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From 1980 to 1990 the percentage of younger adults, those 18-20, declined 17.8% and those 21-24 declined 15.1%. The percentage of adults, 35-54 increased 32.3%. The population as a whole grew just 3.9% compared with 4.0% growth for the state and 9.7% for the nation. The aging population and workforce were commonly mentioned in planning documents through the period 1988-90. From 1990 to 1998, the population age 55+ has increased by 11.1%, or slightly lower than the 12.7% growth rate during this period.

During the ten years following the 1980 Census, the minority population of the region grew 38% compared to a statewide increase of 14%.


B. Economic and Business Conditions

Labor Market Condition Employment Trends:

Labor Force Trends
  1990 1998 % Change
Lake 2,775 3,200 15.3%
Mason 12,425 14,500 16.7%
Mecosta 16,500 17,850 8.2%
Newaygo 17,650 20,575 16.6%
Osceola 8,900 10,950 23.0%
Michigan Works! Region 58,150 67,075 15.3%
State of Michigan       9.4%
National      9.4%

[PY2000 Annual Planning Information Report]

The labor force is growing at a faster rate than the population (15.3% versus 12.7% from 1990 to 1998). It appears that the older population may still be increasing at about the same rate as from 1980 to 1990, but growth in the workforce and families is increasing faster.

So, how many of these people are employed, and where are they working?

  1990 1998
Employed Workforce 52,875 63,050 
Employed in Region 35,400 66.95% 44,625 70.78%

[PY2000 Annual Planning Information Report]


A larger percentage of the employed labor force is employed in the area, but a significant percentage of area workers leave the region to go to work in adjacent or nearby labor market areas. While employment has increased by 19.2% from 1990 to 1998, the number of workers employed in the region has increased by 26.1%.



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While the data is from the 1990 Census, the following chart shows how employees in our region get to work and their mean travel time.

Commuting to work
County Workers 16 & Older Drove Alone Car Pooling Using Public Transportation Using Other Means Walk or Work at Home Mean Travel Time
(in minutes)
Lake 2,239 75.9% 14.4% .4% 1.8% 7.2% 22.9
Mason 10,007 77.4% 10.8% .5% 1.0% 9.7% 14.5
Mecosta 14,677 70.2% 11.9% .4% .9% 16.1% 18.9
Newaygo 14,822 75.5% 15.1% .1% .9% 8.0% 25.4
Osceola 7,859 82.6% 9.1% .5% 1.2% 6.2% 14.3


What does the labor supply look like?
The number of unemployed individuals has declined from 5,375 in 1990 to 4,250 in 1998. In recent years, the number of people unemployed has risen slightly, even though the percentage of unemployment has declined. As the labor force is growing faster than the population, for most years it also grows slightly faster than area employment.

The problem is not that workers are not available. The problem reported by employers in a 1997 Michigan Works! survey is, too many of the workers available do not have the basic academic or work skills necessary for the jobs available. This skills mismatch is expected to continue as more high skilled jobs become available in the region.

AOf the two major local area supply components (total unemployed and school graduates), total unemployed is higher, while the number of graduates is lower. In the current tight labor market, this may point to a continued shortage of workers in certain occupational classifications.@ (PY2000 Annual Planning Information Report)

The Occupational classifications effected are likely to be those requiring higher skills.

Based on data from Michigan Department of Education, the number of graduates from Lake, Mason, Mecosta, Newaygo, and Osceola county high schools has declined between 1996 and 1998.@ (PY2000 Annual Planning Information Report)

A strong economy has greatly reduced the unemployment rate in our region. The following table illustrates this condition and how the various counties in the region compare with the rest of the state.

County Unemployment Rate Unemployment Rate
1998 Ranking 1999 Ranking
Washtenaw 1.9 1 1.8 1
  Midland 3.1 10 2.9 8
  Grand Traverse 3.6 20 3.6 21
  Michigan 3.9   3.8  
  Mecosta 4.0 26 4.1 26
  Berrien 4.4 30 4.0 25
  Charlevoix 5.1 40 5.2 41
  Osceola 6.1 50 5.6 45
  Mason 6.5 56 6.2 52
  Alpena 7.0 60 6.5 57
  Newaygo 7.1 61 6.9 62
  Clare 7.8 70 7.9 71
  Lake 8.1 74 8.1 73
  Keweenaw 9.7 80 8.8 77

[Source: Michigan Department of Career Development/Employment Service Agency]


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[Employment Trends by Industry Sector]

28.3% of the employment in the West Central region is in Goods Producing industries, including construction and mining operations and manufacturing. This remains somewhat above the state average of 25.7% working in the goods producing area. Employment in the Service Producing area at 71.7% is somewhat lower in the West Central region than the 74.3% for the state as a whole. These ratios are influenced by the higher proportion of workers in government, 28.2% for West Central versus 14.6% for the state. The high governmental employment figure is partially attributed to Ferris State University, whose employees count as governmental employment as Ferris is a state institution.

