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West Michigan Talent Assessment & Outlook Talent Demand Analysis and Insights for West Michigan Education, Workforce and Business Leaders A REPORT FROM THE TALENT DEMAND WORKING GROUP FIFTH EDITION | AUGUST 2018

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Page 1: A REPORT FROM THE TALENT DEMAND WORKING GROUP … … · Michigan, in order to meet the current and future needs of employers by providing actionable talent demand data and analysis

West Michigan Talent Assessment & Outlook

Talent Demand Analysis and Insights for West Michigan Education, Workforce and Business Leaders

A REPORT FROM THE TALENT DEMAND WORKING GROUPFIFTH EDITION | AUGUST 2018

Page 2: A REPORT FROM THE TALENT DEMAND WORKING GROUP … … · Michigan, in order to meet the current and future needs of employers by providing actionable talent demand data and analysis

2 | Talent Assessment and Outlook

About Talent 2025

Talent 2025 is a catalyst for an integrated talent development system for West

Michigan. Composed of 100 CEOs from the region’s 13 counties, the organization

strives to be a driving force for an ongoing supply of world-class talent by

convening leaders and organizations who will help shape a thriving economy.

Page 3: A REPORT FROM THE TALENT DEMAND WORKING GROUP … … · Michigan, in order to meet the current and future needs of employers by providing actionable talent demand data and analysis

Talent Assessment and Outlook | 3

7 Introduction and Purpose

8 Notes for the Reader

9 Executive Summary

10 Population

11 Migration Patterns

12 Educational Attainment

13 Commuting Patterns

14 Labor Force and Employment

16 Industry Jobs

18 Sector Focus

20 Agriculture

22 Energy and Construction

24 Health Care

26 Information Technology and Media

28 Manufacturing

30 Professional Services

32 Retail and Hospitality Services

34 Focus Group Insights

36 Real-Time Demand

38 Occupational Outlook

40 Forecasting Competencies

41 Sources

42 Appendices

Table of Contents

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4 | Talent Assessment and Outlook

A Note of Gratitude

We wish to express our sincere appreciation and thanks to all those who supported this project:

Partners

Marcus Reason, DTMB, Bureau of Labor Market Information and Strategic Initiatives

Norm Brady & Jen Schottke, Associated Builders and Contractors-West Michigan

Angela Huesman, Lakeshore Advantage

Marlene Brostrom, West Michigan Works!

Merri Bennett, Michigan Works! West Central

Joe Thiry, West Michigan Works!/West Michigan Tech Talent

Kristie Scarffe, West Michigan Works!

Christine McWain, West Michigan Works!

The 38 focus group participants

Talent Demand Working Group

Meredith Bronk OST

Jay Dunwell Wolverine Coil Spring Co.

Mark Lancaster EmploymentGroup/EG Workforce Solutions

Larry Murphy Varnum LLP

Benjamin Wickstrom Erhardt Construction

Bruce Adair Lakeshore Advantage

Michele Albright Ferris State University

Doug Bagley Ottawa Area Intermediate School District

Angie Barksdale West Michigan Works!

Mark Champion Grand Rapids Community College

Troy Farley Grand Valley State University

Jim Fisher PADNOS

Paul Griffith Michigan Works! West Central

Bill Guest Metrics Reporting

Angela Huesman Lakeshore Advantage

Kathy Mullins Grand Rapids Community College

Kaushik Nag Amway

Jennifer Owens Lakeshore Advantage

Jason Palmer Bureau of Labor Market Information & Strategic Initiatives

Julie Parks Grand Rapids Community College

Scott Powell Bureau of Labor Market Information & Strategic Initiatives

David Riley The Right Place

Dan Rinsema-Sybenga Muskegon Community College

Angela Roman Ferris State University

Karen Ruedinger Seidman Dean's Office, GVSU

Dave Smith The Employers' Association

Therese Thill The Right Place

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Talent Assessment and Outlook | 5

Financial Supporters

Industry Sector Focus Groups

Page 6: A REPORT FROM THE TALENT DEMAND WORKING GROUP … … · Michigan, in order to meet the current and future needs of employers by providing actionable talent demand data and analysis

6 | Talent Assessment and Outlook

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Talent Assessment and Outlook | 7

INTRODUCTION AND PURPOSE

West Michigan community leader,

This is the fifth annual West Michigan Talent Assessment and Outlook report, the result of an ongoing

collaboration between employers, educators, economic and workforce development, the State of

Michigan, and civic, community, and nonprofit organizations across the West Michigan region.

The report is a critical component of Talent 2025’s effort to catalyze and align the talent system in West

Michigan, in order to meet the current and future needs of employers by providing actionable talent

demand data and analysis for stakeholders throughout the region’s talent system.

Previous editions of the report were embraced by stakeholders as a vital resource, both for investing in

training and development programs and for promoting in-demand occupations. Each year, we’ve made

strides to enhance the information and analysis included in the report in an effort to make it as impactful

as possible.

The current state of West Michigan’s labor market and the demands of employers has changed

dramatically since the release of the inaugural report in 2014. Today, regional unemployment stands

below that of the state, at just under 4 percent. Low unemployment levels observed across the region has

fostered a challenging environment for employers to find qualified talent at all levels — regardless of skill

or job experience requirements.

In an attempt to improve talent attraction and retention, many West Michigan employers have responded

to these emerging challenges by increasing wages, emphasizing company culture, investing in the

training and development of new and incumbent employees, and by developing talent pipelines through

partnerships with education and workforce organizations.

Contributing to regional efforts to ameliorate these issues, education and workforce organizations have

cultivated new training programs for semi-skilled and skilled labor, provided information to middle and

high school students regarding in-demand jobs and careers, and more.

Although this report evaluates a breadth of widely-used economic indicators from various

publicly accessible data sources, it is important to note that there’s no perfect metric to capture

the true demand or supply of the region’s talent. To this end, we’ve conducted focus group

sessions with employers across West Michigan in order to provide context to the trends identified

in this report. The consensus — according to a majority of the region’s employers — would

suggest an underrepresentation of the true demand for talent in the region, as there’s still a large

volume of vacant job opportunities throughout West Michigan.

We hope this report is beneficial to you and your organization, whether you are an employer, education or

training institution, or community organization. Thank you to our partners for their help in creating this

report. It is unique in the country and another manifestation of the collaborative nature of West Michigan.

Regards,

Kevin Stotts, President

Talent 2025

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8 | Talent Assessment and Outlook

Notes For The Reader

• All the data discussed, or illustrated in graphs and charts throughout the report, are available on

the Talent 2025 website in a useable Excel document.

• Industry-specific insights provided from employers at each sector focus group are clearly marked

within the respective industry cluster subsection of the Sector Focus component of this report.

Conclusions drawn from these focus groups reflect the feedback given at those sessions with

those specific employers. Thus, should not be interpreted as generalizations about all employers

within a given industry sector.

• On three occasions throughout this year’s report, we have included a callout box titled “Area

Comparison.” Using the list of peer communities that were identified in our previous report, each

of which is comparable to West Michigan in terms of population and industry makeup (these

areas have populations within 30 percent of the population of the Grand Rapids-Wyoming-

Muskegon, MI CSA, as well as over 10 percent of employment in Manufacturing), allows us to

better understand and benchmark our region in comparison to similar areas throughout the

country. Background data for these regions can be found in Appendix 1. These 11 Combined

Statistical Areas (CSAs) are:

o Birmingham-Hoover-Talladega, AL CSA

o Buffalo-Cheektowaga, NY CSA

o Dayton-Springfield-Sidney, OH CSA

o Greensboro-Winston-Salem-High Point, NC CSA

o Greenville-Spartanburg-Anderson, SC CSA

o Harrisburg-York-Lebanon, PA CSA

o Hartford-West Hartford, CT CSA

o Knoxville-Morristown-Sevierville, TN CSA

o Louisville/Jefferson County-Elizabethtown-Madison, KY-IN CSA

o Rochester-Batavia-Seneca Falls, NY CSA

o Tulsa-Muskogee-Bartlesville, OK CSA

• Sector-level competency data was generated using the O*Net database and Talxcellenz©.

Importance and Level scores for the top occupations in the sector were averaged to create the

given competencies. Considering that updated long-term occupational projections will not be

released for the region until 2019, these estimates remain the same as those included in our

previous report. More on the methodology and the scores can be found in Appendix 3.

• If you have any additional questions on the data sourcing or methodology used throughout the

report, please contact Alex Andrews at [email protected]. We would be happy to

answer your questions.

Counties in the West Michigan region:

Allegan Montcalm Barry Muskegon Ionia Newaygo Kent Oceana Lake Osceola Mason Ottawa Mecosta

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Talent Assessment and Outlook | 9

Executive Summary

• West Michigan experienced continued population growth over the year, adding over 13,000 new

residents to bring the population of the region to 1,595,965 — although this growth comes despite

continued negative net migration to counties outside of the state of Michigan. While the vibrant

communities throughout West Michigan continued to attract residents from other parts of the

state, West Michigan still saw a strong outflow of migration to the southern states of Florida,

North Carolina, and Mississippi. A trend which is expected to continue as the younger members

of the Baby Boomer generation begin to reach retirement-age, as these states continue to serve

as particularly popular destinations for our region’s retired residents.

• Educational attainment in West Michigan continued to move in a positive direction, with 58.6

percent of adults possessing some form of education beyond high school in 2016. Stakeholders

throughout the region are working to ensure that the labor force is prepared for the skills and

credentials that West Michigan will need in 2025, as the region is still shy of its goal of 64.0

percent for this indicator (as projected by the W.E. Upjohn Institute for Employment Research).

According to 2016 estimates, over 10 percent of the adult population in West Michigan did not

have a high school diploma or GED. These individuals face enormous barriers with respect to

gaining and maintaining employment, primarily due to issues of hard technical skills and potential

issues surrounding literacy. For those with literacy issues, this can have a generational effect by

way of the children of individuals who cannot read, making this an issue of continued importance

in our communities.

• Job growth in West Michigan continued to follow an upward trajectory from 2016 to 2017, adding

over 8,600 jobs within the region at a rate of 1.3 percent over the year — a slight decline from the

4.1 percent growth observed over the previous period. Proportionally, West Michigan is still the

fastest of Michigan’s ten Prosperity Regions in terms of job growth over the relevant period,

boosted by the region’s largest industry, Manufacturing. Private-sector Manufacturing has added

nearly 3,500 jobs over the year, reflecting a growth of 36.4 percent since the trough of the

recession in 2009 — with over 41,000 jobs added to the industry over the relevant period.

• It’s important to note that despite these promising statistics, these measures could be even

greater according to the feedback gathered from business leaders across West Michigan. Hiring

authorities throughout the region are feeling the burden of a talent shortage, despite an increase

in our labor force participation rate, with many employers struggling to find qualified candidates to

fill their job vacancies.

• Sector strategies continue to be a leading practice in workforce planning. The middle portion of

this report supports regional initiatives such as the West Michigan Health Careers Council,

Discover Manufacturing, the Construction Workforce Development Alliance of West Michigan,

and West Michigan Tech Talent. We also provide competency and occupation information for the

Agriculture and Energy (as a subset of Construction and Energy) sectors, as well as two relatively

recent industry sector additions: Professional Services and Retail and Hospitality Services.

