The stories behind the statistics

Employment is about people, not numbers

Whoever said, “There are lies, damned lies, and statistics,” must have been contemplating the unemployment rates regularly published by the state and federal governments. According to the latest figures, Washington’s unemployment rate is 7.1 percent and Whatcom County weighs in at 5.9 percent.

If you think that these figures tell the whole story, then you probably think that all those people laid off from Boeing and Georgia-Pacific have quickly found new jobs. The fact is, those figures reflect only those who have filed for unemployment benefits. They don’t take into account all those who are, for one reason or another, ineligible for unemployment, have used up their benefits, or have simply given up seeking a job. Neither do the figures reflect those who have lost high-paying jobs and are working far below their skill or educational levels. The Ph.D. who drives a taxi and the millworker who is flipping burgers trying to make ends meet aren’t reflected in the figures.

At the same time, the stock market has lost more value, on an adjusted basis, than it did prior to the Great Depression of the last century. So why aren’t executives flinging themselves out of windows or selling pencils on streetcorners? The simple answer is, that was then, this is now. The reality is far more complex.

Much of the difference can be laid to the ongoing change from an industrial economy to an information economy. Throughout much of the 20th century, you could graduate from high school and go straight to a job at, say, Georgia-Pacific or Intalco, that would pay you what is now called a “family wage” for the foreseeable future. Those jobs continue to be eliminated as automation and cheap foreign labor become more widely available in an economy that is no longer local, but global.

Concerns about dwindling resources and environmental degradation help propel the search for a more sustainable economic base and mortally wound companies that can’t adapt. The days of family wage jobs on a high school education are rapidly drawing to an end and that is a major part of the employment picture in Whatcom County. The harsh reality is that there are a lot of college graduates who are not earning a family wage, either.

It’s busy at the local Employment Security Department (ESD) offices on Prospect Street in Bellingham. But, according to business services liaison Sharry Wade, the outlook is not nearly as dismal as it was immediately following the Georgia-Pacific (G-P) and Intalco layoffs. ESD runs the WorkSource program, which lists jobs on computers and the Internet. The bulletin board where jobs used to be posted is a thing of the past. The fact that job seekers need at least minimal computer skills in order to even search for employment is a sure sign of the proverbial paradigm shift.

While most of jobs listed on the WorkSource site pay better than minimum wage, many of them run in the $8.50 - $10.00 per hour range. That is decidedly not a family wage. New employers like the Lynden Safeway and Bellingham’s Lowes Home Improvement Center are helping offset lost jobs, but not family wage incomes.

The new technology has made the ESD much more efficient at matching employers with employees. Whereas it used to take two weeks to recruit a suitable employee pool for a business client, it can now be done in a day. There was a period of caution following last September’s terrorist attacks and the subsequent nervous economy, according to Wade, but things are beginning to loosen up a bit. The WorkSource site has gone from listing an average of one new job a day to listing an average of four or five. Where once there were about 200 listings for Whatcom County, there are now about 300.

“If I didn’t watch the news,” said Wade, “I wouldn’t suspect the stock market woes.”

Once again, the statistics are misleading, in more ways than one. With construction leading the way, Whatcom County seems to be bucking the nationwide trend of increasing joblessness. On the other hand, a lot of those jobs listed on the internet and in the paper are not really available.

Legal requirements force employers to advertise jobs that often are filled through internal promotion. This has created enormous frustration among many job seekers who often spend 8-10 hours meeting complex application requirements for jobs that are, in reality, already filled.

Just a few months ago, the WorkSource office was having trouble recruiting employers for its regularly scheduled job panels. The most recent panel attracted eight employers. Another major shift has to do with who is in the catbird seat when it comes to jobs. For most of the 90s, it was employees. There simply were not enough workers to go around, especially in the skilled positions. Now, it’s an employers’ market and human resources (HR) departments can be a lot more selective.

One of the biggest gaps is in worker training. Even minimum wage jobs often require skills that are not always taught in school. The Northwest Workforce Development Council is joining with the ESD in researching training needs. While some of these needs are being addressed by Whatcom Community College and Bellingham Technical College, it is becoming increasingly apparent that public/private partnerships will be necessary to meet these needs in the future. This is discussed in more detail in this month’s accompanying feature on higher education.

WorkSource is also witnessing an increase in the numbers of workers seeking second or even third jobs to make ends meet. Remember that taxi driver with the doctorate? He is filling a job that should, in a perfect world, go to a worker with skills more appropriate to the position. The oversupply of workers in the current market, however, enables employers to hire people who are overqualified while still paying the same wages. This is a result of Whatcom County workers being generally overeducated for the available employment base.

Skyrocketing medical costs are becoming an increasingly influential factor in the employment picture. Many freelancers, consultants, and other self employed workers are finding themselves unable to afford basic medical insurance. Many are seeking jobs that offer benefits and are willing to accept substantially reduced salaries to do so.

Michael Moorheart, the owner/operator of Everyday Staffing in Bellingham, cites yet another factor in the changing employment scene.

“Employers are getting smarter about the size of their staffs,” he said, “and the options they have available. They are filling many jobs with temporary workers who don’t have to be given benefits. The agency takes care of L & I (Labor and Industries), unemployment insurance, and other employer expenses. This is especially valuable to employers who are in seasonal or project-oriented businesses.”

