Using Labor-Based Industry Complexes for Workforce Development in Missouri

Application of the industry cluster concept by development agencies is limited because cluster policies benefit economically powerful core regions over periphery regions and are of little use when a region has no competitive industries. To address these limitations, industry complexes can be used as an alternative to traditional cluster approaches. To demonstrate this, 49 labor complexes in Missouri are identified using cluster and discriminant function analyses, and their application to workforce development policy in Missouri is discussed. Labor complexes can be used to assist (a) job placement programs by identifying industries that are similar in labor but dissimilar in primary economic activity, (b) economic development by identifying existing pools of specialized labor for recruitment, and (c) development of customized training and education programs that meet industry demands.