• Four themes emerged from the industry sector focus groups that will play a pivotal role in the

future of talent planning across the region: Millennials (or more broadly, the generational shift with

the retirement of the Baby Boomer generation), company culture and job benefits, soft skills, and

the use of social media in the space of talent attraction.

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10 | Talent Assessment and Outlook

Population According to the 2017 annual estimates, the population of West Michigan is 1,595,965. This represents

an increase of 13,781 residents from 2016, which is a growth rate of 0.9 percent and the largest over-the-

year population growth seen in West Michigan since 2013. This is the eighth straight year of population

growth observed for the region, with nearly 79,000 additional residents since the end of the recession in

2009.

The proportion of the

population residing in the

Talent 2025 region, relative to

the state, increased by 0.1

percent since last year and

now stands at 16.0 percent.

Lackluster population growth

seen statewide (0.2 percent

from 2016 to 2017) translates

to a slight net increase across

the 70 counties in the state,

excluding West Michigan.

Over the past five years, the

share of the statewide

population residing in our region has grown by half a percentage point.

Over the year, Barry and Allegan Counties experienced

the highest proportional population growth within the

13-county West Michigan region, with Barry County

adding 874 residents (1.5 percent growth) and Allegan

County adding 1,492 residents (1.3 percent growth).

Another notable driver of population growth is Kent

County, the region’s largest county, which added 5,685

residents (0.9 percent growth) in the period from 2016

to 2017.

Population Change, Indexed to 2000

Percent Population Change,

2016 to 2017

Lake

1.3%

Kent

0.9%

Allegan

1.3%

Ottawa

1.1%

Graph 1

Area

Comparison

Peers Overall

2nd of 12

59th

of 171

Relative to the 11 regions identified as peer

communities, West Michigan’s 4.0 percent population

growth over the last five years ranks second. The top

comparison region, Greenville-Spartanburg-

Anderson, South Carolina, experienced a 5.5 percent

rate of population growth from 2012 to 2017, well

above the 3.7 percent growth observed for the nation

as a whole. The Talent 2025 region would rank 59th

compared to all 171 Combined Statistical Areas

nationwide.

-5%

0%

5%

10%

15%

20%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

West Michigan MI-WM Michigan United States

Map 1

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Talent Assessment and Outlook | 11

Migration Patterns With respect to migration patterns into and out of West Michigan, the region continued to experience a

strong positive net migration across the thirteen counties when compared to the other 70 counties in

Michigan. West Michigan also experienced a positive net inflow when comparing migration patterns for

the region to migration patterns across the United States.

The 5-year estimates available from the U.S. Census Bureau allow us to see that 90,678 residents of

other counties in Michigan — and the 49 other states, including Washington D.C. and Puerto Rico —

moved to West Michigan in 2016, while 85,886 West Michigan residents left the region for another

destination located within the U.S. over the same period. As such, this balances to a net inflow of 4,792

new residents for West Michigan in 2016.

Just over 69,000 of those new residents, or

76.1 percent, moved to West Michigan from

one of Michigan’s 70 other counties. Although

the region lost 64,041 former residents to

other parts of the state, the result was a net

gain of 4,965 migrants from other parts of

Michigan. Among the top destinations in

Michigan for those leaving the region were

Kalamazoo County, Ingham County,

Washtenaw County, and Wayne and Oakland

Counties. Due to the large inflows of new

residents coming from the east side of the

state, however, the top three counties in

Michigan with respect to net migration into

West Michigan were all located in the Detroit

metro area: Wayne County, Oakland County,

and Macomb County. West Michigan

experienced a net gain of new residents from

49 of the 70 other counties in Michigan.

Excluding the remainder of Michigan, West

Michigan experienced a net loss of 173 residents

to the other 49 states located across the nation and

to Washington D.C. and Puerto Rico. The top

destinations for former West Michigan residents

included states in the South (Florida, Texas, North

Carolina), Midwest (Illinois, Indiana, Ohio,

Wisconsin), and West (California and Arizona). On

the opposite end of the spectrum, West Michigan

saw the largest net gains from former residents of

Illinois, Alabama, and Pennsylvania, while

experiencing the greatest net loss of West

Michigan residents to both Florida and North

Carolina.

Coming to West Michigan

Leaving West Michigan

Area Movers Area Movers

TOTAL 21,672

TOTAL 21,845

Illinois 2,528

Florida 3,170

Florida 1,691

Illinois 1,699

Indiana 1,568

Texas 1,688

Texas 1,258

Indiana 1,533

Ohio 1,212

California 1,180

Tennessee 919

Ohio 1,111

California 890

Arizona 1,068

Pennsylvania 831

North Carolina 1,027

Arizona 616

Tennessee 863

Wisconsin 583

Wisconsin 852

Net Migration Across Michigan Counties,

Annual Average, 2012-2016

Map 2

High Net Inflow

Net Inflow

Net Outflow

High Net Outflow

West Michigan States with High and Low

Migration, West Michigan (2016)

Chart 1

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12 | Talent Assessment and Outlook

Educational Attainment The educational attainment of the adult population (ages 25+) within a region serves as a leading

indicator of the strength of the corresponding labor market. As jobs become more advanced and

integrated with technology, the skills

necessary for maintaining employment

become more specialized. According to

estimates from the W.E. Upjohn Institute,

64 percent of the adult population in

West Michigan will need some education

beyond a high school diploma in order to

satisfy the demands of the region by the

year 2025.

The most recent estimates from 2016

place West Michigan at 58.6 percent for

this indicator. While this represents a

growth of 0.3 percent from the previous

year, the growth rates for both the state

and the nation were double that

observed for the region over the same

period. West Michigan currently trails the

statewide average by nearly 1.7 percent

(inclusive of West Michigan, the state is

at 60.3 percent) as well as the country,

where 59.5 percent of the adult population

has some education beyond high school.

More specifically, 26.3 percent of adults in

West Michigan have a Bachelor’s, graduate,

or professional degree, slightly below the

Michigan rate of 27.4 percent. However,

both of these levels trail the national

postsecondary attainment rate of 30.3

percent.

Adult illiteracy still serves as a major barrier

for some employees in West Michigan —

generally with respect to those yielding education less than high school — where 10.3 percent of adults

do not have a high school diploma or an equivalent degree. While this translates to over 100,000

individuals throughout West Michigan, the regional rate is nearly 2.7 percentage points lower than the

national average of 13.0 percent, and slightly higher than the statewide average of 10.1 percent.

Percent of Adults with Education

Beyond High School, 2016

Educational Attainment

West Michigan, 2016

Graph 2

Area

Comparison

Peers

4th

of 12

In comparison to the 11 similar regions, West Michigan

ranks fourth with 58.6 percent of adults possessing

education beyond high school. The top comparison region,

Hartford-West Hartford, Connecticut, boasts a 62.8

percent level of attainment for this metric, nearly four

percentage points above our own. With respect to peer

areas, our rate is most similar to Tulsa-Muskogee-

Bartlesville, Oklahoma at 58.0 percent. The Talent 2025

region would rank 79th compared to all 171 Combined

Statistical Areas nationwide.

Overall

79th

of 171

58.6% 60.3% 59.5%

West Michigan Michigan United States

Graph 3

Less than 9th grade,

3.6%9th to 12th grade, no diploma,

6.7%

High school graduate (includes

equivalency), 31.0%Some

college, no degree, 23.0%

Associate's degree,

9.3%

Bachelor's degree, 17.5%

Graduate or professional degree, 8.8%

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Talent Assessment and Outlook | 13

Commuting Patterns Commuting patterns serve as an effective method to identify labor sheds, both at the regional and sub-

regional levels, which can help employers determine where to channel their recruitment efforts.

Data regarding West Michigan’s 2015 commuting patterns were updated on the U.S. Census Bureau’s

OnTheMap online tool in September of 2016. These estimates were obtained from employers, covered by

unemployment insurance, and from Census data provided by individuals in order to determine commuting

patterns at various geography levels.

Commuting Beyond West Michigan In 2015 there were a total of 681,068 individuals employed in West Michigan, regardless of whether they

lived among the thirteen counties or not. Of these, only 569,403 both lived and worked within the region,

accounting for 83.6 percent of employees in West Michigan. Thus, leaving 111,665 people who lived

outside of West Michigan, but made a commute into the region for employment. Conversely, a total of

693,944 individuals were considered residents of West Michigan in 2015. Approximately 17.9 percent, or

124,541 residents, were employed beyond the boundaries of the region and made a commute out of

West Michigan for work.

Commuting Within West Michigan

Grand Rapids

In 2015 there were 130,297 individuals employed in the City of Grand Rapids, with nearly a quarter of the respective population also residing within the city’s boundaries (31,048 residential employees). As such, approximately 76.2 percent of those employed within the city commuted from their place of residence beyond the city’s limits, leaving 99,249 individuals who commuted into Grand Rapids for work in 2015. The city’s 2015 residential population of 87,654 employed individuals consisted of 35.4 percent who remained within the city for work (31,048 residential employees), while nearly 65 percent of those living in Grand Rapids were employed somewhere outside of the city. The top destinations for commuters who lived in Grand Rapids at this time were Kentwood, Wyoming, Walker, and Forest Hills.

Holland

According to the U.S. Census Bureau, there were 158,705 individuals employed in the City of Holland in

2015. The city’s workers predominately lived outside of the city, with over three-quarters (76.5 percent) of

the employed population commuting into the city for work. The city’s residential population consisted of

103,445 employed individuals, yet only 37,276 residents (36.0 percent) remained within the city’s limits

during their commute to work. Thus, 64 percent of those living in Holland (66,169 residents) travelled

beyond the boundaries of the city during their commute to work in 2015. The top destinations for

residents commuting out of Holland were Grand Rapids, Kentwood, Wyoming, and Walker.

Muskegon

Compared to Grand Rapids or Holland, the City of Muskegon saw the lowest proportion of its employed

population also living in the city during 2015 — accounting for 2,685 residents (14.0 percent) of the city’s

19,116 total employees. Of the 12,910 individuals who lived in the City of Muskegon during 2015, there

were just 2,685 residents (20.8 percent) who remained within the city for employment. Therefore, 79.2

percent of Muskegon residents (10,225 individuals) were employed outside of the city and made a regular

commute beyond the city’s limits for work. The top destinations for these commuters were Norton Shores,

Grand Rapids, Grand Haven, and Roosevelt Park.

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14 | Talent Assessment and Outlook

Labor Force and Employment While they are often derived as a simplified look at the health of an economy, the unemployment rate and

labor force participation rate of a region are among the most pervasive indicators of economic prosperity.

While the unemployment rate has followed a downward trajectory in West Michigan over previous years

— reaching an annual low of 3.9 percent in 2016, the lowest unemployment rate seen since the

historically low rate of 3.4 percent was observed in 2000 — it is important to note that such progress may

be slowing as more individuals begin to enter the labor force, slightly increasing the unemployment rate.

Although the regional unemployment rate has steadily decreased over each of the past seven years, after

hitting an annualized peak of 12.5 percent in 2009, the annual rate for last year (4.0 percent) was slightly

higher than the rate in 2016 (3.9 percent). The current unemployment rate in West Michigan, at 3.9

percent over the first half of 2018, shows an increase of 0.3 percent from the rate observed for the first six

months in 2017 (3.6 percent). However, the first half of 2018 has already seen twice the number of new

labor force participants and employed individuals than were added to the labor force over the duration of

2017.

