Mind The Skills Gap

 

Edie Fraser, meet Adam Davidson.

Fraser, an expert on human resource issues in STEM-dependent industries, is the author of “The Root of Real Jobs: Filling the STEM Talent Gap.” This piece appeared in the Huffington Post the other day and can best be described as skills-gap boilerplate. The widely circulating trope that she makes central to her column depicts thousands if not millions of technical jobs in America going unfilled due to an underprepared national workforce, and as a result, citizens going jobless and the US slipping ever lower on the global economic pyramid.

Davidson, who co-founded the Planet Money blog for NPR, for his part offers a badly needed corrective to that mistaken picture.  In  an NYTimes piece this week, he emphasizes that the notion that we are suffering from a simple unmet labor demand is misleading.  That view implies that the challenge we face is the insertion of workers into waiting manufacturing jobs, no questions asked about those jobs. Instead, Davidson points out, wages in the vaunted high-tech manufacturing sector barely exceed those of fast food jobs, and these positions are notoriously insecure in light of employers’ commitments to the outsourcing and automation that lower their wage costs.  Given those conditions it isn’t unreasonable for un- and underemployed Americans to balk at undertaking specialized training for jobs that seem little better than those near the  bottom of the service sector.

As a handful of others have also pointed out, if the unfilled tech positions were really the result of a supply-demand imbalance, wages would rise until workers felt impelled to fill the “gap.” (See my post of a couple of weeks ago, on Peter Cappalli’s introduction of this point on 60 Minutes.)

Davidson is not unsympathetic to the plight of employers, including one he interviews who is reluctant to hire those coming from “union-type” backgrounds expecting pay levels the employer sees as unsustainable if his business is to survive. And in that sense, Davidson reminds us that this is a system that traps multiple participants (both high and low on the socioeconomic and opportunity ladder) in potentially unjust economic structures.  Important to remember though, is that the business owner has property in hand while the unemployed worker does not. They are not equally vulnerable to (or responsible for!) the system’s injustices.

Obviously, just to recognize as Davidson does that a wage deficit (and thus potentially, a profit excess) is at the heart of the problem is to be far more progressive than the skills-gap explanation would allow one to be. We do hate to see our cutting-edge manufacturing enterprises as anything other than, well, cutting-edge, but the social inequities inherent in the skills-gap rhetoric are as old and robust as American industrial capitalism itself, and Davidson helps us see this.

But I’d push Davidson still further. Both he and Fraser mention that more and better education could help everyone here, workers and employers.  Yet even though Davidson mentions a faltering “social contract” among workers and employers, neither writer points out that the underlying rationale for feebly funded and ill-conceived schooling in America historically derives from the same social priorities that make minimizing wages a reasonable aim for employers.  A legitimation of maximized socioeconomic differences among Americans is at work here, buttressing both the nation’s under-resourced education system and its low pay scales.

I know, I know: That plaint is becoming a bit of boilerplate in this blog.  But the constant reissuing of  uncritical statements about the burgeoning high-tech labor sector, like Fraser’s, even amidst apparently genuine concern about opportunity and diversity, is infuriating to me.  Calls for improved STEM education fit all too tidily with the obfuscatory concept of a STEM skills-gap; each formulation lends meaning and validity to the other.

But STEM education is not a panacea, as incisive writers on the “vocationalism” of US community colleges make abundantly clear (Brint and Karabel’s 1989 book, The Diverted Dream, remains invaluable here).  Education for jobs fails to bring widespread employment partly because of the very real lack of school/industry communication that Fraser cites, but also because the system isn’t designed to maximize knowledge and economic mobility among American citizens; instead it functions to assign different populations to different levels of occupational eligibility, many to a level with little real opportunity.  Without more of that kind of deeply critical thinking about undemocratic social structures, all the talk in the world about skills, jobs, and the gaps between them is not going to help the American worker.

“Shiftless” in America

Itching to know which ideas about the economy actually solidified during the recent campaign season? Which ones Obama toted, intact, through the onslaught of right-wing rants about the 47% (according to Romney, people who remain jobless because lazy…or, shiftless AND shiftless—get it?!), now to function as memes for the second term? Then you might want to watch the recent 60 Minutes segment on the “skills gap.”

"Three million open jobs in US, but who is qualified?" www.cbsnews.com

The premise (which I’ve discussed before in this blog) is that millions of American jobs are going unfilled; here CBS points to about 500,000 open positions in U.S. manufacturing businesses alone.  60 Minutes frames this as a puzzle: “How can it be,” correspondent Byron Pitts asks, that in a time of high national unemployment jobs are going begging?  Something is wrong, but what?

Like many of Obama’s own speeches on the topic, the segment indicates that tech innovation promises prosperity for U.S. firm owners and their workers alike, once an appropriately trained workforce is slotted into the new high-tech sector jobs.  The 60 Minutes report is more interesting than some other policy and media excursions into “skills gap” territory, however, because it introduces, if tentatively, the possibility that we need to consider the role of employers in the production of this “gap.”

