Greater Omaha Economic Development Partnership

greater omaha WorKforce

Access to an educated, skilled and motivated workforce is one of Greater Omaha’s key assets because it draws business to the area and spurs economic growth. Every year, there are more than 9,000 new graduates from area high schools and 10,000 from area colleges and universities. These individuals stay in Greater Omaha because opportunities are plentiful – both professionally and personally – and the area offers a superior quality of life.


Learn more about Omaha Workforce Employment Data, Labor Availability, Labor Quality and Labor Costs - Wages, Benefits, Worker's Compensation, Unemployment Insurance.

Employment

Greater Omaha’s economy benefits from solid population and labor force growth with a relatively diverse industry mix. The service sector provides a stable employment base accounting for 87.3 percent of total employment. This fact simply validates the city’s reputation as a service and trade center for the region.

The table below shows Greater Omaha’s employment distribution by industry compared to the United States in total. Greater Omaha has a higher concentration of employment compared to the rest of the nation in financial activities, (8.5 percent vs. 5.9 percent); trade, transportation and utilities (21.3 percent vs. 19.2 percent); and information (2.6 percent vs. 2.2 percent). On the other hand, Omaha holds a smaller share of employment in the manufacturing (7.2 percent vs. 9.8 percent) and government (13.3 percent vs. 16.4 percent) sectors.

Employment Distribution by Industry - 2008

Greater Omaha

United States

Total Non-Farm Employment

468,400

100.0%

137,066,000

100.0%

Total Private Employment

406,300

86.7%

114,566,000

83.6%

Construction/Mining

25,700

5.5%

7,989,000

5.8%

Manufacturing

33,800

7.2%

13,431,000

9.8%

Trade, Trans., and Utilities

99,800

21.3%

26,385,000

19.2%

Information

12,200

2.6%

2,997,000

2.2%

Financial Activities

39,800

8.5%

8,146,000

5.9%

Prof. and Business Services

26,500

5.7%

17,778,000

13.0%

Educ. and Health Services

67,000

14.3%

18,855,000

13.8%

Leisure and Hospitality

45,700

9.8%

13,459,000

9.8%

Other Services

16,700

3.6%

5,528,000

4.0%

Government

62,100

13.3%

22,500,000

16.4%

Source: U.S. Bureau of Labor Statistics


During 2008, more than 5,600 jobs were added in the Greater Omaha market – a 1.2 percent increase over 2007. The private sector accounted for approximately 4,500 jobs during this period. Both the goods-producing sector and service sector increased by 1.1 percent and the manufacturing sector grew by 5.9 percent. Private sector growth was led by Education and Healthcare Services (+3.5 percent), Financial Activities (+1.7 percent), Professional Business Services (+1.5 percent), and Leisure and Hospitality (+0.8 percent).


Workforce Availability

The eight-county region that makes up Greater Omaha has a labor force totaling more than 456,000, of which approximately 440,000 are employed. Since 1990, the area has added more than 84,000 people to its labor force.

The highway transportation network in the metro area provides a natural means for extending Greater Omaha's labor shed area. Labor is typically pulled in from a 50- to 60 mile radius. For the counties that fall within a 50-mile radius of central Omaha (about a 30- to 45-minute drive), the labor force totals more than 664,000.

Unemployment

The 2008 annual unemployment rate for Greater Omaha was 3.7 percent. This means that approximately 16,700 persons were actively looking for work. The average annual employment and unemployment rates for the past several years are listed below. Note that Omaha’s unemployment rate has remained historically low while employment and the labor force have risen substantially during the same time period.

Greater Omaha Labor Force/Work Force Trends

2004

2005

2006

2007

2008

Labor Force Total

439,128

441,368

443,149

449,256

456,493

Total Employed Workers

420,040

422,221

427,915

434,214

439,796

Unemployment

19,088

19,147

15,234

15,042

16,697

Unemployment Rate

4.3%

4.3%

3.4%

3.3%

3.7%

Employment by Place of Work (jobs)

444,500

451,200

458,600

464,600

468,400

Source: Bureau of Labor Statistics


New Entrants

Labor availability is also enhanced by enrollment at area colleges and universities. There are approximately 130,000 students from the 21 colleges and universities located within a 50-mile radius of Greater Omaha. Of these, 16 are located within the Greater Omaha Metropolitan Statistical Area and have a combined enrollment of approximately 59,000. The remaining six schools outside the metro area have a combined enrollment of nearly 40,000.

The following chart shows a breakdown of higher education enrollment:

Greater Omaha Higher Education Enrollment

Institution

Enrollment*

Location

Bellevue University

7,800

Bellevue

Clarkson College

900

Omaha

College of Saint Mary

900

Omaha

Creighton University

7,000

Omaha

Dana College

600

Blair

Grace University

400

Omaha

Iowa Western Community College

5,300

Co Bluffs

ITT Technical Institute

500

Omaha

Kaplan University - Omaha/Bluffs Campus

600

Omaha

Metropolitan Community College

14,804

Omaha

Midland Lutheran College

800

Fremont

NE Methodist College of Nursing & Allied Health

600

Omaha

University of Nebraska at Omaha

14,200

Omaha

University of Nebraska Medical Center

3,100

Omaha

University of Phoenix

1,200

Omaha

Vatterott College

500

Omaha

Total

59,204

Sources: National Center for Education Statistics (NCES), 2007-2008
*Enrollment includes students seeking a certificate/degree as reported by NCES

Metropolitan Community College states that 2006-07 enrollment was 43,310 students: 30,217 credit students and 13,093 noncredit students.
Source: http://www.mccneb.edu/businessandcommunity/metrofacts.asp



These educational institutions as well as area high schools provide employers a plentiful supply of qualified workers. Each year, approximately 10,000 students graduate from area colleges and more than 9,000 from area high schools, many of whom enter the Greater Omaha workforce. For example, approximately 80 percent of graduates from the University of Nebraska Peter Kiewit Institute of Information Science, Technology and Engineering, and 70 percent of Creighton University business graduates stay in the area.

In addition, more than 35 percent of the Greater Omaha population is under age 25. This suggests there will be a large number of younger workers to fill jobs for years to come.

Underemployment

There are a large number of part-time positions available in Greater Omaha and many individuals hold multiple part-time jobs because full-time work is not available. In 2006, a labor survey by the University of Nebraska Center for Public Affairs Research found that there were an estimated 111,000 underemployed among the employed labor force. The underemployed consist of part-time workers who wanted more hours and workers who indicated they were overqualified for their present jobs because nothing better was available. According to this study, underemployment cuts across all occupations and incomes in Greater Omaha.

Military Separations

The United States Strategic Command (USSTRATCOM) is headquartered at Offutt Air Force Base in Greater Omaha. USSTRATCOM is the command and control center for U.S. strategic forces and military space operations, computer network operations, information operations, strategic warning and intelligence assessments, as well as global strategic planning. Offutt AFB and USSTRATCOM are home to U.S. Space Command, or USSPACECOM.

This local entity represents the foremost technology and information center of the U.S. military. As such, Greater Omaha gains many peripheral benefits including a state-of-the-art communications infrastructure, technology and local expertise in these areas.

Offutt AFB is also the area’s largest employer. There are more than 12,000 military and civilian employees currently working on the base. Historically, about 500 military personnel leave the Air Force each year from Offutt AFB and return to civilian status. There are more than 10,000 military retirees plus more than 20,000 of there dependents living in Greater Omaha. The result is a substantial number of highly skilled and experienced workers who are potentially available to area businesses each year.

Quality of Employees

The quality of available workers in Greater Omaha remains consistently high. Nebraska workers, in general, are well known for their exceptional work ethic and productivity. One commonly used measure of productivity is the value of production per dollar of production worker wages. Data from the Survey of Manufactures from the U.S. Census Bureau shows that Nebraska's workers produce $15.86 for every dollar of production worker wages. This is 8.3 percent higher than the national average of $14.65.

The educational attainment of the workforce also contributes to Greater Omaha’s high level of productivity. The number of desirable candidates continues to grow as area high schools, colleges and universities produce a large pool of workers from a primary and secondary system that has been consistently ranked as one of the best in the United States. According to 2008 estimates, more than 92 percent of adults in Greater Omaha have graduated from high school compared to 85 percent nationally. Greater Omaha also has a higher percentage of adults achieving a bachelor’s degree or higher with 33.3 percent versus 27.8 percent nationally.

Wage rates in Greater Omaha are consistently competitive with other cities nationwide. Competitive wage rates and high productivity ensure the efficiency with which a company can produce products and services.

The following table provides an overview of Greater Omaha’s wage rates by occupational classification. Customized wage comparison reports are available upon request.

