I had a really interesting with talk with one of Ohio's Manufacturing Extension Partnerships (MEPs) the other day. Their relevant work for this story is to industry to connect and train workforce.
Anyway, they were talking about two separate issues they had with specific manufacturers. The first was a company wanted to expand and open up a new facility and create 50-75 jobs in a more rural part of Ohio. But, they decided not to do it because they couldn't fill the jobs (they were $20/hr jobs -- so $40K -- which is certainly livable in a really low cost part of the state). Part of the reason was a slight skills deficiency -- but that's easily overcome. The other part is failed drug tests (a huge problem). In the manufacturing space (for liability purposes), you pretty much need to drug test new employees. In that particular employee pool it's becoming increasingly difficult to find employees that can do that. Which, of course, means that they don't get jobs and it cycles.
The other story -- way more anecdotal -- was that a company was offering a $14/hr job. A single mother took the job, but then had to back out. The reason -- she'd lose HUD subsidies to go along with the other benefits she was getting. She could handle not getting the direct welfare -- the job was worth more -- but total benefits package that she'd lose meant the job was a net loss (barely). The company estimates that it needs to come in at $17/hr to get someone like her (who they wanted). So, presumably they hire someone who isn't quite as benefit-confined. I would have liked to ask why not just go up $3/hr -- or rather, what are your margins and what's the value of someone you really want vs someone you are willing to accept.
But the interesting take I got from that particular MEP was that their are jobs out there -- but there are some real issues that limit the available workforce (which I know are true -- but it was interesting to hear from folks in "the field.").
/s [Anecdotal nonsense]
Anyway, they were talking about two separate issues they had with specific manufacturers. The first was a company wanted to expand and open up a new facility and create 50-75 jobs in a more rural part of Ohio. But, they decided not to do it because they couldn't fill the jobs (they were $20/hr jobs -- so $40K -- which is certainly livable in a really low cost part of the state). Part of the reason was a slight skills deficiency -- but that's easily overcome. The other part is failed drug tests (a huge problem). In the manufacturing space (for liability purposes), you pretty much need to drug test new employees. In that particular employee pool it's becoming increasingly difficult to find employees that can do that. Which, of course, means that they don't get jobs and it cycles.
The other story -- way more anecdotal -- was that a company was offering a $14/hr job. A single mother took the job, but then had to back out. The reason -- she'd lose HUD subsidies to go along with the other benefits she was getting. She could handle not getting the direct welfare -- the job was worth more -- but total benefits package that she'd lose meant the job was a net loss (barely). The company estimates that it needs to come in at $17/hr to get someone like her (who they wanted). So, presumably they hire someone who isn't quite as benefit-confined. I would have liked to ask why not just go up $3/hr -- or rather, what are your margins and what's the value of someone you really want vs someone you are willing to accept.
But the interesting take I got from that particular MEP was that their are jobs out there -- but there are some real issues that limit the available workforce (which I know are true -- but it was interesting to hear from folks in "the field.").
/s [Anecdotal nonsense]
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