5c - Regional Labor Study ReportOFFICE OF
COMMUNITY PARTNERSHIPS
Assessing the Local Economy and Patterns of Job Postings
CITY OF FEDERAL WAY
This report focuses on a set of labor analyses based on data provided by EMSI. This is followed by
selected analytics related to job postings during the calendar years 2020 and 2021. Given the impact of
COVID-19 on the economy, this report provides an analysis of the economy of Federal Way as it has
begun to recover from the global pandemic.
Section I: Economic Landscape
Using data from the last five years, population growth is outpacing job growth, with the expectation that
this pattern will continue over the next five years (Figure 1). This is not unusual, since this pattern can be
observed in other smaller cities in a metropolitan area.
The highest levels of job growth (2016-2021) have occurred in government, healthcare and social
assistance, retail, construction, and Professional/technical/scientific (Figure 2). The first three exceed
the national average for the number of jobs in cities of comparable size. Percentagewise, information,
Professional/technical/scientific, and retail have witnessed the largest growth (Figure 3). As information
related jobs have grown from 2016 to 2021, Federal Way has approached the national average in this
sector (again for cities of comparable size). That is not the case for professional, technical, and scientific
jobs. By the size of their employment, government, healthcare and social assistance, and retail are the
top sectors, and all three witnessed growth between 2016 and 2021 (Figure 4). Given the size and
growth of healthcare and social assistance, this sector, along with information technology, could
become the major economic characteristic of Federal Way, followed by retail. It is important to pay
attention to the declining employment opportunities in lower paying service jobs, such as
accommodation and food services.
The location quotient, which provides a quick assessment of the level of concentration, identifies the
same three large employment sectors (government, healthcare and social assistance, and retail) as
highly concentrated for a city the size of Federal Way (Figure 5). Analyzing jobs from the perspective of
wages provides an additional glimpse into the emerging economy of the city (Figure 6). Except for
Healthcare Support, all jobs paying less than $20 per hour (on average) declined between 2016 and
2021 (Figure 6). Higher income category jobs, on the other hand, have grown. This paints a picture of
declining service jobs and growth of more employment opportunities in higher paying professional
categories. Many of the high paying jobs, however, are small in their employment size, except for
healthcare and social assistance jobs (Figures 6). It is noteworthy that government and retail sectors are
the largest contributors to the gross regional economy (Figure 7), even though retail is not necessarily
high -income generating sector. The two sectors are followed by the information sector, which also
provides the largest income for its employees (Figure 8). This might be an economic development
opportunity for Federal Way to explore further (Figure 9). That said, should retail employment
Report provided by
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opportunities decline further, Federal Way may have to consider its land use and alternative
employment potentials for its residents. At this point, retail seems to continue to grow, albeit that the
rate of growth remains low.
120,000
100,000
80,000
60,000
40,000
20,000
0
2016
Federal Way
Population and Job Trends
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
-P.PuI.ttoo -Jabs
Figure 1: Population and Job Trends
2016/2021 Federal Way Job Growth
with National Average
3,000
7,000
6,000
0 5,000
4,000
0 3,000 _
2,000 _
1,000
o_ _
A
11
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02016 Jobs 02021 Jobs —National Average in 2021 Jobs Do,.
Figure 2: Job Growth with National Average
2016/2021 Federal Way Industry Growth/Decline
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Pror..s i... 1, Sri.M M, hnd T.A.k.l Services
R.Ioil Trod.
Ed— i...I S—i...
R.— and 1—r—
Agri.W.. L Foreelry
C.nrfrodion
Heollh Core and 5-1.1 AssW.—
Ae°I Esfole, R—W and leasing
W°sle M—gem.nt.nd Rem.di° ion
Gwe�nmeM �
Trap p.ftfi.n and Warehousing
Management
Wh.1-1. Trod.
Other S—i—
Wififi..
