addressing worker shortages in the skilled trades

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SKILLED TRADES ADDRESSING WORKER SHORTAGES The popularity of America’s skilled trade careers has been in steady decline for the past few generations, and industries that have relied on American workers across the country are now feeling the effects of that. Skilled trades encompass many careers, including welding, pipefitting, carpentry, HVAC, etc. They are oſten heavily involved in construction and manufacturing, and these jobs oſten can’t easily (if at all) be outsourced. While the shortage puts employers at a disadvantage, it also creates huge opportunities for newcomers to the industry.

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The popularity of America’s skilled trade careers has been in steady decline for the past few generations, and industries that have relied on American workers across the country are now feeling the effects of that. While the shortage puts employers at a disadvantage, it also creates huge opportunities for newcomers to the industry.

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Page 1: Addressing Worker Shortages in the Skilled Trades

SKILLED TRADESADDRESSING WORKER SHORTAGESThe popularity of America’s skilled trade careers has been in steady decline for the past few generations, and industries that have relied on American workers across the country are now feeling the effects of that. Skilled trades encompass many careers, including welding, pipefitting, carpentry, HVAC, etc. They are often heavily involved in construction and manufacturing, and these jobs often can’t easily (if at all) be outsourced. While the shortage puts employers at a disadvantage, it also creates huge opportunities for newcomers to the industry.

Page 2: Addressing Worker Shortages in the Skilled Trades

2 Skilled Trades: Addressing Worker Shortage 2014

WHY THERE ARE FEWER WORKERS IN THE SKILLED TRADES

6% 53% 18.6% 20%

Of high school students desired a future career in the

skilled trades.

Of US skilled trade workers were at least 45 years old in a 2012 study conducted by

EMSI.

Of skilled trade workers were between the ages

of 55 and 64.

Of the skilled trade workers may need to be replaced over

the next decade.

However, these statistics are even more extreme in many states, including New Jersey, Rhode Island, and Connecticut.To further complicate the issue, during the recession, many skilled workers left the industry after being laid off from their jobs. They retrained themselves for the business or service sectors in search of more stable employment. After undergoing this training, many were unwilling to return to the industry as it picked up again, contributing to further supply labor losses as the market rebounded.

There are a few reasons that have contributed to the decline of skilled trade jobs. High school students are often pushed toward university education and then onward toward white collar jobs. Some people believe that these jobs have higher earning potential than manual work, an idea that’s been popularized by the rise of IT professionals. In general, high schools have promoted academic values rather than career-oriented ones. Many more are driven away by misconceptions about their own mechanical abilities, mobility within skilled trade careers, and the social status of skilled workers. The decline of new entrants into the skilled trades is compounded by the number of older professionals approaching retirement. Because skilled trade work often entails physically demanding tasks, many workers do not put off retirement once they reach 65 and are able to start collecting benefits.

Page 3: Addressing Worker Shortages in the Skilled Trades

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CONSEQUENCES OF THE LABOR SHORTAGE

INCENTIVES FOR STUDENTS TO ENTER THE SKILLED TRADES

Without enough laborers, manufacturing and construction falls behind. Businesses gradually lose the resources they need to quickly fill orders, and then orders may be placed with other manufacturers. In some cases, work may be shifted to overseas locations or foreign laborers may be brought in. Neither of these outcomes is ideal, but if American manufacturing labor supply isn’t able to recover and the demand still exists, the US will be forced to look to outside talent.

There is widespread support to encourage more young men and women to pursue careers in the skilled trades. In the 2014 State of the Union Speech, President Obama called for an overhaul of America’s federal training programs, promoting greater participation of apprenticeships and other forms of skilled trades training. These calls to action are part of the efforts being made to improve economic growth and stability by focusing on the livelihood of Americans.

Ultimately, not filling these jobs could mean that there will be fewer US jobs like these in the future as markets look for other ways to meet demand. While some trades are inherently protected by geography from being outsourced (such as HVAC and plumbing), there are still consequences for the economy. As labor shortages continue, productivity as a whole suffers, and this curbs economic growth. This has led to major investments in the education of new labor in the skilled trades

There are also various groups and NGOs, like SkillsUSA, that promote skilled trades to high schoolers to give them exposure to skilled trade work and help them develop an interest in it. There are also a number of programs, including mikeroweWORKS, that raise money for skilled trade scholarships for students who plan to attend trade school or other skilled trade education programs.

