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He skipped College to Become a Repairman. He’s on His Way to $175,000 a Year. (WSJ)
What they’re saying: The manufacturing industry is facing a skilled labor shortage, but a new generation of workers is finding rewarding careers in the trades.
- The article highlights the journey of Louie Leonardo, a young apprentice HVAC technician, who is drawn to the hands-on work, competitive wages, and job security offered by the trade.
- As more young people reconsider the traditional college-bound path, vocational training and apprenticeships are gaining popularity.
- Our nation’s manufacturers must capitalize on this growing interest by investing in robust workforce development programs to cultivate the skilled talent needed to drive our economy forward.
Manufacturing Institute Solution: The Manufacturing Institute’s training program, FAME – Federation of Advanced Manufacturing Education, provides individuals with an opportunity to obtain training and education while receiving on the job training with real world work experience while getting paid. Participants earn a FAME Advanced Maintenance Technician certificate as well as an Associates degree, all while potentially graduating debt free. Participating manufacturers benefit by helping train the high skilled technicians to operate in modern manufacturing. Founded by Toyota in 2010 and led by the MI since 2019, FAME now has over 40 chapters in 16 states and over 450 engaged employers. FAME can be a resource for your company in meeting your workforce needs. To learn more, reach out to the FAME National Director, Tony Davis at [email protected].
The True Cost of Layoffs (Bloomberg)
What they’re saying: Meta’s November 2022 layoff of 11,000 employees cost $975 million in severance, but severance is just one part of layoff expenses.
- Layoffs also incur indirect costs such as decreased productivity, increased voluntary turnover, higher unemployment insurance taxes, and legal fees.
- Research shows productivity drops significantly after layoffs as remaining employees deal with anxiety and low morale, sometimes costing companies over $50,000 monthly per 100 employees.
- Layoffs can also lead to higher voluntary turnover, adding substantial costs for hiring and training replacements.
- Unemployment insurance tax rates usually increase following layoffs, adding further financial strain. Legal and statistical analyses are often necessary to avoid discrimination lawsuits, which also adds to the overall cost. Research suggests companies using alternatives like temporary furloughs perform better long-term than those cutting staff immediately.
- Despite the immediate financial relief from layoffs, the broader impacts can undermine the intended cost-saving measures.
The Cities Where 20-Somethings Are Still Getting Hired (WSJ)
The bottom line: In a challenging job market for new graduates, smaller Southern cities like Raleigh, Austin, Baltimore, Atlanta, and Charlotte offer promising opportunities due to high hiring rates, good salaries, and affordable living.
- A study by ADP found these cities most favorable for recent grads, contrasting with lower-ranked cities like Salt Lake City and Seattle.
- Despite a downturn in white-collar hiring and a shrinking number of entry-level roles, Southern cities benefit from a concentration of tech, health, and finance firms.
- Graduates are encouraged to seek regions where job prospects and cost of living align favorably. Examples include Ryan Garwood and Gabrielle Myers, who found financial and social advantages in Austin and Charlotte, respectively.
- Local initiatives in cities like Atlanta and Austin aim to attract young professionals by highlighting diverse career paths and vibrant social scenes.
- This strategic relocation can help new grads thrive financially and professionally.
What the MI is doing: The Manufacturing Institute’s student engagement initiatives aim to hone STEM skills, introduce students to career pathways in modern manufacturing and clarify misperceptions about these careers by providing educational tools and experiences to youth, parents and educators. Check us out!