Despite a slight increase in the

unemployment rate from the same

period last year, unemployment in West

Michigan currently stands below that of

the state by seven-tenths of a

percentage point; Michigan is at 4.6

percent through the first six months of

2018. When compared to the same

estimates from last year, indicating a

differential of 1 percentage point

between the region and the state, it

would appear that the unemployment

gap has narrowed by 0.3 percent since

the previous year.

County-level unemployment rates reflect a

similar trend, with each of West Michigan’s 13

counties boasting a higher rate for the first half

of 2018 than observed over the same period in

2017. Despite having rebounded from the

recession as quickly as 2014, unemployment

rates across West Michigan are still not

uniformly lower than the state or the nation. The

largest counties within West Michigan — such

as Ottawa, Kent, and Allegan Counties (3.2

percent, 3.4 percent, 3.9 percent) — yield the

lowest rates, which pull down the overall rate for

the region. Yet, areas large and small still see

stubborn unemployment rates well above the

state and national averages — rates are

particularly high for the region’s largest counties,

Oceana and Lake (7.9 percent, 8.3 percent).

Labor Force and Unemployment in West

Michigan, 2000 to 2018*

Unemployment Rate,

January – June 2018 Graph 4

Graph 5

*January – June 2018

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Talent Assessment and Outlook | 15

Labor Force Participation Rate The labor force participation rate represents the fraction of the total non-institutional civilian population —

adults who are not inmates in an institution and who are not in active duty in the Armed Forces — who

are considered to be members of the labor force (either employed or actively seeking work). The most

widely utilized labor force participation rate comes from the U.S. Bureau of Labor Statistics and consists

of the adult (16+) population. Adhering to this definition, the labor force participation rate for adults in

Michigan was 61.5 percent through the first six months of 2018, and 62.8 percent for the nation as a

whole.

Talent 2025 has adopted what is referred to as the working-age labor force participation rate, which is

calculated the same way as the aforementioned rate but restricted to those between the ages of 25 and

54. The U.S. Census Bureau’s American Community Survey provides information that can be used to

calculate this measure on an annual basis, at any geographic level.

The working-age labor force participation rate in West Michigan was 82.2 percent in 2016, with 77.0 percent of the 25-54 population employed and 6.0 percent unemployed and actively seeking work. This number is 1.4 percentage points greater than the rate observed statewide (80.8 percent) and compares favorably to the national rate of 81.6 percent. Despite possessing a higher labor force participation rate than both the state and the nation, with respect to the “working-age” population, the rate for West Michigan has declined over the past six years — both for the broad 25-54 age bracket, as well as each age group within the “working-age” population. An increase of 0.9 percent to the 2016 working-age labor force participation rate, reflecting the rate observed in 2010, would translate to over 5,600 additional members of the West Michigan workforce.

Labor Force Participation Rate by Age Group, West Michigan, 2010 and 2016

Graph 6

83.1%

84.4%

83.2%83.7%

81.8%82.2%

83.9%

82.0%

82.9%

80.3%

25 - 54 (Working-Age) 25 - 29 30 - 34 35 - 44 45 - 54

2010 2016

Area

Comparison

Peers

7th

of 12

In comparison to the 11 similar regions, West Michigan’s

working-age labor force participation rate of 82.2 percent ranks

seventh in 2016, down two spots from the previous year. The

top comparison region, Hartford-West Hartford, Connecticut,

saw a level of participation for this metric at 85.6 percent,

placing 22nd in the nation. Our rate is most similar to Dayton-

Springfield-Sidney, Ohio (82.4 percent) out of the comparative

areas. The Talent 2025 region ranks 75th when compared to all

171 Combined Statistical Areas nationwide.

Overall

75th

of 171

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16 | Talent Assessment and Outlook

Industry Jobs

Private-sector payroll jobs continued to follow an upward trajectory in West Michigan from 2016 to 2017, though at the lowest rate observed over the past five years. Over the year the region added 8,612 new private payroll jobs, reaching a new annual peak of 650,075 for 2017. This represents a 1.3 percent growth rate from the private-sector payroll job counts of 2016. Last year’s growth rate, recorded at 4.1 percent, was the highest seen since private payroll jobs in the region grew by 4.6 percent over the period from 2010 to 2011.

This new private-sector

employment estimate is 9.4

percent higher than the jobs level

in 2000, and illustrates a regional

growth of 28.1 percent from private

employment counts documented

during the recessionary trough in

2009. With respect to this

indicator, West Michigan is

proportionally the fastest growing

region compared to the other nine

Prosperity Regions in the state.

The region with the second highest

rate, Southeast Michigan, saw

private payroll jobs grow by just

19.9 percent since 2009.

Industry Overview In 2017, Manufacturing continued to be the

largest sector for employment in West

Michigan, accounting for 22.8 percent of all

payroll jobs. The next largest sector in the

region, with respect to job counts, was Health

Care and Social Assistance at 13.8 percent,

closely followed by Retail Trade with 10.7

percent. The fourth largest industry, and the

only other sector possessing more than a

tenth of total payroll jobs, was Administrative

and Support and Waste Management

Services, which accounted for 10.3 percent of

total jobs in West Michigan in 2017.

Manufacturing, the region’s largest industry,

added nearly 3,500 jobs from 2016 to 2017,

which slightly exceeded private-sector job

growth across the board by 1.0 percent.

While this industry has grown by 36.4 percent

since 2009, adding over 41,000 jobs during

that time, Administrative and Support and

Waste Management Services has the highest

post-recessionary growth rate of any industry

(76.6 percent).

Jobs by Industry - West Michigan, 2017

Graph 7

Graph 8

450,000

500,000

550,000

600,000

650,000

700,000

2000

2001

20

02

2003

20

04

2005

20

06

2007

2008

2009

2010

2011

2012

20

13

2014

20

15

2016

20

17

Private Sector Payroll Jobs, West

Michigan, 2000 - 2017

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Talent Assessment and Outlook | 17

Recession Recovery Although the number of total private-sector payroll jobs in West Michigan has seen a dramatic recovery

since the trough of the recession in 2009, job gains have been unevenly distributed across different

industries. Of the 142,504 jobs added in West Michigan since 2009, 29.0 percent were associated with

Manufacturing — which has added 41,352 jobs — for a growth rate of 36.4 percent within this sector. The

industry with the second-highest job growth since 2009, accounting for 21.4 percent of additional jobs in

the region, was Administrative and Support and Waste Management Services with 30,444 new jobs (this

industry includes jobs such as Janitors and Cleaners and Security Guards). Combined, these two

industries account for over half of the job gains observed in West Michigan since 2009.

Proportionally, other industries in the region with substantial growth over this period include Construction

(+7,506 jobs, +33.5 percent), Transportation and Warehousing (+3,893 jobs, +30.7 percent), and

Management of Companies and Enterprises (+1,488 jobs, +30.4 percent). Wholesale Trade, at 28.2

percent, was the only other industry to grow at a faster rate than the regional payroll jobs economy as a

whole by adding 7,305 jobs since 2009.

Concentration of Industries A Location Quotient (LQ) refers to the relative concentration of employment in a local industry as

compared to a larger area (in this case, Michigan as a whole). An LQ greater than 1.0 indicates that there

is a higher concentration of employment within a local industry when compared to the same industry over

a broad area, and vice versa (while an LQ of 1.0 signifies that the two areas have the same employment

concentration).

Reflecting similar results from the previous year, the top eight sub-industries in West Michigan in 2017

with the highest LQ levels (and employment above 1,000) all fell within two major industries:

Manufacturing and Agriculture, Forestry, Fishing, and Hunting. The latter retained an industry-wide LQ of

2.2, which was also observed in 2016, indicating that the share of local jobs associated with Agriculture

was more than double the share seen statewide. This was driven, in part, by the proportionally large

number of jobs concentrated in Animal Production and Aquaculture (which has an LQ of 2.6) and Crop

Production, with an LQ of 2.2.

Manufacturing, with and LQ of 1.4, was driven by Leather and Allied Product Manufacturing (LQ of 4.9).

Simply put, the share of total private employment associated with this sub-industry in 2017 was nearly

five times the share seen statewide. This highly concentrated Manufacturing sub-industry was closely

followed by Furniture and Related Product Manufacturing (LQ of 4.3), Computer and Electronic Product

Manufacturing (2.8), and Food Manufacturing (2.5).

High Employment Concentration Industries LQ* Employment

Agriculture, Forestry, Fishing & Hunting 2.2 12,041

Animal Production 2.6 4,163

Crop Production 2.2 6,560

Manufacturing 1.4 154,887

Leather and Allied Product Manufacturing 4.9 736

Furniture and Related Product Manufacturing 4.3 16,852

Adm and Support and Waste Management 1.4 70,207

Administrative and Support Services 1.4 68,505

Education Services 1.2 13,387

Wholesale Trade 1.1 33,250

Location Quotient by Sub-Industry, West Michigan, 2017

Chart 2

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18 | Talent Assessment and Outlook

Sector Focus

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Talent Assessment and Outlook | 19

Sector Overview

• Sector strategies are collaborative efforts between various community stakeholders around

particular industry sectors, like the West Michigan Health Careers Council, Discover

Manufacturing, the Construction Workforce Development Alliance of West Michigan, and West

Michigan Tech Talent. In coming together, stakeholders like employers, workforce development

organizations, two- and four-year postsecondary institutions, community organizations, and other

training institutions can help to ensure an efficient talent pipeline and the transparent, regular

sending of signals between the supply and demand side of the talent system.

• To create the datasets here, 19 private-sector industries (by 2-digit North American Industry

Classification System, or NAICS, codes) were divided into nine industry clusters based on the

commonalities of occupations within the industries (see Appendix 2). In this section, we take a

more comprehensive look into seven of the nine industry sectors.

• Included within each sector is:

o Employment and compensation information for the entire sector,

o Output from the industry focus group(s),

o Competency data reflective of the competencies needed for top occupations, ordered by

Importance score (see Appendix 3),

o Top Occupations by several growth and wage measures. These occupations have been

presented to the sector focus group(s) and are discussed in the focus group output.

• Following the Retail and Hospitality Services section, we have synthesized four topics that were

distinct commonalities across a majority of sector focus groups, which are:

o Millennials

o Company culture and benefits

o Soft skills

o Social media in talent attraction

Sector Comparison, West Michigan

(Bubble size = 2017 employment)

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20 | Talent Assessment and Outlook

Agriculture

2017 Employment Trend Average Compensation Total Wages

12,041

▲ (1.8%)

$32,057 Annual, 2017

$386 million in 2017

The Agriculture and Food Processing industry cluster is an important component of the West Michigan

economy, accounting for almost $400 million in wages paid across the region in 2017. Employers from

this sector can be found throughout the region, from the populous counties of Kent and Ottawa to the

more rural counties found in the northern half of the West Michigan region. Breaking the downward trend

observed in 2016, employment within this industry cluster has grown by 1.8 percent over the duration of

2017.

Focus Group Insights Note: These focus group insights are based off the feedback provided by Agriculture and Food

Processing employers. For quantitative data, Food Processing is a sub-industry located within the

Manufacturing sector.