Page 4: Addressing Worker Shortages in the Skilled Trades

4 Skilled Trades: Addressing Worker Shortage 2014

BENEFITS OF A SKILLED TRADES CAREER

High job demand is a major benefit to working in the skilled trades. One concern of people considering careers in the skilled trades is that their jobs will be sent overseas to countries with low labor costs. However, much of America’s skilled trade jobs cannot be outsourced (home construction, bridge repair, automotive services, etc.), and more manufacturing jobs are returning to American soil, prompted by financial and logistical incentives.

Skilled trade workers have a wide range of career options. Even within a single trade, there are many directions that workers can take. For example, welders are needed everywhere from outdoor construction and repair to environmentally controlled manufacturing plants. There are a number of industries that employ the same type of skilled labor, giving workers many options to choose from when deciding what jobs they want to focus on.

Careers in the skilled trades are highly engaging for individuals. Workers provide complex tasks, and their work environment is constantly changing as they move from project to project. They also work in varied conditions. While this can mean working in some extreme situations (tight spaces, cold weather, etc.), it’s safe to say people in the skilled trades are not likely to get bored.

The talents of skilled trades workers are in demand across the country, as well. Anywhere there are rivers, bridges will need to be built. Anywhere people use air conditioning, technicians will need to service the AC systems. Anywhere there is an oil boom, pumping stations and pipelines will need to be constructed. Any type of infrastructure (roads, gas lines, residences, schools, ships, indoor plumbing, etc.) is created and maintained by skilled trade workers. Wherever there is infrastructure, there is also a potential demand for skilled labor.

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Page 5: Addressing Worker Shortages in the Skilled Trades

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TURNING SKILLED LABOR SHORTAGES INTO OPPORTUNITY

In 2010, 14% of US employers reported having difficulty filling positions within their organizations. The most common problem was that available applicants were underqualified – their skill level wasn’t high enough to fulfill the role that employers needed them to. With proper technical education, newcomers to the field can bridge the skill gap and give themselves more opportunities for employment. Trade schools and vocational training programs across the country are sending more graduates into the workforce every day to carve out successful careers for themselves in welding, HVAC, plumbing, and more.

For more information about training at a technical school for a career in the skilled trades, contact an Admissions Representative at Tulsa Welding School.

Sources:http://education.yahoo.net/articles/jobs_that_are_hard_to_fill.htmhttp://www.forbes.com/sites/emsi/2013/03/07/americas-skilled-trades-dilemma-shortages-loom-as-most-in-demand-group-of-workers-ages/http://blogs.ajc.com/get-schooled-blog/2010/11/07/if-there-is-a-shortage-of-skilled-workers-in-the-trades-why-arent-salaries-rising/http://www.reliableplant.com/Read/15760/poll-skilled-trades-rank-low-in-teens’-career-optionshttp://www.equipmentworld.com/facing-9-billion-in-demand-iowa-contractors-feel-impact-of-skilled-labor-shortage/http://www.whitehouse.gov/the-press-office/2014/01/28/president-barack-obamas-state-union-addresshttp://profoundlydisconnected.com/trading-up/http://press.manpower.com/press/2010/manpower-annual-survey-reveals-shortages-persist-in-key-roles-despite-available-job-seekers/

Accredited School, ACCSC. TWS-Jacksonville is a branch campus of Tulsa Welding School, located at 2545 E. 11th St., Tulsa, OK 74104. Tulsa, OK campus is licensed by OBPVS and ASBPCE. Jacksonville, FL campus is licensed by the Florida Commission for Independent Education, License No. 2331. Licensed by the Mississippi Commission on Proprietary School and College Registration, License No. C-668. For more information about our graduation rates, the median debt of students who complete our programs, and other important information, please visit our website at: http://www.weldingschool.com/student-resources/regulatory-information/.

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