aerospace and defense sector -...

The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency

Department of Employment, Training & Rehabilitation

Bill Anderson, Chief Economist

Christopher Robison, Supervising Economist

Prepared by the Research and Analysis Bureau

Aerospace and Defense Sector


Despite the Recent Uptick in the Jobless Rate; Underlying Trends Still Remain Positive NV vs. the U.S. unemployment rate (SA)

0%

2%

4%

6%

8%

10%

12%

14%

16%

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Nevada U.S.

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Including Discouraged Workers Adds 0.4 Point to the “Official” Rate Alternative Measures Of Labor Underutilization

Measure Underutilization Concept Level

Official Ratejobless persons available to take a job who have actively sought work in the past four weeks

6.3%

U-1 jobless 15 weeks or longer 2.7%

U-2 job losers and persons losing a temporary job 3.5%

U-3 similar to official rate 6.7%

U-4 U-3 plus discouraged workers 7.1%

U-5 U-4 plus others marginally attached to the labor force 7.9%

U-6 U-5 plus those employed part-time for economic reasons 13.1%

Offical Rate: annual average of 2015:IIIQ through 2016:IIQ

Alternative Measures of Labor Underutilization(Annual Average - 2015:IIIQ through 2016:IIQ)

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Initial Claims at Lowest Level in a Decade initial claims for unemployment insurance

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Claims 12-Month Moving Average

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Jobs Continue to Advance; Since 2011, Monthly Gains Recorded in all but 8 Months nonfarm jobs in Nevada (SA)

1,000,000

1,050,000

1,100,000

1,150,000

1,200,000

1,250,000

1,300,000

1,350,000

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16

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Job Growth Holding Relatively Steady at an Annualized Rate of 30K-35K job growth (SA; year-over-year)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

A S O N D J F M A M J J A S O N D J F M A M J J

'14 '15 '16

percent change

jobs

Jobs Pct. Change

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Job Gains>Losses in 21 Straight Quarters; 2015:IVQ Net Gain Strongest in a Decade private sector gross job gains vs. gross job losses (SA)

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

100,000

120,000

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

net jobs gross job gains gross job losses

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Opening Gains>Closing Losses Last 17 Quarters; Net Gain=3,400 in 2015:IVQ gross job gains vs. gross job losses in opening & closing establishments (SA)

-5,000

0

5,000

10,000

15,000

20,000

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

net jobs gross job gains (openings) gross job losses (closings)

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There are a Variety of STEM-Related Skills in Demand Based Upon On-Line Job Ads STEM skills in demand over past 12 months

0 500 1,000 1,500 2,000 2,500

Software Development

Technical Support

Repair

Supervisory Skills

Accounting

Customer Service

Scheduling

Project Management

Budgeting

Structured Query Language (SQL)

Job Postings

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Nevada Job Growth Exceeds Nation in 48 Straight Months; 2.7% vs. 1.7% in June job growth (year-over-year)

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Nevada U.S.

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44% of Nevada’s Workforce is at Least 45 Years Old; 39% a Decade Ago 2015:IIIQ Nevada workforce by age

14-24 Years Old12%

25-3422%

35-4422%

45-5422%

55+22%

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Nevada Wages at $875/Week in 2016:IQ; A Record-High for the Qtr.; Up 1.2% Over 2015 Nevada average weekly wages

-6%

-4%

-2%

0%

2%

4%

6%

8%

$600

$650

$700

$750

$800

$850

$900

$950

$1,000

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Percentage Change

Aver

age

Wee

kly W

age

Percentage Change Average Weekly Wage

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Personal Income Growth Hovering in the Mid-Single Digits in the Silver State Nevada personal income

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Percentage ChangePers

onal

Inco

me

Percentage Change Personal Income

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Aerospace and Defense Sector

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Employment Projection 16,200 jobs in 2016; 13,400 jobs projected by 2024

Source: Economic Modeling Specialists Intl. (EMSI)

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Aerospace and Defense Industries 2016 employment


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Regional Competitive Advantage aerospace and defense industries


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Industries vs. Occupations

Although the sector councils are designed to address employment needs in specific industries, this work can only be accomplished by examining and training individuals at the occupational level.

