Why to Use the Occupation Cluster Data
Occupation cluster analysis is a relatively new approach in regional development that focuses on the knowledge, skills and abilities of the individuals who work in certain jobs.
Working with occupational data can quickly become overwhelming, so to simplify analysis and aid in understanding, the tool focuses on 15 knowledge-based occupation clusters. This provides fast insights into the talent base that drives a local or regional economy. With this tool, economic development professionals can begin to structure effective collaborations with businesses managers, educators, and workforce development professionals.
Example 1: Identify the Fastest Growing Occupations in a Region
The table below looks at a region in Indiana and identifies those occupations with the strongest percentage change and the largest increase in the number of jobs from 2001 to 2007. Agents and business managers of artists, performers, and athletes had the largest percentage change, but that occupational segment is relatively small. Photographers represent the largest growth category in absolute terms, with 99 new jobs added in that occupational category.
This type of analysis is useful in a number of different ways. By understanding the dynamics of growth within an occupation cluster, an economic development professional can communicate more effectively with educators and workforce development professionals to build a talent pipeline needed to support businesses within the region.
| Fast Growing Occupations in the Arts, Entertainment, Publishing and Broadcasting Cluster in Indiana Economic Growth Region 11 | ||||||||
| Arts, Entertainment, Publishing and Broadcasting Cluster Fastest Growing Occupations | 2001 Cluster Jobs | 2007 Cluster Jobs | Change, 2001-2007 |
Percent Change, 2001-2007 |
||||
| Total Arts and Entertainment Cluster | 3,095 | 3,348 | 253 | 8.2% | ||||
| Agents & business managers of artists, performers, and athletes | 19 | 25 | 6 | 31.6% | ||||
| Writers and authors | 272 | 346 | 74 | 27.2% | ||||
| Multi-media artists and animators | 76 | 95 | 19 | 25.0% | ||||
| Set and exhibit designers | 28 | 35 | 7 | 25.0% | ||||
| Choreographers | 12 | 15 | 3 | 25.0% | ||||
| Radio operators | 4 | 5 | 1 | 25.0% | ||||
| Fine artists, including painters, sculptors, and illustrators | 71 | 88 | 17 | 23.9% | ||||
| Fashion designers | 28 | 34 | 6 | 21.4% | ||||
| Interior designers | 51 | 61 | 10 | 19.6% | ||||
| Music directors and composers | 137 | 163 | 26 | 19.0% | ||||
| Art directors | 84 | 99 | 15 | 17.9% | ||||
| Jewelers and precious stone and metal workers | 28 | 33 | 5 | 17.9% | ||||
| Photographers | 606 | 705 | 99 | 16.3% | ||||
| Musicians and singers | 225 | 249 | 24 | 10.7% | ||||
| Camera operators, television, video, and motion picture | 10 | 11 | 1 | 10.0% | ||||
| Interpreters and translators | 95 | 104 | 9 | 9.5% | ||||
| Camera and photographic equipment repairers | 11 | 12 | 1 | 9.1% | ||||
| Graphic designers | 274 | 295 | 21 | 7.7% | ||||
| Editors | 118 | 127 | 9 | 7.6% | ||||
| Desktop publishers | 73 | 78 | 5 | 6.8% | ||||
| Musical instrument repairers and tuners | 15 | 16 | 1 | 6.7% | ||||
Example 2: Identifying “Clusters of Opportunity”
Occupation cluster analysis can help identify which clusters of occupations provide the best opportunities for investment and which occupation clusters show a competitive skills advantage in the region.
The table below shows employment growth by cluster, the 2007 location quotient for the cluster and the percent change in the location quotient between 2001 and 2007 in Indiana Economic Growth Region 11. Twelve occupation clusters showed an increase in employment. Only the skilled production workers cluster had a location quotient higher than 1.2, indicating a concentration of such workers within the region compared to the United States overall.
However, the health care and medical science cluster not only had the highest rate of growth in employment, but had a location quotient of 1.04—an increase of just over 6 percent since 2001. This occupation cluster merits a closer look by policymakers and economic development professionals, and should likely be compared with the regional industry clusters to discern needs for expanded training and development of the skills embedded in the clusters.
| Occupation Clusters of Opportunity in EGR 11 | ||||||||
| Occupation Cluster | Employment Growth, 2001-2007 | 2007 LQ | Change in LQ | |||||
| Health Care and Medical Science | 14.6% | 1.04 | 6.1% | |||||
| Building, Landscape, and Construction Design | 10.9% | 0.72 | 7.5% | |||||
| Arts, Entertainment, Publishing, and Broadcasting | 8.2% | 0.63 | 3.3% | |||||
| Public Safety and Domestic Security | 6.4% | 0.69 | 3.0% | |||||
| Postsecondary Education and Knowledge Creation | 6.3% | 0.64 | -3.0% | |||||
| Natural Sciences and Environmental Management | 5.0% | 0.78 | 1.3% | |||||
| Skilled Production Workers: Technicians, Operators, Trades, Installers, and Repairers | 4.6% | 1.38 | 1.5% | |||||
| Primary/Secondary and Vocational Education, Remediation, and Social Services | 4.0% | 0.84 | 0.0% | |||||
| Managerial, Sales, Marketing, and HR | 3.4% | 0.72 | -1.4% | |||||
| Legal and Financial Services, and Real Estate | 2.0% | 0.78 | -6.0% | |||||
| Information Technology | 1.4% | 0.48 | 2.1% | |||||
| Personal Services | 0.2% | 0.84 | -8.7% | |||||
This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work was conducted by the Purdue Center for Regional Development, the Indiana Business Research Center at Indiana University's Kelley School of Business, and other research partners.
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