Industry, Employment, & Skills A Workforce Analysis for Santa Barbara County Conducted for the Santa Barbara County Workforce Investment Board

Transcription

1 Industry, Employment, & Skills A Workforce Analysis for Santa Barbara County Conducted for the August JEFFERSON STREET, SUITE 13, CARSLBAD CA MILL POND DRIVE, WRENTHAM, MA T (760) F (888) bwresearch.com twitter.com/bw-research facebook.com/bwresearch

2 TABLE OF CONTENTS List of Figures... 3 List of Tables... 4 Executive Summary... 5 Introduction... 5 Key Findings... 6 Conclusions... 7 Challenges in Santa Barbara County... 7 Opportunities in Santa Barbara County... 7 Next Steps & Considerations in Santa Barbara County... 8 Part 1: Economic & Workforce Landscape... 9 Employment Activity... 9 Occupational Tier Assessment Countywide Economic IndiCators Part 2: Santa Barbara County s Industry Clusters Why Industry Clusters An Introduction to Santa Barbara County s Industry Clusters Healthcare Energy & Environment Building & Design Aerospace & Defense Life Sciences Information & Communication Technologies Business Services Agriculture, Food, & Beverage Tourism and Hospitality Appendix A: Methodology and Data Sources Primary Research Survey Design Sampling Method Data Collection A Note about Margin of Error and Analysis of Sub-Groups Secondary Research Appendix B: Industry Cluster Definitions Appendix C: Employer Survey Toplines

3 LIST OF FIGURES Figure 1. Santa Barbara County Employment, Figure 2. Historic Unemployment Rates, Figure 3. Regional Unemployment Breakdown, April Figure 4. Central Coast Employment, Figure 5. US, California, and Santa Barbara County Employment, Figure 6: Key Economic Indicators for Santa Barbara County, Figure 7. Santa Barbara County Industry Cluster Employment Growth, Figure 8. Healthcare Cluster Employment, Figure 9. Energy and Environment Employment, Figure 10. Building and Design Employment, Figure 11. Aerospace and Defense Employment, Figure 12. Life Sciences Employment Figure 13. Information and Communication Technologies Employment, Figure 14. Business Service Employment, Figure 15. Agriculture, Food, and Beverage Employment, Figure 16. Tourism and Hospitality and Hospitality Employment,

4 LIST OF TABLES Table 1. Regional Unemployment Breakdown, April Table 2. Santa Barbara County Occupational Tier Distribution, Table 3. Decline in Tier 2 Employment, Table 4. California Occupational Tier Distribution, Table 5. United States Occupational Tier Distribution, Table 6. Santa Barbara County Industry Cluster Employment, Table 7. Santa Barbara County's Industry Cluster Mean Hourly Wage, Table 8. Healthcare Occupational Tier Distribution, Table 9. Healthcare Occupations Wage and Education Table 10. Energy and Environment Occupational Tier Distribution, Table 11. Energy and Environment Occupations Wage and Education Table 12. Building and Design Occupational Tier Distribution, Table 13. Building and Design Occupations Wage and Education Table 14. Aerospace and Defense Occupational Tier Distribution, Table 15. Aerospace and Defense Occupations Wage and Education Table 16. Life Sciences Occupational Tier Distribution, Table 17. Life Sciences Occupations Wage and Education Table 18. Information and Communication Technologies Occupational Tier Distribution, Table 19. Information and Communication Technologies Occupations Wage and Education.. 38 Table 20. Business Services Occupational Tier Distribution, Table 21. Business Services Occupations Wage and Education Table 22. Agriculture, Food, and Beverage Occupational Tier Distribution, Table 23. Agriculture, Food, and Beverage Occupations Wage and Education Table 24. Tourism and Hospitality and Hospitality Occupational Tier Distribution, Table 25. Tourism and Hospitality and Hospitality Occupations Wage and Education Table 26. Overview of Survey Methodology

5 EXECUTIVE SUMMARY INTRODUCTION Santa Barbara County s Workforce Investment Board (SBWIB) partnered with BW Research to examine the region s changing economic and workforce landscape. Findings illustrate regional employment dynamics, including industry growth and occupational distribution. In previous studies, BW Research highlighted key industries clusters, but as markets emerge and decline, the research evaluates new opportunities and challenges for workforce development in Santa Barbara County. Some of the questions that drove this research include: What is Santa Barbara s current industry and occupational profile? What industry clusters should Santa Barbara County consider for workforce development? How can the Workforce Investment Board seize current and projected opportunities for regional workforce development? How can SBWIB best support regional employers who are looking for talent? Data for this report was mainly extrapolated from the Bureau of Labor Statistics, California Employment Development Department, and U.S. Census Bureau. Primary data was collected through BW Research and provides 201 qualitative employer surveys to better understand the industry landscape in Santa Barbara County. The report is organized into two parts: Part 1 illustrates the current economy and labor market landscape for Santa Barbara County. Part 2 describes the County s key industry clusters, detailing employment growth, occupational distribution, wages, and general education and skill requirements. Study Authorship Josh Williams and Sarah Lehmann of BW Research Partnership authored the report. Project oversight was provided by Raymond L. McDonald and Jessica McLernon from the. Santa Barbara Workforce Investment Board would like to thank the following individuals and organizations for their wisdom, resources, and support in completing this study: Mona Baker, Santa Barbara County Department of Social Services Jack Friedlander, Santa Barbara City College Kristen Miller, Goleta Valley Chamber of Commerce Melissa Moreno, Santa Barbara City College Glenn Morris, Santa Maria Chamber of Commerce Ardis Neilson, Allan Hancock College Ken Oplinger, The Chamber of Commerce of the Santa Barbara Region Grace Schoch-Manzano, California Employment Development Department Zoe Taylor, Santa Barbara County Economic Vitality Task Force Kevin Walthers, Allan Hancock College 5

