Contact: Laura Holden
Three Rivers Workforce Investment Board
412.552.7089

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Managing the Changing Workforce in Southwestern Pennsylvania:
A closer look at issues related to our region’s aging workforce

Pittsburgh, PA (April 20, 2006) – A new study has confirmed what many here have suspected: that the workforce in the Pittsburgh region is somewhat older than the workforces of comparable regions. It also supports the belief that if it hadn’t been for the loss in population following the steel industry decline in the 1980s, the region’s population would be much younger today. Against this backdrop and the uncertainty related to projections of population growth or decline that extend to the next 25 – 30 years, strategic workforce planning faces enormous challenges. But taking no action could be risky since the upshot may be a competitive disadvantage for the region.

In partnership with Carnegie Mellon University’s Center for Economic Development, the Three Rivers Workforce Development Board has conducted a study of the industries impacted by the aging demographics of our region. This research, partially funded by the Heinz Endowments through the Regional Workforce Collaborative of Southwestern Pennsylvania, utilizes the following sources: Local Employment Dynamics (LED), a data source developed by the U.S. Census Bureau; industry surveys of employers; and input from various industry experts. The results of this study will help define the problem for the region and inform various constituencies about the workforce situation across industries and within those that are particularly vulnerable to workforce shortages. It will also be used to craft appropriate solutions by Employers, Policy Makers, Educators, and Training Providers.

We have become accustomed to viewing the region as homogenous and old. This line of thinking leads to seeing workforce problems that may not exist along with inefficient planning and policy making. This study offers some new perspectives about the issue including: The region is not homogenous in terms of the demographic composition of the workforce. Based on a new Census data tool, this study identified industries that were likely to have older workforces. The follow-up qualitative survey explored the employer perspective among these selected industries.
This study offers regional stakeholders a different perspective and a better understanding of the definition and scope of the problem such as:

• Industries are not equally old. They represent a mix of ages and other demographics.
• Not every firm in industries with a high concentration of older workers fit an industry-wide pattern; some firms have a relatively high concentration of younger workers.
• Even some “young” industries” have large pockets of older workers that are approaching retirement.
• For some industries, having a higher concentration of older workers doesn’t pose a problem and may be an advantage.

Based on percentage (not number) of older workers, some of the oldest industries in SWPA include: mining, petroleum and coal products, utilities, primary metals manufacturing, transit and ground passenger transportation, and air transportation. On the other hand, our data analysis suggests that the transit and ground passenger transportation industry, although an industry characterized by an older workforce, does not necessarily have an overarching problem. The picture for other industries was either mixed (primary metals manufacturing), or inconclusive due to insufficient information (air transportation, petroleum and coal products).

Strategies to address the issue of replacing older workers, while uneven, are gaining strength. Several organizations, for example, in the mining and utilities industries have implemented programs that deal with replacing retiring workers. Through the forums and regional discussions sparked by this study, we will issue additional findings about some of the creative approaches and lessons learned from employers.

Study Method and Application

Study results will be released in installments on the web site of The Three Rivers Workforce Investment Board. The 1st installment, Introduction, Methodology and Key Findings is available at www.trwib.org.

• Introduction, Methodology and Key Findings
• In-Depth Industry Profile: Mining, Petroleum, Coal Products Manufacturing
• In-Depth Industry Profile: Utilities
• In-Depth Industry Profile: Primary Metals Manufacturing
• In-Depth Industry Profile: Transit and Ground Passenger Transportation, Air Transportation
• Executive Summary & Recommendations

In addition, a series of forums will be conducted with interested organizations to further examine the issue from a number of vantage points – including employers, industry specialists, individual organizations, policy-makers, and workforce professionals – so that the region is well positioned to deal with shifting demographics. For the purposes of this study the southwestern Pennsylvania region is defined as a nine county region including Allegheny County, Armstrong County, Beaver County, Butler County, Fayette County, Greene County, Indiana County, Washington County, and Westmoreland County.

Study Partners

The Three Rivers Workforce Investment Board

The Three Rivers Workforce Investment Board (TRWIB) is an employer-driven, policy-making entity for Pittsburgh and Allegheny County. Board members, appointed by the Mayor of Pittsburgh and the County Chief Executive, share a concern about workforce quality and the availability of good jobs in the region. The 1998 federal legislation that consolidated employment and training programs, The Workforce Investment Act, also created local workforce investment boards, including the TRWIB.

Center for Economic Development

The CED is affiliated with the H. John Heinz III School of Public Policy and Management at Carnegie Mellon University. Established in 1968 and renamed in 1992 in honor of the late U.S. Senator from Pennsylvania, the Heinz School improves the ability of the public, private and non-profit sectors to address important problems and issues facing society.