Ma..Nd°Hng
A— ..dolion and Fo.d Service
Az Enl.rl.inm.nl, and R—..alion
15% 15%
%Cla n.e In Jehs
2
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UW Tacoma Office of Community Partnerships' Center for Applied Urban Research (CAUR)
Figure 3: Industry Growth/Decline
2016/2021 Federal Way Change In Jobs
B4O00
7,000
6,000
„ 5,000
0
a 4,000
s
3,000
2,000 • •
1,000
0 —
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60%
50%
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■ 2016 Jobs ■ 2021 Jobs • % Growth in Jobs •% Decline In Jobs Data wares: Efn5101 2022 Drlo 5e1
Figure 4: Change in Jobs
2021 Federal Way Location Quotient
8,000 1.60
7,000 O 1.40
6,000 Al
O
5,000 O • 1.00 a,
2 • e
U 4,000 0.80
•
d
e 3,000 • • •
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•
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—2021 lobs • Above 10 • B0ow10 —National LO Dolo ..:EM$1012022D-5er
Figure 5: Location Quotient
3
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2021 Federal Way Median Hourly Wage
with Job Growth
$70.00 30%
„ $6o.ov •
soi
3 •
a Sso.00 O •
10°0
•
o Sno.00
E3o.00
$2o.ov
$10.00 I I I Izo°i�
50.00
�4P
a
3a °0e+` a•� `p e` tee'° ®r e �•Ox` �-e
°a o A°
oQ° G° p ae °� `yF ° �• °b 1?c Q i'``°` ¢ae Pap � F
e�
$050,000
$300,000
d $130,000
=$zoo,000
0150,000
• 2021 -dI- H—Iy E—wg, SIA Increase —6 0edi°°
Figure 6: Median Hourly Wage with Job Growth
2021 Federal Way Earnings Per Worker
with Gross Regional Product
O
O
a` $100,000 •
sso.00a
so
�
4
c ,t ; `»°''e4`°�F c4° O a b `P 64\PF 3�°a6�°e V°e, �O G°,°' P� oat �{•e ° a
p
p ti
$1,600,000,00a
E1,400,000,000
$1,200,000,000 3
$1,000,000,000 d
$aoo,000,000
$aoo,oav,ova
$400,o00,000 l2
E2oo,000,000
$o
• 2021 Earnings Per W-k., • 2021 GRP .---.. finsi o1 Boas oaa s.1
Figure 7: Earnings Per Worker with GRP
4
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UW Tacoma Office of Community Partnerships' Center for Applied Urban Research (CAUR)
2016/2021 Federal Way Annual Earnings
with Job Growth
$350,000
$300,000
$250,000
o $200,000
$150,000
$100,000 �
$3
Ox
Bra` 0a` ° ° Cay°4• 05` a o ° a �°
P a F
`lam
30°
60%
50
40% �
30%—
m
20% m
V
10% 3
0%
(20%1
e
y �
e"
09
a`
02021 Earnings Per Worker •Job G th 01.6 D-Ii— om ---Q1 2.12--
Figure 8: Annual Earnings with Job Growth
2021 Federal Way Top Growing Industries
$350,000
60 %
$300,000
50%
$250,000
E
40
$200,000
0
30
`o $150,000
a
20
�
$1 aa,000
$50,000
;
�
10%
, �
$014141
0%
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• 2021 Earnings Per Worker •%Chong. In lobs
Om°wurcr. EM510120220d° Sw
Figure 9: Top Growing Industries
Section II: Job Postings
Jobs posting analytics allow us to explore the overall changes in the labor market. While job postings are
typically a good indicator of labor demands, the last two years (as we have gone through the ups and
downs of the pandemic and its impact on the economy) can be highly illustrative of the continuing labor
needs of Federal Way and some of the unusual changes/shifts it might have faced.
To perform this analysis, we examined all the job postings for the city and compared January to
December 2020 (CY (Calendar Year) 2020) period with January to December 2021 (CY 2021). During CY
2020, there were a total of 40,086 postings, with 11,315 being unique (translating to posting intensity of
4:1). During CY 2021, there were a total of 59,959 postings, with 14,945 being unique (translating once
again to posting intensity of 4:1). Clearly, the job market expanded from 2020 to 2021, fitting the growth
5
Report provided by
UW Tacoma Office of Community Partnerships' Center for Applied Urban Research (CAUR)
patterns that started in 2018 (Figure 10). While many jobs posted in 2020 offered annual incomes below
$35K, a sizable number offered $60K or higher (Figure 11). This pattern, with a slight shift to higher
incomes, was repeated in 2021. This is another indication that Federal Way has a bifurcated economy of
emerging professional and high paying jobs, along with sizable services and retail jobs that offer lower
incomes. Combining the two, posted jobs in Federal Way have maintained an hourly average wage of
about $20 (or an annual income of about $40K) (Figure 12). Surprisingly, more than 40% of jobs in 2020
and 2021 did not require any education, with some asking for high school education (Figure 13). About
60% also did not mention or require any job experience (Figure 14). This might suggest that the majority
of posted jobs were targeting low -skilled and/or entry level workers. In both years, Amazon was the
major source of employment (Figure 15). However, it is not surprising that the healthcare sector was the
second largest recruiter in the city. After all, this is a growth sector for Federal Way, further accentuating
the current economic landscape, as well as wage earning potentials. This pattern emerges also in the
top-20 posted occupations in both years (Figure 16). Registered nurses and retail salespersons were in
high demand in the city. That is the bifurcated employment and economic landscape mentioned earlier.
