EDSR INFORMATION #3 08-13-2012 INFORMATION
Cameron Macht
irRegional Spotlight:
CENTRAL Planning Region
lift
Try Solutions
Demand for temporary workers is projected to grow by 78 percent in
manufacturing-heavy central Minnesota in the next decade.
Many employers have they are often easier and less The industry also has a small
responded cautiously to expensive to hire and lay off, number of organizations and
the economic recovery by hiring depending on conditions.The services that list employment
temporary workers through employment services industry— vacancies and assist in referring or
employment services.These often considered an economic placing applicants for temporary
temporary staffing companies indicator—has been a major employment.These include
can be a quick and flexible source of recent job growth Minnesota WorkForce Centers
solution for a company's short- in Minnesota and the MinnesotaWorks.net
term needs,taking care of such online job bank,both managed
time-consuming tasks as posting The employment services by DEED.
job announcements,screening subsector (NAICS Code
applicants,interviewing 5613) primarily consists of In the third quarter of last
candidates and placing workers. establishments that supply year,the 13-county Central
workers to client businesses for Minnesota Planning Region had
When businesses see increased limited periods of employment. 57 employment services firms
4, demand for their products and These establishments do not that provided workers for 2,205
services,many initially ramp up directly supervise the employees temporary jobs,a significant jump
with temporary workers because at client work sites.' in temporary jobs in the region
from two years earlier.Though
the industry lost some firms,these
-6,-(-_ T employment services agencies
°'e ` 1 f increased temp payrolls by 54
r `J M
`'• " - - -- r percent from the third quarter of
it— �\ w ;; II 2009 to the third quarter of 2011
Ilriiii Ft-j A. ' " s, , __..4., '14 ,0 V ,,, - as the region's economy expanded
(see Figure 1).
. �I I IA
– P ® r • 11 , r ''‘ It's Only Temporary
- 7"tao ' _ i 't '„ While temp workers help
I ' o 0 employers respond to changing
1 �, ki conditions,they can face a lot of
r � ___uncertainty Jobs can last anywhere
12 minnesota economic TRENDS June 2012 TEMPORARY SOLUTIONS
FIGURE 10
Wage Distribution,Year-Round Wage Earners,
Inflation Adjusted(2011 dollars)
16%
14%
12%
£ 10%
E 8d a j lijjj„,
•
-4%
-6%
5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%
Wage Percentiles
•1995-1999 2000-2005 •2006.2011
Source:Minnesota unemployment insurance wage records
Unlike those at the top of the board,but especially for those the past six years.In fact,the top
wage distribution,after modest below the median wage level 5 percent of wage earners actually
wage growth in 2010,the bottom (below the 50th percentile). increased their wages at a rate
20th and the 50th percentile of Then,from 2000 to 2005,real higher than any time during the
wage earners experienced another wages decreased somewhat for previous half-decade.0
relative decline in wages in 2011. the lowest wage earners,and
Overall,both real and relative increased at a much slower pace
wages for the 20th and 50th per- than the previous half-decade Contributors to this article include
Gentile of wage earners decreased for those at the 30th percentile Jerry Brown, Oriane Casale,
during the past five years. and above.Since 2006,wages Amy Gehring,Amanda Rohrer,
declined even more sharply for a Dave Senf,Rachel Vilsack and
Just how difficult the recession broader group,the entire bottom Steve Hine.
and recovery has been for lower two-thirds of wage earners.Only
wage earners is shown in Figure those in the 70th percentile and
10.The period from 1995 to above (over $56,275 per year)
1999 saw wages rise across the experienced wage growth during
'Previous recessions occurred in 2001 and 1990-1991.
'The 1980 recession was excluded because it overlaps with the 1981 recession,making comparison difficult.
'The Conference Board,www.conference-board.org.
'Average annual self-employment is from the Local Area Unemployment Statistics program,Minnesota Department of Employment and Economic Development.
STATE OF THE RECOVERY minnesota economic TRENDS june 2012
Cameron Macht
employment services will be one meaning that the 2019 projected Current postings on
of the fastest-growing industry employment number of 2,400 MinnesotaWorks.net for skilled
subsectors in central Minnesota nearly has been reached already, production jobs,such as metal
over the decade,with demand for as shown in Figure 1. inert gas welders,computer
temporary employees projected numerical control machine
to grow by 78.3 percent(see Eight of the top 10 occupations tool operators and high-level
Table 2). in demand in the employment engineers,reinforce that point
services subsector can be gained on the regional level.For a job
The growth is unlikely to with on-the-job training,with seeker with advanced skills who
be steady,however,ebbing just two requiring a college has struggled to get back into
and flowing with the overall degree.But according to an in- the labor market during the
economy.As noted,temporary depth report from the Bureau recovery,temporary employment
workers are often the first to be of Labor Statistics on the might be the best opportunity
laid off when businesses need expanding role of temporary to earn money,update skills,
to cut back,or they can become help services,the demand for gain experience and get a foot in
permanent workers in a different temporary employees has shifted the door at a growing employer.
