Permian Basin Workforce Board Region

Labor Market & Career Information

EXTERNAL RELATIONS DIVISION TEXAS WORKFORCE COMMISSION APRIL 12, 2017

LABOR MARKET AND CAREER INFORMATION Employment by Industry Sector Feb 2017

Mining, Logging, and Construction Manufacturing Trade, Transportation, and Utilities Information

Financial Activities Midland Odessa Professional and Business Services Educational and Health Services Leisure and Hospitality Other Services Government 0 5,000 10,000 15,000 20,000 25,000 30,000

LABOR MARKET AND CAREER INFORMATION WTI vs. Texas Annual Job Growth (Seasonally Adjusted)

$160 500,000 Jun 2008 - $133.88 400,000 $140 300,000 $120 200,000 $100 Jobs 100,000

$80 0

-100,000 ($/Barrel) $60 -200,000 $40 -300,000 $20 -400,000 Annual Job Growth $0 $53.47 -500,000 07 08 09 10 11 12 13 14 15 16 17 ------Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb

Source: Bureau of Labor Statistics, Current Employment Statistics & Cushing WTI

LABOR MARKET AND CAREER INFORMATION Rig Counts Trending Up

2,000 $120.00 Texas Rig Count 1,800 $110.00 U.S. Rig Count Excluding Texas

1,600 WTI $100.00

1,400 $90.00 Once Breakeven number 1,200 crossed, rigs start to shut down $80.00

1,000 $70.00

800 $60.00

600 $50.00

400 $40.00

200 $30.00

0 $20.00 13 14 15 16 13 14 15 16 17 ------Feb Feb Feb Feb Feb Aug Aug Aug Aug

Source:

LABOR MARKET AND CAREER INFORMATION Employment Recovery from Economic Downturn Seasonally Adjusted, Indexed to Pre-Downturn Peaks 140 U.S. 130 Texas Midland MSA 120 Odessa MSA

110

100

90

80

LABOR MARKET AND CAREER INFORMATION Annual Growth Rates Not Seasonally Adjusted, February 2017

8.0% Texas 6.0% Midland MSA 4.0% 1.8% Odessa MSA 2.0%

0.0%

-2.0% -0.8% -1.5% -4.0%

-6.0%

LABOR MARKET AND CAREER INFORMATION Annual Job Growth Rates (Seasonally Adjusted) January 2007 - Current

15.0% Midland MSA Texas U.S. Odessa MSA

10.0%

5.0%

0.0%

-5.0%

-10.0%

-15.0%

LABOR MARKET AND CAREER INFORMATION Texas MSAs Total Nonag Wage & Salary Employment (Seasonally Adjusted)

INDUSTRY SECTOR Feb 2017* Jan 2017 Feb 2016 OTM Absolute Change OTM % Change Abilene 68,100 67,400 68,100 700 1.0 Texarkana 60,500 59,900 61,000 600 1.0 Waco 120,700 119,700 117,900 1,000 0.8 Midland 88,100 87,400 88,900 700 0.8 McAllen - Edinburg - Mission 256,200 254,300 250,500 1,900 0.7 El Paso 316,400 314,600 306,200 1,800 0.6 Odessa 70,200 69,800 71,200 400 0.6 Lubbock 147,600 146,900 144,000 700 0.5 Amarillo 122,400 121,800 120,100 600 0.5 Sherman - Denison 47,000 46,800 46,000 200 0.4 Killeen - Temple 146,900 146,400 142,600 500 0.3 Corpus Christi 191,700 191,100 191,600 600 0.3 Houston - The Woodlands - Sugar Land 3,023,000 3,017,800 3,001,100 5,200 0.2 Tyler 106,300 106,200 103,400 100 0.1 Dallas - Plano - Irving MD 2,561,900 2,566,500 2,471,300 -4,600 -0.2 Fort Worth - Arlington MD 1,028,400 1,030,100 1,002,400 -1,700 -0.2 San Antonio 1,029,400 1,031,100 1,008,100 -1,700 -0.2 San Angelo 48,500 48,600 49,400 -100 -0.2 Laredo 103,500 103,800 101,500 -300 -0.3 Wichita Falls 57,200 57,400 57,900 -200 -0.3 Austin - Round Rock 1,015,100 1,018,700 987,700 -3,600 -0.4 Longview 96,100 96,500 98,100 -400 -0.4 Brownsville - Harlingen 142,300 143,100 140,500 -800 -0.6 Beaumont - Port Arthur 162,700 163,700 164,900 -1,000 -0.6 Victoria 41,900 42,200 42,800 -300 -0.7 College Station - Bryan 116,200 119,000 112,800 -2,800 -2.4

