Michigan's biggest problem? 'Many job seekers in the marketplace are low-skilled'
Statistically, Michigan's jobs recovery is underway.
The state's unemployment rate has been on a gradual slide for the last year and a half, which was confirmed again Wednesday with the release of statistics showing the rate fell to 10.3 percent in March, a full three percentage points lower than a year earlier.
But do we have the skills to match those jobs?
In an extensive special report published today on the website of nonpartisan think tank Center for Michigan, reporter Rick Haglund, who also freelances for AnnArbor.com, explored the state's emerging skills gap.
“Many job seekers in the marketplace are low-skilled,” Amy Cell, senior vice president for talent enhancement at the Michigan Economic Development Corp., told Haglund. “That’s probably the biggest problem we face.”
The good news is that Michigan's employment market is gradually improving. In fact, University of Michigan economists recently projected that the state would add 126,100 jobs in 2011 and 2012. That's 38,600 more jobs than they had previously predicted.
But in the aftermath of the global recession, Michigan's economy splintered into two segments: people who have an education and people who don't.
Even standard jobs on the assembly line in the auto factory — which once required just a high school education — now require an associate's degree.
As David Cole, chairman emeritus for the Ann Arbor-based Center for Automotive Research, recently told me: “There’s no factory jobs for high school dropouts."
Haglund's report cites reports indicating that about 27 percent of Michigan residents hold a four-year college degree or higher. For the rest of the nation, it's 31 percent.
We need more college graduates. But college isn't getting any cheaper.
In fact, Gov. Rick Snyder is recommending that the state Legislature slash higher education funding by 15 percent to 22 percent.
The Michigan Legislature, which is controlled by Republicans, is likely to adopt something similar to Snyder's proposal.
So, tell me: Can Michigan boost the skills of its unemployed workers without committing more funds to higher education?
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
Basic Bob
Fri, Apr 15, 2011 : 5:02 p.m.
@quitoslady, Those skilled foreign workers will become residents and pay taxes and think what a great country we live in. Isn't that the same way we all got here, moving from another state or country for an opportunity to use our skills to improve our living conditions? If not us, certainly our parents or grandparents.
quitoslady
Fri, Apr 15, 2011 : 3:04 p.m.
No problem for Snyder as he has plans to bring workers that are high skilled from other countries.
Ron Granger
Fri, Apr 15, 2011 : 2:48 p.m.
You don't need a college degree to put widgets in a hole. We are all being scammed when we are forced to pay for, and subsidize, secondary schools. For so many people, a degree is just a piece of paper. Especially if comes from a place that advertises on TV. If our primary education system does its job, people will be able to think and educate themselves. Unfortunately, that isn't what we are teaching and testing for. More than ever in history, the internet makes self-education possible. There are tremendous free resources available. Go take some free courses at MIT online. If you aren't spending hours every night studying, you aren't working hard enough. Turn off the TV. Been to the library lately? For many people, a degree is the height of what they will accomplish. So they make a big deal about it. They surround themselves with other people who have degrees.
braggslaw
Sun, Apr 17, 2011 : 9:57 a.m.
you need theory and practical application experience unless you take the classes I have no idea how you would learn on your own no sandbagging, my opinion
Dcam
Sat, Apr 16, 2011 : 2:04 p.m.
Well...brag, I can give you examples of engineers from both UofM and MichTech that were racking their brains trying to figure out if screws were 10 32nds or 10 24ths, their terms, not mine. Most normal people call them #10-32 and #10-24 screws. The same pair also figured they could plug three 1kw lamps into an outlet connected to a .250kw transformer. They were shocked when they fried the control, they thought it could handle the load. There may be many things that are unique to your needs, but to assume that all those things will be learned in the classroom is stupid. You gave a couple of examples as teasers, but I can give you 100s of sandbag question in return - and bluff you may try, but you can't win. As an example: what's the difference between H13 and P20? If you don't know, don't expect to be hired. Or...more up your alley: what's the difference between TRAFORM and TRANSL, and what's do they do? That's a computer related question, your expertise. Or...what's the boot procedure for a Digital PDP-8e? Old machine, but I like to make sure my people are well-versed in technology and its history.
braggslaw
Fri, Apr 15, 2011 : 11:34 p.m.
