8/22/2006 7:15:00 AM
To: State Desk, Labor Reporter
Contact: Ambar Mentor, 312-408-2580, ext. 25 or 773-343-1481 (cell);
Paul Kleppner, 815-758-0780 or Matt Eskew, 815-762-5964; both of Northern
Illinois University
CHICAGO, Aug. 22 /U.S. Newswire/ -- More than a third of new jobs
expected in Illinois by 2012 will yield high wages. Because jobs within
the high-wage category require more education and special training than
those in lower-wage categories, the State’s workforce will need additional
training and higher education standards, a new study says.
Illinois is expected to create more than 575,000 jobs by 2012 - an
increase that would surpass even the robust job growth that took place
during the boom of the 1990s - according to a new study by the State of
Working Illinois Project released today. The study forecasts that more
than a third of these jobs will be high-wage, paying more than $56,000 per
year. The expected 213,384 high-wage jobs will account for 37 percent of
Illinois' total employment growth, while only 20 percent of new jobs will
be in the lowest wage categories.
"The expected flow of high-wage jobs is great news for the state, but
there is no guarantee that these jobs will become a realization until our
workforce is adequately trained to take on these new occupations, says
Paul Kleppner, one of the main researchers from Northern Illinois
University (NIU). "In fact, without proper training and education for our
workers, we'll continue to see a greater gap between high-skill, high-wage
jobs and lower-paying jobs needing fewer skills."
The Future of High-Wage Jobs in Illinois assesses the current and
future employment and income patterns in the state:
-- Post-secondary education will yield higher earnings. Among current
workers who hold an associate degree or more, 73 percent fall into the two
highest wage categories, while only 5.2 percent are low-wage workers.
-- Low-wage workers have limited education. Nearly 70 percent of those
whose education falls short of an associate degree fall into the three
lowest low-wage categories.
-- Jobs that require short term on-the-job training will make up the
single largest category of job growth over the 2002-2012 period. This
represents 32 percent of total projected job growth, and all of the jobs
requiring this minimal level of training will fall into the three
lower-wage categories.
-- Better paying jobs will be in high-skilled service industries.
Occupations in the growing industries of information, finance and
insurance, professional, scientific and technical services, and management
of companies and enterprises will offer better than average earnings.
These jobs will be skewed toward those with post-secondary education.
-- Adequate education and training will be critical to fill the influx
of new jobs. More than 70 percent of the new high-wage jobs require at
least an associate degree. Jobs that require a bachelor's degree will
comprise the second largest category of job growth.
"The challenge Illinois faces is producing a workforce that is
adequately trained and educated to meet the requirements of higher-skilled
jobs in high-growth industries," says Matt Eskew, co-researcher from NIU.
"The data show that if workers don't have a college degree, they can't
expect to earn better than average annual incomes for the rest of their
careers. At the same time, we also need to work on training lower-skilled
workers in an effort to boost their earnings, as college may not be a
possibility for them anymore."
Despite the positive employment outlook that is projected for Illinois,
the study also notes recent job patterns that demonstrate economic
concern. Between 2002 and 2005, the state lost nearly 400,000 jobs. In
addition, more than half of Illinoisans are failing to earn a living wage.
Over 3 million working Illinoisans fell below the living wage standard for
a single parent with one child (at least $31,886) in 2004.
The researchers developed a classification system for the state's 770
occupations, based on median annual income. Working from definitions used
by the U.S. Bureau of Labor Statistics, the six categories range from Very
High Wage ($86,060) to Very Low Wage ($14,470). The report also analyzed
employment projections developed by the Illinois Department of Employment
Security.
The study is the first in a series of reports that will track
employment issues stemming from the 2005 State of Working Illinois report
which was developed by the Center for Tax and Budget Accountability, and
the Office of Social Policy Research and the Regional Development
Institute of Northern Illinois University and funded by The Joyce
Foundation.
---
The State of Working Illinois is a joint project of the Center for Tax
and Budget Accountability and Northern Illinois University (Office of
Social Policy Research and Regional Development Institute) with data and
assistance from the Illinois Department of Employment Security to provide
Illinois policy makers with an ongoing series of reports containing sound
information on issues related to work and economic development in
Illinois. For more information and for a copy of the report, visit: http://releases.usnewswire.com/redir.asp?ReleaseID=71054&Link=http://www.stateofworkingillinois.niu.edu
http://releases.usnewswire.com/redir.asp?ReleaseID=71054&Link=http://www.usnewswire.com/
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/© 2006 U.S. Newswire 202-347-2770/