State of the WorkforceReport

LANE WORKFORCE PARTNERSHIP 1

State of theWorkforce

Report2 0 1 2

LANE WORKFORCE PARTNERSHIP


TABLE OF CONTENTSIntroduction 1

Executive Summary 2

The Lane County Economy: Past, Present, and Future 7

Industry Cluster Profiles 25

What We’re Doing 40

Lane County’s Workforce Challenges 46

Policy and Planning Recommendations 51


This is the fourth State of the Workforce Report produced by the Lane Workforce Partnership. It has been revised with up-to-date information and builds on the work of prior reports pub-lished in 2006, 2008 and 2010. The report provides an overview of the Lane County economy and labor market, and the workforce issues our region faces as we slowly recover from the Great Recession, including an overview of the trends which will shape the future of the County. Lane Workforce Partnership is pleased to work to promote Lane County’s key competitive ad-vantages while at the same time engaging, supporting, and linking groups of workforce, edu-cation, and business community leaders to promote Lane County’s strengths and overcome its challenges.

The Great Recession devastated the nation, Oregon, and Lane County. Lane County was hit especially hard by the recession due to the fact that the County had a large number of manu-facturing and construction jobs, industries that experienced particularly profound job losses. Recovery from these losses has lagged and some industry restructuring will become perma-nent.

This recession differs from past recessions in that American workers have remained unem-ployed for longer periods of time and college graduates have experienced the worst job mar-ket since the 1930s. Previously, young job seekers entering the workforce had to compete with others primarily in the same age bracket with comparable levels of experience and education. During this recession, younger workers were forced to compete with older workers who were technically more qualified and experienced.

To remain on a pathway of recovery and continued job creation, it is more important than ever that Lane County be diligent in keeping up with constantly shifting economic trends. While the state as a whole struggles to recover, Lane County remains an attractive place for businesses due to its innovative spirit, high quality of life, skilled workforce, and attractive geographic lo-cation.

Continuing to develop economically innovative mechanisms to adapt to shifting trends will rest on elected officials, the business community, policymakers, and decision-makers within the County. Ensuring a collective understanding of economic projections and employment trends will effectively determine how successfully Lane County will continue to recover. Tracking in-dustry and demographic changes will allow for a thorough assessment of the needed levels of educational attainment, focused workforce development training and programs, and areas of opportunity for local and regional economic development.

Introduction


Executive SummaryProduced by Lane Workforce Partnership with assistance from the Oregon Employment De-partment, the State of the Workforce Report consolidates Lane County workforce and industry data, trends and analysis in one convenient place. This executive summary highlights the ma-jor findings. The complete report is available on the Lane Workforce Partnership website: www.laneworkforce.org.

The Lane County Economy

Employment: “Great Recession” Brought Drastic Job Losses and Slow RecoveryBetween 2007 and 2009 Lane County lost 15,900 jobs, or 10.1 percent of its employment, compared to 7.5 percent statewide. Construction and manufacturing were particularly hard hit. Construction lost 2,900 jobs (36 percent) and manufacturing lost 7,600 jobs (38 percent). There were two bright spots during the great recession period. The first, health care, added 1,100 due in part to the addition of the new RiverBend Hospital. The only other industry to add jobs was food and beverage manufacturing which added 157 jobs or 9.3 percent, largely due to the addition of two craft brewers, Ninkasi Brewing and Hop Valley Brewing.

Even though the state and county are pulling out of recession, job growth has not been fast enough during this recovery to get most of the people who lost their jobs back to work. In 2011, 41 percent of unemployed Oregonians had been out of work for more than six months.

Lane County is expected to rebound and grow into the future. Overall, the county is expected to add 25,300 jobs for an 18 percent increase in nonfarm payroll employment between 2010 and 2020. This is similar to the statewide growth rate of 18 percent. Although growth looks strong due to the rebound from a severe recession, some industries do not regain their pre-recession employment.

Wages and Income: StagnantThe recession and loss of high paying jobs in construction and manufacturing have caused real wages to drop again in Lane County reaching $36,773 in 2011. The rest of the state had similar losses in high paying industries during the recession, but the rest of the state, particularly the Portland area, has seen growth in manufacturing. Wages have grown slightly and, as a result, the wage gap between Lane County and the state in 2011 was 19 percent, up from 16 percent in 2009.

Lane County Industry ClustersManufacturing In 2011, manufacturing employed 12,250 people in Lane County or 11 percent of the total nonfarm employment. This number is down significantly from 2007 (pre-recession) employment numbers of 17,665. Manufacturing employment is forecasted to in-crease by 13 percent between 2010 and 2020. Job openings are projected to grow approxi-

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mately 4,424 due to replacement hiring needs and growth openings in manufacturing. The need to replace workers is due, in part, to an older workforce in manufacturing – almost 50 percent of the Lane County workforce is between the ages of 45 and 64. The 2011 average annual wage for manufacturing workers was $45,113.

Health Care In 2011, approximately 20,517 people were employed in private-sector health care and social services in Lane County. This comprises 18 percent of nonfarm employment. Industry projections show an expected growth rate of 31 percent between 2010 and 2020. Additionally, in March 2012, the Bureau of Labor Statistics reported that - health care is ac-counting for one out of every five jobs filled nationally. Health care accounted for 18 percent of total nonfarm employment in Lane County in 2011. The 2011 average annual wage in health care and social assistance (wage for health care alone not available) was $43,904. By com-parison, the county’s average wage for all industries was $35,335.

Software Publishing Software publishing has become a strong industry in Lane County over the past decade. Businesses operating in software publishing are engaged in computer software publishing and/or reproduction. Covered employment (all employees covered under Oregon unemployment insurance) for this cluster was 1,677 in 2011, with approximately 49 establishments. Employment in this cluster grew between 2003 and 2008 and then experi-enced a decline through 2010, as many industries did. However, employment in 2011 has re-bounded to near pre-recession levels in Lane County. Software publishing is projected to grow by 500 jobs between 2010 and 2020. Lane County’s 2011 average annual wage was approxi-mately $69,714, double the county’s all-industry average wage.

Scientific and Educational Research This cluster is comprised of businesses mainly in scientific and educational research. Lane County’s employment in this cluster is highly con-centrated in social sciences and humanities. In 2010, scientific research and development in Lane County had approximately 45 establishments with 698 employees. Average annual cov-ered wage was $43,904 in 2011. Professional and Business Services, the sector housing sci-entific research, is forecast to grow 28 percent between 2010 and 2020 in Lane County. This is well above the private all-industry average growth of 20 percent in Lane County. Educational support services are projected to grow at a respectable 13 percent over the 10-year period.

Lane County’s Key Workforce ChallengesThe Great Recession and the continued slow economic recovery have resulted in significant workforce challenges:

High levels of long-term unemployment In 2012, two out of every five unemployed workers in Oregon has been jobless for at least six months. In 2007, only 12 percent of all un-employed Oregonians were out of work for six months or more. Long-term unemployed job seekers face significant challenges in finding work. A demographic analysis of the long-term unemployed (unemployed over 1 year) in Lane County indicates the most common profile is a laid off manufacturing worker with no training beyond high school.

Structural changes for some industries The first section of the State of the Work-force Report provides an overview of some of the effects of the structural changes underway


in the Lane County economy. Occupational and industry trends are constantly in flux due to a myriad of factors such as the economy, changing technologies, consumer demand, productiv-ity levels and globalization. One result of structural change is a large number of dislocated workers that must be retrained and/or repositioned for work in a different industry or compete for the few jobs that remain in the declining sector.

Skills gaps Even in the midst of the Great Recession, businesses regularly reported having difficulty finding skilled workers. After an extensive literature review, gap analyses in Lane County’s health care and manufacturing sectors, and discussions with area businesses, it is clear that this is a multi-faceted issue.

Younger workers damaged by recession Young people ages 16-21 are facing an uncertain future. Data from the Bureau of Labor indicates that young adults have the highest unemployment rate since records were first kept in 1948. In 2010, the national jobless rate for youth, ages 16-19, was 23 percent. The State of Oregon had the third highest rate in the na-tion. In Lane County, the jobless rate for youth was 26 percent. Some analysts fear that we will face a so-called “lost generation” of young people who gain no job experience during the critical career development period of young adulthood. Research indicates that young workers in this situation will face a lifetime of lower earnings and reduced labor market participation.

2010-2012 Policy and Planning RecommendationsSupport the Lane County Work Ready Community Initiative Being able to tout Lane County as a “Work Ready Community” will give Lane County economic development organizations another great reason to encourage business to locate and grow in our area. For more information on this initiative contact Robin Scott at [email protected].

Create More Work Experience Opportunities for Youth Employment in teen years is one of the best predictors of work readiness, future earnings and lifelong economic self-sufficiency. State and Federal funding for summer jobs programs for youth is critical. In addition to public sector support, local employers can help by championing the establishment of a summer jobs campaign for all Lane County youth. To get involved, contact Lyle Lang at [email protected] or 541-682-7212.

Increase funding for On-the-Job Training, a Job Creation Strategy On-the-Job (OJT) training is a proven strategy in the skilling up of Lane County’s workforce. An em-ployment retention rate of 95 percent makes it one of the most successful retraining invest-ment approaches used in our area. More financial support is needed to maintain and grow this important job creation and job placement effort.

Fund the Employer Workforce Training Program The Employer Workforce Train-ing Program in Oregon was a highly successful incumbent worker retraining and layoff aver-sion strategy from 2004 to 2010. In Lane County, the program benefited 45 local employers and over 2,500 of their employees, providing training and certifications to enhance business productivity and competitiveness and to prevent layoffs. Federal funding for this program was cut in 2011, but it is hoped that financial support will be restored by the Oregon State Legisla-ture in the future.

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Prior to the downturn of the early 1990s, Lane County’s (Region 5’s) economy was much more dependent on the wood products industry. During the expansion of the 1990s, the area added high-tech companies such as Symantec and Datalogic. In addition, industries such as food product manufacturing and health care have continued to add jobs. As a result, Lane County’s economy is more diverse. The University of Oregon and other state and federal government jobs add to that diversity.

During the economic expansion of the 1990s, the region’s 20.1 percent job growth rate was close to the national rate of 19.6 percent. The unemployment rate in Lane County tracked well with the national rate until the second half of the decade. By 2000 the national rate dropped to a low of 4.0 percent compared to the county rate of 5.4 percent.

Although the economic recession of 2001-2003 did not affect Lane County as severely as other areas of the state, the annual average unemployment rate rose to 8.0 percent by 2003 (compared to 8.1 percent statewide and 8.3 percent in the Portland area). The region lost 3,200 jobs over the recessionary period. More than half of the job losses were in a broad array of manufacturing industries.

