The Changing Face of the Texas Labor Market

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The Changing Face of the Texas Labor Market

• Economic Development and the New Workforce
• Dallas, Texas
• March 24, 2003
• Richard Froeschle, Director
• Career Development Resources(CDR)
• rich_at_cdr.state.tx.us
• [phone]

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Economic forecasting is a field that gives
Astrology a good name!
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A Changing Texas Labor Market

• 1. Its a recession if you dont have a job,
  otherwise its just a three-year downturn!
• 2. Economists still very divided on duration,
  turning point signals, impact of Iraq war, and
  level of job growth in recovery

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What do labor economists agree on?

1. All jobs, even the most low-skilled, will require
   higher levels of basic education, math,
   communication and technology skillsfor survival
   and growth
2. More opportunities in the knowledge sector. Level
   job growth in low-paying, low-skill service jobs.
   Harder to get from one to the other with
   education and skills acquisition
3. Those persons without some specialized knowledge
   or skill are likely to suffer declining real wages

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Projected Growth Occupations Texas 2000-2010

• Fastest Growing
• Computer Support Specialists
• Computer Software Engineers Applications
• Desktop Publishers
• Computer Software Engineers Systems
• Systems Communication Analyst
• Database Administrators
• Medical Information Technicians
• Social/Human Services Assistants
• Special Ed Teachers

• Adding Most Jobs
• Customer Service Reps
• Fast Food Prep Workers
• Child Care workers
• Retail Sales Workers
• Registered Nurses
• Cashiers, ex. Gaming
• Computer Support Specialists
• General Office Clerks
• Waiter/Waitress
• General Operations Mgrs
• Elementary School Teachers
• Secondary School Teachers

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What do labor economists agree on? (II)

• 4. The Digital Divide exists and those on the
  wrong side will have limited hiring and
  advancement opportunities
• 5. Jobs requiring human touch will continue to
  be in demand e.g. health services and nursing,
  construction, personal services. No commodities!
• 6. Technology is rapidly changing business
  practices, knowledges, skills hiring
  requirements making lifelong learning essential
  No more paving the cow path

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U.S. Industries Adding Most Jobs 2000-2010

• 1. Computer and Data Processing 1.80 mil
• 2. Retail Trade 1.60 mil
• 3. Eating Drinking Places 1.48 mil
• 4. Offices of Health Practitioners 1.24 mil
• 5. State and Local Education 1.07 mil
• 6. Misc. Business Services 1.00 mil
• 7. Construction 824 thou
• 8. State and Local Government 808 thou
• 9. Wholesale Trade 776 thou
• 10. Health Services, NEC 689 thou
• 13. Residential Care 512 thou
• 14. Hospitals 509 thou
• 16. Nursing/Personal Care Facilities 394 thou

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More Jobs in Services

• Texas Absolute Job Growth 1999-2002
• Educational Services
• Food Services/Drinking Places
• Ambulatory Health Care Services
• Professional and Technical Services
• Local Government
• Specialty Trade Contractors
• General Merchandise Stores
• Hospitals
• Heavy and Civil Construction
• Motor Vehicle and Parts Dealers

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Job Declines in Goods Producing Sectors

• Texas Industries Losing Most Jobs 1999-2002
• Agriculture/Forestry Support
• Computer/Electronic Manufacturing
• Apparel Manufacturing
• Transportation Equip Manufacturing
• Fabricated Metal Manufacturing
• Chemical Manufacturing
• Oil Gas Extraction
• Food Beverage Stores
• Administrative Support Services
• Federal Government

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A Changing Texas Labor Market

• 3. More jobs in small firms, greater use of
  leased and independent contract labor means fewer
  and shorter career ladders
• 4. Workplace earnings are increasingly correlated
  with education and earnings inequality is
  increasing based on education and the Digital
  Divide

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A Changing Texas Labor Market

• 5. Changing demography affects everything from
  education needs, workplace diversity, tax
  structure, retirement planning
• 6. Globalization changes economic theory,
  business practices and labor supply options
• 7. Changing shape of education and workforce
  preparation

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Population Pyramids for Anglo and Hispanic
Ethnic Groups in Texas, 2000
Anglo
Hispanic
Male Female
Male Female
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How Globalization Impacts the Labor MarketThe
Basics

• Globalization new digital technology opens
  producer/consumer markets around the world
• Increased customer access to producers leads to
  global price competition, driving employer need
  for greater productivity, lower prices
• Increased price competition leads to cost
  containment pressures
• Cost containments leads employers to new supply
  chain practices, concerns over labor costs,
  alternative labor options

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Education and Labor Supply

• a. Changing demographics-new mix
• of diversity in the labor pool
• b. Relevance of a college major?
• c. College credential vs. industry
  certification? Value of a diploma?
• d. Counting skill attainment from
  non-traditional sources, e.g. on-
• line courses, employer training,
• Marketable skills achievers?

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The Workplace of the Future...

• The factory of the future has just one man and
  one dog. The mans job is to feed the dog. The
  dogs job is to keep the man from touching the
  equipment.