St. Louis Community College in connection Workforce Solutions Group has released the fifth annual State of the St. Louis Workforce Report, about the current local economy and job market in the St. Louis metropolitan area.
The report focuses on unemployment, job growth and future projections for growth and opportunities for those working in the area. Researchers surveyed 1,200 employers to better understand what the job market might look like a few years down the road. One hundred and eighty St. Louis Community College graduates were also surveyed to understand new worker expectations and skills.
Much of the findings align with the slow and steady economic recovery that is taking place nationally. The study did provide insights into the industries that may be expanding in years to come in St. Louis and what skills employers are looking for in the people they hire.
Alan Spell of the Missouri Economic Research and Information Center (MERIC) presented the results of the study at the Missouri Botanical Garden last week. Spell started with local unemployment. According to the latest data from the Bureau of Labor Statistics, the unemployment rate for St. Louis in June 2013 was 7.6 percent. That matched the nationwide unemployment rate, but was higher than the statewide unemployment rate of 6.9 percent.
The report breaks down the effects of unemployment along age and gender.
“Young males were affected more so than the rest of the population,” Spell said.
The report did not compare the different rates of unemployment for different minority groups. The Economic Policy Institute (EPI) expects that minority unemployment rates will remain higher than white unemployment through the end of the year. In Missouri, black unemployment was at 12.2 percent in 2012, 5.4 percent higher than the statewide average. EPI projects black unemployment will be at 12 percent by the end of 2013, 4.9 percent higher than the projected statewide average.
The good news is that area employers are looking to increase hiring in coming years, Spell said. While hiring practices have remained the same, 53 percent of employers surveyed said employment levels had not changed in the last 12 months, but more employers plan to increase hiring in the next year compared to the past two years.
“We’re expecting moderate growth at about 5 percent,” said Brian Ashworth, Human Resources principal at Edward Jones.
“In the next six months we’ll be increasing our labor force by 10 to 12 percent,” said Keith Darling, AEP River Operations president.
It’s no surprise that, of the employers surveyed, economic conditions was most often cited as a barrier preventing expanding employment. Second to that was the need for more skilled or knowledgeable workers.
The survey showed that employers have a need for what Spell called soft skills. Communication skills and improved work ethic topped the list for needed skills. The need for skilled workers coupled with economic pressures might explain a current trend in workforce demographics.
“We’re all facing this workforce that is aging in place,” Spell said.
Of the surveyed employers, nearly half (48 percent) said they favor an experienced applicant over a recent graduate with the latest skills, while only 11 percent said they favor the recent graduate.
But it’s not all bad news for new graduates. The report shows that overall employers are increasing their educational requirements, with 55 percent of employers responding that a bachelor’s degree was needed for jobs at their businesses.
The survey of students who completed coursework at St. Louis Community College shed light from the student perspective. Compared to last year, 10 percent fewer students had the perception that completion of their program would provide more stable employment. That being said, most of those who completed their programs do not regret their decision.
“Eighty-two percent of completers said they would do it again, which suggests that they felt it was a good investment,” Spell said.