Although there are fewer permanent jobs available, temps who perform well can often move into permanent positions. Meanwhile, the employer saves money both by maximizing the efficiency of his or her staff and by utilizing the agency as a human resources department.

Moorheart emphasizes that he is not running an agency for temporaries. He wants only workers who are seeking permanent positions. Everyday Staffing is also not interested in anyone with drug or alcohol problems. By providing employers with a solid employee base, he has carved out a very successful niche for himself in the employment market. Moorheart now has offices in Mt. Vernon and Marysville and is looking into locations in Lynnwood and Kenmore.

Employees at Everyday Staffing average only 100 hours in temporary positions before moving on into permanent employment, defined by Moorheart as 1,200 hours per year or more. He claims that only one in 10,000 workers gets permanent work through commercial employment agencies while Everyday Staffing’s average is 1 in 500.

“Service is the key,” said Moorheart. “You have to be good to both the workers and the employers. This is no social club, but the workers need to feel at home here. They put in long days, often from 5:30 in the morning to 8:00 at night. These are hard workers who want to succeed.”

Another company that has carved out a successful niche is Mid-Columbia Engineering (MCE). As the name suggests, the firm started out providing technical services, but has branched out into staffing as well. MCE provides temps at all levels ranging all the way to the technical and professional levels. Other agencies often refer such employees to them since they have the field pretty much to themselves.

Michael Reyes, staffing specialist at MCE, feels that Whatcom County’s position “off the beaten path” enables the local economy to better adapt to the national and global fluctuations.

Reyes insists that “Good companies are always looking for good people.” His job is to be the matchmaker. MCE certainly felt the impact of 9/11 and the layoffs at G-P and Intalco. Business dropped by about 20 percent, but is slowly returning to normal.

“If things were truly desperate,” said Reyes, “our phones should be ringing off the hook. They’re ringing, but not at an unusually high rate.”

He admits that some of that may be due to the fact that some workers have given up seeking employment locally and have moved elsewhere.

That possibility haunts Al Ebsch. The laid-off software developer loves the Whatcom County lifestyle, but is coming to the end of his unemployment benefits. He considers himself luckier than many since his wife works and he still has some savings to fall back on.

Ebsch and several colleagues who were victimized by the dot-com bust have found an innovative way to market their skills. Calling themselves Whatcom County Professionals, they have pooled their resources to produce a website (wcpros.com) and have taken out ads in local business publications. Their motto: “We live here, we want to work here, too.”

The ten members of the pool offer such skills as software development, quality assurance, website design, technical support, graphic design, project management, data analysis, business management, retail/wholesale, accounting, import/export and customer service. Since being laid off in the software industry, they are nearing the end of their eligibility for unemployment insurance (UI). Some are contemplating moving, others are considering $8 - $10 an hour jobs.

Ebsch says the 5.9% unemployment figure for Whatcom County is a joke. If unemployment is really that low, he reasons, why can’t he and his colleagues find employment that fully utilizes their skills? The current market enables industries to take advantage of the Whatcom County workforce, Ebsch believes.

“They can get high-tech work for slave wages,” he said.

Ebsch and his colleagues face an equally tough time from entry-level employers. None of them want to hire workers who are overqualified and who will likely leave as soon as they have a shot at something better.

Since posting the website and starting the advertising campaign about three months ago, the response has been disappointing, but it has generated some media attention. Most of the people in the pool have several skills. Ebsch feels sorry for those who have spent their entire careers in software and have nothing to fall back on.

That is one of the things that workers are going to have to change, according to Dr. Sylvia Thorpe. She is a diplomate in clinical psychology, but took her own advice and became a certified career counselor. Thorpe can not only help displaced workers deal with the transition, but help them deal with the stress of the situation, as well.

“People are more diversified today in their income and investments,” Thorpe said, “than they were in 1929. We are more resilient.”

That helps explain why we will likely avoid a repeat of the Great Depression. It also offers a lesson in what workers need to do with their job skills.

“The single career is a thing of the past,” Thorpe explained. “It’s like a monoculture tree farm, subject to natural disasters. We can’t put all our eggs in one basket.”

Most workers in the current economy will have three careers by the time they reach their mid-thirties. Successful workers will manage those careers, diversify their skills, and network, network, network.

Thorpe points out that many employers are also recognizing the value of versatility and cross-training workers. That way, the company can remain productive even if a key worker is lost. The long-time employees of G-P and Intalco never had these advantages. Suddenly, they were 55, unemployed, and only had a high school education.

Helping those employees identify the skills they didn’t know they had is part of Thorpe’s mission.

“The first things to ask,” said Thorpe, “are ‘What do I have?’ and ‘Who do I know?’ Then find a niche and fill it.”

Many displaced industrial workers have home repair skills. Empty-nest homemakers have child and elder care abilities.

“Look at your personal skills,” said Thorpe. “You have a world of skills to offer and there are a host of jobs out there that you can develop.”

One of the handicaps suffered by displaced workers is that they tend to go into what Thorpe terms “crisis mode.” This engenders a lot of fear and tunnel vision. It is vital, she insists, to get outside perspectives on your situation. Network, network, network.

The good news is that we are much more accustomed to change than were our forebears who weathered the Great Depression. We change schools, homes, and even parents. For better or worse, this has made us much more adaptable. That has been intrinsic to our success as a species. It seems to be helping us through our current case of economic yips.