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A Labor Market Planning Document for Employers: Changing Demographics of the Milwaukee Metro Area Labor Force

A planning project of the University of Wisconsin-Milwaukee Employment and Training Institute, Milwaukee Department of City Development, and Milwaukee Economic Development Corporation, August 2003. [Report is also availalble in PDF format]

This report was prepared for employers, public policymakers, and educators to identify demographic trends that will affect the availability of labor for Milwaukee area companies in the next decade. Labor force changes are examined for the Milwaukee metropolitan area, utilizing detailed 2000 U.S. Census data and changes in hiring patterns (including occupational status by gender and race/ethnicity) based on reports filed by public and private employers with the U.S. Equal Opportunities Employment Commission.

Findings

  1. The research suggests that the labor shortages and skills gaps that have persisted in the late 1990's will be compounded by a relatively flat labor force in the future for the four- county Milwaukee metro area.

  2. The future strength of the Milwaukee area labor force lies in large part with its minority populations. Metro Milwaukee has the youngest African American population among the 100 largest metro areas in the U.S. Its Asian population is 4th youngest and its Latino population is 9th youngest. By contrast, metro Milwaukee's white population is older than most metro areas. The white population entering the labor force has declined, while baby boomers are retiring.

  3. While the City of Milwaukee experienced a 6 percent decline in population in the 1990s, the number of full-time year-round workers remained at about 168,000. Even with population growth in the suburban counties, the density of the workforce living in the City of Milwaukee is 10 to 15 times higher than that in the WOW (Waukesha, Ozaukee, and Washington) counties, where labor shortages are most acute.

  4. Companies locating in the City of Milwaukee have greater access to the full range of Milwaukee area workers, including those dependent on mass transit. While 93 percent of suburban/exurban workers drive or car pool to work, only 63 percent of workers living in the city's targeted "Renewal Community" drive or car pool to jobs with 23 percent using public transportation and 11 percent walking to work.

  5. Many private companies are taking advantage of the minority work force. Among larger private companies, 65 percent of net new hires between 1992 and 2000 were filled with minorities.

  6. Manufacturing firms have led the way in employing minorities in the outlying counties of the metro area. The manufacturing sector accounted for 88 percent of minority employment in larger companies in Ozaukee County, 56 percent of minority employment in Washington County, and 44 percent of minority employment in Waukesha County.

  7. Job location and transportation mismatches are most acute for semi-skilled and lesser skilled occupations. Almost half (48 percent) of service workers live in the City of Milwaukee, as do 46 percent of transportation and material moving workers and 41 percent of production workers. Many of these workers are heavily dependent upon public transportation and less likely to commute to outlying areas for jobs. These occupations continue to show labor shortages in the outlying counties.

  8. The most successful employment of minorities was seen in Milwaukee County government (where 38 percent of full-time employees were minorities), Milwaukee Public Schools (31 percent of employees were minorities), and the City of Milwaukee (30 percent of employees were minorities). However, minorities comprised less than 3 percent of government employees in suburban municipalities and the WOW counties and less than 3 percent of suburban school staff in the metro area.


Planning Document Contents

I. Demographic Trends

II. Workforce Density

III. Increase in Minority Employment in Private Industry

IV. Expansion of Minority Employment in Local Governments and Educational Institutions

V. Benchmarks for Assessing Minority Employment

Maps

Density of Full-Time, Year-Round Workers in the Milwaukee Metro Area
Density of Full-Time, Year-Round Workers in the Renewal Community
Renewal Community Workers Using Public Transportation
Production Workers in the Milwaukee Metro Area, 2000 Census
Transportation and Material Moving Workers in the Milwaukee Metro Area, 2000 Census
Construction and Maintenance Workers in the Milwaukee Metro Area, 2000 Census
Food Preparation and Service Workers in the Milwaukee Metro Area, 2000 Census
Building and Grounds Cleaning and Maintenance Workers in the Milwaukee Metro Area, 2000 Census
Healthcare Support Service Workers in the Milwaukee Metro Area, 2000 Census
Office and Administrative Support Workers in the Milwaukee Metro Area, 2000 Census
Sales Workers in the Milwaukee Metro Area, 2000 Census
Management Workers in the Milwaukee Metro Area, 2000 Census
Business and Financial Operations Workers in the Milwaukee Metro Area, 2000 Census
Education, Training and Library Workers in the Milwaukee Metro Area, 2000 Census
The Milwaukee Metro Area


