1. 2016 Employer Needs Survey Joshua Levy Senior Policy Analyst
Labor and Economic Analysis Division (LEAD)
NC Department of Commerce

2. Background In search of the “Skills Gap” History and recent research
How do we know it when we see it?
Background

3. Research Defining the terms Labor markets are markets
Shortages and mismatches, hiring difficulties
Geography, industry, and occupation
Labor markets are markets
Surveys, Supply and Demand models, Wage growth
Research
Use some of Andrew’s research on mismatch, incorporate other recent research

4. What is the current and recent state of hiring by employers in the state?
Are employers having difficulties hiring, and if so, which employers and to what extent?
What reasons do employers give for hiring difficulties?
What can job vacancies tell us about hiring demand and potential difficulties?
What are employers’ current strategies for recruiting and retaining employees?
Survey Goals

5. Survey Overview Update & enhancement of 2014 survey
1,903 surveys collected
all sized companies (previously employees)
industry mix similar to the state
all 100 counties participated
Phone interviews by NCSU Center for Urban Affairs & Community Services
Focus on four industries: Manufacturing, Construction, Healthcare, and STEM
Survey Overview

6. Trends Compared to 2014… Hiring remains strong – same as 2014
Hiring difficulties still exist – same as 2014
Still no difference between urban & rural counties
Top 3 reasons for difficulties remain
Increase in citing soft skills difficulty
Trends Compared to 2014…

7. Hiring Overall sample—68% attempted to hire in the past 12 month
1-9 employees, 52% tried to hire
employees, 89% tried to hire (same as 2014)
Four Industry groups similar (50-60% for all sizes, % for )
Hiring
Fix this

8. Trends Compared to 2014*…
Statistically the same as despite a more competitive market
70% said difficulties are “about same as last year”
11% perceive improving
19% perceive declining
* Comparing only those w/ employees

9. Work Experience
Education,
Certification, Training
Technical Skills
Soft Skills
Criminal Record
Low Pay
Failed Drug Screening
Hiring Difficulties *among all hiring employers experiencing difficulties

10. Hiring Difficulties *all hiring employers by Industry
* Healthcare difficulty mostly in establishments w/ 10+ employees

11. Top Reasons for Hiring Difficulties by Industry
Many Similarities Between Industries
Technical or Occupation-Related Skills
Relevant Work Experience
Education Level, Certification, or Training
Some Differences
Manufacturing and Construction—over 50% chose technical skills and work experience, only 25% chose education
Healthcare—nearly 50% chose education, then technical skills, work experience. Low pay an issue for 25%
STEM—over 50% chose technical skills and work experience, followed by education and soft skills
Top Reasons for Hiring Difficulties by Industry

12. Other Reasons for Hiring Difficulties
Lack of work ethic, dependability issues
Low number of applicants, rural location, transportation
Lack of interest in industry/occupation
Increased competition improved economy
Negative characteristics of workplace or job
Inability to offer higher wages
Other Reasons for Hiring Difficulties

13. Hiring Difficulty by Position Experience Required
Among the Four Industries…
Entry-level positions much easier to fill
The more experience needed, the greater hiring difficulty
58% of “experienced” positions are very difficult to fill
Experience Gap ?
Hiring Difficulty by Position Experience Required
Entry
Mid
Experienced*
Manufacturing
23%
30%
50%
Construction
33%
38%
65%
Health Care
13%
15%
STEM
10%
14%
62%
* Experienced positions = or more years experience

14. Recruiting Resources all industries
Word of Mouth
Internet Job Boards
Company Websites
Community Colleges
Social Network Sites
Local Newspapers
Universities
NCWorks Online
NCWorks Career Center
Recruiting Resources all industries
24% used Word of Mouth Exclusively, had less difficulty

15. Skill Training Resources
On-the-Job Training
Private Vendors
Community Colleges
Universities
Apprenticeship Programs
Skill Training Resources
OJT: Area of Future Study
What level of On-the-Job Training is offered?
Types of training and for whom?
How many companies do not offer structured training?
Fix other, 13%

16. 45% of all organizations plan to hire in the next 12 months
61% with 10+ employees
30% of small employers (<10 employees)
Similar across all 4 industries
Hiring Outlook
Delete All Industries

17. Conclusions The Big Takeaways Policy Implications
Hiring Difficulties remain the same—4 out of 10 overall
Work Experience, Education, and Skills all matter
Different issues for different industries and occupations
Policy Implications
Opportunities for Workforce Development System
Apprenticeships to provide work experience
Increased engagement with employers for recruitment as well as skill development of existing workforce
Sharing findings with and learning from jobseekers
Conclusions

18. Questions ?