THE HAMILTON COUNTY, INDIANA AREA LABOR AVAILABILITY REPORT September, 2007 Compiled and Prepared by THE PATHFINDERS Dallas, Texas City of Indianapolis Big City Ctr Medium City Ctr Prim. Hwy Summary Source: Applied Geographic Solutions © 2006. DemographicsNow is brought to you by SRC, LLC. © 2006 All Rights Reserved Date: 10/01/07 TABLE OF CONTENTS I. INTRODUCTION.............................................................................................................1 II. SUMMARY OF FINDINGS............................................................................................2 III. METHODOLOGY............................................................................................................3 IV. ASSESSMENT OF THE WORKFORCE......................................................................5 A. Number of Available Workers for Employers...................................................5 B. Desired Wages of Underemployed Workers.......................................................7 C. Median Desired Pay Rates of Underemployed Workers for Various Skills....9 D. Characteristics of Underemployed Workers....................................................10 E. Experience and Skills of Underemployed Workers.........................................14 F. Factors Affecting Job Desirability of Underemployed Workers....................17 V. EMPLOYERS’ VIEWS OF TOTAL WORKFORCE................................................19 A. Recruitment Methods.........................................................................................19 B. Turnover, Tardiness and Absenteeism.............................................................20 C. Substance Abuse..................................................................................................21 D. Productivity and Attitudes.................................................................................21 E. Basic Communications and Calculations Ability.............................................22 F. Availability...........................................................................................................23 G. Comparisons with Other Areas.........................................................................24 H. Opinions on Skills / Training.............................................................................28 VI. NATIONAL COMPARATIVE OBSERVATIONS.....................................................29 A. Desired Wages - Hamilton County Labor Shed...............................................31 B. Desired Wages - Indianapolis Region................................................................32 C. Experience – Hamilton County Labor Shed....................................................34 D. Experience – Indianapolis Region.....................................................................37 E. Skills – Hamilton County Labor Shed..............................................................40 F. Skills – Indianapolis Region...............................................................................43 VII. CLOSING REMARKS...................................................................................................46 INTRODUCTION The Pathfinders has employed its experience in workforce assessments for corporate site- selection clients and civilian workforce assessments for the Department of Defense in locations that faced military base closures to produce this evaluation of the Hamilton County, Indiana area workforce. The information presented in this report has been developed independently of the client, and the client has not influenced the findings. The Pathfinders functions as a site-selection consultant to many of America’s largest corporations, including companies such as AT&T, DuPont, Celanese, 3M Corporation, IMC Global, Singapore Aerospace, AIG, UPS, and Lockheed Martin. The question that most often drives the search for a new business location is whether the candidate location has the workforce needed, and a workforce analysis has been a key component of the site searches conducted for these clients. Senior human resources executives from among corporate clients assisted in refining this methodology and report format. Companies making location decisions based upon these surveys have reported that when staffing actually began, the numbers reported by The Pathfinders proved to be accurate. In a poll of its corporate clients, The Pathfinders found that those clients’ experiences suggest that new hires for new operations typically do not come from the ranks of the unemployed. Instead, these clients and other companies staff a new operation principally with individuals who are working but who desire better jobs and who appear to possess the skills, education, and experience to qualify them for those better jobs. By that definition, those individuals can be considered “underemployed” and are identified as such in this report. The type of quality employer that the Hamilton County region is attempting to attract will typically hire people who come from this group. As a consequence, The Pathfinders was retained to quantify the extent to which underemployment exists in the area, as well as to document the cost, skills, experience, and education of that hidden workforce. This report represents the objective and professional view of The Pathfinders with regard to workforce availability, cost, skills, and quality that a new employer can expect in the Hamilton County region. SUMMARY OF FINDINGS .. The Hamilton County area, referred to in this report as the “labor shed”, has a household population of approximately 957,900 and a civilian labor force of approximately 530,200. .. The labor shed has a pool of approximately 23,100 unemployed persons who are actively seeking work. .. A new employer will be able to attract employees from an additional pool of about 22,800 workers. These individuals are currently employed and have indicated an interest in changing jobs. .. These potentially available workers are referred to in this report as the “underemployed” because