UNMASKING SCG’s POTENTIAL at the SHRM & NAHCR CONFERENCES

Tina Davis and Natalie Corsaro at NAHCR conference in Minneapolis, MN 2022.

Now that people are traveling again…the SCG sales team took full advantage of opportunities to reconnect with old friends and make new friends.

In July, SCG attended NAHCR’s Annual Conference in Minneapolis and were provided a fabulous learning environment for health care recruiters at all stages of their careers. Everyone in attendance, whether a new human resource specialist, a tenured TA manager or director, or VP overseeing hiring nurses and clinical professionals, gained content from the conference that catered to their professional development needs. NAHCR is the only conference designed by health care recruiters for health care recruiters. It was a great preview of conversations coming next.

Tina and Natalie at SHRM.

Then in September, Tina Davis, VP of Account Services, and I joined as an exhibitor for the 50th anniversary OH SHRM conference at the Kalahari resort in Sandusky, Ohio. This year, the conference drew over six hundred professionals from around the state to network with peers and celebrate the theme “Unmasking Your Full Potential.” In addition to enjoyable and engaging conversations, we had the opportunity to present our capabilities through a video highlighting SCG’s portfolio of client work at the booth. Many of the attendees we met were focused in the Manufacturing and Education sections and shared struggles in filling hourly positions. We were able to share our experience with similar clients and how SCG can help.

The highlight of the Conference was the gala event which was a chance for everyone to relax and have fun dancing to the Spazmatics! Luckily the accommodations at the Kalahari Resort made it convenient for everyone especially as we all danced the night away. It was an enjoyable few days of sharing, learning, and bonding. Such a great conference…we look forward to next year 😊

Whether you’re looking for a new recruitment ad agency, support for your existing in-house team, or a partner on specific hiring challenges, we can help. Today’s communications landscape can be confusing and downright chaotic. New resources are developed each day, and what worked yesterday, may not be as effective today. Staying ahead of the ever-changing media channels is challenging, and definitely a full-time job. We can help. We’re recruitment marketing specialists. Contact us today to find out what solutions we have for you!

How The Largest School Districts Are Attracting Talent

Teachers, administration, and faculty are the backbone of any school district. However according to the Center on Reinventing Public Education (CRPE), most of America’s biggest school districts are facing staffing shortages threatening their talent supply. While schools were already facing shortages, the pandemic greatly worsened them and their impact on school districts. With teachers and staff being so crucial to keeping schools running, many districts are being forced to get creative with their talent attraction efforts.

One major incentive school districts are now using is greater professional development opportunities. According to a study done by Brookings, 84 out of the 89 interviewed school districts planned to offer more professional development opportunities for staff, such as workshops and training. Some classes include helping teachers to better identify struggling students and know how to better support students emotionally. About a quarter of schools stated they planned to also offer coaching, mentoring, and well-being programs. Programs like these are attractive for staff, as it teaches them skills that make them more competitive and valuable in their careers.

Another method some districts are implementing is making a more direct pipeline for new staff to enter the workforce. For example according to Brookings, some districts are working with local universities to hire new graduating teachers, creating a direct path from college to career. According to the New York Times, states like NJ are publicizing passing rates on teacher licensing exams, showing new college students the best paths into education, and what types of teachers are the most in-demand. Other districts are making it more affordable for teachers and staff to start their careers, such as by offering new teacher residency programs or by reimbursing tuition for school nurses. Programs like these make it easier for schools to proactively find talent before talent finds them.

Some schools are even relaxing rigid restrictions and teacher certification requirements to open the door to a wider talent pool. Schools in New Jersey for example recently just proposed a plan to lift a residency restriction requiring candidates to live in the state to be eligible to teach there. This will give NJ schools greater access to more qualified talent outside of the state and help to fight their staffing shortages. Some other measures NJ is taking include removing an outdated teacher performance assessment called the edTPA. According to NJ.com, this would remove unnecessary hoops for teachers to jump through while still keeping hiring standards high.

