Labor Market Information:

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• Labor Market Information
• Key Factors Driving Current Future Job Demand
  in Michigan

Michigan Department of Technology, Management
Budget Bureau of Labor Market Information
Strategic Initiatives
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Key Factors Driving Job Demand

• What are some of the key current trends in the
  Michigan labor market?
• What are likely to be some of the key future
  trends in the Michigan labor market?
• For some of Michigans key sectors
• What are the key factors driving current job
  demand in those industries?
• What may be some of the factors impacting future
  job demand in these sectors?

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Who We Are

• Bureau of Labor Market Information and Strategic
  Initiatives, part of the Department of
  Technology, Management and Budget
• Responsible for producing and publishing
  information and analysis on the Michigan
  workforce and the states regions and counties
• Most of our staff is located in Detroit, but a
  few economic analysts are situated in Lansing and
  other Michigan regions
• Information on employment, unemployment, industry
  job trends, skill sets, occupations, wages,
  demographics of the labor pool, etc.

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Key Recent Labor Market Trendsin Michigan

• Labor force decline may have bottomed out
• Michigan workforce levels fell for six
  consecutive years from 2007-2012
• Workforce levels rose by 37,000 in 2013, the
  first increase since 2006
• Michigan jobless rate dropped in 2013 for the
  fourth consecutive year, but remains above
  pre-recessionary level
• Far fewer layoffs recently of persons with jobs,
  but job market remains competitive for the
  unemployed
• Average duration of unemployment at a very high
  level about 39 weeks

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Jobless Rate Gap (Michigan vs. U.S.) Has Narrowed
Since 2009 Michigan Rate Still Above 2008 Levels

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Recent Trends in Jobs

• Payroll jobs advanced in Michigan in 2013 for the
  third consecutive year
• Michigan job gains over the last several years
• Manufacturing
• Health care
• Technical services
• Temporary help services
• Restaurants
• Mortgage banking
• Job losses primarily in government

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Recent Trends in Job Openings

• Michigan top occupations with online job
  vacancies
• Registered nurses
• Truck drivers
• Retail sales workers and managers
• Industrial engineers
• Customer service representatives
• Mechanical engineers
• Computer systems analysts
• Faster openings growth over year in services,
  transportation, installation repair, health
  care support, and management occupations
• Slow growth over year in clerical and sales job
  postings
• Diverse set of industry sectors posting jobs

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Potential Future Trends in the Michigan Labor
Market

• Michigan population and labor force growth
  expected to be more modest than national average
• Aging of the workforce will impact demand for
  goods and services, and produce job openings for
  replacement workers
• Above average job growth expected for jobs
  requiring an associates, bachelors, or masters
  degree
• Continued upskilling of jobs expected in some
  sectors in terms of educational/training
  requirements
• Additional educational attainment will continue
  to be associated with lower unemployment rates
  and higher wages

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Michigan Health Care Jobs Record Job Levels in
2013
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Health CareRecent Factors Driving Job Demand

• Only sector in Michigan with continuous job
  expansion even through the recession
• Strong job gains in doctors offices, hospitals,
  home health care, social services
• Investment in health care technology has created
  jobs in Michigan
• Several prestigious medical centers in Michigan
  attract patients and conduct medical research
• The aging of the Michigan population has
  generated increased demand for health services

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Health CareFactors That May Impact Future Job
Demand

• Continued aging of the population Baby-boom
  generation will be entirely 55 by 2020
• Health status of the population
• Emphasis on preventative care and home care could
  change dynamics of job demand
• Continued pace of investment in health care
  technology
• Health care labor supply will need to replace
  an aging health care workforce
• Health care reform and the need for cost
  containment in the overall health care system

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Michigan Professional Technical Services
Jobs Jobs at Highest Level Since 2001
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Professional Technical ServicesRecent Factors
Driving Job Demand

• Sector is a key source of knowledge jobs for
  the Michigan economy many high skillhigh wage
  positions
• Strong recent job additions in Engineering
  services, IT services, Research and development
• Michigan highly ranked nationally in number and
  share of science and engineering jobs
• Strong recovery of auto industry has promoted
  much of the recent job expansion in this sector
• Increased jobs in business consulting and IT
  services have benefited by rebound in business
  investment after recession

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Professional Technical ServicesFactors That
May Impact Future Job Demand

