Montgomery, AL – Governor Kay Ivey authored the following OpEd
To remove the ‘Help Wanted’ sign We must change our focus on the labor for participation. It’s happening. Ivey Administration is doing that.
By: Alabama Governor Kay Ivey
To get the most complete information about the state of employment in Alabama and across the country to be precise we need to change our focus on labor force participation.
Alabama’s unemployment rate currently stands at a remarkable and historic lower that is 2.2 percent. In fact, most of the states with the lowest rates of unemployment, Alabama being one of the states that are Republican headed and that’s no accident. This is definitely something to be celebration.
In Alabama we are also able to be thankful for the 78,000 or more new jobs we’ve brought in our state to date in my time as governor. Also, during the last session of the legislature, we passed The Game Plan’s package to keep our economic development incentives in Alabama, and as the people of Alabama have been told, we’re just beginning!
Yesterday this morning, it was reported that the Alabama Department of Labor reported that job postings on the internet had increased by almost 11 percent since June the previous year. It’s no surprise that registered nurse jobs top the list. The ads also cover everything from retail sales jobs to software developers, employees in fast-food restaurants to maintenance staff. In simple terms If you are an Alabamian would like and is willing to be employed, there’s an opportunity for them.
Many well-paying positions coming into our state in unprecedented numbers, and these constant open positions, in conjunction with our historically low unemployment rate, creates what I’ll call an ideal problem. In actuality, I’ve received inquiries from reporters asking me, about the influx of new businesses and industries moving to Alabama with having such a low rate of unemployment what is the best way to think of filling all of these positions? Yes, I say this with a lot of love however, when the media turn two positives in a negative then you’re doing the right thing.
I’ll admit it, but that it’s a valid idea to inquire. Workforce development is still a primary priority of the current Administration and will remain so until the expiration of my term as Governor in 2026.
But, if the sole measure we make is the rate of unemployment then we’re doing our employees, ourselves and businesses a massive injustice. An 2.2 per cent unemployment in the estimation of the Alabama Department of Labor, implies that we have over 50,000 people looking for jobs. Let me repeat that the unemployment rate is looking at a specific segment of our population, namely those actively looking for jobs. That is we’re only looking at half of the population. The rate of participation in the labor force is, however, taking into account all people aged 16 and up. This is why we have to change our focus.
We’ve beaten level one and we’re ready to move onto level two.
Although the state has one of the lower rates of unemployment in the nation and an astounding number of people from Alabama employed, the percentage of Alabamians who are in the workforce is less than that of other state. Although we are growing that by hundreds of thousands, we need to make a change to this figure.
Moving people from the back of the line and into the workforce is my top priority.
To clarify I’m not saying those who are on the sidelines avoid work. I have always believed and will continue to be convinced that Alabamans are eager and proud of the work they do and are determined to support their families as well as themselves.
Let me clarify that an all-time high participation rate isn’t the objective. Students who are 16 years old go to school and a 66-year-old might want to retire.
One of the most important aspects of our efforts to develop workforces is identifying the barriers for those who would like to be employed but are unable to. Perhaps it is because of childcare. Maybe it’s transportation. It could be a matter of difficulty transitioning from dependence on government programs to a job.
We are working to eliminate these barriers regardless of what they are in order to make sure that more people from Alabama are able to join our labor force.
We also know that in Alabama that the best method to boost the level of participation in the labor force is to also increase our postsecondary education rate. Also, we are trying to assist more people in Alabama to be skilled either through schooling or certificates in order to take on the jobs available.
In 2006, I started my first campaign as governor in the state of Alabama – Strong Start, Strong Finish. The education agenda is focused on each stage of learning starting from our smallest Alabamans all the way to the workforce. We will have to address both our education, as well as workforce and economic goals to continuously improve our participation in the labor force rate. This is the new goal of the Ivey Administration.
I am convinced that more Alabamans will be successful in their end.
We are aiming to increase our postsecondary education level as well as our participation in the labour force. By meeting these standards, we will be able to be able to meet the demands of employers in this ever-growing and ever-changing market.
Alabama is the only state in the country to lead for low-employment. In the coming months, we’ll shift our attention to workforce participation. As a result, the “Help Wanted” signs will be removed and more Alabama families will thrive.