One other method school districts are using is simply paying their teachers more or offering better financial incentives to attract new teachers and keep current ones. According to Calder, things such as loan forgiveness programs, educational stipends, and bonus programs significantly reduced turnover. In special education for instance, annual bonuses of just $2,500 were enough to lower attrition. Other school districts are also offering signing bonuses as well as retention bonuses to teachers who stay with the district. Giving teachers and faculty greater financial incentives will increase a school’s attractiveness to candidates in the job market.

SCG Advertising + PR helps over 350 schools in New Jersey with their recruitment advertising. If you need help filling your open positions, visit our website at: www.scgadv.com

JOB MARKET: Where Did Everybody Go?

In this post-pandemic era, recruiters and candidates are playing a more aggressive game of hide and seek. Candidates are more difficult to find due to a variety of market realities. And there is even more pressure on talent acquisition professionals to find that needle in a haystack.

Let’s take a look at some valuable numbers and information that you could be monitoring to keep your finger on the pulse of a market’s “recruitability.”

Your talent market could be shrinking due to cost of living.

Markets where costs, taxes, etc. are out of control have seen an exodus of talent moving out for greener (like in more money for you) pastures.  Residents in the states below are rushing to more affordable states – most of which are located in the south and the central time zone.

Most Expensive States to Live in 2022

1                 Hawaii

2                 Washington DC

3                 New York

4                 California

5                 Massachusetts

6                 Oregon

7                 Alaska

8                 Maryland

9                 Connecticut

10              Rhode Island

Your talent market could be shrinking due to employee participation.

Take a look at your state’s labor participation rate. This represents the number of people in the labor force as a percentage of the civilian noninstitutional population. In other words, the participation rate is the percentage of the population that is either working or actively looking for work.

That number has fallen nationally in recent years meaning that a smaller part of the workforce is holding or seeking employment.  Look at some of the states with the lowest rates. Remember that some states may be more highly affected by the number of retirees.

Participation Rate

West Virginia      55.2
Mississippi           55.3
New Mexico       56.5
Arkansas              56.8
South Carolina   57.0

Your talent market could be shrinking due to lower productivity.

The Bureau of Labor Statistics says this about productivity, “With growth in productivity, an economy is able to produce—and consume—increasingly more goods and services for the same amount of work.” Simply said, lower productivity requires a larger workforce to produce the same amount of goods and services.

Feeding a drop in productivity are those who are allegedly engaging in “quiet quitting.”  That means the employee slowly reduces their engagement, eventually doing only the minimum work required by the job description. I’m not sure how true this supposed trend is but an annual Gallup poll shows engagement going down and disengagement trending upward in recent years.

Here are some markets where productivity has dropped from 2020 to 2021.

States with the steepest drop in productivity

Alaska                  – 3.0%
Wyoming             – 2.9%
Rhode Island      – 0.8%
Hawaii                  – 0.8%
Delaware             – 0.7%
Florida                 – 0.5%

Want to discuss the “recruitability” of your marketplace in greater depth? Let’s talk. Call your SCG representative.

Brynne Springer

The Importance of the Intern… from an Intern

Brynne Springer

Any student past or present understands the importance of internships. As an Advertising major concentrating in Art Direction and Copywriting at Temple University, internships are a great way to build my portfolio and strengthen skills needed within the field. This summer, I worked as an Account Coordinator Intern at SCG’s Haddonfield office and will be continuing my role during my senior year this fall. Through working at SCG, I gained valuable knowledge and practical experience in the advertising industry.

Since I started college a semester before Covid-19 spread into existence, I never had the opportunity to work in-office at any of my prior internships. From my first day, I felt at home right away at SCG. I was welcomed by the team and greeted with my own desk (which was very exciting). The open and warm attitudes of my coworkers helped acclimate me to my work as well. Coming into my position, I had little-to-no experience working in the hiring/recruitment space in advertising. At SCG, I was able to grow my experience not only in recruitment, but in copywriting, art direction, public relations, and social media. I have sat in on client meetings, created my own client reports and presentations, and even wrote my first press release. As a creative who loves to wear a lot of different proverbial hats, it is great to be immersed in so many different areas of work.

