Economic growth opportunities dependent on improved labor productivity
Labor productivity is a key factor in driving economic growth. To increase and sustain economic growth, labor productivity needs to increase.
Think about how well your company performs and about how well your employees do their job. Are you an employer who is struggling to maintain productivity and as a result you are unable to invest and grow your business?
According to the Illinois Department of Employment Security, many industries are projecting employment growth over the next several years. At the same time recent studies found that a significant number of U.S. employers cannot find workers with much-needed skills, including the lack of preparation for entry-level jobs and beyond.
In Illinois and Kane County, there are a couple of areas where access to a qualified labor pool has been significantly challenged, including manufacturing, wholesale trade and construction, where collectively, almost 20% of the projected employment growth is anticipated. In addition, these are estimated to contribute over 20% of Kane County's gross domestic product, the final value of goods and services produced within the geographic boundaries.
The employment projection growth reveals increased optimism for economic growth, especially in these industry sectors. However the economic growth projections are dependent on increased access and availability to a skilled labor pool. It's not just about finding workers; it's about finding the right talent. These industries need skilled workers who are difficult to find. Let me offer a couple of ways to address the skills shortage in these industries.
Create a partnership with local high schools and community colleges.
Career-focused experiential learning programs, sometimes called Career and Technical Education (CTE) are offered in high school and at community colleges. Community colleges collaborate with school districts to ensure that curriculum and instruction are aligned with postsecondary-level work to provide students with clear pathways to postsecondary education and training to prepare them to enter the labor force.
Through apprenticeship and job training programs, high schools and community colleges assist companies in developing a talent pipeline.
"Apprenticeship and job training programs are a win for the employee and employer alike. Potential employees can 'earn while they learn,' while employers get the skilled employees they so desperately need. Encouraging young men and women to take those CTE class in high school will spark an interested in manufacturing. Giving them the head start they need to succeed. The career opportunities in manufacturing are unlimited," said Laura Swarts, business development at Vertex Resources Group, a St. Charles-based recruiting firm.
"Our local employers are in desperate need for skilled workers. At the same time, there are many workers who are unemployed and lack the skills needed to secure a job. These situations have a direct impact on a company's bottom line and hurt our local economy," said David Sam, president of Elgin Community College. "At Elgin Community College we help connect employers with highly trained students who are ready for work. Additionally, we are able to provide new and current employees with the training needed to compete in today's high-skills environment. ECC is committed to improving our local economy through partnerships with area business."
Participate in employer work-based learning programs, aimed at preparing individuals of any age to gain the skills and talent they need to compete in the labor market.
This is sometimes referred to as a "Modern Apprenticeship," according to an IWSI America publication. There are several key components to a Modern Apprenticeship.
" Apprenticeship programs:
• "Are customized, supervised and paid on-the-job training at reduced or no cost;
• "Offer wages graduated in steps based on the skills gained during training;
• "Provide related classroom instruction (on or off site) to reinforce technical skills learned in the workplace;
• "Offer formalized mentoring and coaching;
• "Provide nationally recognized industry credentials or specialized technical certification earned for demonstrating the achievement of workplace competencies; and
• "Offer optional college credit leading to an associate or bachelor's degree."
These examples offer steps manufacturing companies, the trades and other industries can take to address the skills shortage. Our local high schools and community colleges provide great educational opportunities, and they rely on employers to provide workplace opportunities for students.
These challenges and opportunities are not just a local issue, in fact recently the House of Representatives of the 117th Congress voted and approved the National Apprenticeship Act of 2021, which would invest more than $3.5 billion, over five years, in expanding opportunities and access to Registered Apprenticeships, youth apprenticeships, and pre-apprenticeships.
"When it comes to rebuilding our economy, we must use every tool we have to help workers find jobs and prepare them for high-quality employment opportunities - and a strong, resources apprenticeship program is a crucial component of that commitment. I supported the National Apprenticeship Act of 2021 to ensure that apprenticeship programs throughout northern Illinois are fully funded and equipped to prepare workers to thrive in our economy," Congresswoman Lauren Underwood said.
Projected economic growth and local GDP, coupled with employment growth predictions within Illinois and Kane County also offers a tremendous opportunity for young and seasoned workers who are looking to learn new skills in both the manufacturing and construction sectors. Jobs in high demand include chemical, plastics and rubber products, carpentry, drywall, electric, HVAC, plumbing and welding.
Sustained economic growth can be achieved by building meaningful collaborations between employers and educational institutions. My job at the St. Charles Chamber of Commerce is to support businesses and contribute to our local economic growth. I encourage local companies to partner with high schools and community colleges to develop programs and pipelines that address current and future labor market needs.
For further information on Apprenticeship and related Workforce opportunities and recent legislation please visit:
https://elgin.edu/about-ecc/workforce-development/SPEL/apprenticeship/ https://elgin.edu/about-ecc/workforce-development/SPEL/internships/
Elgin Community College, workforce Development: (847) 214-6901 Northern Kane County Internships/Job Shadowing Programs: www.northernkanepathways.com https://www2.illinois.gov/ides/Pages/Apprenticeship.aspx https://www.icattapprenticeships.com/ https://www.gcamp.org/ https://www.congress.gov/bill/117th-congress/house-bill/447
• James J. Di Ciaula is president and CEO of the St. Charles Chamber of Commerce. He recently was appointed to Congresswoman Lauren Underwood's Economic Development Advisory Council for the 117th Congress.