Greater Omaha Wages by Occupation

Occupation Categories

Current Employment

Hourly Median Wage

Omaha

U.S.

All Occupations

458,800

$15.01

$15.57

Management occupations

16,930

$38.60

$42.15

Business and financial operations occupations

23,570

$24.94

$27.89

Computer and mathematical occupations

14,910

$32.11

$34.26

Architecture and engineering occupations

5,500

$27.84

$32.09

Life, physical, and social science occupations

3,170

$25.17

$27.51

Community and social services occupations

6,780

$16.24

$18.38

Legal occupations

2,950

$24.13

$34.49

Education, training, and library occupations

25,570

$17.94

$21.26

Arts, design, entertainment, sports, and media occupations

5,320

$16.99

$19.99

Healthcare practitioners and technical occupations

2,610

$24.52

$27.20

Healthcare support occupations

11,990

$12.19

$11.80

Protective service occupations

7,530

$16.25

$16.65

Food preparation and serving related occupations

37,730

$8.04

$8.59

Building and grounds cleaning and maintenance occupations

14,170

$10.04

$10.52

Personal care and service occupations

10,120

$9.14

$9.82

Sales and related occupations

52,730

$11.79

$11.69

Office and administrative support occupations

86,550

$13.68

$14.32

Farming, fishing, and forestry occupations

660

$9.87

$9.34

Construction and extraction occupations

23,690

$17.71

$18.24

Installation, maintenance, and repair occupations

16,090

$18.11

$18.60

Production occupations

27,040

$13.17

$13.99

Transportation and material moving occupations

19,190

$14.16

$13.14

Source: Bureau of Labor Statistics, 2008

Note: A detailed listing of wages by occupation for Greater Omaha - http://www.bls.gov/oes/current/oes_36540.htm



Employee Benefits

The State of Nebraska follows the federal Fair Labor Standards Act and does not require employers to provide:

  • Vacation, holiday, severance or sick pay
  • Meal or rest periods, holidays off or vacations
  • Premium pay for weekend or holiday work
  • Pay raises or fringe benefits
  • A discharge notice, reason for discharge or immediate payment of final wages to terminated employees

However, to remain competitive in attracting and retaining quality employees, Greater Omaha companies normally provide paid vacation, sick time off, holidays and some or all health insurance.

The following chart shows the typical fringe benefits offered by companies in Greater Omaha.

Greater Omaha Benefits Summary

Average Number of Days

Holidays

8.5

1st yr of service

15th yr of service

Vacation

10.2

19.5

Sick Leave

7.3

13.1

Average Monthly Health Insurance Contribution – PPO

Employer

Employee

Single Coverage

$101.00

$661.00

Family Coverage

$335.00

Source: 2008 Human Resource Association of the Midlands



Workers' Compensation

Businesses in Nebraska enjoy an average workers’ compensation manual rate of $3.58 per $100.00 of payroll for manufacturers – more than eight percent below the national payroll average of $3.90 per $100.00. In addition, Nebraska helps businesses hold the cost of workers’ compensation down by utilizing the Loss Cost Multiplier approach for determining rates. This allows insurance companies to determine the rate according to each company’s own experience.

Nebraska companies are also able to be self-insured for workers' compensation. Qualifying companies must have at least 100 employees with a minimum annual payroll of $2.6 million and have been in business for at least five years.

Unemployment Insurance

Nebraska businesses also enjoy exceptionally low unemployment insurance rates. According to the Nebraska Department of Labor, new employers not in the construction industry and other non-experience-rated employers are assigned a tax rate equal to the state average tax rate (2009 – 1.26 percent) or 2.5 percent, whichever is less. (After two years, companies with positive experiences are eligible for lower rates.) This tax rate applies to the taxable wage base of $9,000. The 2008 third quarter estimated contribution per worker was $126.90 for Nebraska, which is more than 50 percent lower than the national average of $267.40 (Source: U.S. Department of Labor).

Labor Unionization

Nebraska is a "right-to-work" state, one of eight states with right-to-work clauses written into their constitutions. Compulsory unionism is outlawed in Nebraska's constitution and workers’ freedom of choice is firmly supported. In addition, agency shop provisions are banned by state law. The latest available published data indicates that 4.2 percent of private sector non-farm wage and salary workers in Nebraska and 5.9 percent in the Greater Omaha area belong to a union.