6 KEY FINDINGS In 2010, Santa Barbara County s unemployment rate reached a high of 9.7%. This is comparatively lower than Central Coast neighbors San Luis Obispo (10%) and Monterey (12.7%), as well as the statewide unemployment rate of 12.2%. 1 The region s labor market has since recovered nearly 9% of jobs, bringing its total workforce to 214,100 employees. As shifting industry and employer demand impact job opportunity and workforce development strategies, this research provides a new perspective on the County s industry clusters. Santa Barbara County s nine key industry clusters account for 57% of the county s civilian employment. Based on current and/or potential growth, employment concentration, job quality, and career pathway opportunities, the following industry clusters 2 are recommended in Santa Barbara for countywide workforce development consideration: 1. Aerospace and Defense 2. Agriculture, Food, and Beverage 3 3. Building and Design 4. Business Services 5. Energy and Environment 6. Healthcare 7. Information and Communication Technologies 8. Life Sciences 9. Tourism and Hospitality These nine industry clusters offer a broad range of employment profiles. The clusters are not meant to represent the totality of employment in Santa Barbara County, but instead offer a framework to understand employment opportunities in the County, engage employers, and develop career pathways and training opportunities that are consistent with the needs of Santa 1 California Employment Development Department 2 For a comprehensive definition and analysis of Santa Barbara s industry clusters, please refer to page Data for this industry cluster is often suppressed and variable due to seasonal fluctuations. Employment estimates for Agriculture, Food, and Beverage are derived from the most available data in the Bureau of Labor Statistics Quarterly Census of Employment and Wages. 6

7 Barbara County s businesses. These clusters also offer the Santa Barbara Workforce Investment Board potential industries and occupations that could be the focus of targeted workforce development strategies and investments. CONCLUSIONS Based on the research findings, BW Research offers the following conclusions: Challenges in Santa Barbara County Santa Barbara County faces challenges in three key areas: job quality, regional geographic differences, and business growth. 1. Santa Barbara County has low unemployment, but growth is too often occurring in low-wage, low-skill (Tier 3) occupations. The general trend outlines a steady increase in occupations that support the County s average living wage ($12.62/hour) 4, but job growth in Tier 1 and Tier 2 occupations have been insufficient to outpace Tier 3 job growth. While Santa Barbara County continues to see job growth and low unemployment, this is largely due to high growth in low-wage, low-skill employment opportunities. 2. Northern and Central Santa Barbara County face higher unemployment and lower wage job opportunities than the South. While the overall unemployment rate in Northern and Central Santa Barbara County has continued to decline since 2010, it remains higher than Southern Santa Barbara County. The region also has a smaller portion of Tier 1 (high-wage, high-skill) and Tier 2 (medium-wage, medium-skill) occupational employment. 3. New and emerging companies and technologies are facing challenges to grow within the County boundaries. Businesses in Santa Barbara County continue to identify inadequate workforce housing, insufficient access to larger facilities for expansion, and difficulty finding qualified employees as challenges to their growth. Opportunities in Santa Barbara County Santa Barbara County offers resources and strengths including dynamic industry clusters, concentrated research institutions, technological innovation, and productivity gains. 1. Santa Barbara County s labor market has supported steady growth since the great recession, that began in The county is home to nine key industry clusters; highgrowth clusters include Energy and Environment, Tourism and Hospitality, Agriculture, Food, and Beverage, Aerospace and Defense, Life Sciences, and Healthcare. These industries support 39% of the County s workforce and have created jobs at or above overall countywide employment growth. 4 MIT Living Wage Calculator 7

8 2. The County has strong research institutions and university resources that support local and regional knowledge-driven industries. In 2013, just over 9% of the County s patents were owned by the University of California. The County has steadily increased the number of patents produced annually, from 171 in 2000 to 3,224 in Innovation and productivity are growing faster than employment and job quality. Patent activity is nearly 1.5 times greater in 2013 than in The top ten patent categories belong to the Information and Communication Technologies (ICT) and Healthcare industries. These include computer, electronic, and communications equipment manufacturing, as well as pharmaceutical, medical equipment and supplies manufacturing. Between 2010 and 2013, countywide GDP rose by 17% with productivity gains of about 11%. 5 Next Steps & Considerations in Santa Barbara County The following next steps and considerations have been offered to support workforce development strategies in Santa Barbara County: 1. Prioritize industry clusters and segment by geographic relevance. This report provides a baseline analysis of nine industry clusters that can be considered for workforce development strategies in Santa Barbara County. However, each of these clusters are not relevant for every community; training and educational resources must be tailored to local needs. 2. Identify employer needs and opportunities to overcome gaps between workforce supply and employer talent demand. The industry clusters that have been identified and described in this study are diverse, with different workforce and resource needs. Workforce development strategies to support each of these clusters should be tailored to the cluster-specific needs of employers within each area of the County, along with an understanding of the needs and skills of local students and job-seekers. 3. Develop career pathway tools and resources to assist current workers and jobseekers. Career pathways remain particularly important and relevant for Santa Barbara County s Workforce Development decision-makers as strategies are considered to support current workers transitioning out of low-wage positions. 4. Provide career and technical training for skills relevant to Tier 1 & 2 occupations in the region s highest-growth industry clusters. Given continuous growth in Tier 3 occupations, the County s Workforce Development decision makers may consider increased focus in developing skillsets that place jobseekers into sustainable wage occupations in one of the region s high-growth industries. 5 Productivity is measured as the ratio of GDP to total employment. 8

9 PART 1: ECONOMIC & WORKFORCE LANDSCAPE EMPLOYMENT ACTIVITY Santa Barbara County s labor market has sustained continuous growth following the 2008 to 2010 economic recession. The county lost 5% of jobs from 2005 to 2010, but saw steady employment growth each subsequent year. As of May 2015, county employment totals to 214,100 workers, an 8.7% growth since The county s unemployment rate went down by 5% since 2010; overall county unemployment now rests at 4.6%, but there is some regional fluctuation. In both north and central Santa Barbara County, unemployment is greater than average at 5.1% and 5.4% respectively. Southern Santa Barbara accounts for nearly half (49.7%) of the county s total workforce. Figure 1. Santa Barbara County Employment, , % 205, % 1.00% 200, % 195, % -2.00% 190, % 185, % -5.00% 180, Annual Average % Change (Baseline 2005) -6.00% Source: California Employment Development Department 9

