Perfect Labor Storm 2.0

Is the Skilled Worker Shortage A Hoax?

I woke up this morning, read a few emails and then clicked on a link that lead me to a Boston Globe column about a "solution for the lingering bommers." In it syndicated columnist Dale Dauten tells us:

For 10 years we've been hearing about this impending shortage of workers, about this looming leadership gap and inevitable talent void. Well, I haven't seen it, have you? All these years of alarms, and still, a hundred qualified people for every worthwhile job.

Oh, I understand the logic of the prophecy: The great lump in the snake of time, the boomer generation, is finally going to be digested and move beyond the workplace, leaving behind a smaller generation and thus shrinking labor pool; ergo, the gap/void/shortfall.

Mr. Dauten goes on to tell us about several consultants he knows that believe the shortage is real.  He however remains a skeptic.  If you have been following my posts for the last several weeks, you'd know that several states have declared the lack of skilled workers a crisis and are ready to "invade" neighboring states to find workers.  You would also recall how several businesses have lost opportunity and business because they don't have enough skilled workers to executive operations or deliver products and services.

As I continued through my emails, I came across another link which confirmed my forecasts and refuted Mr. Dauten. The first came from the Seattle Times. The story ironically tells a tale of a worker shortage in the most unlikely place - Ohio. Yes, Ohio - a "rust belt" state that has lost tens of thousands of manufacturing jobs over the last few years. And yet, business owner after business owner, cries the blues about too much business for too few skilled workers.  Put simply, the article states, "Even after a century of manufacturing focus and higher-than-average salaries, the region suffers an imbalance between available skills and the personnel needs of growing enterprises.......Many out-of-work trades people don't fit into today's technology-intensive factories."

This was followed by an article in the Toronto Star.

Central Canada may be bracing for a recession but there's still no sign of it in the West. Instead, employers worry about finding and keeping enough workers to deal with soaring demand for their products and services... Frustration abounds everywhere. The owner of one upscale Calgary restaurant says he has not only had to resort to washing the dishes himself, he's now thinking of buying two condos to house the temporary help he wants to import from the Philippines.

I did eventually contact Mr. Dauten and recommended he speak to growing and emerging businesses about the challenges they have in finding skilled workers. If you have stories about any businesses who can't find skilled workers, please share them with me by leaving a comment or contacting me. 

Maintenance Worker Crisis Song: An Workforce Anthem?

With a very clever song and "karaoke-like" powerpoint presentation, the people at MPACT Learning Center, a training center for maintenance workers, tell a story of their skilled worker shortage woes that should make every one of us to take pause.  The song and presentation says it all....so I'll stop typing.  To view and listen to "The Maintenance Crisis Song," click here or go to www.mpactlearning.com and look for the button in the bottom right corner of the page.  (You'll need to click "open" and not "save" to hear the music.)

Want Employable Skills? Hire Gamers!

While many employers and parents view computers and the Internet as a mixed blessing, most assume that there is no real upside to video games After all, the thousands of hours that young people spend playing with an Xbox, Playstation, or Wii gaming system are a waste of time: the cognitive equivalent of junk food.

Or, are they?

The members of today’s youngest generation, the Millennials or Generation Y, are the most technologically savvy in history. Unlike earlier generations, which had to adapt to new digital devices like personal computers, mobile phones, MP3 players, and video game consoles, Millennials have never known a world that wasn’t digital.

Much to the dismay of employers and parents (but to the glee of software and gaming companies) new research indicates that video games are not only not a waste of time, but they are actually a powerful tool for learning. Gaming skills as it turns out just might separate tomorrow’s most skilled, productive, successful, and wealthy performers from the rest of their generation.

Consider a few statistics that show how widespread the use of video games is for today’s American youth:

By age 21 years of age, it is estimated that the average child will have:

·          Spent 10,000 hours playing video games

·          Sent 200,000 emails

·          Spent 20,000 hours watching TV

·          Spent 10,000 hours on their cell phone

·          Spent under 5,000 hours reading

But according to a recent research study at the University of Rochester, that is not all bad news. Published in the scientific journal Nature, the compared people who played video games to those who didn’t. It found that video game players consistently scored higher on standardized tests of attention span and information processing than non-players.

The Federation of American Scientists also has come out in favor of video games as a way to teach advanced mental skills, such as strategic thinking, problem solving, adapting to rapid change, forming and executing plans, and analyzing information. According to Discover.com, The Federation cites games that require teamwork, such as World of Warcraft, as useful for teaching people how to cooperate and communicate in the workplace, and it offers Madden NFL’s “owner mode,” which lets players manage the business side of a football team, as an example of a video game that teaches people how to succeed in business. 

