Located in:
- 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 to support economic growth. Unless otherwise noted, all Strategic Planning Elements apply to Combined State Plan partner programs included in the plan as well as to core programs.
- a. Economic, Workforce, and Workforce Development Activities Analysis
The Unified or Combined State Plan must include an analysis of the economic conditions, economic development strategies, and labor market in which the State’s workforce system and programs will operate.
- a. Economic, Workforce, and Workforce Development Activities Analysis
II. a. 1. B. Workforce Analysis
The Unified or Combined State Plan must include an analysis of the current workforce, including individuals with barriers to employment, as defined in section 3 of WIOA4. This population must include individuals with disabilities among other groups5 in the State and across regions identified by the State. This includes—
[4] Individuals with barriers to employment include displaced homemakers; low-income individuals; Indians, Alaska Natives, and Native Hawaiians; individuals with disabilities, including youth who are individuals with disabilities; older individuals; ex-offenders; homeless individuals, or homeless children and youths; youth who are in or have aged out of the foster care system; individuals who are English language learners, individuals who have low levels of literacy, and individuals facing substantial cultural barriers; farmworkers (as defined at section 167(i) of WIOA and Training and Employment Guidance Letter No. 35-14); individuals within 2 years of exhausting lifetime eligibility under the Temporary Assistance for Needy Families program; single parents (including single pregnant women); and long-term unemployed individuals.
[5] Veterans, unemployed workers, and youth, and others that the State may identify.
i. Employment and Unemployment
Provide an analysis of current employment and unemployment data, including labor force participation rates, and trends in the State.
ii. Labor Market Trends
Provide an analysis of key labor market trends, including across existing industries and occupations.
iii. Education and Skill Levels of the Workforce
Provide an analysis of the educational and skill levels of the workforce.
iv. Skill Gaps
Describe apparent ‘skill gaps’.
Current Narrative:
B) Workforce Analysis
(i) Employment and Unemployment. Provide an analysis of current employment and unemployment data, including labor force participation rates, and trends in the State.
Employment and Unemployment
Through 2018, Maryland continued the decade’s trend of strong, steady improvement across all measures of employment and unemployment. The state’s average employment level in 2018 was 3,071,652 with a peak employment of 3,115,752 in July. The number of unemployed individuals averaged 125,485 in Maryland for 2018.
Maryland’s labor force participation rate averaged 66.9 percent in 2018. Labor force participation rate was 67.3 percent among people identifying as White/Caucasian, 66.8 percent for individuals identifying as Black, and 76.8 percent among Hispanics. Men participated in the labor force at a 73.3 percent rate, with those aged 35 to 44 averaging about 94 percent participation rate. Women averaged a 61.3 percent labor force participation rate, with ages 35 to 44 participating at an 82.0 percent rate.
Maryland’s Central and Capital regions dominate the state’s labor force and employment. They also have the lowest rates of unemployment. The Central region had the most residential employment in 2018, with 1,457,837 employed individuals living in the region. The Capital Region had the lowest unemployment rate in 2018 at 3.6 percent.
Table: Labor force statistics
| Area | Labor force | Employment | Unemployment | Unemployment rate |
|---|---|---|---|---|
| Maryland | 3,197,137 | 3,071,652 | 125,485 | 3.9% |
| Central region | 1,518,749 | 1,457,837 | 60,912 | 4.0% |
| Capital region | 1,190,243 | 1,147,512 | 42,731 | 3.6% |
| Eastern Shore | 176,489 | 167,538 | 8,951 | 5.1% |
| Western Maryland | 122,136 | 116,386 | 5,750 | 4.7% |
| Southern Maryland | 189,520 | 182,380 | 7,140 | 3.8% |
(ii) Labor Market Trends. Provide an analysis of key labor market trends, including across existing industries and occupations.
Since 2010, following the end of the Great Recession, private employment gained over 219,000 jobs. Fourteen of the 19 private industry sectors exhibited growth since then. The healthcare and social assistance industry added the most jobs (51,900). The management of companies and enterprises sector, with a 40 percent increase in employment, grew fastest. The table below gives more detail about the employment levels and growth across industries in Maryland.
