According to the U.S. Department of Labor’s numbers for February, high unemployment continues to be a problem vexing our economy. In recent weeks we have seen mixed signals about the economic recovery. Some have been encouraging, such as a pronounced increase in service sector jobs in February. And some have caused concern, such as the record drop in new home sales during the same month.
One encouraging sign comes from the Institute of Supply Management (ISM). The ISM reported that eleven of 18 manufacturing industries were expanding in February, led by machinery, paper and apparel. From an employment perspective, this could indicate that some manufacturers might be looking to fill positions that were eliminated during the height of the recession in anticipation of increased demand for their goods in coming months.
While it is good news that manufacturers may be in the market for new employees, it does raise the issue of the availability of qualified candidates. As I have written in recent months, I believe the country faces what I call a “skills recession.” This means many jobs are going unfilled despite the weak economy because employers in a variety of areas, including advanced manufacturing, simply can’t find qualified candidates.
Examples of this include Ace Clearwater Enterprises, a California-based parts supplier for the aerospace and power generation industries that has had trouble keeping positions filled because of a lack of qualified candidates, and Spectrum Lighting, a Massachusetts-based manufacturer of energy-efficient lighting fixtures that is having problems finding job candidates with the skills necessary to work with the newer technologies involved.
A way to address this challenge is by adopting a more demand-driven approach to workforce development, where employers work closely with the workforce development community to better prepare workers with the skills needed to compete in today’s global economy. An example of this approach is the Energy Providers Coalition for Education (EPCE), a national alliance developed to address the projected retirements of energy workers and the need for replacement workers with appropriate skills. Expanding beyond standard job training, EPCE’s online programs are contextualized credit-bearing courses leading to certificates, associate degrees and bachelor’s degrees. These programs offer interested candidates and current workers technical skills as well as academic knowledge needed for industry career paths in electric utilities, nuclear power, and gas distribution.
We need to incorporate this type of demand-driven thinking into the entire workforce development system, sooner rather than later. A first step comes with President Obama’s efforts to promote job creation. It would be helpful for any initiative to link job creation efforts with additional training for more long-term skilled careers. With the Workforce Investment Act (WIA) up for renewal this year, now is the time for a strategic approach that marries job creation, training and education for a skilled workforce that allows America to compete with the rest of the world in the next decade and for decades to come.
Julian L. Alssid is the founder and executive director of Workforce Strategy Center, a nonprofit organization that advises leaders who seek to make education and workforce development more responsive to the economy.
