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  • II. Strategic Elements

    The Unified or Combined State Plan must include a Strategic Planning Elements section that analyzes the State’s current economic environment and identifies the State’s overall vision for its workforce development system. The required elements in this section allow the State to develop data-driven goals for preparing an educated and skilled workforce and to identify successful strategies for aligning workforce development programs. Unless otherwise noted, all Strategic Planning Elements apply to Combined State Plan partner programs included in the plan as well as to core programs.

II. a. 1. A. Economic Analysis (A.I -A.III)

The Unified or Combined State Plan must include an analysis of the economic conditions and trends in the State, including sub-State regions and any specific economic areas identified by the State. This must include-

  • i. Existing Demand Industry Sectors and Occupations

    Provide an analysis of the industries and occupations for which there is existing demand.

  • ii. Emerging Industry Sectors and Occupation

    Provide an analysis of the industries and occupations for which demand is emerging.

  • iii. Employers’ Employment Needs

    With regard to the industry sectors and occupations identified in 1 and 2 above, provide an assessment of the employment needs of employers, including a description of the knowledge, skills, and abilities required, including credentials and licenses.

Current Narrative:

(a) Economic, Workforce and Workforce Development Activities Analysis

Nevada currently has two designated local workforce development areas (see Fig. 1): northern and southern Nevada. In compliance with WIOA, Nevada has developed state compliance policies that govern activities in the local workforce areas. The following counties and cities are designated as local workforce development areas:

NORTH - Carson City, Churchill, Douglas, Elko, Eureka, Humboldt, Lander, Lyon, Mineral, Pershing, Storey, Washoe, and White Pine.

SOUTH - Clark, Esmeralda, Lincoln, Nye, Boulder City, Henderson, Las Vegas, and North Las Vegas.

(1) Economic and Workforce Analysis

An analysis of the economic conditions, economic development strategies, and labor market in which the state’s workforce system and programs will operate.

According to the U.S. Census Bureau's 2017 estimates, Nevada’s population is 2,998,000 people. According to the American Community Survey's 2016 one-year estimates, roughly 49.9 percent of the population is female and 50.1 percent is male. Looking at the racial/ethnic breakdown of the state, it is noted that White Nevadans make up 66.9 percent of the population, followed by Hispanic/Latinos (of any race) at 28.5 percent and Black/African Americans at 8.9 percent. The largest age category is the 24 or younger group at 31.64 percent of the population, followed by the 25 to 44 year old group with 27.7 percent of the population, and the 55 and older age group at 27.4 percent. The 45 to 54 year old group represents 13.3 percent of the population. When looking at the make-up of Nevada’s population, it is noted that 13 percent of individuals have disabilities. Within the population of Nevadans with disabilities, 18.5 percent are employed.

In February 2018, Nevada’s current non-farm payroll employment was approximately 1.37 million (actual payroll data at a specific point in time). Through the full year 2017, the state added 42,100 to payrolls, up 3.2 percent, for an annual average of 1.34 million jobs. In nominal terms, construction added the most jobs in 2017, with ten percent or 7,600 more jobs than the previous year, according to the Current Employment Statistics program.

Trade, transportation, and utilities, the state's second-largest employer, saw the second-largest job gain, adding 6,900 to payrolls in 2017. Though the nominal change is large, it marks a growth rat of 2.8 percent, below the statewide average of 3.2 percent. The transportation/warehousing/utilities sector saw the largest number of jobs added, growing by 3,600. Retail trade added 1,600. while wholesale trade added 1,500 jobs.

Education and health services added 6,000 jobs over the course of 2017, a growth of 4.7 percent. This puts the sector in third place both in terms of nominal growth and percentage change. Most of the growth occurred in the health care/social assistance sub-sector, which saw 5,300 new jobs.

The professional and business services sector added 5,300 jobs in 2017 over the previous year, a gain of three percent.

Leisure and hospitality, the Silver State's largest industry, added 4,200 jobs over the course of 2017. Though the sector ranks fifth in terms of nominal job growth, since it is such a large industry, this corresponds to an average annual growth rate of just 1.2 percent, the lowest of the eleven supersectors.

Manufacturing follows with a gain of 4,100 jobs, or 9.4 percent. The sector saw the second-largest percent change for the year. Durable goods grew by 3,300 jobs, while non-durable goods manufacturing expanded by 800.

Additional insight can be gained by looking at the industry structure via the Quarterly Census of Employment and Wages (QCEW) program results. The QCEW measure is more accurate than the current employment statistics program, but less timely. The table below shows the current industry structure as defined by the QCEW program as of the third quarter of 2015.