The top recruiting industries also show the same two sectors (Figure 17). Nursing and warehousing were
listed among the top desired skills (Figure 18), as well.
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IP11MU19111
Figure 10: Unique Job Postings
Advertised Salaries, Jan -Dec 2020
$60,000.00 or higher
$56,000.00-$ 59,999.00
$52,000.00-$ 55,999.00
$48,000.00-$ 51,999.00
$44,000.00-$47,999.00
$40,000.00-$43,99940
$36,000.00-$39,999.00
$32,00O. DD-$35,999.00
$28,000. DD-$31,999.00
$24,000. DD-$27,999.00
$20,000.M$23,999.00
$16,000. DD-$19,999.00
Advertised Salarie, Jan -Dec 2021
$70,000.00-$5D0,000.0D
$65,000.00-$69,999.00
$60,000.00-$64,999.00
$55,000.00-$59,999.00
$50,000.00-$54,999.01)
$45,000.00-$49,999.00
$40,000.00-$44,999.00
$35,000.00-$39,999.00
$30,000.00-$34,999.00
$25,000.00-$29,999.00
$20,000.00-$24,999.00
$15,000.00-$19,999.00
0 200 400 6D0 800 1000 1200 0 200 40n 600 86D loon 1200
6
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Figure 11: Advertised Salaries
Advertised Wage Trend, Jan -Dec 2020 Advertised Wage Trends, Jan -Dec 2021
$25.00 $25m
$20.00 $20m
$15.00 $15d10
S1oAo $10A0
$5.00 $5.00
$0.00 $0.00
Jan Feb Mar Apr May Jun Jul Aug Sep 0Ct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Op Nov DEC-21
2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2022 2021 2021 2021 2022 2021 2021
Figure 12: Advertised Wage Trends
Education Requirement, Jan -Dec 2020
M.ter's&gree Ph.D. or
Bachelor's degree
12%
High school or
26%
Educatiuon Requirement, Jan -Dec 2021
Education
Listed
48%
GED
29%
Figure 13: Education Requirement
pion
J
7
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Minimum Experience Requirement, Jan -Dec 2020
2-3
1,
0-1
2'
Minimum Experience Requirement, Jan -Dec 2021
7 -9 years
Experience
Listed
soy
Jo Experience 0 1
Listed 1
59%
Figure 14: Minimum Experience Requirements
Companies with 50 or more Unique Postings,
Jan -Dec 2020
Signawre Healthcare
Sunbelt Staffing
Avalon Health Care
Accountable Healthcare Staffing
Homestreet Bank
Tell Corporation
5p111Health
FedEx
Federal Way School District
Kroger
Virginia Mason Medical Center
The Home Depot
Life Care
nrookdale Senior Living
D. ita
Robert Halt
Highline Medical Center
Lowe's
Com Spirit He alth
Ammon
Companies with 50 or more Unique Postings,
Jan-Dec2022
Securitas
Signature Healthcare
Sea Mar Community Health Centers
Sorbucks
Gmystar
GPAC
The Home Depot
Revature
St. Franck Hospital
Aerotek
Ki It Corporation
Sysco
MultiCere
Walmart
Federal Way School District
Kroger
Tell Corporation
Vl rgll i
CHI St, Joseph's Health
Brookdale Senior Living
Allred Hnrversal
Robert Half
Lawe's
Aya Healthcare
CommonSpirit Health
federal Way Public Schools
Life Care
Dayha
Amazon
0 too 200 300 400 Soo No 0 200 400 600 Boo 1,000 1,200 1,40C
Figure 15: Companies with 50+ Unique Postings
8
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Tap Occupations, Jan -Dec 2020
Top Occupations, Jan -Dec 2021
Personal service Managers, All Other,...
Speech -Language Pathologists
Nursing Assistants
Bookkeeping, Accounting, and Auditing...
Fast Food and Counter Workers
Medical and Health Services Managers
Real Estate Sales Agents
Maintenance and Repair Workers, General
Medical Assistants
Accountants and Auditors
Secretaries and Administrative Assistant$,..
Merchandise Displayers and Window...
Heavy and Traclor-Trailer Truck Drivers
Home Health and Personal Care Aides
Licensed Practical and Licensed Vocational...
