Address:
575 E. Big Beaver
Suite 380
Troy, MI 48083
Phone:
877.867.8233
Website:
Click here
E-Mail:
Click here
DIS Blog:
Click here
Helping you to find the employees you need to run your business efficiently.
|
|
|
|
The Connection
|
Vol. 1, Issue 3 6/11/2007
|
Todd's Thoughts
Again the news seems bad for Michigan, as the June 7 Detroit News reports that while jobless rates fell nationwide, Michigan's continued to rise. The discrepancy is attributed to, big surprise, layoffs from the auto industry.
This is an interesting paradox - there are talented people out of work and skilled labor jobs that need filling. Seems like an obvious solution, yet things aren’t working out that way. Why not? It appears to me to be a likely mix of stubbornness and denial.
I'm sure most of these workers have gotten used to the good jobs the auto industry was once able to provide for them, but now those jobs are gone. Unfortunately, they are holding out, waiting for the auto industry to rebound and their dream job to return, rather than take a lower paying job.
I'm not just making assumptions; these are common attitudes from people I see on a regular basis. For example, last week we posted an opening for a CNC machinist position and scheduled 22 interviews. Of those scheduled, four never showed up. Another three called and canceled. Two others were working other jobs and two others were not interested in the job they were being interviewed for. So from the initial 22, only half even showed a genuine interest in the position. One was immediately disqualified for showing up with alcohol on their breath, another after a background check revealed a felony record. Two were determined to be unqualified for the position, while other two were deemed unreliable by pre-screening tests. Of the five remaining that were considered "good candidates," the range of requested pay went from $13-22 an hour. Not surprisingly, the one who was content with $13 an hour was ultimately hired. You really can't blame the company for this choice. When presented with the choice of two qualified candidates, one which would cost an extra $18,700 per year for the same work, which would you choose?
So while there are some good workers out there in need of jobs, they may have a hard time finding one that pays what they were used to getting. I've said on several occasions that workers need to lose their sense of entitlement while looking for work in the new Michigan. The Big 3 may rebound in years to come, but not to the level they once were, and even if some of those "dream jobs" do come back, they will not be enough to bring all those laid off back and those that return will not have the same job security they once did.
The alternative is to swallow their pride, take a job that uses their skills but may not pay as much at first. Some industries are still anxious to fill open jobs and will likely show their employees better job security that the auto industry can these days.
Freakonomics of Michigan
Stephen Levitt, author of "Freakanomics" recently spoke with metromode media about the future of Michigan’s economy. Highlights from the interview include:
“The problems of the rustbelt are just some incredibly difficult problems. I wish I had some magic bullet to offer but it's just tough. In terms of the economy it all comes down to, essentially, workforce productivity. Can you make things people want cheaper than other people can make them? Either you're going to be productive and get paid high wages or you're not going to be productive and be paid very low wages. Chinese workers are not very productive and they get paid very low wages. That's why Chinese products are so cheap. In the U.S., workers are productive but if you are not doing jobs that require high skills you're not going to get paid high wages. I don't know. I wish I had answers for this incredibly difficult situation. In the long run, the only way out of it is through education. An institution like Wayne State is critical to educating a workforce to make things better and do things better than people can elsewhere.”
“The problems Michigan faces are certainly the same problems that are facing all of the Midwest and parts of the Northeast. It's not unique. Michigan's problems are perhaps highlighted by the fact that a large share of the economy is struggling because of the automobile industry. There could be some truth to that. If the American automobile industry disappeared, which it won't, that would be a dark day for Michigan. The only parallel I have seen to that is essentially steel. But if you look at it, Pittsburgh is a pretty good city these days. Pittsburgh has really reinvented itself pretty effectively. But there are other areas. I just visited Youngstown, Ohio, and it is having more trouble reinventing itself. When faced with change, and obviously there is going to be more change coming, the nature of the economy is there will be change. If you look at the 100 biggest companies by market capitalization back in the 1920s, very few of them even exist anymore. There obviously will be changes going on but change doesn't have to be bad. Change handled well can be good. In large part it comes down to having people in government who can think about economics intelligently. Many of the most important questions on the horizon are economic questions and navigating your way through economic change. That's not what politicians are typically good at or elected for and yet I think that is something that is incredibly important."
Source: metromode media
The New Michigan Economy
Detroit Renaissance, the organization responsible for the "Road to Renaissance" plan to revitalize Detroit and Southeast Michigan has set 11 goals which they believe will bring the area back to healthy economic state. Of those 11 goals, three are a direct reflection of the changing job market.
"6) Grow, diversify and improve the entrepreneurial environment by expanding program capacity, improving gap funding and developing retaining and attracting experienced management talent to sustain entrepreneurial activities.
7) Expand early- and mid-stage growth-oriented companies and available funding by forming a regional fund of funds; strengthening the Southeast Michigan Angel Network; increasing access to federal Small Business Administration, Small Business Innovation Research and Small Business Technology Transfer Research funds; and, encouraging traditional lenders to support emerging businesses.
9) Connect those who have obtained the appropriate skills to the job market. This includes establishing a regional internship/apprenticeship initiative that is closely connected to the business community and offering long-term career opportunities to non-four-year-college-bound youth and adults entering new careers."
So as things change over the next few years, those spearheading the initiatives are pressing for a switch to an economy sustained by a large number of smaller, privately owned and operated business rather than a small group of large corporations.
Source: Michigan Future – WWJ
|