they appear to possess the skills, experience, and education to qualify them for the pay rates at which they would take a new job. .. The desired pay rates of these underemployed workers are reasonable when compared to their existing pay rates. The median current pay rate of the underemployed workers is $12.96 per hour, and the median desired pay rate of the underemployed workers is $15.67 per hour. .. About 25% of the underemployed workers would take a new job for $12.46 per hour or less. At the upper end, the 25% most qualified and experienced will command more than $22.89 per hour. .. Roughly 4,400 people, neither employed nor seeking work, might re-enter the workforce for the proper job. .. In total, the Hamilton County area has 50,300 available workers for new or expanding businesses. METHODOLOGY Published government statistics report wages and employment for the entire workforce of an area, even though most of that workforce has no interest in changing jobs. This report, prepared by The Pathfinders, includes data on those people in the area who desire to change jobs and who would be potential candidate workers for a new employer. As opposed to average wages, this report quantifies the number of those workers available for an employer in various wage ranges. Also included as potential workers are the unemployed who are actively seeking work and that segment of individuals who might consider re-entering the workforce for a good job. The first step in assessing the workforce of the Hamilton County area was to determine the boundaries of the area to be assessed. To accomplish this task, The Pathfinders applied the same reasoning that would be used during a site search for a corporate client considering the area as a potential location. The Hamilton County survey area includes those locations from which workers might be drawn to a new employer and is referred to in this report as the “labor shed”. This labor shed consists of Boone, Hamilton, Madison and Tipton Counties and portions of Marion County in Indiana. Once the labor shed was identified, a random sample of telephone numbers of qualified respondents in the labor shed was obtained for use in the Computer Assisted Telephone Interviewing or CATI system. The Pathfinders then conducted telephone interviews with individuals throughout the Hamilton County region. Those individuals were proportionally stratified across age, household income, and zip codes. The purpose of these interviews was to ascertain availability for work with a new employer; determine desired pay rates; and, collect information on such factors as age, education, commuting patterns, experience, and skills. The data obtained as a result of those interviews enabled The Pathfinders to apply and employ a proprietary methodology that accurately determined the existence of underemployment as defined in the introduction. The Pathfinders applied a proprietary process to the analysis of the data to correct for invalid responses. For example, those persons indicating they would take a new job but also indicating the desire for increased or decreased pay that is unreasonable are not counted in the results. This process considers that to be counted as underemployed, an individual must be currently employed and willing to take another job at a pay rate commensurate with personal skills, education, and experience. Current pay alone is not the qualifying factor for underemployment status in this study. Individuals, for example, making $7.50 per hour, possessing no high school degree or skills, and being in the workforce for less than one year may consider themselves to be underemployed but are not considered to be so in this report. On the other hand, education, skills, and experience may qualify the person making $22.00 per hour as truly underemployed. Sufficient interviews were completed with qualified individuals to produce results for that entire population group which vary by no more than plus or minus 5 percentage points. If the survey were repeated 100 times, 95 times out of 100 the results would be the same as those resulting from a survey of every individual in the entire population. Irrespective of the fact that the methodology employed is scientifically proven to produce such results, it is perhaps even more important to note that companies making location decisions based upon these surveys have reported that when staffing actually began, the numbers reported by The Pathfinders proved to be accurate. ASSESSMENT OF THE WORKFORCE The Hamilton County area labor shed has a household population of approximately 957,900. The civilian labor force numbers approximately 530,200, and the labor shed contains approximately 23,100 unemployed people who are actively seeking work. The results of this assessment determined that approximately 22,800 workers can be defined as underemployed: those individuals who are currently working but would take a better job if offered by a new or existing employer and who appear to possess the skills, education, and experience to qualify them to do so. Further, the results suggest that an additional 4,400 people who are not currently employed or actively seeking work would consider re-entering the workforce. In total, the Hamilton County area has approximately 50,300 available workers for new or existing employers. AVAILABLE WORKERS Number of underemployed workers 22,800 Number of unemployed persons who are actively seeking work 23,100 Number of persons who are not working, but would consider re-entering the workforce 4,400 _____________ Total Number of Workers Available for Employers 50,300 The reader is cautioned that, while the number of underemployed workers identified in the region, as well as their skills, experience, education, and costs, is accurate, all of those individuals may not be acceptable candidates for an employer. Their previous work records, stability, integrity, intelligence, appearance, and other factors are not considered in this report. These underemployed workers might also be termed “upgraders”. They desire to move into an upgraded job and appear to possess the skills, education, and experience to enable them to do so. The pay rates they expect to achieve range from under $8.00 to over $30.00 per hour. The following data represent the desired pay rates of the underemployed individuals in the labor shed. Many workers expressed their wage requirements in weekly, monthly, or annual terms, but all wage figures in this report are presented in hourly rates. Selected conversions may add perspective to the hourly rates. Figures presented below are rounded and based on a 40-hour workweek. CONVERSION CHART Hourly Weekly Monthly Annually $ 8.00 $ 320.00 $ 1,387.00 $ 16,640.00 $ 10.00 $ 400.00 $ 1,733.00 $ 20,800.00 $ 12.00 $ 480.00 $ 2,080.00 $ 24,960.00 $ 14.00 $ 560.00 $ 2,427.00 $ 29,120.00 $ 16.00 $ 640.00 $ 2,773.00 $ 33,280.00 $ 18.00 $ 720.00 $ 3,120.00 $ 37,440.00 $ 20.00 $ 800.00 $ 3,467.00 $ 41,600.00 $ 22.00 $ 880.00 $ 3,813.00 $ 45,760.00 $ 24.00 $ 960.00 $ 4,160.00 $ 49,920.00 $ 26.00 $ 1,040.00 $ 4,507.00 $ 54,080.00 $ 28.00 $ 1,120.00 $ 4,853.00 $ 58,240.00 $ 30.00 $ 1,200.00 $ 5,200.00 $ 62,400.00 $ 32.00 $ 1,280.00 $ 5,547.00 $ 66,560.00 $ 34.00 $ 1,360.00 $ 5,893.00 $ 70,720.00 DESIRED WAGE RATES PER HOUR BY RANGE 22,800 Underemployed Workers NUMBER OF UNDEREMPLOYED WORKERS AVAILABLE AT SPECIFIC WAGE RATES PER HOUR (rounded) $7.99 or Less 500 $8.00 - $8.99 50 $9.00 - $9.99 1,200 $10.00 - $10.99 1,700 $11.00 - $11.99 1,700 $12.00 - $12.99 1,200 $13.00 - $13.99 2,800 $14.00 - $14.99 50 $15.00 - $15.99 3,300 $16.00 - $16.99 1,700 $17.00 - $17.99 500 $18.00 - $18.99 50 $19.00 - $19.99 1,200 $20.00 - $20.99 50 $21.00 - $21.99 50 $22.00 - $22.99 1,200 $23.00 - $23.99 500 $24.00 - $24.99 50 $25.00 - $25.99 2,200 $26.00 or More 2,800 Utilizing the desired wage information as illustrated in the preceding charts, the following conclusions can be drawn concerning the underemployed workers in the Hamilton County area: .. 10% of the underemployed workers will require $10.31 per hour or less to change jobs. .. 25% of the underemployed workers will require $12.46 per hour or less to change jobs. .. 50% of the underemployed workers will require $15.67 per hour or less to change jobs. .. 75% of the underemployed workers will require $22.88 per hour or less to change jobs. .. The upper 25% of the underemployed workers will require wages beginning at $22.89 per hour and extending upward to over $30.00 per hour. These are the most qualified and experienced workers. DESIRED WAGE RATES BY PERCENTILE $10.31 or Less$12.46or Less$15.67or Less$22.88or Less$22.89or More$0$5$10$15$20$25$30$3510thPercentile25thPercentile50thPercentile75thPercentileUpper 25thPercentilePay Rate Per Hour MEDIAN DESIRED PAY RATES BY SKILLS OF UNDEREMPLOYED WORKERS The Hamilton County Area Labor Shed Skills Desired Pay Office Operations $15.80 Warehouse/Materials Handling $14.95 Manufacturing/Assembly/Fabrication $19.01 Medical/Health Sciences $21.92 Maintenance/Installation/Repair $19.39 Technician/Quality Assurance $19.90 Information Technology $16.10 Telecommunications $16.61 Electronics/Engineering $15.17 Software Development/Programming $15.74 CHARACTERISTICS OF UNDEREMPLOYED WORKERS The Hamilton County Area Labor Shed The following charts provide information on various characteristics of the underemployed workers in the labor shed. As these data relate solely to those individuals in the labor shed who are underemployed, they will vary from data representative of the population as a whole. UNDEREMPLOYED WORKERS - GENDER UNDEREMPLOYED WORKERS - AGE25 - 34 Years25% 20 - 24 Years2%55 - 59 Years7% 45 - 54 Years33% 35 - 44 Years33% CHARACTERISTICS OF UNDEREMPLOYED WORKERS LENGTH OF TIME IN CURRENT JOB EDUCATIONHigh School Graduate or GED Only35% Some College, but No DegreeGraduate Degree2% Associate Degree8% Less than High School3% Bachelor Degree22% CHARACTERISTICS OF UNDEREMPLOYED WORKERS UNION PREFERENCEUnion Job6% 21 - 30 Miles14% 11% 11 - 20 Miles15% 0 - 10 Miles50% CURRENT COMMUTE TIMEtesNot Reported2% CHARACTERISTICS OF UNDEREMPLOYED WORKERS CURRENT SECTOR OF EMPLOYMENT * The “Other” category of current employment for the underemployed workers in the Hamilton County area includes those sectors with less than 8% representation. Those sectors are spread across a wide variety of categories, including, among others, customer service and maintenance/installation/repair. Information Technology9% Hospitality/ Food Service14% Education8% Construction/ Trades8% EXPERIENCE AND SKILLS – UNDEREMPLOYED WORKERS The Hamilton County Area Labor Shed The experience and skills categories used in this report are designed to provide accurate workforce data for employers which fall into one or more of the following four broad groups: .. manufacturing, assembly, fabrication or other industrial operations; .. back office, data processing, call centers, information technology, customer service or sales operations; .. distribution or transportation operations; and, .. biotechnology, pharmaceuticals or medical research operations. The experience and skills categories are purposefully similar in order to present the most accurate worker availability for operations in one of those four groups. An employee in the front office of a manufacturing operation will be considered to have “manufacturing” experience but may only have “office” skills. Someone with “manufacturing” experience may not have “manufacturing” skills, but could have “materials handling” skills if they work in shipping or receiving. “Sales and customer service” experience crosses many other experience and skills categories and ideally would be possessed by anyone with customer contact to any degree. The similarities between the skills and experience categories are designed to ensure inclusiveness considering the multitude of tasks and job titles present in most business, government and institutional operations. Additionally, what may appear to some observers as redundancy is, in reality, a proven mechanism to cross-check the validity