Ron did you stay at a Holiday Inn last night? good enough for me
braggslaw
Fri, Apr 15, 2011 : 11:05 p.m.
the next time I hire an elecrochemist Iwon't check to see if he has a degree.....not...... the only way to guarantee a hire understands kalman filters, fuzzy logic etc. is to see if he has actually been taught....I will not take somebody's word
Dcam
Fri, Apr 15, 2011 : 5:11 p.m.
Richard Branson recently gave a talk about entrepreneurship and innovation, and he says it's not universities that are doing it, in fact, they're often the stumbling blocks. I've said that often myself, and it's true. They spend most of their energy programming people that doing without their leadership is impossible, and then they erect artifical barriers to ensure it. Of course, what does Richard Branson know about such things, being a high school dropout at age 15? Or, for that matter Michael Dell, Bill Gates, and nearly every one of the billionaires who've started great companies in the past three decades - or past century. Dr. David Cole has few real accomplishments of his own, and if it weren't for his UM connections and funding, he'd be lucky to have a job. And yet he speaks for Michigan manufacturing, and the press listens, even though I can prove him wrong on nearly every count - backing it with actual data from the plants themselves, not just spoon-fed corporate propaganda. I'm looking forward to Mr. Haglund's report, and I'm quite sure it will be typical Haglund mouthing what academics and executives tell him. Like when he parroted UM's saying manufacturing should be eliminated in Michigan as quickly as possible because it was too unskilled to pay the state's needs. Employers today want plug and play employees, without an investment of their own in them. A monolithic workforce is not an innovative nor productive one.
Edward R Murrow's Ghost
Fri, Apr 15, 2011 : 3:05 p.m.
You are absolutely correct, Ron. And Braggslaw unwittingly explains why in a reply to you above: A degree is a lazy person's way of separating the wheat from the chaff in the hiring process--never mind the fact that doing so will cause the loss of plenty of valuable wheat while keeping much that is useless chaff. The idea behind a university education has changed in the last 50 years. It has gone from being a search for knowledge and understanding to being a very expensive job training program except that few people are trained for a job when they graduate. But employers, for reasons that remain a mystery, will hire an unskilled university graduate before they hire a highly skilled person who does not have that piece of paper. So much for the myth that businessmen make logical decisions. Good Night and Good Luck
clownfish
Fri, Apr 15, 2011 : 2:46 p.m.
No doubt more education results in a better chance for employment. However, having spent some time in the unemployment line and at MI Works, i can tell you there are a lot of people out there that are never going to be able to calibrate a transmission, design batteries, write Linux code etc. That is no excuse for not educating ourselves to the best of our abilities but we need to have jobs for those that are...can I say it?...not so smart. These jobs don't need to pay 60k a year for low skilled work, but they do need to pay enough to live on. When we decided to move our low skilled work overseas we should have had an open discussion of what would happen to all of those former employees. A lot of people want to move those jobs to cheaper lands, but do not want to pay for more education, unemployment for periods needed to retrain, do not want to subsidize medial care (even though they do it now every time they visit a doctor anyway). Nothing is free, including moving jobs overseas to increase stock prices.
Ron Granger
Fri, Apr 15, 2011 : 2:35 p.m.