I. Demographic Trends

Graph 1:

Age of Population in Metro Milwaukee, Year 2000

Graph 2:

Age of the African American and Hispanic Populations in Metro Milwaukee, Year
2000


II. Workforce Density

The City of Milwaukee and UWM Employment and Training Institute gained national attention with a purchasing power model, which demonstrates the competitive advantage of dense central city neighborhoods for retail trade. (See note 2.) These same densely populated neighborhoods show competitive advantages to employers with labor shortages, particularly in less skilled occupations and in neighborhoods heavily dependent on public transportation.


Table 2: Workforce vs. Population Changes in the 1990s
City of Milwaukee 1990 2000 % Change
Total Population 628,088 596,956 -6.2%
Workers Employed Full-Time, Year-Round 168,445 167,965 -0.3%
Workers Employed Less Than Full-Time, Year-Round 149,664 142,443 -4.8%


Table 3: Workforce Density: 2000 Census
Full-Time, Year-Round Total Workforce
Workers Per Square Mile Per Square Mile*
City of Milwaukee
1,750
3,233
Milwaukee County Suburbs
857
1,379
Ozaukee County
127
210
Washington County
105
165
Waukesha County
240
387
*Includes persons who worked at some time during the year.


Map 1: Density of Full-Time, Year- Round Workers in the Milwaukee Metro Area
Density of Full-Time, Year-Round Workers in the Milwaukee Metro Area


Employers with work sites in the City of Milwaukee Renewal Community (including the Menomonee Valley) have access to a large concentration of workers living nearby. In the 1.5 square mile RC neighborhoods just south of the Valley, there are 5,520 full-time, year-round workers. In the 7 square mile RC neighborhoods north of the Valley, there are 11,911 full-time, year-round workers. Companies in the Renewal Community who tap into this large, diverse, and experienced labor pool are eligible for a variety of federal tax deductions and credits.
Map 2: Density of Full-Time, Year-Round Workers in the Renewal Community
map

Work sites in the City of Milwaukee have greater access to the full range of Milwaukee area workers, including those dependent on mass transit. While 93 percent of suburban/exurban workers drive or car pool to work, only 63 percent of workers living in the Renewal Community drive or car pool to jobs with 23 percent using public transportation and 11 percent walking to work.
Map 3: Renewal Community Workers Using Public Transportation
map

Job location and transportation mismatches are most acute for semi-skilled and lesser skilled occupations. Almost half (48 percent) of service workers live in the City of Milwaukee, as do 41 percent of production workers and 36 percent of administrative support workers. These workers are heavily dependent upon public transportation and least likely to commute to outlying areas for jobs. The City of Milwaukee and the Renewal Community have a strong pool of production, transportation, and material moving workers - areas showing labor shortages in the outlying counties. (See note 3)


