Manufacturers Urged: Don’t Ignore The Jobless
Joanne Goldstein, the state's labor secretary, was in Worcester last week playing up the collaborative spirit that has enveloped the Central Massachusetts manufacturing sector.
Speaking at the Mass. Manufacturing Extension Partnership (MassMEP)'s annual conference at Worcester Technical High School, Goldstein said more manufacturers today understand the importance of working together to develop a pipeline of young talent who can step in and fill jobs that open up when older workers retire in the decade ahead.
“This wouldn't have happened just several years ago,” Goldstein said. “It's a healthy attitude.”
But Goldstein also had a favor to ask of the manufacturers in attendance that day.
She and her staff have been hearing from unemployed workers who had been in the manufacturing sector for years struggling to find work.
Their skills might be a bit out of date, but with a bit of training, Goldstein said they could be successful workers and “loyal for life.”
“We've seen some reluctance on the part of employers to take that leap to hire someone who is unemployed or perhaps more mature,” she said.
Goldstein asked employers to give those workers a second look, and noted there are state grants to help train new workers.
The Employment Situation
Manufacturing employment in Central Massachusetts and statewide is down about 16 percent since 2007, according to the Executive Office of Labor and Workforce Development (EOLWD).
But the employment numbers don't tell the whole story. Total manufacturing payroll has dropped since 2003 as the number of jobs declined, but only by about 5 percent to $19 billion statewide.
As manufacturing has become more high tech, jobs in the sector have become more desirable. From 2003 to the third quarter of 2012, average weekly wages climbed 35 percent to more than $1,500. Productivity has also climbed steadily.
But those who have been unemployed a while and who don't have up-to-date computer skills on computer numerical control (CNC) machines or other equipment do face a challenge. And they may have to accept that a new job could mean a lower paycheck to start, said Pat Emery, a regional sales manager for Technical Needs in Hudson, a staffing firm for manufacturers.
Settling For Less Money
“He might have to settle for $43,000 instead of $80,000,” Emery said. “The customer is unsure. They're going into a gamble.”
But Emery said his firm, which offers contract employees to manufacturers, makes sure to ask for performance reviews and raises, usually on an annual basis.
He said employers seem to be willing to accept varying skills levels when they have the comfort of contract employment and the lower costs that can come with it.
“In a contract scenario, the employer is a little more lax in his criteria because it's my employee working at his site,” Emery said.
Low Skill? Or High Skill?
Jo-Ann Gladstone, president of Framingham-based Select Staff, said whether or not a manufacturer is willing to accept a lower-skilled hire depends on what the manufacturer does. The more sophisticated the manufacturing process, the more demanding the employer is likely to be. Recently, she said, she has found heavy demand for CNC skills.
“I think it depends on the level,” Gladstone said. “For some positions, they need someone that can go right out of the gate.”
If there's some good news from Gladstone's perspective, she has has noticed a recent uptick in the number of temp workers being hired as full-time employees.
“We started to see that at the end of 2012 and the beginning of 2013,” she said. “It slowed down in February but it's picking up again now.”
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