LABOR MARKET AND CAREER INFORMATION Unemployment Rates – Seasonally Adjusted, February 2007 - Current

12.0%

10.0%

8.0%

6.0%

4.0%

2.0% Texas US Midland Odessa 0.0% 08 15 11 13 12 12 11 10 17 10 07 14 09 16 07 14 08 15 ------Jul Jan Jan Jun Jun Oct Apr Apr Feb Feb Sep Sep Aug Dec Nov Nov Mar May

LABOR MARKET AND CAREER INFORMATION Permian Basin WDA Counties and Cities Not Seasonally Adjusted, February 2017 Unemployment Rates

Gaines County 4.0

Glasscock County 3.3

Midland County 4.2

Ector County 5.8 U.S. = 5.1% Andrews County 4.5 Texas = 4.9% Borden County 3.2

Howard County 5.8

Pecos County 6.4

Big Spring 6.5

Odessa 5.4

Midland 4.1

3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0

LABOR MARKET AND CAREER INFORMATION Permian Basin Population & Labor Force Size Not Seasonally Adjusted

250000 500000

240000 480000 230000 460000 220000 440000 210000 420000 200000 190000 400000 180000 380000 2010 2011 2012 2013 2014 2015 2016 Civilian Labor Force Population

LABOR MARKET AND CAREER INFORMATION Top industry of employment for region

Mining, Oil and Gas

Manufacturing

Transportation & Warehousing

Public Administration

Health Care & Social Assistance

Education Services

Retail Trade

Ranked by QCEW average weekly wages for that industry Top industry of employment for region, 1990-2016

Mining, Oil and Gas

Manufacturing

Transportation & Warehousing

Public Administration

Health Care & Social Assistance

Education Services

Retail Trade

Ranked by QCEW average weekly wages for that industry Top industry of employment for region

Mining, Oil and Gas

Manufacturing

Transportation & Warehousing

Public Administration

Health Care & Social Assistance

Education Services

Retail Trade

Ranked by QCEW average weekly wages for that industry Permian Basin WDA Employment Change by Industry Sector 2014-2024

Natural Resources & Mining Construction 1,940 Manufacturing -270 Wholesale Trade 2,110 Retail Trade 4,440 Transportation & Warehousing 1,300 Information 110 Financial Activities 260 Professional & Business Services 1,680 Education & Health Services 8,480 Leisure & Hospitality 5,910 Other Services 1,560 Government 990 Most Projected Annual Average Job Openings Permian Basin WDA: 2014-2024

Annual Average Wage 2015

Cashiers 375 $21,496 Retail Salespersons 335 $28,537 Combined Food Preparation & Serving … 290 $19,980 Waiters & Waitresses 255 $20,027 Office Clerks, General 200 $36,211 Registered Nurses 150 $64,404 General & Operations Managers 150 $137,153 Janitors & Cleaners, Ex. Maids & … 120 $23,623 Cooks, Restaurant 115 $25,390 Elementary School Teachers, Ex. Special … 110 $50,490

Growth Replacement needs

LABOR MARKET AND CAREER INFORMATION Education Occupational Growth Table Texas and Permian Basin WDA: 2014-2024

Annual Average Number Annual Average % Growth Occ Code Occupational Title Employment Change Employment 2014 2014-2024 2024 2014-2024

00-0000 Texas, All Occupations 12,417,690 14,987,620 2,569,930 20.70%

25-2021 Elementary School Teachers 138870 172,990 34120 24.60%

25-2022 Middle School Teachers 69320 86,400 17080 24.60%

Secondary School Teachers 100,950 125,740 24790 24.60% 25-2031 00-0000 Permian Basin, All Occupations 244,950 264,630 19,680 8.00%