The Lane County Economy: Past, Present and Future

Mining and Logging

1%

Construction 3%

Manufacturing 9%

Wholesale trade 4%

Retail trade 13%

6 Transportation,

Warehousing, and Utilities

2% Information 2%

! Financial Activities

5% + Professional

and Business Services

10%

( Educational and Health Services

16%

Leisure and Hospitality

10%

Other Services 3%

Government 22%

Lane%County%Employment%May%2012%


After peaking in 2007, the county saw drastic job losses during what is commonly known nationally as the “Great Recession”. Between 2007 and 2010 the county lost 15,900 jobs, or 10.1 percent. This compares to 7.5 percent statewide. Construction and manufactur-ing were particularly hard hit. Construction lost 2,900 jobs (36 percent) and manufacturing lost 7,600 jobs (38 percent). In manufacturing, wood products lost 24 percent (1,100 jobs) of its employment and transportation equipment lost 80 percent (3,300 jobs) from large losses in the local RV industry. The loss of high paying jobs in construction and manufacturing resulted in losses in the local service providing sector. Retail trade (-1,900), Information (-600), financial activities (-1,000) and professional and business services (-1,700) recorded the largest losses.

Growth rebounded in 2004 and continued into 2007 with the addition of 11,700 jobs and an annualized growth rate of 2.0 percent. Many of the losses in manufacturing were recovered. Many of the new manufacturing jobs were in the recreational vehicle-heavy transportation equipment manufacturing in-dustry, which added 1,000 jobs between 2003 and 2005. The recovery was also broad-based. Other industries adding notable growth between 2004 and 2007 include construction (+1,300), wholesale trade (+600), retail trade (+1,600), in-formation (+600), financial ac-tivities (+700), health care (+1,600) and leisure and hospi-tality (+1,500).

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Annual Averge Unemployment Rates

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Oregon

Lane County

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-2,900

-7,600

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-1,100

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Mining and logging

Construction

Manufacturing

Wholesale Trade

Retail trade

Information

Financial activities

Professional and business services

Health care

Leisure and hospitality

Other services

Government

Lane County Employment Change, (Annual Average 2007 - 2010)

Lane County Employment Change,


There were two bright spots during the Great Recession period. The first, health care, added 1,100 due in part to the addition of the new RiverBend Hospital. The only other industry to add jobs was food and beverage manufacturing, which added 157, or 9.3 percent, largely due to the addition of two craft brewers, Ninkasi Brewing and Hop Valley Brewing.

The most recent figures for 2011 show slow growth coming out of the recession. Between 2010 and 2011, about 1,000 jobs were added for the first annual average increase since 2007. Like the national economy, the job growth occurred in the private sector, which added 1,600 jobs, while the public sector lost 600, primarily in local government and especially education.

As Lane County pulls out of the recession a few industry trends are becoming apparent in the 2011 numbers. In the goods producing sectors, natural resources and mining added jobs (+136) due to demand for logs from Asia. Demand from China for logs may decline in the near future as a tariff situation with Russia, a traditional supplier, is resolved. Manufacturing is slowly coming back (+130) from stability in wood products and growth in machinery, fabricated metal and beverage manufacturing.

In the service producing sectors, retail trade has grown (+369). Professional and business services, which is largely temporary firms and call centers, added 315. Health services contin-ues to grow (+390) from demand created by an aging population. Leisure and hospitality has shown surprising strength coming out of the recession (+489 in 2011). This industry is also likely benefitting from the aging of the population as retirees with time and money travel and recreate.

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Natural Resources and Mining

Construction

Manufacturing

( Trade, transportation, and utilities

Information


& Professional and business services

# Educational and health services


Other services

Government

Lane County '10 to '11 Employment Change (Annual Average)


Challenges Remain from the RecessionEven though the state and county are pulling out of recession, job growth has not been fast enough during this recovery to get most of the people who lost their jobs back to work. The lack of available jobs is leading to longer spells of unemployment, and the longer a person has been looking for work, the harder it is for them to find a job. In 2011, 41 percent of unem-ployed Oregonians had been out of work for more than six months. Each month a person re-mains unemployed increases their odds of completely dropping out of the labor market. Keeping the long-term unemployed engaged in the labor force until they can get back to work is one of the key challenges facing Oregon and Lane County.

In addition to the long-term unemployed, the recession has damaged opportunity for younger workers. Unemployment among youths is always higher than it is among the older population. The unemployment rate of Oregonians ages 16 to 19 averaged close to 19 percent in the 10 years leading up to the Great Recession. The rate was more than 10 percent for Oregonians ages 20 to 24 during that period, while the overall unemployment rate was about 6 percent.

Less Than 5 Weeks 40%

5 to 14 Weeks

35%

15 to 26 Weeks 13%

27 to 51 Weeks 6%

52 Weeks and Over 6%

2007:%98,200%Unemployed% Less Than 5

Weeks 21%

5 to 14 Weeks

23%

15 to 26 Weeks 15%

27 to 51 Weeks 11%

52 Weeks and Over 30%

2011:%188,400%Unemployed%

Distribu;on%of%Unemployed%Oregonians%by%Dura;on%of%Unemployment%2007%and%2011%Annual%Averages%

Source:(Bureau(of(Labor(Sta/s/cs,(Current(Popula/on(Survey(

The recession created more competition from older, more experienced workers for available jobs, sending youth unemployment rates in Oregon to record highs. These rates remain at troubling levels. Three out of 10 teenagers in Oregon who would like a job are not able to find one. Labor force participation among teenagers reached the lowest point on record in 2008 and has barely improved. The unemployment rate among 20 to 24 year olds is one and a half times the overall unemployment rate and their participation is also near record lows.


All age groups were damaged to some extent by the recession, but the effects on young workers could have much longer-term consequences. The workforce problems facing younger workers today may follow them well into the future through lower lifetime earnings. Getting younger workers to work, and establishing the experience and income that first jobs provide, is one of the key workforce challenges facing Oregon.

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Unemployment Rates High for Younger Workers, Oregon

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Source: Bureau of Labor Statistics, Current Population Survey

Having a part-time or summer job used to be the normal situation for many teenagers. In Ore-gon, summer teen employment fell during the Great Recession. In 2009 and 2010, new hires in the third quarter (summer) that were ages 14 to 18 numbered fewer than 30,000, whereas third quarter teen hires were closer to 50,000 in 2005 through 2007. Even that level of hiring was lower than in the 1990s, so once again, the recession accelerated a trend that was already tak-ing place in the teen labor market.

Not only has the number of teen workers hired during the recession fallen, the share of new hires between the ages of 14 and 18 also fell, supporting the theory that more jobs were going to adult workers. Fourteen percent of all new hires in Oregon during the summer of 2007 were teens, which is about the historical average. In 2010, only 11 percent of summer hires were teens, the lowest on record.


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Oregon Teen Hiring Halved in Recession Third Quarter New Hires Ages 14-18

Source: U.S. Census Bureau, Local Employment Dynamics

Rebound from Recession ExpectedLane County is expected to rebound and grow into the future. Overall the county is expected to add 25,300 jobs for an 18 percent increase in nonfarm payroll employment between 2010 and 2020. This is similar to the statewide growth rate of 18 percent. Although growth looks strong due to the rebound from a severe recession, some industries do not regain their pre-recession employment. The following table shows the detailed forecast. Some highlights in-clude:

• Mining and logging has strong growth, adding 200 (+29 percent), due in part to demand for logs from Asia and an eventual rebound in the U.S. housing market.

• Construction is expected to rebound from large losses during the recession 1,400 (+27 percent), although it does not regain pre-recession employment levels.

• Manufacturing grows 1,600 (+13 percent). Durable goods manufacturing, including wood products, grows, but does not regain its pre-recession employment. Nondurable goods manufacturing grows slowly, adding 200 (+5 percent) largely from food processing, includ-ing wineries and breweries.

• Retail trade adds 2,600 (+9 percent) jobs due to population growth and Lane County’s po-sition on Interstate-5.

• Professional and business services adds 4,000 (+28 percent). Although we expect a major portion of this growth to come from continued growth in temporary help firms; their rapid


market penetration of the past has slowed. Another major portion, call centers, should also continue to add jobs.

• Private education and health care has strong growth, adding 6,300 (+29 percent). The ma-jority of that growth will come from health care (4,500, 31 percent) due to a growing and aging population.

• Government is expected to grow more slowly than the private sector due to losses in fed-eral government from cuts in the postal service and other areas. State government grows more rapidly from an expected mental health facility in Junction City and continued growth at the University of Oregon. Local government is expected to grow very slowly, hampered by a lack of revenue.


Even in industries that are expected to grow slowly there will still be opportunities created by replacement needs. Replacement needs are created when someone permanently leaves an occupation. It does not include regular turnover. Retirement and death are some common rea-sons for the creation of replacement openings. As the population ages and retirements in-crease, the level of replacement openings will increase.

Education and health services and professional and business services are the only major in-dustry groups where growth is expected to outpace replacement needs during the 2010 – 2020 period. Replacement openings are particularly important to provide opportunity for oc-cupations in manufacturing and construction, which are expected to grow more slowly than other industries.

Wages and IncomeAfter bottoming out in 1990 with the loss of high wage timber jobs, real average wages stead-ily increased until peaking in 2004 at 37,318 up $3,620, or 11 percent.

The addition of high tech manufacturing and stabilization in wood products helped turn wages in a positive direction in Lane County, but not enough to keep the wage gap with the rest of the state from expanding. In 1990 Lane County wages were 10 percent less than the rest of the state. By 2000 the gap had expanded to 19 percent, largely due to rapid growth in high tech manufacturing in the Portland area.

Lane County


The economic downturn that lasted from 2001 through 2003 was particularly hard on the high tech manufacturing industry. Although Lane County had some losses in high tech, its other in-dustries were relatively stable. On the other hand, the Portland area’s economy was more high tech manufacturing dependent, leading to large losses of high paying jobs. Correspondingly, the wage gap between Lane County and the rest of the state dropped to 15 percent by 2004.

Since then, the recession and loss of high paying jobs in construction and manufacturing have caused real wages to drop again in Lane County reaching $36,773 in 2011. The rest of the state had similar losses in high paying industries during the recession, but the rest of the state, par-ticularly the Portland area, has seen growth in manufacturing. Wages have grown slightly and, as a result, the wage gap in 2011 was 19 percent.

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Real Average Annual Wages

Region 5 Rest of Oregon U.S.

Source: Oregon Employment Department

An industry mix that is made up of lower paying industries compared to the Portland area explains some of the wage gap between Lane County and the rest of the state. Additionally, quality of life issues such as less congestion and proximity to outdoor recreation may lower wages for any particular occupation. Although difficult to quantify, employers may be able to offer lower wages because Lane County is a desirable location in which to live. In addition, the high proportion of college students in the county likely will accept lower wages for any particular occupation out of need.

