New Analysis of Real-Time Labor Market Data Offers Precise Insights into Local Skills Gaps -- and Surpluses
Unlike traditional labor market data, which relies on broad occupational categories, the report introduces the concept of "skill shapes"an approach pioneered by Emsito reveal the changing nature of work in real time.
INDIANAPOLIS, Dec. 10, 2019 /PRNewswire/ -- Strada Institute for the Future of Work and labor market analytics firm Emsi today released a report that provides a new approach to understanding skills gaps on a more granular level, acknowledging how skills and jobs vary by geography.
Unlike traditional labor market data, which relies on broad occupational categories, the report introduces the concept of "skill shapes"—an approach pioneered by Emsi—to reveal the changing nature of work in real time.
"The future of work is upon us, and skills are constantly evolving as employers innovate, workers adapt — and new fields are created," said Joe Fuller, professor of management practice and co-head of the Managing the Future of Work initiative at Harvard Business School, and a member of the Strada Institute for the Future of Work Advisory Committee. "This report offers a new approach to understanding and navigating skills gaps at a far more granular level, to help local leaders, employers, and, ultimately, job seekers close them faster."
The report, titled "The New Geography of Skills," draws on Emsi's database of more than 100 million job postings (indicative of labor market demand) and more than 100 million professional profiles and resumes (indicative of labor supply) to identify the specific skills employers are looking for — and job-seekers are offering — in hyperlocal labor markets.
Designed to isolate the skills that matter most, the analysis surfaces that skills, not credentials, are the fundamental currency that transmits value to workers and employers. Using a new analytical model developed by Emsi, researchers were able to sketch out "skill shapes" — the unique skill demands associated with a career field, region, or individual — to inform the design of more targeted training programs, curricula, and related micro-credentials.
By mapping the complex web of relationships between skills in the labor market, skill shapes can also reveal new opportunities for job-seekers, including adjacent careers or new fields that they may not have otherwise considered. This real-time analysis can now be updated every few weeks as job postings evolve, giving communities actionable insight into the precise skills employers are looking for and how they compare to the skills workers are supplying.
"All too often, we refer to skills gaps in broad terms, talking about tech or nursing talent shortages. That doesn't help employers or job seekers. Employer needs are hyperlocal, and often boil down to specific, targeted competencies — for example, employers seeking manufacturing talent in some regions are starved for workers skilled in robotic welding, while some communities are unable to fill jobs requiring forging and lean manufacturing," said Michelle Weise, chief innovation officer of Strada Institute for the Future of Work and a co-author of the report. "When communities deeply understand their own skill shapes, they can develop targeted educational interventions that close the gap between what employers want and what workers already know."
Insights derived from skill shapes, Strada and Emsi researchers say, can be deployed to help communities design targeted, short-burst educational opportunities that prepare their homegrown workforce to quickly step into new jobs. For example, among digital marketing roles, Denver's skill shape is oriented toward data analytics and cloud computing, while Boise's skill shape is oriented toward web development and graphic design.
"In today's market, we see paradoxical evidence of skill surpluses and shortages," said Yustina Saleh, senior vice president of analytics at Emsi and co-author of the report. "It is impossible to effectively target workforce resources with these contradictions. Regional skill clusters allow us, for the first time, to see these simultaneous dynamics of shortages and surpluses and triage our scarce resources in ways that were never possible before."
To read the full report, visit economicmodeling.com/geography-of-skills.
About Strada Institute for the Future of Work
Strada Institute for the Future of Work is dedicated to advancing our understanding of the future of learning and work, so that we may begin to build the learning ecosystem of the future. The Strada Institute is a part of Strada Education NetworkSM.Visit www.stradaeducation.org/institute for more details.
About Emsi
Emsi is a labor market analytics firm that integrates data from a wide variety of sources to serve professionals in higher education, economic development, workforce development, talent acquisition, and site selection. Emsi helps them align programs with regional needs, equip students with career visions, understand regional economic and workforce activity, and find and hire the talent they need. Emsi is also part of Strada Education Network. Visit www.economicmodeling.com for more details.
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SOURCE Strada Institute for the Future of Work