While I have heard plenty of internship horror stories from friends and peers, I am glad to say I am not included in that statistic. At SCG, my ideas and contributions are valued and recognized. SCG understands the importance of interns, and you should too. Here are some reasons why interns are an integral part of your company:

 

Excited Interns Make Excitable Work

Interns are excited to get to work and learn all there is to know about your field. Make sure to involve your intern in any way you can—whether that is asking them to come up with ten lines of copy for an ad campaign, drafting ideas for social content, or asking about their thoughts on a meeting they attended. When an intern knows their ideas matter, they gain the confidence to vocalize more of their ideas.

 

Fresh Perspectives

When you have been working in an industry for a while, you tend to stick to a specific way of thinking and carrying out your work. Interns, however, are looking at your client projects with a fresh set of eyes. Sure, not every idea will be one hundred percent doable (because, you know, legal) but new ideas can snowball into successful assets for your company.

 

Word of Mouth Advertising

Your interns matter, so treat them like it. The way you treat your interns reflects your company, and much like a consumer would review a company or product, your interns will too. If your intern had a nightmare experience, word-of-mouth advertising may not be in your favor.

 

Future Employees

Treating your interns with respect also affects your future hires. Students everywhere are looking for employment opportunities post-grad. If your intern was a hard worker who had a great experience at your company, there is a chance they will want to work for you full time. If they felt as though you gave them a negative experience for any reason, you just lost a potential candidate (and potentially more due to word-of-mouth).

Internships are preparing students for their chosen career paths, and your company is a giant part of that process. Your interns are unique individuals with valuable skillsets they can contribute to your company. Remember to treat your interns with respect and be open to their ideas—you never know where they may lead you, and they may end up becoming a full-time hire someday!

 

SCG Advertising + Public Relations is a woman-owned, full-service advertising agency headquartered in New Jersey.  We have had a robust internship programs for at least 20 years.

Declining Enrollment Gives Colleges and Universities Their Toughest Test Yet

Across the country, college and university enrollment has seen a noticeable decline over the last few years. In Spring 2022, there was a drop of 4.7% in undergraduate admissions compared to Spring 2022, which is equivalent to over 600,000 students, according to US News. Combining that with the drop that admissions saw in Spring 2021, college enrollment has seen an overall 9.4% decline since the start of the pandemic. New Jersey wasn’t immune from the enrollment declines, either. According to the Office of the Secretary of Education, total enrollment at public universities in NJ fell by 3.1% during Fall 2021. Private schools saw a dip of 3.5% over the last two years, while community colleges saw the worst drop, being more than 18%.

This doesn’t come without consequences. According to the Hechinger Report, fewer Americans going on to earn a degree could have major impacts for not just colleges, who will have to cancel classes and lay off adjunct professors, but for the country as a whole. Those without a college degree are more likely to have higher rates of poverty and unemployment, which would affect the health of the country.

The decline in enrollment in NJ, along with the rest of the country, can be attributed to several key factors. First, rising tuition costs have naturally made fewer students able to attend college. According to government figures, tuition at public four-year institutions during the 2020-2021 school year was 10% higher than it was in 2010-2011, and that number is projected to only increase over time. This increase in tuition costs has also caused many American families to question the value proposition of a college degree compared to other post-secondary education options, such as cheaper and shorter to complete skilled trade programs which may offer similar earning potential.

The other major factor which has contributed to the recent declines in enrollment is the pandemic. Despite it being two years since the pandemic started, the after-effects are still being felt. Many colleges are still using online or hybrid classes, which has caused students to question if the quality of the education they’re receiving has declined. According to Forbes, surveys show that students are mostly dissatisfied with post-pandemic online college learning. On the recruitment side of things, the pandemic also inferred with in-person recruitment events, such as in-person tours and college fairs, which were canceled during the pandemic. As a result, this gave colleges fewer opportunities to advertise to incoming freshmen.

