The biennial report on workforce conditions and talent needs comes as Oregon begins implementing the historic $200M Future Ready investment package.
Salem, OR –The Oregon Workforce and Talent Development Board (WTDB) and the Higher Education Coordinating Commission (HECC) are pleased to release the 2022 Oregon Talent Assessment, providing a comprehensive look at the current employment market, highlighting Oregon business and industry’s input on in-demand occupations, skills, talent, gaps, and trends. The 2022 Talent Assessment was developed for the WTDB and HECC by ECONorthwest in partnership with Program and Policy Insight. The Assessment details how the effects of the pandemic, public health measures, and the ongoing effects of the robust federal stimulus have created a highly unusual labor market. The analysis is timely as Oregon begins implementation of the historic $200 million Future Ready Oregon workforce and education investment package, which is expected to support Oregonians across the state with postsecondary training opportunities and build new relationships between employers, educators, and prospective workers.
WTDB Chair, Anne Mersereau, Vice President of Human Resources, Diversity, Equity and Inclusion at Portland General Electric, said, “The findings of this year’s Talent Assessment will help inform employer and community collaboration in the implementation of the unprecedented Future Ready Oregon investment package. Employers and partners have shown they want to collaborate with college and workforce partners in a variety of ways to build equitable pathways to prosperity, and the more we know the better we can use this data to tailor our strategies to best serve all Oregonians during this time of change.”
The 2022 Assessment is the third in a biennial series of reports beginning in 2018, and provides an analysis of current workforce conditions as well as the results of a survey of Oregon employers on industry needs and trends.
Employers from 11 key industries participated in an online survey (314 responses) and interviews (31 participants), with the leisure and hospitality sector having a particularly strong showing. The public health crisis and federal response created an intersection of employers rapidly attempting to scale up their operations and prospective workers who, for a variety of reasons, have become more selective about the work they do. Some of the many specific findings include:
- About 84 percent of the Talent Assessment employer survey respondents report difficulties finding qualified applicants for open positions. Oregon’s high cost of living, especially housing, has an impact.
- Nearly 75 percent of employer respondents in the Assessment are actively trying to diversify their workforce.
- Employers have boosted wages to attract and retain workers by an average of 17 percent since before the pandemic, but recent inflation has eroded purchasing power such that adjusted wages increased only 5 percent during the past two years.
- An aging workforce, employee resignations, and employee mental health are key management concerns for employers. The increase of remote work is causing employers to think creatively about new ways of working.
- Most (nearly 7 out of 10) employers surveyed say their existing workforce has the skills needed to perform their jobs. Employers that report their existing workforce as not fully proficient emphasize the need for: specialized skills required for specific occupations, essential workplace skills (i.e., soft/interpersonal skills), and work experience.
- Most employers surveyed are likely to engage in actions to increase access and training for priority populations served by the Future Ready Oregon investment package, such as internships, job shadowing, or paid work experience.
"Employers are encountering one of the most unusual labor markets since the end of World War II", said John Tapogna, Senior Policy Advisor with ECONorthwest. "It's no surprise that 84 percent of surveyed firms reported trouble finding qualified applicants during the last year. The tight market has put employee retention and well-being at the top of management priorities."
The Assessment further reports that conditions contributing to staffing crises in some industries pre-dated the pandemic and will contribute to labor shortages going forward. The authors include numerous recommendations for reform and best practices in the workforce system, including recommendations related to the specific Future Ready strategies.
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