of responses and to identify the degree to which workplace and professional competencies are truly transferable to new positions and employers. EMPLOYMENT EXPERIENCE OF UNDEREMPLOYED WORKERS The Hamilton County Area Labor Shed 22,800 Underemployed Workers Experience Category* Total Number of Persons Experienced** Percentage Customer Service 17,800 78% Office Operations 14,600 64% Sales 13,900 61% Warehouse/Distribution/Transportation 13,000 57% Manufacturing/Assembly/Fabrication 11,900 52% Maintenance/Installation/Repair 8,400 37% Call Center 5,500 24% Information Technology 4,300 19% Telecommunications 4,100 18% Medical/Health Sciences 3,600 16% Electronics/Engineering 3,000 13% * Individuals polled may have experience in more than one job classification. ** Rounded EMPLOYMENT SKILLS OF UNDEREMPLOYED WORKERS The Hamilton County Area Labor Shed 22,800 Underemployed Workers Skills* Total Number of Persons Skilled** Percentage Office Operations 14,600 64% Warehouse/Materials Handling 12,800 56% Manufacturing/Assembly/Fabrication 11,200 49% Maintenance/Installation/Repair 6,800 30% Information Technology 6,600 29% Technician/Quality Assurance 5,900 26% Telecommunications 5,200 23% Medical/Health Sciences 3,000 13% Electronics/Engineering 1,800 8% Software Development/Programming 1,400 6% * Individuals polled may have skills in more than one job classification. ** Rounded FACTORS AFFECTING JOB DESIRABILITY THE HAMILTON COUNTY AREA LABOR SHED 22,800 UNDEREMPLOYED WORKERS In an effort to identify those factors most important to the Hamilton County area’s underemployed workers relative to consideration of an employer’s desirability, the surveyed individuals were asked to rate the following job factors on a scale of 1 to 5, with 5 being “extremely important” and 1 being “not important”. The table below presents the ratings for each factor. Factor 5 Extremely Important 4 Very Important 3 Important 2 Somewhat Important 1 Not Important Salary 54% 26% 11% 6% 3% Location 42% 23% 26% 6% 3% Insurance Benefits 71% 22% 3% 3% 1% Retirement Benefits 64% 22% 2% 6% 6% Physical Working Environment 21% 38% 34% 5% 2% On-Site Child Care 9% 9% 8% 4% 70% Paid Training Programs 35% 23% 26% 14% 2% Flexible Work Schedule 21% 24% 33% 5% 17% Opportunity for Advancement 52% 38% 5% 3% 2% Financial Stability of the Company 76% 8% 11% 2% 3% Reputation of the Company 42% 31% 12% 9% 6% Size of the Company 6% 13% 32% 17% 32% In the table below, the factors are presented in order by “extremely important”. Bear in mind that the scores should be viewed in relation to each other. In other words, respondents ranked opportunity for advancement as more “extremely important” as a job factor than paid training programs, although such a ranking does not mean that workers in the Hamilton County area consider paid training programs to be unimportant in their evaluation of new job opportunities. Factor Extremely Important Financial Stability of the Company 76% Insurance Benefits 71% Retirement Benefits 64% Salary 54% Opportunity for Advancement 52% Location 42% Reputation of the Company 42% Paid Training Programs 35% Physical Working Environment 21% Flexible Work Schedule 21% On-Site Child Care 9% Size of the Company 6% EMPLOYERS’ VIEWS OF THE THE INDIANAPOLIS AREA TOTAL WORKFORCE In developing a profile of existing workers in the Indianapolis region, The Pathfinders considered such factors as labor availability, productivity, unionization, attitudes, costs, and education. The analysis was based upon surveys conducted with senior management and human resources professionals from companies located in the labor shed. Each of these companies operated in the industrial, commercial, or service sectors. The interview sampling was sufficiently large to make valid workforce judgments. As determined from the employer interviews, the following table reflects the various methods used to recruit workers in the Indianapolis region and the percent of employers utilizing that method. Many use more than one method, therefore, the percentages will not add to 100%. Recruiting Method % of Employers Word of Mouth 78% Newspaper 71% Referrals 71% Internet 70% Walk-Ins 60% Staffing Service 48% Job Fair 40% Sign/Job Board 39% Colleges 32% Recruiters 30% Trade Journals 19% State Agency 17% Other* 6% * Other includes, among others, Radio/TV spots. Employers interviewed were asked to provide subjective views of their workers, in addition to objective and quantitative measurements of labor productivity, availability, attitudes, and costs. Additionally, employers with operations in other regions of the United States were asked to compare their experiences in those other areas with their experiences in the Indianapolis region. 57% of the companies interviewed stated that their local operations were comparable to or better than the operations in other locations in terms of profitability and production. This is indicative not only of good management but also of a productive workforce. Based upon the experience of The Pathfinders in evaluating labor forces in numerous locations, a definite correlation between productivity, absenteeism, tardiness, turnover, and substance abuse appears to exist. That correlation goes beyond the fact that an absent worker is obviously unproductive. Rather, those factors are indicative of an employee’s attitude toward the job. The chart below shows the percent of employers rating for turnover, tardiness and absenteeism in the Indianapolis region. PERCENT OF EMPLOYERS RATING THE INDIANAPOLIS AREA TOTAL WORKFORCE Also included in this correlation is the degree of substance abuse found in the workplace. In the Indianapolis region, 73% of the employers interviewed stated their companies tested for substance abuse, primarily pre-employment. As seen below, substance abuse within the individual companies’ workforces was reported “Low” by 89% of the employers. SUBSTANCE ABUSE RATINGS In consideration of all factors, 72% of the employers in the Indianapolis area rated the productivity of the workforce as “Good” to “Excellent”. Worker reliability received high marks from 67% of the employers. PERCENT OF EMPLOYERS RATING THE INDIANAPOLIS AREA TOTAL WORKFORCE Category Excellent Good Fair Poor Worker Productivity 8% 64% 28% 0% Worker Reliability 10% 57% 26% 7% Worker Attitudes 4% 63% 30% 3% The educational competencies of employees are additional factors used to evaluate an area’s labor force. In the Indianapolis area, 30% of the employers interviewed rated the local public schools as “Good” to “Excellent”, and 59% of the employers rated the local community colleges and technical schools as “Good” to “Excellent”. Employers gave the following ratings to their employees relative to competency in reading, writing, and calculations. PERCENT OF EMPLOYERS RATING THE INDIANAPOLIS AREA TOTAL WORKFORCE Category Excellent Good Fair Poor Reading Competency 9% 49% 37% 5% Writing Competency 6% 34% 45% 15% Calculations Competency 5% 41% 47% 7% A common employer complaint relates to the shortage of skilled and technical workers. The availability of these workers in the Indianapolis region must be viewed from the perspective of comparative availability when other areas of the state and nation are considered. Skilled and technical workers are in great demand and difficult to find in the vast majority of locations. Of the companies in the labor shed interviewed, 47% considered skilled worker availability to be “Good” to “Excellent”, while 46% considered it to be “Fair”. The availability of technical workers in the labor shed was rated “Good” to “Excellent” by 51% of the interviewed companies and “Fair” by 45%. The following table provides a composite portrait of employers’ experiences with and opinions of workers in the Indianapolis region. Taken in context with the data gathered and presented in the workforce survey, a balanced profile of the attributes of individuals available to fill the labor needs of new and expanding firms is provided. PERCENT OF EMPLOYERS RATING THE INDIANAPOLIS AREA TOTAL WORKFORCE Category Excellent Good Fair Poor Availability of Skilled Workers 3% 44% 46% 7% Availability of Unskilled Workers 10% 57% 29% 4% Availability of Professional Workers 10% 61% 28% 1% Availability of Technical Workers 3% 48% 45% 4% Worker Productivity 8% 64% 28% 0% Worker Reliability 10% 57% 26% 7% Worker Attitudes 4% 63% 30% 3% Reading Competency 9% 49% 37% 5% Writing Competency 6% 34% 45% 15% Calculations Competency 5% 41% 47% 7% Teamwork Skills 6% 64% 27% 3% Entry Level Skills 2% 53% 41% 4% COMPARISONS OF EMPLOYERS RATINGS TOTAL WORKFORCE The Indianapolis Area Labor Shed / Locations Previously Surveyed In the course of workforce surveys, local employers are asked to rate their workers on a number of factors. Those factors include: worker productivity; worker reliability and attitudes; reading/writing competency; calculations competency; entry level skills; availability of skilled workers; availability of unskilled workers; availability of technical workers; and, availability of professional workers. Local employers are asked to rate each factor either “Excellent”, “Good”, “Fair”, or “Poor”. The purpose of these interviews and ratings is not only to determine how local employers rate their workers but also to provide a means for comparing local ratings to those of all locations surveyed during the past eighteen months. Such comparison will enable you to assess your employers’ ratings of their workers in contrast to the body of thousands of employer ratings recorded in that period. The following charts present the comparative results for each factor. They compare the percentages of the Indianapolis area employers who rated their workers “Excellent”, “Good”, “Fair”, or “Poor” on each factor with the “Highest” rating of that factor in all areas surveyed in the last eighteen months and the “Median” rating for that factor in all areas surveyed during that time. As a result, the “Highest” and “Median” ratings do not add to 100%. For example, 64% of the Indianapolis area employers rated “Worker Productivity” as “Good”. Of all the locations surveyed during the last eighteen months, the “Median” for that rating is 57%, and the “Highest” rating recorded in the “Good” category is 76%. The same comparison applies for each of the other factors. In these charts, the Indianapolis area is shown as “Indy Area”. WORKER PRODUCTIVITY Excellent Good Fair Poor Highest 46% Highest 76% Highest 33% Highest 11% Indy Area 8% Indy Area 64% Indy Area 28% Indy Area 0% Median 21% Median 57% Median 16% Median 3% WORKER RELIABILITY Excellent Good Fair Poor Highest 43% Highest 76% Highest 44% Highest 14% Indy Area 10% Indy Area 57% Indy Area 26% Indy Area 7% Median 15% Median 52% Median 21% Median 6% WORKER ATTITUDES Excellent Good Fair Poor Highest 30% Highest 77% Highest 40% Highest 19% Indy Area 4% Indy Area 63% Indy Area 30% Indy Area 3% Median 14% Median 61% Median 20% Median 4% WORKER READING COMPETENCY Excellent Good Fair Poor Highest 24% Highest 76% Highest 55% Highest 27% Indy Area 9% Indy Area 49% Indy Area 37% Indy Area 5% Median 8% Median 50% Median 37% Median 7% WORKER WRITING COMPETENCY Excellent Good Fair Poor Highest 16% Highest 74% Highest 60% Highest 30% Indy Area 6% Indy Area 34% Indy Area 45% Indy Area 15% Median 6% Median 52% Median 34% Median 8% WORKER CALCULATIONS COMPETENCY Excellent Good Fair Poor Highest 24% Highest 69% Highest 62% Highest 43% Indy Area 5% Indy Area 41% Indy Area 47% Indy Area 7% Median 7% Median 43% Median 42% Median 14% WORKER TEAMWORK SKILLS Excellent Good Fair Poor Highest 36% Highest 86% Highest 33% Highest 7% Indy Area 6% Indy Area 64% Indy Area 27% Indy Area 3% Median 11% Median 64% Median 20% Median 5% WORKER ENTRY LEVEL SKILLS Excellent Good Fair Poor Highest 18% Highest 80% Highest 57% Highest 31% Indy Area 2% Indy Area 53% Indy Area 41% Indy Area 4% Median 5% Median 51% Median 34% Median 9% AVAILABILITY OF SKILLED WORKERS Excellent Good Fair Poor Highest 24% Highest 60% Highest 71% Highest 47% Indy Area 3% Indy Area 44% Indy Area 46% Indy Area 7% Median 6% Median 