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Triad has work to do to create job stability

Sunday, January 23, 2011
(Updated Monday, January 24 - 7:54 am)

— Education, foresight and luck.

Greensboro needs all three if it’s going to build an economy that can prevent or recover from hammer blows like the one American Express delivered Wednesday.

The company said it will close its Greensboro service center by the end of the year and move about 1,500 of its 1,900 jobs out of the region. It estimates that 400 employees will work from home in the Triad.

The news sent clear signals about the need for worker training, the pace of technological change and the recession that keeps battering the work force.

Five experts on jobs and the economy said the Triad can do a lot to defend against such layoffs in the future, but that sometimes an economic hurricane hits no matter what anybody does.

“This certainly is not isolated to American Express,” said Dan Lynch, president of the Greensboro Economic Development Alliance, which recruits industry to the area. Lynch said a number of companies operate call centers in this region, including Citi Cards, and the Internet is a threat to all of them.

“You can go online and do so much more,” Lynch said. “This is a technological enhancement that increases productivity. Any of our service centers might be experiencing the same thing. This is something that we need to keep an eye on.”

Consumers are just as likely to log in to get answers about their American Express charge cards as they are to call an 800 number and talk to one of hundreds of workers who staff the phones around the clock, the company said when it announced the closure.

Lynch will contact such companies in the coming weeks to ask about their plans and learn what they might be considering.

He said the alliance and other economic developers target specific industries, including financial services, for special education programs and recruiting. But Lynch said nothing is sacrosanct when it comes to planning for the future, and the alliance can shift its focus to new growth industries if it finds that others are shrinking.

Little will change, however, without a work force that’s better educated, said Keith Debbage, a professor of urban geography at UNCG.

Debbage, who does economic research for the alliance and its parent the Greensboro Partnership, said the Triad has struggled for 20 years with job cuts in textiles and other traditional industries.

And while the area has replaced many of them with call center jobs, those are clearly vulnerable as well.

“What you’re seeing now is a spreading of that restructuring to low-wage, white-collar employment,” Debbage said. “It’s not just manufacturing folks; it’s also white-collar work where the skill levels are not particularly high.”

The earnings for such workers, somewhere around $30,000 a year, are “slightly lower than the median earnings for this market,” Debbage said.

In some ways, he said, call center jobs are the modern equivalent of manufacturing jobs that didn’t require more than a high school diploma. But call centers do not necessarily improve earnings.

“They were always touted as great job generators but not wage generators,” Debbage said.

People with college degrees, however, tend to be creative people who can work with knowledge and solve problems.

Debbage pointed to a recent Forbes magazine study that ranked the Greensboro-High Point metro region No. 1 in the nation for the fastest growth in the median salary for employed workers with college degrees between 2007 and 2010.

Such Greensboro companies as RF Micro Devices, which makes semiconductors for wireless telephones, and Honda Aircraft, which will begin building the HondaJet next year, employ many workers who have college degrees and a variety of intellectual talents — despite being considered manufacturing workers.

The average salary for manufacturing in the Triad is more than $51,000 a year, Debbage said.

“We’ve got to focus on the highest levels of talent we can possibly produce in our market­place,” he said. That means building strong students, beginning in kindergarten through college and beyond.

“We’ve been hit hard again,” Debbage said. “Yeah, it’s disappointing that it’s spreading into the white-collar sector. It’s a departure. Yes, it’s a hammer blow; you can’t color it any other way. But it really tells our community we’ve got to be supportive of education.”

Education is essential. But North Carolina also must recognize the demographic changes that are driving that need, said one analyst at UNC-Chapel Hill.

One survey estimates that by 2018, 59 percent of the jobs in North Carolina will require education beyond high school, said Ferrel Guillory, director of the Program on Public Life at UNC.

“In our anxiety to try to keep people employed — that’s a humane anxiety — we have also brought in and accepted the relocation of installations like call centers,” Guillory said. “It’s not outdoor work under a boiling sun like picking cotton. It’s not breathing cotton dust. It’s still low-wage, low-skill work.”

