 | LABOR FORCE ANALYSIS
for the
Greenville Area
PREPARED FOR:
The City of Greenville (Greenville, IL) PREPARED BY:  INTRODUCTION
In 2002, The City of Greenville contracted with Paragon Decision Resources, Inc. (Paragon) to conduct a Labor Force Analysis. The objective of this analysis is to determine current labor availability and quality trends, and salary/wages for select positions. To achieve these findings, Paragon used labor force data collected through employer interviews and a resident survey.
The survey instruments were designed to collect the following data:
· Occupation and Skills – including education and training
· Commute Pattern Information – including willingness to enter the workforce and change jobs; and at what pay levels.
· Underemployment Employer Interview
Introduction
One of the objectives of this study is to understand needs of employers in and around the Greenville area as they relate to the Greenville area workforce. Paragon conducted a series of 15 face-to-face interviews with employers in Fall of 2002. Several important areas are covered here:
· Labor availability
· Labor Quality
· Wages
· Education and Training services
Labor Availability
The ability to find qualified workers is critical to the growth of businesses in the Greenville area and to the success of attracting new businesses. Through interviews with local employers, we were able to determine labor availability in the area, now.
From the interview results, we created the Paragon Index which measures labor availability on a one to ten point scale (1=very poor; 5=average; and 10=excellent). We use the same index in all our labor market analysis nationwide and this gives a true “apples to apples” comparison of different communities. Generally, scores of 3 to 4 are below average, 5 to 6 are average; 6 to 7 above average; 7 to 8 are good, and 8 to 9 are very good. 
· The availability of clerical workers and experienced customer service representatives is excellent. The availability is much stronger than other communities in the Midwest.
· The availability of skilled workers such as maintenance mechanics is “good to very good”, which is substantially better than elsewhere in the Midwest.
Availability Quotes
· “ We do not have difficulty recruiting and the training services offered by local institutions are terrific.”
· “The availability of customer service, experienced and non-experienced personnel, is great. It is the best in our entire system.”
· “ We have never had a problem getting maintenance mechanics or welders. Maybe the reason is because of our pay and benefit structure.”
Labor Quality
Good labor quality in a marketplace is essential to the success of a project. Companies, therefore, seek out communities with high quality standards.
During our local interviews, we focused on labor quality characteristics and asked employers to rank select factors on the one to ten scale. As with labor availability, we created the Paragon Index from these scores. We use the same factors in all of our labor analysis, in order to get an “apples to apples” comparison of communities in different regions. Characteristics include:
· Turnover
· Absenteeism
· Attitudes – on-the-job
· Trainability – employees response to training· Basic skills – math, English, grammar, blue print reading, etc. of new hires
· Communications – employer/employee and employee/employee on-the-job
· Alcohol/drugs – perceived situation
· Productivity – employer’s measure
· Accuracy – employer’s measure.
Generally, scores of 5 to 6 are “high average”; 6 to 7 are “above average”; 7 to 8 are “good”; 8 to 9 are “very good” and 9 and over are “excellent”. The following graphs indicate overall experience by sector.
· Greenville labor force characteristics are considered “very good to excellent.”
· The exception is basic skills. Some employers with many unskilled workers must test a large number of applicants before one passes the assessment.
· Productivity and accuracy rates are higher here for firms that have other plants in other parts of the nation.
· The call center/technical support industry is relatively new in the Greenville area. Therefore, good quality is an indicator that this sector will likely grow in the area.
Labor Quality Quotes
· “Our corporate office in Memphis is very pleased with our productivity here.”
· “ There is a great work ethic here and this is a good environment for business and that is why we have stayed and grown in Greenville.”
· “ We could have this company anywhere in the state, but we decided on Greenville and we couldn’t be happier.”
· “ Our workforce is great …we pay well and hope that we can keep everyone.”
· “Our workforce is the most productive in the corporation, we have the least amount of turnover, absenteeism, and great attitudes.”
Wage rates are the single most important labor factor; affecting both the availability of good quality workers in a marketplace and a company’s competitive position. The following wages by target category depict the differences between the Greenville area and several competing communities.
Wages and Salaries
Wage rates for the most prevalent positions in the Greenville area are the following:
Comparing the Greenville area’s salaries and wages with competing cities: 
· Greenville manufacturing wages and salaries are much less than Midwest metropolitan areas communities such as Minneapolis, Chicago, Cleveland and even nearby St. Louis. 
Greenville wages and salaries are substantially lower than metropolitan areas in the Midwest, including Denver and Omaha.
Resident Survey
Introduction
Paragon conducted a unique telephone survey of the Greenville area residents (Bond County, and the Cities of Highland and Vandalia). The survey was designed to seek existing skill levels, education/training levels and a willingness to change jobs.