Although the earnings of the average worker in Lane County was about $36,773 in 2011, many earned considerably less. Twenty-three percent of the jobs in Lane County were in oc-cupations that averaged less than $30,000 while 41 percent were less than the overall aver-age of $36,733. Most of the largest occupations in Lane County pay less than the average. Three of the largest: retail sales persons, food preparation and serving workers and cashiers pay less than $26,000. Registered nurses, post-secondary teachers and general and opera-tions managers are the exception for large occupations, paying $74,977, $74,602 and $92,353 respectively.



More job openings over the next decade are in the lower paying occupations. However, the mid and higher paying jobs are expected to grow almost as rapidly. Jobs paying over $50,000 a year are expected to grow by 42 percent, adding 10,541 total openings, 38 percent of those from growth. In comparison, jobs paying less than $30,000 will grow by 38 percent, adding about 22,006 total openings, also 38 percent from growth. Total openings in higher paying jobs are rising due to replacement needs from increasing retirements of experienced workers.

Low (below $30,000), 22,006

Mid ($30,000 to $50,000), 16,424

High (above $50,000), 10,541

Region 5 Employment Forecast by Earnings (Total Openings 2010 - 2020)

Per Capita Personal IncomeThe U.S. Department of Commerce, Bureau of Economic Analysis released its 2010 estimates of personal income for substate areas (counties and townships) in late April 2012. Personal income includes all forms of income including earnings by place of work; dividends, interest, and rent; and government transfer payments (largely Social Security and Medicare). Total per-sonal income is then divided by population to create per capita personal income (PCPI).

Lane County’s total personal income rose by approximately $32.7 million between 2009 and 2010 to reach $3.2 billion, a 1.0 percent increase. When the data are adjusted for inflation however, total personal income decreased by $19.0 million, or 0.6 percent. Inflation adjusted personal income also decreased between 2008 and 2009 by $112.7 million (-3.4 percent).

The components of personal income for Lane County show that 55 percent is from earnings; 21 percent from dividends, interest, and rent; and 24 percent from transfer payments, primar-ily in the form of social security and Medicare. Lane County has similar component portions of


personal income compared with the U.S. and Oregon. At the national level, 65 percent of per-sonal income is from earnings; 17 percent is from dividends, interest, and rent; and transfer payments make up around 18 percent. Statewide, 61 percent of personal income is from earn-ings; 19 percent from interest, dividends, and rent; and 20 percent from transfer payments.

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Per Capita Personal Income

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Oregon Lane

Lane County’s real (inflation adjusted) per capita personal income dropped in 2009 because of recession, but had a slight increase in 2010. Between 2008 and 2009 it dropped $1,700, or 4.9 percent. Between 2009 and 2010 it rose $30, or 0.1 percent to reach $33,280.

Statewide, PCPI dropped $1,840 (-4.9 percent) in 2009 and rose $270 (0.7 percent) in 2010.

At the national level, PCPI decreased $1,990 (-4.8 percent) in 2009 and increased $460 (1.2 percent) in 2010.

Relative to other areas, Lane County’s per capita personal income remained 92 percent of the statewide and dropped to 83 percent of the U.S. Lane County’s per capita personal income now ranks 16th among Oregon’s 36 counties.

Projected Educational RequirementsThe majority of jobs in Lane County require little in the way of training or education, but the fastest growing occupations require post secondary education and training. The minimum re-quired education for almost 66 percent of positions in 2020 will require only on-the-job training or work experience. Many of these jobs are in lower paying services and retail occupations. Jobs that require an associate’s degree or other post-secondary training are expected to grow 21.1 percent while those requiring a professional or graduate degree will grow by 19.7 percent.


To be competitive, job seekers will increasingly be required to attain higher degrees. Jobs re-quiring a bachelor’s degree to be competitive will grow by 18.7 percent compared to 17.4 per-cent for work experience.

Lane County Take Home Messages for Educational Requirements

• About 36 percent of Lane County’s projected growth and replacement job openings will require post-secondary education or more as the minimum educational requirement – slightly higher than the 31 percent statewide.

• And for high-demand, high-wage occupations: 61 percent of the high-demand, high-wage job openings require post-secondary education or more, as a minimum – slightly lower than statewide.

• Growth in health care and state education makes the overall need for post-secondary education slightly higher in Lane County.


A Highly Educated PopulationData for the U.S. shows a direct correlation between education levels and earnings and un-employment. Generally, the higher the education level, the higher the pay and the lower the chances of being unemployed. People with less than a high school diploma averaged $451 in weekly earnings and an unemployment rate of 14.1 percent in 2011, while people with a bachelor’s degree had $1,053 in weekly earnings and a 4.9 percent unemployment rate. Lane County’s educational attainment levels have increased over the past decade. The share of the 25 and older population with less than a high school degree declined from 17 percent in 1990 to 9.8 percent in 2010 while the share with a bachelor’s degree or higher increased from 22.2 percent to 28.2 percent. These percentages compare favorably with those from Oregon and the U. S. In 2010, the percentage of the population 25 and older with less than a high school diploma was lower in Lane County (10 percent) than Oregon (11 percent) and the U.S. (15 percent). The population with a bachelor’s degree was about the same in Lane County at 28 percent compared to 29 percent for Oregon and 28 percent for the U.S.

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U.S. Median Weekly Earnings by Educational Attainment - 2011 (age 25+)

2011 Median Weekly Earnings by Educational Attainment - U.S. 2011 Unemployment Rates by Educational Attainment - U.S.

Source: U.S. Dept of Labor, Bureau of Labor Statistics


DemographicsThe 2011 population estimates indicate that Lane County (Region 5) is the fourth-most popu-lous county in Oregon and the third-most populous metropolitan statistical area (MSA) after the Portland and Salem areas. The county’s 353,155 residents are concentrated within a relatively small region around the Eugene/Springfield urban area. Sixty-nine percent of the county’s resi-dents live in incorporated cities within a 30-mile radius of Eugene, largely along Interstate 5.

Lane’s other population centers outside of the Eugene/Springfield area include the corridor between Florence and Dunes City on the Pacific Coast, and the Oakridge/WestFir area in the Cascade foothills.

Lane County’s population grew at a rate of 14.2 percent from 1990 to 2000. This was below the statewide rate of 20.4 percent, and ranked Lane County 17th fastest growing out of Ore-gon’s 36 counties. Since 2000 the county has grown 9.3 percent compared to 12.7 percent statewide ranking it 15th fastest.

Long-term projections indicate that the county’s population should continue to increase, but the rate of growth should slow and remain below the projected statewide growth rate. Accord-ing to forecasts by the Oregon Department of Administrative Services, Office of Economic Analysis, the total increase in Lane County’s population in the 20-year period between 2010 and 2030 is expected to amount to roughly 82,961 people, or 24 percent compared with 27 percent growth statewide.

In-migration Drives Population GrowthIn-migration has been the driving force behind population growth in Lane County for the past decade. Strong economic growth in Oregon throughout much of the decade – accompanied by recession in surrounding states, particularly California – caused a wave of in-migration. For most of the 1990s, net migration (in-migration less out-migration) outpaced the natural in-crease (births less deaths). Of the population increase between 1990 and 2000, roughly 13,000 was due to natural increase while 32,000 was due to net migration. The peak year of net mi-gration during the 1990s was 1997, with a gain of 4,600. Since then, net migration has slowed, reaching a low of 550 during the recession in 2001.


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Under 5

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20 to 24

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

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65 to 69

70 to 74

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80 to 84

85+

Perc

ent o

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ulat

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Age Class

Age Distribution, 2011 Region 5 and Oregon

Region 5 Oregon

Source: Portland State University, Population Research Center Region 5 includes Lane County

Between 2000 and 2009 net migration again outpaced natural increase. Net migration added 23,431 people, while natural increase added 6,478 people.

Since 2009, net migration continued to outpace natural increase. Between 2010 and 2011, net migration increased 1,163 while natural increase grew 563 for a total population increase of 1,701.

An Aging PopulationThe age distribution of Lane’s population has a higher proportion of its population in the young-adult (20-29) age group. The higher concentration of young adults can be easily ex-plained by the fact that the University of Oregon and Lane Community College enroll thou-sands of out-of-county people – estimates run as high as 10,000 during a typical school year.

As the following graph shows, the statewide and county age distributions have two distinct high points, the age groups that include 40 to 59 year olds and the age groups that include 15 to 29 year olds. The former represents the baby-boom generation and the latter, the echo of the baby boom. While boomers are starting to reach early retirement age, the echo is just en-tering the workforce. The result may be a temporary skill shortage as more people retire than there are skilled people to replace them. How serious this skill gap will become is uncertain. But, despite the “Great Recession” and the resulting high unemployment, the aging of the baby boomers should create opportunities for younger people who develop the right skills and education.


Among the working age population, aging trends are driven by the baby boom generation – those born between 1946 and 1964. As the next graph shows, in 1970, before most baby-boomers entered the workforce, the share of the 45 to 64 year olds of the working-age popula-tion was around 27 percent. As young workers entered the workforce, the working-age popu-lation became much younger, with the 45-64 age group falling to a little over 20 percent of the working-age population. As the baby-boom generation has aged, so has the workforce. The 45-64 share rose from 23 percent to 30 percent of the working age population by 2000. It is expected to peak at 32 percent in 2010 and then level off at around 28 percent, increasing slightly out to 2040.

Although the echo-boomers and in-migration will help lower the 45-64 age group’s share of the working age population and help close any skill or labor gaps that develop in the future, the overall aging of the population will have an impact on the economy. As the baby-boomers age, there is expected to be more demand for health care services and leisure and hospitality services and possibly labor shortages in several industries as the economy recovers.

Forecasts show that the level of those who potentially will exit the labor force will gain com-pared to the level of those who are potential entrants, increasing the likelihood of a labor shortage as the economy recovers. Lane County’s high population of college aged students helps keep the entrant category well supplied. However, many students attending the Univer-sity of Oregon will not be permanent residents. The college student population will help keep short-term positions filled, but as the economy recovers from recession, there may be short-ages in positions requiring a long-term commitment.

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35%

1970 1980 1990 2000 2010 2020 2030 2040

Region 5 45-64 Share of Working-age Population

Source:(Dept.(of(Administra5ve(Service,(Office(of(Economic(Analysis(


Labor Force Participation RatesIn addition to population trends, labor force participation rates – the percentage of individuals working or actively looking for work may affect labor and skill availability. National trends show a steady drop in younger worker’s (ages 16 to 24) labor force participation, dropping from 68.1 percent in 1980 to 55.0 percent in 2011.

It’s a similar story in Oregon. During the recession the rate among teenagers fell dramatically. The share of Oregonians ages 16 to 19 who are working or looking for work fell to an historic low of 38 percent in 2008 and inched up to just 40 percent in 2011 as the economy recovered. Teenagers' participation rate is well below the 65 percent labor force participation rate for the total population over 16 years old.