“To some extent these (call centers) are kind of holding actions to keep people employed as we get our core working population educated,” Guillory said.

Coming soon, he said, massive population change is on its way. The baby boom generation, which begins hitting 65 this year, is 70 percent white in North Carolina, he said.

Younger adults and adolescents, however, are about 50 percent white, which makes it imperative for the state to make education programs as diverse as possible for black and Hispanic workers.

“The education challenge before us is to close some of the achievement gaps,” Guillory said. “We’re going to be more dependent on blacks and Latinos filling jobs” that have been dominated by white workers, such as accountants, construction foremen and other professional careers.

“It’s not just in gross numbers, but it’s also in closing achievement gaps,” Guillory said.

Workers also bear some burden for improving themselves.

“What happened at American Express is a sobering wake-up call,” said David Moff, CEO of The HR Group, a human resources management company in Greensboro.

“For potentially vulnerable employees, take heed. Realize that reinventing yourselves is vital for survival. Invest in education to be ready for the higher-level knowledge jobs that will emerge and call for higher skills. This is the real world where job security is only as good as your talent, capacity and ability,” Moff said.

“Ask yourself if what you are doing can be moved or automated,” he said.

Still, no amount of education or planning can blunt the edge of a recession that slices jobs across the board, said one analyst who specializes in job development issues in North Carolina.

“In this environment, saying that it’s all due to educational mismatch, really, I don’t think it’s accurate,” said John Quinterno, principal with South by North Strategies in Chapel Hill. “It provides a reason for policymakers to say there really isn’t anything we can do.”

Quinterno, who has done research on community college policy, said, “I think one of the arguments people will use to say that education pays is the fact that the unemployment rates are a lot lower for people with a four-year degree. If you look nationally, the rates have shot up for both groups of folks.”

Quinterno doesn’t throw cold water on the notion that people can improve their employment prospects through education, especially with professional graduate degrees.

But “the fundamental problem that’s facing a lot of folks in the short term,” he said, “there’s just not a lot of job creation, period.”

Contact Richard M. Barron at 373-7371 or richard.barron@news-record.com

Accompanying Photos

Joseph Rodriguez (News & Record)

Photo Caption: The American Express customer service center in Greensboro.

Comments

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77 Hornet

January 23, 2011 - 6:20 pm EST

Can't help but notice that when they interview the folks that are getting let go, the parking lot is full of Toyotas, Nissans, Hondas, etc etc. People, it's time to walk the walk and not talk the talk. It may be too late. Couldn't you see it coming?

Go Birds Go

January 23, 2011 - 7:10 pm EST

All of these cars you mentioned are all manufactured in the USA. Thanks for noticing.

77 Hornet

January 23, 2011 - 8:46 pm EST

Okay let me clarify for those that that need it. Cars that are manufactered here by American companies. Why do I have to defend buying American products? It should have never gotten to this. If you people don't want to earn a living here in this country that's your decision. As for me I support my fellow American.

Go Birds Go

January 23, 2011 - 8:54 pm EST

So by your American Branded car that is made in Canada or Mexico. You obviously don't have a clue.

rmacz

January 23, 2011 - 9:06 pm EST

He ain't even seen the birth certificate of the CEO of Government Motors, so what does he know..ha!...they can't even produce the dadgum thing.
http://www.wnd.com/index.php?fa=PAGE.view&pageId=252833

77 Hornet

January 23, 2011 - 11:41 pm EST

You picked the wrong person to say that to. Try researching my vehicles 05 Lincoln Aviator, 07 Ford Escape, 10 Ford Escape. I know where I come from and where my products come from buddy. I don't even buy shoes made anywhere but here in the USA! Don't come to me with that crap you anti-american.

timflowers

January 24, 2011 - 1:20 pm EST

A huge number of components in a car assembled in the US are made overseas. You'd have to tear a car down to it's individual parts to know how "American" it really is.