Much of the 12-minute story focuses on the need in manufacturing firms, small and large, for workers trained in emergent production techniques.  We watch un- and underemployed Americans participating in educational and internship programs in order to attain eligibility for the new, higher-tech, mostly software-centered manufacturing positions that supposedly abound today.  The excitement of those participating in the programs and ultimately the sheer relief of the newly employed are both made very clear in the segment.

The head of one family-owned business, Click Bond, a defense contractor in Nevada that makes fasteners for precision machinery (as used in, say, fighter planes), explains that it is not practical or affordable for the firm itself to do the training.  This seems like a good argument for community college curricula and other publicly supported education-for-jobs, as promoted by Obama. And indeed, the company helped develop just such a program locally.  But then the report digs ever so slightly deeper to ask a CEO of Alcoa why, if such efficacious educational and training options exist, so many positions in U.S. manufacturing remain unfilled. The CEO tellingly answers that, “Well, this is not a society where you can tell somebody what– where to go work, or where to– what education to get, right?” Ah, the shiftless American worker, in every sense of the word!

Certainly not racist in the sense of Romney’s old-school bigotry last week regarding Obama’s “gifts” of public health and education to minority Americans, but a classic moralistic put-down of the disadvantaged, nonetheless.  Coming from a CEO of a major corporate force in the nation, it’s a potentially influential one, too. Praise to CBS for not leaving that neoliberal shoulder shrug unanswered. Instead, near the end of the segment Peter Cappelli, a Wharton management professor, introduces what is for mainstream media a somewhat shocking point: Maybe the labor market is not, in fact, a supply-and-demand operation.  Industrial wages have stagnated and even declined in many production sectors, Cappelli notes.  The ostensible fair pay and secure employment said to be just waiting for the willing citizen is at least in part a myth, and one that hides the economic advantages accruing to capital in America.

Let’s consider what a viewer new to the topic (and the issue is introduced as something folks may not know about yet… “It’s called ‘the skills gap,’” Pitts intones as the report starts), might take away from watching the piece. Again, all this is very lightly laid on. Robotics are cast as an industrial “innovation” without any mention of the negative impacts of automation on employment levels; there is no probing inquiry into outsourcing trends.  But at least 60 Minutes suggests that the idea of a “skills gap” requires investigation, airing however briefly the notion that the  interests of American employees and employers do not invariably converge…a convergence implicit in the very notion of such a gap.

A glancing blow, yes, and a long way from any kind of redistributive approach that might show the profoundly disempowered situation of labor today, but still an unusual step beyond the unalloyed boosterism that usually surrounds the topic.

Our Possible Selves

I’ve been watching the spread of a troubling recessionary idea: That sending fewer Americans to college will solve our economic problems.

In STEM fields, this is part of the whole “skills gap” story so popular in talk about education-for-jobs today…the notion that in order for the nation to thrive, we need more people who prepare  to be technicians or mechanics in high-tech sectors like bio- or nanotech, and really, for all kinds of mid-level technology based jobs. (Here’s  one example of skills gap logic, from Austin, Texas,  but really, it is so pervasive a notion among workforce planners and educators now that I’m actually willing to say: Just Google it.)

As the new STEM programming in that Austin high school indicates, anxiety about the skills gap can bring new resources to STEM teaching, enriching instruction and encouraging kids to enter those fields. But when those worried about an inadequate  industrial labor pool call for more enrollment in sub-baccalaureate education or on-the-job training as the answer, some unfortunate differentials in educational opportunities seem to strengthen.

For example, the  “Pathways to Prosperity” report, which came out of Harvard’s Graduate School of Education earlier this year, essentially tells us that too many Americans are aspiring to 4-year degrees, evidenced by high drop-out rates among 4-year college students from disadvantaged backgrounds.  Some significant number of young Americans will be better off, we can assume,  if they give up on the idea of pursuing a 4-year degree, thus saving expenditures of money and time that are unlikely to lead them to secure employment.

By extension, we may understand that there are methods by which those who “shouldn’t” attend college can be identified before they make the error of trying to do so.  I see this outlook as one that (intentionally or not) helps to justify the historic under-representation of poorer Americans (who often grow up in communities with poorer schools) in 4-year colleges and graduate programs.

Take this justification from “Pathways To Prosperity”  for “diversifying” the post-secondary paths we offer to young people in this country:

Behaving as though four-year college is the only acceptable route to success clearly still works well for many young adults, especially students fortunate enough to attend highly selective colleges and universities. It also works well for affluent students, who can often draw on family and social connections to find their way in the adult world. But it clearly does not work well for many, especially young men…Similarly, among the low-income and young people of color who will make up an increasing portion of the workforce of the future, this single route does not work well either. [p. 13]

Thus: Who shouldn’t aspire to 4-year colleges? Those who have historically done poorly in that setting. Those without social and family connections. Who happen to be those from less affluent backgrounds. Or from historically disadvantaged minority communities.    …So much for asking the hard questions about economic attainment in America.

