Kay Ivey: Workforce development is ‘very clear need’ that requires attention
Alabama Gov. Kay Ivey told economic developers today that the state’s success in growing jobs and capital investment is the result of teamwork and more of it will be required to address the workforce challenges ahead. “Alabama has hit record low unemployment rates and also we have more people working in Alabama than ever before,” Ivey told those gathered at the Economic Development Association of Alabama’s Winter 2019 Conference. “And jobs, y’all, are continuing to pour into our state. So, as we seek out companies to locate and expand in our great state, there remains a very clear need that we’ve got to prepare our men and women for the jobs of today and the jobs of tomorrow.” Ivey said it is an area that requires attention. “That’s why enhancing workforce development is vitally important and it’s a priority of mine moving forward,” she said. “This will be led by Nick Moore and this office will focus solely on aligning our workforce development funding streams with our workforce development programs for Alabamians all across our state,” she said. “This entity within the governor’s office is working to increase our labor force participation to surpass our goal to better equip some 500,000 of our workers with a post-secondary degree, certificate or credential.” It’s a needed element in a larger strategic plan to enhance workforce development that educators, leaders of business and industry and communities put together, Ivey said. “I know that together we can get that done,” she said. “Alabama’s workforce efforts will be known worldwide and they will be effective. And, to put it simply, they will be known as the best.” Ivey used her keynote address as a call to action. “So today, my friends at EDAA, I charge each of you, each and every one of you, to show the world that Alabama’s workforce is a force to be reckoned with and that Alabama is the place to do business,” she said. “Let’s show companies that the ‘Made in Alabama’ team is one to join because with it, our future will be filled with growth and opportunity for everyone.” Ivey’s address wasn’t all about the challenges. She did take time to celebrate the successes. “Throughout my time as governor, we have proven time and time again that success is best found when we work together,” she said. During her time as governor, Ivey said the state has seen $8 billion in new investment, 16,000 new jobs and several coveted economic development projects announced, along with strides to improve the state’s education system. “Working together, we are achieving these results,” she said. “But what matters most to Alabamians is what are the next steps. How are we going to build on the success that we’ve had?” Ivey said she and Commerce Secretary Greg Canfield recently met with seven top U.S. site consultants. “They made it very clear to me that they appreciate the teamwork that they see in our state,” she said. “They further said that they didn’t find that degree of teamwork in many other states.” That approach has led to a revamping of the state’s incentives program that is paying off, she said. One area seeing a large payoff is the way the state brings economic development to rural areas. “I’ve often said that we’re only truly successful when we are all successful together,” Ivey said. “That means also striving for economic growth is important for all 67 counties.” The incentives created by the Jobs Act focus on targeted counties allowing companies to claim more tax breaks for establishing operations in those counties. “Since I became governor, the targeted counties saw a success rate of over 70 percent by landing 10 economic development projects. This means that nearly $1 billion and some 1,200 new jobs have been created in rural Alabama,” Ivey said. “The targeted county approach certainly has merit,” she added. “It works, and we need to take advantage of that and continue to be innovative and work hard to be sure that we have economic development of our rural areas as well. Rural economic development is absolutely a top priority of mine. When there is gain in rural Alabama, it’s a gain for the entire state.” Reprinted with permission from Alabama Newscenter
Parker Snider: Seeing the power of compassion, hope, and work first-hand
Three years ago, I had the privilege of visiting South America for the first time. During my stay, I—along with the rest of my group—met a family whose story broke our hearts. Led by a single mother, the family lived in an aluminum-roofed and mud-filled house in the middle of a village town square, right between two churches. Her adult children still lived with her in their home: one blind and two deaf, blind, and intellectually disabled. Their abusive father abandoned them long ago. The government cared little about these rural people. The two churches, within spitting distance, never troubled themselves with the family. They were, by many standards, forgotten. Thankfully, however, our local partner became aware of this family and determined a way that we, temporary visitors, might make a lasting impact. Through some South American creativity and a lot of bamboo, we were able to make their lives easier, safer, and cleaner. We left feeling tired from work yet restless to know our effectiveness, discouraged by their past yet hopeful for their future. This June we returned to the family’s home. Our arrival was met not with the timid greetings of before but with a new and palpable joy. To my surprise, present at the home was not only the family, but a host of other community members. I was eager to see whether our work had been successful, and the locals were eager to show us that it had, in fact, not been in vain. Just as exciting for me to see was that out of this home now grows a small business. Together with the community, members of the family weave and sell baskets (which we were more than happy to purchase). A lot has changed since our first visit. I cannot be sure exactly why, but I have some ideas. First, I trust that being shown God’s love, not only through our initial visit but through the presence of many others over the years, has reminded them of their worth. Second, I am confident that having certain urgent physical needs met has instilled a hope that their future may be better than their past. Third, I believe that working, for however long, has provided a sense of dignity. This