Crazy #%! Job Statistic of the Week - Wal-Mart Replaces GM as Largest Employer in Ohio...
March 12, 2008
A while back I noted that the war on talent is zip-code specific. If you are in a hot zip code, you are probably set to work for the foreseeable future. If you're not, you may see your real wages actually going down.
I saw the stat of the week to illustrate this, in the most recent issue of BusinessWeek, which had an article on the decline of manufacturing in Ohio, and how that reality was driving presidential politics.
More on the decline in job quality in Ohio from Business Week:
"Ohio's plight is a vivid reminder that manufacturing still provides a livelihood to millions of Americans—
and that the agony of U.S. manufacturing's decline is far from over.
Since 2000 the state has lost 236,000 manufacturing jobs, a 23.3% drop. One sign of the times: In 1995, General Motors (GM) was Ohio's largest private employer, with some 63,200 employees, while Wal-Mart Stores (WMT) was ranked No.6, with 15,100. Today the discount retailer is the state's top source of jobs with 52,000 workers. GM employs just 12,300."
That's an ugly stat. Automakers are among the best jobs that blue-collar, middle class workers (especially those without degrees) can hope to land. To hear that GM has dropped 75% of its workforce in Ohio is a sobering stat. Especially when you're confronted with the picture that the engine replacing those jobs is Wal-Mart. Nothing against Wal-Mart, but last time I checked, it was hard to get health care as an employee there.
So what happened? Globalization, poor quality, etc. all contributed.
It's a sobering situation. When I posted that the war for talent is zip-code specific, one of the conclusions I reached is that, as necessary, workers had to be mobile to relocate where the jobs are.
The unfortunate part about that is that the workers least likely to relocate are the ones most impacted by the closings of major manufacturers like GM - less probable to have college degrees, grew up in the area in which they live, etc.
That stinks. I'm a capitalist, but there's no other conclusion when you look at it from the eyes of the impacted family and as an individual with a family who loves where they live.
My parents moved to where the jobs were. My husband's parents did the same thing. So, when we got married, that was something we instantly agreed on. You go where the jobs are.
It was surprising to me to find out that many people do not feel the same way.
Posted by: Evil HR Lady | March 12, 2008 at 07:55 AM
A few other media outlets had some thoughts on this state of THAT STATE last week. We posted the Fred Barnes piece from the Weekly Standard pointing out industrial preference for largely non-union Southern states over heavily unionized Ohio; and, the QC Examiner's similar comparison of the economies of Ohio and Texas.
Posted by: The Union-Free Employer | March 12, 2008 at 12:20 PM
The manufacturing guys over at Evolving Excellence have an interesting perspective on globalization and manufacturing, using an example of how it impacts small cottage industries in the hill towns of Tuscany, Italy.
http://www.evolvingexcellence.com/blog/2008/03/globalization-a.html
Ken
Posted by: Ken | March 15, 2008 at 08:06 PM
Ken -
Like that article a lot. The main reason I posted this one was a follow up to one I did that showed the war for talent was zip code specific.
The italian company reminds me of a Seth Godin case study. Find your micro niche, then play to the global scene with that niche.
The biggest issue with that is there are a whole bunch of people who aren't business or global minded in places like Ohio. They just want to work for someone and then go home. Unfortunately, they look to be victims when you look at the stats. Unwilling to move to where the jobs are, and unable to think globally, they're stuck.
I'm a union free guy and not a hater of the global scene, but I really don't have a soltuion for this one. Maybe, like Wally Bock suggested, retraining is the key. I just know they're a lot of people who don't want to be retrained in the areas that are the hardest hit.
Thanks - KD
Posted by: Kris | March 17, 2008 at 10:46 PM