16
NELP | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial Midwest: Labor Standards and Unions in the Booming Hospital Industry Introduction & Summary Across the nation, Americans are working harder and producing more but still struggling to get by. 1 Despite low unemployment rates, many workers increasingly feel like the economy is not working for them, with growing inequality, stagnant wages, and even declining life expectancy fueling economic anxiety. 2 No wonder that policymakers across the political spectrum see creating more manufacturing jobs as a key policy goal. Manufacturing has long been associated with good jobs, in large part because of its strong unions and historically robust labor standards. 3 This has been particularly true in the Industrial Midwest, 4 where for decades quality manufacturing jobs enabled residents to build secure middle- class lives. It is important that those values be preserved in today’s growing industry sectors so that the region can sustain its strong and vibrant communities. Health care is one such growing industry sector—one expected to add more jobs than any other sector over the next decade. 5 Within health care, the hospital DATA BRIEF | AUGUST 2017

A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

Embed Size (px)

Citation preview

Page 1: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 1

APrescriptionforGoodJobsintheIndustrialMidwest:LaborStandardsandUnionsintheBoomingHospitalIndustry

Introduction&Summary

Acrossthenation,Americansareworkingharderandproducingmorebutstillstrugglingtogetby.1Despitelowunemploymentrates,manyworkersincreasinglyfeelliketheeconomyisnotworkingforthem,withgrowinginequality,stagnantwages,andevendeclininglifeexpectancyfuelingeconomicanxiety.2Nowonderthatpolicymakersacrossthepoliticalspectrumseecreatingmoremanufacturingjobsasakeypolicygoal.Manufacturinghaslongbeenassociatedwithgoodjobs,inlargepartbecauseofitsstrongunionsandhistoricallyrobustlaborstandards.3ThishasbeenparticularlytrueintheIndustrialMidwest,4wherefordecadesqualitymanufacturingjobsenabledresidentstobuildsecuremiddle-classlives.Itisimportantthatthosevaluesbepreservedintoday’sgrowingindustrysectorssothattheregioncansustainitsstrongandvibrantcommunities.Healthcareisonesuchgrowingindustrysector—oneexpectedtoaddmorejobsthananyothersectoroverthenextdecade.5Withinhealthcare,thehospital

DATABRIEF|AUGUST2017

Page 2: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 2

industryinparticularprovidesakeyexamplenotonlyoftheopportunitythatcomesfrombringingworkervoiceandimprovedlaborstandardstotheservicesector,butalsoofthescopeofchallengesahead.InmanymajorcitiesintheIndustrialMidwest,hospitals(orhealthcaresystems6)areamongthelargestprivate-sectoremployers.SeeAppendixA.Hospitalsareoftentheeconomicanchorsoftheircommunities,generatingmillionsofjobs,directlyorindirectly.7Asaresult,hospitalsandthewagestheypayhaveanoutsizedroleontheimpactoftheeconomichealthofcommunities.Buttoday,thevastmajorityofhospitalservicejobsarenotobjectively“goodjobs.”Foreveryhigh-paiddoctorinthehospitalindustryintheIndustrialMidwestandindeednationwide,therearemorethansixworkersprovidingvitalsupportiveservicesthatastronghealthcaresystemneeds:workerswhosterilizesurgicalinstruments,cleanhospitalrooms,maintainpatientfiles,prepareanddeliverfood,keeppatientscleanandcomfortable,andtransportpatientswithinthehospital.8Today,toomanyofthesejobsfailtopayalivingwage,tothedetrimentofthemorethan300,000workerswhoholdthesejobsintheIndustrialMidwestalone,manyofwhomarewomenandpeopleofcolor.Foreveryhighlypaiddoctorinthehospitalindustry,therearesixworkersprovidingessentialsupportiveservices.Wehavetheopportunityasanationtoimprovethesejobsbyapplyingkeyprinciplesfrommanufacturingjobs—specifically,byimprovinglaborstandardsandensuringthatworkershavevoiceintheworkplace.Raisingtheminimumwageto$15perhourandrespectinghospitalworkers’righttojoinaunionwouldsignificantlyimprovethejobsinthegrowinghospitalindustryandthehealthcaresectormorebroadly.ServiceSectorOffersOpportunitytoGrowGoodJobs

