Examples of shortages abound in the health care, trucking, and manufacturing industries, but the struggle to find workers does not appear to be widespread. In fact, the difficulties may be limited to hiring for certain occupations, or in certain industries, or in certain regions. Easing the difficulties in finding skilled workers will require adjustments to the expectations of both employers and job seekers. Adjusting isn't going to be easy, which is why businesses' struggle to find skilled workers is one of the key workforce challenges facing Oregon.
One reason is that the industries and occupations that need workers may not match up with the education or experience of recent graduates and the unemployed. In addition, the long-term unemployed may experience attrition in skills, or have relatively dated skills in rapidly changing industries.
Businesses hiring for some occupations and in some industries may also experience continual difficulty finding workers if the conditions of the job - such as long hours, high stress, or low pay relative to a similar job elsewhere - are unfavorable. Some employers may be limiting their supply of potential employees by only hiring workers who are already employed. Earlier this year the Oregon Legislature passed a law banning discrimination against the unemployed in job advertisements.
There's also a structural consideration: there could be available jobs in Medford, but qualified workers in La Grande or Klamath Falls may not be able to sell their homes to move for those jobs, even if they wanted to do so.
|Top 20 Occupations Sorted by Vacancies 60+ Days, Oregon Statewide, Fall 2011|
|Occupational Title||Vacancy 60+ Days||Minimum Education Requirement1|
|Personal Care and Service Workers, All Other||566||Short-term on-the-job training|
|Retail Salespersons||392||Short-term on-the-job training|
|Manicurists and Pedicurists||261||Postsecondary training|
|Massage Therapists||218||Postsecondary training|
|Heavy and Tractor-Trailer Truck Drivers||196||Postsecondary training|
|Cashiers||134||Short-term on-the-job training|
|Automotive Service Technicians and Mechanics||105||Postsecondary training|
|First-Line Supervisors of Mechanics, Installers, and Repairers||102||Related work experience|
|Managers, All Other||97||Bachelor's|
|Hairdressers, Hairstylists, and Cosmetologists||80||Postsecondary training|
|Accountants and Auditors||75||Bachelor's|
|Business Operations Specialists, All Other||74||Bachelor's|
|Engineers, All Other||74||Bachelor's|
|Automotive Body and Related Repairers||70||Long-term on-the-job training|
|Bus Drivers, School or Special Client||60||Short-term on-the-job training|
|Medical and Health Services Managers||52||Bachelor's|
|1As identified in the Employment Department's 2010-2020 employment projections|
In addition to educational requirements, there is a desire by employers to hire experienced and trained applicants. This could be contributing to their struggle to find enough workers. The job vacancy survey results showed that nearly three out of four openings required workers to have previous experience. Education may substitute for experience at some jobs, but that's often not the case. Of the vacancies that required a bachelor's degree, 92 percent also required previous experience. Dr. Peter Cappelli of Wharton's Center for Human Resources describes this as a Catch-22 situation for workers - "to get a job, you have to have that job already."
Unlike nearly all other industries, health care continued to add jobs during the recession. With fewer layoffs relative to other industries, there's no large pool of already trained (but unemployed) healthcare practitioners and technicians ready to fill current or future vacancies.
A possible way to help ease the shortage of health care workers is to train unemployed workers from other industries for jobs in health care, and some people do receive such training. But many health care occupations with hard to fill vacancies, such as registered nurses and physical therapists, require years of education and training before a person is qualified for the job. Even while unemployment is high, growing industries like health care will still have a shortage of applicants with the specialized education needed for the available jobs.
This occupation illustrates many aspects of the key workforce challenge at hand. The nature of the work can be difficult. Long-distance routes require extended time away from home, and the job often includes long work hours. Truck drivers must also invest in training, and depending upon the job, the pay may be low. In addition, many employers require drivers with previous experience.
The U.S. Department of Transportation (DOT) recently instituted new regulations for truck drivers in an effort to increase safety by reducing driver fatigue. The new hours of service regulations reduce the maximum work week by 12 hours. Still, truck drivers can work as many as 11 hours per day, or could work up to 82 hours in a seven-day period. New rules also require that drivers take a 30-minute break after eight consecutive hours of driving, and mandate a sleep period between 1:00 a.m. and 5:00 a.m. at least two times per week.
In terms of minimum qualifications, truck drivers need postsecondary training and a commercial driver's license (CDL). A cursory review of online ads in Oregon shows some other requirements for selected truck driving jobs:
- "Able to drive and/or work to the maximum number of hours allowed under DOT Hours of Service Regulations"
- "Ability to seldom lift up to 70 lbs (to apply tire chains). Ability to push/pull up to 148 lbs (connector kingpins, dollies, jiff locks, gates)"
- "Environmental working conditions vary and employee may encounter vibration, noise, odors, and extremes in temperature and wind?occasional exposure to petroleum-based products such as gasoline, diesel fuel, oil, and grease."