industry once employers away from low-skill,low-paying As businesses become more
start hiring.For example,the jobs in recent years to more high- confident,those doors may open
region's estimated temporary skill,high-paying positions.' to a permanent job.0
employment number from 2009
came prior to the recent recovery,
TABLE 2
Occupations in Demand,Employment Services
Central Minnesota Planning Region
Percent 2009 2019 Median
Industry Estimated Projected 2009-2019 Total Hourly Most Common Education anc
Occupational Title Jobs Employment Employment Change Openings Wages Training Requirements
Employment Services Industry total 100.00% 1,346 2,400 78.30% 1,054
Laborers and Freight and Material Movers 11.20% 2,755 2,731 -0.90% 890 $12.19 Short-term on-the-job training
Office Clerks,General 5.60% 6,096 7,074 16.00% 1,808 $13.56 Short-term on-the-job training
Team Assemblers 4.90% 2,854 2,802 -1.80% 640 $15.26 Short-term on-the-job training
Packers and Packagers,Hand 4.20% 2,044 2,048 0.20% 344 $9.52 Short-term on-the-job training
Helpers-Production Workers 3.70% 930 957 2.90% 187 $12.33 Short-term on-the-job training
Customer Service Representatives 3.10% 2,284 2,638 15.50% 1,074 $15.50 Moderate on-the-job training;_
Construction Laborers 2.80% 1,096 1,345 22,70% 319 $19.95 Moderate on-the-job training
Human Resources and Training Specialists 2.70% 428 500 16.80% 182 $23.69 Bachelor's degree
Registered Nurses 2.60% 4,841 6,257 29.30% 2,266 $34.69 Associate degree
Secretaries and Admin.Assistants 2.10% 1,099 1,138 3.50% 189 $17.58 Moderate on-the-job trailing
Source:Bureau of Labor Statistics,DEED 2009-2019 Employment Outlook tool,DEED Occupational Employment and Wage statistics
"5613 Employment Services,"U.S.Census Bureau.www,census.gov/epcd/naics02/def/NDEF561.HTMSN5613.
'Luo,Tian;Mann,Amar;and Holden,Richard."The expanding role of temporary help services from 1990 to 2008"www.bls.gov/opub/mlr/2010/08/artlfull.pdf.
14 minnesota economic TRENDS June 2012 TEMPORARY SOLITIONS
Cameron Macht
FIGURE 1
Central Minnesota Employment Services Industry
from a couple hours to a couple 2,500 100
ill
years,with no guarantees of Number of Establishments
permanent employment.Still, Number of Covered Jobs
for people who need jobs,these o 2,000 80
temporary positions can be a a .
first step toward permanent o 1,500
60 •
employment.The temporary o
setting also gives employers a
Mill 11111
chance to test workers before Z 1,000 40 '
perhaps hiring them as regular
employees. 500
120
Consequently,temporary
workers tend to be younger than 0 U
the overall workforce.According
01 Q2 Q3 Q4 01 Q2 Q3 Q4 01 Q2 Q3
2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
to data from DEED's Local
Employment Dynamics Source:DEED Quarterly Census of Employment and Wages program
program,about one in five temp
workers is 24 years or younger, TABLE 1
and more than one-fourth are
25 to 34 years old (see Table 1). Quarterly Workforce Indicators,2010-2011
Central Minnesota State of Minnesota
Males are much more likely Workforce Employment Total,All Employment Total,All
than females to work in Category Services Industries Services Industries
temporary employment services,
accounting for nearly 60 percent 14-24 years 19.20% 16.90% 20.20% 14.20%
of the industry's temporary 25-34 years 27.00% 21.20% 27.60% 22.50%
workforce in central Minnesota. 35-44 years 18.10% 19.80% 19.80% 20.60%
That is likely due to the
region's higher concentration 45-54 years 19.40% 23.20% 18.20% 23.80%
of manufacturing employment, 55-64 years 11.10% 14.70% 10.10% 15.20%
which is often the heaviest user 65 years&over 4.60% 4.10% 4.00% 3.80%
of temporary help services.
Male 58.10% 46.80% 55.80% 48.70%
At the end of the first quarter Female 41.90% 53.20% 44.20% 51.30%
of 2012,about 1,250 jobs Source:Local Employment Dynamics Quarterly Workforce Indicators
', in the Central Minnesota
Planning Region were posted .
alp
jobs in the region.What's more, Planning for the Future
on MinnesotaWorks.net.Of three-fourths of those temporary
those,about 200 jobs-or job postings were for the The recent growth in
15.5 percent-were listed by manufacturing industry,ranging employment services is expected
temporary staffing agencies, to be a long-term trend.
from general labor and assembly
even though temp jobs account According to employment �i
to welding and industrial
For less than 1 percent of total projections by DEED,
engineering. F
P;,Z
TEMP-MARY SOLUTIONS minnesota economic TRENDS june 2012