10 Unemployment Rate Industry Cluster Report, July 2015 Figure 2. Historic Unemployment Rates, % 12% 10% 8% 6% 4% 2% 0% California Santa Barbara County Source: California Employment Development Department Table 1. Regional Unemployment Breakdown, April Region Unemployment Rate Santa Barbara County 4.6% North 5.1% Central 5.4% South 4.1% Source: California Employment Development Department 6 North: Guadalupe, Orcutt, Santa Maria; Central: Buellton, Lompoc, Los Alamos, Missions Hills, Santa Ynez, Solvang, Vandenberg, Vandenberg Village; South: Carpinteria, Goleta, Isla Vista, Mission Canyon, Montecito, Santa Barbara, Summerland, Toro Canyon 10

11 Employment Industry Cluster Report, July 2015 Figure 3. Regional Unemployment Breakdown, April , ,000 Santa Barbara County 150, ,000 50,000 South Region North Region Central Region 0 4.0% 4.2% 4.4% 4.6% 4.8% 5.0% 5.2% 5.4% 5.6% Percent Unemployment Source: California Employment Development Department Most of the Central Coast region (Santa Barbara, San Luis Obispo, and Monterey Counties) maintained modest labor growth through 2008, followed by a sharp decline the following year. Between 2010 and 2014, the Central Coast added nearly 39,000 new employees; almost half (43%) of the region s job growth occurred in Santa Barbara County. Of the three counties, job loss was greatest in Santa Barbara. During 2005 through 2010 countywide employment shrank by nearly quadruple that of Monterey. Santa Barbara County has since recovered 8.7% of its workforce, compared to 12% in San Luis Obispo and 4% in Monterey County. 11

12 Percent Change in Employment Industry Cluster Report, July 2015 Figure 4. Central Coast Employment, % 6% 4% 2% 0% -2% -4% -6% -8% Santa Barbara Monterey San Luis Obispo Source: California Employment Development Department Santa Barbara County s employment mirrors state- and nationwide trends. In 2010, national nonfarm jobs averaged roughly million workers, the lowest employment rate in the last 15 years. The nation s labor market has since expanded by 8% to 141 million employees. Statewide employment follows a similar trend; after a 5.4% decline from 2005 through 2010, California has since created 1.4 million new jobs. With 9.7% more jobs since 2010, the state s labor market is growing faster than nationwide employment. 7 7 Quarterly Census of Employment and Wages, Bureau of Labor Statistics 12

13 Percent Change in Employment Industry Cluster Report, July 2015 Figure 5. US, California, and Santa Barbara County Employment, % 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% United States California Santa Barbara County Source: Quarterly Census of Employment and Wages & Current Employment Statistics, Bureau of Labor Statistics OCCUPATIONAL TIER ASSESSMENT Economic snapshots of employment trends cannot distinguish between job quantity and job quality. Training, experience, and educational attainment are often correlated with employment opportunity and potential earnings. Based on these factors, most occupations can be delineated into one of three occupational tiers. The three-tiered system used in this analysis is largely defined by current wage data and general educational attainment. They are as follows: Tier 1 Occupations include managers, professional positions (lawyers, accountants, physicians), and high-skill technical occupations (scientists, programmers, engineers). These are typically high-paying occupations. Tier 2 Occupations include sales positions, teachers, librarians, office and administrative positions, as well as manufacturing, operations, and production occupations. Tier 3 Occupations include protective services, food service and retail, building and grounds keeping, and personal care positions. 13

14 Rising discrepancy between demand for skilled workers and average educational attainment has created a polarized field of employment opportunity. Declining middle-skill (Tier 2) occupations are redistributed to low-skill, low-wage service occupations (Tier 3) and to a lesser extent, highskill, high-wage occupations (Tier 1). The result is twofold: rising wage inequality and the decline of middle-class jobs. Though widespread automation and offshore labor market integration accelerated this trend, the recent economic recession has largely contributed to a diminishing Tier 2 workforce. 8 This pattern is observed at the national and state level, but less pronounced in Santa Barbara County. Countywide Tier 2 occupations declined by 0.3% between 2010 and 2014, while Tier 3 occupations increased by 0.4% (Table 2, 3). Across the country, Tier 2 jobs declined by 3% between 2010 and These occupations were generally redistributed into Tier 3, which grew by 3%. To a lesser extent, California s occupational distribution follows the national pattern. Tier 2 jobs declined by 2%, while Tier 3 increased by about 1% (Tables 3, 4, and 5). 9 It is important to note that not all occupations can be delineated into one of the three tiers due to wide variation in wage, education, and career pathway. For Santa Barbara County, approximately 7% - 11% of occupations were not captured in the 2010 to 2014 occupational tier analysis. Table 2. Santa Barbara County Occupational Tier Distribution, Year Tier 1 Tier 2 Tier % 36% 43% % 37% 40% % 36% 41% % 37% 42% % 35% 44% Source: Occupational Employment Statistics, Bureau of Labor Statistics 8 The Polarization of Job Opportunities in the U.S. Labor Market, David Autor, MIT Department of Economics, April Occupational Employment Statistics, Bureau of Labor Statistics 14

15 Table 3. Decline in Tier 2 Employment, Region Tier United States - 3% California - 2% Santa Barbara County - 0.3% Source: Occupational Employment Statistics, Bureau of Labor Statistics Table 4. California Occupational Tier Distribution, Year Tier 1 Tier 2 Tier % 39% 38% % 38% 38% % 38% 38% % 37% 39% % 37% 39% Source: Occupational Employment Statistics, Bureau of Labor Statistics Table 5. United States Occupational Tier Distribution, Year Tier 1 Tier 2 Tier % 40% 39% % 39% 39% % 37% 42% % 37% 42% % 37% 42% Source: Occupational Employment Statistics, Bureau of Labor Statistics 15

16 COUNTYWIDE ECONOMIC INDICATORS Overall employment and occupational data tend to be trailing indicators of economic health; trends often become visible after a regional economy has improved. The following indices provide additional insight into Santa Barbara County s economic landscape: The Innovation Index follows countywide patent growth between 2010 and 2013, illustrating the County s applied research and development activity. The Employment Growth Index is a measure of countywide employment between 2010 and The Job Quality Index illustrates the amount of jobs that support the County s living wage ($12.62) in addition to changes in tiers one, two, and three employment. The Productivity Index measures the County s Gross Domestic Product (GDP) as well as changes in GDP over total employment. Figure 6: Key Economic Indicators for Santa Barbara County, Innovation Index Job Quality Index Employment Growth Index Productivity Index