IndustryEmploymentPercentAverage Weekly WagesEstablishments
Total, All Industries1,332,258100%$914 81,254
Natural Resources and Mining18,4591.4%$1,481624
Construction84,4856.3%$1,1015,963
Manufacturing49,0273.7%$1,0442,053
Trade, Transportation and Utilities254,00519.1%$81516,319
Information15,6581.2%$1,2101,516
Financial Activities62,0884.7%$1,1679,057
Professional and Business Services181,99413.7%$1,08120,133
Education and Health Services213,15016.0%$1,0229,057
Leisure and Hospitality354,07726.6%$6318,451
Other Services34,3672.6%$7025,084
Public Administration62,5374.7%$1,319816
Unclassified24130.2%$1,2632,181

(A) Economic Analysis

An analysis of the economic conditions and trends in the state, including sub-state regions and any specific economic areas identified by the state, including: (i) existing demand industry sectors and occupations; (ii) emerging demand industry sectors and occupations; and, (iii) employers’ employment needs.

Nevada’s economy continued on a path of improvement through the early months of 2018, with year-to-date job growth averaging 40,700 jobs relative to the January through February period last year, leading to a growth rate of 3.1 percent. Additionally, through 2017, the Silver State added an average of 3,500 jobs per month. Overall, the Nevada labor market has stayed in a period of expansion with growth in employment and a slight reduction in unemployment, however, the unemployment rate has remained static for half a year, likely due to an increase in the number of individuals in the overall labor force.

Private payrolls accounted for approximately 35,300 of these jobs so far this year. Further, the private sector has seen positive job growth in 85 of the past 95 months (since April 2010). Government sector employment also expanded, adding about 5,400 total new jobs year-to-date.

Employment growth in February 2018 indicated the addition of 43,000 seasonally adjusted jobs over-the-year, a growth of 3.2 percent. Private payrolls have contributed 39,400 to this total, with government growing by 3,600 jobs. Seasonally adjusted nominal growth in Nevada’s industrial sectors was led by leisure and hospitality.

As more jobs are added to Nevada’s economy, the unemployment rate is expected to decrease. In February 2018, Nevada had the sixth highest unemployment rate in the nation, following Alaska, New Mexico, the District of Columbia, West Virginia, and Arizona. Relative to February 2017, the unemployment rate dropped 0.3 percentage points in February 2018 to 4.9 percent. This was the 84th consecutive month in which the unemployment rate has declined on a year-over-year basis.

Nevada's LFPR peaked at 69 percent in late 2008, and has been trending down since. Recent rates are some of the lowest participation rates Nevada has experienced since modern tracking of the data series began in 1976. The labor force participation rate for February 2018 averaged 62.2 percent, seasonally-adjusted, up a tenth of a percentage point from the previous months. The recent change in direction in the participation rate is encouraging and shows the increasing health of Nevada’s economy. Many factors could have contributed to the decline in labor force participation, ranging from planned retirement of the baby boom generations, to the expiration of extended unemployment compensation, but one primary factor was likely a lack of employment opportunities during the recession. The recent increase in the rate signals a growing confidence in the labor market and in individuals’ abilities to locate work.

Another measure of labor market conditions can be found by the examination of initial claims for unemployment insurance. Before the recession, monthly initial claims bottomed out at 10,800 (expressed as a 12-month moving average). After the recession hit, claims peaked at 28,600 per month in late 2009. Currently, initial claims average 11,000 per month, approaching the pre-recessionary low. Initial claims for unemployment insurance totaled 9,830 in February 2018, a decline of four percent compared to February of last year. Claims also fell 24 percent from January’s total, a decline that was largely expected as January is Nevada’s seasonal peak in initial claims.

Leading economic indicators are varied, but support the view of continued strengthening of Nevada's economy. As of January 2018, the state's gaming win averaged $963 million (as a 12-month moving average), up from the recessionary low of $857 million. Statewide, taxable sales information through the end of 2017 showed an increase of 5.7 percent from the previous year.

Currently, Nevada's average weekly wage across all industries is $914, as of the third quarter of 2017. Information through the third quarter of 2017 shows personal income in Nevada reached $134 billion, up 2.2 percent from a year ago. In fact, personal income has increased in 29 of the past 30 quarters, following seven straight quarters of decline during the recession. As defined by the Bureau of Economic Analysis, Nevada’s gross domestic product totaled over $131 billion (in 2009 dollars) in 2017’s third quarter (in “current” dollars, this equates to over $153 billion). While the Silver State’s economy has been on the rise since 2011, the value of “real” economic activity, measured in inflation-adjusted terms, in the state remains slightly below pre-recession levels. However, Nevada’s economy has now grown in 17 consecutive quarters.