A total of 302 households were interviewed. A random digit dialing method was used. This represents approximately 1.5% of the resident workforce. We took these results and extrapolated estimated numbers based on an estimated resident workforce of 20,000
The Greenville Area Workforce Analysis
According to the survey, 83% of respondents are currently employed or 16,600 of the resident workforce. 3.0% are currently looking for a paying job and an additional 2.0% are planning on looking for a paying job in the next year.
· Of those currently employed, 42.7% have an interest in applying for an additional job or a different job, potentially 7,088 workers.
· 57.3% would very likely take additional training to qualify for a new job.
· 36.2% of those currently employed are trained for an occupation other than the one in which they are currently employed. And, of those trained in another occupation, 72% would be willing to accept a job in this occupation if the pay and benefits were great enough, potentially 4,327 workers.
The following graph indicates the pay required to change jobs. 58.1% would require $21,000 to $40,000 ($10.09 - $19.23 per hour) in order to change.
A significant number of area residents are currently working in or have at least some experience/education in the identified target industry occupation categories (see below).
A large number of area workers potentially have work experience in your target industry categories:
Back Office/Order Fulfillment- 4,380 workers:
Fabrication/Primary Metals – 3,180 workers
Food Processing - 2,920 workers
Warehousing/Distribution - 4,100 workers
Chemicals/Pharmaceuticals – 2,520 workers
Where Do Workers Live and Work? /Commuting Trends
· Greenville area workers tend to work near their homes.
· Over 87% live within 30 miles of their current job
· Almost 70% commute 15 miles or less.
· Over 40% of respondents use mass transit to get to and from their place of work.
Education Level
The Greenville area residents are highly educated with over 50% having some college, a college and/or advanced college degree.
The Underemployed
Government statistics do not report underemployment. This is an important area for prospects to understand since the underemployed represent potential workers. Many of these people do not show up in unemployment statistics. And many possess skills above the job in which they are currently working. The underemployed in a work force include:
· Unemployed, but looking for work.
· Part-time workforce.
· Temporary/seasonal workforce.
· Workers trained/educated for other/better skills and willing to change jobs into these skills.
Recorded unemployment for the Greenville area (4.25%) remains below the national and state rate for October 2002. The unemployment rate for Bond County was 4.2%. The unemployment rate for the cities of Highland and Vandalia was estimated at 4.3%. The national unemployment rate was at 5.8% and the unemployment rate for the State of Illinois was at 6.3%. The chart below outlines the resident workforce and unemployment for the Greenville area, according to the Bureau of Labor Statistics.
| Greenville Area Employment, October 2002* | | | Workforce | Employed | %Unemployed | | Bond County. | 8,399 | 8,046 | 4.2% | | Highland | 5,220 | 4,996 | 4.3% | | Vandalia | 6,381 | 6,107 | 4.3% | | | | | | | Totals | 20,000 | 19,149 | 4.25% | *Data for Highland and Vandalia is estimated from the Bureau of Labor Statistics,
Clinton County, October 2002.
Data for Bond County is reported from the Bureau of Labor Statistics, October 2002
However, these statistics do not cover the many that have not filed for benefits. The survey gives a more accurate picture of the current situation, including those currently seeking employment.
Based on the survey data, we calculated underemployment in the Greenville area as follows:
· Unemployed (16.9%), but looking for work (17.6% of unemployed) – 594
· Part-time workforce (8.0%) - 1,600
· Temporary/seasonal workforce (6.0%) – 1,200[1]
· Workers trained/educated for other/better skills (36.2%) and willing to change jobs into these skills (71.6%) – 5,184[2].
· The total potential underemployed population in the Greenville area is large-8, 578 workers or 43% of the current workforce.
Summary
The Greenville area employers generally agree that their labor force is excellent. Their employees are high quality with great skills, adaptable to changes in technology, well trained and are extremely loyal. Their wage base is lower than all Midwest cities and there is a substantial difference between wages in Greenville versus nearby St. Louis metropolitan area wages.
Education and training services are excellent with Southern Illinois University at Edwardsville only 25 miles away. Kaskaskia College has great programs with industry. The local vocational technology high school is at Okaw in Vandalia.
Greenville offers a unique opportunity for industry with cost savings and quality workers.
Greenville area residents are highly educated and a significant number have experience in positions in your targeted industries. Also, a large percentage of the residents have indicated an interest in applying for an additional job and over 50% would take additional training to qualify for a new job.
These findings show that the resident workforce is very marketable to your target industries and to industries with who need an educated and motivated workforce.
Combine this with a large percentage of underemployed workers and Greenville has an excellent workforce to offer new or expanding businesses.
For Further Information:
Contact:
Deane Foote, CEcD
Jack Allston, CED, FM
or
Teresa Nortillo CEcD
Paragon Decision Resources
One Oakbrook Terrace Suite 208
Oakbrook Terrace, IL, 60181
1-800-959-7270
[1] An estimated half would also be considered part-time. [2] An estimated half of part-time/seasonal workers would also fall under here. |