Formanydecades,theservicesectorhasdrivenbothemploymentandemploymentgrowthintheUnitedStates.Since1980,theprivateservicesectorhasaddedmorethan52millionjobs,andby2016itrepresented83percentofallprivateemployment.Incomparison,manufacturingoverthissameperiodhasshedsixmillionjobs—a34percentdropfrom1980—andnowrepresentsjust10percentofallprivate-sectoremployment.(SeeFigureA.)Healthcare—onesignificantcomponentoftheservicesector—hasexperiencedsharpincreasesinemploymentoverthelast25years,adding6.8millionjobs,anearly80percentincreaseoverthatperiod.9Giventhesetrends,healthcaretodayeclipsesnearlyallotherprivate-sectorindustrysectorsinemployment.Itissecondonlytoprofessionalandbusinessesservices,andhealthcareisprojectedtoovertakethatsectoraswellby2024.10

Page 3: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 3

FigureA:U.S.PrivateServiceSectorandManufacturing1980-2016

Source:AggregateddatafromtheU.S.PrivateServiceSectorandManufacturing1980-2016,CurrentEmploymentStatistics,BureauofLaborStatistics.TheIndustrialMidwestlargelymirrorsthenationaltrends,withmanufacturinglosing1.4millionjobsandhealthcaregaining1.3millionoverthelast16years.By2016,healthcareendedupwithanet780,000moreworkersinthisregionthanmanufacturing.11(SeeFigureB.)Withinhealthcare,hospitalsinparticularhavegrownby18percentsince2001.12

FigureB:IndustrialMidwestHealthcareandManufacturingEmployment2001-2016

Source:AggregateddatafromtheQuarterlyCensusofEmploymentandWages,BureauofLaborStatistics,forthe11IndustrialMidweststates,https://www.bls.gov/cew/.

0

50

100

150

200

250

U.S.Employment1980-2016Index1980=100

PrivateServiceProviding Manufacturing

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

6,500,000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

HealthCare&SocialAssistance Manufacturing

Page 4: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 4

HealthCareWillContinuetoDriveJobGrowthinServiceSector

AccordingtothelatestbiennialBureauofLaborStatistics(BLS)long-termemploymentprojections,healthcareiscurrentlythefastest-growingindustrysectorintermsofemployment,anditisexpectedtoaddthemostnewjobsnationwidefrom2014to2024.Thesectorisprojectedtogrow21percent,providing41percentoftotalemploymentgrowthoverthatsameperiod,whilemanufacturingemploymentisprojectedtodecrease7percent.BLShasalsoprojectedthatthehealthcareindustrywillhaveallfiveofthetopfivefastest-growingsectors(bydetailedindustry),andthreeofthetop10sectorsaddingthemostjobs,includingthehospitalsector,whichitselfisprojectedtoincreaseby394,900jobs.13(SeeFigureC.)

FigureC:BLSNationwideEmploymentProjections

Source:ProjectionsofIndustryEmployment2014-24,BureauofLaborStatistics,https://www.bls.gov/careeroutlook/2015/article/projections-industry.htm.

Page 5: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 5

Moststatesproducetheirownprojectionsofjobgrowththatlargelyparallelthenationalpredictions.In10oftheIndustrialMidweststatesidentifiedabove(allbutKentucky),thehealthcaresectorinaggregateisprojectedtoaddmorethan650,000jobsinthedecadeendingin2024—a13percentincreasefrom2014—including120,000inhospitals.14Overthesameperiod,manufacturingintheregionisprojectedtoexperiencenetjobloss,includinginsevenofthe10statesthatmakeprojections.15SeventyPercentofServiceWorkersinHospitalsEarnLessThan$15anHour

Foreveryhigher-paiddoctorinhospitalsintheIndustrialMidwest,therearemorethansixserviceworkersinhospitalswhoperformavarietyofimportantfunctionsrelatedtoensuringthatpatientsgetpropermedicalcare.Thisworkincludestendingtopatients,transferringpatients,cleaning,stockingsuppliesandequipment,cooking,foodanddrinkpreparation,processingspecimens,completingandmanagingdrugorders,sterilizingsurgicalinstruments,andtransportingpatients,amongothercriticaltasks.Morethanonemillionofthenation’shospitalworkersareemployedinthethreebroadoccupationalcategoriesthatcapturethiswork—healthcaresupport,foodpreparationandservice,andbuildingandgroundscleaning.16Table1providesrepresentativeoccupationaltitlesundereachofthesegroups.