Agriculture and Food Processing is a complicated, seasonally-dependent industry sector. Some

employers have experienced steady work year-round, while others have increased or scaled-down

production throughout the year. Although this sector was traditionally composed of many part-time

employees, the consensus with focus group participants was that many were seeking full-time candidates

in order to provide staffing for their around-the-clock production schedules. Attracting new talent, or

identifying new talent pools, was identified as the key struggle by a majority of employers, particularly for

weekend or night shifts in rural areas where the talent pool has been exhausted. In fact, several

employers noted the issue of employees finding a better offer within their local area and simply leaving

the job without notice, only to try and return to work sometime later (with a less than credible reputation).

Career ladders presented a struggle for most of the employers interviewed, particularly when it came to

making hiring decisions between internal or external applicants for skilled positions — decisions that have

increased in frequency, as many have observed an increase in the hiring for specialized roles. Some

noted a shortage of qualified talent particularly prominent in rural areas, with candidates lacking a

sufficient combination of technical and soft skills to fill positions that required training beyond high school.

Due to competition for local entry-level talent, however, employers mentioned the challenges associated

with filling the vacancies left by internal promotions.

One occupation that was highly in-demand for most focus group participants was Well and Refrigeration

Operators, in additional to other roles requiring an ammonia refrigeration certification. While many of the

top occupations within the sector resonated with focus group participants, most noted that wages

(reflecting nation-wide data in this sector) were often higher in the northern half of West Michigan.

Top Sector Competencies with Importance and Level scores (on a scale of 0 to 100) Knowledge Skills

Customer and Personal Service 69, 62 Active Listening 66, 53

English Language 67, 53 Speaking 66, 52

Administration and Management 59, 52 Critical Thinking 64, 53

Abilities Work Activities

Oral Comprehension 71, 58 Getting Information 82, 59

Oral Expression 69, 56 Communicating with Supervisors… 77, 64

Written Comprehension 66, 54 Making Decisions/Solving Problems 75, 61

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Talent Assessment and Outlook | 21

Top Occupations in the Agriculture Sector

Color Key

West Michigan data National data

These occupations were chosen by a combination of the sum of percent ranks over four variables of

interest: the projected 10-year growth rate, the median wage, the projected number of annual growth

openings, and the projected number of annual replacement openings. They are listed here alphabetically.

Starting wages refer to the 25th percentile within the area, while median is equal to the 50th percentile. The

ten-year percentage growth and annual average openings due to growth are from the Bureau of Labor

Market Information and Strategic Initiative’s Long-Term Occupational forecasts for the 13-county West

Michigan Region.

* Wage data is reflective of the occupations specifically within the industry sector, rather than the wages for the

occupation throughout the economy.

Wages* Growth Annual Openings Due to Growth Title Starting Median 10-Year

Accountants and Auditors $25.98 $30.61 14.8% 64

Bus and Truck Mechanics and Diesel Engine Specialists

$16.26 $19.35 13.3% 18

Customer Service Representatives $12.89 $16.80 11.8% 167

First-Line Supervisors of Mechanics, Installers, and Repairers

$22.33 $28.56 11.2% 30

First-Line Supervisors of Office and Administrative Support Workers

$19.25 $26.13 10.3% 50

First-Line Supervisors of Production and Operating Workers

$16.03 $23.37 8.3% 51

General and Operations Managers $26.07 $38.58 10.8% 100

Heavy and Tractor-Trailer Truck Drivers $14.17 $17.69 7.6% 97

Helpers--Production Workers $10.45 $11.56 9.4% 62

Industrial Machinery Mechanics $15.32 $21.01 31.9% 92

Industrial Production Managers $31.26 $39.53 6.5% 15

Inspectors, Testers, Sorters, Samplers, and Weighers $11.29 $13.63 10.0% 63

Light Truck or Delivery Services Drivers $11.71 $14.38 7.5% 37

Maintenance and Repair Workers, General $12.51 $16.35 9.9% 71

Office Clerks, General $10.58 $14.05 6.5% 118

Packaging and Filling Machine Operators and Tenders

$10.72 $12.02 11.9% 44

Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products

$19.57 $27.23 9.0% 105

Secretaries and Administrative Assistants, Except Legal, Medical, and Executive

$11.37 $14.78 5.9% 55

Self-Enrichment Education Teachers $11.86 $17.54 19.1% 20

Stock Clerks and Order Fillers $10.35 $12.98 4.6% 44

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22 | Talent Assessment and Outlook

Energy and Construction

2017 Employment Trend Average Compensation Total Wages

32,604

▲ (5.1%)

$60,115 Annual, 2017

$1.96 billion in 2017

The Energy and Construction industries are taken together as one industry cluster, given the broad

overlap in occupations between the two distinct industries. In fact, this sector consists of three

interdependent industries when it comes to talent: Construction, Mining, Quarrying, and Oil and Gas

Extraction, and Utilities. While the latter industry experienced a slight employment decline over the past

year, a joint 5.1 percent growth to employment in both Construction and Mining buoyed this $1.96 billion

industry.

Focus Group Insights Construction is typically regarded as a seasonal industry, which can be a drawback in hiring compared to

local manufacturers who can often offer a more stable number of hours on a year-round basis. However,

several employers mentioned that one of the biggest challenges they face in attracting talent lies in the

stigma surrounding skilled trade occupations, particularly for entry-level employees. Now, more so than

ever before, employers have noticed a lack of interest in younger worker for occupations that don’t

require a traditional four-year degree, as many believe they don’t provide stable, lucrative career options.

While this may be true for the younger generation of workers, several employers also noted a difficulty in

recruiting for late-in-career, specialized positions — which some argued may be due to the emphasis

placed on a four-year degree for the Baby Boomer generation.

Career pathing serves as one method to ameliorate these recruitment challenges, and also a source of

pride, for many West Michigan construction companies and contractors. Many of the focus group

participants cover potential career paths with job applicants and candidates during their interview

processes — cementing their importance with new hires and allowing organizations to groom internal

candidates for in-demand and specialized late-in-career positions. Apprenticeship or mentorship

programs are also popular for the region’s construction employers, providing an opportunity for new hires

to work alongside experienced crew members while ensuring cultural assimilation and promoting learning

through face-to-face communication.

While the focus of trying to find new talent pools was channeled primarily for occupations on the job site

— including HVAC, all the skilled trades, and Electricians in particular — Heavy and Tractor-Trailer Truck

Drivers were identified by several employers as a particular pain point in hiring, with many filling these

vacancies through internal promotions. The challenge for this position, specifically, residing in the

increasing need for drivers to possess social skills as more deliveries begin to occur directly with

customers at job sites.

Top Sector Competencies with Importance and Level scores (on a scale of 0 to 100) Knowledge Skills

Customer and Personal Service 64, 58 Active Listening 62, 49

English Language 63, 48 Speaking 61, 47

Mathematics 59, 51 Critical Thinking 59, 48

Abilities Work Activities

Oral Comprehension 67, 54 Getting Information 81, 55

Near Vision 67, 51 Communicating with Supervisors… 77, 62

Problem Sensitivity 65, 47 Making Decisions/Solving Problems 72, 60

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Talent Assessment and Outlook | 23

Top Occupations in the Energy and Construction Sector

These occupations were chosen by a combination of the sum of percent ranks over four variables of

interest: the projected 10-year growth rate, the median wage, the projected number of annual growth

openings, and the projected number of annual replacement openings. They are listed here alphabetically.

Starting wages refer to the 25th percentile within the area, while median is equal to the 50th percentile. The

ten-year percentage growth and annual average openings due to growth are from the Bureau of Labor

Market Information and Strategic Initiative’s Long-Term Occupational forecasts for the 13-county West

Michigan Region.

* Wage data is reflective of the occupations specifically within the industry sector, rather than the wages for the

occupation throughout the economy.

Wages* Growth Annual Openings Due to Growth Title Starting Median 10-Year

Brickmasons and Blockmasons $37.02 $50.38 32.3% 16

Carpenters $31.72 $42.05 18.2% 60

Construction Managers $23.15 $30.61 11.2% 16

Cost Estimators $19.37 $29.07 16.8% 22

Electrical Power-Line Installers and Repairers $12.66 $15.69 26.3% 22

Electricians $12.85 $16.30 21.9% 67

First-Line Supervisors of Construction Trades and Extraction Work

$23.99 $29.54 19.4% 41

First-Line Supervisors of Mechanics, Installers, and Repairers

$18.15 $23.17 11.2% 30

General and Operations Managers $16.34 $21.18 10.8% 100

Heating, Air Conditioning, and Refrigeration Mechanics and Installers

$19.19 $23.95 22.8% 32

Heavy and Tractor-Trailer Truck Drivers $17.40 $25.48 7.6% 97

Maintenance and Repair Workers, General $21.55 $31.10 9.9% 71

Office Clerks, General $18.82 $24.61 6.5% 118

Operating Engineers and Other Construction Equipment Operators

$26.26 $34.59 15.3% 19

Plumbers, Pipefitters, and Steamfitters $17.54 $22.67 20.2% 38

Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products

$29.28 $37.32 9.0% 105

Secretaries and Administrative Assistants, Except Legal, Medical,

$12.62 $18.05 5.9% 55

Sheet Metal Workers $16.41 $19.30 17.8% 12

Color key:

West Michigan data Statewide data

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24 | Talent Assessment and Outlook

Health Care

2017 Employment Trend Average Compensation Total Wages

93,532

▲ (3.5%)

$48,112 Annual, 2017

$4.5 billion in 2017

The Health Care industry has continued, over the past year, to illustrate the positive impact that

collaboration can have in an industry sector. Local employers, training institutions, and workforce

development professionals can help better align the needs of employers with the programs training talent

throughout the region through the West Michigan Health Careers Council. The group was awarded the

America’s Promise Grant in late 2016, a $6 million federal grant intended to provide training to new and

incumbent workers throughout the region for health care employers.

Focus Group Insights The highly fractional and part-time labor market associated with the Health Care industry can present its

own unique challenges to regional employers. A single employer is often hiring for positions with skill

requirements across the spectrum, for part-time, full-time, and many levels in between.

Another challenge encountered by local health care employers lies in the competitive environment

fostered for certain positions, particularly for low-skill and low-experience positions that do not have

extensive educational requirements. While in some industries, competition is defined by other employers

within the same sector, competition in health care can be broader. For several nutritional assistant

positions, in addition to other roles that do not require a certification or a degree, West Michigan

employers identified companies from other industry sectors as tough competition when it comes to talent

retention. These challenges are especially prominent when trying to fill undesirable shifts, like weekends

or overnights, where offering wage increases to incentivize employees has become a common tactic.

Office Clerks, General and other administrative support workers were identified by one large area

employer as a point of high turnover, although the consensus would suggest that there’s currently an

overabundance of office staff — primarily due to the large volume of “allied health workers who wanted to

get into the industry but didn’t quite have the grades.” Some of this turnover is good, with respect to

employees moving into a better-paying and higher-skill role within the company, but wage information

gets around quickly with such a fractional and part-time labor force. This means that it’s not uncommon

for employees to pick up additional hours with whichever company is paying a more competitive rate.

Despite frequently discussing the challenges of attracting highly-skilled, specialized talent — for which

recruitment occurs on a national scale and establishing relationships with candidates via LinkedIn or

Facebook has become a common practice — a majority of employers indicated that they felt no retention

challenges with these highly-specialized positions, especially when compared to the retention challenges

presented by middle- or low-skill occupations.

