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WSJ: Companies Seek Workers in Dead-End Jobs to Fill Openings

Image: WSJ: Companies Seek Workers in Dead-End Jobs to Fill Openings
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By    |   Monday, 11 Sep 2017 11:09 AM

American workers are less willing than prior generations to relocate to find better-paying jobs, pushing some companies to seek out workers who are underemployed, The Wall Street Journal reported on Sunday.

With the national jobless rate near a 16-year low, companies are seeking to open offices in cities with a high proportion of working-age men and women who are doing freelance gigs or menial, dead-end jobs.

“They may be in jobs, but they may be jobs they don’t like or don’t have the opportunity for advancement,” Ernie Lynch, the president of Lynch Fluid Controls Inc., a Canadian company that makes components for hydraulic and motion-control systems, told the newspaper.

His company opened its first U.S. warehouse near Buffalo, New York, a city that has suffered from a long-term loss of industrial employers. More than 132,000 people are underemployed in the area, according to research commissioned by economic development group Invest Buffalo Niagara.

Software developer AvePoint Inc. opened an office in Richmond, Virginia, and filled 70 jobs for 20 percent less than the cost of hiring people in its home state of New Jersey. The company plans to have 200 employees in the office by the end of next year.

About 5.3 million U.S. workers, or 3.2 percent of the civilian work force, are in part-time jobs but would prefer a full-time position, according to the Labor Department. The proportion of underemployed has declined from a high of about 6 percent in 2010 but is still above the 2.8 percent average in the decade before the last recession, which ended in June 2009.

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The enactment of Obamacare was said to compel some employers to shift jobs to temporary positions to limit the cost of full-time benefits. The number of people working temp jobs has risen 73 percent since the end of the recession. Another study published in the journal Health Affairs contended Obamacare had no effect on part-time employment.

Meanwhile, the job market has improved under President Donald Trump, particularly for people who were likely supporters of Hillary Clinton, according to an analysis by The New York Times.

The newspaper based its estimates on data from the Labor Department’s non-farm payrolls report and a model of voting based on demographics.

“Median usual weekly earnings are up 2.9 percent for likelier Clinton supporters versus 1.8 percent for likelier Trump supporters,” according to the newspaper. “The story is similar if we look at eight months of data after Election Day instead of six months after Inauguration Day.”

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American workers are less willing than prior generations to relocate to find better-paying jobs, pushing some companies to seek out workers who are underemployed, The Wall Street Journal reported.With the national jobless rate near a 16-year low, companies are seeking to...
unemployment, jobs, labor, employment
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2017-09-11
Monday, 11 Sep 2017 11:09 AM
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