transformation in a South American village offers principles that we must remember as we seek community renewal in the United States. First is the fact that struggling Americans need to be reminded of their value as much as this South American family. We often, intentionally or not, strip people of their God-given worth when we reduce them to whether they receive government support or not. The truth is that, regardless of wealth or status, all people are infinitely valuable. We ought to recognize and exemplify this reality regularly. Only when our compassion is felt and truly experienced by those facing difficulties, specifically the unemployed, will our oft-heralded advice to pursue the dignity of work—the second principle the South American family’s transformation reveals—be received. Work has always been part of God’s design for humanity. In the very beginning, even before the curse of sin, God placed Adam “in the garden of Eden to work it and keep it” (Genesis 2:15). John Piper writes that “God made us to work. He formed our minds to think and our hands to make. He gave us strength—little or great—to be about the business of altering the way things are.” Therefore, we must promote work not because we’re sick of supporting others, but because we trust that God’s plan for humanity’s good is for us to work, and to work hard. Witnessing the change of this family is just one of many formative and equally (if not more) incredible experiences from my time in South America. Most of these were, of course, more personal. This family’s transformation, however, demonstrates general and essential truths that we would do well to remember—namely the power of compassion, hope, and work. ••• Parker Snider is Policy Relations Manager at the Alabama Policy Institute (API). API is an independent, nonpartisan, nonprofit research and educational organization dedicated to strengthening free enterprise, defending limited government, and championing strong families. If you would like to speak with the author, please e-mail communications@alabamapolicy.org or call (205) 870-9900.
Birmingham company makes Fortune’s ‘100 Best Companies to Work For’ list
Fortune’s 2018 100 “Best Companies to Work For” list includes one Yellowhammer State company — Baker Donelson headquartered in Birmingham, Ala. Now in its 20th year, the prestigious list recognizes companies with exceptional workplace cultures. Fortune surveyed millions of employees measuring six components — values, innovation, financial growth, leadership effectiveness, maximizing human potential, and trust — to curate the annual list. “A great workplace “is one where employees trust the people they work with, have pride in the work they do, and enjoy the people they work with,” Great Place to Work CEO Michael Bush and vice president Sarah Lewis-Kulin wrote in Fortune. As one of the 60 largest law firms in the U.S., Baker Donelson employs 1,484 U.S. employees across 22 offices. In naming Baker Donelson to the list, Fortune highlighted employees’ trust in the firm’s management and the transparency of the firm’s leadership. The firm has made the list for nine consecutive years, ranking the highest at no. 30 in 2015. “Our Firm’s strategy is built on the belief that having the best people is essential to delivering the best client service,” Baker Donelson Chairman and Chief Executive Officer Ben C. Adams said. “We’re very proud that for nine years Fortune has recognized Baker Donelson’s culture of transparency, inclusiveness and respect for the contributions that every member of the Firm makes in serving our clients.” Here are the top 10 companies on the list: Salesforce (San Francisco): Information technology Wegmans Food Markets (Rochester, N.Y.): Retail Ultimate Software (Weston, Fla.): Information technology The Boston Consulting Group (Boston): Professional services Edward Jones (St. Louis, Mo.): Financial services and insurance Kimpton Hotels & Restaurants (San Francisco): Hospitality Workday (Pleasanton, Calif.): Information technology Genentech (San Francisco, Calif.): Biotechnology and pharmaceutical Hyatt Hotels (Chicago): Hospitality Kimley-Horn (Raleigh, N.C.): Professional services
Daniel Sutter: When work becomes fleeting
A recent study from Dell Technologies contends that 85 percent of the jobs that will be around in 2030 do not yet exist. My son should graduate from high school in 2030, so what type of job market will he face? A very different one than I graduated into in Detroit. Will there be jobs in the future? Yes, because we live in a world of scarcity, and so we will always want more than we can produce. Our skills and talents will allow us to produce goods and services even in a world with robots and artificial intelligence. Work will hopefully not be as long or hard as in the past. The Dell study suggests that by 2030 the gig economy, which is just emerging now, will be the norm. They foresee businesses having independent contractors bid on narrowly defined tasks, a model loosely based on the TV series, “Shipping Wars.” Whether gigs replace jobs, I strongly doubt that industry will ever again provide employment for hundreds of thousands over decades. This is what the auto industry provided in Detroit. Multiple generations of a family worked for the automakers, and young people could expect to join them after graduating high school. The jobs paid very well too. Other industries provided similarly, including steel plants and tire companies in the Midwest, and coal mines in Appalachia. Elsewhere oil fields, oil refineries, textile mills, and furniture factories provided the lifeblood of communities. Agriculture sustained rural communities. Railroads, trucking and teaching provided jobs across the nation. Nature has always required humans to work hard to survive. For thousands of years, almost everyone had to hunt, fish, or farm. Progress now allows one percent of workers to feed America. The Industrial Revolution harnessed steam power to launch manufacturing and created factory jobs for erstwhile farmers. Textile mills, railroads, and auto plants employed steadily for decades. Consequently, most people have never had to look too hard to find work. Although an intrepid youth could always leave the farm, mine or factory and blaze new trails, the less intrepid still had plenty of jobs. We are almost surely at the end of mass employment in stable job categories. Robots and artificial intelligence