Employment Trends and Cluster Opportunities

1
Employment Trends and Cluster Opportunities

• Presented to the Steering Committee for the Los
  Angeles and Orange County Regional Consortium
• November 14, 2006

2
Research Objectives

• Primary Objectives
• Evaluate the economic environment in the LAOC
  region as it relates to supply and demand for
  workers
• Identify key clusters in the regions and examine
  growth, wages, and regional concentration
• Determine which clusters and areas of research
  should be considered in the future

3
Regional Economic Outlook

• Employment
• Steady employment growth forecast, with stronger
  growth in the service sectors
• Unemployment (August 2006)
• US - 4.7
• California - 4.9
• Los Angeles County - 5.1
• Orange County - 3.6
• Issues in the regional economy
• Depreciation of the dollar
• Regional infrastructure for trade (short and
  long-term)
• Agreement to cut greenhouse gasses
• Rising interest rates and inflation
• Housing affordability

4
Industry Clusters

• Definition
• A concentration of companies and industries in
  a geographic region, which are interconnected by
  the markets they serve and the products they
  produce, as well as the network of suppliers and
  key economic foundations such as research
  universities, capital, physical infrastructure
  and labor market.
• Source California Regional Economies Project
• Why are Clusters Important
• Drivers of the regional economy
• Require focused workforce development strategies
• Opportunities for strategic planning and
  employer collaboration with the community colleges

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Industry Clusters I

• Apparel Design and Manufacturing includes
  businesses that design and manufacture textiles,
  apparel and footwear
• Construction includes firms that provide
  residential, commercial, and heavy-duty
  infrastructure construction services
• International Trade and Logistics includes firms
  that are engaged in or support the transportation
  and warehousing of products
• Motion Picture and TV Production includes
  businesses that produce and support the
  production of movies, radio, television, and
  music
• Tourism and Entertainment includes firms that
  provide a broad array of visitor and leisure
  services, including eating and drinking
  establishments, hotels, amusement parks, and
  transportation services for visitors.

6
Industry Clusters II

• Business and Professional Management Services
  includes a wide range of business support
  services, from printing and employment services,
  to accounting, architecture, and legal services
• Education includes public and private education
  facilities (kindergarten through high school),
  colleges and universities, trade schools, and
  educational support services
• Finance, Insurance, and Real Estate (FIRE)
  includes firms that provide financial, insurance,
  and real estate services
• Healthcare and Medical Services includes
  businesses that provide medical services, from
  comprehensive acute care hospitals, to medical
  offices, and long-term care facilities and
  services
• Public Sector (Government) includes local,
  state, and federal government employers,
  including public safety services, national
  security operations, and community development
  programs.

7
Industry Clusters III

• Communications includes businesses that provide
  telecommunications services and manufacture
  communications equipment, including audio and
  video equipment
• Computer and Electronics Manufacturing includes
  firms that manufacture and support the
  manufacture of computers, semiconductors, and
  other electronic equipment
• Defense and Transportation Manufacturing
  includes firms that manufacture transportation
  vehicles, including planes and ships, as well as
  defense contractors
• Energy and the Environment includes firms that
  manufacture or research energy production, as
  well as products and services used to mitigate
  the environmental impact of these activities
• Life Sciences and Biotechnology includes firms
  that are engaged in or support research,
  development, and production in the life sciences
• Software and Computer Services includes firms
  that develop software and provide computer
  services, including Internet service providers.

8
Measures of Employment Concentration in LAOC
See pages 12 16 in the memo for a more
comprehensive display of proportional employment
and concentrations in the LAOC region
9
Measures of Employment Concentration in LA
See pages 12 16 in the memo for a more
comprehensive display of proportional employment
and concentrations in the Los Angeles County
10
Measures of Employment Concentration in OC
See pages 12 16 in the memo for a more
comprehensive display of proportional employment
and concentrations in Orange County
11
Expected Employment Growthin LAOC, 2005 - 2012
Industry Clusters I
12
Expected Employment Growthin LAOC, 2005 - 2012
Industry Clusters II
13
Expected Employment Growthin LAOC, 2005 - 2012
Industry Clusters III
14
Expected Employment Growthby County, 2005 - 2012
See page 16 in the memo for the complete table
15
Median Wage by Industry Cluster (LAOC, 2004)
16
Emerging Clusters

• Video Gaming and Entertainment Technology
• Strong presence in the region 50 of California
  companies in LAOC
• Strong employment growth expected
• Opportunities for local community colleges to
  support future growth in the industry
• Computer Information Security
• Strong short-term employment growth expected
• Opportunities for Database Security Engineers
  Data Security Analysts
• Homeland Security Nanotechnology
• Findings indicate potential for employment growth
  and opportunities for community colleges to help
  support the growth of these clusters through
  local workforce development

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Clusters to Focus on in Future Research I

• 1. Energy the Environment
• Review and Revise cluster definitions
• Reevaluate growth expectations due to the current
  legislative and economic environment
• Identify sub-sectors and occupations with strong
  growth expectations
• Determine appropriate strategies and programs for
  community colleges
• 2. Software Computer Services
• Identify sub-sectors
• Identify work that is being outsourced and why
  employment concentration is low for the region
• Identify work that is growing within the region
• Determine growth occupations
• Determine skill-sets of importance

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Clusters to Focus on in Future Research II

• 3. Business Professional Management Services
• Identify sub-sectors and occupations with strong
  growth expectations
• Work with employers to determine appropriate
  strategies and programs for community colleges
• 4. Public Sector
• Evaluate workforce needs taking into account the
  high level of expected retirements in this
  cluster
• Identify sub-sectors and occupations most
  affected by forthcoming retirements
• Determine the composition of the local workforce
• Identity key skills-sets
• Work with employers to determine appropriate
  strategies and programs for community colleges

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Clusters to Focus on in Future Research III

• 5. Life Sciences Biotechnology
• Define the industry cluster
• Assess demand for manufacturing and technical
  workers in the region
• Identify work that may be outsourced and work
  that is growing within the region
• Determine key skill-sets/ areas of specialization
• Work with employers to determine key training
  requirements
• 6. Travel, Tourism, and Entertainment
• Identify higher-paying sub-sectors and
  occupations
• Determine the types of programs which could be
  developed by local community colleges
• Identify strategies to effectively collaborate
  with employers
• Identify and implement career-ladder programs in
  the industry

20
Clusters to Focus on in Future Research IV

• 7. Motion Picture and TV Production (LA Only)
• Identify sub-sectors and occupations with strong
  growth expectations
• Identify work that is being outsourced and work
  that is growing within the region
• Determine key skill-sets/ areas of specialization
• Identify and implement career-ladder programs in
  the industry
• Work with employers to determine appropriate
  strategies and programs for community colleges

21
Employment Trends and Cluster Opportunities

• Presented to the Steering Committee for the Los
  Angeles and Orange County Regional Consortium
• November 14, 2006