The Labor Market Assessment Tool and English Language Skill: Greater Boston's Foreign-Born Workforce...

The Labor Market Assessment Tool and English Language Skill:

Greater Boston’s Foreign-Born Workforce and the Role of Language in the Labor Market

Mark MelnikSenior Research Associate

Boston Redevelopment AuthorityResearch Division

June 5, 2008

The Labor Market Assessment Tool (LMAT)-What is it?

• An interactive computer-based program developed as a partnership between the BRA Research Division and the Center for Urban and Regional Policy (CURP) at Northeastern University.

• Program developers:

• BRA’s Research Director Alvaro Lima;

• CURP’s Director Barry Bluestone;

• Alan Clayton-Matthews (a CURP Senior Fellow and an Associate Professor of Public Policy at the University of Massachusetts Boston);

• BRA Senior Research Associate Mark Melnik.

The Labor Market Assessment Tool (LMAT)- What does it do?

• Produces the distribution of occupations by educational, skill, knowledge, and training requirements by industry.

• Estimates wages.• Provides employment projections by educational, skill,

knowledge, and training requirements by industry for future labor market scenarios.

• Can be used to:• Estimate the difference between the educational attainment of the current

labor pool and the workforce requirements of the current labor market;• Estimate both the labor demand and the occupational characteristics of the

labor supply.

• Combines various secondary data sources related to the labor market and workforce.• O*NET, OES, SF-3, Massachusetts DUA state projections, BLS national

projections.

LMAT Data Sources

Source: Introducing the Labor Market Assessment Tool, Boston Redevelopment Authority Research Division, November 2007.

The Labor Market Assessment Tool (LMAT)- What is unique about it?

• Contains data on:• Over 800 occupational titles;• Close to 1200 industrial classifications;• Approximately 140 different measures of job requirements;• Two different sets of labor market projections for the year 2014.

• LMAT outputs can be linked with any other sources that use the Standard Occupational Classification (SOC) and/or North American Industrial Classification (NAICS) Systems.

• It is an all-in-one source for looking at:• Occupational requirements by industry in the labor market; • Critical demographic and human capital characteristics of the labor

force.

• Can be updated frequently to use the most-up-to-date versions of the OES, O*NET, BLS and DUA labor market projections and Census data.

The Labor Market Assessment Tool (LMAT)- What can it be used for?

• Simulate different labor market scenarios.• Evaluate the compatibility of a single industry with the

population of the city.• Analyze a set of complementary industries within a

development plan.• Compare labor supply and demand within the labor market for

various neighborhoods in Boston or Boston as a whole.• Isolate the importance of key skills in selected industries.• Plot wage distributions for occupations by education, skill, or

training requirements.• Identify the typical training time associated with occupations

and industries in the labor market. • Help inform curriculum at community colleges and workforce

development programs.

LMAT in Action-Language Skills in the Labor Market

• The changing demographic makeup of our region.

• The increased demand for technical and social skills in the labor market due to shifts in the key industrial sectors in the economy.

• The characteristics of Metro Boston’s current workforce.

• The relative importance of language skill in the labor market today and in the future.

Proportion of the Foreign-Born Population1850-2006

0%

5%

10%

15%

20%

25%

30%

35%

40%

1850

1860

1870

1880

1890

1900

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

2006

BostonMassachusetts United States

Source: US Census Bureau, BRA Research Division Analysis

Regions of Origin for Boston’s Foreign-Born Population: 1860-2006

Regions of Origin – Boston (1860 to 2006)

78%

21%

1% 0%

0%2%

20%

77%

Europe North America

Asia Latin America

Africa Other Countries

Countries Not Reported

3%

28%

38%

20%

0%7%4%

Source: http://www.census.gov/population/www/documentation/twps0029/twps0029.html#data, 2000 American Community Survey, BRA Research Division Analysis

1860 – 1900 1910 – 1960 1970 – 2006

Regions of Origin for Boston’s Foreign-Born Population: 1970-2006

Regions of Origin – Boston (1970 to 2006)

52%

9%

12%

5%1%

19%

Europe North America

Asia Latin America

Africa Other countries

Countries Not Reported

2%19%

45%

23%

0%9%2%

Source: US Census Bureau, 2006 American Community Survey, BRA Research Division Analysis

