Report shows 50,000 Iowa jobs unfilled
By Dan Gearino Journal Des Moines Bureauand Dave Dreeszen Journal business editor | Posted: Tuesday, March 18, 2008
DES MOINES -- A new report says roughly 50,000 Iowa jobs are unfilled because of a lack of applicants, a number projected to triple in the near future because of retirements.
The report, from Iowa Workforce Development, is the latest in a series of warnings about a worsening worker shortage.
"The statewide results clearly underscore the need for additional training opportunities for Iowans," said Elisabeth Buck, director of the workforce agency.
A majority of the vacancies are for jobs that require no experience and no post-secondary education. The industries with the greatest needs are services and health care, which together account for more than a third of the vacancies.
However, upcoming retirements are expected to increase the vacancies in jobs that require a college degree or specialized training, such as education services and manufacturing.
Iowa Workforce Development asked 40,000 employers to complete the survey and got about 8,500 responses. The report's authors used the responses to extrapolate the overall employment picture. The authors note that the results may overestimate the shortage because there is a possibility that companies concerned about a shortage were more likely to complete the survey.
And yet, other researchers have said the shortage will be even greater. Peter Fisher, an economist with the Iowa Policy Project, has used Census data to project a shortage of 198,000 workers by 2014.
Some local employers have struggled to find enough workers, particularly in skilled fields.
According to a recent report from Iowa Workforce Development, for example, there were at least 20 open welding positions in the tri-state region, with an average starting wage of $12 per hour.
Malloy Electric isn't waiting for completion of its new service center in Dakota Dunes before adding more local workers.
Malloy's Chris Houwman said the company currently is hiring in departments handling electrical, electronic, motors (both above and below 500 horsepower), gearing and pump repair. The company also needs machinists.
"Our biggest challenge is finding skilled labor," Houwman said. "We've even started looking outside the area."
To help develop the labor force, Houwman said Malloy is working with trade schools and universities, as well as with Western Iowa Tech Community College in Sioux City. The company has hired about six people from WIT in the past six months, he said.
Specialized classes at Northeast Community College's South Sioux City campus also are helping to reverse a shortage of machinists at Beef Products Inc. and welders and Phillips Kiln.
Phillips Kiln, which offers specialized maintenance services for industrial kilns, dryers and coolers, established the on-site training center after experiencing a shortage of maintenance personnel to send into the field. Students spend part of the day in class, then go to work at BPI using its high-tech, programmable machining equipment and working in the machine assembly building.
State Sen. Bill Dotzler, D-Waterloo, said he is disappointed that the Iowa Legislature isn't doing more to remedy the shortage. He co-chaired a special panel last year that looked at the issue and suggested three solutions:
-- Improve the services that help young Iowans find jobs;
-- Expand programs that retrain older workers for new jobs;
-- Find ways to attract more workers from outside Iowa.
"We've got our work cut out for us, and we haven't done enough," Dotzler said.
The Iowa Workforce Development report concludes with a statement about the importance of state-sponsored job training programs: "With an ever growing demand for individuals with technical certificates and associate's degrees, Iowa's community college and universities are poised to successfully assist in preparing Iowans for the careers of tomorrow," the report says.
One of those universities -- the University of Northern Iowa -- helped write the report. The Iowa Association of Business and Industry also participated.
Dan Gearino can be reached at 515-243-0138 and dan.gearino@lee.net.
Journal staff writer Michele Linck also contributed to this story.
BreakoutCurrent job vacancies by industry
Industry % of Respondents Estimated Current Vacancies
Healthcare 11.6% 8,593
Personal Services 12.1% 7,187
Wholesale & Retail Trade 20.7% 6,745
Manufacturing 8.4% 5,363
Administrative Services 3% 4,215
Transportation & Warehousing 3.6% 3,267
Finance, Insurance, & Real Estate 7.6% 2,935
Construction 9.1% 2,354
Professional & Technical Services 6.5% 2,119
Educational Services 4.6% 1,519
Information 2.1% 1,128
Public Administration 5.7% 983
Management 0.8% 823
Agriculture & Mining 1.6% 735
Arts, Entertainment & Recreation 1.5% 400
Utilities 0.9% 152
Total 100% 48,521
Source: Iowa Workforce Development.
The report, from Iowa Workforce Development, is the latest in a series of warnings about a worsening worker shortage.
"The statewide results clearly underscore the need for additional training opportunities for Iowans," said Elisabeth Buck, director of the workforce agency.