A lot of companies in Michigan are looking for deals. They expect to get people cheap. They think we're all stuck here with mortgages, desperate, etc. And then they complain about the quality of the candidates. The fact is, top companies will pay top talent to leave Michigan. You want me to work in Michigan? Don't expect to pay me less - instead, expect to pay me more for "combat" pay. Because buying a house here is a dead-end prospect, etc. Pay me more because I am going to be taxed more by a state government desperate to raise revenue. Pay me more because, if your company flounders, I won't have as many choices in the area. These days, people can work remotely. Or they can just move to states with lower taxes. Places like Washington State have no income tax. A few years back, in a sickening middle of the night backroom deal that was negotiated in secret (open government? what open government?), the Granholm administration passed a service tax that impacted technology consultants (and many others). Suddenly, we were expected to charge our out of state (or out of country) customers sales tax - or we had to cover it ourselves. And that was on top of state income tax. It's stuff like that, Michigan.
braggslaw
Fri, Apr 15, 2011 : 12:08 p.m.
10's o 1000's of job openings are unfilled in mich due to the lack of qualified people If you can: 1 program linux 2 calibrate an engine 3 calibrate a transmission 4. program a plc 5 work with complex IT sysytem 6. do accounting 7. design battery packs 8. design electric motors etc. etc. you have a job waiting for you alas, too many major in things they like rather than subjects that are marketable
DonBee
Fri, Apr 15, 2011 : 4:37 p.m.
So long as you are not a 99er, you are under the age of 50.
John of Saline
Fri, Apr 15, 2011 : 1:57 p.m.
You're telling me that a double degree in fine art and philosophy isn't the ticket to a career? (Yes, I know someone who did that.)
Fred Steadman
Fri, Apr 15, 2011 : 8:22 a.m.
Well lets see..... Corporations for the past 12 to 15 years have been playing a game of Acquisition - laying off to make an false impression of increased profitability - Filling rolls with its lower ranked employees ( I like to call the "many hat syndrome") and then downsizing to the point that there is no chance of recovery before liquidation. I have seen it and lived it. I have been on both sides of the acquisition table and know the game quite well. What am i getting at? Well, I have watched time and time again educated people lose there Jobs and leave the state. I have watched many many people with little education run company systems and gain vast experience. I have little formal education YET: I have traveled the globe training foreign distributors on Highly complex lab equipment ( application scientist job) I have had 12 direct reports (middle management) I have designed complex laser/optical apparatus for research facilities. (Engineer) I have set up and run FTP servers and MSQL data sources for information distribution. (High end IT - MIS) I have written white papers for DNA research equipment. (doctor) I have written and illustrated scores of End user and Service manuals (Tech Writer) I have written software applications to support highly complex research equipment Yes... We are unskilled I will be Lucky if I can find a Job when my current position moves to Baltimore in July.
braggslaw
Fri, Apr 15, 2011 : 12:09 p.m.
get a degree and you will have the paper to fit your skills it is the only way for employers to filter
CynicA2
Fri, Apr 15, 2011 : 3:47 a.m.
@ Zip However many jobs are here, whichever way you want to count them, one thing is clear... there are far more individuals who want jobs, than are able to find them. So the young ones pack-up and leave, and the older ones with more ties and commitments here, are either unemployed, underemployed, or "entrepreneurs". I agree with everything you say except for the part about the South. The only real job juggernaut in the South is Texas, though some consider it a part of the West, not the South. I wonder how many more people Michigan would have lost in the census, if everyone who wanted to sell their home and leave, had been able to do so? Quite a few, I bet.
Edward R Murrow's Ghost
Fri, Apr 15, 2011 : 2:20 a.m.
I'm certain that gutting school funding will solve this problem. Better days are just around the corner! Good Night and Good Luck
KJMClark
Fri, Apr 15, 2011 : 1:12 a.m.
If we want to retain college grads, why don't we give tax credits to the recent college grads themselves or the companies that hire them? None of the poll questions get at that. All of the options make it easier/cheaper for people to get more education, but do nothing to make sure they stay here. Maybe we could give a tax break for graduates to help them pay off their loans as long as they live in Michigan? I grew up in one of the working class suburbs of Detroit, and DonBee's right about the attitude. If you were a smart kid headed for college, you were probably a social outcast. I know I and my friends were. But when you can get a high school diploma and end up with a vacation house on a lake, a nice house in a suburb, and some motor toys, why bother going to college?
zip the cat
Fri, Apr 15, 2011 : 1:01 a.m.