• Michigans competitive advantage A very high
  current share of jobs in engineering services
• Future concentration of white collar technical
  jobs related to the auto industry
• Pace of insourcing or outsourcing of IT functions
• Technical jobs comprise an increased share of
  total jobs across many industries, leading to
  overall job gains
• Technical services labor supply
• Highly educated with most jobs requiring
  bachelors, associates degrees and above
• Women are underrepresented in IT and engineering
  positions

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Michigan Manufacturing Jobs Led Job Recovery
Since Recession
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ManufacturingRecent Factors Driving Job Demand

• Manufacturing jobs in Michigan
• Cut in almost half from 1999 to 2009
• Sector is top source of job growth over last year
  in Michigan economy
• Recent job expansion primarily reflects strong
  rebound in domestic auto sales and auto
  production
• Significant levels of investment in Michigan auto
  assembly operations
• Job advances since 2009 reflect both recalls of
  laid off workers and new hires
• Broad gains, with job growth rates of over 25
  percent since 2009 in fabricated metals,
  plastics, primary metals, autos, and machinery
  manufacturing

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ManufacturingFactors That May Impact Future Job
Demand

• Michigans competitive advantage Skilled labor
  supply in advanced manufacturing production and
  auto-related design and engineering
• Productivity gains and automation will tend to
  limit long-term job expansion in manufacturing
• Pace of insourcing or outsourcing of production
  work
• Michigan manufacturing success in export markets
• Labor supply issues
• Production jobs increasingly require technical
  education and skill
• Young people will need to be attracted to
  production occupations to replace an aging
  workforce

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Michigan Employment Services Jobs Rapid Response
to Improved Post-Recession Economic Conditions
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Employment ServicesRecent Factors Driving Job
Demand

• High sensitivity to economic conditions
• 24 percent job drop in Michigan from 2007 to 2009
• All of this job loss recovered in 2010-2012
• Temporary help sector now supplies labor to a
  wide range of private and public employers
• Not all statistics on job gains in this industry
  reflect new jobs some reflects a shift in jobs
  to temporary agencies or professional employer
  organizations
• Temporary help jobs increasingly used in early
  stages of an economic recovery?

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Employment ServicesFactors That May Impact
Future Job Demand

• Will employers increase utilization of a
  just-in-time labor supply?
• Increased staffing flexibility
• Quality of the temporary workforce and training
  issues
• Some workers in temporary jobs may value mobility
  across job assignments others may prefer to
  migrate into permanent work through a temporary
  assignment
• Temporary workforce now has wider diversity in
  occupations and skill levels than before
• Average weekly wage in employment services only
  two-thirds of wage for all private sector jobs

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Michigan Restaurant Industry Jobs Jobs Rebound to
2007 Levels
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RestaurantsRecent Factors Driving Job Demand

• Recent Michigan restaurant industry job growth
  matched the rate of gain of private sector jobs
• 2012-2013
• Michigan Private Sector Jobs 2.3 percent
• Michigan Restaurant Industry Jobs 2.4 percent
• Disposable income gains positive in Michigan for
  3 consecutive years
• 2010 2.2 percent
• 2011 4.1 percent
• 2012 3.1 percent

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RestaurantsFactors That May Impact Future Job
Demand

• Population growth
• Overall economic health
• Disposable income growth
• Consumer confidence
• Consumer preferences
• Interest in local sourcing of food and nutrition

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DTMB Labor Market Information Website
(www.michigan.gov/lmi)

• Contains current monthly and quarterly data on
  the Michigan and regional job markets
• Economic data can be downloaded on a customized
  basis using Data Explorer tool
• Many publications with information on regional
  workforce trends
• Employment, unemployment, industries,
  occupations, forecasts, more

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Other Useful Websites

• Bureau of Labor Statistics
• www.bls.gov
• Census Bureau
• www.census.gov
• American Community Survey
• www.census.gov/acs/www
• OnTheMap
• http//onthemap.ces.census.gov
• Bureau of Economic Analysis
• www.bea.gov

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Key Factors Driving Current Future Job Demand
in Michigan

• For additional information
• Bureau of Labor Market Information Strategic
  Initiatives
• Bruce Weaver
• Manager of Labor Market Analysis
• 313.456.3091
• weaverb1_at_michigan.gov
• Please visit our website at www.michigan.gov/lmi