Table1:RepresentativeServiceWorkersinHospitals

MajorGroup

(OccupationCode)

HealthcareSupport(31-0000)

FoodPreparation

&Service(35-0000)

Building&

GroundsCleaning&Maintenance(37-0000)

RepresentativeOccupationalTitles

NursingAssistants;

Phlebotomists

Cooks;

Institution&CafeteriaFoodPreparationWorkers;

FoodServers,Nonrestaurant

Janitors&Cleaners;

Maids&HousekeepingCleaners

Thehospitalindustryisamajordriverofoureconomy.17In2015,thebroadersetofhealthcarespendingrepresented18percentoftheU.S.grossdomesticproduct;itisprojectedtoreach20percentby2025.18Hospitalsrepresentthesinglelargestcomponentofthehealthcaresectorandthesecond-largestsourceofprivate-sector

Page 6: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 6

jobsoverall,employingmorethan5.4millionpeople,accordingtoindustryanalysis.19Oftenthelargestemployersintheircommunities,hospitalsthushaveboththeopportunityandresponsibilitynotonlytoprovidehigh-qualitycaretotheirpatients;theycanandmustincubategoodjobsintheircommunities,layingthefoundationforlong-termeconomicgrowthandcommunitystability.20Seventypercentofhospitalserviceworkersnationwide—and71percentintheIndustrialMidwest—arepaidlessthan$15anhour.ButouranalysisofgovernmentdatafindsthatAmerica’shospitalsarenotfulfillingthispromise.Acrossthecountry,70percentofhospitalserviceworkersarepaidlessthan$15anhour—anamountthatasingleadultlivinganywhereinAmericawouldneedtocoverthebasics,letaloneexpensesrelatedtoraisingchildrenorsupportingafamily.21IntheIndustrialMidwest,71percentofallhospitalserviceworkersarepaidlessthan$15anhour.22WomenandPeopleofColorHoldMajorityofHospitalServiceJobsinIndustrialMidwest

Womenandpeopleofcolordisproportionatelyholdservicejobsinhospitals,includingintheIndustrialMidwest.AccordingtoouranalysisofU.S.EqualEmploymentOpportunityCommissiondata,23inthe14metropolitanareaswithapopulationofmorethanonemillionintheIndustrialMidweststates,thevastmajorityofthehospitalserviceworkforceismadeupofwomen,andnearlyhalfoftheoverallworkforcearenon-white(Table2).Thismeansthathospitalsthatpaylowwagesamplifyandreinforcegenderedandracializedpatternsofincomeinequality,giventhatthemajorityofAfricanAmericansandLatinoworkers,andnearlyhalfofwomenworkers,makelessthan$15perhour.24Butthosehospitalsthattakeonthechallengetocreategoodjobshaveapowerfulopportunitytomakeadifferenceinaddressingstructuralinequalityinoureconomy.

Table2:DemographicsofHospitalServiceWorkersinLargeIndustrialMidwestMetroAreas(>1M)

Race&GenderIdentification

ShareofHospitalServiceWorkers

TotalNon-White 49%

Women 68%

Black 37%

BlackMen 13%

BlackWomen 24%

Hispanic 5%

Page 7: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 7

ThePrescription:WorkerVoiceandStrongLaborStandards

Thesameone-twopunchthattransformedmanufacturingintothe20thcentury’sgood-jobsgeneratorcandrivecreationofgoodjobsinhospitalsandhealthcaremorebroadly.Thestartingpointsforthistransformationarehigherwagesandworkervoice.Higherminimumwageswouldimmediatelyraisethewagesofhospitalserviceworkersearninglessthan$15—amuch-neededeconomicboostforworkersintheIndustrialMidwestandthroughoutthecountry.Asoutlinedpreviously,atleast70percentofhospitalserviceworkers—and71percentofallhospitalserviceworkersintheIndustrialMidwest—wouldgetaraisewithsuchapolicy.Ensuringthatworkershaveavoiceinthetermsandconditionsoftheirworkdoesevenmoretocreategoodjobs.Toillustratetheroleofunionsinboostinghospitalserviceworkers,Table3capturesthestartinghourlywageforunionhospitalserviceworkersinSeattle,NewYork,andOakland,allofwhicharehigherthanthe$15mark.25

Table3:HourlyStartingWageforUnionWorkers

Occupation

Kaiser

Permanente,NorthernCalifornia

LeagueofVoluntaryHospitals&Homes

ofNewYork

SwedishMedicalCenter(Seattle)

