< PreviousONLINE EDITION 8 WORKFORCE 2024 TAKE THIS GUIDE WITH YOU ENJOY Read the digital edition on your tablet and phone. Click on links within articles for even more information. SHARE Share the magazine on social media with your friends and community. LINK Feature the magazine on your blog, website or newsletters with a link or one of our easy-to-use tools. siteselection.com/cc/workforce2024 Publisher/Director LAURA LYNE Executive Vice President RONALD J. STARNER Editor in Chief ADAM BRUNS Editor Emeritus MARK AREND Senior Editor GARY DAUGHTERS Associate Editor ALEXIS ELMORE Assistant Custom Content EditorLINDSAY LOPP Art DirectorNEGIN MOMTAZ Production Coordinator/Designer BOB GRAVLEE Lead Designers SEAN SCANTLAND RICHARD NENOFF Designer ASHLEIGH PORTER Data Services Manager KAREN MEDERNACH Senior Research Associate BRIAN ESPINOZA Research Associate McKENZIE WRIGHT GLOBAL SALES & MARKETING Vice President of Sales CHARLES FITZGIBBON Regional Director — Northeast U.S. MIKE GLENNON Regional Director — Midwest U.S. CATHY McFARLAND Regional Director — Southeast U.S. MICHELE RABALAIS Regional Director — Western U.S. PAUL NEWMAN Regional Director — U.S. MARGARET ROSE EuropeBRENDAN DOHERTY, +44 7999 786752 Japan HIROKO MINATO, +81 50 8882 3456 Korea CHUL LEE, +82 2 466 5595 Sales Development Representative MARTA RUSSELL Sales Administrator CHRISTI STANSBERRY BUSINESS DEPARTMENT Chief Financial Officer DEBBIE PORTER Accounting Associate DAVIS WILSON CIRCULATION Circulation Manager JULIE CLARKE DIGITAL TECHNOLOGY TEAM Director of Programming & Analytics DANIEL BOYER IT CoordinatorMARK BERTRAM Webmaster TRAVIS WALKER The publishers believe that the information contained in this publication is accurate. However, the in formation is not war ranted, and Conway Data Inc. does not assume any liability or responsibility for actual, consequential or incidental damages re sulting from inaccurate or erroneous information. PHONE: (770) 446-6996 • TOLL FREE: (800) 554-5686 FAX: (770) 263-8825 email: editor@conway.com web: siteselection.com/cc/workforce2024 Workforce 2024 is published by Conway Data, Inc. 6625 The Corners Parkway, Suite 200, Peachtree Corners, GA 30092 USA. PRINTED IN USA. ©2024 Conway Data Inc. Cover design by Richard NenoffThe 10 Biggest Workforce Challenges Facing America Today OVERVIEW 10 WORKFORCE 2024 The Technical College System of Georgia (TCSG) recently announced the awards for the second year of the High Demand Career Initiative (HDCI) Program supporting Georgia businesses with the creation and expansion of Registered Apprenticeships. These awards represent the fi rst part of the state’s annual investment of more than $1 million into apprenticeships for Georgia’s workforce and business community. Photo courtesy of the Technical College System of Georgia by RON STARNERI f you thought your daily to-do list as an employer was packed already, think again. For the foreseeable future, a convergence of demographic and socioeconomic factors will make finding, hiring and keeping the best workers harder than ever. We surveyed leaders in economics, workforce development, economic development and site selection consulting to produce a Top 10 list of workforce challenges. In no particular order, here they are: America’s Labor Shortage Best-selling author, speaker and economist Peter Zeihan predicts that “we are entering a protracted period of increasing labor shortages and increasing labor demand. Anything workers say they need must be on the table.” A lower birth rate, retiring Baby Boomers and a decline in workforce participation combine to spell trouble for certain industries that are projected otherwise to grow over the next decade, according to a comprehensive labor assessment by the U.S. Bureau of Labor Statistics. Everywhere we turned, community leaders echoed this sentiment. Rod Crider, president and CEO of the Rowan Economic Development Council in Salisbury, North Carolina, says, “While there is less urgency than a year ago, employers still report having issues with employer attraction and retention. Wages and benefits are rising as a result, and there is a much stronger emphasis on culture.” Crider adds that Rowan County will need 20,000 new employees to fill openings created by new business growth over the next five to 10 years. Mark Litten, vice president of economic development for the Putnam County Chamber of Commerce in Palatka, Florida, says that with a countywide unemployment rate of 3.2% and a statewide jobless rate of 2.6%, “we don’t have many unemployed workers.” Jason El Koubi, president and CEO of the Virginia Economic Development Partnership, says, “There is a significant and growing labor shortage, with too many job openings and not enough qualified individuals to fill them. This shortage is driven by factors such as America’s demographic trends and a limited amount of legal immigration.” Access to Affordable Child Care Since the advent of the global