BUSINESS

'Living wage' getting hard to earn in low-skill jobs

Bowdeya Tweh, and Josh Pichler

CIN

Working at the same company as his father wasn't initially part of Jordan Kiracofe's plan when he graduated from high school.

But Kiracofe, a 19-year-old from Eaton, didn't have enough money for college. So he has been working in an entry-level position at Mason screw machining company Ashley Ward for a few months – completing tasks such as watching a grinding machine to make sure it's operating properly.

"It's one of the few jobs that's a skilled trade that don't require a lot of upfront training," said Kiracofe, who later plans on enlisting in the armed forces.

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But jobs with good pay like the one Kiracofe has can often be difficult to find. While the outlook isn't as dismal in Cincinnati and Northern Kentucky as other markets, not having some form of post-secondary education or training is increasingly a guarantee of bleak earning and employment prospects.

In response, educational institutions, workforce training advocates and employers here are on high alert to ensure workers who land entry-level jobs can then move into higher-paying, more complex ones.

From 2013 to 2017, the number of low-skill jobs in the Cincinnati region will increase by 9,226, but only 5 percent of the growth (or just 437) will be jobs paying a "living wage," a new USA TODAY and Enquirer analysis shows. A living wage locally is defined as earning slightly more than $13 an hour. The determination of jobs that were low-skill was largely based on the amount of education needed to obtain work.

Roughly two of three low-skill jobs have a high risk of being reduced or entirely eliminated due to automation, according to projections made for USA TODAY. Of the 59 low-skill job categories where workers currently receive a living wage, nearly 70 percent are threatened by automation.

Among the positions at highest risk of being lost were couriers, door-to-door sales workers, switchboard operators and retail store workers. The probability score used to determine the risk of job loss through automation was generated by two University of Oxford researchers and any occupations that fell in the the top quartile were flagged as "high probability."

Barriers restrict opportunities for movement up ladder

Helping unemployed or underemployed people find work is the first step for many worker training organizations. But the second mission – and arguably more important one – is helping people move from low-end jobs to higher paying ones.

Hamilton County Job and Family Services plans to host 22 hiring events this month at the 1916 Central Parkway office in Over-the-Rhine. At the events, employers can meet job seekers, conduct interviews and hire workers. The average wage for the employers seeking to fill open positions is $11.38 an hour – just under that "living wage" measure.

The center does work with employers to find workers to fill medium- and high-skilled jobs, most of the positions are for entry-level positions because turnover is higher.

"Our greatest challenge is often finding a skills match for job seekers and employers," said Moira Weir, director of Hamilton County Job and Family Services, which operates OhioMeansJobs Cincinnati-Hamilton County. "Job seekers who can attend work reliably and have tenth grade math and reading skills have credible employment and training options open to them."

Among the barriers that Weir sees among people the center works with: Unable to reliably show up to work; a lack of transportation, professional certifications, or interviewing skills; prohibited criminal offenses; drug use; basic reading and math skills; or poor or incomplete resume.

"Any of the items above can limit opportunities for job and wage growth," Weir said.

Moving people up skills chain focus of taskforce

Business and community leaders say demand for skilled workers is outpacing supply, so helping the unemployed and underemployed develop new skills is critical.

Partners for a Competitive Workforce, which is managed by the United Way of Greater Cincinnati, estimates half of all local businesses expect they will struggle to find qualified workers in the next three to five years.

The group works to give job seekers access to those skills and services while creating a pipeline of talent to employers through programs that include the Work Readiness Collaborative and Career Pathway Partnerships.

Since 2008, Partners for a Competitive Workforce has served more than 8,000 people in the region. Of that total, 80 percent got a job, and 73 percent kept the job for at least 12 months, said executive director Janice Urbanik. It has also co-sponsored initiatives like Northern Kentucky's Gateway Community & Technical College's 12-month "Raise the Floor" program, which provides training and certification in manufacturing for women.

The goal now, Urbanik says, is to scale those programs while changing the perception across all demographics about jobs in fields like advanced manufacturing and information technology. Partners for a Competitive Workforce conducted focus groups with college-educated parents earlier this year and initially stressed that apprenticeship programs could lead to a $50,000-a-year career and no college debt.

Somewhat surprisingly, the focus group responded negatively. However, when Urbanik and her team adjusted the message and talked about opportunities to work on equipment that builds artificial hips or locally manufactured jet engines, the parents perked up.

"When you talk to people about no college debt and wages, that message does not resonate," she said. "But when you talk to them about making a difference or that you can do some really cool stuff right here, that flips a switch."

Employer gets involved due to recruitment woes

There may be a skilled labor shortage now but Ashley Ward may really feel the pinch in the next decade as senior leaders and workers retire.

Brian Scalf, vice president at Ashley Ward, said the 106-year-old privately held company is serious about identifying talent but has struggled in recent years to fill entry-level ranks. He said significant management attention is tied up in finding people who fit with the organization or potentially working in a job requiring earplugs and working around grease.

"We can get additional buildings. We can buy equipment. Now, can we get enough skilled labor to run those machines?" he asked.

Scalf said success has been spotty with temporary staffing companies. It is difficult to sell a career at Ashley Ward to someone who only is looking for a paycheck.

As a result, the company decided to launch a multifaceted approach to attract new talent. The company started a sales internship program, joined trade organizations and identified community college partners to attract workers. Ashley Ward hired a full-time employment coordinator, Missy Daugherty, in August, to better understand the company's staffing needs.

After launching a co-op partnership last year with Sinclair Community College, the company hopes to support specialized classes in machining and manufacturing programs in Mason.

"We're looking at branches to continue to bring people in," said Nate Ruhenkamp, an Ashley Ward sales representative. Ruhenkamp was previously an intern at the company while studying marketing at Xavier University.

In three years, Scalf said the company anticipates having a new crop of supervisors who started in lower ranks. Those people will then support the lower-skill workers who may be searching for an opportunity with Ashley Ward.

Being in manufacturing, Scalf said the company is building its pipeline because it expects to be around for a long time time because of the market niche it fills and the relationships it has built with customers such as manufacturers Maytag to Eaton.■