CNA $25.58 $18.20

Cook $27.36 $23.26 $17.11

Dishwashers $18.05

FoodServer $24.38 $18.05 $16.11

HousekeepingCleaner $24.66 $18.05 $15.34

Laundry $18.05 $15.08

ParkingLotAttendant $24.49

PatientTransport $24.06 $15.34

ShuttleDriver $24.87 $18.83 $16.42

Workervoicedoesmorethanimprovethequalityofhospitalworkers’jobs:ithelpsensurethathospitalserviceworkersprovidethebestpossiblepatientcare.Forexample,ateamofeconomistsrecentlycompletedanempiricalanalysisofhospitalunionizationinCaliforniabetween1996and2005;theyfoundthathospitalswherekeycaregiverswereunionizedoutperformedhospitalsthatwerenotunionizedin12of13“nurse-sensitive”patientoutcomes,afteraccountingforhospital-specific

Page 8: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 8

trends.26Theauthorsfoundthatafternurseswereunionized,hospitalshadsignificantdropsintheincidenceofeverythingfromsugarshockfromdiabetestodelusion,disorientation,anddepression.27Theysuggestnumerouspossibleexplanations,includingthathigherwagesmayresultin“increasing[employee]effort,reducedturnover,andpossiblyincreasingmorale.”28Thatrationalecouldsuggestsimilarbenefitsfromunionizinghospitalsupportworkersaswell.Conclusion

Oneofthekeylessonsofthe20thcenturyisthatsolidinvestmentinhigh-growthindustries,throughstronglaborstandardsandrobustworkerorganization,canconvertevendirtyanddangerousworkintogoodmiddle-classjobsthatnurtureandsustainworkingpeopleandtheirfamiliesandcommunities.Asimilarcommitmenttogoodhealthcarejobs,particularlyinlow-wagehospitalpositions,cantransformthe21stcentury’shigh-growthsectorsintoladdersoutofpovertyandintoathrivingmiddleclass.NotesonMethodology

Estimatingthenumberandshareofworkersmakinglessthan$15perhour:ThebulkofouranalysisinthisstudyusesdatafromtheCurrentPopulationSurvey(CPS),theprimarygovernmentsurveycontaininginformationonwagesandhours.TheCPSisamonthlynationalsurveyofapproximately60,000householdsthatisrepresentativeoftheU.S.non-institutionalpopulationaged16andolder.WeusedtheCurrentPopulationSurveyMergedOutgoingRotationGroups(CPSORG)filesmadepubliclyavailablebytheNationalBureauofEconomicResearch(NBER).WedefinedhospitalserviceworkerstoincludeworkersclassifiedintheCensusIndustrialClassificationas8190(Hospitals)inthesethreeoccupations:healthcaresupportoccupations;foodpreparationandserving-relatedoccupations;andbuildingandgroundscleaningandmaintenanceoccupations.Inordertohaveasamplesufficientlylargetoanalyzespecificoccupationsandindustries,ouranalysiscombinesdatafromthelastthreeconsecutiveyearsavailable(2014-2016).Weusewagevariablesinwhichallvalueshavebeenconvertedto2016dollars.Oursampleincludesprivate-andpublic-sector,hourlyandsalariedworkers.Weexcludeself-employedworkers.Fornon-hourlyworkers,hourlywagesarecalculatedusingreportedhoursworked.Thefigureswereportarecalculatedfromhourlyearningsthatdonotincludetips,overtime,andcommission.Notethatthereisatendencyforworkerstoreporthourlyearningsinroundnumbers,whichcausespercentilesofthedistributionto“clump”atwhole-dollarvalues.Ouranalysisdoesnot“smooth”wagestocorrectforthissourceofmeasurementerror.Forcalculationsinvolvingwages,weonlyincluderespondentsforwhomwagedataareavailable.

Page 9: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 9

Appendix

CHICAGO

2ofthe3largestprivateemployersarehealthsystemso #1AdvocateHealthCare–18,930employeeso #3NorthwesternMemorialHealthcare–15,747employees

Source:Crain’sListChicago’sLargestEmployersasof12/31/2015MetroAreaHospitalEmployment&Projections

MetroArea2016HospitalEmployment

ProjectedNewHospitalJobs2014-24

Chicago(CookCounty) 130,504 4,163Chicago-Naperville-ArlingtonHeightsIL 155,608 8,130

Source:ILDepartmentofEmploymentSecurityhttps://illinois.virtuallmi.com/vosnet/dashboards/defaultana.aspx?menuid=MENU_START_PAGE_DASHBOARD_ANA&pu=1&plang=E

DemographicsofHospitalServiceWorkersValuesinPercentages

Chicago-Naperville-Elgin,IL-IN-WIRace/Ethnicity Men Women AllEmployees

ALLEMPLOYEES 31.36 68.64 100ASIANAMERICAN 2.72 3.78 6.5BLACK 11.35 25.34 36.69HISPANIC 6.68 12.63 19.31TOTALNONWHITE 21.29 42.75 64.04WHITE 10.07 25.89 35.96

