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Keeping Communication Current
KCC Newsletter
November 10, 2014
Why Many Aren’t Celebrating Low US Unemployment
The unemployment rate no longer seems to reflect America’s mood.
Friday’s strong jobs report
showed that the jobless rate —
the most closely watched
gauge of the economy’s health
— is down to 5.8 percent. A
year ago, the rate was 7.2 percent. Five years ago, it was 10
percent.
It’s the kind of sustained decline that would normally suggest a satisfied public.
Not so much anymore….Many
Americans don’t feel they’ve
benefited from falling unemployment any more than they
have from a sustained rise in
the stock market or from solid
U.S. economic growth.
Some hints of their discontent
can be found within an otherwise glowing jobs report for
October…Consider wages.
Workers’ pay usually outpaces
inflation once the unemployment rate dips beneath 6 percent. That’s because when
fewer people need to look for
jobs, employers must raise pay
to attract the most desirable
among them.
Even with 5.8 percent unemployment and even though
more than five years have
passed since the Great Recession officially ended, this phenomenon has yet to take hold.
Most workers’ pay is barely
keeping up with historically low
inflation.
“People aren’t looking at the
statistical aggregates,” said Bill
Galston, a senior fellow at the
Brookings Institution. “They
care about their standard of
living, and most Americans
think their standard of living
has declined.”
Look, too, at the percentage of
adults either working or
searching for work. It’s a
measure called labor force
participation. The government
counts people without jobs as
unemployed only if they’re
seeking work. If more people
stop looking, labor force participation falls.
At 62.8 percent, the U.S. participation rate hasn’t budged
over the past 12 months. And
it’s down a sharp 3.6 percentage points from 2007. That
means a lower proportion of
Americans are engaged in the
job market and benefiting from
the economic upswing.
Some of the decline in participation stems from retirements
by the oldest of the vast baby
boom generation. But not all.
Mandel reasons that much of
the decline is due to people
who want to work but are no
longer actively searching. As
long as a large such pool of
potential workers exists, it will
put downward pressure on
wages.
Wages averaged $20.70 an
hour for most workers last
month, a tepid 2.2 percent
gain over the past 12 months.
The picture looks bleaker still
for workers at auto plants,
steel mills, and similar factories. If you go back to October
2009 and adjust for inflation,
these workers are now earning
on average $1 less an hour,
according to the Labor Department.
People in the professional services sector — everyone from
managers to temporary workers — now earn on average 80
cents less an hour over the
same period. An average construction worker makes 59
cents less n hour. Retail employees earn a penny less.
Read the entire article at
http://
www.washingtonpost.com/
business/why-many-arentcelebrating-low-usunemployment/2014/11/08/418e4ee46750-11e4-ab8646000e1d0035_story.html?
Table of Contents
In This Issue
Page
Low US Unemployment
School Programs
Manufacturer Tackles Labor
Hospitality Hiring Surge
Spatial Mismatch
Military to Police
Are You Ready?
Program Addresses Gap
Codecademy & Reskill USA
Hired Today, Gone Tomorrow
Bureau of Labor Statistics
German-style Apprenticeships
Employee Engagement
Rehab Council Membership
Women Promoting Women
1
2
2
3
3
4
4
5
5
6
6
7
7
8
88
Keeping Communication Current
Initiative to Reduce Skills Gap through School Programs
An energy giant has teamed
with regional organizations
to implement programs that
it hopes will eventually produce a large, highly skilled
workforce in the region’s
energy and manufacturing
sectors.
Chevron Corp., in collaboration with the Allegheny
Conference on Community
Development, the Claude
Worthington Benedum
Foundation and RAND
Corp., launched in October
the Appalachia Partnership
Initiative, which sees the
energy company investing
$20 million into regional
education projects.
The initiative is designed to
address education and
workforce development in
27 counties in southwestern
Pennsylvania, northern
West Virginia and eastern
Ohio by improving education and technical training
to meet the needs of the
growing energy and manufacturing industries.
Efforts of the initiative include improving curricula in
public schools to provide
additional science, technology, engineering and math
(STEM) education and implementing programs that
engage students in handson learning.