36% Median 41% Median 18% AVAILABILITY OF UNSKILLED WORKERS Excellent Good Fair Poor Highest 53% Highest 75% Highest 50% Highest 17% Indy Area 10% Indy Area 57% Indy Area 29% Indy Area 4% Median 27% Median 49% Median 20% Median 5% AVAILABILITY OF PROFESSIONAL WORKERS Excellent Good Fair Poor Highest 19% Highest 64% Highest 63% Highest 54% Indy Area 10% Indy Area 61% Indy Area 28% Indy Area 1% Median 6% Median 33% Median 38% Median 23% AVAILABILITY OF TECHNICAL WORKERS Excellent Good Fair Poor Highest 18% Highest 58% Highest 60% Highest 54% Indy Area 3% Indy Area 48% Indy Area 45% Indy Area 4% Median 4% Median 34% Median 42% Median 20% EMPLOYER OPINIONS ON SKILLS / TRAINING THE INDIANAPOLIS AREA TOTAL WORKFORCE Employers in the Indianapolis region were asked to give their opinions concerning any general or basic skills they felt were lacking in the workforce. The employers responding to this question cited work ethics including initiative, responsibility and professionalism as being, in their opinions, most needed by the area workforce. Closely following work ethics was communications skills, which includes reading and writing. Other skills lacking in the workforce as mentioned by the surveyed employers included math, computer, and problem solving skills. Additionally, employers were asked which jobs were the most difficult to fill and which were the easiest to fill. In the Indianapolis area, the easiest job openings to fill appear to be in the category of office/clerical, followed by customer service and general labor. The hardest appear to be in the technical area, including experienced mechanics and machine operators. Other job openings cited as being difficult to fill include professional workers in the fields of information technology, medicine and sales. Further, local employers were asked about training methods and also about training programs that could be offered by local educational providers that would be beneficial to their operations. The employers responding stated that typically they train their workers in-house, but some do use outside training either on a regular or occasional basis. PERCENTAGE OF EMPLOYERS Yes No Sometimes Use Outside Training 3% 44% 46% The participating employers cited training programs in computer skills would be helpful to them in their operations. Also, courses dealing with technical skills were mentioned as well as basic skills and work ethics. NATIONAL COMPARATIVE OBSERVATIONS As a matter of course in site-selection projects, The Pathfinders evaluates published government workforce statistics. Those statistics, however, depict the entire workforce while only a minority segment of those workers will be considered for or have an interest in new jobs with a company. The characteristics of the select, underemployed workforce group represented in this report may vary significantly from the workforce as a whole as reported in published government data. Accordingly, the information presented in the workforce report for the Hamilton County region covers those members of the workforce who are, by virtue of their underemployment, potential candidates for new jobs. Existing employers, or new employers recruited to the Hamilton County region, typically will not depend heavily on the unemployed to staff a new operation or to fill vacancies in existing operations caused by turnover or expansions. Companies look to the ranks of people who are already employed but are seeking to better themselves. Those individuals in that category who appear to possess the education, skills, and experience to merit a better job are classified as underemployed. The workforce report issued by The Pathfinders documents the availability of underemployed workers as well as the skills, experience, education, and costs of individuals in that hidden workforce in the Hamilton County region. This section of the report provides a comparison of the characteristics of the labor shed’s underemployed workforce with the underemployed workforces in other communities previously surveyed throughout the nation. A prospect company considering the Hamilton County region as a location will judge its workforce on a comparative basis. This section of the report will allow local economic development professionals to view the region’s workforce in relation to others across the country. Also included in this section is a comparison of the Indianapolis Region labor shed with those labor sheds surveyed by The Pathfinders that are one million or more in population. The comparative data for other locations used in the following charts and tables reflect information accumulated over the past eighteen months. Locations Used In Comparative Analysis In the various charts which follow this page, this labor shed is compared with others for the purpose of making the data meaningful. In the charts, figures for this labor shed are shown alongside the “lowest”, “median” and “highest” figures from other workforce surveys conducted by The Pathfinders. The comparisons are with communities and counties representing both larger and smaller and those similar in size to this labor shed. They are also scattered throughout the nation, and a partial listing of locations from which the “low”, “median” and “high” data reported are derived includes: Albany, NY Albuquerque, NM Allegany County, MD Amarillo, TX Anderson, IN Ardmore, OK Ashland, KY Atascadero, CA Atlanta, GA Auburn, AL Baldwin County, AL Bay County, FL Bedford, TX Beeville, TX Binghamton, NY Birmingham, AL Boone County, IN Bowie, TX Bryan/College Station, TX Buffalo, NY Bullitt County, KY Cambridge, MD Campbellsville, KY Cape Girardeau, MO Casper, WY Centralia, IL Champaign County, IL Chattanooga, TN Cheyenne, WY Cleveland County, NC Clinton, SC Conroe, TX Corpus Christi, TX Cullman County, AL Culpeper County, VA Danville, IL Daytona Beach, FL Decatur, AL Eastern Shore, MD Elizabethtown, KY Evansville, IN Fairfield County, OH Fargo, ND Fauquier County, VA Fulton County, KY Grant County, NM Grant County, WA Grays Harbor, WA Greene County, NY