With enrollment rates declining, it’s crucial that colleges try to fight back and increase enrollment and retention of students. One way colleges can do that is by reevaluating their classes and programs and incorporating more practical and workforce skills. With students questioning the value of a college degree, it’s important that schools update their classes to display a greater value proposition and better prepare students for after graduation. More practical skills are in high demand, as enrollment in trade schools and two-year college programs rose significantly over the spring according to US News. For example, The Colorado School of Mines saw its enrollment rates go up by 22% over the last five years according to Real Clear Education. They rank in the 99th percentile in Georgetown University’s Center on Education in the Workforce rankings of return on investment, with their main focus being on hands-on learning and workforce preparation for STEM careers.

The second way colleges can increase enrollment rates is by tackling rising tuition costs, with offering strategic financial aid being key to helping lower-income families pay for college. For example, according to The Chronicle of Higher Education, Georgia State University Panther Grant gives students small “micro-grants” of $900 to students who display financial struggles without them even applying. 86% of grant recipients go on to graduate, significantly increasing retention rates. Other ways to help lower tuition costs include making it quicker to complete a degree, such as how Ivy Tech College allows students to take extra credits without an extra cost.

With enrollment rates declining, it’s become more important than ever for colleges and universities to revise their student recruitment methods, adapting to new student interests and expectations. There is hope for a rebound in NJ at least, as shown by Montclair State University, Georgian Court University, and Ramapo College. While their overall undergraduate enrollment rates were down, their applications and freshman admissions were up for Spring 2022. Their administrators express confidence that Fall 2022 enrollment rates will show steady growth. Higher education is undergoing one of its toughest tests yet. With a proper plan and enough time, it’s a test which it should pass with flying colors (and without any cramming the night before hopefully).

SCG Advertising + PR has been supporting higher education for 25+ years with advertising, marketing and public relations services.

Our Education Experience

Combatting The National Teacher Shortage

The national teacher shortage the country is facing is well known by now, and many states are scrambling to find ways to fight it, New Jersey included. Some states, like California and Arizona for example, have resorted to lowering the barrier to entry for teachers, including removing testing requirements or even no longer requiring a college degree. While strategies like these may get more teachers in the door, they don’t address the fundamental problems which are driving teacher shortages, such as a lack of young teachers applying.

Here in New Jersey, school districts are facing that exact issue. Some school districts in New Jersey have a reputation of being unwelcoming to new teachers fresh out of college, as well as younger teachers as a whole. According to a report from NJ.com, younger teachers face an uphill battle when starting out their careers in NJ schools. For example, some NJ schools are limited by inflexible employment options which favor seniority over merit/talent. This is a major issue, as studies show younger teachers favor job mobility and flexibility over stability. Some NJ school districts will take away a teacher’s tenure rights and even pay status if they switch jobs, discouraging mobility.

Furthermore, younger teachers tend to have a decent amount taken out of their paychecks. According to the Sunlight Policy Center, new teachers are forced to join the New Jersey Education Association (NJEA) and an NJ state pension plan, which combined take away around 11% of their pay each year. And when pay increases do occur, they usually favor older teachers and seniority rather than potentially younger teachers who have more talent.

Some of these issues may discourage younger talent from applying to certain school districts. Here are some tips that come from the Sunlight Policy Center and educators themselves that can help schools across the country improve their teacher recruitment:

  • Make teaching more open to new teachers and college graduates, who favor mobility and career ladders over stability. You can also amend current policies which could potentially discourage newer teachers from applying.
  • Offer more competitive benefits packages and salaries to incentivize teachers to apply.
  • Explore options under the Every Student Succeeds Act (ESSA) to see if you can provide your school with more/better resources to attract and retain teachers.
  • Offer professional development opportunities to teachers to help them refine their skills, such as workshops, seminars, and more. This could be a big selling point to younger teachers.
  • Go to colleges where soon-to-be graduating teachers will be leaving and looking for work. This is a good place to find talent. For example, handing out flyers and pamphlets at teacher fairs or giving them to career advisors at universities can help boost recruitment efforts.
  • Reach out to old teachers who may have left for a specific reason, and see if they would be interested in coming back. Sometimes teachers leave for a very specific reason, such as having a conflict with a certain administrator. Check in on them and see how they’re doing. Even if they’re not interested in coming back, they may have friends who are looking for work and seek them out.
  • Job boards are a great way to attract candidates who wouldn’t normally be able to attend the local job fair. They greatly extend your recruitment reach.
  • Start the recruitment/hiring process as early as possible. Studies show that schools that start earlier often receive more qualified candidates.