A majority of the vacancies are for jobs that require no experience and no post-secondary education. The industries with the greatest needs are services and health care, which together account for more than a third of the vacancies.
However, upcoming retirements are expected to increase the vacancies in jobs that require a college degree or specialized training, such as education services and manufacturing.
Iowa Workforce Development asked 40,000 employers to complete the survey and got about 8,500 responses. The report's authors used the responses to extrapolate the overall employment picture. The authors note that the results may overestimate the shortage because there is a possibility that companies concerned about a shortage were more likely to complete the survey.
And yet, other researchers have said the shortage will be even greater. Peter Fisher, an economist with the Iowa Policy Project, has used Census data to project a shortage of 198,000 workers by 2014.
Some local employers have struggled to find enough workers, particularly in skilled fields.
According to a recent report from Iowa Workforce Development, for example, there were at least 20 open welding positions in the tri-state region, with an average starting wage of $12 per hour.
Malloy Electric isn't waiting for completion of its new service center in Dakota Dunes before adding more local workers.
Malloy's Chris Houwman said the company currently is hiring in departments handling electrical, electronic, motors (both above and below 500 horsepower), gearing and pump repair. The company also needs machinists.
"Our biggest challenge is finding skilled labor," Houwman said. "We've even started looking outside the area."
To help develop the labor force, Houwman said Malloy is working with trade schools and universities, as well as with Western Iowa Tech Community College in Sioux City. The company has hired about six people from WIT in the past six months, he said.
Specialized classes at Northeast Community College's South Sioux City campus also are helping to reverse a shortage of machinists at Beef Products Inc. and welders and Phillips Kiln.
Phillips Kiln, which offers specialized maintenance services for industrial kilns, dryers and coolers, established the on-site training center after experiencing a shortage of maintenance personnel to send into the field. Students spend part of the day in class, then go to work at BPI using its high-tech, programmable machining equipment and working in the machine assembly building.
State Sen. Bill Dotzler, D-Waterloo, said he is disappointed that the Iowa Legislature isn't doing more to remedy the shortage. He co-chaired a special panel last year that looked at the issue and suggested three solutions:
-- Improve the services that help young Iowans find jobs;
-- Expand programs that retrain older workers for new jobs;
-- Find ways to attract more workers from outside Iowa.
"We've got our work cut out for us, and we haven't done enough," Dotzler said.
The Iowa Workforce Development report concludes with a statement about the importance of state-sponsored job training programs: "With an ever growing demand for individuals with technical certificates and associate's degrees, Iowa's community college and universities are poised to successfully assist in preparing Iowans for the careers of tomorrow," the report says.
One of those universities -- the University of Northern Iowa -- helped write the report. The Iowa Association of Business and Industry also participated.
Dan Gearino can be reached at 515-243-0138 and dan.gearino@lee.net.
Journal staff writer Michele Linck also contributed to this story.
BreakoutCurrent job vacancies by industry
Industry % of Respondents Estimated Current Vacancies
Healthcare 11.6% 8,593
Personal Services 12.1% 7,187
Wholesale & Retail Trade 20.7% 6,745
Manufacturing 8.4% 5,363
Administrative Services 3% 4,215
Transportation & Warehousing 3.6% 3,267
Finance, Insurance, & Real Estate 7.6% 2,935
Construction 9.1% 2,354
Professional & Technical Services 6.5% 2,119
Educational Services 4.6% 1,519
Information 2.1% 1,128
Public Administration 5.7% 983
Management 0.8% 823
Agriculture & Mining 1.6% 735
Arts, Entertainment & Recreation 1.5% 400
Utilities 0.9% 152
Total 100% 48,521
Source: Iowa Workforce Development.
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Jim wrote on Mar 18, 2008 11:22 PM:
Think wrote on Mar 18, 2008 8:56 PM:
At least 2-3 places in Rock Valley are always looking, Link in Sioux Center (last add I saw had a sign on bonus), Demco In Boyden, Sioux Automation in Sioux Center is haveing a job fair sometime this week, Rozenboom Machine & Tool is almost always looking, and thats all without opening a paper.
If you want skilled manufacturing, it's all over. "
John wrote on Mar 18, 2008 4:28 PM:
At this point, I'm beginning to wonder if the "shortage" is more about wages, than numbers of people.
What gives? "
Rod wrote on Mar 18, 2008 11:19 AM:
Think wrote on Mar 18, 2008 10:12 AM: