© Copyright 2005 by the Wyoming Department of Employment, Research & Planning

Wyoming Sees Large Increase in Foreign Labor Certification Prevailing Wage Requests in 2004

by: Sara Saulcy, Senior Economist

From 2003 to 2004, Wyoming experienced a surge in prevailing wage requests associated with the U.S. Department of Labor’s Foreign Labor Certification program. Most of the growth was concentrated in the Cheyenne Metropolitan Statistical Area and in computer & mathematical science occupations. The Southwest region continued to lead the state in the number of requests per year. Despite the surge in wage requests in Wyoming, studies of foreign labor in the U.S. suggest that, overall, immigration is not linked to prevailing economic conditions.

Wyoming Foreign Labor Certification prevailing wage requests received by Research & Planning (R&P) in 2004 increased substantially compared to the previous two years. From 2001 to 2002, requests dropped by 38 from 241 to 203. Requests increased slightly between 2002 to 2003 (up two). In 2004 the number of requests showed a surprising jump of 65.4% to 339 from 205 in 2003. In this article we look at the regions and types of occupations in which the increases in 2004 were concentrated. We then compare 2004 wage requests to employment growth projected in the state over the 2000-2010 period. Lastly we review research on the relationship between economic conditions and immigration.

Background

As part of the U.S. Department of Labor’s Foreign Labor Certification process for incoming foreign workers, a prevailing wage determination from a State Workforce Agency is typically required for a given occupation and geographic location. R&P, in cooperation with the Wyoming Department of Workforce Services’ Jackson office, is the State Workforce Agency that makes wage determinations for Wyoming. R&P gives the determination to the prospective foreign worker’s employer or agent and to the Jackson Workforce Center, which manages other aspects of the Foreign Labor Certification process. 

A prevailing wage determination usually covers a single foreign worker in Wyoming, although occasionally a single request will cover multiple foreign workers. If an employer does not use the determination within 90 days of a response from R&P, the employer or the employer’s agent must obtain a new prevailing wage determination (Saulcy, 2004).

Prevailing Wage Determinations by Region

In five of the six regions, determinations increased by more than 30% from 2003 to 2004 (see Table 1). Only the Northeast region experienced a decline, from 25 in 2003 to 20 in 2004 (-20.0%).

By far, the largest request increase was in the Cheyenne MSA from 34 in 2003 to 103 in 2004 (202.9%). The Casper MSA also saw a relatively large increase (100.0%), from 9 in 2003 to 18 in 2004. Among other regions, the Central-Southeast region experienced an increase of 12 requests (32.4%), the Northwest rose by 4 (44.4%), and the Southwest by 45 (49.5%).

Despite substantial increases in the Cheyenne MSA, the Southwest region continued to have the most requests of the six regions (136). However, as a percentage of all determinations, the region’s share of total requests declined from 44.4% in 2003 to 40.1% in 2004.

Prevailing Wage Determinations by Occupation

Computer & mathematical science occupations yielded the greatest increase in requests for prevailing wage determinations (see Table 2). Wage requests for these occupations increased from 26 in 2003 to 101 in 2004 (288.5%). Building & grounds cleaning & maintenance occupations yielded the second largest increase, up 72.2% from 2003 to 2004.

Declines in wage determination requests were seen in three occupational groups: architecture & engineering (-5); installation, maintenance, & repair (-5); and production (-3). In both 2003 and 2004, these occupational groups accounted for less than 6% of all requests.

Prevailing Wage Determinations and Projected Employment Growth

R&P projects employment growth in Wyoming of 1.5% annually from 2000 to 2010. The Casper and Cheyenne MSAs are projected to grow by 1.6% and 1.8%, respectively. The surge in determination requests in the two MSAs may be tied to these projected increases. 

Growth in the Northeast region is projected at 1.7% annually (Leonard, 2003). Yet Northeast region wage determination requests fell by 20% from 2003 to 2004. The source of the decline in requests is unclear.

Among occupational types, projected employment growth over the 2000-2010 period in food preparation & serving related and building & grounds maintenance is projected at 3,000 and 1,700 jobs, respectively (Glover, Harris, & Saulcy, 2004). Both of these occupational groups experienced fairly large increases in wage determination requests. Food preparation & serving related requests increased by 24, while those for building & grounds maintenance increased by 26.

Computer & mathematical science prevailing wage determination requests represent an anomaly. Determination requests for this occupational group increased by 75 from 2003 to 2004. Statewide, employment in this category is projected at only 250 jobs for the full 10-year period (Glover et al., 2004). Increases in the number of requests could be a precursor to additional growth in this occupational group in the state.

The Relationship Between Foreign Labor and Economic Conditions

It may well be that some of the increases in wage determination requests are tied to projected employment increases in Wyoming, as demonstrated by request increases for food preparation & serving related and building & grounds maintenance occupations. For other occupational types, the relationship between prevailing wage determination growth and prevailing economic conditions is less obvious. The jump in requests for computer & mathematical science occupations is the most notable. From 2001 to 2003, 42 requests were made for these occupations. In 2004 alone, the number rose to 101. Whether this was an isolated occurrence or the beginning of a fundamental change in Wyoming’s occupational structure is uncertain. 

Despite the change observed in computer & mathematical science occupations in Wyoming, research suggests that in-migration of foreign workers to the U.S. does not typically adjust to economic conditions:

The total foreign-born population reached 33.5 million in March of [2003], a net increase of one million since 2002 and the highest number ever recorded in American history. . . . Since 2000, 2.3 million new immigrant workers (legal and illegal) have arrived in the United States – almost exactly the same as the 2.2 million who arrived during the 3 years prior to 2000, despite dramatic changes in economic conditions (Camarota, 2003).

Like the U.S. experience with incoming foreign workers, changes in Wyoming’s foreign worker population may be linked to factors other than economic.

Summary

Wyoming experienced relatively large growth in prevailing wage determination requests from 2003 to 2004. Growth was especially pronounced in the Cheyenne MSA and in computer & mathematical science occupations. The Southwest region continues to have the largest share of total determination requests. However, studies on foreign workers in the U.S. indicate that immigration remains high, even when economic conditions are poor. Some growth appears to correspond with economic conditions, although the growth in the number of prevailing wage requests for computer & mathematical science occupations represents a deviation from previous years. It remains to be seen whether this deviation represents the beginning of a shift in Wyoming’s occupational structure.

 References

Camarota, S. (2003, November). Immigration in a time of recession. Backgrounder, 1-10. Retrieved February 18, 2004, from http://www.cis.org/articles/2003/back1603.html

Glover, T., Harris, M., & Saulcy, S. (2004, February). Occupational outlook: 2010. Retrieved February 23, 2005, from http://doe.state.wy.us/LMI/OccOutlook2010/Occ%20Outlook%202010%20appendix.pdf 

Leonard, D. (2003, April). Wyoming’s labor market employment: Historical and projected. In Gallagher, T., Harris, M., Leonard, D., Liu, W., & McVeigh, B. Employment outlook: 2010 (chap. 2). Retrieved February 23, 2005, from http://doe.state.wy.us/LMI/EmpOutlook2010.pdf

Saulcy, S. (2004). Wyoming foreign labor: Where do they work and what jobs do they hold? Wyoming Labor Force Trends, 41(6). Retrieved February 23, 2005, from http://doe.state.wy.us/LMI/0604/toc.htm

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