Workforce Issues

The Central Illinois Workforce Development Board recognizes that current, comprehensive local labor market information is the foundation for successful workforce and economic development. Labor markets and local economies can change rapidly. To have a better understanding of these changes and to make informed and successful decisions, the board and the City of Peoria Workforce Development Department recently worked with ERISS, Inc. to conduct a major labor market study of local businesses in Marshall, Peoria, Stark, Tazewell, and Woodford counties. 

Throughout February and March, Katrina Rewerts, Talent Force 21 coordinator, worked with ERISS to contact 3,657 employers with five or more employees. Of those 3,657 employers, 38.15 percent-or 1,395-completed the labor market survey.

Brief highlights of the survey’s findings are outlined below.

• Current Openings. Employers were asked to report anticipated hiring for the next 90 days for each occupation surveyed. This process effectively uncovers current (and often unadvertised) openings for the region. The survey uncovered more than 1,500 job openings in the central Illinois area. 
  
  
• Growth. Employers were asked to report the number of employees at their company now, and to project how many employees they would have at the same time next year. The industry with the highest projected relative growth rate for the next 12 months was business services, which expected to grow by 9 percent over the next 12 months. The education industry reported an expected reduction of 1 percent over the next 12 months.
  
  
• Turnover. For each occupation surveyed, employers were asked to report an annual turnover rate. The lodging industry was most impacted by occupational turnover, with a reported 38 percent annual turnover. Government employers experience the least amount of turnover, with annual turnover of nearly 0 percent.
  
  
• Demand. The industries with the greatest projected relative occupational demand for the next 12 months are business services and lodging.
  
  
• Difficulty Hiring. The government reported the greatest difficulty finding both experienced and non-experienced employees. Government industry employers report taking a month longer than any other industry in the central Illinois area to hire workers. Employers in the construction and lodging industries reported the shortest time to fill openings.
  
  
• Wages. Of the occupations surveyed, the occupation with the highest average wage for experienced new hires was pharmacist ($32.80/hr) and the occupation with the highest average wage for non-experienced new hires was school administrator (elementary and secondary) ($24.90/hr). Five of the 10 top-paying surveyed occupations for experienced employees are in the construction industry. For non-experienced new hires, four of the 10 top-paying occupations are in the education field.
  
  
• Anticipated Changes. Employers were asked whether they anticipated any changes in staffing levels or company location within the next one to three years. Twenty-eight percent of the firms surveyed reported they anticipate either expanding or relocating within the next three years.
  
  
• Deficiencies. Employers were asked what they perceive to be the two most common skill deficiencies among recently hired workers. The most frequently reported skill deficiencies were technical/computer skills (25 percent), followed closely by customer service skills (21 percent) and teamwork skills (19 percent). 
  
  
• Retirement. Employers were asked to estimate the number of employees retiring in the next three, five, and 10 years at their company. Most industries average only 2 to 4 percent of their workforce retiring in the next five years. Approximately 7.5 percent of the current workforce is estimated to retire in the next 10 years, with the most pronounced retirement rate in the education industry. Education employers reported 19 percent of their employees were expected to retire within the next 10 years.

This information is valuable to central Illinois because it begins to highlight some of the workforce changes this community will be facing over the next five to 10 years. IBI