The Legislative priority

Delaware State Chamber of Commerce | Wilmington DE 19899
  • Visit
    • New Castle County
    • Kent County
    • Sussex County
    • Relocate to Delaware
    • First State Kids
  • Advocacy
    • Take Action
    • District Maps
    • Legislative Roster
    • Policy Priorities
    • Political Action Committee
    • Legislative Priority Blog
  • About Us
    • Governance
    • Our Team
    • Affiliates >
      • Delaware Manufacturing Association
      • Delaware Retail Council
      • The Partnership, Inc. >
        • Delaware Principal for a Day
        • Superstars in Education >
          • JHTAward
          • SSE Winners Archive
        • Intern Delaware
        • Delaware Young Professionals Network
    • Committees >
      • Small Business Alliance
    • News & Media >
      • Chamber News
      • Member News
      • Delaware Business Magazine
      • Podcast
      • Advertise with the Chamber
      • DSCC Daily
    • Certificates of Origin
    • JobBank
    • Internships
    • Contact
  • Events
    • Chamber Calendar
    • Annual Events >
      • Annual Dinner
      • Spring Manufacturing & Policy Conference
      • Superstars in Education
      • End-of-Session Legislative Brunch
      • Chamber Chase
      • Delaware Networking Station
      • Developing Delaware
      • Superstars in Business
      • Taste of Delaware
    • Webinars
    • Member Calendar
  • Membership
    • Why the State Chamber
    • Join a Lead Group
    • Membership Application
    • Member Login
  • Directory

"I Need an electrician!"

1/16/2020

0 Comments

 
Let’s retrain Delaware’s most vulnerable workers
by Michael J. Quaranta

Exasperated, I yelled out, “I’m calling an electrician!” because my frustration level reached a boiling point. While I can handle simple electrical tasks, I’m not interested in hurting myself or causing a real problem by taking on a project beyond my “happy homeowner” skill-level.

I’m a baby boomer. As I observe many in my generation entering their retirement years, I’ve noticed critical job shortages developing, and getting an electrician to my home was a real chore. This shortage is likely the result of a generation regularly extolling the benefits of a college degree. Personally, I am living proof that a university education has its advantages. However, our years of zealous promotion of four-year degrees came at the expense of the building trades and other very important professions. 

For years, people advocated for a higher minimum wage for workers in entry-level or low-skilled jobs. They argue that those low wages are not enough to sustain a family, and in 2020, they’re not wrong. However, these jobs and their minimum wages were never intended to do that; these were entry-level, part-time positions that were a supplement to your other income or a way to develop a work history as a new entrant in the job market. Changes in our economy and worldwide competition have impacted the workforce and created a labor market where some people are simply stuck in low-skill and low-paying jobs. 

The solution cannot be to artificially raise the minimum wage to $15 per hour. Doing so will increase labor costs and accelerate the time in which businesses turn to automation and technology and permanently eliminate low-skill jobs. We worry that youth unemployment will rise because older, more experienced workers will compete for similar, higher starting pay, resulting in our youth losing out on valuable opportunities to gain work experience.

Wage escalation is another real concern. A long-term employee, presently making that same $15 per hour as a new hire, will demand a wage boost because their tenure, experience, reliability and performance is sure to have a value higher than a new employee. This escalation of wage increases will force many businesses to make hard, personnel decisions they might not otherwise have to make. 

Some businesses may sell goods or services in a very competitive marketplace where charging more for what they sell, to cover increased labor costs, is not an option. Even if it were an option and prices go up for everybody, the very people who benefit by a higher, minimum wage will also be charged more for goods and services. Unfortunately, higher prices would negate any economic lift that may have come from higher wages. 

The real solution is to train people for higher wage, in-demand jobs where growing vacancies exist. These jobs typically pay wages and benefits higher than what’s proposed and possess long-term career opportunities with even greater rewards. We need skilled tradesmen and women, health care workers to assist a growing and aging state population, and information technology specialists to manage the tech at our hospitals, banks and on manufacturing floors.

There is a significant population in Delaware of underemployed workers that require additional skills training in order to improve their career trajectory. In conversations with businesses and training providers, we believe a model exists for high-quality training with positive results.

The State Chamber is proposing a multi-million-dollar investment by the State that would cover training costs for several hundred trainees per year and provide for living expenses while someone is in school. This support removes the barrier most underemployed believe is standing between where they are and where they hope to be. 

Specifically, an eight-hour day, five-day week approach allows for a compressed schedule to ensure graduates make a transition quickly and efficiently. We worry that without focusing on this problem now, thousands of Delawareans will go from underemployed to unemployable in a matter of 7 to 10 years. 