17 PART 2: SANTA BARBARA COUNTY S INDUSTRY CLUSTERS WHY INDUSTRY CLUSTERS A microcosm of economic activity, the industry cluster is a geographic concentration of labor and capital that share a common market and exchange supporting goods and services. Unlike the classical industry sector, clusters are comprised of interrelated industries complementing various elements of the supply chain. This local ecosystem of industries boosts competitive advantage across regional, statewide, and national economies. Successful clusters create a positive feedback loop, as increased productivity in a single industry filters growth into related industries. The collection of these individual economic units translates into regional economic and employment growth. 10 Export-Oriented vs. Population Serving Clusters: It is valuable to understand that not all industry clusters have the same impact on Santa Barbara s workforce and the regional economy. Export-oriented clusters that draw revenue from markets outside the county result in a multiplier effect that generates additional employment within the county. This is an important consideration for economic and workforce developers looking at training and educational programs that will have the highest return on investment for the county. These export-oriented clusters are also likely to drive innovation as they typically face competitive global markets. This provides a useful framework to identify relevant focal points for workforce development. Industry cluster analyses outline local economic drivers, emphasizing job growth and quality. This will allow Santa Barbara s Workforce Investment Board to: 1. Engage with employers that are central to countywide economic growth. Regional markets may be less connected to the overall labor market trend. A focus on industry clusters provides insight into how local employers collaborate to drive the county s economic growth. 2. Provide valuable information to current workers and job-seekers looking to develop new skills and career pathways. Workforce development focused on key areas of growth will capitalize on the region s job opportunities, guide individuals to sectors with strong employer demand, and grow the local economy. 3. Design programs that best support the current and projected regional workforce demand. Industry cluster analysis hones in on regional employer demand to create valuable workforce development programs. 4. Ensure that job-seekers can transition into employment with sustainable wages and strong career opportunities because most industry clusters are targeted towards high quality employment within the county. 10 Clusters and the New Economics of Competition, Michael Porter, Harvard Business Review,

18 AN INTRODUCTION TO SANTA BARBARA COUNTY S INDUSTRY CLUSTERS Together, the nine key industry clusters in Santa Barbara County account for 57% of the county s total workforce. Based on regional labor market trends, the following industry clusters are chosen for focus: 1. Healthcare includes all services related to the diagnosis, treatment, and prevention of disease, illness, injury, and other physical or mental impairments. The cluster covers all practitioners in medicine, chiropractic, dentistry, nursing, pharmaceutical care, etc. 2. Energy and Environment encompasses all industries that extract, produce, and sell energy. This includes environmental consulting services, testing laboratories, equipment manufacturing, hazardous and nonhazardous waste treatment and disposal. 3. Building and Design includes all firms that design and build residential and nonresidential buildings, such as contractors, architects, landscaping, building inspection services, interior design, and material manufacturing and wholesale. 4. Aerospace and Defense 11 consists of all industries that manufacture and design instruments, aircrafts, space vehicles, and other engine components. 5. Life Sciences includes manufacturing, research, and suppliers related to biotechnology, agricultural chemicals, medical instruments, and pharmaceuticals. 6. Information and Communication Technologies is the collection of industries that manufactures or sells electrical equipment and services, including computers, audio and video equipment, semiconductors, telecommunications, data processing and hosting, etc. 7. Business Services involve any management, consulting, employment, administrative, advertisement, accounting, legal, marketing, design, building, and facility support services. 8. Agriculture, Food, and Beverage are all industries related to crop, animal, food and beverage production. This includes agricultural support services, bakeries and other food manufacturing, as well as breweries, wineries, and distilleries. This cluster is split into two segments; agriculture and food & beverage production. 9. Tourism and Hospitality consists of all business sectors that support hospitality services and recreation, including museums, casinos, accommodation services, sightseeing transportation, campgrounds, amusement parks, sports, rental equipment etc. This cluster includes full-service restaurants and bars. 11 Aerospace and Defense includes defense contractors but does not include military employment. 18

19 Santa Barbara County s high-growth industry clusters include Energy and Environment, Tourism and Hospitality, Agriculture, Food, and Beverage, Aerospace and Defense, Life Sciences, and Healthcare. The mean hourly wage is above the County average for all clusters except Agriculture, Food, and Beverage and Tourism and Hospitality. Table 6. Santa Barbara County Industry Cluster Employment, 2014 Industry Cluster 2014 Employment % of County Tourism and Hospitality 23, % Agriculture, Food, and Beverage 23, % Healthcare 21, % Information and Communication Technologies 13, % Business Services 11, % Building and Design 10, % Life Sciences 4, % Aerospace and Defense 4, % Energy and Environment 3, % Source: U.S. Census Bureau & California Employment Development Department Figure 7. Santa Barbara County Industry Cluster Employment Growth, Santa Barbara County Energy and Environment Tourism and Hospitality Agriculture, Food, and Beverage Aerospace and Defense Life Sciences Healthcare Information and Communication Technologies Business Services Building and Design -5% -8% -2% 7% 17% 16% 10% 9% 7% 76% -20%-10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Employment Growth Source: U.S. Census Bureau & California Employment Development Department 19

20 Table 7. Santa Barbara County's Industry Cluster Mean Hourly Wage, 2014 Industry Cluster Mean Hourly Wage Agriculture, Food, and Beverage $11.82 Tourism and Hospitality $15.33 Santa Barbara County $23.71 Healthcare $28.57 Business Services $29.51 Building and Design $32.30 Life Sciences $35.11 Aerospace and Defense $36.05 Energy and Environment $36.48 Information and Communication Technologies $37.92 Source: Occupational Employment Statistics, Bureau of Labor Statistics 20

