Background

Because of the recent economic turmoil, EMSI has received many questions about how to deal with local mass layoffs. In this white paper, we have compiled our main recommendations for using labor market data and analysis when drafting re-employment strategies.

Download a PDF version of the white paper: Strategic Responses to Layoffs for Re-employment

Introduction

When your community is hit by layoffs, there is little time or resources for collecting, analyzing, compiling, and organizing relevant statistics to guide strategic planning efforts.  As a result, many stakeholders may be unaware of the types of information available. In this section, we will (1) review some useful data and information resources and (2) illustrate how they quickly answer specific questions about the local workforce and economy.

For the purpose of dealing with layoffs we will look at data and analysis centered around:

1. Identifying the potential direct and indirect impacts of the layoff event,
2. Understanding and measuring new and replacement jobs, and
3. Evaluating the knowledge and skill sets of displaced workers to discover opportunities that are compatible with their existing competencies.

Such information allows local leaders to simply and quickly provide a data-driven, strategic direction to the response effort.

A Case Study from Ohio

North central Ohio’s economy has been hit hard in recent years. Numerous plant closures and layoffs in manufacturing have forced locals to seek out new employment, and regional agencies working to create strategies that can be used to redevelop the workforce.  As a result, the education, workforce, and economic development communities are drawing upon a wide array of resources and information. They are using everything from federal grants, labor market analysis, economic impact studies, and comprehensive evaluations of the region’s demographics, education, and skills to design data-driven plans that will reshape and influence the future direction of the economy.

At this point, a large portion of their work has involved analyzing:

1. How dislocated and underemployed workers might be re-trained for compatible industries and occupations, and
2. What other industry sectors would best complement the knowledge, skills, and abilities of the local workforce, to focus business recruitment efforts.

So far, one of the key findings has been that there are many stable industries within the manufacturing sector that actually have a need for manufacturing workers. As a result, local companies that are having a hard time finding workers can now begin to reconnect with the new available workforce.  This knowledge is a great stopgap, and gives people a chance to stay employed in more secure jobs and still make use of their current skills.

For more on manufacturing in Ohio, click here.

To continue reading, click on the links below for four sections:

1.  Identifying Impacts

2.  The Importance of Replacement Jobs

3.  Analyzing the Workforce and Re-employment

4.  Conclusion and Data & Methodology