Table 4: Occupations of Employed Workers by Place of Residence: 2000
Place of Residence of the Workers:
Renewal City of MSA
Employed Civilian Population 16 Years and Over Community % Milwaukee % Minus City %
Total: 32,387 100.0% 256,244 100.0% 484,814 100.0%
Production, transportation, and material moving occupations: 9,221 28.5% 53,944 21.1% 71,909 14.8%
Production occupations 5,735 17.7% 34,496 13.5% 49,348 10.2%
Transportation and material moving occupations: 3,486 10.8% 19,448 7.6% 22,561 4.7%
Supervisors, transportation and material moving workers 17 0.1% 471 0.2% 900 0.2%
Aircraft and traffic control occupations 19 0.1% 78 0.0% 498 0.1%
Motor vehicle operators 1,066 3.3% 8,280 3.2% 10,619 2.2%
Rail, water and other transportation occupations 49 0.2% 604 0.2% 939 0.2%
Material moving workers 2,335 7.2% 10,015 3.9% 9,605 2.0%
Service occupations: 8,208 25.3% 47,570 18.6% 51,554 10.6%
Healthcare support occupations 1,386 4.3% 8,269 3.2% 7,892 1.6%
Protective service occupations: 621 1.9% 6,949 2.7% 5,599 1.2%
Fire fighting, prevention,+law enforcement, incl. supervisors 147 0.5% 4,058 1.6% 3,450 0.7%
Other protective service workers, including supervisors 474 1.5% 2,891 1.1% 2,149 0.4%
Food preparation and serving related occupations 2,901 9.0% 15,534 6.1% 18,082 3.7%
Building and grounds cleaning and maintenance occupations 2,163 6.7% 9,836 3.8% 9,650 2.0%
Personal care and service occupations 1,137 3.5% 6,982 2.7% 10,331 2.1%
Sales and office occupations: 7,399 22.8% 67,047 26.2% 135,055 27.9%
Sales and related occupations 2,551 7.9% 22,807 8.9% 57,543 11.9%
Office and administrative support occupations 4,848 15.0% 44,240 17.3% 77,512 16.0%
Management, professional, and related occupations: 5,654 17.5% 71,684 28.0% 188,086 38.8%
Management, business, and financial operations occupations: 1,791 5.5% 24,323 9.5% 78,628 16.2%
Management occupations 1,256 3.9% 14,651 5.7% 52,846 10.9%
Business and financial operations occupations: 535 1.7% 9,672 3.8% 25,782 5.3%
Business operations specialists 282 0.9% 5,150 2.0% 12,597 2.6%
Financial specialists 253 0.8% 4,522 1.8% 13,185 2.7%
Professional and related occupations: 3,863 11.9% 47,361 18.5% 109,458 22.6%
Computer and mathematical occupations 302 0.9% 5,211 2.0% 14,579 3.0%
Architecture and engineering occupations: 221 0.7% 3,764 1.5% 14,071 2.9%
Life, physical, and social science occupations 128 0.4% 1,810 0.7% 4,289 0.9%
Community and social services occupations 589 1.8% 5,076 2.0% 6,234 1.3%
Legal occupations 60 0.2% 1,903 0.7% 5,274 1.1%
Education, training, and library occupations 1,393 4.3% 15,126 5.9% 26,409 5.4%
Arts, design, entertainment, sports, and media occupations 427 1.3% 4,537 1.8% 9,217 1.9%
Healthcare practitioners and technical occupations: 743 2.3% 9,934 3.9% 29,385 6.1%
Health diagnosing, treating practitioners, technical 372 1.1% 6,088 2.4% 21,999 4.5%
Health technologists and technicians 371 1.1% 3,846 1.5% 7,386 1.5%
Construction, extraction, and maintenance occupations: 1,737 5.4% 15,500 6.0% 37,240 7.7%
Construction and extraction occupations: 1,031 3.2% 8,368 3.3% 19,541 4.0%
Supervisors, construction and extraction workers 77 0.2% 615 0.2% 2,106 0.4%
Construction trades workers 954 2.9% 7,732 3.0% 17,325 3.6%
Extraction workers 0 0.0% 21 0.0% 110 0.0%
Installation, maintenance, and repair occupations 706 2.2% 7,132 2.8% 17,699 3.7%
Farming, fishing, and forestry occupations 168 0.5% 499 0.2% 970 0.2%


Map 4: Production Workers in the Milwaukee Metro Area, 2000 Census
map
Production workers are heavily concentrated in the City of Milwaukee, where 41 percent reside.

Map 5: Transportation and Material Moving Workers in the Milwaukee Metro Area, 2000 Census
map
Almost half (46 percent) of all transportation and material moving workers in the metro area live in the City of Milwaukee.

Map 6: Construction and Maintenance Workers in the Milwaukee Metro Area, 2000 Census
map
Construction, maintenance and repair workers are spread throughout the metro area. About a third (30 percent) live in the City of Milwaukee.

Map 7: Food Preparation and Service Workers in the Milwaukee Metro Area, 2000 Census
map
Nearly half (46 percent) of workers employed in food preparation and food service jobs are city residents.

Map 8: Building and Grounds Cleaning and Maintenance Workers in the Milwaukee Metro Area, 2000 Census
map
Half (50.5 percent) of building and ground cleaning and maintenance workers live in the City of Milwaukee.

Map 9: Healthcare Support Service Workers in the Milwaukee Metro Area, 2000 Census
map
Half (51 percent) of all healthcare support workers (e.g. nurses aides, health assistants, orderlies) live in the City of Milwaukee.