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Young Workers (16-24) Older Workers (55+)

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1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011

Labo

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Oregon Teen Participation Rate at Historic Lows (Years With Recessions Shaded Grey)

16-19 years

20-24 years

Source: Bureau of Labor Statistics, Current Population Survey


The recession partially explains the drop, but participation rates for young people were drop-ping before the recession. A higher premium on a college education and competition from im-migrants, dislocated workers and older workers are also likely reasons for the drop. On the other end of the age spectrum, older worker’s labor force participation has been on the rise. For workers age 55 and up the participation rate has increased from 32.8 percent to 40.3 percent, increasing slightly over the past two years despite less opportunity caused by the recession and slow recovery. Economic need and better health in the retirement years are likely reasons for the rise. If these trends continue, fewer young workers in the labor force may increase the likelihood of a labor shortage while more older workers lessen the likelihood of a skill shortage.

Industries that have high proportions of older workers may experience labor or skill shortages in the coming years. In 2011, at the broadest industry level, many industries such as mining and logging (63 percent), manufacturing (51 percent), transportation and warehousing (59 percent) and utilities (60 percent) have over half of their workers in the 45 and higher age group. For the other occupations such as real estate (50 percent), health care and social assistance (49 per-cent) management of companies and enterprises (49 percent) have the highest proportion of workers in the 45 and higher age group.

Lane County Veteran’s Labor Force DataThe American Community Survey provides 2010 veteran’s labor force data at the county level. It is not directly comparable to the statewide Current Population Survey data, but can provide comparisons between veterans and nonveterans.

According to the ACS data, in 2010, Lane County veterans had a lower labor force participation rate than nonveterans. Similar to the statewide CPS data, nonveterans experienced a labor force participation rate of 74 percent while veterans were lower at 67 percent. It’s likely that the younger age of today’s veterans contribute to the lower participation rate.

The unemployment rate in 2010 was substantially lower for veterans compared to nonveterans at 9.2 percent compared to 12.8 percent. This result is also similar to the CPS data for Oregon in 2010.

Race and EthnicityMinority racial and ethnic proportions in Lane County are similar to the statewide proportions. In 2010, Lane County was 88.3 percent white, compared with 83.6 percent statewide. The next highest racial category in the county is Asian, at 2.4 percent. The reported Hispanic ethnicity was 7.4 percent in Lane County in 2010, compared with 11.7 percent statewide.

Hispanic PopulationAlthough the Hispanic population only makes up 7.4 percent of the total population in Lane County, it is the fastest growing segment, growing by 117 percent between 1990 and 2000 to reach 14,874. The latest estimate from the U.S. Bureau of Census puts the Lane County His-panic population at 26,167 in 2010, a 76 percent increase over the ten-year period. This is slightly slower than the previous decade, but still the fastest growing ethinic group in Lane County.


The impact of this ethnic group will continue into the future because of its age structure. While Hispanics in Lane County account for a little less than seven percent of the working age popu-lation in 2010, they account for around 16 percent of the under five population and about 12 percent of the school age population. Therefore, the Hispanic population will continue to grow as a part of the school age and working age population into the future.

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18.0%

Under 5 5-19 yrs. 20-64 yrs. 65+ yrs.

Hispanic Share of Population by Age, 2010

Source: Census Bureau


What are Industry Clusters?Industry cluster development is an integral part of the Oregon Business Plan and the Governor’s vision for a statewide workforce investment system. Industry clusters are de-fined by the Oregon Business Plan as “geo-graphic concentrations of similar and/or re-lated firms that draw competitive advantage from their proximity to competitors, to a skilled workforce, to specialized suppliers and a shared base of sophisticated knowl-edge about their industry.”

Firms and workers in an industry cluster benefit from their proximity to each other. A strong industry cluster builds a skilled work-force, specialized suppliers, a shared base of knowledge, and ultimately, a comparative advantage and more opportunities for growth. Firms in the “traded sector”, that is

firms that sell the majority of their products and services outside of local markets, com-prise the base of industry clusters because they build wealth in communities. Traded sector firms are commonly found in manu-facturing, natural resources, wholesale trade, and some service sectors, but they can also be found in other industries de-pending on the characteristics of the firm and local economy.

One way to help identify industry clusters is to calculate location quotients by industry. Location quotients tell us how much more or less concentrated industry employment is in an area when compared with a different area. In most cases, location quotients men-tioned in this report compare Lane County with the U.S. A location quotient of 1.0 means Lane County has the same share of employment in a particular industry as the

Industry Cluster Profiles

$0

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0% 5% 10% 15% 20% 25% 30% 35%

2011

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rage

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ual P

ay (L

ane

Cou

nty

= $3

6,77

3)

Projected Employment Growth (Lane County Average = 18%)

Lane County Industry Wages and Forecasted Employment Growth, 2010-2020

Educational & Health Services

Natural Resources & Mining

Manufacturing Information

Leisure & Hospitality

Professional & Business Services

Other Services

Trade, Transportation &

Utilities

Construction Government Financial Activities

Above Average Job Growth, Above Average Wages

Below Average Job Growth, Above Average

Wages

Below Average Job Growth, Below

Average Wages

Above Average Job Growth, Below Average

Wages



U.S. Location quotients well above 1.0 point to industries with higher concentrations of employment in Lane County, which could be indicative of an industry cluster.

Lane County Industry Cluster Spot-lightThe State of Oregon, the Lane Workforce Partnership, and local economic develop-ment agencies in our area have focused on identifying and working with targeted indus-try clusters for the past several years as a means of strengthening our economy. Iden-tifying and targeting priority industries is not an exact science. Industry data such as number of firms, number of employees, pro-jected growth, average wage, and the con-centration of an industry in an area are each parts of the larger picture.

Other factors that are considered from a workforce perspective include:

• Support for specific occupations within industries that are in demand and offer above average wages

• Industries that offer strong career ladders that allow entry-level employees to pro-gress

• A focus on skill sets that have a high de-gree of transferability among different employers and industries

Lane County industy clusters profiled in the 2012 State of the Workforce Report include:

• Manufacturing• Health care• Software publishing• Scientific and educational research • Green jobs

$0 $20,000 $40,000 $60,000 $80,000

Lane County Average

Health Care and Social Assistance

Manufacturing

Scientific and Educational Research

Software Publishing

Average Annual Pay of Lane County Industry Clusters, 2011

Source: Covered Employment and Wages, Oregon Employment Department


0 5,000 10,000 15,000 20,000 25,000 30,000

Information (includes software)

Manufacturing

Professional and Business Services

Educational and Health Services

Projected Growth in Employment of Lane County Cluster Industries 2010-2020

2020 2010


0 2,000 4,000 6,000 8,000 10,000 12,000

Information (includes software)

Manufacturing

Professional and Business Services

Educational and Health Services

Projected Job Openings in Lane County Cluster Industries, 2010-2020

Growth openings

Replacement openings



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Manufacturing Health care and social assistance

Software publishing Scientific and educational research

Loca

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Location Quotients of Lane County Industry Clusters

U.S. Base Area, Private Ownership, 2011

2011 Lane 2011 Oregon


ManufacturingLane County maintains a strong, diversified manufacturing sector. A location quotient of 1.02 indicates essentially the same concen-tration of manufacturing employment in the county as seen across the U.S. Manufactur-ing is an important industry because it is a traded sector, pays above average wages, and expects to provide nearly 3,000 re-placement job openings for workers be-tween 2010 and 2020.

In 2011, manufacturing employed 12,250 people in Lane County or 11 percent of the total nonfarm employment. This number is down significantly from 2007 (pre-recession) employment numbers of 17,665. Even though the Great Recession caused great job losses in manufacturing, Lane County is slowly adding back jobs. These losses – al-though particularly sharp in recent years – are a part of the cyclical nature of manufac-

turing. Transportation equipment in Lane County is an excellent example of this busi-ness pattern. Before 2008, transportation equipment was the second-largest manufac-turing subsector behind wood products. In 2012, we can shift our focus to wood prod-ucts, food and beverage, fabricated metal, and machinery to find business growth.

Manufacturing employment is forecasted to increase by 13 percent between 2010 and 2020. Job openings are projected to grow approximately 4,424 due to replacement hir-ing needs and growth openings in manufac-turing. The replacement needs will be the largest percentage of openings at 2,784 or 63 percent of the total. The need to replace workers is due, in part, to an older workforce in manufacturing – almost 50 percent of the Lane County workforce is between the ages of 45 and 64. Manufacturing has one of the older workforces in Lane County, and work-


ers will be needed to replace those who re-tire over the decade. Even with an improved growth forecast for 2010-2020, replacement openings will provide the majority of the overall job opportunities in manufacturing for the foreseeable future. The 2011 average annual wage for manufacturing workers was $45,113.

The graph below shows employment size and average annual wage of Lane County’s largest manufacturing subsectors. Wood Products manufacturing is by far the largest subsector, with over twice as many employ-ees as the next largest subsector, food. Wood products, food, and the third largest subsector, machinery, account for 56 per-cent of manufacturing employment in Lane County. These three subsectors are profiled below along with beverage and fabricated

metals manufacturing. Fabricated metal takes the fourth-largest spot. Transportation equipment and computer and electronic products remained the fifth and eighth larg-est subsectors in 2011, respectively. Chemi-cal manufacturing, the seventh largest sub-sector, includes Lane County’s largest bio-technology company, Life Technologies.

Many jobs in manufacturing require on-the-job training. These jobs generally provide good wages for workers without post-secondary education. Some of the more skilled jobs require postsecondary training, apprenticeships, or a bachelor’s degree. These jobs pay better and are in demand in the manufacturing industry. There is a mix of high- wage, high-demand occupations in manufacturing.

Transportation

Computer & Electronic

Fabricated

Beverage

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Lane County Manufacturing Subsectors by Employment Size and Wage

Food

Wood Products

Chemical

Machinery

Paper


Misc.!!

Furniture


Wood ProductsWood product manufacturing, logging, and related industries were the mainstay of the Lane County economy for decades, and re-main an important part of the economy to-day. In 2011, the location quotient for wood products manufacturing in Lane County was 9.87 compared to the US. Oregon has a much lower LQ of 4.62, when compared to the US. Five out of the top six industry loca-tion quotients belong to wood products. Plywood and engineered wood products manufacturing is still the biggest employer with employment numbers at 1,922 in 2011 and a location quotient of 30.63 (Oregon, 9.15) compared to the US. Plywood has a location quotient more than double any other industry in Lane County. The second-, third-, fifth- and sixth-highest location quo-tients belong to support for forestry, saw-mills, timber tract operations, and logging. Location quotients in these subsectors ranged from 11.51 to 14.91.

Despite being hit by recessions, timber sup-ply reductions, foreign competition, and most recently, a slumping housing market, wood product manufacturing has continued

to endure in Lane County. The industry has become more efficient with larger mills that can process a wider range of raw material and in some instances, production has shifted toward secondary wood products. Today’s lumber mills are lean and high-tech. Ten-year employment projections show a 15 percent growth for wood products manufac-turing and 29 percent growth projection for mining and logging. Average wages in wood products were approximately $44,413 in 2011. Lane County’s wood products manu-facturing wage was higher than the Oregon’s statewide average of $41,919.