Source:EEO-1data,https://www1.eeoc.gov/eeoc/statistics/employment/jobpat-eeo1/

HospitalMarketProfits–aggregatedMedicarecostreportdataforacutecare&children’shospitals

Chicago-Naperville-Elgin,IL-IN-WI

Chicago/CookCounty

Profits Hospitals Profits HospitalsFY2015 $1,311,974,147 73 $849,153,433 47

Source:CenterforMedicareandMedicaidServices,HealthCareCostReportInformationSystem(HCRIS)

Page 10: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 10

CLEVELAND

Top2non-temporaryservicefirmemployersinClevelandarehealthsystemso #1ClevelandClinic–34,328employeeso #2UniversityHospitals–21,519

Source:Crain’sClevelandBusiness,CompanyData, December26,20164oftop10employersinthestateofOhioarehealthsystems

o #2ClevelandClinic–49,050employeeso #5MercyHealth–32.035o #7UniversityHospitalsHealthSystem–26,000o #8OhioHealth–22,340employees

Source:OhioMajorEmployers,OhioDevelopmentServicesAgency,April1,2017

MetroAreaHospitalEmployment&Projections

MetroArea2016HospitalEmployment

ProjectedNewHospitalJobs2014-24

ClevelandMSA 69,000 4,800Source:OhioDepartmentofJobsandFamilyServices,http://ohiolmi.com/

DemographicsofHospitalServiceWorkersValuesinPercentages

Cleveland-Elyria,OHRace/Ethnicity Men Women AllEmployees

ALLEMPLOYEES 30.26 69.74 100ASIANAMERICAN 0.5 1.04 1.54BLACK 15.04 30.56 45.6HISPANIC 1.24 2.71 3.95TOTALNONWHITE 17.41 35.86 53.27WHITE 12.85 33.88 46.73

Source:EEO-1data,https://www1.eeoc.gov/eeoc/statistics/employment/jobpat-eeo1/

HospitalMarketProfits–aggregatedMedicarecostreportdataforacutecare&children’shospitals

Cleveland Profits HospitalsFY2015 $985,892,275 24

Source:CenterforMedicareandMedicaidServices,HealthCareCostReportInformationSystem(HCRIS)

Page 11: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 11

DESMOINES

2oftop3employersinCentralIowaarehealthsystemso #2UnityPointHealth–8,026employeeso #3MercyMedicalCenter–7,055

Source:CentralIowa’sLargestEmployers,BusinessRecord2017BookofLists

MetroAreaHospitalEmployment&Projections

MetroArea 2017Q1Hospital

Employment

ProjectedNewHospitalJobs

2014-24

NotesonProjectionGeography

DesMoines(PolkCounty)

11,663 610 WorkforceDevelopmentZone11(DesMoines

area)Source:IowaWorkforceDevelopment,https://www.iowaworkforcedevelopment.gov/labor-market-information-division

DemographicsofHospitalServiceWorkersValuesinPercentages

DesMoines-WestDesMoines,IARace/Ethnicity Men Women AllEmployees

ALLEMPLOYEES 26.12 73.88 100ASIANAMERICAN 3.51 7.21 10.72BLACK 3.83 7.8 11.63HISPANIC 1.95 5.65 7.6TOTALNONWHITE 9.88 21.96 31.84WHITE 16.24 51.92 68.16

Source:EEO-1data,https://www1.eeoc.gov/eeoc/statistics/employment/jobpat-eeo1/

HospitalMarketProfits–aggregatedMedicarecostreportdataforacutecare&children’shospitals

DesMoines Profits HospitalsFY2015 $236,586,560 3

Source:CenterforMedicareandMedicaidServices,HealthCareCostReportInformationSystem(HCRIS)

Page 12: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 12

DETROIT

2of3largestprivateemployersinDetroit,or3of10largestarehealthsystems(excludingpublicuniversitiesandhealthsystems)

o #2DetroitMedicalCenter–9,184employeeso #3HenryFordHealthSystem–8,790employeeso #10AscensionHealth–3,159employees

Source:Crain’sDetroitListasofJune2016employees4oftop10largestprivateemployersinDetroitRegionarehealthsystems(excludingpublicuniversitiesandhealthsystems)

o #5BeaumontHealth–22,225employeeso #6HenryFordHealthSystem–17,332employeeso #8TrinityHealth–14,231employeeso #10AscensionHealth–11,303employees