77 Hornet

January 24, 2011 - 3:06 pm EST

Everyone knows that. What's your point? Why take the guess work out of it and buy one that was brought over here on a ship? I at least research before I buy and make sure it's a USA brand and assembled here.

Alf42

January 23, 2011 - 9:12 pm EST

I'm all for buying American but I'd rather spend my hard earned money on a quality Asian car than some American piece of junk that will start leaking oil after a year. Spend your money as you wish.

77 Hornet

January 23, 2011 - 11:44 pm EST

Would you really? What good does that do when we'll have no jobs. It's all about jobs I tell you. Nobody is excluded as it will effect all.

uncwgm

January 23, 2011 - 7:10 pm EST

Some great points and we are fortunate to have so many well respected colleges in both the triad and our state. The community college system also does a great job and is well funded as well.

As the author so poignantly notes however, change is needed. NC has aggressively funding the university system for decades yet tuition costs continue to skyrocket. With an ever increasing deficit at both the state and federal levels changes must be made. The concept of tenure must be re-evaluated and state benefit plans must be adapted to fit in with those in the more competitive private sector. Doing so will lower tuition and force both institutions and those working in academia to make competitive choices and be open to change.

New buildings and expansions always sound great on paper, but with funding cuts occurring and more in the future, each new project should be evaluated on a case by case basis with predictable and measurable outcomes a necessity.

We have a great opportunity for change and by making the right choices we will end up with a more efficient educational system that prepares our children for those jobs of the 21st century at a reasonable price.

IvanK

January 23, 2011 - 7:24 pm EST

How's all that HOPE & Chance going for everyone? I noticed now that "Dear Leader" has to run for re-election, he's just noticed he has to work on jobs? Now that the economy is destroyed, JOBS are just now a priority?

Make people dependent on the government, overload the government rolls, and once government services become unsustainable, the people will rise up, overthrow the oppressive capitalist system, and finally create income equality. Collapse the system and create a new one. That‘s the simplified version of Frances Fox Piven’s philosophy originally put forth in the pages of The Nation in the 60s.

Now that the socialist progressives have succeed in destroying the economy, when do we go next?

rmacz

January 23, 2011 - 8:06 pm EST

Like Mr. T said, "I pity the fool"...ha!
http://www.youtube.com/watch?v=4FPGJrzzq_I
naaa

Go Birds Go

January 23, 2011 - 8:08 pm EST

Sounds like a local issue. Waht's Coble doing to get jobs in his district?

rmacz

January 23, 2011 - 8:30 pm EST

HotRodLincoln

January 23, 2011 - 9:07 pm EST

ROFLMAO, that will really bring in the jobs. It bewilders me how the mind of a wing nut works. It reminds me of someone who has had a number of mini strokes.

rmacz

January 23, 2011 - 9:16 pm EST

The question was, "Waht's Coble doing to get jobs in his district?"

Don't you understand English?...ha!

HotRodLincoln

January 23, 2011 - 8:11 pm EST

Ivan you should take advantage of some of the writing classes offered at GTCC so people can understand what you're trying to convey.

Go Birds Go

January 23, 2011 - 8:56 pm EST

Or maybe strat with Economics 101.

Panacea

January 23, 2011 - 9:02 pm EST

Obama isn't "just now" noticing jobs are an issue. Jobs were the point of the first stimulus.

We spend far more on corporate welfare than on welfare for the poor.

Wall Street destroyed the economy. Or weren't you paying attention to the shenanigans in the housing market, derivatives markets, and stock market?

rmacz

January 23, 2011 - 9:13 pm EST

I thought you said it was Bush's fault....oh...I forgot, you said we were out of the recession...ha!

Wait a minute...now it's somebody's else fault...huh?

Naaa.....we know who's in charge...ha!...the guy also said unemployment wasn't going over 8% without the debt package.

