news

Michigan's labor pool stronger, small businesses say

Published on: 02/22/2017

LANSING – The majority of small business owners and chief executives are satisfied with Michigan’s labor pool after years of saying they struggled to find qualified employees after the Great Recession.

Of the 636 small business leaders surveyed in the Michigan Future Business Index, 51% said the labor pool was pretty good or excellent, a 5% increase from December 2015’s report.

“It’s getting a little better,” said Chris Holman, CEO of Michigan Business Network, which created the report. “We’re in clear water now and will start sailing faster now.”

Holman said the talent pool was lacking after the Great Recession because many skilled workers were laid off and left the area to find better jobs, creating “a talent vacuum.”

When small businesses got back on their feet and started hiring again, the talent pool wasn’t as skilled and needed training, he said.

That’s when organizations such as Pure Michigan Talent Connect and Michigan Works! stepped up their training initiatives.

In 2015, for instance, Capital Area Michigan Works! partnered with nearly 700 employers for recruiting and retention strategies, according to its annual report. It spent $688,444 through its Skilled Trades Training Fund, which trains people in welding, information technology, robotics and programming, to name a few.

“We can spend up to $5,000 to train each worker for an in-demand job,” said Jim Bunn, business services liaison for CAMW! “Once they go through the program, they don’t have a problem finding a job. They get snatched up right away.”

That's one of the reasons it is still a challenge to find skilled workers, however, said Genevieve Miller, human resources and safety director for Holt-based Regional Steel Distribution Center of Michigan, which supplies metal coils and blanks to auto manufacturers to make doors, hoods and fenders.

"Because the rebound in the economy, everyone is hiring the skilled workers," said Miller, whose company employs 250 people. "The job market is so tight right now."

Miller said RSDC has partnered with CAMW! for years and recently hired some of the people who had been through the training programs to become press or forklift operators. RSDC provides training and gets reimbursed by the Skilled Trades Training Refund through the state.

"Michigan Works! does a good job with what they have," she said. "They work hard at it."

Holman said these programs are producing results, explaining the more favorable review by small businesses.

Additionally, two-thirds of small business leaders are satisfied with the state’s economy. Holman said they feel less risk when investing in internship and job training programs themselves.

“Small businesses are realizing they have to jump in and venture into intern programs to train people,” he said.

Their satisfaction with the economy will also convince them to stay in the state and retain jobs.

"These businesses see Michigan as a good market for their services," said Mike Britt, president of Lansing-based Accident Fund Insurance Co., which sponsors the report. "Overall it's a good sign"

The ability for small businesses to keep filling their ranks with qualified workers, however, will remain a challenge and focus for the industry, Britt added.