Big deal, Michigans problem isint lack of skilled workers its problem is lack of jobs period As for your college education. I know people with a 4 yr degree that are flipping burgers at local fast food joints,or working as a laborer for a landscape frim. Time to kiss michigan goodbye and go south for some real jobs
braggslaw
Fri, Apr 15, 2011 : 6:57 p.m.
growth is the key(and productivity) there will be some who will not or cannot adjust to changes in the economy balance that with a 2 year period on the dole and you wind up with greater unemployment
Edward R Murrow's Ghost
Fri, Apr 15, 2011 : 12:52 p.m.
"growth and economic activity are moving away from certain regions that penalize businesses" The state unemployment rates you cite notwithstanding. Good Night and Good Luck
braggslaw
Fri, Apr 15, 2011 : 12:19 p.m.
economic growth by state <a href="http://www.statemaster.com/graph/eco_eco_gro-economy-economic-growth" rel='nofollow'>http://www.statemaster.com/graph/eco_eco_gro-economy-economic-growth</a> midwest ranks last south and west are where companies are moving growth and economic activity are moving away from certain regions that penalize businesses
braggslaw
Fri, Apr 15, 2011 : 12:12 p.m.
1 NORTH DAKOTA 3.7 2 NEBRASKA 4.3 3 SOUTH DAKOTA 4.8 4 NEW HAMPSHIRE 5.4 5 VERMONT 5.6 6 IOWA 6.1 7 WYOMING 6.2 8 HAWAII 6.3 9 VIRGINIA 6.4 10 OKLAHOMA 6.5 11 MINNESOTA 6.7 12 KANSAS 6.8 13 MARYLAND 7.1 14 MONTANA 7.4 14 WISCONSIN 7.4 16 MAINE 7.5 17 ALASKA 7.6 18 UTAH 7.7 19 ARKANSAS 7.8 20 LOUISIANA 7.9 21 PENNSYLVANIA 8.0 22 MASSACHUSETTS 8.2 22 NEW YORK 8.2 22 TEXAS 8.2 25 DELAWARE 8.5 26 NEW MEXICO 8.7 27 INDIANA 8.8 28 ILLINOIS 8.9 29 CONNECTICUT 9.0 30 WASHINGTON 9.1 31 NEW JERSEY 9.2 31 OHIO 9.2 33 ALABAMA 9.3 33 COLORADO 9.3 35 MISSOURI 9.4 35 WEST VIRGINIA 9.4 37 DISTRICT OF COLUMBIA 9.5 38 ARIZONA 9.6 38 TENNESSEE 9.6 40 IDAHO 9.7 40 NORTH CAROLINA 9.7 42 GEORGIA 10.2 42 MISSISSIPPI 10.2 42 OREGON 10.2 42 SOUTH CAROLINA 10.2 46 KENTUCKY 10.4 46 MICHIGAN 10.4 48 RHODE ISLAND 11.2 49 FLORIDA 11.5 50 CALIFORNIA 12.2 51 NEVADA 13
braggslaw
Fri, Apr 15, 2011 : 12:11 p.m.
I know a few drama and poly sci grads serving tables but that was the bed they made not all degrees are created equal
Edward R Murrow's Ghost
Fri, Apr 15, 2011 : 2:31 a.m.
Ahh yes. Those "right to work" states in the South where all the jobs are. Like Florida with the 49th worst unemployment rate (note that gov't stats include D.C., so there are 51 "states") Like Kentucky, which is 46th. Or South Carolina, Mississippi, and Georgia (tied for 42), Or North Carolina (tied for 40 with Idaho) Or Tennessee (tied for 38 with Arizona). All of the above, including the non-southern states in parentheses, are "right to work" states. Add to this august list the State of Nevada, another "right to work" state, which is 51. So, of the 14 states with the worst unemployment rate, 10 are "right to work" and 7 of those are in the South. Yeah, the South has it figured out. Yeah, "right to work" is the solution. That is, if you believe in fairy tales. Sources: <a href="http://www.bls.gov/web/laus/laumstrk.htm" rel='nofollow'>http://www.bls.gov/web/laus/laumstrk.htm</a> and <a href="http://www.nrtw.org/rtws.htm" rel='nofollow'>http://www.nrtw.org/rtws.htm</a> Good Night and Good Luck
Technojunkie
Fri, Apr 15, 2011 : 12:01 a.m.