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Aerospace and Defense Occupations 2016 employment and projected growth by 2024


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Regional Competitive Advantage aerospace and defense occupations


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Largest Occupations by Ad Volume aerospace and defense online job postings

Source: Labor Insight/Burning Glass Technologies

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2016 Average Hourly Wages


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O-NET Occupational Skills and Attributes Reports

Source: Occupational Information Network (O-NET)

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Tools Skills KnowledgeAnemometers Critical Thinking MechanicalCompasses Reading Comprehension Building and ConstructionDesktop computers Active Listening DesignDigital cameras Complex Problem Solving Public Safety and SecurityDistance meters Mathematics Engineering and Technology

Technologies Abilities Work ActivitiesAnalytical or scientific software Deductive Reasoning Making Decisions and Solving ProblemsCalendar and scheduling software Inductive Reasoning Getting InformationComputer aided design CAD software Information ordering Communicating with Supervisors, Peers, or SubordinatesData base user interface and query software Oral Comprehension Interacting With ComputersDevelopment environment software Oral Expression Evaluating Information to Determine Compliance with Standards

O*NET Occupation Profile - Civil Engineers


Natural Resources Occupations skills specified in online job ads

Source: Labor Insight/Burning Glass Technologies

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Baseline Skills Specialized Skills Data Software SkillsCommunication Skills Scheduling Microsoft OfficeWriting Project Management Microsoft ExcelPlanning Budgeting Microsoft PowerpointMicrosoft Office Repair Microsoft WordResearch Inspection LINUXMicrosoft Excel Supervisory Skills AutoCADComputer Skills Customer Service Microsoft WindowsOrganizational Skills Staff Management Word ProcessingQuality Assurance and Control Civil Engineering Computer Aided Drafting/Design (CAD)Project Management Technical Support Microsoft Access


Aligning Economic and Workforce Development

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A consensus ranking of high demand occupations that align with economic development priorities specific to natural resources


Location Quotients (LQs) are used to identify potential sources of competitive advantage, or areas of regional specialization. LQs measure the relative concentration of a given industry or occupation in a state relative to the nation.

LQs are calculated by dividing the proportion of the state’s economic activity in an industry or in an occupation, by the proportion of the nation’s economic activity in that same industry or occupation.

LQs of 1.2 or higher indicate some degree of specialization. LQs of 0.8 to 1.2 indicate normal distribution of industry within the region. LQs of less than 0.8 may indicate that the region may be deficient.

Limitations of on-line job postings: Jobs requiring low skills/low wages tend to use alternative methods of attracting job seekers

and are under represented in online ads. Internal company hiring and union hiring are often not captured by online ads. Online job posting volume does not necessarily correlate with the level of job openings or hiring. The percentage of job postings that specify a certification is small limiting how representative

the data is. Algorithmic ad parsing can lead to miscoding occupations and skills due to similarities between

abbreviations and other letter combinations, etc.

Clarifications and Limitations

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In online job postings Burning Glass reports licenses and certifications together. The mean salary data in job postings reflects the salary listed by employers in job postings,

adjusted to be equivalent to a full-time, annual wage. If a salary range is specified, the median of the range used.

High ad volume often occurs for occupations/industries that are having difficulty finding qualified candidates, high turnover positions/recurring openings, or when companies are building large candidate pools.

Online job postings should only be used with caution when developing/analyzing time series trends due to the constant changes in the rate of online advertising usage and in the methods used for collecting the data.

Clarifications and Limitations

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For Additional Information, Please Contact

Department of Employment, Training and Rehabilitation Research and Analysis Bureau

Bill Anderson

Chief Economist [email protected]

Christopher Robison

Supervising Economist [email protected]

(775) 684-0450 http://www.nevadaworkforce.com

follow us on Twitter @nvlabormarket

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mailto:[email protected]




http://www.nevadaworkforce.com/

aerospace and defense sector -...

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