Authors John C. Beck and Mitchell Wade explain that video gamers will bring an extraordinary set of skills to the corporate world in The Kids Are Alright: How the Gamer Generation Is Changing the Workplace.

These skills include the following:

• They have developed an unprecedented ability to multi-task.
• They place a high value on being an expert.
• They creatively solve problems.
• They calculate risks and know the importance of getting a good return on investments.
• They aren’t afraid of competition.
• They love to win.

All of these qualities will make video gamers desirable employees, managers, and entrepreneurs. Moreover, Beck and Wade conducted a study that refutes the common perception of video gamers as social misfits. Gamers in their study were actually more social, more self-confident, and better leaders than non-players.

If gamers do truly possess the skills that innovative and growing businesses want, what implications will gamers have for your business? What accomodations will managers make to on-board this generation of gamers while their current workforce resists using email and the Internet? What about our educational system that continues to sprint through tar as a result of its failing technology, outdated curriculum, and aging workforce?

Shortage Of Veterinarians Threatens Food Supply

The Department of Labor projects 28,000 veterinary job openings by 2012. Currently, universities produce about 2,500 vets each year. The annual shortfall is projected to be about 5 percent, according to Mark Lutschaunig, director of governmental relations for the American Veterinary Medical Association.

Recent veterinary school graduates are likely to work in suburban pet clinics. That may be good for Fido, but it’s bad for livestock destined for the nation’s kitchens and restaurants.

The problem goes beyond sheer numbers. If there aren’t enough veterinarians to vaccinate herds, treat diseases, deliver calves safely and ensure that foreign food sources are safe, tainted meat and other toxic products could be the result.

Read more

Iowa: Another state warns about increasing number of unfilled jobs

While the ripple effect of the credit crisis continues to make waves, state after state are releasing new reports detailing an increasing number of unfilled jobs. 

A new report just released from Iowa Workforce Development, says roughly 50,000 Iowa jobs are unfilled because of a lack of applicants, a number projected to triple in the near future because of retirements. Other researchers have said the shortage will be even greater. Peter Fisher, an economist with the Iowa Policy Project, has used Census data to project a shortage of 198,000 workers by 2014.

Since the beginning of March each of the following states or countries have released reports warning of severe skilled worker shortages:
Pennsylvania
Connecticut
Georgia
Louisiana
Nebraska
Tennessee
Canada
Australia

In Iowa a majority of the vacancies are for jobs that require no experience and no post-secondary education. The industries with the greatest needs are services and health care, which together account for more than a third of the vacancies.

However, upcoming retirements are expected to increase the vacancies in jobs that require a college degree or specialized training, such as education services and manufacturing.

A special legislative panel last year recommended the following as solutions to head off the crisis:

-- Improve the services that help young Iowans find jobs;

-- Expand programs that retrain older workers for new jobs;

-- Find ways to attract more workers from outside Iowa.

You'll recognize two solutions that I have commented on recently - retaining and retraining older workers and finding ways to attract more workers from outside Iowa. 

So here ya go - another state trying to hold onto retiring boomers while developing strategies to "poach" their neighbor's workers.

With any scarce resource, hording is a natural response which drives up the value. Most employers have never been in this position before - a short and shrinking supply of skilled workers.  It is also very apparent that few are prepared and even fewer know how to respond effectively.  Recruitment and retention will remain hot topics for a very long time to come.

Skyrocketing costs and worker shortages

Higher cost of construction and building materials along with an acute shortage  of skilled workers, technicians and engineers, has raised an alarm in the region.  Sound familiar - no this isn't the U.S. but the countries surrounding the Persian Gulf - Saudi Arabia, UAE, Baharain for example.

The Perfect Labor Storm is a worldwide phenomena - we are living in flat world!

2 Million Minutes - How American H.S. Students Spend Their Time

As soon as a student completes the 8th grade, the clock starts ticking. From that very moment the child has approximately...Two Million Minutes until high school graduation...Two Million Minutes to build their intellectual foundation...Two Million Minutes to prepare for college and ultimately career...Two Million Minutes to go from a teenager to an adult.

How do most American high school students spend this time? Statistics for American high school students give rise to concern. Less than 40 percent of U.S. students take a science course more rigorous than general biology, and a mere 18 percent take advanced classes in physics, chemistry or biology. Only 45 percent of U.S. students take math coursework beyond two years of algebra and one year of geometry. And 50 percent of all college freshmen require remedial coursework.