Map 10: Office and Administrative Support Workers in the Milwaukee Metro Area, 2000 Census
map
Office and administrative support workers are living throughout the metro area, with 36 percent in the City of Milwaukee.

Map 11: Sales Workers in the Milwaukee Metro Area: 2000 Census
map
Sales workers tend to reside throughout the metro area, with 28 percent living in the City of Milwaukee.

Map 12: Management Workers in the Milwaukee Metro Area, 2000 Census
map
About a fifth (22 percent) of persons employed in management positions live in the City of Milwaukee, with heaviest concentrations on the east side.

Map 13: Business and Financial Operations Workers in the Milwaukee Metro Area, 2000 Census
map
The City of Milwaukee has about 14,650 workers employed in business and financial operations, about a fourth of the metro work force in this field.

Map 14: Education, Training and Library Workers in the Milwaukee Metro Area, 2000 Census

map
About 15,130 city residents worked in education, library and training occupations in 2000, comprising over a third (36 percent) of the metro labor force in these fields.

Map 15:The Milwaukee Metro Area
map


III. Increases in Minority Employment in Private Industry

Private companies with over 100 employees (or if having federal contracts or in financial institutions, with at least 50 employees) are required to file EEO-1 reports to the U.S. Equal Rights Commission on their labor force by occupation, gender and race/ethnicity. These reports were analyzed for Milwaukee area companies to determine changes in minority employment and occupational shifts. Variations are significant by gender and by racial/ethnic groups (i.e., African American, Hispanic, Asian, and Native American). Note: Net job growth is a result of company expansions (offset by reductions in some occupational areas) as well as increasing numbers of Milwaukee area companies with 100 or more workers. Net increases are over estimated when previously existing companies move into the size range requiring EEO-1 reporting.

Graph 3:

Graph of the Increases in the
number of minority employees in larger private companies in Milwaukee County

Graph 4:

Graph of the increases in the
number of minority employees in larger private companies in Waukesha, Ozaukee and
Washington Counties

Graph 5:

Graph of the increases
in the number of employees by race/ethnicity and gender in larger private companies in the
Milwaukee metro area

Graph 6:

Graph of net job growth by
industrial sector of larger private companies, 1992-2000

Graph 7:

Graph of net job growth by
occupation in larger private companies, 1992-2000


IV. Expansion of Minority Employment in Local Governments and Educational Institutions

Reports filed with the U.S. Equal Rights Commission on labor force by occupation, gender, and race/ethnicity were also reviewed for local governments (EEO-4), public schools (EEO-5), and institutions of higher education (EEO-6). Milwaukee governments have shown the notable progress in recruiting and retaining minorities at various occupational levels. Despite declines in the total number of employees working for the City of Milwaukee and for Milwaukee County, these governments, along with the Milwaukee Public Schools, employed the highest percentages of minority workers.

Graph 8:

Graph of change in minority
employees in City of Milwaukee government

Graph 9:

Graph of the number of minority
employees in Milwaukee County government

Graph 10:

Graph of the change in number of
minority employees in Milwaukee Public Schools

Graph 11:

Graph of the change in number of
minority employees in higher education

The Milwaukee labor market is expected to experience considerable challenges during the 2000s as older workers (including many professionals) retire and new employees are recruited for key management positions. An estimated 9,010 minorities are employed as professionals in the metro area. Minority professionals are heavily concentrated in government, health and social service sectors, and employed primarily in the helping professions of teaching, social work and health.

  • The number of minority professionals employed by the larger private firms in the metro area total 5,203, of which 80 percent are in Milwaukee County firms and 39 percent are employed in health and social service sectors. Another 3,807 minority professionals are employed by city and county government, MPS, and institutions of higher education.


    V. Benchmarks for Assessing Minority Employment

    Educational preparation of Milwaukee area youth will be essential if the next generation is to be prepared to move into professional, managerial, and technical positions that will need workers. The tables below offer benchmark data on the current employment of minorities (including African Americans, Hispanics, Asians, and Native Americans) by occupational groupings. As noted, employment patterns differ for males and females and among the various ethnic and racial groups by occupations and individual employers.


