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Demand Occupations List Methodology

Overview

The Labor Demand Occupations List (LDOL) for 2016 uses an updated methodology to determine which occupations are expected to have a “significant excess of demand over supply for adequately trained workers.” The 2016 LDOL will be in effect through July, 2018. Given New Jersey’s relatively small size, there is a single statewide list for all occupations.

This methodology considers many factors, incorporating data from a variety of sources, to determine whether an occupation is in demand. These include:

  • total employment in the occupation
  • long and short term projections of job openings
  • online job postings

Unlike prior years, the list is compiled by occupation (SOC code), not by program (CIP code).  A SOC-to-CIP crosswalk will be provided in order to map from demand occupations to their corresponding training and education programs.

Labor Demand Occupations
In order to be classified as “in demand”, an occupation must meet criteria related to total employment, advertised demand and projected demand.

Total Employment
An occupation must have a statewide employment level of at least 2,000 in order to be considered for the demand list. In 2016 there were 315 occupations meeting this threshold, or 41% of the 762 occupations in the state.

Demand criteria
Occupations must meet the demand criteria in order to be defined as “in demand”. These criteria are designed to ensure that there will likely be sufficient jobs available.

  1. Any occupation with at least 250 online job postings in 2016 AND at least 100 projected annual average job openings (long-term) AND at least 100 projected annual average job openings (short-term)
  2. Any occupation that does not meet rule #1, but meets at least one of the following:
    • At least 1,000 online job postings in 2016
    • At least 250 projected annual average job openings (long-term)
    • At least 250 projected annual average job openings (short-term)

 

Two of the criteria are based on projections calculated using the Occupational Employment Statistics (OES) data; the third criterion is based on online job listings.

Additional Targeted Occupations

The Department of Labor and Workforce Development may during the course of the year add occupations to the list, based on an analysis of the workforce needs of key industries in the state or based on changing labor market conditions.

Local Labor Demand Occupations

While the labor demand occupation list is based on a comprehensive analysis of supply and demand factors on a statewide basis, local labor market conditions may differ from those determined for the state. Local Workforce Development Boards (WDB) can request that additional occupations be added to the labor demand list for their area only if they demonstrate that there is a “significant excess of demand over supply for adequately trained workers” in the surrounding labor market area.

Such requests must be made in writing by a local WDB and must include supporting documentation or data. Local WDBs should submit these requests to: The Center for Occupational Employment Information (COEI), Robert Grimmie, Director, P.O. Box 057, Trenton, New Jersey 08625.