21 HEALTHCARE With increasing demand for healthcare services, the Healthcare industry cluster represents a significant portion of the County s labor market with high employment growth. EMPLOYMENT AND WORKFORCE METRICS RECENT EMPLOYMENT TRENDS Santa Barbara County s Healthcare industry totaled roughly 21,000 workers in The industry cluster accounts for just over 10% of Santa Barbara County s labor market and grew by nearly 7% between 2010 and 2014, consistent with the County s overall employment growth. INDUSTRY CONCENTRATION 12 With a location quotient 13 of 0.9, the Healthcare industry concentration in Santa Barbara County is below the national average. 21,164 employees 6.8% job growth EMPLOYER EXPECTATIONS 14 Just under one-third of surveyed employers expect to increase total employment in the next 12 months. Nearly one-fifth of Healthcare employers reported that their company has grown in the last three years. Over two-thirds of employers are experiencing hiring difficulty. 12 Location quotients are based on the 2014 Quarterly Census of Employment and Wages from the Bureau of Labor Statistics is equivalent to national concentration; indicates average industry concentration; <0.95 indicates below average concentration; indicates above average concentration; >1.24 indicates high concentration. 14 All employer expectation data is based on the BW Research Employer Survey, conducted in June

22 Percent Change in Employment Industry Cluster Report, July 2015 EMPLOYMENT GROWTH With just over 10% of the County s labor force, Santa Barbara County s Healthcare industry cluster closely follows countywide employment growth. Since 2010, the cluster s labor force expanded by nearly 7%, creating just over 1,300 new jobs. Figure 8. Healthcare Cluster Employment, % 7.0% 6.0% 5.0% 4.0% 3.4% 5.1% 4.9% 7.0% 6.8% 3.0% 2.7% 2.0% 0.9% 1.0% 0.0% 0.7% 0.0% Santa Barbara County Healthcare 22

23 HEALTHCARE OCCUPATIONS Santa Barbara County s healthcare occupations are mostly concentrated in Tiers 2 and 3 which account for 82% of the cluster s occupations. Hourly wages for common occupations range from $12.14 to $68.79; many require an Associate s or Vocational degree if not a Bachelor s. Table 8. Healthcare Occupational Tier Distribution, 2014 Tier 1 Tier 2 Tier 3 18% 41% 41% Table 9. Healthcare Occupations Wage and Education Occupations 2014 Hourly Wage Range Education Level Skills Human Resources Specialists Medical and Clinical Laboratory Technologists Licensed Practical and Licensed Vocational Nurses Bookkeeping, Accounting, and Auditing Clerks $ $ Bachelor's $ $ Bachelor's $ $ $ $ Registered Nurses $ $ Associate's or Vocational Associate's or Vocational Associate's or Vocational Active listening, Speaking, Reading comprehension, Critical Thinking, Writing Active listening, Critical thinking, Reading Comprehension, Science, Operation monitoring Service orientation, Active listening, Coordination, Monitoring, Reading comprehension Active listening, Reading comprehension, Speaking, Critical thinking, Mathematics Active listening, Social perceptiveness, Service orientation, Speaking, Coordination Source: Occupational Employment Statistics, Bureau of Labor Statistics & O*NET, US Department of Labor 23

24 ENERGY & ENVIRONMENT Energy and Environment increased employment by 76% in just five years. The cluster is poised to surpass the average national industry concentration and become a significant driver of countywide growth. EMPLOYMENT AND WORKFORCE METRICS RECENT EMPLOYMENT TRENDS In 2014, the Energy and Environment industry cluster employed about 4,000 individuals, comprising 2% of Santa Barbara County s total labor market. Energy and Environment is the fastest growing industry cluster; between 2010 and 2014, the cluster grew by 76%, creating almost 1,700 new jobs in the County. The Energy and Environment cluster represents 12.5% of countywide employment growth from 2010 through INDUSTRY CONCENTRATION With a location quotient of 1.1, the County s Energy and Environment industry cluster is just above the national concentration. 3,923 employees 75.9% job growth EMPLOYER EXPECTATIONS Two-fifths of surveyed employers project increased employment in the next 12 months. Nearly two-thirds of surveyed employers reported company growth in the last three years About two-thirds of employers also reported hiring difficulty. 24

25 Percent Change in Employment Industry Cluster Report, July 2015 EMPLOYMENT GROWTH Accounting for almost 13% of countywide employment growth, Santa Barbara County s Energy and Environment industry cluster has created about 1,700 jobs since Employment nearly doubled between 2011 and 2012; the cluster exhibits robust employment growth that far outpaces countywide employment trends. Figure 9. Energy and Environment Employment, % 107.3% 100.0% 80.0% 72.8% 75.9% 60.0% 40.0% 20.0% 8.9% 3.4% 5.1% 7.0% 0.0% 0.7% 0.0% Santa Barbara County Energy and Environment 25

26 ENERGY & ENVIRONMENT OCCUPATIONS Energy and Environment occupations are mainly concentrated in Tier 1 (71%), with 20% in Tier 2 and very few occupations in Tier 3 (9%). The average hourly wage for common occupations ranges from $12.34 to 73.87; these occupations typically require an Associate s or Vocational degree. Table 10. Energy and Environment Occupational Tier Distribution, 2014 Tier 1 Tier 2 Tier 3 71% 20% 9% Table 11. Energy and Environment Occupations Wage and Education Occupations 2014 Average Hourly Wage Education Level Skills Sales Representatives, Wholesale and Manufacturing $ $ Bachelor's or Associate's Persuasion, Speaking, Active listening, Negotiation, Social perceptiveness Bookkeeping, Accounting, and Auditing Clerks $ $ Computer Operators $ $ Supervisors of Construction and Extraction Workers Construction and Building Inspectors $ $ $ $ Associate's or Vocational Associate's or Vocational Associate's or Vocational Associate's or Vocational Active listening, Reading comprehension, Speaking, Critical thinking, Mathematics Operation monitoring, Reading comprehension, Critical thinking, Active listening, Complex problem-solving Active listening, Coordination, Critical thinking, Speaking, Management of personnel resources Active listening, Reading comprehension, Critical thinking, Speaking, Complex problem solving Source: Occupational Employment Statistics, Bureau of Labor Statistics & O*NET, US Department of Labor 26

