June 18, 2013

Study claims no ‘skills gap’ in state labor market

The existence of a “skills gap” in Wisconsin’s labor force has become accepted wisdom among politicians of both parties. Governor Scott Walker has repeatedly talked about rolling back the gap in worker skills. “As we work to create more jobs, we need people with the skills to fill the jobs,” he said during his budget address. “We understand the state able to fix the jobs skill gap is the state that will lead the country in economic development.” Assembly Minority Leader Peter Barca called for urgent action on closing the gap and getting people back to work.

Now a new study may raise questions about the existence of the gap. The state’s labor market shows no evidence of an existing or impending general “skills gaps,” according to analysis by a team of graduate students at UW-Madison’s La Follette School of Public Affairs.

The students analyzed the supply and demand for labor by building projections for both overall levels of educational attainment and specific occupations and by using present-day economic indicators.

Robert Haveman is professor emeritus of public affairs and economics, and oversaw the study. “This is a very good study,” he said. “It presents strong evidence that there is no general ‘skills gap’ problem in the state, although in certain places and for certain jobs there may be a problem. Perhaps these few problem areas are the ones that we hear about anecdotally.”

Analysis in the study, produced in the Workshop in Public Affairs for the Wisconsin Legislative Council, indicates a shortage of labor in Wisconsin for projected job openings that do not require post-secondary formal education, an excess of associate’s, bachelor’s, and master’s degree holders for the projected job openings, and a relatively small shortage of doctoral and professional degree holders” the study finds.

“If anywhere, the ‘skills gap’ exists for occupations requiring the state’s lowest skill workers,” Haveman said.

 

Powerball dreams for record jackpot

There’s a record Powerball jackpot up for grabs. Andrew Bohage with the Wisconsin Lottery says the jackpot for Saturday night’s drawing, driven by brisk ticket sales, will be somewhere north of $600 million, up from around $475 million on Wednesday night. “I would not be at all surprised that by the time we get through Saturday’s sales, that number comes in ten, twenty, maybe forty million higher than that,” he said.

Bohage counsels spending a couple of bucks and having some fun thinking about winning – while bearing in mind the astronomical odds. “There never is any good reason to spend a lot of money on these games. Even if you spent tens or hundreds or even thousands of dollars on tickets, you’re not going to change your odds so dramatically that you would have a real impact on this game.”

Lottery employees are barred from playing, but Bohage said they still get excited over the prospect of a big winner coming from Wisconsin. “We don’t get to play, so our version of the big dream is “it’s $600 million, boy what would it be like if it’s a Wisconsin player?” Everybody else is dreaming about the cash, and we’re just dreaming about where they come from.”

 

Health care workers seek end to mandatory overtime

HCOvertime2Healthcare workers rallied at the state Capitol, to push for end of mandatory overtime. It’s an issue that’s come before the Wisconsin legislature a number of times in the past without ever advancing.

Diane Palmer is a Registered Nurse and President of SEIU Healthcare Wisconsin. “Studies show that a nurse that’s very tired when she’s working is equivalent to somebody who’s intoxicated,” Palmer said. “Patient care is our number one issue, although it does disrupt personal lives and families when a healthcare worker is mandated. No healthcare worker wants to do a patient harm, and when you’re working more than your scheduled number of hours unexpectedly, there’s a risk.”

Palmer said the amount of mandated overtime hours varies by facility. “Our workers at Wisconsin Veterans Home are mandated 16 hours additional per week in some instances,” she said. “That means they work another 4 hours of a shift after they’ve competed their regular 8 hour shift.”

That, Palmer said, is the result of Act 10. She said UW Hospitals in Madison are contractually prohibited from imposing mandatory overtime, but employees believe that could change. Health care workers rallied at the Capitol Tuesday in support of a variety of measures their unions say will improve patient care and workplace safety.

 

Mixed jobs report for state metro areas

New figures from the Wisconsin Department of Workforce Development show six of the state’s 12 metro areas added jobs in February.

Madison had the largest job gains by far, with an estimated 6,500 jobs added on a seasonally-adjusted basis. The Eau Claire region gained an estimated 1,600, while smaller gains were reported in Appleton, Milwaukee, Oshkosh-Neenah, and La Crosse.

Green Bay had the largest estimated job losses with around 700. Smaller losses were reported in Sheboygan, Racine, Wausau, Fond du Lac, and Janesville.

Of the 12 metros, ten saw their unadjusted unemployment rates go up in March. Eau Claire and La Crosse held steady from February. Racine had the highest metro jobless rate at 9.8 percent. Madison had the lowest at 5.9.

All but 11 of Wisconsin’s 72 counties had increases in unemployment from February. Menominee County has the highest rate at 15 percent. Dane County was the lowest at 5.5 percent.

Eau Claire firm to cut 150 jobs

A high-tech firm in Eau Claire is about to cut another 150 jobs.

Hutchinson Technology confirmed yesterday that the layoffs would be complete by this fall. The company designs and makes small components for computer disk-drives. It’s based in Hutchinson Minnesota, and it had up to 2,500 employees at its Eau Claire location since it opened almost 18 years ago. The workforce will drop below 600 once the latest round of layoffs is complete.

Hutchinson has been moving more of its assembly work to a plant it owns in Thailand.

Read the full story.