Laborshed data help communities, workforces grow

Laborshed studies, like the most recent one for the Quad Cities region, are not just a great tool for communities seeking to grow their population and tax bases. The Iowa Workforce Development (IWD) analysts who produce them say the data they collect are important resources for governments, developers and employers seeking to grow their workforce. […]

Laborshed studies, like the most recent one for the Quad Cities region, are not just a great tool for communities seeking to grow their population and tax bases. The Iowa Workforce Development (IWD) analysts who produce them say the data they collect are important resources for governments, developers and employers seeking to grow their workforce. “​Laborshed studies are often used by economic development organizations, local governments, and chambers to demonstrate both the quality and quantity of available labor in and around a specific employment center,” says Jesse Dougherty, IWD’s public information officer.

The Quad Cities Chamber is well aware of the rich mine of data available in the latest report on the Quad Cities. “Our region’s labor force is over 580,000 strong, and many workers are seeking new opportunities,” said Julie Forsythe, the chamber’s senior vice president, business and economic growth. “The laborshed information is helpful when we’re out promoting the region to show a snapshot in time of the available workforce to business attraction prospects. We have a skilled, trained and educated workforce.” According to Mr. Dougherty, a laborshed study “documents the commuting pattern for that city and defines the true geographic footprint an employment center has and how far away the workforce comes from to work there. It informs employers where to advertise open positions to effectively use their advertising dollars.” “It shows how many residents have current or former experience in specific job titles, as well as their education level,” he added. “It identifies otherwise difficult-to-discover pockets of labor, including those currently employed who would be willing to change jobs and homemakers who are willing to return to the workforce if given the right opportunity.” The size of the Quad Cities region’s well-educated and well-trained labor pool was set at 581,296 by the IWD and Iowa Economic Development Authority’s 2021 laborshed study. The latest update of the study, which is conducted every two years, was based on data collected between 2020 and 2021. The Quad Cities Regional Laborshed Area Analysis can be found at www.iowalmi.gov/laborshed-studies. The analysis is based on aggregated data from the laborshed studies for Clinton and Muscatine counties in Iowa, and the Iowa/Illinois Quad Cities. According to the executive summary, the study geographically defines which communities contribute to the Quad Cities’ workforce, regardless of state or political boundaries. For example, the IWD map indicates that the Quad Cities region’s geographic reach extends from Galena, Illinois south to Burlington, Iowa, and from Kalona, Iowa, east to Walnut, Illinois. According to the analysis of the labor patterns in the Quad Cities Region, the average commute time for regional workers is 16 minutes or about 11 miles one-way. Additional workforce statistics include: 

• 33% of those who have a job now are likely to accept a new opportunity, and 28% are actively seeking employment.
• Almost 80% of the labor force has an education beyond high school and they are willing to commute 34 minutes one-way to work. 

For the non-employed, data shows:

• 70% of those without a job are likely to accept employment and 60% are actively seeking work.
• More than 70% of the unemployed have an education beyond high school and they are willing to commute 31 minutes one-way to work.  
• 53% of homemakers and 28% of retirees are likely to accept employment.

The region’s top five industries for employed workers are:  

• Manufacturing: 17% or 97,350 workers. 
• Wholesale and retail trade: 15% or 87,042. 
• Health care and social services: 14% or 79,598. 
• Education: 9% or 52,684.
• Professional services: 8% or 45,239.  

The top current benefits that those employed enjoy are: 

• Health/medical insurance.
• Dental coverage.
• Pension/Retirement/401(k).
• Vision coverage. 
• Paid holidays. 

According to IWD, laborshed data is unique to other traditionally available labor market information for several reasons: “It is supply-side data. It is specific to the workforce characteristics of labor available in a defined employment center,” the agency said. “It isn’t based on employer needs or current employment level, but rather, documented labor availability.” All communities identified as being significant contributors to an employment center’s workforce are surveyed, which provides a more accurate estimate of potential labor.  Additional survey questions and answers allow economic developers, community leaders and employers to identify pockets of labor that are not easily identified elsewhere such as homemakers likely to re-enter the workforce, among others. For example, according to IWD, the number of homemakers who reported they are likely to accept employment has increased. The report also estimates 278,000 individuals in the QC region are very likely to change or accept employment.  Is the high number of employees who are looking to change jobs good news for employers looking for new workers? And what should the data suggest about how to go after them?  Those were among the questions the Quad Cities Regional Business Journal submitted to the IWD regarding the QC Laborshed Study. The responses shared here are from the agency’s Labor Market Information Division, which produces the laborshed studies, the IWD’s Mr. Dougherty said. “A currently employed individual who leaves a job for another job does not positively impact the total number of available job openings (assuming the job they left will need to be filled),” Mr. Dougherty reports. “It is a net zero. However, when employers are in need of employees, those who are employed and looking to change can positively impact the specific employer who is able to hire them. “We have data we can pull of these individuals that would tell us their job title, education level, the communities they reside in, where they look for job opportunities (which internet sites, etc.), the level of wages they expect from a job offer, benefits packages, etc.,” he said. “This data can be leveraged by employers to target the type of person they are looking for to fill their open positions.” Also, according to the laborshed study, 79.5% of those currently employed have an education beyond high school. Do those numbers make the Quad Cities’ region more desirable for employers? “​Among all of the employed respondents, the percentage with education beyond high school was 80%; among all unemployed who are also likely to accept a job offer, the percentage with an education beyond high school was 69.7%,” Mr. Dougherty said. “Neither of these percentages are unusually high, when compared to other areas of the state. However, they are very good percentages.” He added, however, “You might look at the differences between these two groups and hypothesize that higher education positively impacts employment status. It’s possible that this is true. As far as making the QC area desirable, I certainly don’t believe it would make the area undesirable. Of course, how much this impacts an employer’s outlook I’m sure has a lot to do with what the educational requirements of their openings are.” Is there anything in the survey results that might help recent high school and college graduates who are looking for work? ​ “This is a supply-side study/survey. Therefore, it tells you more about what the workforce characteristics of available labor are more than what opportunities are available,” Mr. Doughetry reports. “There are many demand-side sources of data that could better inform individuals about opportunities. However, these individuals could look at this data and see what respondents are saying they are being paid for certain occupational titles at different levels of experience and education levels.”