Growth in the state’s metropolitan statistical areas (MSA) has also been positive. The state’s largest MSA, Las Vegas, added 24,000 jobs year-to-date, which equates to a 2.5 percent growth rate. The Reno-Sparks MSA added 10,900 jobs during this time frame, indicative of a 4.9 percent growth rate. Job growth in Carson City, the state’s smallest MSA, added 1,300 jobs during this timeframe, equating to a 4.5 percent increase.

Las Vegas continues to lead the state in taxable sales growth, as well as in visitor volume with positive domestic and international visitor growth. Nevada’s smaller metropolitan areas, Reno-Sparks and Carson City, continue to show steady economic growth during this time period. Las Vegas received a record- breaking 42.9 million visitors in 2016, and 42.2 million visitors in 2017.

To summarize, Nevada’s economy is in the seventh year of its recovery, and by many measurements has surpassed the pre-recessionary boom of the early 2000s. Private sector employment has shown steady growth, while government levels have also increased, but at a slower pace. Given the recent increases in taxable sales, it is likely that government job growth may start to increase on the state and local levels. The unemployment rate has declined through continued job growth, although a growing labor force has moderated the pace of decline. Thus, initial claims for unemployment insurance continue to trend down, and Nevada’s economy continues to improve at a steady pace. (i) Existing Demand Industry Sectors and Occupations

Provide an analysis of the industries and occupations for which there is existing demand

All of Nevada's eleven super-sectors are projected to continue growing through 2018:

- Leisure and hospitality is expected to grow at a 1.8 percent annual rate from 2016 to 2018, adding 12,400 to payrolls.

- Construction is projected to grow fastest, at a rate of 7.7 percent per year, adding 11,500 to payrolls from 2016 to 2018.

- Professional and business services are expected to add the most jobs, gaining 15,100 over the two year period, a growth rate of 4.4 percent per year.

- Trade, transportation and utilities are expected to add 12,700 jobs, an annual growth rate of 2.7 percent.

- Education and health services are expected to grow at a 3.3 percent rate, and are expected to add 14,100 jobs over the projection period.

Growth of Nevada's super-sectors is reflected in its largest occupations

- As the largest occupation, retail salespersons currently employ 48,800 people. This occupation ranked third in projected nominal growth, adding 2,200 to payrolls from 2016 to 2017 (+4.5 percent).

- Waiters and waitresses, Nevada's second largest occupation, currently has approximately 38,700 on payrolls. This occupation is estimated to grow by five percent from 2016 to 2017, with the addition of 1,900 employees. Although this is significant growth, this occupation did not rank in the top five for projected growth.

- As the third largest occupation in Nevada, cashiers employ 32,300 people. Cashiers are projected to add 1,500 jobs between 2016 and 2018, indicative of a 2.3 percent annual growth rate.

- Janitors and cleaners (except maids and housekeeping cleaners) currently employ 32,100 Nevadans, ranking fourth in total size. This occupation is projected to add 1,900 to payrolls over the projection period.

- The last notable occupation, in terms of total employment, is general office clerks, with 31,700 jobs. This occupation is ranked first in terms of projected growth between 2016 and 2018, indicative of a four percent annual growth rate, adding nearly 2,600 jobs. Combined, the top five occupations account for 14 percent of all Nevada jobs.

Other notable occupations in terms of projected growth are:

- Electrical and electronic equipment assemblers are projected to grow by 200 percent, or 1,900 jobs.

- Industrial engineers, electrical engineers, electronics engineers, and industrial engineering technicians are all projected to grow by more than 25 percent over the two-year projection period.

The above-referenced industries and occupations are additional examples of in-demand occupational groups, but do not necessarily show up on the official list provided below for in-demand industries and occupations due to a difference in how official demand is defined in Nevada. The industries and occupations listed above may not meet the above-average wage requirement in place for our top in-demand occupations list, but continue to constitute an important part of Nevada's economy.

Below are the most recent in-demand industries and occupations that were completed by DETR's Research and Analysis Bureau, GOED, the State's Industry Sector Councils, and OWINN.

In-Demand Industries

- Information Technology

- Health Care and Medical Services

- Advanced Manufacturing

- Education Services

In-Demand Occupations

- Software Developers, Applications - Computer Systems Analysts - Mechanical Engineers - Licenses Practical and Licensed Vocational Nurses - Sales Representatives, Wholesale and Manufacturing, Technical and Scientific Products - Network and Computer Systems Administrators - Physicians and Surgeons, All Other - Industrial Machinery Mechanics - Software Developers Systems Software - Machinists *Nevada produces a list of the top 100 in-demand occupations; the above-referenced list is a snapshot portion of the total in-demand occupations list.

