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Wednesday, August 02, 2017

An Ohio Factory Owner Is Eager To Hire Workers, There Is Just One Problem...

In April, the Fed's otherwise boring Beige Book revealed a striking anecdote about the current state of the US labor market: as the Boston Fed commented at the time, the qualified labor shortage had gotten so bad, that the hit rate on hiring after a simple math and drug test, has collapsed below 50%. To wit:

Labor markets in the First District continued to tighten somewhat. Many employers sought to add modestly to head counts (although one manufacturer laid off about 4 percent of staff over the last year), while wage increases were modest. Some smaller retailers noted increasing labor costs, in part driven by increases in state minimum wages being implemented over a multi-year period. Restaurant contacts, particularly in heavy tourism regions, expressed concern about possible labor shortages this summer, exacerbated by an expected slowdown in granting H-2B visas. Half of contacted manufacturers were hiring, though none in large numbers; several firms said it was hard to find workers.

One respondent said that during a recent six-month attempt to add to staff for a new product, two-thirds of applicants for assembly line jobs were screened out before hiring via math tests and drug tests; of 400 workers hired, only 180 worked out.

Fast forward to today when we have a practical example of how severe this quandary has become for employers.

According to WTVR, an Ohio factory owner said on Saturday that although she has numerous blue-collar jobs available at her company,she struggles to fill positions because so many candidates fail drug tests. Regina Mitchell, co-owner of Warren Fabricating & Machining in Hubbard, Ohio, told The New York Times this week that four out of 10 applicants otherwise qualified to be welders, machinists and crane operators will fail a routine drug test. While not quite as bad as the adverse hit rate hinted at by the Beige Book, this is a stunning number, and one which indicates of major structural changes to the US labor force where addiction and drugs are keeping millions out of gainful (or any, for that matter) employment.

Speaking to CNN’s Michael Smerconish, Mitchell said that her requirements for prospective workers were simple: “I need employees who are engaged in their work while here, of sound mind and doing the best possible job that they can, keeping their fellow co-workers safe at all times,” she said.

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9 comments:

Anonymous said...

The author also mentions getting the new hires to show up. We have had the same difficulty. People will fill out an application, pass the drug test, and then not show up to start.

Anonymous said...

Gonna get worse when they legalize weed! Then only the clean will be able to get jobs! The unemployment rate (true rate - not just those currently looking) will skyrocket. Stay clean and get paid a great salary - simply for being clean, having rudimentary skills, and showing up to work!

Anonymous said...

In spite of localized legalization, it is still illegal at the federal level!

Anything transportation or equipment related will still require a drug test to get you hired...and stay employed!

Drug tests will be the new standard for employability in the future - I actually like that standard.

Anonymous said...

8 years of obama dumbing down America , it's obvious that it worked , especially with the blacks.

Anonymous said...

if they ever pass one of the bills to legalize pot at the federal level, another has been introduced recently, then drugs tests won't matter for pot.

Anonymous said...

There are currently tests being developed that can differentiate between under the influence or not for marijuana. The problem is that all other drugs are undetectable in a very short time, alcohol included. Weed can be detected for weeks depending on usage patterns, so a great applicant is cast aside because he or she burned one 2 weeks ago. Law enforcement has a problem with this also. The frustration is emanating from their noses.

Anonymous said...

If the test is not a predictor of success on the job (it isn't, and has never proved to be), then the test shouldn't be used for a hiring tool.

Anonymous said...

So the employer screens out otherwise fully trained and capable applicants over a test that might indicate recreational marijuana use that may have occurred over 30 days ago, and then they complain about it. The problem is their standards, not the applicants.

Anonymous said...

Anonymous Anonymous said...

The author also mentions getting the new hires to show up. We have had the same difficulty. People will fill out an application, pass the drug test, and then not show up to start.

August 2, 2017 at 8:42 AM:

That's because they can make more on the public dole, than what you pay in wages. DUH. What do you want for minimum wages, anyhow?