Characteristics of the foreign-born workforce and the role of language in the labor market.

1. The Labor Market Assessment Tool and English
Language Skill:
Greater Boston’s Foreign-Born Workforce and
the Role of Language in the Labor Market
Mark Melnik
Senior Research Associate
Boston Redevelopment Authority
Research Division
June 5, 2008

2. The Labor Market Assessment Tool (LMAT)-
What is it?
• An interactive computer-based program developed as a
partnership between the BRA Research Division and the Center
for Urban and Regional Policy (CURP) at Northeastern
University.
• Program developers:
• BRA’s Research Director Alvaro Lima;
• CURP’s Director Barry Bluestone;
• Alan Clayton-Matthews (a CURP Senior Fellow and an Associate
Professor of Public Policy at the University of Massachusetts Boston);
• BRA Senior Research Associate Mark Melnik.

3. The Labor Market Assessment Tool (LMAT)-
What does it do?
• Produces the distribution of occupations by educational, skill,
knowledge, and training requirements by industry.
• Estimates wages.
• Provides employment projections by educational, skill,
knowledge, and training requirements by industry for future
labor market scenarios.
• Can be used to:
• Estimate the difference between the educational attainment of the current
labor pool and the workforce requirements of the current labor market;
• Estimate both the labor demand and the occupational characteristics of the
labor supply.
• Combines various secondary data sources related to the labor
market and workforce.
• O*NET, OES, SF-3, Massachusetts DUA state projections, BLS national
projections.

4. LMAT Data Sources
Source: Introducing the Labor Market Assessment Tool, Boston Redevelopment Authority Research Division, November 2007.

5. The Labor Market Assessment Tool (LMAT)-
What is unique about it?
• Contains data on:
• Over 800 occupational titles;
• Close to 1200 industrial classifications;
• Approximately 140 different measures of job requirements;
• Two different sets of labor market projections for the year 2014.
• LMAT outputs can be linked with any other sources that use
the Standard Occupational Classification (SOC) and/or North
American Industrial Classification (NAICS) Systems.
• It is an all-in-one source for looking at:
• Occupational requirements by industry in the labor market;
• Critical demographic and human capital characteristics of the labor
force.
• Can be updated frequently to use the most-up-to-date
versions of the OES, O*NET, BLS and DUA labor market
projections and Census data.

6. The Labor Market Assessment Tool (LMAT)-
What can it be used for?
• Simulate different labor market scenarios.
• Evaluate the compatibility of a single industry with the
population of the city.
• Analyze a set of complementary industries within a
development plan.
• Compare labor supply and demand within the labor market for
various neighborhoods in Boston or Boston as a whole.
• Isolate the importance of key skills in selected industries.
• Plot wage distributions for occupations by education, skill, or
training requirements.
• Identify the typical training time associated with occupations
and industries in the labor market.
• Help inform curriculum at community colleges and workforce
development programs.

7. LMAT in Action-
Language Skills in the Labor Market
• The changing demographic makeup of our region.
• The increased demand for technical and social skills in
the labor market due to shifts in the key industrial
sectors in the economy.
• The characteristics of Metro Boston’s current workforce.
• The relative importance of language skill in the labor
market today and in the future.

8. Proportion of the Foreign-Born Population
1850-2006
0%
5%
10%
15%
20%
25%
30%
35%
40%
18
50
18
60
18
70
18
80
18
90
19
00
19
10
19
20
19
30
19
40
19
50
19
60
19
70
19
80
19
90
20
00
20
06
Boston
Massachusetts
United States
Source: US Census Bureau, BRA Research Division Analysis

9. Regions of Origin for Boston’s Foreign-Born
Population: 1860-2006
Regions of Origin – Boston (1860 to 2006)
78%
21%
1% 0%
0%
2%
20%
77%
Europe North America
Asia Latin America
Africa Other Countries
Countries Not Reported
3%
28%
38%
20%
0%7%
4%
Source: http://www.census.gov/population/www/documentation/twps0029/twps0029.html#data, 2000 American Community Survey, BRA Research Division
1860 – 1900 1910 – 1960 1970 – 2006

10. Regions of Origin for Boston’s Foreign-Born
Population: 1970-2006
Regions of Origin – Boston (1970 to 2006)
52%
9%
12%
5%
1%
19%
Europe North America
Asia Latin America
Africa Other countries
Countries Not Reported
2%
19%
45%
23%
0%9%
2%
Source: US Census Bureau, 2006 American Community Survey, BRA Research Division Analysis
1970 – 1980 1990 – 2006

