Editorial: Education crucial to filling good jobs

Montana job growth slowed in 2002, but bucked the national trend of actually losing jobs, according to the "Profile of the Montana Worker 2003" released last week by the state Department of Labor and Industry.

Billings Gazette opinion

The Montana unemployment rate was the lowest since 1970 for a second consecutive year. Per capita personal income increased 3.6 percent in Montana, the second highest increase among the 50 states and exceeding the rate of inflation, which was 1.6 percent.

With those rosy-sounding numbers the state’s employment outlook ought to be sunny. But in the big picture, Montanans still earn only 81 percent of the national average income.

Much of the job loss nationwide over the past couple of years had been in manufacturing — 2.7 million factory jobs lost since the recession began. Montana’s manufacturing sector is relatively small, but it has seen a loss of about 3,000 jobs in the past three years, according to the U.S. Bureau of Labor Statistics.

Fewer manufacturing jobs

In 1970, manufacturing accounted for 8.4 percent of Montana jobs. That percentage has gradually declined to 5 percent in 2001, according to state statistics.

U.S. factories are under intense pressure from cheap labor abroad, worldwide commodity prices, theft of intellectual property rights and the deliberate undervaluing of some foreign currencies. These international trade issues must be addressed and should be on the table for the World Trade Organization in Cancun, Mexico.

But one key problem of manufacturers must be solved at home: educating new skilled workers.

"To continue to succeed, U.S. manufacturers must compete less on cost than on product design, productivity, flexibility, quality and responsiveness to customer needs," the National Association of Manufacturers reported earlier this year. "These competitive mandates put a high premium on the skills, morale and commitment of workers."
More information

National Association of Manufacturers on the Web at http://www.nam.org.

Montana Manufacturing Extension Center on the Web at http://www.mtmanufacturingcenter.com.

The U.S. manufacturers foresee a critical shortage of workers with the skills needed to keep pace with "relentless advances in technology." They project the baby boomer retirement will produce a need for 10 million new skilled workers by 2020. "Currently, the only source of new skilled workers is from immigration," the manufacturers reported.

Despite layoffs, 80 percent of manufacturers surveyed this year said they are dealing with "a shortfall of highly qualified employees with specific educational backgrounds and skills."

Research by the National Association of Manufacturers and Deloitte & Touche found that U.S. students have negative perceptions about manufacturing and don’t see a career in manufacturing as meeting their goals.

The study showed that the U.S. educational system exacerbates this problem because it sends more than two-thirds of high school graduates to college, but half of them drop out.
Alternative training needed

Those college dropouts don’t get help to enter alternative post-secondary education. "Meanwhile, many well-paid jobs remain unfilled, including those requiring two- and four-year technical degrees or short-term skill certificates," the study concluded.

With President Bush promising to appoint a cabinet position to work on boosting the manufacturing sector, what opportunities does Montana have to create or attract good manufacturing jobs?

Education may be key. Montana has many successful manufacturers in fields ranging from metal work to pasta. The operations are small. But they all need workers with the right skills.

Manufacturers have launched a campaign to educate young people about manufacturing careers. Here’s an opportunity for education and business to partner — right here in Montana.

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