Trip Oliver, Chevron policy,
government and public affairs manager, said the initiative aims to create career
paths that students can
follow into industry jobs.
“This is a pathway from
middle school to high
school and into postsecondary training, starting
with math and science
skills,” said Oliver. “Students
are going to be able to take
the training courses that
are needed to compete for
these jobs.”
fill those positions.”
The impetus of the initiative
is a 2012 workforce analysis
report by the Allegheny
Conference that concluded
region’s workforce suffers
from a shortage of skills —
especially in STEM-related
learning areas.
The 14 target jobs considered in demand by energy
companies include helpers
The skill shortage, the report said, could prevent
energy companies from
filling thousands of new
jobs in the region. The report identified 14 highdemand, low-supply jobs in
the energy industry for
which employers are having
trouble finding qualified
workers.
“The study was conducted
to get a sense of hiring
needs over the next decade,” Oliver said. “Of those
14 critical jobs, the companies did not have a lot of
confidence they’d be able to
Employer expands
participation in
Project Lead the
Way
(installation, maintenance
and repair workers); mechanical engineers; inspectors, testers, sorters, samplers and weighers; firstline supervisors of construction trades and extraction
workers; electrical engineers; first-line supervisors
of production and operating
workers; welders, cutters,
solderers and braziers; industrial machinery mechanics; sales managers; heavy
and tractor-trailer truck
drivers; petroleum engineers; property and real
(Continued on page 7)
Michigan Manufacturer Tackles Labor Shortage
Like other employers, Primera Plastics Inc. struggles
to find skilled workers. But
the growing plastic injection
molding company that supplies the auto and furniture
industries is taking a new
approach to growing its
workforce, The Grand Rapids Press (http://
bit.ly/1wfveUB ) reported.
Noel Cuellar, the company’s
owner and founder, has
launched Primera Pathways,
an initiative that gives unskilled workers on-the-job
training and even provides
a free bus ride to work at
the company’s 106,000square-foot manufacturing
plant in Zeeland Township.
“The upturn in the economy
has created a skilled labor
shortage,” said Cuellar.
“People with skills have jobs
and are working, but local
companies like ours have
hundreds of jobs they need
to fill.”
---------Read the entire article by
Shandra Martinex at http://
www.elkharttruth.com/
news/
michigan/2014/11/09/
Michigan-manufacturertackles-labor-shortage.html
Page 2
Employer takes
new approach to
growing its workforce:
Michigan manufacturer deals with
labor shortage with
paid training, free
rides to work.
Keeping Communication Current
Hiring Surge at Restaurants and Bars Helps
Push Down US Unemployment rate
Last month's uptick in hiring, which helped further lower the U.S. unemployment rate, spanned an array of industries.
Driving the gains were leisure and hospitality
employers, which added 52,000 jobs. Restaurants and bars accounted for most of the surge,
which suggests that "consumers are gradually
loosening the purse strings," said Gregory Daco,
lead U.S. economist at Oxford Economics.
Overall, employers added a solid 214,000 jobs
in October, the Labor Department said Friday.
The report also showed that employers added a
combined 31,000 more jobs in August and September than the government had previously
estimated.
The unemployment rate fell 0.1 percentage
point to 5.8 percent, the lowest level since July
2008.
Industry (change from previous month)
October September
2014
2014
Past 12
months
Construction
12,000
19,000
231,000
Manufacturing
15,000
9,000
170,000
Retail
27,100
34,000
249,100
Transportation, warehousing
13,300
5,200
154,400
Information (Telecom, publishing)
-4,000
13,000
10,000
Financial services
3,000
12,000
85,000
Professional services (Accounting,
engineering, temp work)
37,000
55,000
657,000
Education and health
41,000
43,000
428,000
52,000
48,000
380,000
5,000
12,000
60,000
Every major job category has recorded cumulaHotels, restaurants, entertainment
tive job gains over the past 12 months, led by
professional services, education and health, and
Government
leisure and hospitality.
