Where Will They Find the Workers?

Published Wednesday, June 12, 2024
by Jeff Rea, Chamber President & CEO

Recent announcements by GM/Samsung and AWS have generated a lot of excitement in the region. The two projects alone could bring more than $14 Billion in new investment and create over 2,000 new jobs (1,700 at GM/Samsung; 400 at AWS). Construction is currently underway on both sites. 

The excitement about those announcements has been tempered by the question of where will all the workers come from?

That’s a great question, but some additional context is needed to better understand how those companies will meet their workforce needs.

Both employers will need to take a multiprong approach. There is no single, or simple solution. For a hundred years employers have been wrestling with the same question, it’s a never-ending battle. Though the jobs on the two projects are different, much of what they are looking for will be similar.

Some of those future employees live in our region right now, some will relocate to the region. Some currently work in a similar field, but may look toward a new company, maybe with a shorter commute, better hours, and a higher pay and benefit package.

Others will see this as a chance to change industries and to skill up in a new and emerging industry. Some have been out of the workforce since COVID and have been waiting for the right opportunity to return. Others have been out of work and looking for their next opportunity and may have just found it.

Some will be at the front end of their career looking for their first full-time employment opportunity. Others will be at the back end, looking for something new as they wind down their career. Some have been down on their luck or have made some mistakes along the way that have made it hard to find gainful employment and will be looking for a fresh start.

A deeper dive into the data reveals where some of the first-places companies could look. For example, the labor force participation rate (LFPR) is the percentage of the working-age population that is either employed or actively looking for work. Our current labor force participation rate is 60.1%, down almost 5% from pre-pandemic levels, and lower than Indiana or US rates. A return to pre-pandemic employment levels would mean 4,000 more people re-enter the workforce.

The unemployment rate can also be telling. The unemployment rate represents the number of unemployed people as a percentage of the labor force (the labor force is the sum of the employed and unemployed). The current unemployment rate for St. Joseph County is 4%, higher than the state average of 3.4%. Ours is the highest in the region, and one of only ten out of ninety-two counties had a rate of 4% or higher.

Department of Workforce Development data shows there are currently more than 12,000 unemployed in our region, which includes St. Joseph, Elkhart, Fulton, Kosciusko, and Marshall counties. About 5,200 of those are in St. Joseph County.

Almost half of all unemployment claims are in the manufacturing industry (47.7%). For additional information or to dive deeper into the data on the region, visit the dashboard here.

The companies have done extensive research into workforce availability in the region and have come to the same conclusion. There is not one place all employees will come from, rather it will take engaging with the community at all levels to develop their workforce. The good news, we have a few years to establish strong relationships and outreach opportunities for St. Joseph County residents and those in the region to find the right job for them.

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