Top Sector Competencies with Importance and Level scores (on a scale of 0 to 100) Knowledge Skills

Customer and Personal Service 80, 72 Active Listening 73, 56

English Language 74, 56 Speaking 72, 54

Medicine and Dentistry 61, 45 Reading Comprehension 68, 55

Abilities Work Activities

Oral Comprehension 76, 60 Getting Information 86, 61

Oral Expression 75, 59 Documenting/Recording Information 83, 61

Problem Sensitivity 71, 56 Communicating with Supervisors… 82, 64

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Talent Assessment and Outlook | 25

Top Occupations in the Health Care Sector Wages* Growth

10-year

Annual Openings

Due to Growth Title Starting Median

Billing and Posting Clerks and Machine Operators

$15.17 $17.31 14.4% 27

Child, Family, and School Social Workers $16.06 $18.51 8.9% 20

Customer Service Representatives $13.39 $15.32 11.8% 167

First-Line Supervisors of Office and

Administrative Support Workers $19.17 $24.42 10.3% 50

Healthcare Social Workers $21.60 $26.73 22.2% 23

Home Health Aides $9.40 $10.90 31.7% 142

Licensed Practical and Licensed Vocational

Nurses $18.10 $20.91 9.9% 25

Maintenance and Repair Workers, General $14.69 $18.04 9.9% 71

Medical and Health Services Managers $34.88 $44.39 19.3% 37

Medical Assistants $13.67 $15.80 17.3% 45

Medical Secretaries $13.95 $16.11 17.6% 35

Nursing Assistants $12.40 $13.75 16.2% 129

Occupational Therapists $28.15 $33.27 26.5% 25

Office Clerks, General $13.38 $17.82 6.5% 118

Personal Care Aides $9.64 $10.66 26.0% 96

Physical Therapists $34.12 $39.46 31.7% 51

Physician Assistants $43.63 $49.26 27.0% 17

Registered Nurses $26.63 $29.88 23.9% 327

Respiratory Therapists $22.88 $26.32 24.4% 16

Secretaries and Administrative Assistants,

Except Legal, Medical, $12.91 $16.58 5.9% 55

These occupations were chosen by a combination of the sum of percent ranks over four variables of

interest: the projected 10-year growth rate, the median wage, the projected number of annual growth

openings, and the projected number of annual replacement openings. They are listed here alphabetically.

Starting wages refer to the 25th percentile within the area, while median is equal to the 50th percentile. The

ten-year percentage growth and annual average openings due to growth are from the Bureau of Labor

Market Information and Strategic Initiative’s Long-Term Occupational forecasts for the 13-county West

Michigan Region.

* Wage data is reflective of the occupations specifically within the industry sector, rather than the wages for the

occupation throughout the economy.

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26 | Talent Assessment and Outlook

Information Technology and Media

2017 Employment Trend Average Compensation Total Wages

6,297

▲ (3.9%)

$51,771 Annual, 2017

$326 million in 2017

Information Technology and Media is a modestly sized, yet vitally important industry of employment in

West Michigan. The efforts of West Michigan Tech Talent help to catalyze the alignment of efforts among

employers, training institutions, and other community organizations and partners. Boasting the third

highest average annual wage of the seven industry clusters highlighted in this report — with regional

wages becoming increasingly competitive on the national stage — the IT and Media sector sees plenty of

opportunities to attract and retain talent from around the region.

Focus Group Insights As in previous focus group sessions for IT and Media, employers emphasized the increasingly vital role

played by a company’s culture in their efforts to attract and retain talent. A positive company culture can

often serve as the best method to prevent an experienced employee from leaving for another company,

which is typically cultivated through modern and attractive work spaces, company-reimbursed training

opportunities, company-hosted social events, or by placing an emphasis on the work-life balance of

employees. One local IT employer stated, “we want it to be a demotion for them to go anywhere else, the

best way to achieve retention is through culture — providing a long-term commitment from the company

that this is a good place to have your career.”

A few focus group participants have even adopted a more flexible organizational structure in an effort to

improve their company’s culture, presenting new challenges with respect to career pathing. These

emerging organizational structures enable employers to organize project teams, and to assign leadership

responsibilities, on a rotational basis rather than adhering to traditional measures of experience or

seniority. In doing so, these employers are helping to cultivate the skillsets and experiences of their

younger employees, who often move from company to company not for pay, but instead to look for a

professional challenge.

Not unlike the previous industry sector, where competition for talent would appear to transcend sector

categories, some of the region’s IT employers have noticed a rising number of competitors for local talent

coming from outside of West Michigan. Companies from across the industry spectrum located primarily

on the nation’s West Coast seem to be poaching a few local IT professionals, offering them opportunities

to work remotely and even recruiting local talent from IT boot camps. Occupations involving business

analytics and data security were highlighted by several Grand Rapids employers as being pain points with

respect to stolen talent from employers outside of the region, and even outside of Michigan. While there

doesn’t appear to be a huge demand for data security specialists, as each company needs just a few

employees knowledgeable in the area, they are currently one of the most challenging positions for

regional employers to fill — a trend expected to continue as each industry become more reliant on

technology.

Top Sector Competencies with Importance and Level scores (on a scale of 0 to 100) Knowledge Skills

Customer and Personal Service 70, 63 Active Listening 69, 55

English Language 69, 56 Speaking 68, 55

Computers and Electronics 66, 65 Reading Comprehension 67, 57

Abilities Work Activities

Oral Comprehension 72, 60 Getting Information 82, 61

Oral Expression 72, 58 Interacting with Computers 82, 59

Written Comprehension 70, 57 Communicating with Supervisors… 79, 66

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Talent Assessment and Outlook | 27

Top Occupations in the IT and Media Sector Wages* Growth Annual

Openings Due to Growth

Title Starting Median 10-Year

Accountants and Auditors $24.92 $31.44 14.8% 64

Administrative Services Managers $34.38 $45.23 11.3% 11

Computer and Information Systems Managers $48.56 $61.48 13.6% 12

Computer User Support Specialists $21.09 $25.99 15.9% 44

Customer Service Representatives $14.33 $18.23 11.8% 167

Financial Managers $38.67 $49.49 10.6% 23

First-Line Supervisors of Mechanics, Installers, and

Repairers $26.26 $34.59 11.2% 30

First-Line Supervisors of Non-Retail Sales Workers $18.40 $26.20 8.8% 16

First-Line Supervisors of Office and Administrative

Support Workers $21.35 $27.18 10.3% 50

First-Line Supervisors of Production and Operating

Workers $26.51 $34.33 8.3% 51

General and Operations Managers $37.02 $50.38 10.8% 100

Human Resources Specialists $25.72 $33.45 9.6% 18

Maintenance and Repair Workers, General $12.62 $18.05 9.9% 71

Management Analysts $32.22 $39.48 19.4% 26

Market Research Analysts and Marketing Specialists $14.97 $24.80 22.8% 44

Production, Planning, and Expediting Clerks $21.31 $29.81 11.1% 22

Sales Managers $51.32 $58.79 7.8% 14

Sales Representatives, Wholesale and Manufacturing,

Except Technical and Scientific Products $19.37 $29.07 9.0% 105

Software Developers, Applications $31.63 $37.58 24.4% 41

Software Developers, Systems Software $26.13 $40.01 11.0% 13

Color key:

West Michigan data Statewide data

These occupations were chosen by a combination of the sum of percent ranks over four variables of

interest: the projected 10-year growth rate, the median wage, the projected number of annual growth

openings, and the projected number of annual replacement openings. They are listed here alphabetically.

Starting wages refer to the 25th percentile within the area, while median is equal to the 50th percentile. The

ten-year percentage growth and annual average openings due to growth are from the Bureau of Labor

Market Information and Strategic Initiative’s Long-Term Occupational forecasts for the 13-county West

Michigan Region.

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28 | Talent Assessment and Outlook

Manufacturing

2017 Employment Trend Average Compensation Total Wages

154,887

▲ (2.3%)

$58,623 Annual, 2017

$9.08 billion in 2017

Composed of over 150,000 employees across West Michigan, the Manufacturing industry sector has

continued to follow a strong post-recessionary growth trajectory since the end of the last decade. Paying

over $9 billion in wages in 2017, the second highest average annual wage of the seven industry clusters

highlighted in this report, initiatives such as Discover Manufacturing and MiCareerQuest have helped to

align efforts across the region — illustrating the impact of modern manufacturing.

Focus Group Insights Similar to the feedback acquired from our construction employers, the dominant topic for manufacturing

employers related to current and future problems associated with the availability of talent, compared to

the age of the talent currently employed. Several employers were concerned about the large number of

retirements expected over the next five to ten years and about the stigma surrounding skilled trade

occupations, which was particularly prominent for entry-level talent. Now, more so than ever before, these

employers have noticed a lack of interest in younger worker for occupations in manufacturing, as many

believe they don’t provide stable, lucrative career options. While this may remain true for the younger

generation of workers, several employers also noted a difficulty in recruiting mid-in-career talent — with

one employer stating, “the previous generation was told that manufacturing was dying, so there’s like a

twenty-year gap where talent is lacking.”

In an effort to combat these talent attraction challenges, many participants referenced the various forms

of partnerships and trainings occurring throughout the region. Manufacturing Day and MiCareerQuest

were frequently mentioned collaborative efforts, which are intended to increase awareness of

manufacturing as a career possibility for younger members of the talent pool. While partnerships with

local universities and technical training institutions were also commonly discussed, some employers have

even created partnerships with local high schools to engage the new generation in the West Michigan

talent pool — essentially establishing talent pipelines through apprenticeship programs, co-ops, and

summer internship programs.

One final theme that emerged was an emphasis on adapting and better communicating employee

benefits beyond wages, as many of the region’s smaller employers cannot compete with the wage

offerings of larger manufacturing companies. In an effort to make these smaller companies more

competitive in the space of talent attraction, employers strive to offer a better company culture, safer and

cleaner working environments, or more flexible working hours when compared to large-scale

manufacturers.

Top Sector Competencies with Importance and Level scores (on a scale of 0 to 100) Knowledge Skills

English Language 64, 50 Active Listening 62, 49

Mathematics 60, 55 Critical Thinking 62, 52

Customer and Personal Service 59, 53 Speaking 60, 49

Abilities Work Activities

Oral Comprehension 66, 57 Getting Information 80, 54

Problem Sensitivity 66, 50 Communicating with Supervisors… 76, 63

Oral Expression 64, 55 Making Decisions/Solving Problems 74, 61

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Top Occupations in the Manufacturing Sector Wages* Growth Annual

Openings Due to Growth

Title Starting Median 10 Year

Accountants and Auditors $24.62 $30.94 14.8% 64

Architectural and Engineering Managers $47.03 $55.94 9.5% 12

Computer User Support Specialists $18.07 $22.64 15.9% 44

Computer-Controlled Machine Tool Operators, Metal

and Plastic $15.54 $19.79 33.7% 98

Customer Service Representatives $16.75 $19.80 11.8% 167

Electrical Engineers $30.28 $36.40 11.0% 12

Electricians $23.67 $28.23 21.9% 67

Financial Managers $41.84 $54.20 10.6% 23

First-Line Supervisors of Production and Operating

Workers $22.99 $28.24 8.3% 51

General and Operations Managers $40.02 $58.56 10.8% 100

Human Resources Specialists $22.55 $27.95 9.6% 18

Industrial Engineers $29.06 $35.61 12.6% 53

Industrial Machinery Mechanics $19.39 $22.93 31.9% 92

Industrial Production Managers $37.34 $48.79 6.5% 15

Machinists $14.08 $18.76 21.4% 104

Maintenance and Repair Workers, General $15.85 $19.63 9.9% 71

Market Research Analysts and Marketing Specialists $21.91 $28.89 22.8% 44

Mechanical Engineers $27.97 $34.24 13.0% 34

Production, Planning, and Expediting Clerks $16.54 $21.81 11.1% 22

Sales Representatives, Wholesale and Manufacturing,

Except Technical and Scientific Products $22.58 $30.79 9.0% 105

These occupations were chosen by a combination of the sum of percent ranks over four variables of

interest: the projected 10-year growth rate, the median wage, the projected number of annual growth

openings, and the projected number of annual replacement openings. They are listed here alphabetically.