27 BUILDING & DESIGN Despite overall employment decline since 2010, Santa Barbara County s Building and Design cluster saw employment grow by 2% between 2013 and EMPLOYMENT AND WORKFORCE METRICS RECENT EMPLOYMENT TRENDS As of 2014, the Building and Design industry cluster employs just over 10,000 workers in Santa Barbara County, representing 5% of the county s total labor market. Despite an overall decline of 8.5% since 2010, employment increased by 2% between 2013 and INDUSTRY CONCENTRATION The County s Building and Design industry cluster concentration is below the national average with a location quotient of EMPLOYER EXPECTATIONS 10,275 employees 5% of workforce 2014 Just under a third of surveyed employers expect to hire more employees in the next year. About one-seventh of employers have experienced company growth in the last three years. Over two-thirds of employers are experiencing hiring difficulty. 27

28 Percent Change in Employment Industry Cluster Report, July 2015 EMPLOYMENT GROWTH Between 2010 and 2011, the County s Building and Design industry cluster experienced a sharp employment decline, losing about 1,100 jobs. Since then, the cluster s labor market has fluctuated between job loss and creation but has yet to achieve the same level of employment as before the economic recession. 8.0% Figure 10. Building and Design Employment, % 6.0% 5.1% 4.0% 3.4% 2.0% 0.0% 0.0% 0.7% -2.0% -3.1% -4.0% -6.0% -8.0% -10.0% -10.0% -10.1% -8.5% -12.0% Santa Barbara County Building and Design 28

29 BUILDING & DESIGN OCCUPATIONS Building and Design occupations are fairly concentrated in Tier 2 (60%), though 31% of jobs are Tier 1. The hourly wage for common occupations ranges from $15.33 to $73.87; these occupations typically require an Associate s or Vocational degree. Table 12. Building and Design Occupational Tier Distribution, 2014 Tier 1 Tier 2 Tier 3 31% 60% 8% Table 13. Building and Design Occupations Wage and Education Occupations 2014 Average Hourly Wage Education Level Skills Sales Representatives, Wholesale and Manufacturing $ $ Bachelor's or Associate's Persuasion, Speaking, Active listening, Negotiation, Social perceptiveness Architectural and Civil Drafters $ $ Associate's or Vocational Active listening, Critical thinking, Judgment and decision-making, Reading comprehension, Speaking Electricians $ $ Heating, Air Conditioning, and Refrigeration Mechanics and Installers Bookkeeping, Accounting, and Auditing Clerks $ $ $ $ Associate's or Vocational Associate's or Vocational Associate's or Vocational Troubleshooting, Repairing, Active listening, Critical thinking, Judgment and decision-making Equipment maintenance, Installation, Quality control analysis, Troubleshooting, Operation monitoring Active listening, Reading comprehension, Speaking, Critical thinking, Mathematics Source: Occupational Employment Statistics, Bureau of Labor Statistics & O*NET, US Department of Labor 29

30 AEROSPACE & DEFENSE With high employment growth and a significantly larger industry concentration compared to the nation, the County s Aerospace and Defense industry cluster is a significant and growing segment of Santa Barbara County s labor market. It should be noted that this industry cluster does not include direct military employment. EMPLOYMENT AND WORKFORCE METRICS RECENT EMPLOYMENT TRENDS Aerospace and Defense employed about 4,500 workers in 2014, comprising 2% of Santa Barbara County s labor force. Between 2010 and 2014, the cluster grew by 10%, creating nearly 400 new jobs. Employment growth in the Aerospace and Defense industry cluster accounts for 3% of total countywide labor growth. INDUSTRY CONCENTRATION 4,414 employees 9.9% job growth About three times more concentrated (LQ=3.3) than the nation, Aerospace and Defense has the second highest industry concentration of Santa Barbara s nine industry clusters. EMPLOYER EXPECTATIONS A little under a third of surveyed employers expect more employees in the next 12 months. Over two-thirds of employers have hiring difficulties. 30

31 Percent Change in Employment Industry Cluster Report, July 2015 EMPLOYMENT GROWTH One of the County s fastest growing clusters, employment in Aerospace and Defense grew by 22% between 2010 and 2012; cluster employment growth has remained consistently above countywide employment growth. Figure 11. Aerospace and Defense Employment, % 22.0% 20.0% 15.0% 10.0% 10.1% 7.9% 9.9% 7.0% 5.0% 3.4% 5.1% 0.0% 0.7% 0.0% Santa Barbara County Aerospace and Defense 31

32 AEROSPACE & DEFENSE OCCUPATIONS Aerospace and Defense occupations are heavily concentrated in Tier 1, which comprise nearly 70% of industry jobs; Tiers 2 and 3 respectively account for 13% and 17% of occupations. The hourly wage for common occupations range from $11.07 to $28.08 and most of these occupations typically require an Associate s or Vocational Degree. Table 14. Aerospace and Defense Occupational Tier Distribution, 2014 Tier 1 Tier 2 Tier 3 69% 13% 17% Table 15. Aerospace and Defense Occupations Wage and Education Occupations 2014 Average Hourly Wage Education Level Skills Sales Representatives, Wholesale and Manufacturing Aircraft Mechanics and Service Technicians Computer-Controlled Machine Tool Operators, Metal and Plastic $ $ $ $ $ $ Electricians $ $ Bookkeeping, Accounting, and Auditing Clerks $ $ Bachelor's or Associate's Associate's or Vocational Associate's or Vocational Associate's or Vocational Associate's or Vocational Persuasion, Speaking, Active listening, Negotiation, Social perceptiveness Equipment maintenance, Operation monitoring, Troubleshooting, Complex problem-solving, Critical thinking Operation monitoring, Critical thinking, Quality control analysis, Operation and control, Troubleshooting Troubleshooting, Repairing, Active listening, Critical thinking, Judgment and decision-making Active listening, Reading comprehension, Speaking, Critical thinking, Mathematics Source: Occupational Employment Statistics, Bureau of Labor Statistics & O*NET, US Department of Labor 32

