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JPMorgan Chase & Co. today released a first-of-its-kind
roadmap addressing the mismatch between the needs of employers and
the skills of current job seekers in Detroit. This skills gap
report provides a comprehensive look at available middle-skill
healthcare and manufacturing jobs in the Detroit area and offers
data-driven steps local policy makers, community colleges, training
providers and private sector employers can take to fill these
critical, good paying roles.
Released as part of JPMorgan Chase's five-year, $100 million
commitment to Detroit's economic recovery, the report integrates
current labor market information to identify middle-skill
occupations that are in high demand. With this data, the firm is
working with community partners to expand workforce development and
training programs and establish career paths to advanced roles.
"Detroit's continued economic growth is tied to the quality of
its workforce," saidChauncy Lennon, JPMorgan Chase's Head of
Workforce Initiatives. "This report seeks to help the middle-skill
workers identify pathways to well-paying jobs, which will expand
the number of qualified workers and attract new business
opportunities to accelerate Detroit's growth."
Despite job and population reductions over the past decade,
demand remains strong for qualified workers in Detroit, yet limited
talent is available. The report reveals that nearly 6,000
middle-skill jobs in healthcare and manufacturing are projected to
open annually in the Detroit area through 2018. From 2013-2014,
openings in healthcare and manufacturing, the regions largest
industry sectors, represented 56 percent of the total postings for
all middle-skills jobs in Detroit. Yet many residents lack the
basic academic and job readiness training to take advantage of
these job opportunities. Roughly 12 percent of the region's
residents - over 340,000 people - age 25 and above lack a high
school diploma. Moreover, 22 percent of Detroit city residents lack
a high school diploma or GED, including more than half (55 percent)
of Latino residents.
"There is an increasing number of good paying jobs available in
Detroit, but many residents lack the required skills to be eligible
for them," saidDetroit Mayor Mike Duggan. "JPMorgan Chase's report
identifies ways businesses, educators and the city can do a better
job of providing Detroiters the training and skills they need to
take advantage of these opportunities."
Skills Gap Key Findings and Recommendations
Healthcare and manufacturing represent a significant part of the
increase in demand for middle-skill workers, commonly defined as
people with more than a high school degree but less than a
bachelor's degree. In 2013 there were more than 207,000
middle-skill jobs in healthcare and manufacturing and more than
5,700 of these types of jobs are expected to open up every year
through 2018. On average, these middle-skill positions pay
significantly higher than the region's living wage of $17.08 and
often times chart a course for career advancement.
The report suggests that these job openings and Detroit's aging
workforce are creating significant opportunities for entry-level
and middle-skill workers to join the workforce. According to the
report, approximately 22 percent of all healthcare and
manufacturing employees are 55 years or older.
Healthcare
Healthcare accounts for more than 231,000 jobs in the Detroit
area and is projected to be one of the fastest growing sectors.
Over 19,000 jobs are expected in the healthcare industry by 2018,
and 16% of those jobs will require middle skills. The median
average hourly wage for middle-skill healthcare positions is
$27.77, yet job postings for many of these positions go unfilled
for one to three months on average.
With a significant number of workers retiring, Detroit's Baby
Boomer population will soon need healthcare workers of their own,
from physicians to home health aides, furthering middle-skill
employer demand. The aging population combined with additional
increases in demand, such as major investments in the expansion of
healthcare facilities, will make qualified middle-skill workers in
the healthcare industry extremely valuable in the near future.
Manufacturing
In the Detroit region, 33 percent of middle-skill demand stems
from the manufacturing industry. Additionally, many manufacturing
occupations are expecting to grow at rates well above the national
average in the coming years. For example, employment of machinists
is projected to rise by 17 percent by 2020, while the national
average is expected to remain flat.
As the domestic automotive industry recovers, manufacturing
processes continue to become more sophisticated, and the working
population ages, the demand for middle-skill workers is increasing.
Currently many of these positions are posted for an average of 40
days before being filled in the Detroit region. Wages vary by
position, but the median average wage for a middle-skill
manufacturing worker is $22.40 per hour.
"At Focus: HOPE we recognize that Detroit's recovery remains
dependent on being able to address the skills gap faced by both
employers and job seekers," saidWilliam F. Jones, CEO, Focus: HOPE.
"By investing in high demand skill areas, like advanced
manufacturing and information technology, we not only help address
some of the most critical needs of local employers, but we also
provide access to jobs that provide a real income and opportunity
for career growth. Investment in middle-skill job training pays
incredible dividends to our community."
Recommendations
Helping Detroit city residents obtain well-paying middle-skill
jobs must be a regional workforce development priority. In order to
meet employer demand, the report offers several strategic
recommendations to address the skills gap:
"Seizing the opportunities that high-demand, well-paying
middle-skill jobs provide is critical to retooling the economic
vitality and growth of southeast Michigan," said James Jacobs, PhD,
president, Macomb Community College. "We applaud JPMorgan Chase's
commitment to helping regional efforts in driving collaboration
among business, industry and education to bolster a viable career
pathways system and to providing resources to support the education
and training necessary to improve the economic mobility of our
residents."
"We are extremely grateful for JPMorgan Chase's investment in
Detroit, and in particular, the opportunity to contribute to this
report for their New Skills at Work Initiative," said Pamela Moore,
President and CEO, Detroit Employment Solutions Corporation. "We
can now better align partners and resources to address gaps, our
underserved populations, expose and navigate young people and
adults down pathways that lead to middle-skilled careers, and
expand wrap-around services that will give Detroiters the supports
most needed. The economic downturn is finally shifting and our
success relies on our shared vision, sense of urgency,
collaboration, and public-private investment. These are very
exciting times for Detroit."
About the Skills Gap Report
JPMorgan Chase is releasing a series of skills gap report in
nine metropolitan areas in the United States and four European
countries. The reports draw from an array of data, including
traditional and real-time labor market information and analysis
from EMSI and Burning Glass Technologies, Inc. The reports focus on
middle-skills occupation as defined by Economic Modeling
Specialists International (EMSI) based on aggregated data from over
90 federal, state and private sources and a multi-variable
technique that includes three criteria: family-sustaining wages,
recent employment growth, and employment size. Burning Glass
provided real-time labor market demand information from online job
postings by aggregating and analyzing code data from multiple
classification and occupation databases. Jobs for the Future
integrated EMSI and Burning Glass data with other data sources like
the analysis of longitudinal Quarterly Workforce Indicators from
the U.S. Census Bureau, to write the report.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global
financial services firm with assets of $2.6 trillion and operations
worldwide. The firm is a leader in investment banking, financial
services for consumers and small business, commercial banking,
financial transaction processing, and asset management. A component
of the Dow Jones Industrial Average, JPMorgan Chase & Co.
serves millions of consumers in the United States and many of the
world's most prominent corporate, institutional and government
clients under its J.P. Morgan and Chase brands. Information about
JPMorgan Chase & Co. is available at www.jpmorganchase.com.
JPMorgan Chase & Co.Steve O'Halloran, 302-282-5699
This information is provided by Business Wire
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