WORKFORCE: Region has challenges in finding workforce

• Minnesota Workforce Shortage

Minnesota Workforce Shortage

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For example, the South Dakota Department of Labor and Regulation lists nearly 10,000 job openings in its employment system. Many of those job openings are for skills or professional positions, like welders, engineers and accountants, but fewer than 200 welders, engineers, and accountants are receiving unemployment benefits in South Dakota today.

“This is the single largest barrier keeping our employers from investing more into South Dakota. We have incredible professionals and technicians, but we need more of them,” states Dustin ‘Dusty’ Johnson, Chief of Staff for Gov. Dennis Daugaard. “South Dakota is better positioned than almost any state in the union to come out of these soft economic times, but that will not happen unless we address the workforce challenges facing our state.”

In South Dakota, over the last year, Gov. Daugaard has talked with countless employers about what challenges they face. He’s taken those face-to-face conversations to heart as he’s developed his workforce plan.

“Established Labor Market Information projection methodologies are being used to determine future workforce needs. The South Dakota Department of Labor & Regulation (DLR) also monitors job opening numbers and types,” states Pam Roberts, secretary for the South Dakota Department of Labor and Regulation. “Additionally, the Governor and GOED staff have recently travelled across the state and visited with employers both large and small to discuss their immediate workforce needs. One workforce summit has been held at the regional level for the James River Valley, which brought together business owners, HR staff, state and local government representatives, and education and economic development representatives. We are listening to employers.”

In North Dakota, the state’s economy has been expanding across most sectors and is being led by energy and agriculture, which results in a large increase in job openings posted on the state’s Online Job Opening Report.

Those associated with oil and gas activities include construction and extraction, as well as transportation and metal moving. Then there are the transitional jobs that include food preparation, personal care and sales related jobs.

“With such a strong economy companies are making special accommodations to attract and retain groups that are generally not as attached to the labor market (student aged persons, retirement age persons, persons who may have chosen to be stay at home caregivers, disabled persons,)” states Michael Ziesch, research analyst for Job Service North Dakota. “The contribution of out-of-state job seekers has been important, with interest often times spurred by national media pieces.”

Each of the states have tools that they use to understand what types of jobs are available and where the jobs are going to be.

North Dakota’s latest Jobs Report shows that preliminary estimates indicate North Dakota employment expanded on a year-over-year basis in November. Employers reported an estimated 17,400 more jobs when compared to November 2010, a 4.5 percent gain. The private-industry leaders include Mining & Logging (+4,900), Construction (+3,800), and Professional & Business Services (+2,600). Three of the remaining 10 industries also reported gains of 1,000 or more jobs. Government reported the largest over-the-year decrease in jobs (-1,000).

The Jobs Report is updated monthly using data extracted from the Current Employment Statistics (CES) program. The report is a snapshot of the state's current labor market and summarizes payroll or non-farm employment estimates for North Dakota and its three metro areas (Bismarck, Fargo and Grand Forks).

In Minnesota, employers are looking for quick access to skilled workers, sometimes for short times, due to uncertain short- and long-term business prospects.

WorkForce Centers provide a tremendous amount of useful information for jobseekers – ranging from job counseling to Job Search classes to labor market information to the MinnesotaWorks.Net job bank, and much more.

In the southwest region, the WorkForce Council also created a regional careers website (www.swmncareers.org) to inform jobseekers of occupations in demand from employers in the region; and all WorkForce Center staff have been trained on how to use the different labor market information resources.

“We also work with students and at-risk youth to help them plan for their education and careers and understand labor market information,” says Cameron Macht, southwest Minnesota regional analyst for the Department of Employment and Economic Development (DEED). “In southwest Minnesota, more than 1,800 high school sophomores attend the annual Southwest Minnesota Career Expo to learn about careers in demand in the region.”

Nate Dorr northwest Minnesota regional analyst for DEED, says that the agriculture industry drives the Red River Valley economy. Fargo-Moorhead is the regional center, with health care and education services, but also with IT and other professional services and goods producing.

“We believe the skilled labor supply in Minnesota is critical to the Red River Valley and Fargo’s economic vitality,” Dorr says. “Of course with lakes in Minnesota, people will commute a longer distance to live on a lake in Minnesota, while working a high pay job in Fargo (if they can find one).”

What will the workforce look like in the future?

Johnson states that Gov. Daugaard wants a workforce that is better prepared for the challenges of a modern economy. “The STEM fields and skilled trade positions will play an incredibly important part in the future,” he explains. “States that aren’t paving the way today for that future are going to be left behind.”

Roberts adds, as with nationally, South Dakota’s workforce will continue to age—largely due to the vast number of baby boomers. Those 65 and older made up approximately 15 percent of South Dakota’s population in 2010, and are projected to constitute about 19 percent by 2020, and over 23 percent by 2030.