---------Source: Labor Department
AP at http://www.foxbusiness.com/
markets/2014/11/07/hiring-surge-at-restaurants
-and-bars-helps-push-down-us-unemployment-rate/
Spatial Mismatch — Sprawl & Poor Transit Further Unemployment
Social and economic equality
and inequality have many root
causes. A paper published in
the mid-196os examined the
“spatial-mismatch hypothesis.”John Kain, an economist at
Harvard University, found a
significant connection between
unemployment rates
(especially in minorities) to this
theory of the geography of
unemployment.
The description “spatial mismatch” finds higher lowincome community unemployment due to isolation from
employment centers. The absence of reliable mass transit
or other transportation opportunities, in particular, causes
this isolation. Thus, insurmountable obstacles in applying or maintaining work plague
low-income community members. The isolation is particularly harmful to minorities,
women, and the elderly.
A new study the US Census
Bureau has released supports
(again) the truth in this theory.
From the study, Job Displace-
ment and the Duration of Joblessness: The Role of Spatial
Mismatch: Our results support
the spatial mismatch hypothesis. We find that better job
accessibility significantly decreases the duration of joblessness among lower-paid
displaced workers.
---------Read the entire article by Cynthia Shahan at http://
cleantechni-
Page 3
ca.com/2014/11/09/spatialmismatch-sprawl-poor-transitunemployment/
Keeping Communication Current
Military to Police Force:
A Natural Transition?
Although many veterans feel that law enforcement is a natural
fit, some former servicemembers resent being typecast. Others
say the profession is the least suitable career choice for veterans
who are still working out emotional issues from deployments.
And some veterans consider a career in law enforcement because
they consider it one of the few viable options in a challenging job
market.
The Bureau of Labor Statistics doesn't keep precise statistics on
the number of veterans employed in law enforcement, instead
lumping together the classification with wardens, school crossing
guards and other security jobs. But the agency reports the unemployment rate for post-9/11 veterans was 7.7 percent in July, up
from 7.2 percent in June. That's 0.3 percent higher than the unemployment rate for the civilian labor force.
The International Association of Chiefs of Police was concerned
enough about "transitional obstacles" veterans might face if
they pursued a career in law enforcement that three years ago
it published guidebooks for veterans and any agencies that
might consider hiring them.
"The benefits that I could see veterans bringing to a police
force would be great," Deitch said. "You are not going to find
better leaders. On the other hand, I care about individual people."
Read the entire article by Gary Peterson at http://
www.military.com/veteran-jobs/search/law-enforcement-jobs/
military-transition-to-police-force.html
Veterans face challenges that civilians do not. Some are unsure
how to express to potential employers how skills learned in the
military translate to the civilian job market. Some return with
post-traumatic stress disorder or traumatic brain injury and wonder if those conditions will be a deal-breaker if they reveal them
when interviewing for a job.
So the notion of taking military skills to a civilian agency that has
a similar structure can be appealing. And that's a two-way street.
Several job fairs for veterans have been held over the past few
months. They all seem to feature multiple law enforcement agencies looking to hire.
"The veterans we're trying to reach out to, they have the set of
skills, the discipline and the training where they would easily
transition from the military to civilian law enforcement," said police Officer Gregory Pak, who manned an information table at a
Hiring Our Heroes job. "It's a win-win."
Jason Deitch, an Army Ranger who served multiple deployments
to Africa and the Middle East, has a concern beyond familiarity or
pride.
From Military to Police:
Are You Ready?
Are you nearing the end of your military service contract/
career and considering a new career in law enforcement?
Police Officers and Military Personnel are a special breed of
people. For the most part, we have an attraction to action,
conflict, and non-simplistic lifestyles where everything can
change in a moments notice. We also like working in structured environments where we often form close bonds with our
fellow employees.
However, in our worlds, our co-workers are not just "fellow
employees" and we don't have "regular jobs". Our chosen careers are a huge part of our lives and our co-workers are more
like brothers and sisters. Our very lives are often placed in
each others hands.
