LED - Local Employment Dynamics: Data Analysis and Insights

1. LED Local Employment Dynamics Bradley Keen Pennsylvania Department of Labor & Industry Center for Workforce Information & Analysis (CWIA)

2. Goals What is LED? How can you use LED data? Where can you access LED data?

3. What is LED? • A voluntary partnership between state Labor Market Information agencies (CWIA) and the federal government. • States supply quarterly unemployment insurance wage records and business establishment records • The Census Bureau merges the data with other records, incorporates confidentiality protections, and compiles the information for dissemination to the states. • This enhanced data set is then used to create various data tools: QWIs, Industry Focus and On-the-Map.

4. Administrative Records Censuses Surveys Longitudinal-Employer Household Dynamics (LEHD) Local Employment Dynamics Industry Focus Reports QWIs and QWI Online Maps

5. What LED isn’t: • Instantaneous. There is, approximately, a nine-month delay in the collection, processing, and publication of the data. Further, some measures depend on data from the subsequent quarter. • Occupation-based. Overall industries are tracked, but not specific occupations. (E.g., LED/QWI provides data on NAICS 62, Health Care and Social Assistance, but not on licensed practical nurses.) • All Inclusive. Does not included federal employment or the self-employed.

6. What data products are available from LED? • Quarterly Workforce Indicators (QWIs) • QWI Online • PA LED Database • On the Map • Industry Focus

7. Quarterly Workforce Indicators • 30 Indicators • Employment Indicators • Employment Change Indicators (Hires, Separations, Turnover, Hew Hires) • Job Growth Indicators • Earnings Indicators • All analyzed by geography, industry, gender, age, time, education, and ethnicity • Available on QWI Online, PA LED Database

8. QWI Online LED Interface QWI Online

9. QWI Online LED Interface Pennsylvania Local Employment Dynamics Access Database. Produced Quarterly at the State, WIA, and County Level and 2/4 Digit Industry Classification (NAICS) level. Created Using Publically available data and distributed to the PA Workforce Investment Boards.

10. On The Map

11. On The Map On The Map is an online mapping and reporting application that shows where people work and where workers live. Easy to Use Interface displays workplace and residential distributions by user-defined geographies at census-block level detail. Reports on worker and firm characteristics, employment, and residential area comparisons, worker flows, and commuting patterns.

12. How has CWIA used LED Data? By analyzing worker age demographics in Marcellus Shale related industries by Workforce Investment Area, we were able to conclude that workers in these industries tended to be younger than the total across all industries. These data were released in the monthly Marcellus Shale Fast Facts publication.

13. Labor Force Composition Used to identify industry trends – such as the age of the workforce – to better inform training decisions.

14. Earnings Patterns What are new hires, of different ages, earning? What are the earnings of incumbent workers? What is the relationship between the two? Can this help to explain labor market shortages?

15. Labor Market Dynamics What are your companies turnover rates compared to industry average? Compared to other industries? Compare turnover rates by Age, Location, Gender, Industry, Education, and Ethnicity.

16. Site Selection Using On The Map

17. Site Selection Using On The Map Gain an understanding of the labor shed and commuting patterns of an area What are the demographics (age, gender, race/ethnicity) of the workers that are commuting into or out of the selected area? What are the salaries of commuters? What industries are employing the workers who live in an area and who commute to work outside of that area?

18. How have other agencies used LED? • Decision Makers • Understand core performance in a local economic environment and provide evidence of emerging trends • Identify the most promising industry targets for helping older displace workers find jobs at acceptable earnings levels • Employers • Where are the workers in my industry and county? • How much are workers like mine paid? • How does the turnover for other firms in my industry compare to the turnover in my workplace? • Data can be used for site selection • Workers • Where are the jobs? • How much can I expect to be paid in different industries? • How long can I expect jobs to last? • What are the growth trends?

19. How have other agencies used LED? • Economic Development Organizations • Where do workers live? • Demographics of local workforce • What local workforce earns • How many workers who work in the area come in from other areas. • Educational and Training Organizations • Where potential students work and live • Local benchmarks – such as what their students should be earning as new hires in different industries • Transportation Organizations • Where people live and where they work • What people’s income levels are – whether they will drive or use public transportation • Current commuting patterns and trends • Suppliers • Suppliers can use trends on business job creation and destruction, by industry and location, to decided where to locate.

20. Questions??? Bradley Keen Pennsylvania Department of Labor & Industry Center for Workforce Information & Analysis (717) 346-9387 brkeen@pa.gov