FoodIn Lane County, food manufacturing has emerged as the second largest manufactur-ing subsector coming out of the recession. In 2011, food manufacturing had a location quotient of exactly 1.00 overall (Oregon 1.32), up from .90 just a few years ago. Much of the statewide industry concentra-tion is located along the I-5 corridor between Salem and Portland. As a nondurable goods subsector of manufacturing, food is typically less susceptible to the business cycle of


booms and recessions. Local leaders in business and public policy find food manu-facturing uniquely positioned in Lane County, with a niche in natural and organic food. From Grain Millers to Springfield Creamery and Toby’s Family Foods, Lane County has a variety of food manufacturers producing natural and organic food prod-ucts. A local culture that supports natural and organic foods helps build comparative advantage for this subsector. Although food manufacturing pays less than average for a manufacturing subsector at $37,358, the wage is higher than the private total industry average of $35,335 for Lane County.

Lane Workforce Partnership surveyed 60 food and beverage cluster businesses in 2012. The survey findings indicated that the local food and beverage industry was inter-ested in collaborating with local government and area non-profits to strengthen and grow the cluster. A Regional Food and Beverage Consortium has been formed. The group is comprised of business representatives, Lane Workforce Partnership, Lane County Com-

munity and Economic Development Depart-ment, the Eugene Area Chamber of Com-merce, the City of Eugene and Lane Metro Partnership. This group will be meeting regu-larly to discuss issues including access to capital, regional marketing and branding, workforce issues, regulatory concerns and infrastructure needs. The full survey can be found on the Lane Workforce Partnership website. http://laneworkforce.org/wp-content/uploads/2012/06/FINAL-Lane-County-Food-Cluster-Survey-Results-for-Web.pdf

Beverage Beverage manufacturing is a growing indus-try in Lane County. Businesses can be di-vided into three main areas; those that manufacture alcoholic beverages, those that manufacture non-alcoholic beverages, and distilleries. In Lane County, wineries and breweries have seen growth within the alco-holic beverage category. Wineries have a location quotient of 5.5 and breweries round out the top 15 for all Lane County industries

http://laneworkforce.org/wp-content/uploads/2012/06/FINAL-Lane-County-Food-Cluster-Survey-Results-for-Web.pdf







with a location quotient of 4.2. The expan-sions at King Estates, Ninkasi, and Oakshire brewing are examples of growth in this in-dustry. Beverage employment was relatively small at 353 in 2011 yet yielded a total aver-age annual payroll in excess of $10 million. Beverage average wages are the lowest in manufacturing at $28,218.

Fabricated Metal Fabricated metal is forged, stamped, bent, and formed, machined, welded, or fabricated to create parts or final products. Examples of industries in this field include Farwest Steel and Clarke’s International. Employment numbers for 2011 top 899 with 83 establish-ments. The location quotient for fabricated metal in Lane County and Oregon are lower than the US at .65 and .89, respectively. De-spite a lower LQ, this industry is projected to grow at a greater than average rate between 201 0 and 2020, and offers above-average wages ($37,758) in Lane County.

MachineryMachinery is probably the least well-known of Lane County’s largest manufacturing sub-sectors. While many Lane County residents could name a few wood products or food manufacturers, how many could name more than one or two machinery manufacturers? It probably has to do with the generic industry subsector title. However, there are several well-known Lane County companies in-cluded in this subsector, such as Peterson Pacific, Bulk Handling Systems, and John-son Crushers.

Machinery manufacturing is similar to fabri-cated metal product manufacturing, where metal is forged or fabricated to create parts or final products, but machinery typically in-volves several of these processes to create a complex machine that applies mechanical force for a particular application. Design is an important component of machinery produc-

tion. Lane County machinery manufacturers are diverse, with the strongest concentration of employers in agriculture, construction, and mining machinery, industrial machinery for sawmills, and material handling equipment. Here we see a connection between the wood cluster and the creation of industrial equip-ment for use in sawmills and woodworking plants. The employment for machinery is more concentrated in Lane County than in the U.S., with location quotient of 1.32. The Lane County location quotient outpaces Oregon’s (.80). The average annual wage in machinery was approximately $52,591 in 2011, higher than both wood products and food manufacturing.

Local Manufacturing Survey Results Since 2007, Lane Workforce Partnership has administered an annual manufacturing sur-vey in order to learn more about how local manufacturers view and are responding to workforce issues. The survey is modeled on a National Association of Manufacturers sur-vey. Twenty-nine manufacturers were sur-veyed in December 2011. Despite the con-tinued high unemployment rate, 72 percent of manufacturers polled reported difficulty finding skilled applicants. Specific positions reported to be difficult to fill include technical and leadership positions: Machinists/CNC Operators, Electronic/Mechanical Techni-cians and Managers. Overall, 78 percent predict a shortage of skilled production workers over the next three years. Direct economic impacts cited as a result of skill shortages were lower overall productivity (re-ported by 62 percent), and reduced produc-tion output/sales (reported by 48 percent). On a brighter note, 66 percent report in-creased sales and 38 percent reported less down time on the shop floor in 2011. Com-plete survey results are available on the Lane Workforce Partnership website http://laneworkforce.org/press-and-publications/

http://laneworkforce.org/press-and-publications/





Health CareHealth care is the largest and fastest grow-ing targeted industry cluster in Lane County. Health care is comprised of ambulatory health care facilities, hospitals, and nursing and residential care facilities. Health care is the only cluster profiled in this report that is not a traded sector. Lane County is a regional center for health care in Oregon and, as a re-sult, some services are consumed by patients outside the county. This brings money into the community like a traded sec-tor. Still, most health care services are consumed lo-cally. Health care is of re-gional importance be-cause it is forecast to have the most employment growth of all industry sec-tors between 2010 and 2020, and it pays above av-erage wages.

In 2011, approximately 20,517 people were employed in private-sector health care and social services in Lane County. This com-prises 18 percent of nonfarm employment. Industry projections show an expected

growth rate of 31 percent between 2010 and 2020. Additionally, in March 2012,

the Bureau of Labor Statistics re-ported that - health care is account-ing for one out of every five jobs filled

nationally. Health care accounted for 18 percent of total nonfarm employ-

ment in Lane County in 2011. The 2011 average annual wage in

health care and social assis-tance (wage for health care

alone not available) was $43,904. By comparison, the county’s average wage for all industries was

$35,335.

Health care, like manufactur-ing, has an aging workforce. About 49 percent of Lane County

0 1000 2000 3000 4000 5000 6000 7000

' Educational and health

, Trade, transportation, and

* Professional and business

Government


Manufacturing

Construction


Other services

Information

$ Natural resources and

Employment Change

Health Care Forecast to Add Most Jobs in Lane County between 2010 and 2020

2010-2020 Lane County Employment Projections by Industry



workers in health care are 45 years of age and older, creating a need for replacement hiring as workers retire. Higher-than-average wages, high employment growth, and over-all job openings make the health care cluster particularly attractive to workers who are looking for ample job opportunities and the ability for strong earnings.

Health care reform will have major workforce impacts in this sector. There will be an in-creased demand for those who contribute to providing primary care services such as physicians, clinical laboratory professionals, imaging technicians, pharmacy personnel

and health educators. Expanded use of pre-ventative care will increase demand for lab and imaging personnel, and radiation tech-nologists. An emphasis on home and com-munity care will increase the need for health care workers with home health and commu-nity care skills. A 2012 Baker Institute Policy Report “Health Reform and the Health Care Workforce” describes these changes in de-tail. http://www.bakerinstitute.org/publications/HPF-pub-PolicyReport51-Web.pdf

Software PublishingSoftware publishing has become a strong industry in Lane County over the past dec-ade. Businesses operating in software pub-lishing are engaged in computer software publishing and/or reproduction. Covered employment (all employees covered under Oregon unemployment insurance) for this cluster was 1,677 in 2011, with approxi-mately 49 establishments. Employment in this cluster grew between 2003 and 2008 and then experienced a decline through

2010, as many industries did. However, em-ployment in 2011 has rebounded to near pre-recession levels in Lane County. Soft-ware publishing has a strong location quo-tient in Lane County at 6.07 (2.72 LQ in Ore-gon) compared to the US. Employment in the information industry (including software publishing) and is projected to grow by 500 between 2010 and 2020. Lane County’s 2011 average annual wage was approxi-mately $69,714, double the county’s all-industry average wage.

http://www.bakerinstitute.org/publications/HPF-pub-PolicyReport51-Web.pdf





1,000

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2,200

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Software publishing growing faster in Lane County than in Oregon and US

(Indexed to 2001 SoftwarePublishing Covered Employment in Lane County)

Lane County Oregon U.S.


In addition to the covered employment in this cluster, it is assumed that there are quite a few individuals working in software who are not covered under unemployment insur-ance, such as the self-employed. It is diffi-cult to quantify how many of these individu-als there are, but in 2010 nationwide, the Bu-reau of Labor Statistics estimated that ap-proximately 4.1 percent of information tech-nology professionals were self-employed.

Nevertheless, Lane County could have a comparative advantage over other locations by being an attractive place to live for busi-nesses and workers in this cluster. Growth in this cluster should remain strong nation-ally and internationally as the use of com-puters continues to increase around the world. This cluster is very mobile, competi-tive, and susceptible to changes in the busi-ness cycle. Despite these fluctuations, high wages and opportunity for growth make this cluster increasingly important to the econ-omy of Lane County.

In general, a bachelor’s degree is required to be competitive for many jobs in software, such as computer software engineers, appli-cations. Computer software engineers are among the occupations projected to add the most new jobs in Lane County between 2010 and 2020. For those without a bache-lor’s degree, excellent job opportunities exist in the form of computer support specialists, but these jobs typically pay less than soft-ware engineers.

Lane Workforce Partnership surveyed 44 lo-cal software companies about their work-force needs. The survey found that recruiting qualified employees was of high concern to 74 percent of those surveyed. Software en-gineers and computer programmers were among the positions most difficult to fill. Complete survey results are available here:

http://laneworkforce.org/wp-content/uploads/2013/01/Lane-County-Software-Tech-Survey-Results.pdf








Scientific and Educational Research The Eugene-Springfield metro area is a hub for both scientific and educational research and development. This cluster owes much of its growth to connections with the University of Oregon. Many owners, employees and researchers in these businesses have ties to the university. Some have worked there; others have attended. The symbiotic rela-tionship between the university and the re-search industry has helped this cluster grow and contribute to the success of many new and innovative businesses.