Continue reading at http://www.military.com/veteran-jobs/
search/law-enforcement-jobs/military-to-police-transition.html?
comp=1198882889572&rank=1
"I'm not saying there aren't lots of vets out there who wouldn't
be extraordinarily good cops," said Deitch, a tactical consultant to
police forces when he first got out of the military and who now
works as a veterans rights advocate. Deitch said there is no logical link between the two professions, and he urges caution.
"As a matter of fact, there are good reasons to seriously evaluate
whether or not that is a good idea," he said. "You're going to
continue to expose yourself to violence, tension, stress, anxiety.
You come back and become a police officer, the potential for retraumatizing is very high."
http://www.military.com/veteran-jobs/skills-translator/
Page 4
Keeping Communication Current
Program Addresses Gap between Jobs, Skills
Skilled workers are needed in our region. However, the gap between
what skills applicants possess and what employers need is too wide.
Step Forward is a regional cradle-to-career initiative that is currently operating in three parishes — Bossier, Caddo and
DeSoto. Workforce Development is one of the platforms where work is being done to align the resources in our community with the needs.
Jacques Lasseigne, regional industry coordinator for Louisiana
Workforce Commission, is the chairman of the Step Forward Workforce Development Network. His team is working to the increase
the number of those aged 18 to 25 enrolled in credentialed programs to get the skills necessary to obtain living-wage jobs. The
network is dedicated to positively impacting the workforce by partnering with businesses, educators and stakeholders to increase
employment and enhance the economic viability in this region.
…working to the increase the
number of those aged 18 to 25
enrolled in credentialed programs to get the skills necessary to obtain living-wage jobs.
Read the article by Africa Price at http://www.shreveporttimes.com/story/opinion/guest-columnists/2014/11/06/program
-addresses-gap-jobs-skills/18609145/
The Wall Street Journal
Codecademy Building a Nation of Coders
One of the most persistent
problems in the labor market is the so-called skills
gap. One start-up is trying
to do something about it.
Zach Sims is the co-founder
and CEO of Codecademy,
an effort to teach coding to
people, and he dropped in
on the MoneyBeat show
this morning to talk about
his company and how it’s
helping to address that
skills gap. Since starting in
2011, the organization has
taught about 25 million
people worldwide, and
while it was founded more
with a vision of being a
modern take on the education system, it’s also become something of a response to the changing jobs
market.
Also, the firm started an
effort called ReskillUSA that
is designed not only to
teach coding skills, but to
help people in the program
find jobs as well.
Watch the 3:05 minutes video at http://blogs.wsj.com/
moneybeat/2014/11/07/codeacademy-building-a-nation-of-coders/
“Beliefs have the power to create and the power to destroy. Human beings have the
awesome ability to take any experience of their lives and create a meaning that
disempowers them or one that can literally save their lives.” ― Tony Robbins
Page 5
Keeping Communication Current
Hired Today, Gone Tomorrow
Experts confirm and bemoan survey findings showing millennials and
recent college graduates are likely to leave first jobs within one year.
It’s not looking real promising for Gen Zers’ and Gen Yers’ employment longevity.
The latest findings from Oklahoma City-based staffing firm Express Employment Professionals show 77 percent of employers surveyed expect a recent college graduate to stay
less than one year in his or her job. In addition, only 23 percent think the average graduate stays at his or her employer for more than a year.
The survey report, America Employed, based on responses from 115 Express franchises
across the United States, “bring to mind a couple of trends that we’ve seen for years
now,” says Bob Funk, CEO of Express. “First, many in the millennial generation are taking
jobs that they are overqualified for and, thus, are eager to move on when something
better appears.
“Second,” he says, “we’ve seen a decrease in employees’ commitment to employers as a higher value is placed on personal advancement. If employers want recent grads to stay on board long-term, they’re going to have to find ways to make their companies more
attractive.
“It’s true that the ‘grass isn’t always greener,’ ” he adds, “but this generation seems plenty willing to go check out the grass on the
other side. Employers, take note.”
Continue reading at http://www.hreonline.com/HRE/view/story.jhtml?id=534357837&
Bureau of Labor Statistics
Payroll employment increases by 214,000 in October; unemployment rate edges down to 5.8%
Total nonfarm payroll employment rose by 214,000 in October, and the unemployment rate edged down to 5.8 percent. Employment increased in food services and drinking places, retail trade, and health care.