Even more distressing are statistics offered by the National Center on Education and the Economy in its 2007 report “Tough choices or Tough Times.”  For every 100 ninth graders:

68 graduate from high school in four years.
40 enroll directly in college after graduation
27 are still enrolled in college one year after entering
18 earned an associate degree within three years or a bachelor’s degree with six years
82 don’t receive a college degree

How a student spends their Two Million Minutes - in class, at home studying, playing sports, working, sleeping, socializing or just goofing off -- will affect their economic prospects for the rest of their lives.

A new documentary, appropriately titled Two Million Minutes, takes a deeper look at how the three superpowers of the 21st Century - China, India and the United States - are preparing their students for the future. The film follows two students - a boy and a girl - from each of these countries from the viewpoint of kids preparing for their future.

Read more about Two Million Minutes
View the Two Million Minutes Trailer

And more about Skills Gaps

Only 1 in 2000 Admin Assistants Have the Right Job Skills

The irony is dramatic - I'm watching CNBC report how the stock market is crashing while reading a blog about skilled worker shortages that even made my jaw drop.  Included in the post was a list of job requirements that demonstrates why the number of job openings (even during while the unemployment rate is rising) will continue to rise and exceed the number of employable workers.

From one of my favorite blogs comes a post, What Should We Expect as Basic Administrative Skills?.  While the number of candidates applying for an administrative position might prove that unemployment and/or employee dissatisfaction is on the rise, it is also proof that the Perfect Labor Storm is real.

In today's post, Jim Kissane writes:

I recently spoke to a client who advertised a entry level sales position, got over 2,000 responses, and after sorting out the candidates, was left with only one (1) that demonstrated the attitude, work ethic and technical skills that he required.

The Perfect Labor Storm is no longer a story of more jobs than people - it's a story of open jobs because many of the people looking to fill these jobs don't have all the skills to meet the job requirements. While the list of job requirements has certainly expanded from one of "how many words can you type?" the list is not outrageous nor out of line....and yet employers cannot find workers who can meet even this minimalist list.

I'd also be remiss if I didn't mention in the reasons for this gap that employers also play a significant part - it's a seller's market for job skills and wages are going up, up, up. As this one story confirms finding a skilled worker who can meet all your job requirements may be like finding a needle in the proverbial people haystack - a 1 in 2000 chance!

When I asked what he was looking for, he gave me his list. 
It looked like this:

• Familiarity with desktop operating systems (Apple OS, Windows)
• Ability to access files - understand the concept of connectivity - storage
• Perform basic word processing
• Operate E-mail, calendar, address book
• Able to perform data entry and chart preparation
• Create a brief informational presentation
• Ability to safeguard confidential information
• High-school graduate (not GED)
• Able to pass a drug test
• Valid active in-state drivers license

More and more stories like this keep coming up.  If you are a manager or employer experiencing problems finding skilled workers, please add comments or contact me directly.

Nebraska: Workforce shortages only "is going to get worse"

In the past two years the number of job openings in Nebraska has nearly doubled. It's only going to get worse according to Lee Elliott, vice president of human resources at St. Francis Medical Center in Grand Island.

“We are facing significant problems in our state,” Elliott said, adding the population in Nebraska is projected to decrease in the coming years. “We’re not talking about a minor temporary situation.”

While the labor supply shortage is already a concern, Elliott said, "it is going to get worse." He predicted 2008 will be the tipping point when the workforce shortage will start to become severe.

Mr. Elliott hit the nail on the head.  The year 2008 was forecast as the tipping point 10 years ago and yet employers and organizations including the government acted as if they had all the time in the world to deal with workforce trends that were going to change the way they did business.

Well, 2008 is here and as Mr. Elliot said, his state like dozens of other states are facing skilled worker shortages and ....that this year is just the tipping point when skill shortages start to become severe.

Read more

Skilled shortages in Louisiana threatens economic recovery

According to the Louisiana Association of Business and Industry, an influential business group proposing changes in state policies on work-force development, Louisiana has a serious shortage of skilled workers. The only immediate solution will be importing these skilled workers from outside the state.

While this strategy is generally unspoken, “poaching” employees is still being recommended in every region, in every state, and in every industry. 

Similar to the backlash in communities from global outsourcing, attracting employees from neighboring states means big political implications when unskilled workers complain that they’re being rejected in favor of trained workers from elsewhere.