Goods producing occupations, particularly in construction is growing much faster than the regional average, however this represents about 850 workers. The growth in the service area is greatest in the Retail Trade area (1,200 jobs from 1993 to 1998) and 1,225 jobs in the general services area. The trend continues with a growth of 1,025 jobs projected in the general service area from 1996 to 2006, which is a growth rate of 10.5%. Other occupations have larger percentage growth rates but smaller employment numbers. The second largest growth in terms of the number of workers in the Professional Speciality area where a growth of 935 jobs is anticipated from 1996 to 2006. However, many of the openings in this area are expected to be replacement workers for those who retire or leave this field.

Largest numerical growth is expected in the Service Area and includes cashiers, general managers and sales workers.



Employment Distribution by Industry Division - 1998

Industry Michigan Works! West Central Michigan United States
Level Percent Level Percent Level Percent
Total Employment 44,625 100.0 4,515,000 100.0 125,830,000 100.0
Goods Producing 12,625 28.3 1,160,000 25.7 25,255,000 20.1
Const. & Mining 1,975 4.4 194,000 4.3 6,539,000 5.2
Manufacturing 10,850 23.9 966,000 21.4 18,716,000 14.9
Service Producing 32,000 71.7 3,358,000 74.3 100,575,000 79.9
Tran., Comm., Util. 1,375 3.1 178,000 3.9 6,549,000 5.3
Wholesale Trade 860 1.9 236,000 5.2 6,825,000 5.4
Retail Trade 8,925 20.0 831,000 18.4 22,475,000 17.9
Fin., Ins., Real Est. 1,225 2.7 210,000 4.7 7,341,000 5.8
Services 7,975 17.9 1,242,000 27.5 37,524,000 29.8
Government 11,675 28.2 658,000 14.6 19,882,000 15.8

[Source: Michigan Department of Career Development Office of Labor Market Information]



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Area Industry Employment Trends - 1993 - 1998 - West Central Michigan


Industry 1993 Employment 1998 Employment 1993-1998 Percent Change
Total Employment 40,250 44,625 10.9
Goods Producing 11,025 12,825 16.3
Const. & Mining 1,325 1,975 49.1
Manufacturing 9,700 10,650 9.8
Service Producing 29,225 32,000 9.5
Trans., Commun., Util. 1,375 1,375 0.0
Wholesale Trade 700 850 21.4
Retail Trade 7,725 8,925 15.5
Fin., Ins., Real Est. 1,175 1,225 4.3
Services 6,750 7,976 18.1
Government 11,500 11,675 1.5

[Source: Michigan Department of Career Development Office of Labor Market Information]


Top Ten Private Industry Employers - Third Quarter 1998 - West Central Michigan:

Industry Number of Employees Percent of Total
Eating and Drinking Places 2,968 8.9
Health Services 2,690 5.1
Food and Kindred Products 2,571 7.8
Food Stores 1,627 4.9
Industrial Machinery and Eqpt. 1,595 4.8
Rubber, Misc. Plastic Products 1,369 4.1
Fabricated Metal Products 1,113 3.4
Social Services 1,043 3.1
Electronic, Electric machinery 1,022 3.1
General Merchandise Stores 989 3.0

[Source: Michigan Department of Career Development Office of Labor Market Information]



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Employment Forecast by Major Occupational Categories - 1995 - 2006 - West Central Michigan:

  Occupational Category   1995   2006 Employment Growth
Number Percent
Total, All Occupations 58,975 63,670 4,695 8.0
Executive, Administrative and Managerial 6,460 7,160 700 10.9
Professional Specialty 7,780 8,715 935 12.0
Technicians and Related Support 1,215 1,400 185 15.5
Marketing and Sales Occupations 5,180 5,695 515 9.9
Administrative Support, including Clerical 7,580 8,015 435 6.7
Service 9,695 10,720 1,025 10.5
Agriculture, Forestry, Fishing and Related 4,540 4,260 -280 -6.1
Precision Production, Craft and Repair 7,020 7,620 600 8.6
Operators, Fabricators and Laborers 9,510 10,080 570 6.0

