Labor Force & Economic ProfileMetropolitan Denver2014

Prepared byArapahoe/Douglas Works!forThe Arapahoe/Douglas Workforce Investment Board

Background & High Quality Labor ForceBackgroundThis report was prepared at the request of Joseph M. Barela, Division Manager, Arapahoe/Douglas Works! on behalf of the Arapahoe/Douglas Workforce Investment Board. It profiles the labor force and local economy in the ten-county Denver-Aurora-Broomfield Metropolitan Statistical Area (MSA) with emphasis on the contribution of Arapahoe and Douglas counties, which together make up the southeast portion of the MSA. The Denver-Aurora-Broomfield MSA is made up of Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park counties. This region will be called Metro Denver throughout this report, and Arapahoe and Douglas counties together will be called the Arapahoe/Douglas region.

High Quality Labor Force

15.6%

3.7%

17.9%

22.5%

8.8%

28.9%

2.7%

14.2%

5.7%

20.5%

21.8%

7.7%

25.7%

4.5%

13.7%

5.4%

21.8%

22.9%

8.4%

23.8%

4.0%

10.9%

7.9%

28.0%

21.3%

8.0%

18.2%

5.8%

Arapahoe/Douglas United StatesColoradoMetro Denver

Graduate or Prof. Degree

Bachelor’s Degree

Associate’s Degree

Some CollegeNo Degree

H.S. Graduate (includes equivalency)

9th-12th GradeNo Diploma

Less than 9th Grade

Metro Denver boasts a sophisticated, well-trained labor force with educational attainment significantly above the national average. Table 1 shows bachelor’s degree attainment is 7.5% higher than the national average, and attainment of graduate or professional degrees 3.3% higher.

The Arapahoe/Douglas region, Metro Denver and Colorado all have significantly higher levels of educational attainment than the national average.

Metropolitan Denver RegionEducational Attainment Levels, Population Over 25

= Arapahoe/Douglas Region = Denver/Aurora/Broomfield MSA

62,935

165,944

Arapahoe/Douglas Region=37.9%

Business

Arapahoe/Douglas Region=31.7%

245,340

773,879

Total with Bachelor’s Degree or Over

Arapahoe/Douglas Region=36.2%

24,341

67,267

EducationArapahoe/Douglas Region=30.6%

108,902

355,790

Science & Engineering

Arapahoe/Douglas Region=26.6%

24,341

184,878

Arts, Humanities & Other

The number of people in Metro Denver and the Arapahoe/Douglas region over 25 years of age who have a bachelor’s, graduate or professional degree, and the field of degree. As well as being a leader is business and education, the Arapahoe/Douglas region has 36.6% of degrees in computer, mathematics and statistics, and 36.8% of engineering degrees.

Educational AttainmentPopulation Over 25

United States

Denver Metro Area

29.1%86.4%

37.5%90.6%

39.9%89.9%

44.5%93.6%

= Bachelor’s Degree or Higher = H.S. Graduate or Higher

Colorado

Arapahoe/Douglas Region

2Labor Force & Economic Profile • Metropolitan Denver • 2014

yStrong EconomStrong Economy Metro Denver boasts a strong and diversified economy that employs over 1.7 million people including self-employed and second or part-time jobs. Metro Denver’s Gross Domestic Product (GDP) is over $158.1 billion. It exports nearly $144.9 billion in goods and services and has a trade surplus of $28.7 billion.

= H.S. Graduate or Higher

This chart shows industry groups with significant concentrations in the Arapahoe/Douglas region. Information includes telecommunications, broadcast

cable, software publishing, data hosting and web portals. The professional, scientific & technical group

includes computer systems design and related services, engineering services and testing laboratories.

Employment in the management of companies and enterprises group reflects the numerous companies that

have located headquarters near Centennial Airport, which is one of the busiest general aviation airports in the nation.

Administrative support includes call centers, which are 4 to 7 times more concentration here than the national average.

Significant Employment Concentrations in Arapahoe/Douglas Region

50.1%INFORMATION48.2%FINANCE & INSURANCE

39.5%REAL ESTATE, RENTAL & LEASING38.1%RETAIL TRADE

37.2%MINING, QUARRYING, OIL & GAS EXTRACTION36.3%PROFESSIONAL, SCIENTIFIC & TECHNICAL36.1%MANAGEMENT OF COMPANIES & ENTERPRISES35.8%ADMINISTRATIVE SUPPORT & WASTE MANAGEMENT

34.8%ARTS, ENTERTAINMENT & RECREATION33.4%HEALTH CARE & SOCIAL ASSISTANCE

G eographic Distribution of JobsGeographic Distribution of JobsTable 4 shows Metro Denver’s projected job growth between 2013 and 2014 is 2.2%, which is eight-tenths of a percent higher than national projections.