33 LIFE SCIENCES With high regional concentration, job growth, and a significant portion of the County s labor market, Life Sciences is a growing cluster for employment in Santa Barbara County. EMPLOYMENT AND WORKFORCE METRICS RECENT EMPLOYMENT TRENDS In 2014, Life Sciences employed about 4,500 workers in Santa Barbara County, or about 2% of the County s labor market. Between 2010 and 2014, employment in the cluster increased by almost 10%, accounting for 3% of total countywide employment growth. INDUSTRY CONCENTRATION Compared to the nation, the cluster is twice as concentrated in Santa Barbara County (LQ=2.0). EMPLOYER EXPECTATIONS 4,492 employees 9.5% job growth Three-fifths of surveyed employers project increased employment in the next 12 months. Three-fifths of surveyed employers also reported that their company has grown in the last three years. Four-fifths of employers are experiencing hiring difficulty. 33

34 Percent Change in Employment Industry Cluster Report, July 2015 EMPLOYMENT GROWTH Since 2010, Life Sciences has outpaced countywide employment growth, expanding its labor force by about 10% in five years; this represents 3% of the County s employment growth and just over 2% of total employment in Figure 12. Life Sciences Employment % 9.5% 9.0% 8.0% 7.0% 7.0% 7.5% 7.0% 6.0% 5.0% 4.0% 4.1% 3.4% 5.1% 3.0% 2.0% 1.0% 0.7% 0.0% 0.0% Santa Barbara County Biotechnology and Related Devices 34

35 LIFE SCIENCE OCCUPATIONS Life Science occupations are mostly concentrated in Tier 1 (63%), though Tiers 2 and 3 respectively account for 16% and 21% of industry occupations. The hourly wage for common occupations ranges from $10.60 to $73.87 and most of these require an Associate s or Vocational Degree. Table 16. Life Sciences Occupational Tier Distribution, 2014 Tier 1 Tier 2 Tier 3 63% 16% 21% Table 17. Life Sciences Occupations Wage and Education Occupations 2014 Average Hourly Wage Education Level Skills Sales Representatives, Wholesale and Manufacturing Bookkeeping, Accounting, and Auditing Clerks $ $ $ $ Chemical Technicians $ $ Machinists $ $ Production, Planning, and Expediting Clerks $ $ Bachelor's or Associate's Associate's or Vocational Associate's or Vocational Associate's or Vocational Associate's or Vocational Persuasion, Speaking, Active listening, Negotiation, Social perceptiveness Active listening, Reading comprehension, Speaking, Critical thinking, Mathematics Science, Critical thinking, Reading comprehension, Monitoring, Active listening Operation monitoring, Critical thinking, Coordination, Active listening, Operation and control Active listening, Reading comprehension, Speaking, Time management, Critical thinking Source: Occupational Employment Statistics, Bureau of Labor Statistics & O*NET, US Department of Labor 35

36 INFORMATION & COMMUNICATION TECHNOLOGIES Despite an employment decline between 2010 and 2012, Information and Communication Technologies has high regional industry concentration and a significant portion of the County s total employment. EMPLOYMENT AND WORKFORCE METRICS RECENT EMPLOYMENT TRENDS Following an employment decline from 2010 through 2012, the cluster has since increased employment by 12% between 2012 and Information and Communication Technologies now account for 13,455 jobs, or about 7% of Santa Barbara County s labor market. INDUSTRY CONCENTRATION Santa Barbara County has a high concentration of Information and Communication Technologies compared to the national average (LQ=1.7). 13,455 employees 6.6% of workforce 2014 EMPLOYER EXPECTATIONS A tenth of surveyed employers expect to increase employment in the next 12 months. Over a third of employers have seen company growth in the last three years. Half of surveyed employers experience hiring difficulty. 36

37 Percent Change in Employment Industry Cluster Report, July 2015 EMPLOYMENT GROWTH Following a 12.7% decline in employment between 2010 and 2012, the County s Information and Communication Technologies industry cluster expanded to just under 2010 employment levels by With this recent regrowth in the cluster s workforce, Information and Communications now supports 6.6% of countywide employment. Figure 13. Information and Communication Technologies Employment, % 7.0% 5.0% 3.4% 5.1% 0.0% 0.0% 0.7% 0.1% -3.7% -1.9% -5.0% -10.0% -12.7% -15.0% Santa Barbara County Information and Communication Technologies 37

38 INFORMATION & COMMUNICATION TECHNOLOGIES OCCUPATIONS The Information and Communication Technologies cluster is largely concentrated in Tier 1 (77%), with just under 20% of occupations falling into Tier 2. The average hourly wage for common occupations ranges from $13.27 to $73.87; these occupations typically require an Associate s or Vocational degree. Table 18. Information and Communication Technologies Occupational Tier Distribution, 2014 Tier 1 Tier 2 Tier 3 77% 18% 5% Table 19. Information and Communication Technologies Occupations Wage and Education Occupations 2014 Average Hourly Wage Education Level Skills Sales Representatives, Wholesale and Manufacturing $ $ Bachelor's or Associate's Persuasion, Speaking, Active listening, Negotiation, Social perceptiveness Bookkeeping, Accounting, and Auditing Clerks $ $ Associate's or Vocational Active listening, Reading comprehension, Speaking, Critical thinking, Mathematics Electrical and Electronics Engineering Technicians $ $ Associate's or Vocational Reading comprehension, Complex problem-solving, Critical thinking, Active listening, Monitoring Electricians $ $ Associate's or Vocational Troubleshooting, Repairing, Active listening, Critical thinking, Judgment and decision-making Production, Planning, and Expediting Clerks $ $ Associate's or Vocational Active listening, Reading comprehension, Speaking, Time management, Critical thinking Source: Occupational Employment Statistics, Bureau of Labor Statistics & O*NET, US Department of Labor 38

39 BUSINESS SERVICES Business Services experienced an overall decline between 2010 and 2014, but saw employment growth of 2% in the last year. Despite a below average location quotient, the cluster comprises nearly 6% of the County s labor market. EMPLOYMENT AND WORKFORCE METRICS RECENT EMPLOYMENT TRENDS Business Services employ 11,520 workers in Santa Barbara County, or about 6% of total county employment. Between 2010 and 2014, overall employment in the cluster declined by about 5%. In the last year, however, jobs grew by 2%. INDUSTRY CONCENTRATION With a location quotient of 0.6, Business Services has a below average regional concentration compared to the nation. 11,520 employees 5.6% of workforce 2014 EMPLOYER EXPECTATIONS Just over one-third of surveyed employers expect to increase employment in the next 12 months. Over two-thirds of employers report company growth in the last three years. Almost two-fifths of employers report hiring difficulties. 39