Yvonne1

January 23, 2011 - 9:51 pm EST

Who cares if we see Obama's birth certificate. Can you imagine the number of people/organizations who would request same, if allowed. His birth certificate is none of the public's business. Would you want your birth certificate displayed before the public? He was voted in by the majority; public did not request his birth certificate while he was running for office. I doubt public requested it while he was in senate. Get over it. He's in office. If you're not happy with current administration, you know what to do.

rmacz

January 24, 2011 - 6:00 am EST

I care. If it's no big deal, then show the original one, not a copy.

Yvonne1

January 23, 2011 - 10:07 pm EST

The issue is lack of jobs, lack of business growth, lack-luster-economy --- don't blame Bush, Wall Street, or housing market. That's just finger pointing. Rather than waste time finger pointing, develop a doable plan to bring jobs back to America. Our "once upon a time" jobs have crossed borders, oceans, continents, etc. --- encourage elected officials to get on the bandwagon to bring jobs home. Anything less is unacceptable.

creamchess42

January 24, 2011 - 12:13 am EST

I agree with the conversation that took place with the Economy Development Team in this article however I do feel that companies(public and private) should analyze their organization policies when it comes to "inclusiveness and diversity." A more in depth look need to be taken as far as how well are these companies reaching out to hire minorities in higher paying position. North Carlina is very keen on education but yet when I comes to hiring in terms of top level position,higher salary, etc most companies does not reflect "diversity " they are definitely not being regulated by the "equal employment" law so to speak. It is a bother when there is more caucasian in position than any other group. This is especially true in our local colleges and universities. It is true that unemployment rate is high in our states versus others but one thing this community needs to work on is their recruitment efforts when it comes to minorities. I hope this does not offend anybody but it is definitely true...

Gymnaseum

January 24, 2011 - 1:28 am EST

If we can only bridge not just the "achievement gap" between minority (soon the majority, when combined vs. Caucasians in NC) students from K-college, but also the gap between girls and boys; if we can just overcome the advantage in math and engineering the Asian nations are increasing yearly over America, and also adopt those nation's intense veneration of the teaching profession and respect for elders; if we can just focus less on the media-created frenzies that distract from electing qualified and forthright leaders with their own focus on re-directing the trillions to arming our population for a brain-centered revolution, while also inspire young people to get off the texting phone, the Facebook and Twitter wasters of life (and blogs like this, I suppose).... we might avert a continued slide not just into general Europe-like status as a economic power, but beyond that to something like, oh, say, (the near-broke) Iceland.

Which is particularly apt this winter.

timflowers

January 24, 2011 - 1:19 pm EST

Everyone needs to watch the documentary, "Capitalism, A Love Story". It explains how Wall Street bankers and America's 1% "super-rich" have manipulated the government for the past 30 years in an effort to destroy both unions and the middle class. While we stay diverted by mindless pleasures and get worked up over left/right politics, they're picking our pockets and laughing about it over brandy and cigars. Citicorp, for example, sent a letter to it's richest customers saying that America was no longer a democracy, but a plutocracy (government by the wealthy).
We've got to wake up to the reality that average working people are being played as fools by Wall St. and then get to work to repair the damage.

timflowers

January 24, 2011 - 1:30 pm EST

On a more positive note, I think Greensboro in particular is missing a great opportunity to position itself as a "green" leader. We're already known for our extensive system of parks, and we have the word "green" in our name. Why not leverage that with the world's focus on green initiatives and become known as a leader in sustainable ventures? This doesn't have to be a top-down quest for regulations. We can convert buses to natural gas or electric, install more bike lanes, invest in more fuel efficient police cars, have "green" contests, and give companies incentives to replace unused asphalt parking space with grass (to reduce run-off). These or similar steps, coupled with a good marketing program by the Chamber of Commerce, will vastly improve our image, return us to leader status, and help attract a new type of industry to the area.

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