A new report on working in Ohio offers a mixed picture of labor in the state.
The annual State of Working Ohio report is out for 2022 and while researchers are highlighting the strong post-pandemic job recovery, workers still face challenges.
The report shows the state has recovered 85% of the jobs lost to COVID-19, which is three times faster than the recovery from the great recession 14 years ago. While this is good news, Michael Shields - a researcher with Policy Matters Ohio and the lead author of the report - offered a word of caution.
"There is a note of caution, that depending on how aggressively they push to reduce inflation, the Federal Reserve really could reverse this job growth," said Shields. "We could even see a recession, but generally we're seeing really good recovery."
Shields said the inflation over the last two years was kicked off by the pandemic, but corporate profits now make up over 50% of cost increases.
Over the last few decades many workers in Ohio have been forced to transition out of jobs in manufacturing and into lower wage sectors. The report indicates the state has lost over 700,000 manufacturing jobs since the 1970s.
Shields pointed to a decline in union representation as a major factor keeping wages flat since the '70s. He said that while there have been productivity gains in the workplace over those same decades, corporations and the wealthy have captured nearly all of the profits from those gains.
The report shows only 13% of Ohioans belong to a union and Shields said productivity gains are not enough.
"Productivity is not enough to ensure that everyone in Ohio is able to prosper," said Shields. "Broadly shared prosperity depends on more than productivity, it also depends on bargaining power. We have to make sure that working people have a voice at the table and are able to bargain for their share of the wealth that they're creating."
The report shows the median union wage is close to $5 per hour more than non-union workers.
Another challenge Ohio workers often face is wage theft, where employers don't pay for all hours worked. The report states that misclassification of workers as contractors is one form of wage theft, but Shields said it goes further.
"Employers steal from some 213,000 Ohioans through minimum wage non-payment alone," said Shields. "Now, minimum wage non-payment is not the only form of wage theft. There are other things like not paying time and a half for overtime. Things like not paying for all hours worked. Sometimes folks will work a short-term job and just never get their last paycheck."
Shields said Ohio does not have the investigative resources to address the scale of the wage theft problem in the state.
This story was produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.
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South Dakota's new governor is making an active pitch regarding economic opportunities for the state. The renewable-energy sector said it continues to build a strong case, including manufacturing jobs.
Gov. Larry Rhoden spent much of March crisscrossing South Dakota on his "Open for Opportunity" tour to hear about promising development, workforce needs and trade issues. It has not received a visit yet but officials with the Marmen Energy plant in Brandon said they are keeping busy. Nearly 300 people there construct towers to hold turbines for wind energy.
Dan Lueders, plant manager for Marmen Energy, called it the very definition of "American-made" products.
"It's fully American made with American steel," Lueders explained. "We're contributing to the American independence on energy and also providing good-paying manufacturing jobs."
The Clean Grid Alliance said the plant produces roughly 1,000 tower sections each year for shipment throughout the upper Midwest. Lueders noted with data centers and other factors driving up electricity demand, he sees more opportunities for his operation. Nationally, enthusiasm has been somewhat dampened by the Trump administration's push to roll back renewable-energy funding, with a stated desire to focus more on fossil fuels.
But utilities are increasingly turning to renewables to diversify their output as demand spikes.
Waylon Brown, president of Rushmore State Renewables and regional policy manager for Clean Grid Alliance, said if South Dakota keeps the welcome mat out for wind and solar development, other industries will want to set up shop here.
"They're looking for nearby energy generation when deciding what states to do business in," Brown pointed out.
In addition to the manufacturing upside, the Energy Information Administration said South Dakota ranks second nationally for wind energy generation. Brown said, for example, having a healthy power supply could be attractive to the health care sector, noting advancement in medical technology is one of the many other things requiring more energy use.
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More jobs could be coming to Arkansas as companies interested in bringing manufacturing jobs back to the U.S. consider the Natural State, according to a study by the Reshoring Institute.
Rosemary Coates, executive director of the nonprofit, said the state's low minimum wage is cost-effective for companies requiring a large labor force.
"What we generally encourage our clients to do is look at the major metropolitan areas and set up manufacturing just outside of that area so you can pull from the labor pool there," Coates explained. "Or to look at the metropolitan areas in places like Arkansas."
She noted although manufacturing remains cheaper in other countries, supply-chain problems experienced during the pandemic are making U.S. companies explore options for reshoring. The study did not address the financial effects of possible Trump administration tariffs on materials manufactured abroad.
Twenty states across the country, mainly in the South, pay the federal minimum wage of $7.25 an hour. If labor is a high percentage of a company's costs, it could be less expensive to reshore operations. Coates added some companies opt to have plants in multiple countries.
"Bringing some manufacturing to Mexico and some to the U.S. and keeping some in Asia," Coates outlined. "Companies are really rethinking the whole idea and strategy about where in the world they're manufacturing."
She stressed labor rates vary between rural areas and major cities in every state. Other costs associated with reshoring include local and state taxes, training, tax credits and logistics.
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A lack of access to in-home care in Pennsylvania has reached a crisis point, according to professionals in the field, leaving thousands of residents without essential services.
More than 400,000 Pennsylvanians rely on in-home care for daily support.
Mia Haney, CEO of the Pennsylvania Homecare Association, said Gov. Shapiro's budget puts seniors at risk, as it only includes $21 million for direct care workers and only for what's known as the directed model, which employs just 6% of them, leaving 94% without funding.
"We do not have enough workers to meet the need for folks who are looking for services and every single month, 112,000-plus shifts go unfilled," Haney pointed out. "That could be an eight-hour shift, it could be a six-hour shift, but a caregiver is not coming and someone is waiting for services."
Haney emphasized legislators control budget priorities and insisted they must support the direct care workforce this year. Without funding increases, she argued, many will go without care, leading to harm and unnecessary nursing facility placements for those who could receive services at home.
The General Assembly must vote on the budget by June 30.
Haney notes by 2030, one in three Pennsylvania residents will be over 65, increasing the demand for caregivers. Meanwhile, the number of potential caregivers remains steady, creating a growing shortage as the elderly population rises.
"We just this year had a study released that showed that the rates here in Pennsylvania are insufficient, meaning that you cannot possibly recruit and retain quality workers with the Medicaid reimbursement rate that we have today," Haney reported. "In fact, (it) indicated that we are 23% below where we should be."
Pennsylvania's average reimbursement rate for in-home care is just $20.63 cents per hour, which some feel is insufficient to maintain a stable workforce.
In comparison, neighboring states -- such as Delaware, Maryland, New Jersey and West Virginia -- offer rates that are 25% to 75% higher for the same services.
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