Posts Tagged ‘unemployment’

Low-key Labor Day celebration

August 30th, 2012
By: Vicki Bell

The workweek is winding down, and the Labor Day Weekend is upon us. As I thought about what my family might do to “celebrate,” it occurred to me that I don’t really feel all that inclined to celebrate. Yes, I’m grateful to have the day off to relax and maybe catch up on some much-needed yard work, but I’m mindful of the millions of Americans whose Labor Day will be, at best, like any other jobless day, and perhaps worse as they watch the employed among them fire up the grills and participate in other festivities, such as parades featuring smoke-blowing politicians.

It’s difficult to put an exact number on just how many of our citizens are out of work. We have the “official” unemployment numbers that don’t take into account the number of workers who’ve given up looking. And we have the underemployed—those who are working at jobs that are below their skill levels and don’t pay enough, let alone provide benefits.

According to The Bureau of Labor Statistics report for the month of July, both the number of unemployed persons (12.8 million) and the unemployment rate (8.3 percent) were essentially unchanged, and both measures have shown little movement thus far in 2012. I’m not an economist, but personal observation and news reports I’ve read lead me to believe that August won’t fare much better. (more...)

Producing more versus hiring more

April 17th, 2012
By: Tim Heston

A few weeks ago Rob Olney, president of ETM Manufacturing, a contract metal fabricator in Littleton, Mass., told me something that exemplifies what makes people proud of American enterprise. But it also worries people who need a lower unemployment rate to get re-elected.

“[Since 2006] we’ve tripled our annual sales and less than doubled our personnel.”

Olney and other managers of successful fabricators--the “winners” emerging from the Great Recession--had good foresight in 2009 and 2010. They reduced waste, especially work in process, and invested in equipment that sped work flow and reduced lead time. They’re producing more with fewer people. The result: Sales are soaring; hiring, not so much, and (most significant) neither is overtime.

Mark Chadwick, a manager at St. Louis-based CR Metal Products, called this phenomenon “painless growth.”

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Unemployment benefits or a factory job?

March 28th, 2012
By: Vicki Bell

If you’re a regular reader of The Fabricator Blog, you may have seen the post about wages that drew comments from both employers and workers—both those who think current wages are fine and those who don't. 

These comments also offered opinions about why employers may be having such a difficult time finding workers, even with today's high unemployment rate. 

"C" said, "I will tell you why [workers aren't taking factory jobs]. It is because they can work at Wal-Mart or any number of warehouse or even office jobs for the same money that is being offered to skilled labor and work in air-conditioning instead of 115-plus degree welding shops. I personally worked at the local Wal-Mart making a little over $10 an hour and it was 4 miles from my home. (more...)

Manufacturing grows … again

January 3rd, 2012
By: Tim Heston

Maybe those long lines of attendees at the FABTECH trade show last year weren’t red herrings. The Institute for Supply Management reported significant growth in manufacturing last month, news significant enough to send stocks skyward.

News coverage has been cautious, especially considering what happened 12 months ago. Stocks rose in January and throughout the first few months of 2011, only to plummet as the economy experienced one black swan event after another. Japan’s earthquakes and flooding in Southeast Asia and here in the states disrupted supply chains. The Arab Spring and European debt crisis has continued to add to our uncertainty, as well as, of course, that stubbornly high unemployment rate. So yes, if I were reacting to today’s market rise, I’d be glass-half-empty, too.

But U.S. manufacturing still seems to have a lot going for it these days. China’s government announced on Dec. 1 that its manufacturing was contracting just as labor disputes were expanding. The Asian factory worker is unhappy, and justifiably so. Ian Spaulding, managing director of the consultancy Infact Global Partners, had some insightful remarks for Bloomberg about China’s sputtering manufacturing engine. “In an environment where you have 10 to 20 percent turnover a month, managers start thinking of workers as machines. That creates resentments on both sides.”

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Not all for one, one for all

September 21st, 2011
By: Dan Davis

I just got off the phone with a retired "sheet metal mechanic," as he called himself. He wanted to send in a letter to the editor about his experiences in metal fabricating, and I'm not sure we'll have enough room to include all of the points he covered in our 10-minute phone call.

This was his main point, however: You can bust your butt to be a good employee, but companies "will toss you aside when they are done with you." After making that statement, he went on to describe how he worked a 1 p.m.-to-9 p.m. shift for one shop, often working into the early morning, for 27 straight days. After putting together that long streak of consecutive days worked, he was laid off several weeks later. On the way out, the owner of the company told him his contributions were appreciated, and he replied, "You have a funny way of showing it." (more...)

Just what kind of shortage are we experiencing?

