FALLING BEHIND IN JOB GROWTH: Is semi-skilled labor the answer?

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1 Technical Brief FALLING BEHIND IN JOB GROWTH: Is semi-skilled labor the answer? Lydia Quarles, J. D., Senior Policy Analyst, Stennis Institute of Government quarles 2015 In late November, 2014, the Labor Department issued its new job report. The general news for the American economy was promising; the news for Mississippi was not. In 34 states in the US, unemployment rates declined in October. In 15 states, monthly payroll employment increases occurred which were large enough to be considered statistically significant. Mississippi, however, has trailed far behind the rest of the nation in recent months, adding an average of less than 300 jobs per month since last October. The Labor Department noted that our state s jobless rate is significant. We rank at #2 in the nation in jobless rates. The only state in the nation that has a greater jobless rate than Mississippi is Georgia. Clearly, adding jobs and lowering unemployment rates are not easy tasks. They are tasks that take combined efforts and, frankly, there is no easily replicated model for success, either in Mississippi or any other state. But we continue to try. Mississippi has long been limited by the fact that a significant proportion of our labor force have been, and remain, unskilled. The legislature has attempted to address this issue in session after session, with some results faring better than others. But as we move into the 21 st century, our unskilled labor force continues to be a burden on our economic prosperity and future.

2 The Governor has a project -- a pilot project, actually -- which, if satisfactory, could be replicated. His project is to provide free tuition to Mississippi community college students who earn a technical diploma in high school and was able to graduate with a C average. The project has made it to the Governor s 2015 proposed budget. The cost for this project: $3 million dollars, which is based on the number of students in Mississippi who are engaged in technical programs in high school. This amount could pay a full year s tuition for about 1, 200 students who enroll in community college to further their technical education. According to the Governor, a more skilled workforce is what business owners and manufacturing companies are looking for in Mississippi, and is the first question that those considering relocating to Mississippi or otherwise investing here ask him. Whether this project will be funded, and whether it will make a difference, is left to be determined. But if it is funded, and if it does make a difference, it is a step in the right direction for job growth and economic growth as well. Lawmakers are thinking in terms of making technical skills (as well as academic course) more affordable to Mississippi students. SB 2080, if adopted, would amend of the Mississippi Code of 1972 to provide that Mississippi students who have attained at least a 3.0 grade point in high school and maintain that average in college shall be eligible for a scholarship equal to the full cost of tuition at any state institution of higher learning or public community college. This in some ways correlates with the Governor s pilot project, which, if successful, could be refined and replicated. The funding of either the Governor s pilot project or SB 2080 could be a large step to job preparation as Mississippi seeks more industry. While the Governor probably does not necessarily want to be paired with President Obama, the President announced on the Friday before the State of the Union, at a community college in Tennessee, that he is proposing that the Congress fund a plan to afford free tuition to each student in American who would like to attend community colleges. He reiterated this proposal in the State of the Union speech. While the fiscal theory is unclear, the President proposes to cover half-time and fulltime students who maintain a 2.5 grade average and make steady progress toward completing a program -- either academic or occupational. The federal government, in the President s proposal, would cover 75% of the tuition, while participating states would cover the remaining 25%. Should the proposal be funded, and should

3 Mississippi choose to participate, this could extend technical training such as the Governor desires, without Mississippi taxpayers bearing the entire cost. Mississippi has a right to be proud of its community college system. According to The Best Schools, an organization that evaluates and rates educational facilities nationwide, two (2) of the top 50 community colleges in the nation are located in Mississippi: Pearl River County Community College (#29) and Mississippi Gulf Coast Community College (#45). See: In rankings established by Create a Career, Mississippi s Pearl River Community College is ranked #23 in the its list of best community colleges in the nation. For More Information see: CNNMoney reported last February that a survey by the Hechinger Institute of Columbia University Teachers College determined that approximately 30% of Americans with associate s degrees now make more than those with bachelor s degrees. This conclusion is corroborated by findings made by Georgetown University s Center on Education and the Workforce. An example is provided by our sister state, Tennessee. According to Georgetown, the average annual wage for graduates of Tennessee s community colleges is $38,948, which is $1,300 higher than the average annual wage for graduates of Tennessee s four (4) year institutions. Georgetown reports that the increase in wages for community college grads is being driven by a high demand for people with so-called "middle-skills", formerly called semi-skilled labor, that often require no more than an associate's degree, such as lab technicians, teachers in early childhood programs, computer engineers, draftsmen, radiation therapists, paralegals, and machinists. Mississippi has historically had a strong community college system. The state s need for middle-skilled employees in manufacturing, teaching and the ever expanding medical/technical fields can be filled by encouraging the nonacademics of us to consider technical training in lieu of a four (4) year degree. There s always the option of continuing an education later, and there is nothing shabby about procuring an associate s degree and a good job with reasonable benefits.

4 For more information on the use of credit and non-credit technical programs in the community college system, see:. GAO report on Public Community Colleges and Technical Schools provided to the Chairman of the Committee on Health, Education, Labor and Pensions, U. S. Senate, GAO Community Colleges and Economic Development, a report by the National Coalition of Advanced Technology Centers in collaboration with Workforce Futures, Inc., Volume 1, Number 2, of the National Coalition of Advanced Technology Centers Report Series. Chesson, J. Parker, and Rubin, Sarah. Toward Rural Prosperity: A State Policy Framework in Support of Rural Community Colleges. Policy Paper of the North Carolina Community College System and UNC at Chapel Hill

5 ABOUT THE AUTHOR Lydia Quarles is a Senior Policy Analyst at the John C. Stennis Institute of Government, Mississippi State University. She received her Juris Doctorate from Cumberland School of Law, Samford University, and her MA and BA from Mississippi University for Women. After over a dozen years in the private practice of law in Alabama and Mississippi, she joined the Mississippi Workers Compensation Commission as an Administrative Judge in Eight years later, in 2001, she was appointed Commissioner of the agency. In 2006, she resigned to join the Stennis Institute and return to private practice. Quarles was honored in 2006 by the American Bar Association s Administrative Law and Regulatory Practice Section, receiving the Mary C. Lawton Award for lasting contributions to the Mississippi Workers Compensation Commission in the areas of alternative dispute resolution and access for Hispanic workers. She is also a recipient of the American Society of Public Administrators Joan Fiss Bishop Award, honoring a woman who has promoted increased participation of women in public administration, exhibited a defined contribution to increase women s involvement in the public sector, and demonstrated innovative leadership and accomplished professionalism in her own public sector career. Recognized by Martindale-Hubbell as an AV rated lawyer, the highest peer-evaluated designation, she also holds the Martindale-Hubbell designation as a Preeminent Women Lawyers in America. ABOUT THE INSTITUTE Based at our state's land grant university, the Institute is often referred to as Mississippi's think tank, but the Institute is much more. We are frequently called upon to provide technical assistance and consultation to state officials, local governments and community leaders regarding political, governmental, and economic and community development matters. Our mission is to enhance the capacities of state and local officials to deal effectively with today's challenges regarding many issues. If the legislature needs a definitive study on the effects of a change in state law, a municipal government desires a compensation study or salary survey, or an association of government officials requests training on the latest legal or policy issues, the Institute responds with its wide variety of resources and capabilities. CONTACT INFORMATION John C. Stennis Institute of Government and Community Development 382 Hardy Road Mississippi State, MS Ph: Fax: Mailing Address: Stennis Institute PO Drawer LV Mississippi State, MS Mississippi State University does not discriminate on the basis of sex, race, age, sexual orientation, ethnicity, etc. Mississippi State University is an equal opportunity employer.

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