Economic Development Futures Journal

Thursday, April 03, 2003

counter statistics

Lansing, Michigan: Is a Labor Shortage in the Making?

A looming retirement boom and population flight are pushing the Lansing, Michigan area toward a "severe" labor shortage, says a recent report. "A lack of workers over time can cut into economic growth,"said Douglas Stites, chief executive officer of Capital Area Michigan Works, which produced the report jointly with the area's Regional Economic Development Team.

How will the area respond? That's not clear from the report. What do we suggest?

* Work on population retention through an enhanced quality of life strategy.

* Do a better job of engaging local citizens and tell them how important they are. Make them feel valued.

* Explore commuting pattern trends in the regional labor market and develop strategies to increase the in-flow of workers to the area from surrounding communities and counties.

* Assist major employers with their employee recruitment efforts. Link area economic development marketing efforts to major employer workforce retention and attraction efforts.

* Offer longstanding residents and workers "longevity benefits" for sticking it out in the area. What might this include? Offer them discounts on tuition to area colleges and universities, give them greater public recognition for long-term residence and work in the community, provide them with more flexible work schedule benefits, or involve them in the process of recruiting new residents and workers to the area.

The underlying demographic trends causing worker shortages must be addressed if this problem is to be corrected. Many other communities across the country are facing this same issue. Maybe Lansing area leaders should put up a website dedicated to these issues and engage other places with the same problem. An exchange of ideas among these communities could be quite helpful.

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