40 Percent Change in Employment Industry Cluster Report, July 2015 EMPLOYMENT GROWTH Business Services has experienced variable employment growth in the last 5 years. The industry cluster recovered following a decline in 2011, only to decrease again in The year after, the cluster recovered yet again, but employment is still lower than in Figure 14. Business Service Employment, % 7.0% 6.0% 5.1% 4.0% 3.4% 2.0% 0.0% 0.0% 0.7% -2.0% -3.3% -4.0% -6.0% -6.1% -7.0% -5.3% -8.0% Santa Barbara County Business Services 40

41 BUSINESS SERVICES OCCUPATIONS Occupation distribution in the Business Services industry cluster is fairly even across all tiers. The average wage for common occupations ranges from $10.00 to $73.87; educational requirements range from an Associate s or Vocational to a Bachelor s Degree. Table 20. Business Services Occupational Tier Distribution, 2014 Tier 1 Tier 2 Tier 3 28% 34% 38% Table 21. Business Services Occupations Wage and Education Occupations 2014 Average Hourly Wage Education Level Skills Human Resources Specialists Accountants and Auditors Sales Representatives, Wholesale and Manufacturing Bookkeeping, Accounting, and Auditing Clerks Office and Administrative Support Positions $ $ Bachelor's $ $ Bachelor's $ $ $ $ $ $ Bachelor's or Associate's Associate's or Vocational Associate's or Vocational Active listening, Speaking, Reading comprehension, Critical Thinking, Writing Active, listening, Mathematics, Reading comprehension, Writing, Critical thinking Persuasion, Speaking, Active listening, Negotiation, Social perceptiveness Active listening, Reading comprehension, Speaking, Critical thinking, Mathematics Active listening, Speaking, Coordination, Social perceptiveness, Critical thinking Source: Occupational Employment Statistics, Bureau of Labor Statistics & O*NET, US Department of Labor 41

42 AGRICULTURE, FOOD, & BEVERAGE Agriculture, Food, and Beverage has the highest location quotient of the nine industry clusters featured in this study; it is over eight times more concentrated in Santa Barbara County compared to the national average and accounts for 11% of countywide employment. EMPLOYMENT AND WORKFORCE METRICS RECENT EMPLOYMENT TRENDS With 23,199 workers in 2014, Agriculture, Food, and Beverage accounted for 11.3% of Santa Barbara County s employment. Between 2010 and 2014, the cluster grew by 15.9%, adding another 3,180 jobs to the County s labor market. Agriculture alone accounts for 90.5% of the cluster s employment total and, 10% of the County s labor market, and about 18% of countywide employment growth. INDUSTRY CONCENTRATION 23,199 employees 16% job growth With a location quotient of 8.4, this cluster has the highest industry concentration of Santa Barbara County s nine industry clusters. EMPLOYER EXPECTATIONS A third of surveyed employers project increased employment in the next 12 months. Almost half of surveyed employers report company growth in the last three years. Over half of employers are experiencing hiring difficulty. 42

43 Percent Change in Employment Industry Cluster Report, July 2015 EMPLOYMENT GROWTH Agriculture, Food, and Beverage, has been fairly consistent with countywide employment growth until 2013, when the cluster surpassed Santa Barbara s employment growth by 9%. Figure 15. Agriculture, Food, and Beverage Employment, % 16.0% 15.9% 14.0% 12.0% 10.0% 8.0% 7.0% 6.0% 4.0% 3.4% 5.1% 4.7% 2.0% 0.0% 0.0% 0.7% 2.2% -2.0% -1.1% Santa Barbara County Agriculture, Food, and Beverage 43

44 AGRICULTURE, FOOD, & BEVERAGE OCCUPATIONS Agriculture, Food, and Beverage occupations generally fall into Tier 3 (66%), with about 13% in Tier 1 and 21% in Tier 2. The hourly wage for common occupations ranges from $10.00 to $73.87; education levels range from Associate s or Vocational to a Bachelor s Degree. Table 22. Agriculture, Food, and Beverage Occupational Tier Distribution, 2014 Tier 1 Tier 2 Tier 3 13% 21% 66% Table 23. Agriculture, Food, and Beverage Occupations Wage and Education Occupations 2014 Average Hourly Wage Education Level Skills Human Resources Specialists $ $ Bachelor's Accountants and Auditors $ $ Bachelor's Sales Representatives, Wholesale and Manufacturing Bookkeeping, Accounting, and Auditing Clerks Office and Administrative Support Positions $ $ $ $ $ $ Bachelor's or Associate's Associate's or Vocational Associate's or Vocational Active listening, Speaking, Reading comprehension, Critical Thinking, Writing Active, listening, Mathematics, Reading comprehension, Writing, Critical thinking Persuasion, Speaking, Active listening, Negotiation, Social perceptiveness Active listening, Reading comprehension, Speaking, Critical thinking, Mathematics Active listening, Speaking, Coordination, Social perceptiveness, Critical thinking Source: Occupational Employment Statistics, Bureau of Labor Statistics & O*NET, US Department of Labor 44

45 TOURISM AND HOSPITALITY Tourism and Hospitality employs 11.5% of Santa Barbara County s workers. From 2010 to 2014, this industry cluster accounted for one in four (26%) new jobs in the County. EMPLOYMENT AND WORKFORCE METRICS RECENT EMPLOYMENT TRENDS Between 2010 and 2014, the Tourism and Hospitality industry cluster grew by 17% and created 3,500 new jobs; this represents 26% of the total county employment growth. The industry cluster now accounts for 11.5% of Santa Barbara County employment, about 23,600 workers. INDUSTRY CONCENTRATION The Tourism and Hospitality industry cluster has a high concentration in Santa Barbara County compared to the national average (LQ=1.6). 23,647 employees 17.3% job growth EMPLOYER EXPECTATIONS Almost one-third of surveyed employers project more employees in the next 12 months. Nearly two-fifths of employers have experienced company growth in the last three years. Just under half of surveyed employers experience hiring difficulties. 45