This cluster is comprised of businesses mainly in scientific and educational research. Scientific research is divided into two areas: research and development in both the physical and social sciences. Educational support services include activities such as research, consultation, and test evaluation services in an educational setting. Lane County’s employment in this cluster is highly

concentrated in social sciences and humani-ties. In 2010, scientific research and devel-opment in Lane County had approximately 45 establishments with 698 employees. Av-erage annual covered wage was $43,904 in 2011. Professional and Business Services, the sector housing scientific research, is forecast to grow 28 percent between 2010 and 2020 in Lane County. This is well above the private all-industry average growth of 20 percent in Lane County. Educational support services are projected to growth at a re-spectable 13 percent over the 10-year pe-riod. The University of Oregon is not in-cluded in scientific or educational research because it is a government entity and not all of its employment and wages go towards research and development, but the Univer-sity is central to this cluster’s existence and viability in Lane County.


0 5 10 15 20 25 30 35

Plywood and engineered wood product mfg.

Support activities for forestry

Sawmills and wood preservation

Recreational vehicle dealers

Timber tract operations

Logging

Rooming and boarding houses

Social science and humanities research

Men's and boys' clothing merchant wholesalers

Software publishers

Wineries

Location Quotient

Social science and humanities research have a top 10 location quotient in Lane County

2011 U.S. Base Area, by 5 Digit NAICS


The National Institutes of Health (NIH), the largest grantor for medical research in the world, awarded a remarkable $37 million to at least 8 organizations in Lane County in fiscal year 2012. The $37 million represented 19 percent of the $199.4 million in NIH fund-ing awarded statewide, with most of that money funding research activities. The Uni-versity of Oregon received more than half of the $ 37 million with 50 awards. The largest private sector recipients were Oregon Social Learning Center ($14.6 million), Oregon Re-search Institute ($8.9 million), and Oregon Center for Applied Science ($1.0 million). These four organizations received 94 per-cent of NIH funding in Lane County.

One of the threats to the growth and devel-opment of research and development in Lane County is, in fact, grant funding. Some of these businesses rely on grants. By their very nature, grants are unpredictable and susceptible to changes in the business cycle and public policy. Foundations and industry organizations can also rapidly change the focus of funding, which can leave some re-search businesses without grants if they cannot adapt. While grants are vital to the sustainability of some of these businesses, many sell their products and services on the open market. This not only provides an ele-ment of sustainability to this cluster, it also provides more opportunities for economic and employment growth.

Educational requirements for jobs in re-search range from short-term, on-the-job training to advanced post-secondary de-grees. Average annual wages vary from ap-proximately $30,000 for interviewers to nearly $70,000 for psychologists. Social

science research assistants and psycholo-gists are projected to account for nearly one-third of all new jobs in research. These occupations generally require a bachelor’s or master’s degrees.


Green JobsGreen jobs are not a cluster of industries or occupations based on the production of a common good or service, but rather jobs that are connected based on the green busi-ness practices. In the Oregon Employment Department’s report, “The Greening of Ore-gon’s Workforce,” a green job was defined as providing a service or making a product that:

1. Increased energy efficiency, 2. Produced renewable energy, 3. Prevented, reduced, or mitigated envi-

ronmental degradation, 4. Cleaned up and restored the natural en-

vironment, or 5. Provided education, consulting, policy

promotion, accreditation, trading and offsets, or similar services supporting categories 1-4.

According to the 2010 survey, Oregon had an estimated 43,148 green jobs, which ac-counted for 3 percent of Oregon’s private and government employment. More than 4,300 employers reported some type of em-ployment in green jobs. The five industries

with the most green jobs were construction; natural resources and mining; state and local government; manufacturing; and profes-sional and technical services. The largest shares of green jobs were reported in the Portland area with 41 percent of green jobs and the Willamette Valley (including Lane County) with 17 percent.

The 2010 average hourly wage statewide for green jobs was $23.07. On average, green jobs paid slightly higher wages than jobs across the entire economy, but wages varied significantly depending on occupation and education requirements. Education require-ments for green jobs looked very similar to requirements for all jobs statewide. Thirty percent of green jobs required only related work experience and no degree to be com-petitive, 10 percent required a high school diploma, 16 percent required some college, and 23 percent required a bachelor’s or ad-vanced degree. Employers project little change in the number of green jobs state-wide between 2010 and 2012. Only three industries expect to add green jobs in 2012: manufacturing; administrative and waste services; and other services, which includes automotive repair and personal care serv-


Portland and Surrounding Areas

41%

Willamette Valley 17%

Southern Oregon 11%

Central Oregon and Columbia Gorge

9%

Oregon Coast 6%

Eastern Oregon 2%

Multi-Region, Unknown, or Out-of-state

14%

Oregon's Green Jobs Concentrated in Portland Area and Willamette Valley, 2010

ices, among other things. To view the entire report on green jobs in Oregon, click on the link http://www.qualityinfo.org/pubs/green/greening.pdf.

Lane Workforce Partnership convened a Green Jobs Task Force to learn more about our local green sector and to identify relevant training and workforce needs. The overall impression of the Task Force is that green industry is still in a formative stage. This sector will need contin-ued monitoring as it develops. At this time, the majority of green jobs are not new jobs, but existing jobs with added green skill sets. It could be that this addition of green skill sets has resulted in the retention of some jobs. Two green areas that seem to have a higher concentra-tion in Lane County include Recyling/Reuse and Sustainable Agriculture. These subsectors tend to have lower wages and fewer training needs than average. A detailed summary of the task force’s findings can be found here: http://laneworkforce.org/wp-content/uploads/2013/01/Recommendations-Findings-Green-Jobs-Task-Force.pdf

http://laneworkforce.org/wp-content/uploads/2013/01/Recommendations-Findings-Green-Jobs-Task-Force.pdf

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State and Local Workforce Strategic Plans

Development Oregon Workforce In-vestment Board Strategic PlanThe Oregon Workforce Investment Board (OWIB) has updated its strategic plan for workforce development in the state. Lane Workforce Partnership held several local feedback sessions on the draft plan with a variety of local stakeholders including busi-ness leaders, educators, economic devel-opment representatives and community non-profits.

Governor Kitzhaber’s charge to the Oregon workforce development system is to:

• Ensure employers are getting the work-ers they need to remain competitive and create local prosperity in a global envi-ronment.

• Prepare a skilled and ready workforce available to fill both current replacement and newly developed jobs.

• Transform Oregon's approach to work-force from federal silos and separate funding streams into integrated and meaningful opportunities leading to suc-cessful employment for all who can and want to work.

In response to this charge, the OWIB devel-oped a workforce development strategic plan for 2012-2022: “Oregon at Work: Qual-ity Jobs-Skilled Workers Contributing to a Strong State Economy and Local Prosper-ity.” (The Oregon Workforce Investment Board’s plan can be found at: http://worksourceoregon.com/component/docman/cat_view/177-owib-strategic-plan?Ite

mid=137. The plan includes three statewide goals:

• Goal 1: A competitively skilled workforce is consistently available to fill both cur-rent, replacement and newly developed jobs

• Goal 2: Employers attract and retain the skilled Oregonians they need to remain competitive and support local prosperity

• Goal 3: The Workforce System provides integrated services and exceptional cus-tomer service, leading to successful em-ployment for all who can and want to work.

The plan goes on to identify three focus ar-eas that will assist in the attainment of these goals. They are:

• Industry Sector and Cross-Sector Strategies

• Work Ready Communities• System InnovationLane Workforce Partnership, along with its workforce partners, has crafted a local

What We’re Doing

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Workforce Strategic Plan in alignment with OWIB’s plan. The goals and strategic objec-tives identified in the Local Workforce Stra-tegic Plan are:

GOAL I: To build a pipeline of higher skilled workers to meet employers’ demand

STRATEGIC OBJECTIVES:• Increase academic skills, workforce

readiness and occupational skills of the emerging workforce

• Increase work experience, internship and pre-apprenticeship opportunities for the emerging workforce

• Increase training and employment op-portunities for transitional and current workers in high wage, high demand oc-cupations and careers in targeted sec-tors

• Offer targeted services to meet the train-ing and employment needs of people with disabilities, veterans, 50+ and mi-norities

GOAL II: To promote workforce system inte-gration and service delivery integration

STRATEGIC OBJECTIVES:• Increase opportunities for individuals to

skill-up in the WorkSource Lane Centers and increase access to on-line learning

• Expand employer engagement within the workforce system

GOAL III: To invest, oversee, and promote a workforce system that meets the needs of employers and job seekers to advance economic development

STRATEGIC OBJECTIVES:• Review the effectiveness of training in-

vestments and job placement services• Monitor local unified plan implementation

• Regularly inform the community on the effectiveness of the workforce system

• Implement customer satisfaction meas-ure in collaboration with the Oregon Workforce Investment Board

GOAL IV: To align employers, workforce, education, human services and economic development policies and programs to in-crease business competitiveness

STRATEGIC OBJECTIVES:• To implement sector strategies in manu-

facturing and health care• Establish Lane County as a certified

Work Ready Community• Align with community and economic de-

velopment initiatives that foster the board’s mission

• Promote initiatives with K-12 and com-munity colleges to align curricula to workforce opportunities and needs

GOAL V: Increase federal and non-federal resources for board initiatives

STRATEGIC OBJECTIVES:• Support statewide and regional initiatives

to increase funding for workforce devel-opment

• Pursue grant opportunities and new partnerships

To read the local Workforce Strategic Plan go to: www.laneworkforce.org

A Regional Approach to Economic and Workforce Development Lane Workforce Partnership has been very active in working toward a shared regional identity and approach to economic and workforce development. Alignment of area resources and services has been a priority






for the Lane Workforce Partnership Board of Directors for over a decade.

Since the 2010 State of the Workforce Re-port, several vehicles for this alignment have been developed and are working in concert with one another:

Joint Elected Officials (JEO) Regional Economic Development Plan The JEO plan was developed by a regional advisory group which included representa-tives from Lane Workforce Partnership and was approved by the elected officials in Eugene, Springfield and Lane County. It creates a new vision of how governments, businesses, and community members can work together to help create economic sus-tainability in Lane County. It also establishes a framework for decision-making for com-munity partners within Eugene, Springfield and Lane County.

The plan’s goals are to:

• Support the growth and development of existing area businesses to achieve qual-ity job creation.

• Accelerate the development of entrepre-neurial infrastructure.

• Train, attract and maintain a competitive workforce to meet the region’s current and emerging industry needs and stimu-late business development.

• Prepare for the land and physical infra-structure that is necessary to support business development and stimulate quality job creation.

• Promote awareness and advocacy for the region’s economic quality of life that continues to support and attract the in-vestment and innovative and entrepre-neurial talent, and builds on our dynamic and diverse economic community.

• Continue to support the development of our wealth generating sectors that have

built a strong economic foundation for our community and have complemented our region’s quality of life.

For a detailed overview of the plan, go to http://www.eugene-or.gov/index.aspx?NID=815.

