Mismatch in the Labor Market: Measuring the Supply of and Demand for Skilled Labor in New England
New England Public Policy Center
Research Report No. 10-2
by Alicia Sasser Modestino
Over the past decade, policymakers and business leaders across New England have been concerned that the region’s slower population growth and loss of residents to other parts of the U.S. will lead to a shortage of skilled labor—particularly when the baby boom generation retires. Even with the current economic downturn, there is a recognized need to ensure that there is a sufficient pipeline of skilled workers to fill their region’s high-growth, high-demand jobs when the economy recovers. This means not only having a sufficient number of skilled workers, but also a workforce with the right mix of skills to meet the diverse needs of the region’s economy.
This report examines the potential mismatch between the supply of and demand for skilled labor in New England. It explores changes in the balance between labor supply and labor demand at multiple skill levels across the New England region and the nation and examines both historical trends as well as future projections in the supply of and demand for skilled labor.
The evidence indicates that, although New England currently has many more workers seeking employment than there are job opportunities, the supply of skilled workers is not likely to keep pace with demand over the next two decades. Although these trends are not unique to the region, New England will likely face even greater challenges in maintaining an adequate supply of skilled workers compared to the nation—particularly for “middle-skill” jobs. The report concludes with a discussion of the role that public policy could play in addressing this challenge.
- Forums
- Policy Engagement
- Related research
- Presentations
- Appendices
This November 2010 forum featured the research report profiled above. Author and keynote speaker, Alicia Sasser Modestino, Senior Economist at the Policy Center, described the magnitude of the potential mismatch, identify particular industries and occupations where skilled labor is in high demand, and projected labor supply and demand conditions over the next two decades. She also discussed several policy solutions designed to address labor shortages in the region, including where future investments in education and training may be warranted. A panel of experts responded to her presentation.
Policy leaders and stakeholders briefed:
Benjamin Franklin Institute of Technology
Bunker Hill Community College
The Boston Foundation
Commonwealth Corporation
Crittendon Women’s Union
Congressman Jim Langevin
Governor Patrick’s STEM Advisory Board
Holyoke Community College
Jobs for the Future
Massachusetts Business Roundtable
Massachusetts Business Roundtable
Massachusetts Department of Education
Massachusetts Department of Higher Education
Massachusetts Technology Collaborative
Massachusetts
Senator Therese Murray’s staff
Massachusetts
Senator Karen Spilka and staff
Pioneer Valley Planning Commission
Skillworks
Springfield Technical College; Director,
Willis Center Office for Racial and Econmic Equity
Workforce Solutions Group;
Worcester Workforce Investment Board
Year-Up
Proposed legislation, Massachusetts:
An act establishing a middle-skills council and the creation of regional skills academies in the Commonwealth; proposed in 2011
An act relative to infrastructure investment, enhanced competitiveness and economic growth in the Commonwealth; passed in 2013
The Middle-Skills Gap: Ensuring an Adequate Supply of Skilled Labor in Northern and Southern New England
Julia Dennett and Alicia Sasser Modestino
NEPPC Policy Brief 11-1
Mismatch in the Labor Market: The Supply of and Demand for “Middle-Skill” Workers in New England, New England Journal of Higher Education, (February 2011)
Labor Market Trends in Massachusetts Regions
The Center and Commonwealth Corporation are developing reports that profile eight regional labor markets within the Commonwealth of Massachusetts. Over the summer and fall of 2012, the findings of each profile will be presented and discussed at a summit hosted in each region
To review other Center papers about regional labor market trends and demographics, please visit our research index.
The Middle-Skills Gap: Ensuring an Adequate Supply of Skilled Labor in Northern and Southern New England
Hartford Area Business Economists Meeting (December 14, 2011)
Mismatch in the Labor Market: Measuring the Supply and Demand for Skilled Labor in Massachusetts
Pioneer Valley Planning Commission (May 18, 2011)
Will Demographics Bankrupt Massachusetts? (Will the Commonwealth Have the Skills to Compete?)
Northeastern University's "Open Classroom" series (March 16, 2011)
Mismatch in the Labor Market? Measuring the Supply and Demand for Skilled Labor in New England
Central Massachusetts Workforce Investment Board (January 2011)
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