by Martha Armstrong
Creating A Workforce Strategy for Tompkins County
In September of 2006, Tompkins County area Development (TCAD) released the new Tompkins County Economic Development Strategy. The three major five-year goals for the ED Strategy are:
• Increase and diversify housing supply
• Improve workforce and business skills
• Revitalize unique commercial districts and town centers
Why workforce development
As a regional employment center, with 30% of the workforce commuting in from the surrounding counties, Tompkins County is highly motivated to ensure that the labor supply is diverse, deep, and skilled. Currently, many employers face labor shortages of both higher-skilled and basic-skilled workers. Businesses are putting expansion projects on hold, or even moving units out of state for lack of workers with the right skills. Targeting local resources to turn this situation around is critical and must happen in the near future.
Creating a Workforce Strategy
TCAD has partnered with the Tompkins County Workforce Investment Board to create a new workforce development strategy for the county. The steps involved are: developing a detailed picture of our current labor market; involving stakeholders in generating creative and effective ways to improve that picture; adopting a strategy based on those ideas; inspiring a community-wide commitment to implementing the strategy.
Goals of the Workforce Strategy include: increased employment and income – especially for low-income and underemployed workers; reductions in unfilled jobs; and increased business investment. The Workforce Strategy will improve the efficiency of matching available labor – the unemployed and underemployed – with jobs. Over time, it will support the economic growth of the region.
A picture of the labor market
The first step, a labor market analysis prepared by Chmura Economics & Analytics, was recently completed. Their study not only delves into county labor information, but also provides a regional perspective including the six neighboring counties. The study provides detailed information about what kind of jobs are in highest demand and how well the current and future labor market can fill those jobs. Here are some of the highlights.
Nationally, about 60 percent of jobs are for basic-skilled workers – people with less than a 2-year college degree. By comparison, the Tompkins County region has only 50% jobs requiring basic-skilled workers. Nevertheless, there are not enough basic-skilled workers in the region to fill employers’ demand. This reflects the highly educated population common to a college town. However, other factors, such as a lack of affordable housing and transportation, make it hard to attract and keep lower-wage workers in the area.
At the same time, there is insufficient job opportunity for the large supply of medium and high-skilled workers, a situation that is often exacerbated because their skills do not match up with the job requirements of higher skill opportunities. This mismatch of employment opportunity contributes to our unusually high levels of underemployment, 40% more than the US average. A critical result is that many young professionals aged 35-44 – entering their prime earning years – are leaving the region and taking their young families with them.
The study included a survey of regional employers to get their perspective on the labor market. More than half of employers are satisfied with the workforce. Employers expressed their biggest dissatisfaction with lack of basic skills (such as work ethic and communication skills), skilled-trade skills, and business services skills. It is also difficult for employers to find or attract specialized high-skill employees. As far as their business outlook, local employers expressed more optimism than employers in a national survey.
The study includes an economic forecast. The Tompkins economy is projected to grow at a moderate rate that is below the national growth rate, but above New York State’s. On-going shortages of basic-skilled workers, particularly for the Health, Retail, and Hospitality occupations, is forecast. Underemployment and mismatch of skills for medium-skilled workers is projected to persist.
What’s Next?
With the detailed data from the study in hand, the next step will be to engage the community stakeholders in a discussion to establish objectives and strategies for improving the labor market situation. We expect to take a multi-pronged approach. Certainly targeting workforce development investments is key. Examples include establishing career ladders and expanding adult education. We will also explore non-conventional strategies. These could include improving supports for low-income workers such as day care and affordable housing. Another tactic is helping employers integrate non-conventional workers, such as part-time retirees and persons with disabilities, in their workforce. A third approach is facilitating career development through workplace-based training programs. In addition to developing our workforce, we must also improve targeting of our economic development investments to better match the labor market. All these activities will help workers and employers achieve their goals.
In conclusion, the new workforce strategy will make critical contributions to the continued vitality of our economy.
Martha Armstrong is the Vice President of TCAD. TCAD is a private, not-for-profit membership organization that provides economic development services for Tompkins County.
(A presentation of The Tompkins County Labor Market Region study is available at http://www.tcad.org )
Source: Chmura Economics & Analytics
Note: The “Ithaca” metropolitan area includes all of Tompkins County
From 2001 to 2006, Tompkins County employment grew at 0.9% annually compared to the US rate of 0.6%. However, over the past 12 months, local employment grew 0.1%, well below the US average of 1.0%.
Originally appeared in the Ithaca Business Journal
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Creating A Workforce Strategy for Tompkins County
Tompkins County Area Development
200 East Buffalo Street, Suite 102A Ithaca, New York 14850 ( 607 ) 273 - 0005 |