Table: Private sector employment and growth, by industry
| Industry | Employment(2018) | Employmentchange(2010-18) | Growth(2010-18) |
|---|---|---|---|
| All private | 2,188,298 | 219,736 | 11.2% |
| Agriculture, forestry, fishing and hunting | 5,330 | 308 | 6.1% |
| Mining, quarrying, and oil and gas extraction | 1,117 | -360 | -24.4% |
| Utilities | 9,721 | 0 | 0.0% |
| Construction | 163,210 | 20,462 | 14.3% |
| Manufacturing | 109,683 | -5,190 | -4.5% |
| Wholesale trade | 85,269 | -195 | -0.2% |
| Retail trade | 283,912 | 6,806 | 2.5% |
| Transportation and warehousing | 83,688 | 21,581 | 34.7% |
| Information | 36,210 | -7,619 | -17.4% |
| Finance and insurance | 91,793 | -3,941 | -4.1% |
| Real estate and rental and leasing | 46,469 | 4,327 | 10.3% |
| Professional, scientific, and technical services | 252,292 | 28,138 | 12.6% |
| Management of companies and enterprises | 27,381 | 7,848 | 40.2% |
| Administrative and support and waste management and remediation services | 173,080 | 30,173 | 21.1% |
| Educational services | 69,417 | 9,350 | 15.6% |
| Health care and social assistance | 375,911 | 51,900 | 16.0% |
| Arts, entertainment, and recreation | 47,355 | 11,780 | 33.1% |
| Accommodation and food services | 234,654 | 40,431 | 20.8% |
| Other services | 91,803 | 4,002 | 4.6% |
In 2018, the Central region led all Maryland sub-state regions in employment level (1,355,852 individuals), added the most private sector jobs since 2010 (133,758 jobs). While the Central region has exhibited the strongest employment growth since 2010, all regions have experienced growth in the number of employed individuals during that period. The table below gives more detail about employment growth since 2010.
Table: Regional private sector employment
| Sub-state region | Employment(2010) | Employment(2018) | Employmentchange(2010-18) | Growth(2010-18) |
|---|---|---|---|---|
| Central | 1,222,094 | 1,355,852 | 133,758 | 10.9% |
| Capital | 832,649 | 894,559 | 61,910 | 7.4% |
| Eastern Shore | 131,687 | 140,219 | 8,532 | 6.5% |
| Western Maryland | 104,463 | 106,575 | 2,112 | 2.0% |
| Southern Maryland | 102,643 | 108,823 | 6,180 | 6.0% |
Occupational Trends
Since the end of the recession in 2010, Maryland’s occupational employment increased 7.2 percent. Personal care and service occupations grew 29.1 percent to lead all occupational clusters, followed by computer and mathematical occupations, which grew 23.5 percent. Mean annual wages for these occupational clusters have increased by 6.1 percent and 13.2 percent, respectively. Only two of the 23 major occupation groups have declined in employment while eight have grown more than ten percent.
(iii) Education and Skill Levels of the Workforce. Provide an analysis of the educational and skill levels of the workforce.
Education and Skill Levels of the Workforce
Maryland’s skilled workforce possesses varied education levels. While members of Maryland’s workforce are most likely to hold a bachelor’s or advanced degree (27 percent), many have some college or an associate’s degree (26 percent), high school or equivalent (23 percent). Twelve percent of Maryland’s workforce has less than a high school diploma. The table below shows the trends and current levels of education attainment in Maryland.
Table: Education attainment of Maryland’s workforce, past 20 years
| Education Attainment | 1998 | 2008 | 2018 |
|---|---|---|---|
| Less than high school | 201,320 | 234,891 | 308,165 |
| High school or equivalent, no college | 504,964 | 533,693 | 580,211 |
| Some college or Associate degree | 553,753 | 622,346 | 659,051 |
| Bachelor's degree or advanced degree | 594,618 | 676,689 | 670,744 |
| Educational attainment not available | 302,467 | 341,673 | 301,915 |
Maryland ranks in the top ten among states for most educated workforce in the U.S. In 2018, employment for workers with a bachelor’s or advanced degree has increased by 4,926 jobs. Employment for workers with an educational attainment of some college or associates degree increased the most, with a gain of 7,898 jobs. Male workers were most likely to have primary and secondary education in 2018, while female workers were most likely to hold a postsecondary degree.
(iv) Skill Gaps. Describe apparent ‘skill gaps’.
Skill Gaps
Available data cannot measure the gap between skills employers look for in recruiting, and the skills job applicants possess. However, there is evidence that the available labor supply lacks the knowledge and skills employers seek. Employer’s requirements range from basic skills to more advanced, such as analytical thinking and complex problem solving. Businesses in Maryland have expressed concern about the lack of skills that are considered basic minimum for today’s labor market.
Employers cite a lack of soft skills as a primary reason for being unable to fill vacancies, particularly in lower wage jobs. The top five skills employers request in Maryland are as follows:
- Customer service
- Problem solving
- Attention to detail
- Interpersonal skills
- Decision making
To explain long job recruitment periods, employers have noted job applicants falling short of the educational attainment requirements for the vacant positions. Educational institutions may be playing “catch-up” with employers to satisfy new job requirements to fill these skill gaps.