    Table 5: Employment of Minorities in Larger Private Companies in 2000
    Percent Minority by Occupational Grouping:
    Occupational Groupings Milwaukee County Companies Waukesha/Ozaukee/Washington Co. Companies
    Managers/officials
    9%
    5%
    Professionals
    10%
    6%
    Technicians
    16%
    5%
    Sales workers
    22%
    7%
    Office/clerical
    26%
    8%
    Craft workers
    16%
    10%
    Operatives
    36%
    20%
    Laborers
    43%
    31%
    Service Workers
    48%
    20%
    TOTAL WORKERS
    24%
    13%


    Table 6: Employment of Minorities in City and County Government in 2001
    Percent Minority by Occupational Grouping:
    Occupational Groupings City of Milwaukee Govt. Milwaukee County Govt.
    Administrative/officials 20% 20%
    Professionals 25% 28%
    Technicians 26% 32%
    Protective Services 32% 37%
    Paraprofessionals 40% 72%
    Administrative support 38% 43%
    Skilled crafts 23% 18%
    Service Maintenance 39% 38%
    TOTAL FULL-TIME WORKERS 31% 38%


    Table 7: Percent Minorities in Milwaukee Public Schools and Other School Districts of the Metro Area, 1998
    All Other Public School
    Occupational Groupings Milwaukee Public Schools Occupational Groupings Districts in 4-County Area
    Administrative/officials 31% Administrative/officials 2%
    Principals 56% Principals 3%
    Assistant principals 60% Assistant principals 6%
    Elementary teachers 23% Elementary teachers 2%
    Secondary teachers 29% Secondary teachers 1%
    Other teachers 24% Other teachers 2%
    Guidance 36% Guidance 3%
    Psychological 16% Psychological 1%
    Librarians/AV 11% Librarians/AV 1%
    Consultants 43% Consultants 3%
    Other professionals 37% Other professionals 3%
    Teachers aides 82% Teachers aides 4%
    Technicians 19% Technicians 2%
    Clerk/secretarial 42% Clerk/secretarial 5%
    Service workers 53% Service workers 5%
    Skilled craft 29% Skilled craft 3%
    Laborers/unskilled 26% Laborers/unskilled 4%
    TOTAL 31% TOTAL 2%


    Table 8: Percent Minorities in Higher Education in the Milwaukee Area, 1999
    Occupational Groupings Institutions of Higher Education
    Executive/administrative
    11%
    Faculty
    16%
    Other professionals
    14%
    Clerical
    19%
    Technical/paraprofessional
    17%
    Skilled crafts
    11%
    Service/maintenance
    43%
    TOTAL FULL-TIME WORKERS
    18%



    Notes

    1 Mary Stott, Urban Atlas (Milwaukee Department of City Development, February 2003).

    2 John Pawasarat and Lois M. Quinn, Exposing Urban Legends: The Real Purchasing Power of Central City Neighborhoods (Washington, D.C.: The Brookings Institution, June 2001). Purchasing power profiles for 44 commercial districts in the City of Milwaukee and all 34 residential zipcode areas of Milwaukee County are posted on the City of Milwaukee website at www.mkedcd.org/PurchasingPower.

    3 For listings of specific job titles included in each occupational category, see the U.S. Census Bureau website at www.census.gov/hhes/www/ioindex.

    4 Private employers with more than 100 employees are required to file EEO-1 Employee Information Reports annually. Companies with at least 50 employees and who have a government contract of $50,000 or more or serve as a depository of government funds are also required to file. In Milwaukee County the number of companies filing EEO-1 reports totaled 851 in 1992 and 897 in 2000. In the WOW (Waukesha, Ozaukee, and Washington) counties, reporting companies increased from 438 in 1992 to 630 in 2000. Net increases in employment will be overstated when previously existing firms move into the size range (i.e., over 100 employees) requiring EEO-1 reporting.

    This study was supported by the Milwaukee Economic Development Corporation and the University of Wisconsin and authored by John Pawasarat and Lois M. Quinn. For more information, contact John Pawasarat, Director, Employment and Training Institute, School of Continuing Education, University of Wisconsin-Milwaukee, 161 W. Wisconsin Avenue, Suite 6000, Milwaukee, WI 53203. Phone (414) 227-3385.


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