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Lack of skilled workers threatens recovery: Manpower

NEW YORK | Wed Aug 25, 2010 12:00pm EDT

NEW YORK (Reuters) - Workers with specialized skills like electricians, carpenters and welders are in critically short supply in many large economies, a shortfall that marks another obstacle to the global economic recovery, a research paper by Manpower Inc (MAN.N) concludes.

"It becomes a real choke-point in future economic growth," Manpower Chief Executive Jeff Joerres said. "We believe strongly this is really an issue in the labor market."

The global staffing and employment services company says employers, governments and trade groups need to collaborate on strategic migration policies that can alleviate such worker shortages. Skilled work is usually specific to a given location: the work cannot move, so the workers have to.

The shortage of skilled workers is the No. 1 or No. 2 hiring challenge in six of the 10 biggest economies, Manpower found in a recent survey of 35,000 employers. Skilled trades were the top area of shortage in 10 of 17 European countries, according to the survey.

While the short-term way to address to shortages is to embrace migration, the long-term solution is to change attitudes toward skilled trades, Manpower argues.

Since the 1970s, parents have been told that a university degree -- and the entry it affords into the so-called knowledge economy -- was the only track to a financially secure profession. But all of the skilled trades offer a career path with an almost assured income, Joerres said, and make it possible to open one's own business.

In the United States, recession and persistent high unemployment may lead parents and young people entering the workforce to reconsider their options.

WELDERS NEEDED

The skilled trades category also includes jobs like bricklayers, cabinet makers, plumbers and butchers, jobs that typically require a specialist's certification.

Older, experienced workers are retiring and their younger replacements often do not have the right training because their schools are out of touch with modern business needs. Also contributing to the shortage is social stigma attached to such work, Manpower argues in its paper published on Wednesday.

A poll of 15-year-olds by the Organization for Economic Cooperation and Development found only one in 10 American teenagers see themselves in a blue-collar job at age 30. The proportion was even lower in Japan.

Education could address that stigma. Students should be reminded that blue-collar work can be lucrative: skilled plumbers can make upwards of $75,000 a year, Manpower argues.

Overall, Manpower's fifth annual talent shortage survey found 31 percent of employers worldwide are having difficulty filling positions due to the lack of suitable workers available in their markets, up one percentage point over last year.

for a link to Manpower's research papers, click on: here

AN EMOTIVE ISSUE

Although the proportion of employers seeing shortages is still below pre-recession levels, shortages in some countries are more critical than the global average.

Majorities of those surveyed in Poland, Singapore, Argentina and Brazil reported shortages. In Japan, 76 percent had trouble finding the right workers, the highest reading among the 36 countries and territories.

Examples of successful, targeted migration include an Ohio shipbuilder that brought in experienced workers from Mexico and Croatia, and a French metal-parts maker that hired Manpower to find welders in Poland.

Obstacles to such migration include differing standards for certification in skilled trades, as well as political barriers to immigration, which remains an "emotive" subject in many countries, Manpower's CEO said. Japanese employers, for example, have difficulty attracting skilled workers.

Sweden, on the other hand, is innovative and aggressive about strategic migration, for example by removing obstacles to workers being recertified in their specialty, Joerres said.

(Reporting by Nick Zieminski, editing by Dave Zimmerman)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (3)
DoctorNo wrote:
In what century is Manpower, the self-proclaimed Experts, do they mean? I’m sure the U.S. has plenty of residential carpenters, commercial builders and welders that were laid off.

Aug 25, 2010 10:57pm EDT  --  Report as abuse
zurc wrote:
Hey Nick, now that you wrote such a one sided piece and got your info from of all places, Manpower. Now go find out from all the major unions what their layoff rolls are, or how many men on the bench, or how many left the union due to lack of work for too long, or how many either lost or are losing their home, who lost their health coverage. Really Nick, you cant possibly be that ignorant to the reality of what is going on here?!?! Ask Jeff from Manpower the companies real views on “migration” and the work place because I’ll tell you his true view. It’s bring everyone over here, pay them a third making them happy due to their acceptance of substandard living conditions which are great compared to life back home while still charging as if they are still paying the prevailing wage, while the American worker is left to work menial jobs thus eliminating the suffering & dwindling middle class finally. If this weren’t true why is it that when we call an american company customer service its in Bangladesh? The reason is Jeffs migration isn’t happening fast enough so the cost & greed of operating a division in a foreign country maximizes profits to such a high degree they are blinded and fail to realize their distorted view of the American dream has killed the true meaning of such originally written by James Truslow Adams in 1931 and I quote:

It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position.

Nick, I once again ask that when you write please be responsible and get both sides. I could go on about this and debate you endlessly on this topic however I have to read the 20 page brochure I just received from NYS dept. of Labor titled “navigating the difficult interview”. I have been unemployed since Feb., we’re losing our home, filing for bankruptcy, barely making ends meet, and I used to be a blue collar worker but the physical aspects destroyed my back, knee & arthritis at 41 yrs. of age. So I was offered an office job non-union, no bene’s, pension, or anything else. I took it to eat, well five yrs later I was replaced by a $10.00 per. hr. kid. Please tell Jeff from Manpower as well as the fine people like him that it’s people like him that despise public welfare and other social programs but yet the way they conduct business only exacerbates the problem thus creating a larger need for such programs at a much greater rate. In short be careful what you ask for because you might just get it!

Aug 25, 2010 11:03pm EDT  --  Report as abuse
Jules717 wrote:
What Manpower should be saying is that there is a lack of skilled trades people who want to work for low pay on a temporary basis. I work for a vocational school that trains electricians (many of whom are former welders who can’t find welding jobs), and they’re all having a hard time finding any work. They complain that all the tradespeople on the big jobs are being brought in from out of state–probably by companies like Manpower.

Are the staffing agencies trying to get H1B visas for skilled tradespeople? Because I’m just trying to figure out what their motive is in spreading this lie that I keep seeing everywhere.

Aug 27, 2010 9:08am EDT  --  Report as abuse
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