"Boost funding for higher education and public schools": No, we have too many unqualified students in universities already. Too many of our best and brightest have fled Michigan and taken their children with them. If EMU went back to their admissions standards of 20 years ago they'd lose several thousand students. Even with the massive increase in foreign students they struggle to fill seats. "Ramp up worker retraining programs": No, I've yet to read about any such programs that are effective. They're for grandstanding politicians who want to appear to Do Something. "Lower tuition by cutting employee compensation at schools and universities": I'd go after the stupidly high administrative overhead first. Get rid of the ethnic grievances programs too. "Increase federal need-based scholarships": Schools hike tuition and bloat overhead to fit available money. The only way out that the state government has control over is to make Michigan a very simple and low-stress place to do business, which is what Gov. Snyder appears to be attempting. No more wasting time with the insanely complex MBT, just write a check for 6% and get back to productive work. Etc. It's going to take a long time to reverse the damage but it is possible.
goodthoughts
Thu, Apr 14, 2011 : 10:28 p.m.
I know many people with Higher Education AND experience who cannot find jobs. If the jobs are not there to begin with people leave the state after graduation. It is sometimes called 'The Great Brain Drain' and it is a vicious cycle.. Cuts to Higher Ed...No Job growth...a recipe for the same ole same ole
Tom Joad
Thu, Apr 14, 2011 : 10 p.m.
There's one place your degree in comp lit won't get you a job anymore: Borders
Atticus F.
Thu, Apr 14, 2011 : 8:59 p.m.
Don't worry, the jobs should be pouring in at any moment...After all, Now that Snyder has but billions back into the offshore bank accounts of his wealthy buddies, it's only a matter of time before they start hireing people in masses.
DonBee
Thu, Apr 14, 2011 : 11:08 p.m.
Atticus F - Over the last month more friends of mine who are 99'ers have had job interviews than at any time in the last 3 years. Maybe, just maybe things are getting better.
cinnabar7071
Thu, Apr 14, 2011 : 9:31 p.m.
So bitter!
DonBee
Thu, Apr 14, 2011 : 8:39 p.m.
In my circle of friends, almost all of them have college degrees, most have one or more masters degrees. Most are technical, almost all have 20 years of experience in technical jobs. Most are unemployed or under employed (e.g. working temp work or part time). Finding educated workers in the state is not that hard, as IBM and GE have determined. The market is getting better, but there are a large number of talented, educated, motivated people still looking for work in the state. The lack of education is a problem for many. Easy to get UAW jobs during the 1980's and early 1990's setup a feeling that all you needed was a friend in the UAW and you had it made. We now know that is not true, but we have 2 generations of households that did not value education. Fixing will take time and will not be fixed by just throwing money at it. Attitudes need to change.
CynicA2
Fri, Apr 15, 2011 : 6:07 p.m.
Not hard to believe... government numbers probably understate unemployment across the board. Politicians of all stripes have a vested interest in minimizing them. Just because some "official" government agency puts it out, doesn't make it true.
Edward R Murrow's Ghost
Fri, Apr 15, 2011 : 12:40 p.m.
Yeah, I noticed that. The most recent data I can find for U6 for Michigan is 21.3%. Source: <a href="http://www.bls.gov/lau/stalt10q3.htm" rel='nofollow'>http://www.bls.gov/lau/stalt10q3.htm</a> That remains some circle--a group of friends whose U6 is, apparently, approaching three times that of the state. Good Night and Good Luck
Craig Lounsbury
Fri, Apr 15, 2011 : 12:22 p.m.