Source:DetroitRegionalChamberofCommerce,LargestEmployersDetroitRegion2016MetroAreaHospitalEmployment&Projections

MetroArea 2016HospitalEmployment

ProjectedNewHospitalJobs2014-24

NotesonProjectionGeography

DetroitMSA 97,700 6,000 DetroitProsperityRegion-Macomb,Wayne,OaklandCounties

Source:MichiganDepartmentofTechnology,ManagementandBudget,http://milmi.org/DemographicsofHospitalServiceWorkersValuesinPercentages

Detroit-Warren-Dearborn,MIRace/Ethnicity Men Women AllEmployees

ALLEMPLOYEES 22.63 77.37 100ASIANAMERICAN 0.84 2.02 2.86BLACK 8.11 31.96 40.07HISPANIC 0.6 1.78 2.38TOTALNONWHITE 9.98 37.09 47.07WHITE 12.65 40.28 52.93

Source:EEO-1data,https://www1.eeoc.gov/eeoc/statistics/employment/jobpat-eeo1/HospitalMarketProfits–aggregatedMedicarecostreportdataforacutecare&children’shospitals

Detroit Profits HospitalsFY2015 $519,069,155 37

Source:CenterforMedicareandMedicaidServices,HealthCareCostReportInformationSystem(HCRIS)

Page 13: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 13

MILWAUKEE

• Top3privateemployersinMilwaukeeareaarehealthsystemso #1AuroraHealthCare–26,462employeeso #2AscensionWisconsin–12,000o #3FroedtertHealth–10,913employees

Source:MilwaukeeBusinessJournal,LargestMilwaukee-areaPrivateEmployers,July21,2017

MetroAreaHospitalEmployment&Projections

MetroArea2016HospitalEmployment ProjectedNewHospitalJobs2014-24

MilwaukeeMSA 39,400 N/ASource:WisconsinDepartmentofWorkforceDevelopment,http://worknet.wisconsin.gov/worknet/

DemographicsofHospitalServiceWorkersValuesinPercentages

Milwaukee-Waukesha-WestAllis,WIRace/Ethnicity Men Women AllEmployees

ALLEMPLOYEES 21.82 78.18 100ASIANAMERICAN 0.41 2.15 2.56BLACK 6.81 24.15 30.96HISPANIC 2.05 6.36 8.41TOTALNONWHITE 9.46 33.58 43.04WHITE 12.36 44.6 56.96

Source:EEO-1data,https://www1.eeoc.gov/eeoc/statistics/employment/jobpat-eeo1/

HospitalMarketProfits–aggregatedMedicarecostreportdataforacutecare&children’shospitals

Milwaukee Profits HospitalsFY2015 $584,565,300 19

Source:CenterforMedicareandMedicaidServices,HealthCareCostReportInformationSystem(HCRIS)

Page 14: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 14

PITTSBURGH

• Top2privateemployersinPittsburghareaarehealthsystemso #1UPMC–46,480employeeso #2HighmarkHealth(includesAlleghenyHealthNetwork)–20,497

Source:PittsburghBusinessJournal,LargestPittsburgh-areaEmployers,July7,2017

MetroAreaHospitalEmployment&Projections

MetroArea2016HospitalEmployment

ProjectedNewHospitalJobs2014-24

PittsburghMSA 59,292 N/ASource:PennsylvaniaCenterforWorkforceInformationandAnalysis,http://www.workstats.dli.pa.gov/Pages/default.aspxDemographicsofHospitalServiceWorkersValuesinPercentages

Pittsburgh,PARace/Ethnicity Men Women AllEmployees

ALLEMPLOYEES 26.8 73.2 100ASIANAMERICAN 0.96 1.03 1.99BLACK 6.83 15.53 22.36HISPANIC 0.31 0.61 0.92TOTALNONWHITE 8.61 18.59 27.2WHITE 18.19 54.61 72.8

Source:EEO-1data,https://www1.eeoc.gov/eeoc/statistics/employment/jobpat-eeo1/

HospitalMarketProfits–aggregatedMedicarecostreportdataforacutecare&children’shospitals

Pittsburgh Profits HospitalsFY2015 $446,605,310 29

Source:CenterforMedicareandMedicaidServices,HealthCareCostReportInformationSystem(HCRIS)