Starting wages refer to the 25th percentile within the area, while median is equal to the 50th percentile. The

ten-year percentage growth and annual average openings due to growth are from the Bureau of Labor

Market Information and Strategic Initiative’s Long-Term Occupational forecasts for the 13-county West

Michigan Region.

* Wage data is reflective of the occupations specifically within the industry sector, rather than the wages for the

occupation throughout the economy.

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30 | Talent Assessment and Outlook

Professional Services

2017 Employment Trend Average Compensation Total Wages

128,370

▼ $44,169 Annual, 2017

$5.47 billion in 2017

The Professional Services industry sector consists of five industries (in order of 2017 employment):

Administrative and Support and Waste Management and Remediation Services; Professional, Scientific,

and Technical Services; Finance and Insurance; Management of Companies and Enterprises; and Real

Estate and Rental and Leasing. Although this broad sector was the fastest growing industry of those

highlighted in last year’s report, it’s currently the only industry to have seen a negative employment trend

from 2016 to 2017.

Focus Group Insights The topic of diversity emerged in several focus groups this year, but dominated our conversations with

employers in the Professional Services industry cluster. With a number of retirements expected over the

next five to ten years, a majority of focus group participants mentioned that it would be important to

ensure their respective industries were diverse over the coming years. In seeking a more diverse talent

pool, employers often had to channel their recruiting efforts outside of the region — as many noted that

competition for the diverse candidates located within the region was particularly intense.

The integration of technology within the industry was another point that appeared to resonate with a

majority of the employers present, with these technological advancements being felt in virtually every role

across the spectrum — from low-skill and entry-level positions, to more experienced positions and those

at the higher end of the wage bracket. While these changes have required employers to continually

retrain their staff members and update their policies, in some situations they have broadened the job

responsibilities of certain individuals — particularly for those tasked with organizing and maintaining up-

to-date electronic records, as opposed to traditional hard-copy archives.

Another frequent topic of conversation revolved around the various types of employment arrangements

regional employers have seen implemented in recent years, most of which are not typical of their

occupations. Employers in the Professional Services industry sector are noticing an increase in the

number of employees working remotely or part-time, which many viewed as a possible retention strategy

to combat against increasing competition for local talent. When offering employees the opportunity to

work from home one or two days a week — or to work on a part-time basis — employers noted a

decrease in the productivity of their workers, but a relative increase in measures of job satisfaction which

were reflected in their job turnover rates.

Top Sector Competencies with Importance and Level scores (on a scale of 0 to 100) Knowledge Skills

English Language 72, 59 Active Listening 70, 55

Customer and Personal Service 70, 64 Speaking 68, 54

Computers and Electronics 60, 59 Reading Comprehension 68, 58

Abilities Work Activities

Oral Comprehension 73, 61 Getting Information 83, 63

Oral Expression 72, 60 Interacting with Computers 79, 54

Written Comprehension 71, 59 Making Decisions/Solving Problems 78, 64

(-0.7%)

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Top Occupations in the Professional Services Sector Wages* Growth Annual Openings

Due to Growth Title Starting Median 10-Year

Accountants and Auditors $24.78 $29.57 14.8% 64

Computer User Support Specialists $15.46 $20.26 15.9% 44

Customer Service Representatives $13.58 $16.23 11.8% 167

Financial Managers $38.46 $52.59 10.6% 23

First-Line Supervisors of Office and Administrative

Support Workers $18.34 $23.97 10.3% 50

General and Operations Managers $35.14 $50.16 10.8% 100

Heavy and Tractor-Trailer Truck Drivers $17.60 $21.69 7.6% 97

Helpers--Production Workers $10.24 $11.15 9.4% 62

Inspectors, Testers, Sorters, Samplers, and Weighers $9.99 $11.44 10.0% 63

Insurance Sales Agents $16.11 $22.32 15.1% 47

Lawyers $28.43 $37.60 8.8% 17

Maintenance and Repair Workers, General $13.03 $16.04 9.9% 71

Management Analysts $28.05 $35.34 19.4% 26

Market Research Analysts and Marketing Specialists $22.92 $29.56 22.8% 44

Mechanical Engineers $25.87 $32.14 13.0% 34

Office Clerks, General $12.27 $14.96 6.5% 118

Sales Representatives, Wholesale and Manufacturing,

Except Technical and Scientific Products $22.38 $32.07 9.0% 105

Secretaries and Administrative Assistants, Except

Legal, Medical, $13.34 $16.76 5.9% 55

Software Developers, Applications $27.08 $35.85 24.4% 41

Stock Clerks and Order Fillers $10.95 $12.83 4.6% 44

These occupations were chosen by a combination of the sum of percent ranks over four variables of

interest: the projected 10-year growth rate, the median wage, the projected number of annual growth

openings, and the projected number of annual replacement openings. They are listed here alphabetically.

Starting wages refer to the 25th percentile within the area, while median is equal to the 50th percentile. The

ten-year percentage growth and annual average openings due to growth are from the Bureau of Labor

Market Information and Strategic Initiative’s Long-Term Occupational forecasts for the 13-county West

Michigan Region.

* Wage data is reflective of the occupations specifically within the industry sector, rather than the wages for the

occupation throughout the economy.

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32 | Talent Assessment and Outlook

Retail and Hospitality Services

2017 Employment Trend Average Compensation Total Wages

158,599

▲ (0.3%)

$24,716 Annual, 2017

$3.92 billion in 2017

Retail and Hospitality Services, another relatively new addition to the Talent Assessment and Outlook

report, is the largest of the seven sectors highlighted in the report. This broad sector encompasses four

industries: Retail Trade, Accommodation and Food Services, Other Services, and Arts, Entertainment and

Recreation. While each of these industries experienced employment growth from 2016 to 2017, their

combined growth of 0.3 percent was the second lowest of any industry included in the report.

Focus Group Insights Although most of the employers included in this sector agreed that there is generally high demand for

talent at all experience levels, though particularly for entry-level positions, the consensus would indicate

that Retail and Hospitality is a retention-oriented industry. The main challenge referenced by employers

was in maintaining low turnover rates, which appears to be difficult in the present economy. Too many

entry-level candidates lack the highly-desired soft skills of communication and customer service, yet a

majority of those with the potential to fine-tune these skills are entering the labor force for their first time

— presenting new challenges resulting from their unfamiliarity with how to maintain employment.

The dominant quality that most employers in Retail and Hospitality Services are seeking is customer

service, a soft skill that is in-demand for many sectors but serves as a point of emphasis for employers

within this industry cluster. Indeed, many participants stated that they have continued to enhance their

hiring and interviewing processes to better gauge a candidate’s customer service skills, especially for the

majority of entry-level applicants who possess no previous work experience. Furthermore, many

employers are focusing on revamping their onboarding processes in an attempt to improve retention, with

a majority in agreement that the first few months of employment are the most crucial when it comes to the

retention of entry-level employees.

While most of the jobs on the Top Occupations list were regarded as having a high volume of hiring

across the board, one large employer suggested that the most difficult occupations to find talent for were

specialized, low-volume positions. These would include occupations of high importance, like meat cutters,

bakers, or pharmacists, which require some form of specialized knowledge and skillset before hiring.

Top Sector Competencies with Importance and Level scores (on a scale of 0 to 100) Knowledge Skills

Customer and Personal Service 75, 63 Active Listening 65, 49

English Language 62, 48 Speaking 65, 48

Administration and Management 54, 43 Reading Comprehension 60, 51

Abilities Work Activities

Oral Comprehension 70, 55 Getting Information 78, 52

Oral Expression 68, 54 Communicating with Supervisors… 72, 54

Speech Recognition 63, 47 Making Decisions/Solving Problems 68, 52

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Talent Assessment and Outlook | 33

Top Occupations in the Retail and Hospitality Services Sector Wages* Growth Annual Openings

Due to Growth Title Starting Median 10-Year

Automotive Body and Related Repairers $15.53 $19.65 10.0% 10

Cashiers $9.20 $9.66 0.8% 13

Customer Service Representatives $10.06 $12.05 11.8% 167

First-Line Supervisors of Office and

Administrative Support Workers $15.43 $19.78 10.3% 50

First-Line Supervisors of Retail Sales Workers $14.74 $17.98 5.4% 40

General and Operations Managers $27.24 $36.62 10.8% 100

Hosts and Hostesses, Restaurant, Lounge,

and Coffee Shop $9.18 $9.52 6.4% 12

Hotel, Motel, and Resort Desk Clerks $9.54 $10.69 22.0% 20

Janitors and Cleaners, Except Maids and

Housekeeping Cleaners $9.52 $10.95 10.2% 128

Light Truck or Delivery Services Drivers $9.88 $11.79 7.5% 37

Maids and Housekeeping Cleaners $9.48 $10.44 15.1% 62

Maintenance and Repair Workers, General $11.98 $15.52 9.9% 71

Office Clerks, General $11.05 $14.84 6.5% 118

Parts Salespersons $10.17 $11.78 9.4% 26

Pharmacists $49.79 $55.94 8.6% 10

Receptionists and Information Clerks $9.69 $11.51 8.3% 35

Retail Salespersons $9.36 $10.64 6.8% 133

Secretaries and Administrative Assistants,

Except Legal, Medical, $11.99 $14.48 5.9% 55

Stock Clerks and Order Fillers $9.53 $10.88 4.6% 44

Waiters and Waitresses $9.14 $9.41 4.9% 60

These occupations were chosen by a combination of the sum of percent ranks over four variables of

interest: the projected 10-year growth rate, the median wage, the projected number of annual growth

openings, and the projected number of annual replacement openings. They are listed here alphabetically.

Starting wages refer to the 25th percentile within the area, while median is equal to the 50th percentile. The

ten-year percentage growth and annual average openings due to growth are from the Bureau of Labor

Market Information and Strategic Initiative’s Long-Term Occupational forecasts for the 13-county West

Michigan Region.

* Wage data is reflective of the occupations specifically within the industry sector, rather than the wages for the

occupation throughout the economy.

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34 | Talent Assessment and Outlook

Focus Group Insights The nine sector focus group sessions occurred across seven different industry sectors, and four themes

emerged that were common to a majority of employers from every sector.

