With 350+ vacant jobs, tight labor market challenges state government hiring

LANSING — State government likely won't escape the hurdles facing other major Michigan employers trying to fill job vacancies.

Many employers in the region and state are contending with an "obvious" labor shortage, low unemployment and an aging workforce, said Bob Trezise, president and CEO of Lansing Economic Area Partnership.

Trezise ticked off the sectors of the Lansing-area economy hit by the tough labor market: Manufacturing, insurance, health care.

Basically, "Everybody in all sectors."

And that includes state government, which must attract and retain workers in the same labor market as everybody else, Trezise said.

There are more than 350 jobs available in the state as of Thursday, according to a list of vacancies advertised online. That's a normal number of job vacancies, said Matthew Fedorchuk, Civil Service Commission spokesman.

But the number of workers available to fill them is not normal. The state's unemployment rate dropped to 3.9% in October, the lowest since October 2000, according to a release from the Michigan Department of Technology, Management & Budget.

On one hand, it's good news, said Stephanie Beckhorn, Director of the state's Workforce Development Agency. A lot of people are working.

But the state's workforce also shrunk by more than 266,000 since 2000, the release states, which means employers, including the state of Michigan, have even fewer candidates to choose from when they advertise jobs.

“The flip-side of a low unemployment is there’s still job vacancies that exist and there are individuals that are unemployed or underemployed who would like to get into some of those jobs, but they lack the skills employers require,” Beckhorn said.

The state, which employs about 48,000 people, posts about 5,000 to 6,000 job vacancies per year, Fedorchuk said. It fields about 300,000 job applications every year, or about 50 per vacancy.

But that number varies by job.

"Of course, you're going to have more [applications for] entry-level positions requiring maybe a high school degree or college degree in any major," than for jobs that require specific advanced degrees, Fedorchuk said.

Jobs in information technology and medical fields tend to have fewer applicants for that reason, he said.

"My assumption is you're going to find that to be true for other large, private sector employers and public sector employers," Fedorchuk said.

Beckhorn agreed. She said the hardest jobs to fill require some post-high school training, but not necessarily four-year degrees. Those jobs could fall in health care, IT, manufacturing or other industries.

Seasonal workers — like those who work at deer check stations, state parks or visitor centers — are also hard to find, Department of Natural Resources spokesman Ed Golder said in an email. The department has tried hiking wages to attract people to some seasonal jobs. 

Beckhorn said the Talent Investment Agency receives fewer applications per job than they used to, which she attributes to low unemployment.

"I still think we’re getting some talented workers," she said. "Some would say it’s a state job, there's lots of benefits that go with it, we probably benefit from that. We also have to work hard and really ensure that we have a culture here that makes the work enjoyable and productive."

Amid the small labor market, retiring employees likely will lead to more vacant positions.

The age of the state government workforce could become a problem someday, Trezise said.

According to state records, about 22% of its workers were baby boomers, or between ages 54 and 70, in 2017.

"The baby boomers are going to retire," Trezise said. "Forty percent of them are going to leave the marketplace in the next 10 years, and that includes state government, and that is a major part of our middle class.”

The younger workers who replace those retirees seem to be motivated by more than a paycheck, Beckhorn said. They care about making a difference, a work-life balance and making their voices heard.

"We have to be responsive as leaders ... in how we engage this workforce to make sure they feel valued, that they're making a difference," she said.

Trezise had three more suggestions for Lansing-area employers, including the state of Michigan, who are concerned about filling positions.

First, employers should focus on making Lansing a desirable place to live, Trezise said. A good job is only half the battle. The other half is the place.

"The capital city, meaning the community, has to look as good as the job being offered," he said. "I think state government, now more than ever, should be really focused on its capital city as a place to recruit employees."

Second, employers should find people who can use technology efficiently.

And third, they should create a welcoming and diverse environment.

"The best way you can have a larger labor pool is by being a community that is welcoming and inclusive to everyone in the world, no matter who they are, no matter what their lifestyle is," Trezise said.

Contact Carol Thompson at (517) 377-1018 or ckthompson@lsj.com. Follow her on Twitter @thompsoncarolk.