Source: http://www.bls.gov/news.release/pdf/empsit.pdf
Page 6
Keeping Communication Current
School Programs
(Continued from page 2)
estate managers; computer
-controlled machine tool
operators; and machinists.
“Many of these are traditionally thought of as blue
collar jobs,” said Oliver. “But
there’s a lack of understanding about the amount
of technical training needed
to do the jobs.”
To give students this training, Chevron will expand its
existing partnership with
Project Lead the Way
(PLTW) to build STEM programs in schools through
curriculum resources, hands
-on science learning and
teacher training.
not just for people who
want to go onto higher education. What the curriculum
is trying to do is make it
more enjoyable and less
intimidating to open up
those skills and disciplines
to students who weren’t
interested before or didn’t
think they could do it,” Oliver said.
Continue reading the article by Eric Morris at
http://www.heraldstanda
rd.com/news/business/ini
tiative-to-reduce-skillsgap-through-schoolprograms/article_e1def637e709-5f1a-aea301cb61541ddc.html
“STEM skills are necessary
for a large number of jobs,
German-style Apprenticeships Could Supply US Economy with Bevy of Skilled
Workers
If adopted widely by U.S. manufacturers and other
businesses, apprenticeships have the potential to help
solve a critical U.S. problem with high unemployment
among youth and workers who got laid off during the
recession, backers say. Despite five years of recovery
from the Great Recession, many of these hard-toemploy people still can’t find jobs.
Read the article by Patrice Hill at http://
www.washingtontimes.com/news/2014/aug/31/
germanys-apprenticeships-could-resolve-lack-of-ski/
From http://www.successories.com/infographics/employee engagement?utm_source=yesmail&utm_medium=email&utm_campaign
=EME4NV3
Page 7
Keeping Communication Current
The Minnesota State Rehabilitation Council is a citizen advisory council, appointed
by the governor, to provide guidance to the state’s Vocational Rehabilitation (VR)
program. The VR program serves thousands of Minnesotans with disabilities every year, helping to place them in jobs and educational opportunities.
If you’re interested in the issue of disability employment policy, the council offers
an excellent opportunity. Its members help to shape policy, engage in strategic
planning, and provide guidance to promote increased employment for people
with disabilities.
The council includes people with disabilities, community rehabilitation program
employees, vocational rehabilitation counselors, advocates, parents, VR customers and business leaders. Historically, it has been seen as a model nonprofit
council with intelligent, engaged and interesting members. Members serve threeyear terms.
As a council member, you will advise the state on the performance of Minnesota’s
VR program and assist in the agency’s planning. You will report to the governor
and the U.S. Department of Education on the status of VR program, coordinate
activities with other state councils and participate in public hearings and forums
that guide the state’s VR program and services.
Moreover, you help an under-represented and important demographic — people
with disabilities — to obtain employment, education, community integration, and
the chance to live independently.
---------Shared by Christine Bauman, Workforce Investment Board member
and Rehabilitation Area Manager, South Central WorkForce Center,
[email protected], 507-389-6965
FOR MORE INFORMATION
CONTACT:
Gail Lundeen
Minnesota State
Rehabilitation Council
DEED
332 Minnesota Street
Suite E200
Saint Paul, MN 55101
[email protected]
VOICE: 1.800.328.9095
651.259.7364
TTY:
651.296.3900 or
1.800.657.3973
TO APPLY:
Application forms, including
applications in alternative
formats, are available from:
Secretary of State,
Open Appointments:
http://www.sos.state.mn.us/
index.aspx?page=5
VOICE: 651.215.1440
Women Penalized for Promoting Women,
Study Finds
Read the article at
http://blogs.wsj.com/atwork/2014/07/21/women-penalizedfor-promoting-women-study-finds/
Workforce Development, Inc. | 2070 College View Rd. E. | Rochester, MN 55904
Tel: 507.292-5180 | Fax: 507-292-5173
Web: www.workforcedevelopmentinc.org
To be added to the newsletter distribution list, email [email protected] .
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