11. Racial Composition of Boston
1980-2006
Race and Ethnicity in Boston (1980 to 2006)
68%
22%
3%
6%
1%
24%
11%
59%
0%
0%
1%5%
White
Black/African American
Latino
Asian
Native American
Other
Multi-racial
50%
24%
8%
2% 1%
15%
0%
*The Census did not start recording data on individuals who identified themselves as “multiracial” till 2000.
Source: Liming L., Perkins, G., Goetze, R., Vrabel, J., Lewis G., & Consalvo, R., (2001) Boston’s Population – 2000, Changes in Population, Race, Ethnicity in Boston and
Boston’s Neighborhoods – 1980 to 2000. Boston: Boston Redevelopment Authority, 2006 American Community Survey, Boston Redevelopment Authority Research
Division Analysis.
1980 1990 2006*

12. The Labor Market and the Workforce
• In recent years, there has been a fundamental shift in
the economy.
• Increased importance of service and knowledge
sectors.
• Decline in the manufacturing sector.
• Advancements in technology.
• Globalization.
• There is greater need for a workforce with advanced
levels of education, technical, and social skill than in the
past.
• Human capital characteristics of the population are of
critical importance when considering the economic
health of a region.

13. Characteristics of Metro Boston’s Workforce
(2006)
• There are approximately 1.9 million people in Metro
Boston workforce.
• There are approximately 59,000 more workers in Greater
Boston now than in 2000.
• Metro Boston’s workforce is among the highest educated
in the nation.
79%
1%
1%
6%
7%
6%
0%
White
African American
Hispanic
Asian
Native American
Other
Two or more
0%
5%
10%
15%
20%
25%
30%
8th Grade
or less
High
School
High
School
Graduate
Some
College
Assoc.
Degree
Bach.
Degree
Post-
Graduate
Educational Attainment-Greater Boston’s Workforce-2006
Source: 2006 American Community Survey, BRA Research Division Analysis

14. Metro Boston’s
Native Born and Foreign Born Workforce
2000
16.3%
83.7%
2006
79.2%
20.8%
Native Born
Foreign Born
Source: 2006 American Community Survey, BRA Research Division Analysis
Nativity Breakdown-Metro Boston’s Workforce- 2000 and 2006
• Between 2000 and 2006, Metro Boston’s foreign-born workforce increased
by almost 94,000 people.
• This amounts to an absolute increase of approximately 32%.
• While it is expected to see growth in the foreign-born population, it is
surprising to see this amount of change in a short period of time.

15. Comparing Educational Attainment of the Native
and Foreign Born Workforces in Metro Boston
1%
5%
21%
17%
7%
29%
20%
9% 9%
25%
13%
6%
18%
20%
0%
5%
10%
15%
20%
25%
30%
8th Grade
or less
Some High
School
High
School
Graduate
Some
College
Associate's
Degree
Bachelor's
Degree
Post-
gradute
Native Born Foreign Born
Educational Attainment by Nativity Status-Metro Boston’s Workforce
Source: 2006 American Community Survey, BRA Research Division Analysis
• Overall, there are significant differences in the education levels of Metro
Boston’s native-born and foreign-born workforces.
• 18% of Metro Boston’s foreign-born workforce has less than a high school
education, compared to 6% of the native-born workforce.
• Close to half of the native-born workforce has a 4-year college degree or
higher.
• A significant portion of the foreign-born workforce has advanced education.

16. Defining English Proficiency in the Workforce
• Previous research has used Census data to identify language
ability in the labor force.
• MassINC’s 2005 report The Change Face of Massachusetts.
• The BRA Research Division’s 2007 report, Language Skill
Requirements in the Labor Market.
• The Census asks respondents to self-evaluate their English
language ability.
• We define individuals who report that they speak English “not well”
or “not at all” as Limited English Proficient (LEP)
• We define individuals who report that they speak English “only”,
“very well”, or “well” as English Proficient (EP)

17. The LEP and EP Workforces
English Language Skills-Metro Boston’s Workforce- 2000 and 2006
Source: 2006 American Community Survey, BRA Research Division Analysis
2000
3.1%
96.9%
2006
95.3%
4.7%
EP LEP
• In 2000, close to 55,000 members of Metro Boston’s workforce had
limited English language skills.
• By 2006, close to 88,000 members of Metro Boston’s workforce could be
defined as having limited English language skills.
• This change marks an absolute increase of 37%.