25-2021 Elementary School Teachers 2,460 3,040 580 23.60%

25-2022 Middle School Teachers 950 1,170 220 23.20%

25-2031 Secondary School Teachers 1,430 1,760 330 23.10%

LABOR MARKET AND CAREER INFORMATION Wages Elementary School Teachers SOC 25-2021

WDA Entry Wage Mean Wage Gulf Coast $45,928 $57,266 Capital Area $41,677 $55,916 Tarrant County $46,643 $55,577 Coastal Bend $42,053 $54,330 Lower Rio Grande $44,361 $53,644 North Central $42,752 $53,619 Dallas $43,547 $53,592 Alamo $45,148 $52,981 Texas $42,156 $52,813 Borderplex $43,733 $52,312 South Texas $44,755 $51,925 Central Texas $42,243 $51,542 Permian Basin $41,960 $50,490

LABOR MARKET AND CAREER INFORMATION Where the Job Postings Are Now: February

Posting OTM Posting OTM Metro Area Metro Area s Change s Change DFW 105,529 0.90% College Station-Bryan 2,681 -4.10% Houston-Sugar 60,765 1.80% Brownsville-Harlingen 2,418 0.50% Land Austin-Round Rock 37,628 -1.30% Tyler 2,286 7.00% San Antonio-NB 29,342 0.80% Midland 2,019 5.80% El Paso 7,272 -2.10% Amarillo 1,980 -2.60% Corpus Christi 4,351 -0.80% Odessa 1,884 3.60% McAllen-Edinburg 3,950 -2.20% Abilene 1,688 -2.60% Killeen-Temple 3,609 3.90% Longview 1,548 10.80% Lubbock 3,458 -4.20% Laredo 1,400 -2.40% Beaumont-PA 3,331 -1.60% San Angelo 1,243 8.00% Waco 3,186 0.50% Wichita Falls 1,138 1.90% Source: Wanted Analytics for mid-month Feb 14th-Mar 13th

LABOR MARKET AND CAREER INFORMATION Top 10 Employers Posting Jobs Online

Midland MSA Postings Odessa MSA Postings The Dollar General 62 City of Odessa 95 Baker Hughes 55 Company 94 MIDLAND ISD 53 Granite Services Inc 88 Anadarko Corporation 46 Medical Center Hospital 80 City of Midland Texas 39 The Dollar General 68 Concho Resources Inc. 37 IASIS Healthcare LLC 55 Lowe's 36 Weir Specialty Pumps 52 United Supermarkets, LLC 35 Texas Tech University 51 Stripes Convenience Stores 35 Odessa Regional Medical Center 47 Texas Tech University 32 Weatherford 46

Source: Wanted Analytics for mid-month Feb. 14th – Mar. 13th

LABOR MARKET AND CAREER INFORMATION Industries Hiring Midland and Odessa MSAs

Industry Postings

Retail Trade 550 Health Care and Social Assistance 310 Wholesale Trade 311 Accommodation and Food Services 216 Manufacturing 166 Real Estate and Rental and Leasing 135 Mining, Quarrying, and Oil and Gas Extraction 134 Professional, Scientific, and Technical Services 113 Administrative and Support and Waste Management and Remediation Services 98 Transportation and Warehousing 81

Source: Wanted Analytics for mid-month Feb. 14th – Mar. 13th

LABOR MARKET AND CAREER INFORMATION Help Wanted Job Listings Permian Basin WDA

Job Type OTY Change Postings Heavy and Tractor-Trailer Truck Drivers ↑ 414 First-Line Supervisors of Retail Sales Workers ↑ 434 Maintenance and Repair Workers, General ↑ 309 Retail Salespersons ↑ 298 First-Line Supervisors of Mechanics, Installers, and Repairers ↑ 171 Sales Representatives, Wholesale and Manufacturing ↑ 156 First-Line Supervisors of Food Preparation and Serving Workers ↑ 147 Registered Nurses ↓ 131 First-Line Supervisors of Office and Admin Support Workers ↓ 116 Bus and Truck Mechanics and Diesel Engine Specialists ↑ 116 Service Unit Operators, Oil, Gas, and Mining ↑ 114 Stock Clerks and Order Fillers ↑ 100 Cashiers ↑ 95 Petroleum Engineers ↑ 86 Customer Service Representatives ↑ 81

Source: HWOL Feb. – Mar. 2017

LABOR MARKET AND CAREER INFORMATION “Hard Skills” Most In Demand Midland Region

Forklifts Preventive maintenance Health, Safety, and Environmental Electrical systems Technical support Quality control Instrumentation Bilingual Quality Assurance Food preparation systems Blueprints Human resources software Customer relationship management Supervisory control and data acquisition 0 20 40 60 80 100 120 140 160 180 200

