Building America's Skilled Technical Workforce (2017) / Chapter Skim
Currently Skimming:
2 Labor Market Patterns and Trends
2 Labor Market Patterns and Trends
Pages 21-38
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From page 21... ...
The second section examines local and sectoral trends in the demand for and supply of technical skills. To understand better the policy issues affecting skilled technical labor markets, the next two sections review the dynamics in two sectors with high numbers of skilled technical occupations -- health care and manufacturing.
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From page 22... ...
2.1 THE SUPPLY OF AND DEMAND FOR SKILLED TECHNICAL WORKERS Recent surveys show that the demand for higher levels of workforce skills has increased over time and is likely to continue to do so. As Figure 2-1 shows, some analysts estimate that the demand for nonroutine skills in the United States rose during the period 1960-2009, while the demand for routine skills fell.
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From page 23... ...
For example, recent trends in job vacancies, employment, and wages can be used to suggest current labor market conditions and highlight areas in which potential imbalances may exist. In the short term, these data include persistent high vacancy rates coupled with strong employment growth and rising wages within specific occupations or regional labor markets.
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From page 24... ...
. For discussion of the issues regarding analysis of local labor markets, see GAO (2013)
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From page 25... ...
4 These occupation groups also have low unemployment relative to the number of vacancies -- less than one unemployed worker per job opening -- suggesting particularly tight labor markets. Many of these occupations include a significant percentage of skilled technical jobs.
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From page 26... ...
Similarly, depending upon the structure of their incentives and the availability of skilled workers in the United States, employers could adjust by adopting new technologies, outsourcing, or restructuring jobs. As mentioned in Chapter 1, certain conditions can create persistent labor market imbalances if demand changes rapidly and the incentives for adjustment on the supply side are weak.
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From page 27... ...
2.2.1 Exploring the Evidence at the Local Level A 2013 study by the Government Accountability Office (GAO) of the implementation of the federal Workforce Investment Act captures early evidence on the local and sectoral differences in skilled technical labor markets.
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From page 28... ...
The study finds that 90 percent of local areas use state job banks and occupational projections to estimate labor market requirements. Moreover, the study highlights evidence of imbalances that arise from unique features of local labor markets, which means that a one-size-fits-all approach will not be efficient or effective.
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From page 29... ...
Recent employer surveys provide additional insight into the relationship between sectoral and local trends in skilled technical labor markets. In a survey of more than 800 human resources executives in February 2014, more than half of respondents reported that jobs requiring technical skills are difficult to fill, with finance, insurance, and health care companies reporting the greatest challenges (Accenture et al., 2014)
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From page 30... ...
Intelligent policy responses require local labor market analyses that current labor market information systems do not adequately support. Survey data and the preceding analysis of national occupational data on vacancies, employment, and wages suggest that certain skilled technical labor markets are experiencing tighter-than-average conditions.
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From page 31... ...
Frogner and Skillman found several imbalances that prevent skilled technical labor markets from operating smoothly in the health care field, including the following: • Information deficits. Data on the size, distribution, demographics, and work characteristics of the skilled technical workforce remain difficult to collect.
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From page 32... ...
Occupational requirements are not always clear in the health care labor markets. For example, many health care occupations do not require a certificate or degree that is directly linked to a health care occupation.
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From page 33... ...
. More than 50 percent of the total manufacturing workforce involves skilled production occupations that meet the committee's definition of skilled technical jobs (Giffi et al., 2015)
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From page 34... ...
The disagreement among analysts about the seriousness of current hiring difficulties in the manufacturing sector also highlights the need for more granular analyses of the skilled technical labor market, discussed in more detail in Chapter 4. Some analysts in the manufacturing industry argue that structural factors or imbalances in skilled technical labor markets are likely contributors to the shortage of workers perceived by some employers.
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From page 35... ...
Reflecting this concern, OECD's PIAAC developed the Survey of Adult Skills to help policy makers in OECD countries assess the proficiency of adults aged 16 to 65 in key competencies that are necessary for fully integrating and participating in labor markets, education and training, and social and civic life. 14 The most recent survey identifies several trends that are influencing the development and use of technical skills in OECD and partner countries.
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From page 36... ...
Between 1998 and 2008, the number of people employed in these categories increased more rapidly than did overall employment rates in most countries." Although the evolution of employment shares for occupations with technical skills is more complex, as depicted in Figure 2-5, there is clear evidence of a significant and persistent evolution of employment in occupations requiring higher-than-average skills proficiency. Yet PIAAC estimates that imbalances between the supply of and demand for skills in OECD-country labor markets are widespread and coexist with high levels of unemployment.
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From page 37... ...
Detailed information about and analyses of how labor markets for skilled technical jobs operate at the organization, industry, sector, and local geographic levels are needed to properly understand these conditions. A review of skilled technical occupations in health care and manufacturing suggests that markets for skilled technical jobs may not be clearing as efficiently as they could, and these imbalances are likely to be exacerbated by global patterns and trends.
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From page 38... ...
These incentives, discussed in more detail in subsequent chapters, have important implications for labor market clearing, where demand matches supply, in specific locations and sectors. Developing and maintaining skills proficiency is essential to U.S.
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