"So the unemployment rate in your "circle of friends" is > 50%?" thats not what he wrote ERMG . He wrote "Most are unemployed or under employed (e.g. working temp work or part time)." Please note the "or underemployed" . I have a friend who is an unemployed automotive engineer. It wouldn't surprise me if in his circle of friends unemployment or underemployment is at or near that number.
Edward R Murrow's Ghost
Fri, Apr 15, 2011 : 2:11 a.m.
"In my circle of friends, almost all of them have college degrees, most have one or more masters degrees. Most are technical, almost all have 20 years of experience in technical jobs." In a county whose unemployment rate is 6.9%, "most" of your friends are unemployed or underemployed? In my world, "most" > 50%. So the unemployment rate in your "circle of friends" is > 50%? That must be some circle. Source: <a href="http://www.google.com/publicdata?ds=usunemployment&met=unemployment_rate&idim=county:CN261610&dl=en&hl=en&q=washtenaw+county+unemployment+rate" rel='nofollow'>http://www.google.com/publicdata?ds=usunemployment&met=unemployment_rate&idim=county:CN261610&dl=en&hl=en&q=washtenaw+county+unemployment+rate</a> Good Night and Good Luck
runbum03
Thu, Apr 14, 2011 : 8:29 p.m.
"We need more college graduates." Why? So they can leave Michigan? In what areas? Of course, math and science grads are needed worldwide, but each year there are fewer and fewer. Even in China there are over 60 job seekers for each open degreed position. Is that who you want to compete with? How about more private tech schools? More opportunities for certification? More Just-in-Time/On-the-job training? Unpaid apprenticeships? A lower minimum wage for training? We have a mis-allocation of resources that is skewed toward higher ed, but misses the boat for 84% of Michigan residents. How about turning half of Michigan's State colleges into employer training centers for "marketable" short term Certifications? A hot area in the next few year or so is metrology - needed in both the nuclear and aviation industries. Why are there no world class welding or diesel mechanic schools in Michigan? We will need 500,000 new welders in a few years. That's a no-brainer. Diesel mechanics, too, will be needed sometime in the future to replace the current workforce. Stop pushing the lie and false promises of higher ed. Everyone cannot be the big Cheese - nor do most of us want a target on our backs all day long. Education is a life-long pursuit, a point missed by many degree holders today.
clownfish
Fri, Apr 15, 2011 : 2:34 p.m.
WCC has a wonderful welding program. Where are these 500,000 welding jobs coming from?
Tom Joad
Thu, Apr 14, 2011 : 8:19 p.m.
I see rows of Michigan's finest curled up to a bar stool or out side smoking a cigarette...yeah, great state
Tom Joad
Thu, Apr 14, 2011 : 8:09 p.m.
Snyder has turned out to be as big a bamboozler as Obama. Told ya so...
Macabre Sunset
Thu, Apr 14, 2011 : 7:49 p.m.
Question for those of you with teenagers rapidly approaching independence? If the state won't pay for your child's college education, will you? Or would you prefer, instead, to purchase something else?
Macabre Sunset
Thu, Apr 14, 2011 : 10:37 p.m.
Having a child is a responsibility. Kid first, corvette later. Sounds like the right formula.
cinnabar7071
Thu, Apr 14, 2011 : 9:28 p.m.
It's a done deal Mac. I started saving for my kids college at birth, and now he's 11 and all he has to worry about is his grades so he CAN get into a good college. Now if the states wants to pay I will be glad to stimulate the ecom. by buying myself a corvette. Life is good when you work hard and make the right decisions.
Ignatz
Thu, Apr 14, 2011 : 7:19 p.m.
I didn't see anything addressing the middle ground of education/training; technical schools. I listened to a report about a great demand for automotive technicians. I'm sure there are other like needs out there. As far as higher education goes, it looks like the more you already have, the more you'll get. This is the new Michigan way.