(ii) Emerging Demand Industry Sectors and Occupations

Provide an analysis of the industries and occupations for which demand is emerging

The in-demand occupations for Nevada were identified by DETR’s Research and Analysis Bureau, GOED, the Governor’s Workforce Development Board Industry Sector Councils and OWINN. OWINN produced the in-demand occupations report to provide strategic insights and direction to education and the publicly funded workforce system on in-demand industries and occupations.

The following emerging in-demand industries were identified by analysis from DETR and GOED and approved by the Governor’s Workforce Development Board.

- Aerospace and Defense: Aviation maintenance technician and machinist training program. - Health Care and Medical Services: Registered nurses, home health aides, nursing aides, orderlies and attendants, medical assistants, medical secretaries, licensed practical and vocational nurses. - Information Technology: Software developers, cyber security/IA professionals, network/systems administrators, healthcare IT technicians, and database administrators. - Manufacturing and Logistics:

- Manufacturing: Machinists and metal workers, welders, cutters, solderers and brazers, team assemblers, first-line production supervisors, general and operations managers, helpers and production workers.

- Logistics and Operations: Laborers and freight, stock and material movers, office clerks, customer service representatives, stock clerks, order filers, general and operations managers, bookkeeping, accounting and auditing clerks.

- Mining and Materials: Equipment operators, diesel mechanics, underground miners, electrician/instrumentation technicians, process operators, fixed maintenance mechanics, and lab technicians. - Manufacturing and Logistics:

- Agriculture: Farmworkers and laborers, crop nursery, plant science, greenhouse workers, food, and batchmakers.

- Clean Energy: Occupational Safety and Health Administration (OSHA) solar panel installers, certified energy managers, Building Performance Institute (BPI) energy auditors, BPI building envelope professionals, Leadership in Energy and Environmental Design (LEED) certification professionals, and Western Electricity Coordinating Council certifications.

- Water Technologies: This is a new industry sector that is yet to be defined. As such, the state anticipates surveying business representatives to identify the top demand/emerging occupations within this occupation. Said findings will be updated in next year’s state plan.

- Tourism, Gaming and Entertainment: First-line supervisors of food preparation, servers, audio and video equipment technicians, fitness trainers, chefs, meeting and convention planners, massage therapists, accountants and auditors.

- Construction: Civil Engineers, first-line supervisors of Mechanics, installers, and repairers, general and operations managers, installers and repairers, general maintenance and repair workers, electricians, construction laborers, welders, masons, operators, carpenters (iii) Employers' Employment Needs

With regard to the industry sectors and occupations identified, provide an assessment of the employment needs of employers, including a description of the knowledge, skills and abilities required, including credentials and licenses.

When assessing the skills in the workforce, many Nevada employers indicated that the skills most deficient in the workforce are soft skills. These skills include demonstrations such as employees showing up to work on time, working efficiently and getting along with coworkers. It was further noted that many individuals also lack basic office computer skills. Industries such as mining, leisure and hospitality, and agriculture indicated that soft skills are the only essential skills required. On the job training will provide the additional necessary skills. Specific to the health and education sectors, the need for additional teaching certificates and nursing degrees was noted. Currently, the top requested skills for Nevada’s in-demand occupations are: critical thinking, monitoring, judgment and decision making, speaking, active listening, coordination, reading comprehension, time management, complex problem solving, active learning, writing, social perceptiveness, service orientation, persuasion, and instruction. However, a recent report from the National Science Board (NSB-2015-10) argues that due to an increasingly technical and automated job market demands, the need for STEM skills have permeated all corners of the nation’s economy. Thus, the significance of STEM knowledge and skills on national economic competitiveness is critical to the development of Nevada’s future workforce (U.S. News & World Report, 2015). Additionally, humanities skills are increasingly important to Nevada’s workforce development. Proficiencies such as writing efficiencies, communication, listening skills (both active and passive), articulation, thinking, creativity, organization, project and time management, and networking/teambuilding skills are requisite for workforce development in Nevada. Continued research into the skills and credentialing needs of Nevada employers continued beyond the submission of the State Plan in 2016. Since then, OWINN has convened business and industry, education, and labor via the Sector Councils to identify skills that should be prioritized for workforce. The table below summarizes the entry-level, mid-level, and senior-level skills identified. The full report is available on the OWINN website.