will automate routine physical and mental jobs, especially jobs needed in large numbers. Never again will so many people work on assembly lines for so long. This will radically change the world for people who previously slid into readily available jobs. There will be more churn in employment, and few well-worn paths into jobs and careers. Constantly emerging and disappearing jobs will challenge high school guidance counselors. Will people find or make new jobs for themselves? The early returns are not encouraging. The U.S. economy has experienced a sharp labor force participation decline – largely among working age men – over the past decade. And we have witness a horrendous epidemic of opiod abuse. Both have been worst in Appalachia and the Midwest. It appears that automation of coal and manufacturing jobs has produced despair, not excitement over unimaginable new opportunities. What must change? A recent study argues that people need to learn how to harness their passions within the work world. This, I think, is totally on the mark. People are already turning their passions into remuneration, through craft production, providing special services, or jobs which align perfectly with their passions. In the longer term, I am quite optimistic. Technology automates many jobs, but allows people to quickly learn – through blogs, podcasts, YouTube videos – about new ways to make a living. And business schools increasingly teach entrepreneurship. Creativity and innovation are the essence of entrepreneurship, and this mindset should help future job seekers devise new ways to make a living from their passions and interests. Few people in human history have figured out a way to make a living. Not surprisingly, our schools have largely prepared young people for readily available jobs. I think we will adjust to a future where jobs are plentiful, but fleeting. ••• Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision. The opinions expressed in this column are the author’s and do not necessarily reflect the views of Troy University.
Daniel Sutter: Will we be free to work as we choose?
Technology has significantly changed work over the past twenty years. The emergence of opportunities to essentially earn a living from one’s hobby, which I discussed last week, is one change. New ways to earn a living outside of the traditional employer-employee relationship now exist as well. New work arrangements, though, have run afoul of labor law, which, intentionally or not, is trying to force people back into traditional employee relations. As a result, we may fail to realize the potential of the sharing economy. An estimated 31% of Americans worked as independent contractors, temps, or were self-employed in 2006. Government regulation has driven some of this, by tightly controlling the employer-employee relationship and creating opportunities for litigation. Tax advantages encourage and regulation requires employers to provide benefits like health insurance, pensions, and overtime pay for workers. Businesses face a considerable cost beyond wages or salaries when hiring employees, and will do so only when they need services regularly over an extended period of time. Technology is also creating new opportunities for contractors, particularly in the sharing economy. The ride sharing service Uber, which offers a virtual platform connecting people needing rides with willing drivers using their personal cars, provides a notable example. Similarly Angie’s List connects homeowners with contractors, electricians, and other service providers. Uber and Angie’s List do not employ the drivers or service providers. The sharing economy needs the flexibility contracting offers. Traditional economic relationships tend to be extensive and long term; people might work as cab drivers full time for years, with cars used exclusively as taxis. Sharing economy relations tend to be broad but only as long as needed to use presently idle resources. For instance, college students might use their car to earn extra money driving for Uber when convenient. We need the flexibility to deploy people and resources when, where, and only for as long as necessary. In addition to economic advantages, contractors often experience greater autonomy. Consider a writer who could either work as an employee of a magazine or free-lance. The free-lance writer has greater freedom to choose topics, and can avoid doing pieces for editors who have treated them poorly in the past. State labor commissions in California and Oregon, however, recently classified Uber drivers as employees. Uber is successful enough now that it should survive this decision, but other businesses will not. One casualty has been virtual personal assistants startup Zirtual, which could not afford the reclassification of its contractors as employees. Many politicians probably think that reclassifying contractors benefits workers. Some people also believe that raising the minimum wage makes low wage workers better off. In both cases, those still working after the policy might be better off, but those no longer able to work or supplement their income by driving a few hours a week for Uber will be worse off. The New York State Attorney General’s campaign against “on-call” shifts also strikes a blow against flexibility. The practice involves an employer requesting that employees be ready to work at a given time, and then informing the employee less than 24 hours in advance if they will need to report. Some retailers use this practice to adjust staffing to forecasts of customer demand. I suspect that people can manage their affairs better than the New York AG thinks. Employees regard being available for “on-call” shifts an imposition, and so businesses will have to pay extra to get employees to work “on-call.” People who find this work least burdensome will end up in “on-call positions, and may consider the extra pay more than adequate compensation. Politicians unable to see the invisible hand of the market will act to protect people who do not want or need protection. Many Americans have long enjoyed the flexibility and autonomy of being their own boss. Innovation is allowing more people to work as contractors instead of employees. Government should recognize the value created by our evolving world of work and not needlessly impose yesteryear’s employee-employer relation today. Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision.
