Understanding Workplace Change in the Pittsburgh Region
by Joe Marzano
We know that change is a part of everyday life, affecting our careers, our businesses and our communities. Recently, the Pittsburgh Regional Alliance (PRA) shared findings identified in several studies on challenges the southwestern Pennsylvania region will face in coming years. As one of three key organizations that are part of the Allegheny Conference on Community Development, a private sector leadership initiative dedicated to regional growth and quality of life in, the PRA markets this region to employers and talent as part of the Three Rivers: One Future plan for improved competitiveness. Here is what they reported.
An Evolving Economy
The regional economy is facing several realities of change. After years of lagging behind the national average, this region's job creation rate has caught up, but the number of working age people (age 18-64) has declined to just under 50% of the total population. Like the general U.S. population, our region's working age population is steadily getting older, with 35% of the workforce population at age 65 or older. Those skilled workers will take with them years of experience when they leave a workforce that currently has fewer people age 20-39 than many other major U.S. markets. Where many other regions refresh their labor pool with international immigration, this region's net international immigration from 1994-1999 was the lowest of 25 major U.S. markets.
Workforce Supply and Demand
Second, unskilled jobs are disappearing from the region, down from 60% of jobs in 1950 to just 15% in 2000, giving way to higher skilled "New Economy" jobs. Education is now vital to maintaining a competitive economy that can fill new positions while adequately replacing those leaving the workforce with a ready supply of willing and able workers.
Investing in Human Capital is of Strategic Importance
As a regional growth strategy, businesses and communities are discovering a solid link between talent development and business development. With business formation and location decisions often based on existing workforce skills, the region must work to help businesses find skilled employees, develop and retain talent, and capture the knowledge of retiring workers while they are still available.
Employers have an opportunity to demonstrate their commitment to learning, help prepare students for careers, and partner with education and training sources to improve relevant workforce abilities and attitudes. Employers also will also benefit from an outlook of training and retaining their human capital investment today, anticipating when future demand for skilled workers will likely outpace supply.
Communities can support employers by promoting life-long learning and aligning education and training with economic development goals. Individuals who commit to their own professional development, find a mentor or coach to guide their efforts, and encourage others to pursue career development opportunities will strengthen workplace capabilities and their own economic potential.
People will migrate to the places where they see economic opportunity. That has been the American way for over 200 years. Together, we can help this very livable region overcome the challenges of change and build a more skilled, willing workforce to fuel our future economic growth. To learn how InterLINK can help your organization create an effective human capital program for employees and executives, contact us today.
Mr. Marzano is a partner with InterLINK Management Consulting, a Pittsburgh, PA based group specializing in leadership and integrated management solutions for small to medium sized corporations and nonprofit organizations. Mr. Marzano improves executive performance by coaching people to lead and communicate with confidence, passion and power. He may be reached by phone at (412)793-5636 or by e-mail at Jmarzano@interlinkbusiness.com.
Copyright 2003 Joseph L. Marzano, all rights reserved.
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