Georgia Public Policy Foundation2013 Legislative Policy Forum

October 12, 2013

From Concept to Policy: Staging The Essential Economy

The Essential Economy Council

The Essential Economy Council is a bi-partisan, nonprofit 501(c)3 organization that originates research and communications to educate elected officials and business leaders on the economic value of the Essential Economy, the opportunities it provides, and its fundamental impact on the quality of our lives. The Council’s work is designed to help decision-makers create public policy that is informed by data and is beneficial to our state's economy and the Essential Economy, including its workforce, customers and business owners.

DAN MOODY SAM ZAMARRIPAFormer State Senator – Johns Creek Former State Senator – AtlantaCo-President Co-President

Karen Bremer Chris Butts David EllisExecutive Director, Director of Legislative Affairs Executive Vice PresidentGeorgia Restaurant Association Georgia Green Industry Association Greater Atlanta Home Builders

Valerie Ferguson Mike Giles Charles HallRegional Vice President, President Executive DirectorLoews Atlanta Hotel Georgia Poultry Federation Georgia Vegetable & Fruit Growers Association

Jay Morgan Mary Kay Woodworth Bryan TolarJ.L. Morgan, Inc. Executive Directors PresidentPublic Affairs Georgia Urban Ag Council Georgia Agribusiness Council

Steve Simon Zippy DuvalPartner President Fifth Group Restaurants Georgia Farm Bureau

Economic Advisory CouncilJohn McKissick, PhD Jennifer Clark, PhD Thomas Cunningham, PhDProfessor Emeritus & Associate Professor Vice President, Senior Economist Distinguished Agricultural Marketing Professor School of Public Policy & Regional ExecutiveUniversity of Georgia Georgia Institute of Technology Federal Reserve Bank of Atlanta

Essential Economy Council Board of Directors

Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658

Purpose & Mission: The Essential Economy Council

Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658

• Develop a data-driven analysis of the composition and economic value of the Essential Economy in Georgia.

• Provide data that is localized, relevant, credible, and easy to use.

• Through data, strengthen policy making that affects Essential Economy workers and sectors.

• Facilitate bipartisan discussions of the data’s policy implications and potential policy recommendations to enhance The Essential Economy.

• Develop research and communication processes that can be replicated in other states.

Six Key Sectors:

Characteristics:

Value:

What is the Essential Economy?

5

Restaurants & Hospitality

Personal Care & Assisted Living

Building Maintenance &

Facilities Services

Agriculture & Poultry

Distribution & Logistics

Construction & Landscaping

Services

The products and services provided by the Essential Economy are basic, yet essential to our

way of life and our overall economy.

Where The Essential Economy & The Broader Economy

Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658

Economic ClusterCategory total

(M) % of Total Workforce

Total Work force 5.3 100%

Knowledge Economy 0.6 11%

White Collar Service Professionals 0.8 15%

Specialized Manufacturing 0.4 7%

Government Workers 0.8 15%

Skilled Trade Workers 1.7 32%

Essential Economy 1.0 20%

Agriculture and Poultry.07

-

Hospitality and Restaurants.48

-

Light Construction and Landscaping.06

-

Personal Care and Assisted Living.24

-

Building Maintenance and Facilities Services

.06-

Distribution and Logistics.08

-

Initial snapshot: Essential Economy in Georgia: 2010

Essential Economy Consistent Across States

Economic Cluster

% of GA's Total

Workforce

% of CT's Total

Workforce

% of FL's Total

Workforce

Knowledge Economy 11% 14% 10%

White Collar Service Professionals 15% 23% 18%

Specialized Manufacturing 7% 9% 3%

Government Workers 15% 14% 12%

Skilled Trade Workers 32% 27% 34%

Essential Economy 20% 18% 21%

Notes: All data 2010 Source: " Total full-time and part-time employment by NAICS industry" data from Bureau of Economic Analysis, Bureau of Labor Statistics. Department of Corrections

From Concept to Policy: Staging The Essential Economy

High Level Results of 2012 Study

Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658

Essential Economy: Summary by County

Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658

• TEE is present in the states highest and lowest income counties.

• TEE is present in counties regardless of their industrial makeup or composition. • 55% of all Georgia counties have 25% of more of their workforce in The Essential Economy.

Report & Data Sources

Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658

• Report: www.essentialeconomy.org

• Full Report

• Summary Report

• Data for Economic Developers: Juice Analytics

• Data sources for economic developers & research

• Essential Economy data by County

What the Data Says and Means

• TEE contributed 12%, or $49 billion, to Georgia’s GDP in 2010.

• TEE employed 996,046 people out of 3.7 million employees in Georgia in 2011

• TEE represent 25% of all jobs in Georgia or one out of every four employees.

• TEE is present in the highest and lowest income counties: Average 25% but as high as 39%

• TEE wage average $21,718, which represents 57% of the average working wage in Georgia.

• TEE employees contributed over $114 million in sales tax alone in 2011.

Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658

• TEE is a historic and future structural part of Georgia’s economy

• For every knowledge economy job there is a necessary, corresponding EE job

• TEE has three key stakeholders: Employers, Employee & Consumers

• In simple terms, Georgia’s economy cannot expand or functions without a healthy EE

• TEE can benefit from thoughtful, targeted public policy

From Concept to Policy: Staging The Essential Economy

2050 issues: Aging Labor Force

1950 2000

2050

Increasing percentage of workers that are 65+

Where we are going: Education

Increasing education: More and more Americans will be earning college degrees

America has seen approximately straight line growth since 1950 that should continue well into the 21st century

If this continues, over 190M Americans will have a bachelor’s degree by 2050

US aging + College Degrees + US Workforce + TEE + Immigration

Pending US Essential Economy Worker Shortage

Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658

Summary & Conclusion

Essential Economy Council | 817 W. Peachtree Street | Suite 915 | Atlanta, GA. 30308 | 404-961-7658

• TEE provides goods and services that are basic, fundamental and important to the way we all live. “Its Essential”

• TEE is as real as the Knowledge Economy but overlooked and taken for granted.

• TEE is a structural part of the overall economy, trails GDP and expands/shrinks with growth or recession.

• For many Georgian’s TEE, is the economy of last resort.

• TEE jobs are domestic jobs, located in the US and cannot be exported unless you export the industry i.e. tomatoes.

• While automation may increase productivity in TEE, it will also require and benefit from real life workers.

• TEE is full of entrepreneurs and self made people.

• TEE is threatened by our aging demographic, upward trends in higher education, the cost of regulation and US Immigration Policy. We need to know more!

Georgia Public Policy Foundation2013 Legislative Policy Forum

October 12, 2013

Thank You!