Schools in New Jersey, as well as across the country, are facing teaching shortages that threaten their ability to provide quality education to their students. Instead of using strategies that may only address the surface of the problem, schools should be focusing on methods that will tackle the problem on a fundamental level.

SCG Advertising + Public Relations is a long-standing, woman-owned, full-service advertising agency headquartered in New Jersey. We have a vast amount of experience in the education space, working with hundreds of private, public, and charter schools across the country to recruit both students and faculty. 

Tips for the Upcoming School Year

We’re in the last few weeks of summer, and preparations for the new school year are ramping up. And it’s not just students going back-to-school shopping. Teachers too are planning out their lesson plans and schedules. Whether you’re going back to the same school or applying to a new one, here are some tips that teachers can use to help prepare themselves for the new school year:

  • Don’t just be a teacher. Be a learner as well. Go over the last school year to see what worked and what didn’t. Did a certain lesson plan go over really well with the students? Bring that over to this year. Did students struggle with a certain chapter of the textbook? Maybe revise that for this year so the information is conveyed better.
  • Being a learner also includes being a student yourself. Consider exploring professional development options, such as webinars, online courses, and more. Your school may even offer development opportunities themselves. Developing yourself professionally will allow you to improve your skills and talents even further, making you a more valuable teacher and job candidate.
  • Know how you’re going to communicate with parents, students, and colleagues. Being prepared with all the proper technology and apps is crucial to effective communication. Does your school use Google Classroom, Zoom, or something else entirely? Find that out now and make the necessary preparations to get these set up so they’re ready on the first day of school.
  • Set defined goals for yourself for the upcoming school year. Planning out how you want to change or improve gives you something to work towards. Make sure the goals you set are specific and achievable. Vague or abstract goals will only confuse you and not give you a clear path to achieve them.
  • If you’re applying to a new school, make sure your resume is updated with all the new relevant skills that will make you stand out and be competitive. Did you teach a remote class during the pandemic? Put that on there. Being digitally savvy as a teacher has become more important than ever with the increased demand for remote/virtual learning. If you recorded some of these lessons, include them in your portfolio to show schools the lessons you taught.
  • Be willing to work as a guest teacher or substitute. If you’re just starting out, taking smaller positions such as these will give you valuable classroom experience, and allow you to network.
  • Use job boards to find job openings you may not have found on your own. They can greatly expand your job search and allow you to apply to even more schools.

The start of a new school year is always an exciting time. Not just for the students, however, but for teachers too. Teachers get to resume teaching, meet new classes, and have the opportunity to revise and improve their skills further. Follow these tips to get started on the right foot and have a successful year!

 

SCG Advertising + Public Relations is a long-standing, woman-owned, full-service advertising agency headquartered in New Jersey. We have a vast amount of experience in the education space, working with hundreds of private, public, and charter schools across the country to recruit both students and faculty. 

 

So much fanfare over the July Jobs Numbers. Here’s what recruiters need to know.

 

It was the first Friday in August. The time slowly inching its way to 8:30 am. It’s only a few agonizing minutes until the jobs number was to be revealed just as it is the first Friday of every month.

The experts had weighed in with their forecast and were bracing the nation for a disappointing number – having predicted 258,000 jobs. This was a precipitous drop from the 372,000 jobs created in July.

A decline in the jobs created made total sense to SCG.  We have closely tracked layoffs for select industries over the past nine years. Those layoffs have been increasing every month over the past 6 months. Those eventually should be reflected in the unemployment rate. Right?