LABOR MARKET AND CAREER INFORMATION “Certificates” Most In Demand Midland Region

Driver's License Commercial Driver's License HAZMAT Occupational Safety & Health Administration … Certified Registered Nurse Food safety programs Tanker and Hazmat Endorsement Certification in Cardiopulmonary Resuscitation DOT Medical card First Aid certification Accounting Continuing Education Forklift certification Automotive Service Excellence Liability insurance 0 200 400 600 800 1000 1200

LABOR MARKET AND CAREER INFORMATION “Soft Skills” Most In Demand Midland Region

Oral and written communication Integrity Detail oriented Marketing Team-oriented, teamwork Self-starting / Self-motivated Customer service oriented Organizational skills Problem solving Sales experience / ability Coaching Basic computer skills Troubleshooting Time management Management skills 0 200 400 600 800 1000 1200 1400 1600

LABOR MARKET AND CAREER INFORMATION Demographics

LABOR MARKET AND CAREER INFORMATION Midland-Odessa CSA Facts q 2016 Population: 325,750 q Median Age: 37.6 qMedian Household Income: $62,725 qMedian Housing Value: $131,200 q Males Per 100 Females: 96.9 q Veteran Population (18+): 4.9% q Percent of Population with a Disability: 12.0%

Source: U.S. Census Bureau, American Community Survey and Population Estimates Program, 2016 Estimates

LABOR MARKET AND CAREER INFORMATION Median Earnings by Education Midland-Odessa CSA and Texas

$80,000 Midland-Odessa CSA Texas $70,000 $67,079 $63,261 $60,000 $52,286 $51,701 $50,000 $39,783 $40,000 $35,341 $34,787 $28,266 $30,000 $27,232 $20,044 $20,000

$10,000

$0 Less than high High school Some college or Bachelor's degree Graduate or school graduate graduate (includes associate's degree professional degree equivalency)

Source: U.S. Census Bureau, American Community Survey, 2015 Estimates

LABOR MARKET AND CAREER INFORMATION More Education = Better Labor Market Outcomes

Earnings Unemployment rate and U-Rates by educational Median usual weekly earnings attainment, 2015

1.5% $1,730

1.7% $1,623

2.4% $1,341

2.8% $1,137

3.8% $798

5.0% $738

5.4% $678

8.0% $493

Note: Data are for persons age 25 and over. Earnings are for full-time wage and salary workers. Source: U.S. Bureau of Labor Statistics, Current Population Survey

LABOR MARKET AND CAREER INFORMATION Poverty Rate by Level of Education Midland-Odessa CSA (ages 25 and over)

Bachelor's degree or higher 8.5%

Some college or associate's degree 25.1%

High school graduate (includes equivalency) 24.9%

Less than high school graduate 41.5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Source: U.S. Census Bureau, American Community Survey, 2015 Estimates

LABOR MARKET AND CAREER INFORMATION Largest Postsecondary Non-Degree Occupations Permian Basin WDA

Heavy & Tractor-Trailer Truck Drivers

Nursing Assistants 2015 Auto Service Technicians & Average Mechanics Annual Licensed Practical & Licensed Wage Vocational Nurses $48,562 Medical Assistants

Firefighters Telecommunications Equip Installers/Rprs, Ex Line Installers Hairdressers, Hairstylists, & Cosmetologists Dental Assistants Heating, AC, & Refrigeration Mechanics & Installers $15,000 $25,000 $35,000 $45,000 $55,000

LABOR MARKET AND CAREER INFORMATION Largest Associate’s Degree Occupations Permian Basin WDA

Geological & Petroleum Technicians 2015 Average Life, Physical, & Social Science Technicians, All … Annual Wage 48,562 Preschool Teachers, Ex. Special Education

Civil Engineering Technicians

Engineering Technicians, Ex. Drafters, All Other

Electrical & Electronics Engineering Technicians

Radiologic Technologists

Respiratory Therapists

Paralegals & Legal Assistants

Architectural & Civil Drafters

LABOR MARKET AND CAREER INFORMATION Largest Bachelor’s Degree Occupations Permian Basin WDA

General & Operations Managers

Registered Nurses

Elementary School Teachers, Ex. Special …

Accountants & Auditors

Petroleum Engineers

Secondary School Teachers, Ex … 2015 Average Substitute Teachers Annual Wage $48,562 Middle School Teachers, Ex …

Construction Managers

Clergy

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LABOR MARKET AND CAREER INFORMATION