Douglas County employment grew 1.8 times faster than Metro Denver in 2012-2013 and is projected to grow 2.23 times faster through 2014. Arapahoe County employment grew at the same rate as Metro Denver between 2012 and 2013, but is expected to grow two-tenths of one percent more slowly than Metro Denver between 2013 and 2014. Though employment in Colorado and in Metro Denver is growing at a higher rate than the national average, there is some concern among business leaders about possible effects of government shutdown and budget gridlock in Washington D.C.

0.9% 1.5% 1.7% 1.9% 2.2% 2.2% 2.7% 3.1% 3.6% 4.7%

Gilpin Denver Jefferson Arapahoe Park Adams Elbert Clear Creek Broomfield Dougals

5.3%

DouglasClear Creek Broomfield

GilpinAdams

Arapahoe Jefferson Denver Park Elbert4.5% 4.4% 3.9% 3.2% 2.9% 2.4% 2.4% 1.9% 1.7%

Highest Job Growth 2012-2013

Highest Projected Job Growth 2013-2014

4Labor Force & Economic Profile • Metropolitan Denver • 2014

SCommute Pattern Commute PatternsSkilled labor is migratory within the labor shed, which is defined as that geographical area within which people are willing to commute to work. In Arapahoe County, for instance, 63.5% of employed residents commute to other counties within Metro Denver to work. An increasing number of people now hold jobs that allow them to work from home. In the United States, the percent of people working from home increased from 4.1% in 2008 to 4.4% in 2012. In Metro Denver, 6.3% work from home, 4.9% work from home in Arapahoe County. In Douglas County, 10% of residents over 25 work from home.

Chart 5 puts commute patterns between counties in Metro Denver in sharper relief. The greater metro Denver area must always be considered when profiling the local labor force and economy because the population that lives in one county rarely has all of the skills needed by employers doing business in that county. Workers that best fit the skills needed must be imported from other counties within the region, and in some cases from other countries.

Commuting Into County

Gilpin 88.8%Broomfield 88.2%

Clear Creek 73.7%Denver 70.8%Adams 66.6%Arapahoe 65.4%Douglas 65.3%Park 58.8%Jefferson 57.6%Elbert 54.5%

Commute Patterns by County, Metro Denver 2012

Commuting Out of County

88.8% Elbert Park88.5%

86.9% Broomfield Clear Creek84.5%

76.8% Douglas74.4% Gilpin

71.7% Adams 65.6% Jefferson

63.5% Arapahoe52.1% Denver

J obs Growth by Industry

Unemployment RatesThe unemployment rate in Metro Denver matched that of the United States in July 2012, but by July 2013, was six-tenths of a percent below the national rate.

Job Growth by Industry

September2012 = 33,5152013 = 28,887

6Labor Force & Economic Profile • Metropolitan Denver • 2014

yAge Bands by IndustrAge Band by Industry

Table 8 shows the number of workers in each age band by industry group. The table has been sorted by the highest percentages of workers over 45 years old. This type of analysis can be valuable because industry groups that have higher numbers of mature workers than the Metro Denver average may need to plan more aggressively around pending retirements, particularly in key positions. Industry groups with 55% or more workers over 45 years old may need to be especially concerned.

Job Listing VolumeThese tables show job listing volume from Conference Board’s online job listing analysis tool, Help Wanted Online (HWOL). HWOL aggregates non-duplicated job listings from the internet. Both tables show increased job listing volume in the Metro Denver region.

Metropolitan Denver RegionOnline Job Posting

July2012 = 36,2762013 = 30,278

September2012 = 33,5152013 = 28,887

August2012 = 37,6372013 = 32,601

F astest Growing Occupational GroupsFastest Growing Occupational Groups & Occupations

These tables show where there is likely to be the most occupational need through 2017. This has implications for training programs and providers, as well as sector leaders.

8Labor Force & Economic Profile • Metropolitan Denver • 2014

SEducation GapEducation Gaps

An important part of keeping the local economy robust and growing involves cooperation of industry leaders around managing the labor force to ensure firms have a steady supply of skilled labor in the training pipeline. Sector efforts that convene leaders, human resources executives and operational experts around the concept of strategic labor force management have proven highly successful in helping job seekers get the training they need to enter sustainable employment, and employers in filling critical positions.

Confidence MeasuresThe Leeds School of Business, located at the University of Colorado at Boulder, publishes reports on expectations for state and national economies and its Business Confidence Index each quarter. Results of the most recent surveys are shown below. Note the downturns in all confidence measures in the fourth quarter of 2013. Since the surveys are done in anticipation of the quarter, the Leeds School report narrative suggests these downturns are due to the threat of government shutdown and potential default. That said, there have been eight quarters showing positive expectation in spite of the current downturn.

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