pandemic in early 2020, child care has become more scarce and less affordable, according to the agencies that track child-care facilities and fees nationwide. The average child-care payment has risen 32% since 2019, outpacing inflation, the Bank of America Institute reports. This has delayed the return to the workforce of many adults with children. Mothers with children at home have been the hardest hit by this trend as they struggle to find adequate, affordable child-care resources within a reasonable commute. Plus, due to low wages, many child-care workers have left that profession to pursue other, better-paying jobs. Affordable Workforce Housing Around the country, workforce housing has increased in price and declined in availability. Green Street reports that shares of U.S. single- family housing REITs (Real Estate Investment Trusts) now trade at a 20% discount to their asset WORKFORCE 2024 1114 WORKFORCE 2024 value, while UBS reports that % of all U.S. home mortgages now have rates below %, meaning homeowners will be reluctant to sell to change jobs. e reason? Home mortgage rates in the U.S. have reached a -year high. Various local jurisdictions face their own unique housing challenges too. Vinnie Mascarenhas, economic development manager for the City of North Port, Florida, in Manatee County, notes that “housing presents a workforce challenge that is prevalent in Southwest Florida. e pre- platted nature of North Port further exacerbates this challenge. In response, our city is rewriting our Unifi ed Land Development Code (ULDC). One aspect of this historic rewrite is to create a greater variety of housing options, beyond the overwhelming number of single-family homes, to accommodate our growing workforce needs.” Automation, AI and Robotics AI and robots may not be coming for all our jobs just yet, but they are dictating another trend in the workplace: rising demand for people with the technical skills required to handle and service AI, automation and robotics. “We need more maintenance people with experience in robotics, conveyors, sensors and attachments for wiring,” says Rodger Brown, executive director of Georgia Quick Start. “Everything is computer-controlled now.” If the new jobs are in semiconductor manufacturing, “then we need people who are skilled and sensitive to science,” he adds. “We now make products that never need to be touched by human hands. Quality control teams are important today; and everyone in the modern workplace must embrace the culture of quality. Even forklift trucks are automated.” Brown has toured the most advanced plants in the electric vehicle manufacturing industry in South Korea and he’s seen fi rsthand the level of automation that is coming for American workers. “Whether it’s EVs or lithium-ion batteries or polymer materials, it’s all rapidly merging in the fundamental technologies,” he notes. “We have an immediate need for more skilled equipment operators because most of this work is automated.” Worker Upskilling and Retraining However you slice it, American workers need more training. Hyundai, which is going to hire , new workers in South Georgia, “wants people who are motivated, teachable and willing to work with others,” says Brown. “Companies need workers who are eager to be trained and learn new skills and new ways of doing things. If workers are willing to do that, they may one day fi nd themselves among the fi rst to earn promotion to leadership management roles.” Most occupations today require not a four-year college degree but rather cutting-edge technical skills that were invented in the last few years. “Germany has an advantage over us because they’ve been rewarding skilled apprenticeships and trades for the past years; they still emphasize those things today,” Brown adds. “We need to start doing that here.” Jason El Koubi of VEDP notes that “employers face the need to reskill their workforce due to automation and technological advancements. Many jobs require new skills, requiring investment in training and development programs to meet these demands. Virginia is supporting this workforce transition in a variety of novel ways including credential programs in high-demand industries and through the Virginia Jobs Investment Program at VEDP.” Town vs. Gown Disconnect When’s the last time you paid your local college We’re collaborating with our education partners like Suncoast Technical College and State College of Florida in North Port, aligning educational expansion with economic development.” — Vinnie Mascarenhas , Economic Development Manager, City of North Port, FL We’re collaborating with our education or university a visit to ask them how they’re preparing your workforce? If it’s been a while, you may want to give them a call and fi nd out. “Nationally, there is a misalignment between the education and training programs off ered and the skills demanded by the job market,” El Koubi says. “ is challenge underscores the