Page 15: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 15

Endnotes

1Productivitygainshaveplateauedinrecentyears.SeeMitchellHartman,“WhatKilledU.S.Productivity?,”Marketplace,January10,2017,accessedAugust16,2017,https://www.marketplace.org/2017/01/10/world/what-killed-us-productivity.Buttotalproductivitycontinuesinchingup—1.2%fromthesecondquarterof2016tothesecondquarterof2017,duetoacombinationofincreasesinoutput(2.7%)andhoursworked(1.5%).“SecondQuarter2017ProductivityandCostsReport,”BureauofLaborStatistics,accessedAugust16,2017,https://www.bls.gov/news.release/prod2.nr0.htm.2Thenationalunemploymentratehasdippedto4.3%,whichisthelowestrateinadecade.“LaborForceStatisticsfromtheCurrentPopulationSurvey,”BureauofLaborStatistics,accessedAugust16,2017,https://data.bls.gov/timeseries/LNS14000000.Butworkersacrossthecountrystillfeelacuteeconomicanxiety,whichhasanumberofdrivers.See,e.g.,KeithPayne,TheBrokenLadder:HowInequalityAffectstheWayWeThink,Live,andDie(NewYork:Viking,2017)(inequality);Bivens,Josh,and&LawrenceMishel,“UnderstandingtheHistoryDivergenceBetweenProductivityandaTypicalWorker’sPay:WhyItMattersandWhyIt’sReal,”EconomicPolicyInstitute,September2,2015,http://www.epi.org/publication/understanding-the-historic-divergence-between-productivity-and-a-typical-workers-pay-why-it-matters-and-why-its-real/;GinaKolata,DeathRatesRisingforMiddle-AgedWhiteAmericans,StudyFinds,https://www.nytimes.com/2015/11/03/health/death-rates-rising-for-middle-aged-white-americans-study-finds.html?_r=0(lifeexpectancy).3See,e.g.,BenCasselman,“AmericansDon’tMissManufacturing—TheyMissUnions,”FiveThirtyEight(2016),https://fivethirtyeight.com/features/americans-dont-miss-manufacturing-they-miss-unions/.4Seeibid.5“EmploymentProjections:2014-24Summary,”accessedAugust17,2017,https://www.bls.gov/news.release/ecopro.nr0.htm.6Hospitalsareoftenreferredtoashealthsystemstodescribethebreadthofinpatientandoutpatientservicestheyprovide.7AmericanHospitalAssociation(AHA),“HospitalsareEconomicAnchorsintheirCommunities,”accessedAugust17,2017,http://www.aha.org/content/17/17econcontribution.pdf.AccordingtheAHA,“…theimportanceofhospitalstotheircommunitiesextendsfarbeyondhealthcare,”toutingthemillionsofworkershospitalsemploybothdirectlyandindirectlythroughtheireconomicactivity.Ibid.8AggregateddatafromtheOccupationalEmploymentStatistics,BureauofLaborStatistics,fortheelevenIndustrialMidweststates,https://www.bls.gov/oes/.9CurrentEmploymentStatistics1980-2016,https://www.bls.gov/ces/.10“EmploymentbyMajorIndustrySector,”BureauofLaborStatistics,accessedAugust17,2017,https://www.bls.gov/emp/ep_table_201.htm.11AggregateddatafromtheQuarterlyCensusofEmploymentandWages,BLS,fortheelevenIndustrialMidweststates,https://www.bls.gov/cew/.12Ibid.13BureauofLaborStatistics,“ProjectionsofIndustryEmployment,2014–24,”accessedAugust17,2017,https://www.bls.gov/careeroutlook/2015/article/projections-industry.htm.14See“IllinoisEmploymentProjections,”IllinoisDepartmentofEmploymentSecurity,accessedAugust17,2017,http://www.ides.illinois.gov/LMI/Pages/Employment_Projections.aspx;“IndianaIndustryProjections,”HoosiersbytheNumbers,”accessedAugust17,2017,http://www.hoosierdata.in.gov/dpage.asp?id=57&page_path=Industry%20Data&path_id=7&menu_level=smenu1&panel_number=2;“IowaIndustryProjections,”IowaWorkforceDevelopment,accessedAugust17,2017,https://www.iowaworkforcedevelopment.gov/industry-projections;“MichiganDataSearch,”MichiganDepartmentofTechnology,ManagementandBudget,accessedAugust17,2017,http://milmi.org/datasearch/projections-excel);“MinnesotaEmploymentOutlook,”MinnesotaEmploymentandEconomicDevelopment,accessedAugust17,2017,https://apps.deed.state.mn.us/lmi/projections/EmploymentOutlook.aspx;“MissouriIndustryEmploymentProjections,”MissouriEconomicResearchandInformationCenter,accessedAugust17,2017,https://www.missourieconomy.org/industry/indprj/?naics=611300&prj=lt;“OhioEmploymentProjections,”OhioDepartmentofJobandFamilyServices,accessedAugust17,2017,http://ohiolmi.com/proj/projections.htm;“PennsylvaniaIndustryEmployment2014-2024Long-TermProjections,”PennsylvaniaCenterforWorkforceInformationandAnalysis,accessedAugust17,2017,http://www.workstats.dli.pa.gov/Documents/Projections/Industrial/PA/PA_LTIP.pdf;“WestVirginiaIndustryProjections,”WorkforceWestVirginia,accessedAugust17,2017,http://lmi.workforcewv.org/LTprojections/LTIndustryProjections.html;and“WisconsinLongTermIndustryEmploymentProjections,2014-2024,”Wisconsin’sWorknet,accessedAugust17,2017,http://worknet.wisconsin.gov/worknet_info/downloads/INDPRJ/lt_ind_2014.xlsx.Kentuckydoesnotprovidestateprojectiondata.15Ibid.