This is a classic ‘win-win’ proposition. As taxpayers, the increase in Personal Income Tax (PIT) people pay as they earn higher wages, returns more of our investment over time. The diminished need for social services, and hopefully the avoidance of the kind of trouble frequently associated with unemployment or underemployment, benefits us all. 

When the next recession hits, some economists believe it will last longer than typical and could impact Delawareans without marketable skills for years. Knowing this, we need to take concrete steps to train as many underemployed people as quickly as we can or risk that they become unemployable. Doing so will make a lasting change in their lives and be of benefit to us all.  ​
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    December 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    April 2020
    March 2020
    January 2020
    December 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    May 2015
    April 2015

    Categories

    All
    Abandoned Property
    Advocacy
    Agriculture
    Alcohol
    Amazon
    Annual Government Affairs Retreat
    Annual Networking Table Top
    Budget
    Business
    Capital Improvement
    Capital Spending
    Child Care
    Coastal Zone
    Construction And Real Estate
    Criminal Justice
    Data
    Delaware Business
    Delaware Business Roundtable
    Delaware Manufacturing Association
    Delaware Prosperity Partnership
    Developing Delaware
    Diverse Suppliers
    Economic Development
    Education
    Elections
    End Of Session Legislative Brunch
    Energy
    Envionrment
    Equal Rights
    Escheat
    Federal Energy Regulatory Commission
    Fiscal Policy
    Flame Retardants
    Global Delaware
    Government Affairs
    Grant In Aid
    Guest Post
    Gun Legislation
    Healthcare
    Identity Theft
    Infrastructure
    Insurance
    Kent County
    Labor
    Legislative Brunch And Manufacturing Conference
    Legislative Report
    Manufacturing
    Manufacturing Week
    Marijuana
    Marvin S. Gilman Bowl
    Member News
    Memorial Day
    Military Affairs
    Minimum Wage
    National Manufacturing Day
    Natural Resources And Environmental Control
    Networking
    New Economy
    Nonprofit
    Opioid And Substance Abuse
    Opioids Drugs And Alcohol In The Workplace
    Paid Leave
    Pathways To Prosperity
    Plastic Bags
    Regulation
    Renewable Energy
    Rodel
    Secretary Of State
    Sexual Harassment
    Small Business
    Small Business Alliance
    Small Business Day
    State Chamber's Annual Dinner
    Student Success 2025
    Superstars In Business
    Superstars In Education
    Sussex County
    Taste Of Delaware
    Tax
    Technology
    The Guard And Reserve Banquet
    Tobacco
    Trade
    Trade Promotion Authority
    Transportation
    Unclaimed Property
    Unemployment
    Utilities
    Vision Coaltion
    Workforce Development

    RSS Feed

Copyright Delaware State Chamber of Commerce, Inc.  All Rights Reserved.
PO Box 671 | Wilmington DE 19899
Phone: (302) 655-7221 | dscc@dscc.com | sitemap
Affiliations
U.S. Chamber of Commerce
National Association of State Chambers
​National Association of Manufacturers
National Retail Federation
  • Visit
    • New Castle County
    • Kent County
    • Sussex County
    • Relocate to Delaware
    • First State Kids
  • Advocacy
    • Take Action
    • District Maps
    • Legislative Roster
    • Policy Priorities
    • Political Action Committee
    • Legislative Priority Blog
  • About Us
    • Governance
    • Our Team
    • Affiliates >
      • Delaware Manufacturing Association
      • Delaware Retail Council
      • The Partnership, Inc. >
        • Delaware Principal for a Day
        • Superstars in Education >
          • JHTAward
          • SSE Winners Archive
        • Intern Delaware
        • Delaware Young Professionals Network
    • Committees >
      • Small Business Alliance
    • News & Media >
      • Chamber News
      • Member News
      • Delaware Business Magazine
      • Podcast
      • Advertise with the Chamber
      • DSCC Daily
    • Certificates of Origin
    • JobBank
    • Internships
    • Contact
  • Events
    • Chamber Calendar
    • Annual Events >
      • Annual Dinner
      • Spring Manufacturing & Policy Conference
      • Superstars in Education
      • End-of-Session Legislative Brunch
      • Chamber Chase
      • Delaware Networking Station
      • Developing Delaware
      • Superstars in Business
      • Taste of Delaware
    • Webinars
    • Member Calendar
  • Membership
    • Why the State Chamber
    • Join a Lead Group
    • Membership Application
    • Member Login
  • Directory