January’s national unemployment rate of 8.3 percent is at its lowest level since February 2009, according to the U.S. Bureau of Labor Statistics. Total nonfarm payroll employment rose by 243,000 in January.
Minnesota may have preceded the national gain with good numbers for December as reported last week. Education and health care added 11,000 while professional and business services added 10,000 new jobs leading all other categories by far.
Look for growth in manufacturing
U.S. had large employment gains in leisure and hospitality and manufacturing as well as professional and business services. “Four out of 10 manufacturers (40.2 percent) will add jobs in February, and a net of 20.9 percent of service sector companies will conduct hiring,” the Society for Human Resource Management reported last Thursday. Although there is an “increased difficulty with recruiting key candidates” in January compared to a year ago.
Why do employers report difficulty in hiring for skilled positions?
“It’s a complex issue with so many moving parts,” said Cameron Macht, regional analyst for Minnesota Department of Employment and Economic Development (DEED). Current jobs available like CNC machine operator or welding take a year or two in training. By the time a person is trained, employers have found other ways to do the job or their demand has changed.
“It’s like riding on a rollercoaster. You are getting along in your job with decent pay and some overtime, but then you are laid off for 8 to 10 months. You may decide to get off the roller coaster for the security of benefits at lower pay and lower skill requirements. Also, people may be reluctant to commit $5,000 tuition and the time it takes to retrain while piling up a decent amount of debt.
Manufacturing demand is up in Minnesota
“Employers need welders, machinists and assemblers” according to Julie Redepenning, Business Service Specialist at DEED. Department data show nearly 5,000 machinists in the seven-county metro area with median pay at $21.99 per hour. Outstate pay is closer to $17.70 per hour.
Welders median pay is $20.78 in the metro and closer to $16.70 outstate. There are nearly 3,000 welders in the metro area. Apparently the demand for welders is high in North Dakota with employers reporting 2,030 welders paying a median of $21.16. Before an unemployed welder reading this article moves to North Dakota, be aware starting pay is reported at $13.70. Note: Median pay per hour reported by Minnesota DEED second quarter 2011 and North Dakota Job Service 2010.
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