June 23rd, 2011
By: Dan Davis

President Obama visited E.J. Ajax and Sons in Fridley, Minn., last week to tout his job training initiatives. The metal stamper and fabricator works closely with Hennepin Technical College in Brooklyn Park, Minn., to take unskilled students and turn them into skilled employees for manufacturing companies. Obviously, in an economy with an unemployment rate that doesn't seem to improve from one month to the next, the current presidential administration wants to promote any program that may aid in retraining for jobs that are available and unfilled.

According to one article, the U.S. still has about 3 million job openings. Most pundits are pointing to a lack of training funds for expensive vocational programs and a general educational system that doesn't seem able to produce a new generation of workers with the math and reading skills needed to contribute immediately after being hired. Those pundits may be right, but waiting for the government to solve those problems is like waiting for the bus that just had its service route cut; it's not showing up.

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The housing market hasn’t hit bottom yet

March 31st, 2011
By: Eric Lundin

A headline at CNN’s money page caught my eye recently: “Why house prices will keep falling.”

The article cited the Case-Shiller U.S. House Price Index, which showed a 3.1 percent decline from January 2010 to January 2011. The gist of the index, developed by Karl Case and Robert Shiller, is that home prices tend to follow inflation.

On the surface, that seems obvious. Inflation, which probably should be called price inflation, is just that—increases in prices relative to the value of the dollar. Most prices, including prices paid for homes, increase steadily over time, and economists use these increases to calculate inflation. Economists often separate food and fuel because they are volatile, leaving core inflation, which tends to be steady. Case and Shiller did something different. Instead of pulling out fuel and food, they separated house prices. According to their research, home prices generally follow inflation. The key is that they generally follow inflation; when home prices diverge from core inflation, Case and Shiller expect them to later realign. If home prices rise faster than other prices, home prices later fall. (more...)

Junk e-mail and unemployment

December 6th, 2010
By: Tim Heston

I used to joke about my own little leading economic indicator, the JEI ... or my “Junk E-Mail Index.” I sometimes called it the FEI too, replacing “junk” with “forwarded.” In the 1990s, when e-mail was new and unemployment was incredibly low, my JEI was incredibly high. I attributed this partly to the novelty of it all. Pushing just a single button to send a message instantly was just so cool, so why not forward junk around and press that button even more? But I think there was another reason too: People sitting in the cubicle farms of the day also had time to waste.

Then in 2001, my JEI dropped abruptly. The dot-com bubble had burst and companies were downsizing. My employed friends were too busy to fire off those time-wasting emails. Still, the JEI climbed slowly through the decade; again, people had time to waste. Then in 2009 it just dropped off a cliff. The only junk emails I get now are advertisements, not forwards from friends. We’re all just too busy.

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Two realities of economic recovery

November 30th, 2010
By: Tim Heston

After more than a year looking, my neighbor finally landed a job. He previously worked as a construction manager, which is undoubtedly why it took him so long to find work again. His new job isn’t in construction but instead is related to supply chain management. He sells software that helps various tier suppliers communicate more efficiently. At a recent holiday get-together, neighbors came by to congratulate him. It’s so good to see someone get back on firm financial footing.

Then there’s the house up the street. Two months ago the vacant dwelling was sold at a fraction of its original value. Then there’s another house that’s been on the market longer than my 3-year-old daughter has been alive.

Sheesh.
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Giving thanks for skill, engagement, and curiosity

November 22nd, 2010
By: Tim Heston

Later this week I’ll be stuffing a turkey (and myself) and giving thanks--thanks for family and friends, of course, but also for something my mind’s been mulling over for the past few weeks: human engagement, and not the betrothal kind. I’m just talking about direct, concise, clear engagement with one another. Earnest, curious communication would be another phrase for it.

The Sunday New York Times ran an expose on how youth engage with each other. The undertone was plain. We’re all worried about the next generation’s attention span. Electronic doodads distract them continually, and over time some of them have become multitasking extraordinaires, which worries us. They’re good at doing a mediocre job of a lot of tasks at once, and mediocrity doesn’t bode well for our future. Can these kids concentrate, learn, ask questions, and become engaged, productive workers who can compete in a global economy? Every generation seems to go through this. TV was supposed to make us all zombie-like nitwits. So was radio. The digital age has made things a bit different this time, but it doesn’t keep me up at night.

Still, mass media has devoted column-inches to subjects of this ilk in part because it relates to the big unknown in America’s future. A few weeks ago I quoted a recent Bloomberg Businessweek article, which referred to Narayana Kocherlakota, president of the Minneapolis Fed. He estimates that this country’s current job opening rate is 2.3 percent. That’s a lot of jobs, and filling all of them would reduce the country’s unemployment rate significantly.

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