- "We get you home every two to three weeks. Need around two years of experience, plus a decent motor vehicle record."
These job postings pay salaries between $35,270 and $38,110 per year. That translates to between $17 and $18 per hour for a 40-hour week, but these jobs would pay closer to $9 per hour at the maximum allowable hours per week. While the conditions and requirements shown here are not fully representative of the occupation as a whole, they do reflect possible reasons that truck driver vacancies could be hard to fill.
A rebound in hiring is also occurring in Oregon's manufacturing industry. When asked by the Oregon Employment Department in the fall of 2011 about their plans for hiring, 14 percent of the manufacturers who responded said they were planning to hire as they expand their operations, and 6 percent said they were going to restore some of their workers laid off during the recession. The share of employers planning to hire was small, but manufacturing had the highest rate for expansionary hiring and the second highest rate for restoration hiring, compared with all other industries.
There are a number of reasons why some manufacturers are having a tough time finding the right workers. It could be a supply issue - the experienced manufacturing workers who were laid off during the recession may no longer be available. They may have taken jobs in other industries and not want to return to manufacturing, or they could have retired or moved away and no longer be part of the local labor pool. In addition, college graduates may be discouraged from pursuing manufacturing careers, or there could be a disconnect between vocational training and on-the-job requirements. It could also be a skills mismatch; the skills that manufacturers are looking for could be different than the skills possessed by people looking for work.
A recent survey of metal manufacturers in Marion, Polk, and Yamhill counties, conducted by the Oregon Employment Department, found that 31 percent had difficulty filling at least one position in 2011. According to many of the manufacturers, the difficulty filling vacancies was a barrier to their companies' growth.
Most survey respondents who reported difficulty filling positions said they struggled because of skills or skills-related deficiencies among job applicants. Besides the lack of technical or soft skills, other common reasons given by manufacturers were a lack of work experience or training among applicants (seeWhat Employers Need, www.qualityinfo.org/pubs/skills/fabmetals.pdf).
Increase recruiting intensity: Employers can increase advertising or search intensity to fill a vacancy. They can screen applicants more quickly and, where possible, try to fit the location of the job to potential hires.
Recruiting intensity may be one of the most cost-effective ways of attracting the right candidates. For example, employers are welcome to use the Oregon Employment Department's free job placement tool iMatchSkills ( www.iMatchSkills.org) to help find applicants that have the skills they need.
A team of researchers using establishment-level data from the Job Openings and Labor Turnover Survey found that recruiting intensity fell during the recession, which was not a surprise given the weak labor market. A recruiting intensity index, published in their paper The Establishment-Level Behavior of Vacancies and Hiring, found that recruiting intensity declined 17 percent in 2008 and remained low through 2011, even below the recruiting levels of the 2001 recession.
Expand employee training: Employers may already have the perfect candidate working for them, with a little training. Dr. Cappelli suggests that companies promote from within and provide apprenticeship type training to help get workers up to speed. Current employees already know the ropes and have knowledge that no outsider could have, and filling a vacancy with a current employee lowers recruitment costs.
Apprenticeship type training, which pays new workers less as they learn the required skills, is a traditional way that employers create the skilled workers they need. There is a risk though that the skilled employee may leave for another company once the training is complete, in which case the company loses their investment in that worker and their shortage of workers continues.
Increase wages and benefits: Raising the wages or benefits offered to workers with skills that are in short supply will increase the number of qualified applicants for the vacancy. Of course, it is also likely to be the most costly option. Many employers may not be able to afford to pay enough to attract skilled workers and still remain profitable.
The average hourly wage of the vacancies reported in the 2011 job vacancy survey was $16.58, equal to the median wage earned by all workers covered by Oregon's unemployment insurance system. This suggests that on average, employers are offering wages at the rate people are willing to work for, and reinforces the idea that worker shortages are limited to certain occupations. Businesses need to know what other employers in the field are paying their employees so they can offer competitive wages.
Work with education providers: Businesses with persistent difficulty finding skilled workers can team with community colleges and other education providers to provide courses tailored to the specific needs of the employer. The prospective candidate usually pays the costs of the training, while the employer gets trained applicants who they know have the required skills. According to Dr. Cappelli, the approach also works with current employees where the employer reimburses the cost of tuition, but the workers invest the time, usually outside of work, learning the skills.
There are plenty of examples in Oregon of connecting workforce-related training to the actual needs of businesses. That topic is the subject of the next article in this series, Key Workforce Challenges: Connecting Training to Workforce Needs.