Page 16: A Prescription for Good Jobs in the Industrial Midwest: … | A PRESCRIPTION FOR GOOD JOBS IN THE INDUSTRIAL MIDWEST | AUGUST 2017 1 A Prescription for Good Jobs in the Industrial

NELP|APRESCRIPTIONFORGOODJOBSINTHEINDUSTRIALMIDWEST|AUGUST2017 16

16Author’sAnalysisofCurrentPopulationSurveyMergedOutgoingRotationGroup2014-2016.17“HospitalsAreEconomicAnchorsinTheirCommunities,”AmericanHospitalAssociation,accessedAugust17,2017,http://www.aha.org/content/17/17econcontribution.pdf;“HospitalsasEmployers,”AmericanHospitalAssociation,accessedAugust17,2017,http://www.aha.org/content/11/110909-employer.pdf.18“NationalHealthExpenditureProjections2016-2025,”CentersforMedicareandMedicaidServices,accessedAugust17,2017,https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/Downloads/proj2016.pdf.19“CutsThreatenHospitals’AbilitytoCureandCare,”AmericanHospitalAssociation,accessedAugust17,2017,http://www.aha.org/content/11/110909-employer.pdf.20Harkavy,IraandHarmonZuckerman,“EdsandMeds:CitiesHiddenAssets,”accessedAugust17,2017,http://staging.community-wealth.org/sites/clone.community-wealth.org/files/downloads/report-harkavy.pdf21Author’sAnalysisofCurrentPopulationSurveyMergedOutgoingRotationGroup2014-2016.Seealso“OurNationsWorkersNeedaFederalMinimumWageTheyCanRelyOn,”NationalEmploymentLawProject,accessedAugust17,2017,http://www.nelp.org/news-releases/our-nations-workers-need-a-federal-minimum-wage-they-can-live-on/.22Ibid.Forworkersinthethreebroadoccupationalcategoriesthatcapturehospitalservicework—healthcaresupport,foodpreparationandservice,andbuildingandgroundscleaning—theshareearninglessthan$15is71%intheIndustrialMidwest.23AllprivatehospitalsfileanEEO-1surveyannuallywiththeU.S.EqualEmploymentOpportunityCommission(EEOC)whichrequirescompanyemploymentdatatobecategorizedbyrace/ethnicity,genderandjobcategory.“JobPatternsForMinoritiesAndWomenInPrivateIndustry:AGlossary,”EEOC,accessedAugust17,2017,https://www.eeoc.gov/eeoc/statistics/employment/jobpat-eeo1/glossary.cfm.Althoughthedataareconfidential,theEEOCdoesmakecertaindataavailableinanaggregatedformatformajorgeographicareasandbyindustrygroup.24Huizar,LauraandTsedeyeGebreselassie,“Whata$15MinimumWageMeansforWomenandWorkersofColor,”accessedAugust17,2017,http://www.nelp.org/content/uploads/Policy-Brief-15-Minimum-Wage-Women-Workers-of-Color.pdf.25Author’sanalysisofrelevantcollectivebargainingagreements.26Dube,Arindrajit,EthanKaplan,andOwenThompson,“NurseUnionsandPatientOutcomes,”accessedAugust17,2017,http://econweb.umd.edu/~kaplan/NurseUnions.pdfp.817.27Ibid.at816.28Ibid.at827.©2017NationalEmploymentLawProject.ThisreportiscoveredbytheCreativeCommons“Attribution-NonCommercial-NoDerivs”licensefee(seehttp://creativecommons.org/licenses).Forfurtherinquiries,pleasecontactNELP([email protected]).