Millennials The topic of the generation shift occurring in the labor force, with a notable number of references to

“Millennials,” was a frequent component of conversation among this year’s employer focus group

sessions. Despite no specific prompting on the topic, discussions about younger workers (although the

term “Millennials” was more frequently cited) generally arose during questions about career pathing,

retention challenges, and recruitment strategies.

Although some of the feedback received during these sessions remained the same for many employers

across differing industries, characteristics of younger workers were often interpreted as either beneficial

or harmful to an organization’s efficiency. It was often suggested that the communication style associated

with the younger generation could present challenges, particularly when it came to communicating

tardiness or absences over the phone as opposed to text messaging. However, some of the region’s

employers have embraced this new communication style as a tool to improve retention, integrating

messaging channels as a means to improve communication across departments and to establish

relationships among employees. A few employers also mentioned adapting their management styles in

order to improve the success of younger workers, incorporating more face-to-face communication to

improve learning, job satisfaction, and retention.

A majority of employers also referenced the ambitious nature of Millennials, with some seeing this as

more of a negative than others. The consensus being that younger workers typically strive to attain a

promotion as fast as possible, not fully comprehending the breadth of knowledge and skills required to

move to the next phase of the career path. On account of this, many local employers have enhanced their

career pathing tactics to promote a more streamlined, standardized promotions process in order to groom

internal candidates for specialized, late-in-career roles. It would appear that there’s more value in career

pathing and company culture than wages, as many local business leaders stressed that employees

needed to know there was room for growth within a company or they might go elsewhere.

Company Culture and Benefits Company culture was frequently discussed in conjunction with the topic of Millennials. Many local

employers, from across the seven industries, noted that Millennials often discuss a company’s culture

either during the interview process or soon after they’ve been hired. In an effort to improve culture, many

local companies have placed an emphasis on establishing relationships among coworkers by hosting

monthly events for staff or by promoting community volunteer opportunities. As previously mentioned,

some employers have also integrated more hands-on management approaches in their efforts to improve

culture and to establish vertical communications between supervisors and their subordinates. These

efforts have been well received by these companies’ younger employees, but also by their older workers.

Job benefits were a popular topic among employers during this year’s focus groups, particularly during

conversations regarding retention strategies. It would seem, for a majority of local employers, that health

insurance is no longer optional when it comes to attracting or retaining employees. Rather than trying to

offer a more competitive insurance rate or more comprehensive coverage, many local companies are

updating their policies regarding paid time off as a means to both attract and retain employees. Some

choose to provide more vacation time on the front end, while others are now offering paid time off to

cover time spent volunteering or taking tuition-reimbursed educational courses.

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Talent Assessment and Outlook | 35

Soft Skills A third topic to emerge in almost every focus groups this year referred to a lack in soft skills — such as

communication, problem solving, critical thinking, and self-sufficiency — particularly prominent among

younger workers. Although there were numerous mentions of a lapse in technical skills for the Millennial

generation, specifically within the Manufacturing and Construction focus groups, nearly every industry

indicated that soft skills were lacking in their younger employees.

Self-sufficiency and problem solving appear to be emerging pain points for employers seeking qualified

candidates in the region, according to the feedback gathered during this year’s focus groups. A majority

of the region’s employers have noticed an unwillingness in recent hires to act independently, failing to

either recognize an issue or to address one without the guidance or coaching of a supervisor. As one

local employer stated, “they can’t be afraid to fail and then figure out how to fix it.” While some

organizations have tried adopting a more direct, face-to-face communication style in an attempt to

mitigate these emerging issues, some participants argue that overparenting and overcoaching are the

root of the problem.

Regardless of the source of the soft skills gap, communication was the most frequently cited skill seen

lacking among new hires across the board. Whether it be communicating absences, asking questions

regarding projects, or interacting with customers, local employers have noted a shift in the social skills of

the talent pool. Particularly for occupations in Information Technology, where customer service skills have

become a vital component of hiring decisions, the ability to effectively communicate has become a much

sought-after sector competency.

Social Media in Hiring The use of social media as a means to recruit talent was the final topic common across our discussions

with employers from each of the seven industry clusters included in our focus groups. Since last year’s

report, employers from every sector have now established a presence among various social media

channels in their search for qualified talent, allowing them to discuss the benefits and drawbacks of each

method. It should be noted that enthusiasm for social media has not been expressed across the board,

even with our modest sample of employers.

The consensus of our focus group participants would suggest that social media channels compare

favorably to traditional jobs boards when it comes to attracting talent, particularly for those seeking local

talent. Facebook is often implemented as a referral technique, boosting the visibility of a job

advertisement to the local talent pool when shared by an employee — which is especially useful in

industries like Construction or Manufacturing, where job vacancies are predominately filled utilizing

techniques like word-of-mouth or employee referrals. Across all industries, focus group participants

regarded Facebook as a useful tool to find high-caliber candidates in the local area, but with a much

smaller quantity of applicants when compared to the counts associated with traditional job board sites —

where many often saw high-volume applicant pools, with a majority of applicants possessing irrelevant

job experience or skills with respect to the specifics of an advertisement.

Many employers in several sectors are also active on LinkedIn, with several purchasing admittedly-

expensive “recruiter seats.” While traditional job boards seem to do a better job of providing candidates to

fill early-in-career positions, many local employers are turning to LinkedIn to recruit candidates for their

more specialized roles — especially in Health Care, where competition for high-skill, late-in-career talent

occurs on a national scale. Several employers across industry sectors are also using social media for

reasons beyond simply posting jobs. Some use it to establish an online presence, in order to attract

candidates who are looking for employers with a positive profile, while others utilize social media

channels to build their brand recognition.

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36 | Talent Assessment and Outlook

Real-Time Demand

Although real-time demand is an imperfect means to assess the level of job vacancies in the region, job

advertisement aggregating tools — such as The Conference Board’s Help Wanted Online © data series

— can provide insight to help us determine which occupations are most in-demand today, according to

the current hiring of local employers.

In July 2018, the West Michigan region had a demand of 17,737 advertisements, up nearly 1.7 percent

from the number of advertisements in July of 2017. Employers with the most postings include Mercy

Medical Center, Spectrum Health, and Meijer. During the same reference month there were 137,714 job

ads posted across the state of Michigan, meaning that West Michigan accounted for almost 13 percent of

all ads in the state.

The total number of job ads in West Michigan

has followed a generally downward trend since

the end of 2015, where job postings

reached their peak at almost 32,000. July

was the seventh month in a row that the job

ad total for the region failed to exceed

20,000, yet is the only month over the first

half of 2018 where ads exceeded their

corresponding levels from the previous

year.

When estimating educational requirements

for current job advertisements in West

Michigan, it would appear that nearly half,

or 46.0 percent, are for positions that

generally stipulate education beyond a high

school diploma. In stark contrast to the 39.0

percent of advertisements that required only a high school diploma, only 4.0 percent

of job ads in July mandated either a Master’s or a Doctoral degree.

Grand Rapids leads the cities within the region with the most job postings (according to the location listed

in the advertisement). At 7,898 job ads, Grand Rapids accounts for 44.5 percent of the total ads posted in

West Michigan in July 2018. Holland and Muskegon follow, with 1,556 and 1,236 ads posted,

respectively.

Online Job Advertisements Trend - West Michigan, 2010 - 2018

Online Job Advertisements by

Education Level, July 2018

Graph 10

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

20182017201620152014201320122011

Graph 11

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Talent Assessment and Outlook | 37

Occupational Groups Hiring Although Health Care positions as an

occupational group traditionally lead other

groups with respect to the number of job

advertisements, Sales and Related

Occupations — with 2,466 ads in July

2018 — was the most advertised

occupational group in West Michigan.

Contributing 13.6 percent of all ads posted in

the region over the month, this category was

primarily driven by a high volume of job ads

for Retail Salespersons, with 701 job ads in

July 2018.

The next high-demand occupational category was Office and Administrative Support Occupations,

accounting for 10.4 percent of all advertisements with 1,890 postings. Transportation and Material Moving

Occupations and Health Care Practitioners and Technical Occupations, two mainstays on West Michigan

job boards, were positioned next with 1,546 and 1,523 job ads, respectively. Finally, Production

Occupations add an additional 1,386 job ads in West Michigan. Combined, these top five occupational

categories account for nearly half of all the job ads posted across the region in July 2018.

Job Advertisements Posted for More than 90 Days Job advertisements remaining active for a duration of more than 90 days are often considered “hard-to-

fill,” which can also include postings for positions that experience continuous turnover. These postings

consist of occupations from across the spectrum, regardless of industry and educational requirements,

and generally reflect the broad landscape of all job advertisements in the region.

As of July 2018, the occupation with the largest number of hard-to-fill job postings in West Michigan was

Registered Nurses, with 43 postings. While this number ranks higher than the second-most hard-to-fill

occupation, Customer Service Representatives (35 hard-to-fill ads), it’s a far cry from last year’s estimate

of 225 hard-to-fill ads. Whereas about 34.8 percent of all job ads for Registered Nurses were considered

hard-to-fill in July 2017, only about 7.2 percent of current job ads are considered the same. This metric is

just over 9.7 percent for Customer Service Representatives. Other occupations considered hard-to-fill in

West Michigan include First-line Supervisors of Retail Sales Workers (34 hard-to-fill ads), Cashiers (31

ads), and Heavy and Tractor-trailer Truck Drivers (30 ads).

Occupational Category Job Ads

Sales and Related 2,466

Office and Administrative Support 1,890

Transportation and Material Moving 1,546

Healthcare Practitioners and Technical 1,523

Production 1,386

Occupation Postings Over 90 days

Registered Nurses 43

Customer Service Representatives 35

First-Line Supervisors of Retail Sales Workers 34

Cashiers 31

Heavy and Tractor-Trailer Truck Drivers 30

Online Job Advertisements by

Occupational Category, West Michigan,

July 2018

Job Advertisements Active for 90+ Days by Occupation, West Michigan, July 2018

Chart 3

Chart 4

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38 | Talent Assessment and Outlook

Occupational Outlook The Bureau of Labor Market Information and Strategic Initiatives produces Long-Term Occupational

Outlook forecasts for regions throughout the state every two years. This year, the most up-to-date

information available for Michigan’s ten Prosperity Regions remains the same as last year, covering the

period from 2014 to 2024. Although the bureau’s new occupational projections were released for the state

this summer, covering the period from 2016 to 2026, this new set of projections won’t be released at the

regional-level until the summer of 2019. As such, this section contains highlights from last year’s analysis.

For the ten-year forecasting period, West

Michigan’s occupational employment is

expected to grow by 9.8 percent, an

increase in employment of 72,815.

Annualized over the period, this equates to

just under 1.0 percent per year (with annual

fluctuations expected). This ten-year

percentage growth outpaces the 7.4 percent

growth expected in Michigan during the

same time period (via an added 327,030

jobs) as well as the projected 6.5 percent

growth for the United States from 2014 to

2024, which translates to an additional

9,788,900 jobs.

The anticipated 9.8 percent occupational

employment growth in West Michigan is the

highest of Michigan’s Prosperity Regions,

ahead of Region 9/Southeast Michigan (8.0

percent), Region 10/Detroit Metro (7.8

percent), and Region 2/Northwest Michigan

(6.7 percent). In terms of future numeric job growth, West Michigan ranks behind Detroit Metro (144,025

expected added jobs) but well ahead of Southeast Michigan (34,545).