Grenada, MS Harrison County, IN Hazleton, PA Henderson, KY Hamilton County, IN Hernando County, FL Hillsdale County, MI Hudson Valley, NY Huntsville, AL Hurst, TX Hutto, TX Independence, MO Indianapolis, IN Jackson, MS Jackson County, MO Jay County, IN Kalamazoo, MI Lake Havasu, AZ Laramie, WY LaSalle, IL Lea County, NM Lebanon, KY Lee’s Summit, MO Lexington, KY Long Island, NY Longview, TX Louisville, KY Madison, SD McDowell County, NC Moberly, MO Mobile, AL Mohawk Valley, NY Monroe County, NY Montgomery, AL Moorhead, MN Muncie, IN New Braunfels, TX New York City, NY Obion County, TN Ontario County, NY Oswego County, NY Owsley County, KY Pampa, TX Panama City, FL Pensacola, FL Polk County, NC Ponca City, OK Prescott Valley, AZ Reno, NV Rutherford County, NC Rutherford County, TN Salem, IL San Marcus, TX Scranton, PA Sequin, TX Seneca County, NY Shasta County, CA Shelby County, AL Shreveport, LA Sikeston, MO Silver City, NM Spartanburg, SC Spokane, WA Springfield, IL Sullivan County, NY Sumter County, SC Syracuse, NY Tallahassee, FL Taylor, TX Terre Haute, IN Tioga County, NY Tipton County, IN Tomball, TX Tupelo, MS Tuscaloosa, AL Ulster County, NY Vermillion County, IN Vineland, NJ Warren County, VA Watertown, SD Wilkes-Barre, PA Williamsport, PA Yankton, SD The workforce report documented the number of underemployed workers in the labor shed who would be available for an employer at various pay rates ranging from $8.00 per hour or below to $30.00 per hour or above and who appear to have the skills, experience, and education to justify the desired pay rates. The table below shows that 25% (lower quartile) of the underemployed workers in the labor shed would take a new job for $12.46 per hour or less. In locations surveyed over the past eighteen months, the lowest desired pay rate in the lower quartile of underemployed workers was $8.98 per hour or less, the median $11.43 or less, and the highest desired pay rate was $18.73 per hour or less. DESIRED WAGES (per hour) – LOWER QUARTILE The Hamilton County Area / Locations Surveyed Over the Past 18 Months Desired Wage Hamilton County Labor Shed Lowest Desired Wage Locations Surveyed Past 18 Months Median Desired Wage Locations Surveyed Past 18 Months Highest Desired Wage Locations Surveyed Past 18 Months $12.46 or Less $8.98 or Less $11.43 or Less $18.73 or Less Those underemployed workers in the upper quartile have more education, better skills, and greater experience. Yet based on current pay rates, they are considered to be underemployed. In the labor shed, the underemployed individuals in the upper 25% desire $22.89 per hour or more. In locations surveyed over the past eighteen months, the lowest desired pay rate in the upper quartile of underemployed workers was $15.87 or more, the median $21.36 or more, and the highest was $39.06 per hour or more. DESIRED WAGES (per hour) – UPPER QUARTILE The Hamilton County Area / Locations Surveyed Over the Past 18 Months Desired Wage Hamilton County Labor Shed Lowest Desired Wage Locations Surveyed Past 18 Months Median Desired Wage Locations Surveyed Past 18 Months Highest Desired Wage Locations Surveyed Past 18 Months $22.89 or More $15.87 or More $21.36 or More $39.06 or More With regard to the Indianapolis Region labor shed, the table below shows that 25% (lower quartile) of underemployed workers would take a new job for $11.50 per hour or less. In other labor sheds with populations of one million of more, surveys conducted indicated the lowest desired pay rate in the lower quartile of underemployed workers was $10.24 per hour or less, the median $12.84 or less, and the highest desired pay rate was $18.73 per hour or less. DESIRED WAGES (per hour) – LOWER QUARTILE Indianapolis Region / Other Regions Surveyed with Populations of One Million or More Desired Wage Indianapolis Region Lowest Desired Wage Other Regions Median Desired Wage Other Regions Highest Desired Wage Other Regions $11.50 or Less $10.24 or Less $12.84 or Less $18.73 or Less In the Indianapolis Region labor shed, the underemployed individuals in the upper 25% desire $20.09 per hour or more. In other labor sheds with populations of one million of more, surveys conducted indicated the lowest desired pay rate in the upper quartile of underemployed workers was $19.24 or more, the median $25.53 or more, and the highest was $39.06 per hour or more. DESIRED WAGES (per hour) – UPPER QUARTILE Indianapolis Region / Other Regions Surveyed with Populations of One Million or More Desired Wage Indianapolis Region Lowest Desired Wage Other Regions Median Desired Wage Other Regions Highest Desired Wage Other Regions $20.09 or More $19.24 or More $25.53 or More $39.06 or More The following charts compare the percentages of underemployed workers in the Hamilton County region who have experience in various fields of employment with the percentages of underemployed workers in locations surveyed over the past eighteen months who have the same type of experience. In the charts, the Hamilton County region is referred to as “labor shed”. Comparisons are also given for the Indianapolis Region labor shed and other labor sheds with populations of one million or more. In these charts, the Indianapolis Region labor shed is referred to as “Indy”. The experience charts are followed by skills charts, which compare the percentages of underemployed workers in the Hamilton County region who possess various types of employment skills with the percentages of underemployed workers in locations surveyed over the past eighteen months who possess the same skills. In the charts, the Hamilton County region is referred to as “labor shed”. Comparisons are also given for the Indianapolis Region labor shed and other labor sheds with populations of one million or more. In these charts, the Indianapolis Region labor shed is referred to as “Indy”. COMPARISON OF EXPERIENCE UNDEREMPLOYED WORKERS The Hamilton County Area / Locations Surveyed Over the Past 18 Months 80 OFFICE WAREHOUSE / DISTRIBUTION / TRANSPORTATION MANUFACTURING / ASSEMBLY / FABRICATION