[Source: Michigan Department of Career Development Office of Labor Market Information]


Annual Job Openings by Major Occupational Categories - 1995 - 2006 - West Central Michigan

Occupations Total Openings Growth Replacement
Total, All Occupations 1,892 539 1,353
Executive, Administrative and Managerial 211 75 136
Professional Specialty 253 97 156
Technicians and Related Support 36 15 21
Marketing and Sales Occupations 204 55 149
Administrative Support, including Clerical 186 53 133
Service 400 109 291
Agriculture, Forestry, Fishing and Related 102 4 98
Precision Production, Craft and Repair 209 63 146
Operators, Fabricators and Laborers 291 68 223

[Source: Michigan Department of Career Development Office of Labor Market Information]



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Occupations with Largest Numeric Growth - 1998 - 2008 - West Central Michigan:

  Occupations Employment Changes
Number Percent
Cashiers 225 18.2
General Managers and Top Executives 150 13.4
Salespersons, Retail 150 14.9
Automotive Mechanics 110 20.5
Food Preparation Workers 110 14.8
Home Health Aides 105 39.3
General Office Clerks 100 14.1
Hairdressers and Hairstylists 95 14.9
Marketing/Sales Supervisors 95 6.5
Registered Nurses 85 14.6

[Source: Michigan Department of Career Development Office of Labor Market Information]


Trends in Worker Earnings

Weekly Wages
Year Lake Mason Mecosta Newaygo Osceola State
1995 $313.49 $431.67 $346.78 $418.55 $459.95 585.45
1996 $320.05 $435.26 $357.23 $432.38 $459.81 $603.60
1997 $338.23 $455.10 $379.20 $447.05 $494.10 $628.36
1998 $339.71 $478.87 $397.81 $468.07 $527.61 $665.10
1999 $376.07 $478.94 $398.47 $490.20 $540.47 $690.26
Source: Michigan Department of Career Development (ES202)


Annual Wages
  Lake Mason Mecosta
Year # Employers* Annual Wages # Employers* Annual Wages # Employers* Annual Wages
1995 154 $17,247,086 668 $187,298,487 642 $134,126,670
1996 159 $17,940,793 676 $185,593,317 674 $143,777,295
1997 150 $19,029,996 694 $199,142,486 692 $151,909,999
1998 171 $20,102,884 765 $220,998,320 746 $162,799,875
1999 178 $24,757,321 780 $218,915,466 769 $165,516,861
  Newaygo Osceola State
1995 646 $159,164,866 376 $141,543,919 212,046 $109,942,590,389
1996 663 $168,177,245 398 $153,168,887 219,000 $115,917,721,817
1997 674 $176,905,142 410 $165,720,930 222,636 $121,867,847,776
1998 731 $188,995,747 452 $179,100,001 241,560 $131,916,146,899
1999 759 $213,659,996 465 $182,567,123 243,379 $139,246,979,598
1999 #Employers* Total Annual Wages
5 County Totals 2,951 $805,416,767
* Represents employers whose employees are covered by the State Unemployment Insurance system.


Median Household Income   Per Capita Personal Income

   1995     1987 1997 Percent Change
Lake $21,038 Lake $9,762 $14,299 46
Mason $29,664 Mason $11,947 $19,283 61
Mecosta $28,873 Mecosta $9,775 $15,892 63
Newaygo $31,923 Newaygo $11,528 $16,848 46
Osceola $28,396 Osceola $10,533 $16,969 61
Michigan    Michigan $15,899 $24,956 57

[US Department of Commerce     US Department of Commerce Bureau of Economic Analysis]



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Supply-Demand Analysis

The supply and demand of the labor force and occupational skills are inter-woven aspects of the area labor market. There are at least two key questions addressed in this analysis.

  1. Is the labor supply (number of available workers) sufficient to meet the needs of employers? Are there enough workers?
  2. Is the labor supply of workers who have the skills needed for jobs, sufficient and readily available?

In 1998, the area labor force for the five county region (by place of residence) is 67,075, of which 63,050 people (by place of residence) are working, leaving 4,025 persons reported as unemployed. Employment in the five county region (by place of employment) is 44,625. This means that 18,425 workers or a net 29% commute to work outside of our five county region.

From 1996 to 2006, employment in the region is expected to increase by an average of 1,892 jobs per year (PY2000 Annual Planning Information Report). The labor force has expanded by an average of 1,116 workers annually from 1990 to 1998, and is expected to continue to expand at this rate or greater for some time to come.