importance of aligning educational curricula with industry needs as Virginia is doing with novel data capabilities that drive state policy and program choices.” Mascarenhas of North Port says education plays a pivotal role in the city’s workforce readiness strategy: “We’re collaborating with our education partners like Suncoast Technical College (STC) and State College of Florida in North Port, aligning educational expansion with economic development. STC is planning a state-of-the-art, ,-square-foot building on their North Port campus. is facility will feature modern labs and classrooms designed to prepare students for careers in healthcare, construction, auto repair and electrician trades.” Remote Work, Hybrid or RTO (return to offi ce)? Remember when you were told to work from home during the pandemic and didn’t have a choice about it? Well, most people now have a choice, and at least half of America’s offi ce workers say they’d prefer to work remotely at least some of the time. El Koubi says that changing workforce dynamics mean that Generations Y and Z have diff erent desires and expectations compared to older generations. In many cases, the desire to achieve work-life balance is prompting workers to seek out more worker-friendly policies on remote work and hybrid arrangements. “Organizations need to adapt their workplace culture and policies to attract and retain these workers, as well as to fully leverage older workers,” he says. STEM (Science, Technology, Engineering, and Mathematics) Education in Schools Whatever your local high school students are attaining in their math and science scores, the globally competitive economy is pushing Americans to do better. is trend is propelling the need for more STEM, Career Technical Education (CTE) and manufacturing academies in high schools, middle schools and even elementary schools around the country. At Central Virginia Community College in Lynchburg, Virginia, more than , high school students are currently enrolled in a CTE Academy as dual-enrollment students pursuing both a high school diploma and an associate’s degree — all while making them employable in many production jobs upon graduation. Shorter Commutes Since the pandemic, the average one-way commute time has declined substantially in virtually every major metro area of the country. In Atlanta, it is down .%. In Washington, D.C., it is down .%. San Francisco workers are spending .% less time in their cars, while New Yorkers are spending .% less time commuting. e message to employers is clear: Workers have drawn a line in the sand; and the days of the hour-long commute are over. If you cannot fi nd the workers you need within a -minute drive time or less, then you are probably located in the wrong place. Income Inequality A recent report by CNN showed that while wages are rising, the top % of wage earners are reaping the biggest gains. In fact, this cohort saw a jump of % in their earnings between and . Middle-income wage earners, however, experienced only % gains. e Federal Reserve Bank called this “one of the largest three-year increases in income inequality” in American history. And even with the wage increases, % of Americans say they are living paycheck to paycheck. In the pages of this fourth annual Workforce Guide published by Conway Data, we go into detail on all of these dynamics. Our goal in assembling this information into one magazine is that it will help your to-do list get a lot shorter. WORKFORCE 2024 15 say they are still living paycheck to paycheck. 62% of American workers Source: LinkedInThe 4-Day Work Week: Has Its Moment Arrived? WHAT WORKS FOR WORKERS 16 WORKFORCE 2024 Photo: Getty Images by RON STARNER WORKFORCE 2024 17 P andemic-era lockdowns put million American workers out of a job. While most of those jobs have since been recovered, what Americans want from work has changed. According to a recent report titled “Worker Voices: Shifting Perspectives and Expectations on Employment” by the Federal Reserve Bank of St. Louis, the pandemic made American workers re-evaluate their priorities, with the result being that most people now expect work-life balance and more schedule accommodations from employers. Spending more time at home with their families went from being a government mandate to being a worker expectation. One byproduct of that is the four-day work week. While the concept itself is not new, the trend of exploring widespread adoption of it in the workplace is. In its Spring U.S. Occupier Sentiment Survey of -plus U.S. companies with offi ces, CBRE found that % of respondents are either exploring a move to a four-day work week or implementing it altogether. To learn more about this burgeoning trend, we turned to Su-Zette Sparks, senior managing director for Americas consulting at CBRE. Here is our conversation with her on this topic: of on-site employees would change jobs As many as 44% for a four-day work week. Source: GallupNext >