High school graduates, no college 8.7 Some college or associate degree6.5 Bachelor's degree and higher 4.1 Will this picture change educational choice decisions among youth

Opportunities and Challenges A Chance to plan the future of Pinal County Tax Base and Land/Water Ownership Networking with Phx, Tucson Networking as a SW Cluster Competition will be fierce Questions?????????