MICHIGAN ECONOMIC SUMMIT
Gov. Rick Snyder's economic summit: 5 jobs-related issues facing employers, educators and developers
(Gallery by Tanya Moutzalias)
DETROIT, MI — Gov. Rick Snyder will kick off his first economic summit this morning with employers, educators and economic development leaders discussing the gap between open jobs and available talent.
“This is a hands-on, working summit that will prepare Michigan for the opportunities that await in our global economy,” Snyder said in a statement. “It will challenge our business, education and economic development leaders to focus on new ways of providing meaningful job opportunities as we help meet the pressing talent needs of our employers.”
Snyder wants to make sure the state is developing a talented workforce with the skills needed to meet employers’ labor demands. (Hear more from Snyder on this issue here.) This week's summit is meant to tie into an education summit in April.
He points to the more than 63,000 open positions on mitalent.org and contends the state’s high unemployment is due in part to a lack of talented workers available for open positions. But some economists question that, arguing wages should be increasing if there really is a talent shortage, according to Bridge Magazine.
A recent New York Times report also pointed to a “hiring paralysis” in some industries that are hesitant to fill open jobs. At the summit beginning today in Detroit, industry leaders from across 10 economic regions in Michigan will gather to discuss whether this structural skills gap exists and what can be done to put more of the state’s residents to work.
The United Auto Workers is holding a protest at Cobo Center Monday morning to let Snyder know that "working people are suffering." UAW members and others remain angry with Snyder for signing right-to-work legislation last year.
Reporters from MLive.com and AnnArbor.com will be at the Cobo Center in Detroit for the summit on Monday and Tuesday, bringing you updates throughout each day.
Check our live feed below for the latest news coming from the invite-only event, which includes a series of speakers and breakout brainstorming sessions grouped by economic region and industry.
As we approach the conference, here are five things to keep in mind as we explore Michigan’s efforts to make sure residents find jobs and businesses have the talent they need to grow.
1. Unemployment: While Michigan’s unemployment rate has come down from 14.2 percent in August 2009, it still remained at 8.9 percent in January. The rate has been stagnant for the past few months and was the 7th worst in a December list that included all 50 states and Washington, D.C.
Michigan also struggles with long term unemployment — the average duration of unemployment was 42 weeks last year, according to state labor statistics.
2. Workforce trends: The jobless rate doesn’t tell the whole story. Compared to August 2009, the number of unemployed workers has dropped by 271,000, but the number of employed workers has risen by only 78,000. Many people have given up looking for work, gone back to school, retired or otherwise left the workforce. Michigan in 2011 had the lowest employment-to-population ratio since 1982.
3. Income and wages: Michigan’s per capita personal income rose faster than most other states in 2011, but total earnings still remained below pre-recessionary levels. (2012 state personal income will be released March 27.) More than a quarter ofMichigan’s workers are in low-wage jobs, a problem that continues to hinder the state’s economic revival. It will be interesting to see how many available jobs in Michigan are higher wage jobs.
4. Aging workforce: Almost one in five workers in Michigan are 55 or older. A flux ofbaby boomer retirements will create job demand. At the same time, young people, especially those with college degrees, continue to leave the state. What plans do industry leaders have to keep and attract a young talented workforce?
5. Economic development: The lack of a pool of qualified available talent can hinder a region’s overall economic development.
"Talent is the key driver in business expansion and location decisions," said Michael Finney, president and CEO of the Michigan Economic Development Corp. He said it's expensive to recruit workers from outside an employer's area, so it's important for Michigan to have a workforce that’s ready to meet employers' needs.
"Talent is the key driver in business expansion and location decisions," said Michael Finney, president and CEO of the Michigan Economic Development Corp. He said it's expensive to recruit workers from outside an employer's area, so it's important for Michigan to have a workforce that’s ready to meet employers' needs.
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