Regional Prosperity InitiativeLane Workforce Partnership has partnered with the Eugene Area Chamber of Com-merce to work with industry clusters under the Regional Prosperity Initiative. This has led to a comprehensive approach to cluster development that includes both workforce and business development strategic plan-ning. Business representatives in targeted clusters including Software, Manufacturing and Educational Technology groups have been convened. Through facilitated roundta-ble discussions, industry surveys, and indi-vidual business interviews, industry business and workforce issues and concerns have been identified. Many of the findings from these groups are cited in the industry cluster section of this report.

Cluster Practitioner’s CollaborativeIn order to better prepare our region for fu-ture workforce and economic development grant opportunities, a diverse group of economic development and workforce prac-titioners has been convened by Lane Work-force Partnership. The intent of this group is to identify and outline several industry clus-ter development concepts.

Typically, federal grant opportunities have a 30-day application window for responses. This time frame is so short that unless strong partnerships are already in place and project concepts are well developed, it is impossible to respond. Adding a strong economic de-velopment component to concept develop-ment will allow Lane Workforce Partnership

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to seek funding opportunities from a more diverse set of funding agencies.

Regional Food and Beverage Consor-tiumLane Workforce Partnership received a grant from the Lane County Community and Economic Development Department to pro-vide an industry analysis of the local food and beverage processing industry. An exten-sive survey of this industry was done. Re-sults are available at: http://laneworkforce.org/press-and-publications/

The survey findings indicated that the local food and beverage industry was interested in collaborating with local government and area non-profits to strengthen and grow the clus-ter. A Regional Food and Beverage Consor-tium was formed. The group is composed of business representatives, Lane Workforce Partnership, Lane County Community and Economic Development Department, the Eugene Area Chamber of Commerce, the City of Eugene and Lane Metro Partnership. This group is meeting regularly to discuss issues including access to capital, regional marketing and branding, workforce issues, regulatory concerns and infrastructure needs.

Work Ready CommunitiesCertified Work Ready Communities (CWRCs) are being piloted across the country. Work Ready Communities are those that place a high priority on developing and growing their local talent pool. To earn this designation, communities encourage job seekers, stu-dents and current workers to earn a work ready certification called the National Career Readiness Certificate (NCRC). This certifica-tion was developed by ACT, an internation-ally recognized assessment company. The NCRC assessment tests for essential core

employability skills in Applied Mathematics, Locating Information and Reading for Information. The test results in a Bronze, Sil-ver, Gold or Platinum rating and these ratings are correlated to basic skills required for a variety of occupations.

Becoming a Certified Work Ready Commu-nity is both a workforce and economic de-velopment strategy. The benefits include:

• Lends a competitive advantage in recruit-ing and retraining businesses

• Documents workforce quality for relocat-ing and expanding businesses

• Demonstrates community commitment to a skilled workforce

• Improves hiring procedures and reduces turnover and training costs

• Addresses skills gaps in the workforce• Becomes part of the community’s shared

economic identityLane Workforce Partnership will be leading an initiative to identify Lane County as a Cer-tified Work Ready Community beginning January 2013.

Promising State Initiatives

40-40-20In 2011, the state legislature passed Senate Bill 253 that established “40-40-20”as the goal for Oregon’s education system.

The goal states that by 2025, Oregon will ensure that:

• 40 percent of adults will have earned a bachelor's degree or higher.

• 40 percent of adults will have earned an associate degree or post-secondary cre-dential.

• 20 percent of adults will have earned a high school diploma, modified high






school diploma or the equivalent of a high school diploma.

The 2011 legislature also passed Senate Bill 909 establishing the Oregon Education In-vestment Board (OEIB). The board is charged with ”overseeing an effort to create a seamless, unified system for investing in and delivering public education from early childhood through high school and college so that all Oregonians are well prepared for careers in our economy.”

To further 40-40-20, the OEIB is entering into annual achievement compacts with school districts and community colleges.

The Lane Workforce Partnership, like other local workforce investment boards in Ore-gon, can help local school districts and community colleges meet this goal by:

1. Offering work experience and other work based learning opportunities to assist in high school retention and graduation.

2. Supporting the development of short term certification programs to address

“We want Oregon graduates to be ready to contribute to our state and to our economy, and we want them to feel confident that they are on the path to those careers that produce family wage jobs." Governor John Kitzhaber, State of the Schools speech, Septem-ber 6, 2011


the “middle 40” targeted at increasing the number of adults with an associates degree or post secondary credential.

3. Working closely with business to en-hance the connection between work and learning.

Back to Work Oregon The Back to Work Oregon program is one of Governor Kitzhaber’s initiatives to support Oregon’s economic recovery and to promote job creation. The program is funded by $3.4 million from Oregon’s general fund and its goal is to place 663 Oregonians into perma-nent jobs. Local Workforce Investment Boards, like Lane Workforce Partnership, agreed to match this investment by placing an additional 662 unemployed Oregonians back to work using local federal and non-federal resources. The program consists of 2 components:

• On–the-Job Training (OJT) which is a “hire-first” program that reimburses a company for the cost of training a new employee. A training plan is put in place by the company which leads to em-ployee retention in the job.

• Oregon’s National Career Readiness Cer-tificate (NCRC) which demonstrates that an individual has the foundational skills necessary to succeed in the training plan and on the job, and provides the individ-ual with a portable credential for future career growth.

The program worked! Over 1325 unem-ployed Oregonians went to work. In Lane County, 85 unemployed residents are now working as the direct result of Back to Work Oregon. More information about Back to Work Oregon can be found here: http://oregonwfpartnership.org/wp-content/uploads/2011/02/OJTNCRCProposal-final.pdf

Oregon Business Plan and the Oregon Cluster NetworkThe Oregon Business Plan has a robust job creation agenda. This agenda includes pre-paring Oregonians for high-demand careers. Key among its recommendations is support for the National Career Readiness Certificate (NCRC) and “Back to Work Oregon”, Gover-nor Kitzhaber’s job creation initiative that combines on-the-job training with the NCRC.

The Oregon Business Plan also supports industry cluster development as a key strat-egy for economic and workforce develop-ment. They launched the Oregon Cluster Network in 2005. The Network works to identify Oregon’s mature, emerging, and po-tential industry clusters and to assist cluster practitioners and industries as they work to-gether to accelerate innovation and growth. Lane Workforce Partnership and other Lane County cluster practitioners participate in these statewide meetings to learn from best practices and to align local cluster initiatives with statewide efforts.

More information about the Oregon Business Plan can be found at: www.oregonbusinessplan.org.

“We knew we needed to grow. But, because of the economy we were uncertain about hiring. Because of the OJT program, we knew we could hire someone and really take the time to train them well and get them inte-grated into our company.” Todd Edman, CEO, Lunar Logic

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The Great Recession and the continued slow economic recovery have resulted in signifi-cant workforce challenges:

• High levels of long-term unemployment• Structural changes for some industries• Skills gaps• Younger workers damaged by recession

Long-Term UnemploymentIn 2012, two out of every five unemployed workers in Oregon has been jobless for at least six months. In 2007, only 12 percent of all unemployed Oregonians were out of work for six months or more. Long-term unem-ployed job seekers face significant chal-lenges in finding work. A demographic analysis of the long-term unemployed (un-employed over 1 year) in Lane County indi-cates the most common profile is a laid off manufacturing worker with no training be-yond high school.

Many employers say they don’t want to hire people who have been out of work for a while because they fear that their skills have become out of date. After evidence was pre-sented that unemployed workers were facing discrimi-nation in hiring, the Oregon legislature passed SB 1548 preventing discrimination against the unemployed. This new law became effective in March 2012 and prohibits ads or job postings that require applicants to be currently employed.

Lane Workforce Partnership’s ResponseOn-the-Job-TrainingOn-the-Job-Training (OJT) programs tar-geted to the longer-term unemployed, incen-tivize the employer to hire individuals who may not have the full skill set for an open position. OJT funds paid to the employer off-set the costs of training the individual on the job and can also pay for related classroom training.

Lane Workforce Partnership has utilized this strategy to retrain workers since 2010. Cur-rent Lane Workforce Partnership funding in combination with funds from Back to Work Oregon will place 80 individuals in OJTs this year. This strategy has been extremely suc-cessful and has boasted a 95 percent job retention rate in Lane County.

More information and success stories from the Lane Workforce Partnership OJT pro-gram can be found here:

Lane County’s Key Workforce Challenges

http://laneworkforce.org/success-stories/success-stories-scott/


http://laneworkforce.org/business-services/on-the-job-training/.

National Career Readiness Certifica-tionObtaining a National Career Readiness Cer-tification through WorkSource Lane docu-ments a job seeker’s skill level in applied math, reading and locating information. This can give employers an increased level of confidence about a long-term unemployed applicant. If a job seeker tests below the level indicated for their desired occupation, remedial skills training can assist in bringing up the individual’s score so they will be a more competitive candidate. http://laneworkforce.org/job-seeker-services/career-readiness-certificate/

Short-term TrainingShort-term training to update or upgrade skills can help long-term unemployed job seekers have an edge in applying for open positions. Lane Workforce Partnership awarded 160 training scholarships to unem-ployed and low income individuals last year. More information about training scholarships can be found here: http://laneworkforce.org/job-seeker-services/training-scholarships/.

Job Seeker SupportLong-term unemployed job seekers need assistance to better market themselves. WorkSource Lane assists hundreds of indi-viduals in resume development and inter-view practice through free workshops and assisted resource room activities. More in-formation can be found here: http://laneworkforce.org/job-seeker-services

Structural Changes for Some In-dustriesThe first section of this State of the Work-force Report provides an overview of some of the effects of the structural changes un-derway in the Lane County economy. As an example, even though manufacturing is pro-jected to grow in the 2010-2020 decade, it will not make up for the 7,000 manufacturing jobs lost during the Great Recession. Occu-pational and industry trends are constantly in flux due to a myriad of factors such as changing technologies, consumer demand, productivity levels and globalization.

One result of structural change is a large number of dislocated workers that must be retrained and/or repositioned for work in a different industry or compete for the few jobs that remain in the declining sector. An interesting article on this topic was written by Lane County’s Regional Economist, Brian Rooney, called “Recreation Vehicle Manu-facturing Workers, Where are they Now?” This study gives some insight into what happens to workers when the industry they work in undergoes a substantial decline. http://www.qualityinfo.org/olmisj/ArticleReader?itemid=00008243

Lane Workforce Partnership’s Response

Rapid Response ServicesOne of Lane Workforce Partnership’s (LWP) key missions is to assist workers dislocated from an industry. Initial contact with a dislo-cated worker often occurs at their place of employment through LWP’s Rapid Response Service. This early intervention involves Lane Workforce Partnership staff advising both the employer and soon-to-be laid off em-ployees about relevant information and re-sources, including the possibility of retrain-

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ing. In large-scale layoffs, a resource room at the business can be set up for easy ongo-ing access to services. More information about Rapid Response Services can be found here: http://laneworkforce.org/business-services/rapid-response.