At this rate the area will have an absolute labor shortage in about six years, if we assume a perfect world where all of the workers available live where the jobs are, and have the skills required for those jobs.

Is the labor supply of workers who have the skills needed for jobs sufficient and readily available?

Where are the jobs and what skill levels are needed for the occupational areas?

The employment forecast by Major Occupational Areas for the ten year period from 1996 through 2006 show the following number of openings projected for this period:

  Employment Growth 10 years Annual Openings (Including replacement workers)
Executive/Administrative/Managerial 700 211
Professional Specialty 935 253
Technicians & Related Support 185 35
Marketing & Sales 515 204
Administrative Support including Clerical 435 186
Service 1,025 400
Agriculture, Forestry, & Related * -280 * 102
Precision Production, Craft & Repair 600 209
Operators, Fabricators, Labors 570 291
Total:   4,695 1,874

[Source: PY2000 Annual Planning Information Report<]BR>
* Most openings are to replace workers retiring or leaving the occupation.


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Occupations commonly require education or training at these levels.

PS = Post Secondary
B = 4 Year Degree (Example PS/B & A) = Post Secondary 2 to 4 years
A = Associates Degree
T = Specialized Training
O = Training on the Job
AP = Apprenticeship

Employment Sector Often Requires
Executive/Administrative/Managerial PS/B & A
Professional Specialty PS/B & A
Technicians & Related Support PS/B & A & T
Marketing & Sales PS/A & O
Administrative Support including Clerical PS/A & O
Service PS/A & O
Agriculture, Forestry, & Related PS/A & O
Precision Production, Craft & Repair PS/A & AP & O & T
Operators, Fabricators, Labors T & O & AP


Job Skills
Information from the PY2000 Annual Planning Information Report list skill requirements given in the O*NET which is the US Department of Labor Occupational Information Network replacing the Dictionary of Occupational Titles. Information is listed by key skills, which are in addition to the Job Specific Skills a worker needs to perform these jobs. There is considerable duplication of Key Skills. Those at the higher levels of education often function at a higher level for these skills. Items are listed in the order of importance for occupations by educational requirement.

Key Skills for Occupations Requiring at Least a Bachelor=s degree:
Reading Comprehension
Mathematics
Science
Speaking
Critical Thinking
Information Gathering
Judgment and Decision Making
Problem Identification
Active Listening
Writing
Active Learning
Solution Appraisal



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Key Skills for Occupations Requiring an Associates Degree
Reading Comprehension
Information Gathering
Science
Writing
Mathematics
Problem Identification
Critical Thinking
Active Listening
Speaking
Information Organization

Key Skills for Occupations Requiring Post-Secondary Vocational or Technical Training
Problem Identification
Reading Comprehension
Product Inspection
Information Gathering
Operation and Control
Equipment Selection
Information Organization
Active Listening
Operation Monitoring
Judgment and Decision Making

Key Skills for Occupations Requiring Moderate-Term On-the-Job Training
Operation and Control
Speaking
Product Inspection
Reading Comprehension
Problem Identification
Active Listening
Equipment Selection
Mathematics
Information Gathering
Information Organization



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Key Business Conditions

Business Retention and Expansion Results

Business Retention and Expansion of Economic Based Firms (manufacturing) Number of manufacturing firms: 1995/109* 2000/166
Number of manufacturing firms which closed between 1995 and 2000: 2**
Number of manufacturing expansions between 1995 and 2000:  44*
(Source: Survey of Economic Development Directors in Mason, Mecosta, Newaygo and Osceola counties. Lake county does not employ an EDC Director.)

[Data unavailable for Newaygo county]
[Data unavailable for Newaygo county. Both plant closings in Mason county.]
   

Barriers to Retention and Expansion
  Yes No
1. Recruitment of workers 4 0
2. Training of workers 2 2
3. Capital formation 1 3
4. Physical infrastructure 3 1
   "E-Commerce high speed telecommunications network"
     "Expansion of high tech infrastructure"
5. Regulations 0 4


Key issues that will have a significant effect on future development in your county:
Z
  Yes No
1. Globalization (foreign trade and world market competition) 3 1
2. Environmental regulations (e.g. air quality standards, re-development of brownfields) 3 1
3. Energy (e.g. de-regulation) 4 0
4. Taxes 4 0
5. Land use 4 0
6. Other 4 0
"Potential increase in anti-growth, anti-economic development philosophy"
"High tech infrastructure must be constantly upgraded to keep up with industry"
"Cooperation among local units of government"
"Access to high speed Internet"


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Michigan Works! West Central