latimes.com/business/la-fi-skill-shortage-20120608,0,3748210.story
Jobs for skilled workers are going unfilled
Filling jobs has been difficult for firms in some industries or certain
parts of the country — particularly for companies seeking skilled workers —
despite high unemployment.
By Ricardo Lopez, Los Angeles Times
5:00 AM PDT, June 8, 2012
With more than 12.7 million Americans unemployed, companies have no trouble
attracting applicants. What's tougher for some firms is finding qualified
workers. Just ask California Steel Industries.
The Fontana steel maker
needs experienced electrical and mechanical technicians to help it make metal
pipes and flat-roll sheets used in construction projects. The pay is good. An
industrial maintenance mechanic can make $64,000 a year plus health benefits. In
good years, company profit-sharing can boost pay by $5,000.
Still,
California Steel is struggling to fill 18 openings.
While these workers
don't need college degrees, they need at least two years of specialized training
plus strong math, reading and writing skills. The plant is loud and filled with
heavy machinery. And because the facility operates 24 hours a day, workers must
rotate shifts, making it even harder to recruit, said Brett Guge, executive vice
president of finance and administration.
"It's been a chronic problem for
many years," Guge said. "You would think it'd be somewhat easier in this
economy."
There's no doubt that the nation's sluggish labor market
continues to favor employers, many of whom are holding back on hiring amid
global uncertainty. In May, the national unemployment rate increased to 8.2%
from 8.1% the previous month. Millions of U.S. workers have been jobless for so
long that they've exhausted their unemployment benefits.
Still, companies
in some industries or certain parts of the country are having difficulty finding
workers. Tighter immigration enforcement has squeezed the nation's agricultural
sector as farmers from Washington state to Georgia scramble to find enough field
hands. Thinly populated North Dakota is so desperate for bodies to keep its oil
boom going that the state's governor has pleaded publicly for out-of-state
workers to relocate there.
In California, where the April unemployment
rate was 10.9%, some renewable energy firms are searching hard for qualified
engineers. So are technology companies in Silicon Valley, where the rush to
produce next-generation mobile and tablet technologies has sparked bidding wars
for top candidates, who can fetch starting salaries from $85,000 to
$100,000.
"Everyone's vying for the same talent," said Shannon Callahan,
a technical talent partner at Andreessen Horowitz, a Menlo Park venture capital
firm. "They're all trying to build c the next great product."
Even firms
that aren't designing the next iPhone are struggling. In a recently released
study by recruiting firm ManpowerGroup, nearly half of U.S. employers surveyed
said they're having trouble filling key jobs despite continued high
unemployment.
Some economists are skeptical about all that griping.
Adjusted for inflation, incomes for most Americans have been stagnant for years.
The recent downturn has given workers even less leverage to demand better pay.
Many companies complaining of a "shortage" of talent simply don't want to pay
more to get it, said Andy Sum, director of the Center for Labor Market Studies
at Northeastern University.
"There are some spot shortages," he said.
"But the norm for the country, though, is a massive [labor] surplus. I've never
seen a surplus this large."
Still, Sum agreed with Manpower's findings
that some high-skill positions in information technology and engineering are
hard to fill. Ditto for skilled trades, which include jobs such as
heavy-equipment operators, electricians, welders and sheet-metal
workers.
Many of those blue-collar workers are starting to retire and
won't be easily replaced, said Stanley Stossel, senior assistant business
manager for the International Brotherhood of Electrical Workers, Local 47, in
Diamond Bar.
"In some ways, the economic downturn staved off the
tsunami," Stossel said. "A lot of people were working a few years longer than
they had planned on."
Machinists and machine operators are also hard to
find. Manufacturing has been a bright spot in a slow recovery, adding almost
half a million jobs nationwide since January 2010.
The average hourly
wage for a manufacturing job is $23.96, according to the Bureau of Labor
Statistics. And some positions pay upward of $31 an hour. Still, experts said a
manufacturing career isn't even on the radar of many U.S. workers. Years of
layoffs and outsourcing of factory jobs to foreign countries have convinced some
that there's no future in it. Others are attracted to white-collar work and
sexier industries such as technology.
To cope, some firms are beefing up
the skills of current employees or partnering with nonprofits and community
colleges to train students for blue-collar jobs.
California Steel
Industries, for example, launched a paid internship program this summer with
Chaffey College in nearby Rancho Cucamonga. Nine electrical technician interns
have been hired so far, Guge said.
Oil refineries in the South Bay have
taken similar steps. Exxon Mobil Corp. and ConocoPhillips are among the
companies working with the nonprofit South Bay Center for Counseling to train
process operators and instrument technicians to monitor refinery
operations.
Graduate Joseph Morales, 24, recently started a job with
Marchem Technologies, a Long Beach chemical plant. He's making $17 and hour to
start, with the prospect of more raises ahead. According to the Bureau of Labor
Statistics, chemical plant operators earn an average of $27.23 an
hour.
"I wanted something more stable," said Morales, whose last job was
selling sporting goods on commission.
In Silicon Valley, the hunt for
workers with skills in mobile software and user-focused applications has gotten
so competitive that some companies have resorted to offbeat recruiting
strategies.
Quixey, a Palo Alto company that has built a search engine
for mobile apps, created a monthly contest to appeal to game-loving techies.
Programmers are invited to solve a bug in a 10-line piece of computer code in 60
seconds. Winners get $100, a sweat shirt — and a follow-up recruitment
email.
"We search the entire nation," said Liron Shapira, Quixey's chief
technology officer. "We're able to find candidates who don't browse job forums
but would be considering opportunities."
The 25-person firm has hired
four full-time engineers and three interns through the challenge.
"Quixey
Challenge is more effective than anything else in beginning the pipeline of
engineers," Shapira said."It appeals to what engineers like to
do."
ricardo.lopez2@latimes.com
Copyright © 2012, Los Angeles Times