But then, the Bureau of Labor Statistics threw us all a huge curve. They announced the number for jobs created was over double that the experts had anticipated. It came in at an unbelievable 528,000. That’s more than twice the initial projection.  With 3.5% unemployment.

 

What goes into the Bureau’s calculations?

The report is based on two separate surveys.

The Establishment Survey gathers information from 145,000 nonfarm businesses and government agencies for some 697,000 work sites and about one-third of all payroll workers.

This data estimates the number of people on payrolls in the U.S. economy, the average number of hours they worked weekly, and their average hourly earnings, along with several versions of the unemployment rate.

 

The Household Survey is based on monthly interviews of 60,000 households by the Census Bureau. The participants provide their employment status during the week including the 12th day of the month. The BLS measures unemployment by dividing the total number of unemployed people looking for a job by the total number of individuals in the labor force.

 

Here is the official report based on the July data.

 

As impressive as that number is, we cannot sustain 500,000+ new jobs per month with the 3.5% unemployment. Just not enough talent. That is made even more difficult with the nation’s continually shrinking Employment Participation Rate (the percentage of individuals who are working or actively looking for work).

 

Why is this report essential to recruiters?

SCG sees this information as vital insight into the competitiveness of the recruitment landscape. As the market tightens, recruiters face the need for increased budgets and use of invasive strategies to reach the more plentiful – but less persuadable – passive candidates.

 

For a deeper dive…

Open the July Data link above and scroll to the bottom. You will find access to about 25 in-depth reports.

SCG Advertising + Public Relations is a woman-owned, full-service advertising agency headquartered in New Jersey with expertise in recruitment advertising. If you need assistance, contact your Account Manager or visit our website at: SCGADV.COM

Offices: NJ | NY | FL | SD | GA | PA | OH | AZ

Pool Tables & Snack Machines Are Out: Remote Working Is The #1 Perk Employees Want

remote workRemember the days when in-office happy hours and pool tables were the coolest thing employers could offer? It’s 2022 and employers need to find new ways to attract and retain workers in a post-pandemic world. Today, the comfort and convenience of working from home – wearing sweatpants all day and avoiding long commutes – is the top benefit employees value most.

The Covid-19 pandemic showed us that many jobs can be performed from home, and employees aren’t ready to go back into the office. Before Covid (BC), work from home was a nice perk to have, but the standard corporate line was that productivity and collaboration suffered. When we were forced to adapt for our health and safety to maintain operations, we quickly realized that for most office workers who spend the majority of their day on computers or phone calls, we could, and we liked it.

BY THE NUMBERS

Here are some interesting remote work statistics that show us where we are today:

  • 86% of employees want fully remote or remote first work environments (Buffer, 2022)
  • 66% of employers are redesigning their workplaces to accommodate hybrid work arrangement (Microsoft Work Trend Index, March 2021)
  • 58% of currently remote workers would look for a new job if they were required to return to the office full-time. (Robert Half, 2022)
  • 24% of workers would be willing to take a 10-20% pay cut to work remotely (FlexJobs, April 2021).
  • 55% say they work more hours remotely than at the physical office (Owl Labs, 2021)
  • 70% said a permanent remote job would have considerable improvement or positive impact on mental health (FlexJobs, April 2021)

PROS & CONS

Remote working offers many advantages to employees including no long commutes, cost savings, work day structure and geographic location. On the flip side, concerns noted include inability to unplug from work, loneliness, less collaboration with coworkers and needing to schedule everything. Managers are concerned about career progression and mentorship especially with early career and entry level workers.

While come companies like SAP, Spotify, Salesforce, and Twitter have embraced the new normal and adopted permanent fully remote or hybrid work models, according to recent Microsoft survey, half of company leaders already require, or plan to require, that employees return to work full time in the office within the next year. Bank of America announced that as of March 1, 2022 all employees will have to return to the office five days a week. In an effort to ease the transition back, they are trying to make it fun, resorting to lots of staff lunches, birthday cupcakes and creating meetings they hope staff would be interested in.

WHAT CAN EMPLOYERS DO?