Percent Employment Growth by Prosperity Region,

State, and Nation, 2014 - 2024

Employment Growth by Prosperity Region, 2014 - 2024

Graph 12

Graph 13

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Talent Assessment and Outlook | 39

Occupations and Areas of Growth

Of the 72,815 added jobs expected in West Michigan, over one in five are expected in just two

occupational groups: Healthcare Practitioners and Technical Occupations and Production Occupations.

Growth Total Annual

Openings # %

Total, All Occupations 72,815 9.8% 25,351

Healthcare Practitioners and Technical 7,530 19.8% 1,589

Production 7,470 7.5% 3,164

Transportation and Material Moving 6,250 10.6% 2,052

Education, Training, and Library 5,440 11.4% 1,551

Office and Administrative Support 5,025 5.0% 2,754

With an expected 19.8 percent change in employment from 2014 to 2024 by adding 7,530 is Healthcare

Practitioners and Technical Occupations. This employment change is projected to produce 1,589 annual

openings, with nearly half of those openings (754) due to growth (rather than replacement of existing

workers). Much of this growth is driven by the occupation category’s largest occupation, Registered

Nurses, which is projected to add 3,275 jobs, resulting in 23.9 percent growth and 650 average annual

openings. The next highest occupation in this category in terms of numeric growth is Physical Therapists,

which is expected to add 505 jobs, or 31.7 percent growth.

Production Occupations, which is expected to become the largest occupational category by the year

2024, is projected to add 7,470 jobs, albeit by a slightly lower 7.5 percent growth. This will create 3,164

job openings each year; however, the majority of these (2,244 per year) will be replacing current

employment. Team Assemblers, already the largest occupation within the category, is projected to add

2,020 jobs during the forecasting period, which translates to 10.2 percent growth. This nearly doubles the

numeric growth expected in Machinists, which will grow by 21.4 percent through 2024, an additional

1,040 jobs. Unlike Healthcare Practitioners and Technical Occupations, there are several occupations in

Production that are expected to lose employment during the forecasting period, most notably Molding,

Coremaking, and Casting Machine Setters, Operators, and Tenders, Metal and Plastic and Cutting,

Punching, and Press Machine Setters, Operators, and Tenders, Metal and Plastic. This is likely related to

the skills and work activities needed for the positions, and the likelihood that those processes will become

automated over time.

Other occupations that are not as large but are expecting the largest percentage growth in West Michigan

are Bus Drivers, Transit and Intercity (growing by 42.6 percent, adding 200 jobs), Occupational

Therapists Assistants (37.7 percent, 130 jobs), Physical Therapist Assistants (37.2 percent, 305 jobs),

and Operations Research Analysts (35.3 percent, 30 jobs).

Occupation Growth

Rate Annual

Openings

Bus Drivers, Transit and Intercity 42.6% 26

Occupational Therapist Assistants 37.7% 23

Physical Therapist Assistants 37.2% 54

Operations Research Analysts 35.3% 5

Of the 528 occupations published in the 2024 regional forecast, 436 are expected to grow in West

Michigan. It is expected that there will be 25,351 total annual openings during the forecasting period.

Chart 5

Chart 6

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40 | Talent Assessment and Outlook

Forecasting Competencies

Using the Long-Term Occupational Forecasts, the Bureau of Labor Market Information and Strategic

Initiatives is able to cross core competencies from the Department of Labor’s O*Net Online tool with job

projections to gain an understanding of the knowledge, skills, abilities, and work activities that will be in

demand through 2024. While the competencies identified in the Sector Focus section apply to the top

occupations within those sectors, these areas of importance apply to all jobs within West Michigan, and

how important they are in occupations which are expecting the most openings due to growth through

2024.

Knowledge Knowledge areas are “Organized sets of principles and facts applying in general domains.” Two of the top knowledges that are important for growing occupations are English Language (necessary in 84.6 percent of annual openings due to growth) and Customer and Personal Service (71.1 percent). The latter of these fit into the Essential Skills Framework, a pilot program at Northview High School to help better prepare high schoolers for their careers.

English Language

Customer and Personal Service

Mathematics

Administration and Management

Mechanical

Skills Skills are defined as “Developed capacities that facilitate learning or the more rapid acquisition of knowledge.” Four of the top five skills with regards to being important for growing jobs are defined as “Basic Skills.” These are led by Active Listening (73.2 percent) and Speaking (70.5 percent).

Active Listening

Speaking

Critical Thinking

Social Perceptiveness

Reading Comprehension

Skills (non-Basic) Because the top Skills tend to be classified as Basic Skills, we have also looked at how non-Basic skills cross with job projections. Here, we see that Coordination (64.7 percent), Social Perceptiveness (63.0 percent), and Judgment and Decision Making (59.4 percent) lead.

Coordination

Social Perceptiveness

Judgment and Decision Making

Time Management

Service Orientation

Abilities Abilities are “Enduring attributes of the individual that influence performance.” As was the case with the last set of projections, four of the five Abilities which will be necessary in growth openings through 2025 are Cognitive abilities. Most prominent among growth openings are Oral Comprehension (70.0 percent) and Oral Expression (54.6 percent).

Oral Comprehension

Oral Expression

Problem Sensitivity

Near Vision

Written Comprehension

Work Activities Work Activities are “General types of job behaviors occurring on multiple jobs.” The top activity, Getting Information, is found in 80.2 percent of annual openings due to growth in West Michigan. Behind this is Communicating with Supervisors, Peers, or Subordinates (56.1 percent) and Making Decisions and Solving Problems (29.5 percent).

Getting Information

Communicating with Supervisors, etc.

Making Decisions and Solving Problems

Performing General Physical Activities

Inspecting Equipment, etc.

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Talent Assessment and Outlook | 41

Sources

Page Source 10 U.S. Census Bureau, Population Estimates, 2017 Population Estimates

U.S. Census Bureau, Population Estimates, 2000-2010 Intercensal Estimates

11 U.S. Census Bureau, American Community Survey, 2012-2016 5-Year Estimates, County-to-County Migration Tables

12 Erickcek, George A., Brain Pittelko, Claudette, Robey, Bridget Timmeney. 2013. "A Comprehensive Analysis of the Current and Future Talent Needs for the TALENT 2025 Region." Report prepared for TALENT 2025. U.S. Census Bureau, American Community Survey, 2012-2016 5-Year Estimates

13 U.S. Census Bureau, OnTheMap Application, Longitudinal-Employer Household Dynamics, 2015 data

14 DTMB, Bureau of Labor Market Information and Strategic Initiatives, Local Area Unemployment Statistics

15 U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics U.S. Census Bureau, American Community Survey, 2012-2016 5-Year Estimates

16-17 DTMB, Bureau of Labor Market Information and Strategic Initiatives, Quarterly Census of Employment and Wages

19-33 DTMB, Bureau of Labor Market Information and Strategic Initiatives, Quarterly Census of Employment and Wages U.S. Bureau of Labor Statistics, Occupational Employment Statistics O*Net Online Database Talxcellenz© DTMB, Bureau of Labor Market Information and Strategic Initiatives, Occupational Long-Term Forecast (2014-2024)

36-37 The Conference Board, Help Wanted Online© Data Series U.S. Bureau of Labor Statistics, Employment Projections Table 1.11

38-39 DTMB, Bureau of Labor Market Information and Strategic Initiatives, Occupational Long-Term Forecast (2014-2024)

40 DTMB, Bureau of Labor Market Information and Strategic Initiatives, Occupational Long-Term Forecast (2014-2024) O*Net Online Database

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42 | Talent Assessment and Outlook

Appendices

Appendix 1 For the comparative areas, the 11 other regions were chosen because they met two criteria: population

fell within 30 percent of the Grand Rapids-Wyoming-Muskegon, MI CSA, and the percent of total private

employment that was in Manufacturing was over 10 percent. Population data is from the U.S. Census

Bureau, Population Estimates Program, July 1st, 2017 population estimate. Employment data is from the

U.S. Census Bureau, American Community Survey, 2016 1-Year Estimates.

For the purposes of the analysis in the call-out boxes, American Community Survey 2012-2016 5-Year

Estimates data was used (since the West Michigan region must be built from the county level). In these

rankings, the Grand Rapids-Wyoming-Muskegon, MI CSA was replaced by West Michigan.

Peer Region % Employment in

Manufacturing 2017 Population

Estimate Birmingham-Hoover-Talladega, AL CSA 11.3% 1,364,062

Buffalo-Cheektowaga, NY CSA 10.8% 1,214,204

Dayton-Springfield-Sidney, OH CSA 17.1% 1,077,108

Grand Rapids-Wyoming-Muskegon, MI CSA 21.9% 1,456,935

Greensboro—Winston-Salem—High Point, NC CSA 15.3% 1,663,532

Greenville-Spartanburg-Anderson, SC CSA 20.7% 1,459,766

Harrisburg-York-Lebanon, PA CSA 12.8% 1,260,071

Hartford-West Hartford, CT CSA 11.4% 1,479,292

Knoxville-Morristown-Sevierville, TN CSA 11.6% 1,128,379

Louisville/Jefferson County—Elizabethtown—Madison, KY-IN CSA

14.5% 1,522,112

Rochester-Batavia-Seneca Falls, NY CSA 11.8% 1,170,402

Tulsa-Muskogee-Bartlesville, OK CSA 12.1% 1,160,612

Appendix 2 The following NAICS industry assignments are made to create sector definitions:

NAICS NAICS Industry Name Sector 11 Agriculture, Forestry, Fishing and Hunting Agriculture

21 Mining, Quarrying, and Oil and Gas Extraction Energy and Construction 22 Utilities

23 Construction

62 Health Care and Social Assistance Health Care

51 Information IT and Media

31-33 Manufacturing Manufacturing

52 Finance and Insurance

Professional Services

53 Real Estate and Rental and Leasing 54 Professional, Scientific, and Technical Services 55 Management of Companies and Enterprises 56 Administrative and Support and Waste Management and

Remediation Services

44-45 Retail Trade

Retail and Hospitality Services 71 Arts, Entertainment, and Recreation 72 Accommodation and Food Services 81 Other Services (except Public Administration)

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Talent Assessment and Outlook | 43

Appendix 3 The four competency areas are defined as follows:

• Knowledge - Organized sets of principles and facts applying in general domains.

• Skills - Developed capacities that facilitate learning or the more rapid acquisition of knowledge.

• Abilities - Enduring attributes of the individual that influence performance.

• Work Activities - General types of job behaviors occurring on multiple jobs.

Using the Talxcellenz© online tool, we generate O*Net Online database competency scores for the

combined top occupations within the given sectors, both for Importance and Level.

Importance and Level scores are the result of extensive, statistically random surveys of businesses about

occupations at the O*Net code level.

Importance score: This rating indicates the degree of importance a particular descriptor is to the

occupation. The possible ratings range from "Not Important" (1) to "Extremely Important" (5). It is then

standardized on a scale of 0 to 100.

Level score: This rating indicates the degree, or point along a continuum, to which a particular descriptor

is required or needed to perform the occupation.

Each level score can be further investigated on the O*Net Online database, with specific scales for each

occupation. For the skill Reading Comprehension, the following example level scale is for Lawyers (23-

1011):

More information can be found at the O*Net Online database.

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