18. Racial and Ethnic Breakdown of the
LEP and EP Workforces
• Overall, the racial and ethnical background of the LEP workforce is much
more diverse than the EP workforce.
• Over 59% of Metro Boston LEP workforce is either Hispanic/Latino or Asian
• There are a large number of whites in the LEP group.
• These are mainly immigrants hailing from European countries.
Race and Ethnicity of the LEP and EP Workforces
28%
7%
38%
22%
5%
0%
81%
6% 5% 6%
1% 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
White African
American
Hispanic Asian Other Two or more
% of LEP % of EP
Source: 2006 American Community Survey, BRA Research Division Analysis

19. Educational Attainment of the
LEP and EP Workforces
28%
17%
33%
8%
2%
9%
3%
1%
5%
22%
17%
7%
27%
15%
0%
5%
10%
15%
20%
25%
30%
35%
8th grade
or less
High School High School
Graduate
Some
College
Assoc.
Degree
Bach.
Degree
Post-
gradute
% of LEP % of EP
Source: 2006 American Community Survey, BRA Research Division Analysis
Educational Attainment by LEP and EP Workforces
• There are significant differences in the educational attainment levels of
the LEP and EP workforces in Metro Boston.
• 45% of the LEP workforce has less than a high school diploma, compared
to 6% of the EP workforce.
• Interestingly, 12% of the LEP workforce has a college degree.
• These are mostly likely people who earned degrees in their home country.

20. Summary of Workforce Characteristics
• Between 2000 and 2006, Metro Boston’s labor force grew
approximately 3%.
• During that same time period, Metro Boston’s foreign-born and
LEP workforces grew at a much faster rate.
– The foreign-born workforce grew 32%
– The LEP workforce grew 37%
• While growth in these populations is expected, the degree of
change in a short period of time is surprising.
• These results lend support to assertions that English language
proficiency will become a significant economic issue as the
foreign-born population begins to fill critical job vacancies.
Source: 2006 American Community Survey, BRA Research Division Analysis

21. Method for Estimating
Language Skill Requirements
• Employment data from the Bureau of Economic Analysis (BEA).
• Applied the 2014 projected growth rate for industries in the state
provided by the Massachusetts Department of Unemployment
Assistance (DUA) to the BEA’s industry employment numbers for
Metro Boston.
• We selected 3 language-based variables and aggregated their
scores into a language skill scale.
• Speaking, reading, writing.
• 35 point scale.
• All occupations were split into one of four language quartiles.
• Low
• Medium-low
• Medium-high
• High

22. Characteristics of the 2004 Labor Market
All Jobs by Language Skill Requirement in Metro Boston-2004
Low
Employment
19%
Average wage
$25,043
Medium-Low
Employment
30%
Average wage
$33,145
Medium-High
Employment
34%
Average wage
$53,680
High
Employment
17%
Average wage
$71,117
Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.
• Overall, 64% of all jobs in the labor market fall in the medium-
low or medium-high language skill categories.
• There is a clear connection between language skill requirements
and salary.
• The highest language skill category pays almost 3 times more
than the lowest language skill category.
• While there are jobs available to people with limited language
skill, these jobs pay dramatically less than jobs requiring even
modest language skills.

23. Characteristics of Expected New Jobs for 2014
Projected New Jobs (2004-2014) by Language Skill Requirement
Low
3% Growth
7% of New Jobs
Average wage
$17,998
Medium-Low
6% Growth
20% of New Jobs
Average wage
$29,079
Medium-High
11% Growth
41% of New Jobs
Average wage
$57,930
High
16% Growth
32% of New Jobs
Average wage
$74,109
Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.
• The number of new jobs created in our region available to people
with limited language skills will be severely limited.
• 93% of new jobs created in the region will require at least
modest language skills.
• Projected growth is much smaller in occupations requiring low
and medium-low language skill as compared to medium-high and
high language skill.
• New jobs in the highest language skill category pay more than 4
times better than new jobs in the lowest language skill category.

24. Language Skill Requirements in the Labor
Market-Current and New Jobs
Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.
Language Skill Low Medium-Low Medium-High High
Wages-Current
Jobs
$25,043 $33,145 $53,680 $71,117
Wages-New Jobs $17,998 $29,079 $57,930 $74,109

25. Conclusions
• These data demonstrate that the foreign-born workforce and the
workforce with limited English skills continues to grow in our
region.
• Consistent with recent trends and previous research.
• Population trends indicate immigrants will likely be relied on to fill
critical job vacancies in our region in the future.
• Human capital concerns.
• At the same time, we see significant disparities in the proportion,
pay, and growth rates of occupations requiring low language skill
and those that require advanced language skill.
• Quality of life issues for those with limited English skills.
• These data underscore the importance of ESOL courses.
• High demand for these classes—large waiting lists.
• Language skills in Greater Boston’s foreign-born workforce is both
an economic development issue for the region, as well as a quality
of life issue for a growing segment of the region’s population.