Dislocated Worker SupportDislocated workers can also receive services at WorkSource Lane: http://laneworkforce.org/worksource-lane/.

These services include job search assis-tance, resume development, and assess-ment for retraining or on-the-job training programs. Dislocated workers will also be encouraged to obtain a National Career Readiness Certificate. http://laneworkforce.org/job-seeker-services/career-readiness-certificate/.

Career advising and retraining scholarships are targeted toward transferable skills and occupations projected to be in high de-mand.

Industry Trends MonitoringLane Workforce Partnership continually monitors the local economy and related workforce indicators for evidence of struc-tural change. This allows staff to best advise job seekers and to prioritize limited re-sources. In addition to working closely with Lane County’s Regional Economist and Workforce Analyst, LWP conducts regular industry surveys and hosts business round-tables to get information on industry and workforce trends. Lastly, LWP’s Board of Directors is made up of business represen-tatives that reflect the dominant industries in Lane County.

The Skills Gap: Businesses Struggle to Find Skilled Workers Despite High UnemploymentEven in the midst of the Great Recession, businesses regularly reported having diffi-culty finding skilled workers. After an exten-sive literature review, gap analyses in Lane County’s health care and manufacturing sectors, and discussions with area busi-nesses it is clear that this is a multi-faceted issue.

Foundational Skills GapIn many cases, the skills gap is a founda-tional one. In order for an employee to suc-ceed in a job and to advance along a career path, the individual must have a solid level of math and reading literacy. The National Career Readiness testing system allows job seekers and current employees to document their foundational skills in applied math, reading and locating information and to compare their results against the skill level needed for their desired occupation. http://laneworkforce.org/job-seeker-services/career-readiness-certificate/

This objective feedback gives the individual a chance to build up their basic skills if nec-essary to advance in their career or to be more competitive for job openings. If the person desires re-training, this testing will provide an indicator about any basic skills remediation necessary prior to engaging in classroom training.

Highly Technical Occupations Most at RiskThe following are examples of occupations that local employers have most commonly reported skill gaps:

• Machinists/CNC Operators

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• Electronic/Mechanical Technicians• Software Engineers• Computer Programmers• Physical and Occupational Therapists• Medical/Health Services Managers• Truck DriversThese positions require a high level of tech-nical training and experience or a special-ized certification, so it makes sense that there would be shortages in these areas. Some of these shortages, particularly in manufacturing and the trades, are also due to a higher than average aging workforce.

Other Skills Gap Factors• Sensing an abundance of available

workers, some employers may be set-ting a high standard for applicants.

• In some cases, a perceived skills gap may instead be a “pay gap” whereby an employer is not paying a high enough wage to attract skilled candidates.

•Due to the poor economy, there is a lack of worker mobility. Many are unable to sell their homes or to af-ford to relocate for work. This can make finding the best candidate harder.•Many medium skilled or repetitive tasks are being outsourced or re-placed by technology meaning available jobs are becoming more highly skilled and high-tech.•Long term unemployment may degrade skills for those who work in fast-changing industries.•Structural economic changes may mean large numbers unemployed in one industry and shortages in others. Large skill gaps may occur until those dislocated workers are

able to retrain or transfer their skills to other industries. An example of this phenomenon in Lane County is the many laid-off manufacturing workers that have retrained for jobs in health care.

• There is still some lack of alignment of local training programs and occupations in demand. Some occupational training programs have struggled to maintain up-to-date equipment and software pack-ages due to budgetary constraints. In some areas, curriculum is slow to adapt to the rapidly changing needs of em-ployers. Lastly, there may be a lack of local training programs for some highly skilled occupations.

Lane Workforce Partnership’s ResponseLane Workforce Partnership (LWP) continues to analyze and monitor the skills gap issue. At the foundation level, LWP’s programming supports the development of strong basic skills. The National Career Readiness Certi-fication will be promoted widely among low-


income adults, current workers, dislocated workers and youth as a means to quantify basic skills and provide employers stan-dardized assurance of a candidate’s founda-tion skills. http://laneworkforce.org/job-seeker-services/career-readiness-certificate/

Free WorkSource Lane classroom and on-line learning courses help individuals in-crease their reading, math, locating informa-tion and basic computer literacy. (http://laneworkforce.org/job-seeker-services/)

Lane Workforce Partnership consistently provides feedback to area training institu-tions about skills gaps and engages in regu-lar dialog and targeted strategies to close these gaps. LWP also prioritizes training scholarships and on-the-job training place-ments in these occupations. On-the-job training reimburses businesses who hire an individual who has most of the skills re-quired for a position but needs training on the job to fully function in the role. http://laneworkforce.org/business-services/on-the-job-training/

Younger Workers Damaged by RecessionYoung people ages 16-21 are facing an un-certain future. Data from the Bureau of La-bor indicates that young adults have the highest unemployment rate since records were first kept in 1948. In 2010, the national jobless rate for youth, ages 16-19, was 23 percent. The State of Oregon had the third highest rate in the nation. In Lane County, the jobless rate for youth was 26 percent.

Some analysts fear that we will face a so-called “lost generation” of young people who gain no job experience during the criti-cal career development period of young adulthood. Research indicates that young

workers in this situation will face a lifetime of lower earnings and reduced labor market participation. These figures are magnified even more for low income and at-risk youth population. Upper-income white teens, of-ten capitalizing on their parents' social net-works for help, are three times as likely to have summer jobs as low income black youth. The US Bureau of Labor Statistics currently projects that teen employment may never return to pre-recession levels.

Why are young people so disproportionately affected by this recession? First, the major-ity of layoffs are conducted on a “last hired, first fired” basis. This means that older and more experienced workers tend to be re-tained while younger workers are let go. Second, older more experienced workers that have been laid off are competing for and getting many entry level jobs, edging out younger candidates. Last, both employ-ers and older workers are sitting tight, taking as few risks as possible in an uncertain en-vironment.

Lane Workforce Partnership’s ResponseLane Workforce Partnership operates a youth program for Lane County residents ages 16-21. The program includes the fol-lowing components:

• Tutoring, study skills training and in-struction leading to secondary school completion, including dropout preven-tion strategies

• Alternative secondary school options• Summer employment opportunities di-

rectly linked to academic and occupa-tional learning

• Paid and unpaid work experiences, in-cluding internships and job shadowing

• Occupational skill training














• Leadership development opportunities• Supportive services• Adult mentorship for at least 12 months• Follow-up services for at least a year af-

ter a youth has left his/her program• Comprehensive guidance and counsel-

ing, including drug and alcohol abuse counseling

Current funding allows for 193 open slots for youth to be served in Lane County. Addi-tional funding will provide up to 38 paid in-ternships. Internships are a key strategy to address high youth unemployment.

More information on LWP’s youth program can be found here: http://laneworkforce.org/youth-services/.

Lane Workforce Partnership shares the Ore-gon Workforce Investment Board’s vision “Oregon at work: quality jobs—skilled work-ers, contributing to a strong state economy and local prosperity.” To shape this vision for Lane County, strategic planning and close collaboration are needed. The following are specific policy recommendations in support of a more prosperous future:

Support the Lane County Work Ready Community InitiativeBeing able to tout Lane County as a “Work Ready Community” will give Lane County economic development organiza-tions another great rea-son to encourage busi-ness to locate and grow in our area. Early testing results indicate that Lane County residents are test-ing above the US average in math, reading and lo-cating information skills. This gives our community a competitive edge and can assure employers

that applicants meet the foundational skills requirement for open positions. Individuals receive a nationally recognized certification that is preferred by many local companies. To meet Work Ready Community bench-marks, this effort will require participation and support of a wide range of local busi-nesses, schools, public officials, students, job seekers, and current workers. Join Lane Workforce Partnership’s Work Ready Com-munity initiative today. Contact Robin Scott at [email protected] or 541-682-7224.

Policy and Planning Recommendations 2012-2014

http://laneworkforce.org/youth-services/

http://laneworkforce.org/youth-services/




Create more work experience oppor-tunities for YouthYoung people need more opportunities to explore careers and to develop work readi-ness skills. Employment in teen years is one of the best predictors of work readiness, fu-ture earnings and lifelong economic self-sufficiency. State and federal funding for summer jobs programs for youth is critical. In addition to public sector support, local em-ployers can help by championing the estab-lishment of a summer jobs campaign for all Lane County youth. To get involved, contact Lyle Lang at [email protected] or 541-682-7212.

Increase funding for Back to Work Oregon, a Job Creation Strategy Back to Work Oregon combines On-the-Job Training and the National Career Readiness Certificate.

On-the-Job-Training (OJT) is a proven strat-egy in the skilling up of Lane County’s work-force. An employment retention rate of 95

percent makes it one the most successful retraining investment approaches used in our area. The financial reimbursement incentive has encouraged 46 local employers to hire 105 new employees since 2010 when the program began. Lane Workforce Partnership is able to provide 80 OJT opportunities this year. More financial support is needed to maintain and grow this important job creation and job placement effort.

Fund the Employer Workforce Training Program The Employer Workforce Training Program in Oregon was a highly successful incumbent worker retraining and layoff aversion strategy from 2004 to 2010. In Lane County, the pro-gram benefited 45 local employers and over 2,500 of their employees, providing training and certifications to enhance business pro-ductivity and competitiveness and to prevent layoffs. More information, including success stories can be found here: http://laneworkforce.org/business-services/employer-workforce-training-funds/.



http://laneworkforce.org/business-services/employer-workforce-training-funds/





Chuck ForsterExecutive DirectorLane Workforce Partnership

Robin ScottBusiness Services CoordinatorLane Workforce Partnership

Lonnie BivinsCommunications ManagerLane Workforce Partnership

Brian RooneyRegional EconomistOregon Employment Department

Kim ThompsonLane County Workforce AnalystOregon Employment Department

Contributors to the State of the Workforce Report

A statewide report on the effectiveness of the program “The Employer Workforce Train-ing Fund, a Story of Systems Change” (http://oregonwfpartnership.org/wp-content/uploads/2011/10/EWTF-a-story-of-systems-change-final1.pdf) details the benefits of the

program. Federal funding for this program was cut in 2011, but it is hoped that financial support will be restored by the Oregon State Legislature in the future.

http://oregonwfpartnership.org/wp-content/uploads/2011/10/EWTF-a-story-of-systems-change-final1.pdf







The Lane Workforce Partnership is an Equal Opportunity/Affirmative employer. Auxiliary aids and services are avail-able upon request to individuals with disabilities.

Lane Workforce Partnership1500 Valley River Drive • Suite 150 • Eugene, Oregon 97401

(541) 682-3800www.laneworkforce.org

http://www.laneworkforce.org/

http://www.laneworkforce.org/