Sales Representatives, Wholesale and...
Medical Dosimetrists, Medical Records...
Customer Service Representatives
First -Line Supervisors of Retail Sales Workers
Stockers and Order Fillers
Laborers and Freight, Stock, and Material...
Retail Salespersons
Registered Nurses
Nursing Assistants
Real Estate Sales Agents
Speech -Language Pathologists
Merchandise Displayers and Window...
Security Guards
Medical Assistants
Home Health and Personal Care Aides
Secretaries and Administrative Assistants,...
Maintenance and Repair Workers, General
Sales Representatives, Wholesale and...
Medical and Health Services Managers
Fast Food and Counter Workers
Licensed Practical and Licensed Vocational...
Heavy and Tractor Trailer Truck Drivers
Medical Oosimetrishs, Medical Records...
Customer Service Representatives
First -Line Supervisors of Retail Sales...
Stockers and Order Fillers
Retail Salespersons
Laborers and Freight, Stock, and Material...
Registered No-
0 200 400 600 800 1,000 1,200 1AW
Figure 16: Top Occupations
Top Industries, Jan — Dec 2020
Public Administration
Wholesale Trade
Information
Educational services
Construction
Other Services (except Public
Admmistratic n)
Manufacturing
Transportation and Warehousing
Real Estate and Rental and Leasing
Accommodation and Food services
Flnanre and Insurance
Professional, Scientific, and Technical
Services
Health Care and Social Assistance
Retail Trade
Administrative and support and Waste
Management and Remediation Services
0 200 400 600 800 1,000 1,200
Top Industries, Jan -Dec 2021
Wholesale Trade
Arts, Entertainment, and Recreation
Information
Other Services lexcept Public
Administration)
Transportation and Warehousing
Construction
Real Estate and Rental and Leasing
Educational Services
Manufacturing
Finance and Insurance
Accommodation and Food Services
Professional, Scientific, and Technical
Services
Administrative and Support and Waste
Management and Remedlation Services
Health Care and Social Assistance
Retail Trade
0 500 1'" 1,500 2,000 2,500
Figure 17: Top Industries
0 SOu 1,000 1,500 2,u00 2,500 3,00u
9
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Top Specialized Skills, Jan -Dec 2020
Top Specialized Skills, Jan -Dec 2021
R,,G.... t Gp ,,tion
Product Knowledge
Nursing Care
Intercultural Competence
Grcedng Cuslgmers
Patlent Educ.den And Coumeling
Medical Records
oars entry
61111ne
Housekeeping
C.At ,Relationship Management
He me Health [are
Auditing
Marketing
Accounting
CardiaP.lmonary Resuxdatlan (CPR)
SMkg7echnlques
Warehousing
Basle Life Support
Merchandising
Nursing
0 2W 4W 60o SW 1,0W 1,2W 1,40D
Construction
Medical Recard5
Ad—d Cardiovascular life Support (ACTS}
Imcicing
Nursing Care
1—tory Management
Cash Reglster
Cash Handling
Data Entry
Bgling
Restaurant Operation
Custemer R.I.i.nshlp Management
A--ting
5d1mg Techniques
Auditing
Marketing
Cardiopulmonary Res. sedation (CPR}
Basic Life Support
Merchandising
Nursing
warehousing
Figure 18: Top Specialized Skills
Conclusion
0 2W 4W 6W SW 1,X01,2W1,4W1,5WE,WD
It is clear from the existing data that the City of Federal Way is building a more robust economy based
on healthcare and social assistance, while maintaining its retail sector, even though the growth in the
latter is relatively low. At the same time, information and professional/technical sectors are rapidly
growing, albeit that they are still small in size. This presents the city with a unique opportunity to build a
unique urban experience that focuses on live, work, and play principals that grow a balance of
professional and service jobs, offering urban amenities and shopping/entertainment, and reducing the
level of commuting. Federal Way has an enviable geography that benefits from proximity to Seattle,
Bellevue, and Renton economic agglomeration, complementing their tech sector through small and
medium companies. Federal Way could easily become the entrepreneurial and business incubation zone
for a professional population that could produce higher expendable income for supporting its retail,
entertainment, and the arts sectors. Federal Way is also close to the Port of Tacoma and Sea-Tac, which
gives it national and international connectivity. The city is also blessed with a diverse population that is a
point of attraction for the younger professional population and many small and mid -size, particularly,
tech companies. These are opportunities that need to be tapped to build an even stronger and more
diverse economy, turning Federal Way into a major employment center and a regional destination.
10
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