(November 25, 2002) -
You start by always knowing the local
unemployment rate (UER) and the peculiarities of your geography. The experts
will tell you that the UER is not very accurate and can be misleading. Just like
Alexa statistics, the UER is all we currently have. While we're fixing problems,
we can always hope that someone will improve the measurement process. Until they
do, let's use the tools and data we can get.
There are 29 Metropolitan Statistical Areas (MSA)
in the continental United States with UERs at 3.0% or under. While Fargo leads
the pack in the rush towards a desperate mess, College Station Texas is not far
behind. At 1.8% unemployment, The Bryan-College Station MSA has the second
lowest unemployment rate of any MSA is the country.
For years, all net new employees have come from
out of town. The areas growth, from 1990 to 2000 was about 18%, all from
external sources. To maintain itself, the area needs a constant influx of new
workers. Luckily, it lies near the Mexican border so that low level jobs
continue to be accomplished while the more formal citizens experience upward
mobility.
The scene in College Station will get
interesting. As a percentage of the population, Hispanics, who now account for
27%, will grow rapidly towards 50%. In order to acquire continued growth, the
city will simply be forced to find a way to import workers across the
border.
Since College Station was essentially developed
as a low cost electronics manufacturing arena, there is little chance that the
area will prosper with a cost increase approach. Raising wages simply makes the
town unattractive to the owners of the companies who placed their plants because
of the 'lower than national' wages.
When you look at extreme cases like Fargo and
College Station, it becomes quite clear how dependent each of us are on the
local labor market. Managing and influencing our supply sources is well beyond
what we've traditionally been asked to do. We hardly have the tool with which to
understand the problem.
All we can do from here is to urge you to take
charge of your department and figure out where in the world your help is coming
from. It's simply lazy to say that "the job board will take care of
it". They are as liable as not to become the movers of people who are in
play and not enough help to solve your real staffing issues. By grasping,
measuring, monitoring and understanding your local labor supplies, you'll be
able to take the next steps in advance of your (increasingly fierce) local
competition.
Start now while there's a lag.
-John
Sumser