State chamber calls for adding workers

State chamber calls for adding workers

The Kentucky Chamber of Commerce has called for the state to set an ambitious goal of adding 130,000 new people to the state workforce by 2027 — four years and six weeks from now.

“For decades now, the state has been satisfied with low rates of workforce participation and meager growth in the size of its workforce,” the report released this week says.

It adds, “With so many opportunities coming to the state, now is the time for state leadership to build a bold plan to fill the jobs of today and tomorrow and deliver on the promise of a bright economic future for the Commonwealth.”

The statement says, “Between 2001 and 2021, Kentucky’s workforce grew by less than 3%. This summer, Kentucky saw 100,000 more open jobs than individuals actively looking for work.”

Candance Castlen Brake, president of the Greater Owensboro Chamber of Commerce, said, “The most critical issue facing the majority of our members is workforce related. And most of our members report that if they had available employees they would be able to grow their business. That fact is a call to action for leadership at all levels.”

She said, “Our local community has long been in the business of solving problems on its own, but this issue also must be addressed on a statewide level.”

State needs strategy Kevin Smith, chairman of the state chamber board, said, “While Kentucky is seeing tremendous private-sector investments, our workforce challenges are creating an unsustainable situation for businesses. Kentucky needs a shared strategy for growing a high-skilled workforce to fill the open jobs of today and tomorrow.”

The chamber statement says the strategy for growth should “include retaining Kentuckians already active in the workforce, attracting new workers from other states and pulling into the workforce Kentuckians sitting on the sidelines.”

It adds, “The wide gap between open jobs and Kentuckians looking for work has been a hallmark of the state’s economy in the aftermath of COVID and reflects how intense the demand for workers has become among Kentucky employers. But we also know that more jobs are coming.”

The chamber said, “In the past two years, state officials have announced more than 30,000 new jobs created through private-sector investments in Kentucky, including the 5,000 projected jobs from the Ford Battery Plant in Hardin County.”

Workforce is stagnantIt added, “Setting a goal of increasing Kentucky’s workforce by 130,000 in four years is ambitious. Over the past two decades, the growth of Kentucky’s workforce has been stagnant, consistently hovering around 2 million workers and growing at an average rate of just 0.14% per year. In total, Kentucky’s workforce grew only 2.8% between 2001 and 2021.”

North Carolina, the chamber said, grew its workforce by 23% during that period and Texas’ workforce grew by 35%.

The report said that in September there were 175,000 open jobs in the state.

Between 2020 and 2021, it said, Kentucky’s workforce grew by only 10,000 people.

At the same time, Tennessee grew by 73,000.

Brake said, “When we look at the workforce growth rate of states such as Texas and neighboring Tennessee in comparison to Kentucky, it becomes clear this issue is solvable.”

Would be largest ever

If Kentucky is successful in meeting the goal, the chamber said, it would mark the first time the state’s workforce has topped 2.1 million workers.

The report suggested that the Kentucky General Assembly reduce income taxes to attract and retain high-skill workers, and increase the number of Kentuckians with college degrees and post-secondary certificates.

It called for the state to invest in key workforce training programs like the Kentucky Chamber Foundation’s Talent Pipeline Management program, increase access to affordable, quality child care and incentivize more early retirees to rejoin the workforce.

And it suggested that the state provide more pathways for individuals with disabilities to actively participate in the workforce, support successful re-entry for ex-offenders seeking employment, tackle the substance use disorder crisis and support fair chance hiring, among other things.

By Keith Lawrence Messenger-Inquirer