MEDICAL / HEALTH SCIENCES 01020304050LowestMedianHighestPercent of Workers 020406080Percent of WorkersLabor ShedOther Locations COMPARISON OF EXPERIENCE UNDEREMPLOYED WORKERS The Hamilton County Area / Locations Surveyed Over the Past 18 Months 40 Work 20LoMt of INFORMATION TECHNOLOGY CUSTOMER SERVICE MAINTENANCE / INSTALLATION / REPAIR CALL CENTER 0102030405060LowestMedianHighestPercent of WorkersLabor ShedOther Locations Labor ShedOther Locations SUMMARY COMPARISON OF EXPERIENCE UNDEREMPLOYED WORKERS The Hamilton County Area / Locations Surveyed Over the Past 18 Months 0102030OfficeWarehouse/ Distribution/ TransportationManufacturing/ Assembly/ FabricationMedical/ Health SciencesMaintenance/ Installation/ RepairCall CenterInformationTechnologyCustomerServiceLabor ShedLowestMedianHighest COMPARISON OF EXPERIENCE UNDEREMPLOYED WORKERS The Indianapolis Region / Other Regions Surveyed (populations of one million or more) 80 OFFICE WAREHOUSE / DISTRIBUTION / TRANSPORTATION MANUFACTURING / ASSEMBLY / FABRICATION MEDICAL / HEALTH SCIENCES 01020304050LowestMedianHighestPercent of Workers 020406080Percent of WorkersIndyOther Locations COMPARISON OF EXPERIENCE UNDEREMPLOYED WORKERS The Indianapolis Region / Other Regions Surveyed (populations of one million or more) 50 30ork 20LowMt of INFORMATION TECHNOLOGY CUSTOMER SERVICE MAINTENANCE / INSTALLATION / REPAIR CALL CENTER 01020304050LowestMedianHighestPercent of WorkersIndyOther Locations IndyOther Locations SUMMARY COMPARISON OF EXPERIENCE UNDEREMPLOYED WORKERS The Indianapolis Region / Other Regions Surveyed (populations of one million or more) 0102030OfficeWarehouse/ Distribution/ TransportationManufacturing/ Assembly/ FabricationMedical/ Health SciencesMaintenance/ Installation/ RepairCall CenterInformationTechnologyCustomerServiceIndyLowestMedianHighest COMPARISON OF SKILLS UNDEREMPLOYED WORKERS The Hamilton County Area / Locations Surveyed Over the Past 18 Months ork OFFICE WAREHOUSE / MATERIALS HANDLING MANUFACTURING / ASSEMBLY / FABRICATION MEDICAL / HEALTH SCIENCES Labor ShedOther Locations 1020304050Percent of Workers COMPARISON OF SKILLS UNDEREMPLOYED WORKERS The Hamilton County Area / Locations Surveyed Over the Past 18 Months MAINTENANCE / INSTALLATION / REPAIR TECHNICIAN / QUALITY ASSURANCE INFORMATION TECHNOLOGY ELECTRONICS / ENGINEERING Labor ShedOther Locations Labor ShedOther Locations102030405060Percent of Workers SUMMARY COMPARISON OF SKILLS UNDEREMPLOYED WORKERS The Hamilton County Area / Locations Surveyed Over the Past 18 Months 010203040OfficeWarehouse/ MaterialsHandlingManufacturing/ Assembly/ FabricationMedical/ Health SciencesMaintenance/ Installation/ RepairTechnician/ QualityAssuranceInformationTechnologyElectronics/ EngineeringPercenLabor ShedLowestMedianHighest COMPARISON OF SKILLS UNDEREMPLOYED WORKERS The Indianapolis Region / Other Regions Surveyed (populations of one million or more) ork OFFICE WAREHOUSE / MATERIALS HANDLING MANUFACTURING / ASSEMBLY / FABRICATION MEDICAL / HEALTH SCIENCES IndyOther Locations 10203040Percent of Workers COMPARISON OF SKILLS UNDEREMPLOYED WORKERS The Indianapolis Region / Other Regions Surveyed (populations of one million or more) MAINTENANCE / INSTALLATION / REPAIR TECHNICIAN / QUALITY ASSURANCE INFORMATION TECHNOLOGY ELECTRONICS / ENGINEERING IndyOther Locations IndyOther Locations1020304050ercent of Workers SUMMARY COMPARISON OF SKILLS UNDEREMPLOYED WORKERS The Indianapolis Region / Other Regions Surveyed (populations of one million or more) 010203040OfficeWarehouse/ MaterialsHandlingManufacturing/ Assembly/ FabricationMedical/ Health SciencesMaintenance/ Installation/ RepairTechnician/ QualityAssuranceInformationTechnologyElectronics/ EngineeringPercenIndyLowestMedianHighest CLOSING REMARKS The foregoing report represents an assessment of the underemployment that exists in the Hamilton County region. It includes a set of important interlocking measurements of the number of underemployed workers, their cost, skills, experience, education, reliability, productivity, and other related factors. The information allows the economic development professional and the site-selection team to view the area in comparison to other locations. Attention should be given to the “Employers’ Views of the Indianapolis Area Total Workforce” section of this report in which local employers’ views of the characteristics of local workers are compared with employers’ views in other locations where the identical questions have been asked in identical fashion. Similarly, attention should be given to the final section of this report, “National Comparative Observations”, which compares, employing an identical methodology, the costs, experience, and skills of the Hamilton County labor shed’s underemployed workers with those underemployed workers in locations surveyed by The Pathfinders over the past eighteen months. This section also includes comparisons of the Indianapolis region with other regions surveyed that have populations of one million or more. While the number of underemployed workers in the Hamilton County region, including their cost, skills, and experience, is the focus of this report, the data should be interpreted in a comparative perspective just as the corporate site selector will in deciding among competing locations. For Informational Purposes: The Hamilton County Area Civilian Workforce............................................................530,200 Largest Workforce Surveyed by The Pathfinders.......................................................3,452,000 Median Workforce Surveyed by The Pathfinders..........................................................138,400 Smallest Workforce Surveyed by The Pathfinders.............................................................3,350 Number of Locations Surveyed by The Pathfinders..............................................................312 THE PATHFINDERS P.O. Box 702317 Dallas, Texas 75370 Telephone: 972-387-3750 Fax: 214-393-3444 E-Mail: info@thepathfindersus.com Web site: www.thepathfindersus.com