The Pathways report holds the promise of some interesting K-12 reforms, helping students who might otherwise lose their way benefit  from personalized, well planned, well resourced education.  But why have community college, rather than university, enrollment as the goal for these students? Why do the Harvard authors think it is a good step forward for the nation to discard the “college for all” model that has shaped our public education system for generations?

I don’t know, but invoking national workforce needs as a reason seems not a little circular to me, and  I think we should be asking if some larger economic system is sustained by that aim.  Ronald Ferguson, an author of the report who spoke to a gathering at the Penn Institute for Urban Research a few weeks ago, put the report’s message thusly (as reported on the Penn IUR website):

Ferguson argues that children will be able to “accumulate a menu of possible selves” and to see that “all work is honorable.”

“A menu of possible selves”?  It would almost sound like poetry if it didn’t seem so calculated to make a non-issue of inequity in education. And, “all work is honorable”?  Though I have absolutely no reason to think Ferguson intended this effect here, that phrase historically has naturalized the least democratic features of our economic system. It has too often been used to placate those in our society who hold the most tedious, dangerous, and difficult jobs.

Here’s the thing: If we strived to make all jobs in America as remunerative, safe, interesting and growthful as possible for those who hold them, such exhortations might not be necessary.

If that kind of deep, redistributive societal reform is not on the menu of economic and educational strategists today,  perhaps we are really talking about pathways to prosperity for those who already have sure routes to that destination.

A Hands-Off Management Style. Literally.

“I want to have as few people touching our products as possible.”

So spoke Dan Mishek, the managing director of an industrial plastic products manufacturer in Minnesota, quoted in Catherine Rampell’s NYTimes article yesterday, “Companies Spend on Equipment, Not Workers.” Why would an employer want to keep people away from its products? Germphobia? Elitism? No, just practicality: as hiring becomes increasingly expensive for industry, compared to automation and capital investment in machines in general,  more human hands , it seems, can be an unwelcome presence in the factory.

Mr. Mishek also noted that, “You don’t have to train machines.”  Or read their resumes (“It’s a huge distraction to sort though all those.”)  In essence, where humans proliferate on the shop floor, maximized productivity is threatened.

Mass-production operations have historically minimized the degree to which they depend upon workers (with their insistent human need for wages, training,  and accommodations to safety and fatigue); that’s the basic logic of industrial capitalism and once inside that logic, an employer might reasonably  feel that  no other view of hiring seems rational.  And Rampell aptly includes a single point made both  by the chief economist for the National Federation of Independent Businesses and by the chairman of Obama’s Council of Economic Advisers.  These analysts note  that with demand for products and services low in the current slow-growing economy, employers won’t be “comfortable” with any kind of investment, “human or otherwise.”

In all ways predictable sentiments, entirely consistent with good business practice in the United States.  So: Why were they featured on the front  page of the New York Times?….

Here’s where it gets interesting:  I presume because on some level,  Rampell and her editors detect that such discomforting managerial commitments, so clearly out of keeping with ostensible national priorities to put more Americans back to work,  keep fading from view.  They are perhaps obscured by the bright, shiny glare of other headlines of the moment, such as, “Obama Touts National Manufacturing Certification Program” (seen the day before in IndustryWeek.com).

According to that piece by Jonathan Katz (and thanks to Mary Ebeling for calling it to my attention), the National Association of Manufacturers’ Manufacturing Institute, working with President Obama’s Skills for America’s Future,  is supporting a new program to certify half a million community college students with “skills that are critical to manufacturing operations.”  We read, as we have so often in the past year or two, that America’s pharmaceutical, aerospace and biotech sectors need people with skills not yet widely distributed among the nation’s workers, skills broadly grouped under the rubric “high-tech.”

As I’ve written here before,  new skills, many involving  knowledge of new software, applied mathematics and up-to-date machine processes, are no doubt needed by those manufacturers who do still hire, and who do still turn to American labor pools.  Obviously, new jobs are mostly going to arise in emergent industries, not in fading “low-tech” sectors.  But the power of the “minimize hiring” logic is truly immense in our society.  A “skills gap” may well exist on some level, but to picture 500,000 American workers filling such a gap would require a leap over that logic. To pursue, as the NAM’s new training program does,  so utterly uncritically the provision of newly trained manufacturing workers is to ignore the tremendous counter-forces that automation, tax incentives for capital investment, and outsourcing exert on the nation’s industrial employers.

What is more, when companies like those quoted here by Katz say they need “engineers,” are they really picturing men and women with community college credentials? Many high-tech industry folks I’ve spoken to worry about that very slippage; associate’s degrees and certificate programs are simply not providing the level of chemistry, physics and material science preparation needed in their companies’  labs or assembly operations.

I know, I know, I’m like a broken record, a virtual mass-producer of such plaints. But the disconnect is so darn pervasive! So persistent!  I can’t help but ask yet again: Can all of these high-tech-job  boosters possibly be sincere? Are they willfully naive? Why is technical modernization–high tech– constantly painted as a natural and inevitable producer of jobs for American workers, when so very much evidence to the contrary exists??  When managers like Mr. Mishek, to do their jobs well, must–let’s face it–minimize the creation of jobs for others?