1970 – 1980 1990 – 2006

Racial Composition of Boston1980-2006

Race and Ethnicity in Boston (1980 to 2006)

68%

22%

3%6%

1%

24%

11%

59%

0% 0%1%5%

WhiteBlack/ African AmericanLatinoAsianNative AmericanOtherMulti-racial

50%

24%

8%2% 1%

15%

0%

*The Census did not start recording data on individuals who identified themselves as “multiracial” till 2000.Source: Liming L., Perkins, G., Goetze, R., Vrabel, J., Lewis G., & Consalvo, R., (2001) Boston’s Population – 2000, Changes in Population, Race, Ethnicity in Boston and Boston’s Neighborhoods – 1980 to 2000. Boston: Boston Redevelopment Authority, 2006 American Community Survey, Boston Redevelopment Authority Research Division Analysis.

1980 1990 2006*

The Labor Market and the Workforce

• In recent years, there has been a fundamental shift in the economy.

• Increased importance of service and knowledge sectors.

• Decline in the manufacturing sector.• Advancements in technology.• Globalization.

• There is greater need for a workforce with advanced levels of education, technical, and social skill than in the past.

• Human capital characteristics of the population are of critical importance when considering the economic health of a region.

Characteristics of Metro Boston’s Workforce (2006)

• There are approximately 1.9 million people in Metro Boston workforce.

• There are approximately 59,000 more workers in Greater Boston now than in 2000.

• Metro Boston’s workforce is among the highest educated in the nation.

79%

1%1%

6%

7%

6%0%

WhiteAfrican AmericanHispanicAsianNative AmericanOtherTwo or more

0%

5%

10%

15%

20%

25%

30%

8th Gradeor less

HighSchool

HighSchool

Graduate

SomeCollege

Assoc.Degree

Bach.Degree

Post-Graduate

Educational Attainment-Greater Boston’s Workforce-2006

Source: 2006 American Community Survey, BRA Research Division Analysis

Metro Boston’s Native Born and Foreign Born Workforce

200016.3%

83.7%

2006

79.2%

20.8%

Native BornForeign Born


Nativity Breakdown-Metro Boston’s Workforce- 2000 and 2006

• Between 2000 and 2006, Metro Boston’s foreign-born workforce increased by almost 94,000 people.

• This amounts to an absolute increase of approximately 32%.• While it is expected to see growth in the foreign-born population, it is

surprising to see this amount of change in a short period of time.

Comparing Educational Attainment of the Native and Foreign Born Workforces in Metro Boston

1%

5%

21%

17%

7%

29%

20%

9% 9%

25%

13%

6%

18%

20%

0%

5%

10%

15%

20%

25%

30%

8th Gradeor less

Some HighSchool

HighSchool

Graduate

SomeCollege

Associate'sDegree

Bachelor'sDegree

Post-gradute

Native Born Foreign BornEducational Attainment by Nativity Status-Metro Boston’s Workforce


• Overall, there are significant differences in the education levels of Metro Boston’s native-born and foreign-born workforces.

• 18% of Metro Boston’s foreign-born workforce has less than a high school education, compared to 6% of the native-born workforce.

• Close to half of the native-born workforce has a 4-year college degree or higher.

• A significant portion of the foreign-born workforce has advanced education.

Defining English Proficiency in the Workforce• Previous research has used Census data to identify language

ability in the labor force.• MassINC’s 2005 report The Change Face of Massachusetts.• The BRA Research Division’s 2007 report, Language Skill

Requirements in the Labor Market.

• The Census asks respondents to self-evaluate their English language ability.

• We define individuals who report that they speak English “not well” or “not at all” as Limited English Proficient (LEP)

• We define individuals who report that they speak English “only”, “very well”, or “well” as English Proficient (EP)

The LEP and EP Workforces

English Language Skills-Metro Boston’s Workforce- 2000 and 2006


20003.1%

96.9%

2006

95.3%

4.7% EP LEP

• In 2000, close to 55,000 members of Metro Boston’s workforce had limited English language skills.

• By 2006, close to 88,000 members of Metro Boston’s workforce could be defined as having limited English language skills.

• This change marks an absolute increase of 37%.

Racial and Ethnic Breakdown of the LEP and EP Workforces

• Overall, the racial and ethnical background of the LEP workforce is much more diverse than the EP workforce.