“Although state population projections by ethnic groups are not available, national projections indicate minorities and immigrants will constitute a larger share of the population,” she says. The same trends can be expected in South Dakota.”

South Dakota’s school age population (those ages 5-17) was estimated at 139,534 in 2010 and is projected to be 144,085 in 2020. That age group is expected to number about 143,284 in 2025, and 141,609 by 2030. Proportionately, those of school age will hold fairly steady over the next 20 years, at 17.7 percent of the population in 2010, 18 percent in 2020, 17.9 percent in 2025, and 17.7 percent of the population by 2030.

In North Dakota, Ziesch believes workers will need some level of post-high school training; STEM skills and soft skills- communication, leadership, independent work, and critical thinking skills will be necessary.

“We are experiencing the influence of out-of-state jobs seekers and immigrants. So, it will likely be more heterogeneous,” he says. “All age cohorts of the workforce have been increasing (4th qtr 2009 vs. same period 2010.)”

The key challenge in workforce is attracting and retaining workers in a competitive environment.

“High demand for oilfield workers is frequently in discussion these days. Individuals of all skill levels are needed,” Ziesch says. “Workers with basic mechanical abilities, a valid driver’s license and a clean record may start at the entry level, but can work their way into more skilled jobs fairly quickly.”

Johnson says one of the key challenges is making sure South Dakota companies can grow and continue to invest in the state.

“A trained workforce is the largest barrier to that growth and investment,” he notes.

Roberts states that working to fulfill South Dakota employers’ workforce needs is a key challenge. “We must effectively use our labor supply to fill high-demand occupations in South Dakota, determine what skills employers are seeking, provide appropriate training, and connect with under-employed workers to retool their skills to match those in demand,” she says.

In southwest Minnesota, the workforce will likely grow older and become more diverse. “The number of white people is declining in the region, while people of other races and origins are increasing,” Macht adds. “Likewise, the number of young adults has been declining, while the number of older adults has been increasing.”

In addition, the key challenges are the size of the labor force; the educational attainment gap in the region’s adult population; and the pay gaps between the region and the Twin Cities metro area.

There are also key changes in northwest Minnesota including an increased demand for specialized training beyond high school, increasing diversification among the labor force, more women graduating college than men, aging labor force and work for retirees, and continued need for entrepreneurs to maintain and grow local economies.

“Small towns continue to lose people to larger regional economic centers (“brain drain” still occurs), and eventually lose services,” Dorr states. “Global pressures force the local labor force to survive on quality and innovation, not commodities or quantity.”

How does collaboration impact workforce?

In building his Workforce Initiative (South Dakota WINS), Gov. Daugaard solicited input from business leaders, education experts, community leaders, and others.

“The workforce problems of the future can’t be addressed without a high degree of collaboration and co-ordination,” Johnson explains.

Roberts adds that the workforce challenges must be addressed in a collaborative manner. “Everyone from a business owner, to a mom, to an economic development specialist has a stake in the game. State agencies, local government, and all levels of educators must work toward common goals,” she notes. “Our youth need to know about the opportunities within our state, so they can make educated decisions about their futures. It is important to identify how to allow our young people to live and work in our state while pursuing a higher education and find ways to connect with South Dakota employers.”

Ziesch adds that collaboration among industry, workforce partners and education is a critical component in building solutions to meet North Dakota’s workforce needs now and in the future. Collaboration enables incumbent workers to stay current with technology and methods, Ziesch notes. “It is critical to strategic planning for the future workforce. It helps our youth understand their North Dakota opportunities for the future and to prepare for their futures,” he says. “You will see this emphasized in efforts to increase access to and participation in STEM activities in the K-12 system; the wisdom of our policy makers in providing programs such as the Workforce Enhancement Grants and TrainND programs to facilitate responsiveness to employer needs; our colleges and universities working hand in hand with industry to identify and develop training opportunities to meet current and future needs.”

Ziesch notes that partners collaborate to ensure a system that works to coordinate existing workforce development activities, identify gaps and facilitate solutions to gaps.

In order to maintain the current workforce, Ziesch says business and industry understands the need to focus on attracting, retaining and expanding workforce. This means making the workplace a place people want to be (attract) and making the workplace a place people want to stay (retain.)

In addition, ‘attract’ and retain’ have similar tools.

Ziesch feels that one tool needed is to address priorities of workers of several generations –flexible work schedules, day care, helping workers to deal with housing issues in the oilfields, encouraging innovative thinking and leadership, telecommute when possible, competitive pay and benefits, training opportunities and opportunities for growth in the workplace.

Another is expanding the skills of the workforce through training and career development opportunities – critical to maintaining business competitiveness and important to attracting and retaining a workforce.

Roberts says there are certainly some best practices occurring, but overall, most employers in South Dakota have a history of treating their employees fairly.

“Retention is always an issue, but it isn’t our biggest challenge at this time. Growth is our challenge, and it’s a great challenge to have,” she says.

Tags: economy