The proliferation of technology into a wider array of job functions has accelerated the rise of middle- and high-income jobs that require postsecondary education or training certification. This is one leading explanation for suppressed rates of labor force participation among prime-age workers, long-term unemployment, and elevated rates of labor underutilization not measured by the unemployment rate.
Populations with Barriers to Employment
Many individuals in Maryland face barriers that present unique challenges to gaining steady employment, and to the state system dedicated to helping them find it. This section describes demographic groups that may face additional barriers to gaining and maintaining employment. The table below gives further information about these groups, though data is limited in some key areas.
Table: Demographics of populations with barriers to employment
| Population group | Count | Percent ofpopulation | Labor force participation rate | Unemploymentrate |
|---|---|---|---|---|
| Total population | 6,042,718 | 100.0% | -- | -- |
| Total working-age population | 4,931,235 | 81.6% | 66.9% | 3.9% |
| Disabilities | 676,072 | 11.4% | 50.6% | 12.5% |
| Low income | 875,225 | 14.8% | -- | -- |
| Poverty | 528,203 | 9.0% | 50.9% | 24.8% |
| Indigenous peoples | 20,744 | 0.3% | 65.6% | 7.6% |
| Youths | 379,728 | 6.3% | 37.5% | 17.3% |
| Youths with disabilities | 55,753 | 4.2% | -- | -- |
| Homeless | 31,318 | -- | -- | -- |
| English language barriers | 396,606 | 7.0% | -- | -- |
| Single-parent households | 402,939 | 18.2% | -- | -- |
| Long-term unemployed | 38,500 | 0.8% | 28.9% | 100% |
| Older (55+) | 1,742,994 | 28.8% | 44.9% | 3.2% |
| Veterans | 409,000 | 8.8% | 63.4% | 3.2% |
Note: Double dashes (--) indicate areas where data is not available. Labor force participation rate is measured as a percent of the group that is either employed or has recently looked for work. Count and percent of population includes all ages population or working age population, depending on the data source.
Disabilities
An estimated 676,072 individuals with disabilities live in Maryland. Just over half (50.6 percent) of these individuals participate in the labor force, a rate that is well above the US average of 42.5 percent. However, individuals with disabilities are three times as likely as someone in the state’s general population to be unemployed.
Low income and poverty
There were approximately 875,225 individuals that are considered low-income in Maryland, defined as earning annual wages less than 150 percent of the federal poverty level. While unemployment data is not available for this group, those in poverty (annual earnings less than 100 percent of the federal poverty level) had an unemployment rate nearly six times higher than Maryland’s general population.
Indigenous peoples
There are 13,433 American Indians and Alaska Natives in the State of Maryland and 60,221 residents that claim American Indian and Alaska Native heritage in combination with one or more other races. An additional 7,311 individuals identify as Native Hawaiian or other Pacific Islander, and 15,994 residents claim Native Hawaiian and other Pacific Islander heritage in combination with one or more other races. While this group participates in the labor force at a level on par with other Marylanders, they face unemployment at nearly double the rate.
Youths
Youth employment (ages 14-18) in 2018 reached 56,911 in Maryland, a slight decline of 57,121 from 2017. The Central Region employs most of Maryland’s young workers at 29,431 followed by the Capital Region (17,065), Eastern Shore (4,148), Southern Maryland (3,3311), then Western Maryland (2,948).
Youths with disabilities
A total of 55,753 individuals, or 4.2 percent of Maryland’s youth (age of 17 and under), are considered disabled.
Homeless
There were approximately 31,318 homeless Maryland residents including 1,397 children (under 18 years of age).
English language barriers
Of Maryland’s residents, 396,606, or 7.0 percent, speak English less than “very well”, which indicates limited English proficiency (LEP).
Single-parent households
In 2018, there were a total of 402,939 single-parent households in Maryland. There were approximately 101,726 male single-parent households and 301,213 female single parent households.
Long-term unemployed
There were approximately 38,500 long-term unemployed (unemployed 27+ weeks) in Maryland for 2018. Men accounted for 51 percent of the long-term unemployed and women accounted for 49 percent In terms of racial demographics, 42 percent of long-term unemployed were white, 55 percent were black, and eight percent were Hispanic.
Older workforce
The number of workers in Maryland who were 55 years and over, reached nearly 617,000 in 2018. Year over year, the workers 55 plus have increased, growing 3.3 percent in 2018. Central Maryland employs more older workers than any other area at 324,122 workers. Following Central Maryland is the Capital Region (207,608), Eastern Shore (36,682), Western Maryland (26,217), and then Southern Maryland (22,321).
Veterans
The unemployment rate for veterans in 2018 was 3.2 percent in Maryland, and at 63.4 percent labor force participation, they are nearly as likely to be part of the labor force as the general population.