• Over 59% of Metro Boston LEP workforce is either Hispanic/Latino or Asian• There are a large number of whites in the LEP group.

• These are mainly immigrants hailing from European countries.

Race and Ethnicity of the LEP and EP Workforces

28%

7%

38%

22%

5%0%

81%

6% 5% 6%1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

White AfricanAmerican

Hispanic Asian Other Two or more

% of LEP % of EP


Educational Attainment of the LEP and EP Workforces

28%

17%

33%

8%

2%

9%

3%1%

5%

22%

17%

7%

27%

15%

0%

5%

10%

15%

20%

25%

30%

35%

8th gradeor less

High School High SchoolGraduate

SomeCollege

Assoc.Degree

Bach.Degree

Post-gradute

% of LEP % of EP


Educational Attainment by LEP and EP Workforces

• There are significant differences in the educational attainment levels of the LEP and EP workforces in Metro Boston.

• 45% of the LEP workforce has less than a high school diploma, compared to 6% of the EP workforce.

• Interestingly, 12% of the LEP workforce has a college degree.• These are mostly likely people who earned degrees in their home country.

Summary of Workforce Characteristics

• Between 2000 and 2006, Metro Boston’s labor force grew approximately 3%.

• During that same time period, Metro Boston’s foreign-born and LEP workforces grew at a much faster rate.– The foreign-born workforce grew 32%– The LEP workforce grew 37%

• While growth in these populations is expected, the degree of change in a short period of time is surprising.

• These results lend support to assertions that English language proficiency will become a significant economic issue as the foreign-born population begins to fill critical job vacancies.


Method for Estimating Language Skill Requirements

• Employment data from the Bureau of Economic Analysis (BEA).

• Applied the 2014 projected growth rate for industries in the state provided by the Massachusetts Department of Unemployment Assistance (DUA) to the BEA’s industry employment numbers for Metro Boston.

• We selected 3 language-based variables and aggregated their scores into a language skill scale.

• Speaking, reading, writing.• 35 point scale.

• All occupations were split into one of four language quartiles.• Low • Medium-low• Medium-high• High

Characteristics of the 2004 Labor Market

All Jobs by Language Skill Requirement in Metro Boston-2004

Low

Employment19%

Average wage $25,043

Medium-Low

Employment30%


Medium-High

Employment34%


High

Employment17%


Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.

• Overall, 64% of all jobs in the labor market fall in the medium-low or medium-high language skill categories.

• There is a clear connection between language skill requirements and salary.• The highest language skill category pays almost 3 times more

than the lowest language skill category. • While there are jobs available to people with limited language

skill, these jobs pay dramatically less than jobs requiring even modest language skills.

Characteristics of Expected New Jobs for 2014

Projected New Jobs (2004-2014) by Language Skill Requirement

Low

3% Growth

7% of New Jobs

Average wage$17,998

Medium-Low

6% Growth

20% of New Jobs

Average wage$29,079

Medium-High

11% Growth

41% of New Jobs

Average wage$57,930

High

16% Growth

32% of New Jobs


Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.

• The number of new jobs created in our region available to people with limited language skills will be severely limited.

• 93% of new jobs created in the region will require at least modest language skills.

• Projected growth is much smaller in occupations requiring low and medium-low language skill as compared to medium-high and high language skill.

• New jobs in the highest language skill category pay more than 4 times better than new jobs in the lowest language skill category.

Language Skill Requirements in the Labor Market-Current and New Jobs

Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis .

Language Skill Low Medium-Low Medium-High High

Wages-Current Jobs

$25,043 $33,145 $53,680 $71,117

Wages-New Jobs $17,998 $29,079 $57,930 $74,109

Conclusions• These data demonstrate that the foreign-born workforce and the

workforce with limited English skills continues to grow in our region.• Consistent with recent trends and previous research.

• Population trends indicate immigrants will likely be relied on to fill critical job vacancies in our region in the future. • Human capital concerns.

• At the same time, we see significant disparities in the proportion, pay, and growth rates of occupations requiring low language skill and those that require advanced language skill.• Quality of life issues for those with limited English skills.

• These data underscore the importance of ESOL courses.• High demand for these classes—large waiting lists.

• Language skills in Greater Boston’s foreign-born workforce is both an economic development issue for the region, as well as a quality of life issue for a growing segment of the region’s population.

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