In an already tight labor market, employers now need to compete with organizations that offer fully remote or hybrid work models. Remote workers also allow employers to reach a wider talent pool geographically.

For employers who are unable to offer fully remote workplace, it’s time to get creative and find new ways to support employees and their overall well being. Options to consider include:

  1. Hybrid work model. (This can be defined in different ways including custom schedules in and out of the office, required in-person team meetings, etc)
  2. Flexible schedules. (Four day work weeks, flexible start and end times, etc.)
  3. Child care assistance
  4. Commuting incentives
  5. Increased paid time off
  6. Paid family leave
  7. Offering mental health days
  8. Investing in company culture and workplace experience

I was one of those lucky workers who was able to work from home throughout the pandemic. When it was first announced March 2020, I welcomed it, thinking I’d be home for 3 weeks, a month tops. On top of that, I was 7 months pregnant and it was the perfect time to nest. Thanks to my employer’s flexibility, even after my maternity leave ended, I was able to enjoy extra time home with my newborn daughter while balancing my work demands. While it has been a transition returning to the office, I embrace the opportunity to collaborate in person and socialize with my colleagues once again. And to be honest, I’ve never fully gotten used to zoom meetings.

Would I have been able to work remote as my first job out of college? I am so grateful for the mentorship and role models during my first years working. I met some of my best friends that I still have to this day. I would regret not having those opportunities to learn, grow and meet people.

References:

https://www.unum.com/about/newsroom/2020/december/work-perks

https://www.bizjournals.com/sanfrancisco/news/2022/03/31/bank-of-america-exec-on-return-to-office-plan-we.html

https://buffer.com/state-of-remote-work/2022

https://www.flexjobs.com/blog/post/remote-work-statistics/

Manufacturing Employment. A short history.

There was a time – actually, spanning many decades – when manufacturing led the growth of the world’s largest economy. Back in 1920 approximately 40% of the jobs in the United States were in manufacturing and other blue-collar fields. Today, that figure is only about…wait for it…20%. Quite a fall.

Equally astounding is the fact that manufacturing as a share of the nation’s Gross Domestic Product (GDP) has dwindled from 27% to 12%. It’s no wonder there have been so many layoffs in manufacturing.

What goes up must go down.

Manufacturing employment reached its zenith in June 1979 with 19.6 million jobs. But by June 2019 that had dropped to only 12.8 million – 35% from the peak hit 40 years ago.

Why were there so many job losses?

The reality is that the United States was slowly moving to service-related industries.    Under those circumstances corporations found it more appealing to ship the manufacturing overseas where it was cheaper. Think what impact there was on manufacturing jobs in America when Chinese imports quadrupled from 2001 and 2004.

Also, manufacturing as an industry found they could keep their production up as they became more and more automated. Of course, this meant fewer workers were needed.

40 years of job losses.

Let’s take a deeper dive into the 40-year period from 1979 to 2019 when job losses were steady and as dramatic as the job gains were in the prior 40 years. In 1979 manufacturing captured 22% of the nation’s job market. By 2019 that percentage dropped to only 9 percent. (Yikes!)

During the period 1979 to 2019 manufacturing lost 13% of the total nonfarm job market. Fortunately, those in the job market had adjusted their skills along with the job market (not surprising) and the job gains in the service-providing industries filled the void left by manufacturing.

Manufacturing jobs during the pandemic.

So, how did the pandemic affect manufacturing? Not bad. In comparing February/March 2020 to 2022 employment dropped from only a smidgen from  12,717,000 to 12,657,000. Unemployment fell dramatically from 4.1% to 3.1%. but Job Openings more than doubled at 389,000 to 802,000.

What are the predictions for the future?

Bureau of Labor Statistics is predicting mild employment growth in the manufacturing sector. Only about a 5% increase in manufacturing employment in the decade stretching from 2020 to 2030.

It will be interesting to see how accurate that prediction will be. Of course, in the same table, the BLS is showing a small drop in employment in the Federal government. I’ll believe that when I see it. So, we’ll see how the predication for manufacturing plays out.