Job market still a bumpy experience for St. Paul job seekers

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As with the rest of the country, there has been a lack of jobs or well-paying jobs that has made earning a living a daily struggle. In November 2012, the Saint Paul unemployment rate was 5.6 per cent, compared to a national rate of 7.7 per cent. (Photo by Bruce Silcox) As with the rest of the country, there has been a lack of jobs or well-paying jobs that has made earning a living a daily struggle. In November 2012, the Saint Paul unemployment rate was 5.6 per cent, compared to a national rate of 7.7 per cent. (Photo by Bruce Silcox)

By JAN WILLMS

It’s been a bumpy road towards employment for St. Paul residents the past few years, and that pathway to jobs still has a few potholes before smooth pavement prevails.

As with the rest of the country, there has been a lack of jobs or well-paying jobs that has made earning a living a daily struggle. Whether a worker with lots of experience who has been laid off, a college graduate with training but a lack of experience or an entry level worker who is trying to support himself or herself, the past few years have been difficult.

In November 2012, the Saint Paul unemployment rate was 5.6 per cent, compared to a national rate of 7.7 per cent. The number of people living in St. Paul who are unemployed has dropped from 11,611 in June of 2010 to its current number of 8,210 in the statistics from November 2012 from the Minnesota Department of Employment and Economic Development.

These numbers show promise for individuals seeking employment, and they are reflected in some of the comments offered by agencies trying to help people find jobs.

“Things are definitely looking up, and the trend has been that way,” said Terry Middendorf, director of Career Development at Hamline University.

The university employment services are available for Hamline students and graduates.

“From the last couple of years until now, job postings at our site have doubled,” Middendorf stated. “There are a lot more opportunities coming in.”

He said his department has seen more inquiries and more positive response from employers.

“We do a lot of outreach,” Middendorf explained, “and people have been responding. Employers are calling in, and there is more activity happening.”

He said the National Association of Colleges and Employers performs an annual survey, and this year showed a 13 per cent increase in hiring from July through September.

Middendorf noted that in a broad sense, retail seems to be an area that is rebounding, and he considered that the business field in general is improving.

He also cited computer science, IT systems, health care and financial services as career fields that are offering more opportunities.

“Boom, and everything is back—that’s not going to happen,” Middendorf claimed. “It’s going to be a gradual increase in employment. You see a decrease, then it’s neutral and now it’s a positive outlook, and that’s good news. But it will happen slowly.”

He added that from a student perspective, people are finding a chance to engage and do things.

“They are actively seeking and seeing more positive results,” Middendorf said.

Although Andrea Pendleton, director of employer services at Twin Cities RISE! (TCR!), sees things from a slightly different perspective, she, too, sees a hopeful trend in the employment outlook.

TCR!, with locations in St. Paul and Minneapolis, was developed in 1993 by Steve Rothschild, former executive vice president at General Mills, to help low-income workers, particularly people of color, to find employment.

“Our program is a long-term job skills training program, with a high focus on Personal Empowerment,” Pendleton said. “We don’t teach just the skills to get a job, but also the skills to keep a job.”

She said TCR! works with entry-level employees. “We have a market-driven focus placed on employer input to ensure our students are as competitive in today’s market as possible,” Pendleton stated.

The agency has an 81 per cent retention rate of people remaining on their jobs for the first year, and a 70 per cent retention rate for the second year. These rates have continued throughout the economic downturn.

“We attribute these rates to our Personal Empowerment training and coaching model, with a heavy emphasis on employment and how to be successful in the marketplace,” Pendleton explained.

She said each student works one-on-one with a coach from the time they walk through the door through the first year of employment, and even into the second year.

“The definition of employment for us is a permanent job that pays $20,000 a year or more,” Pendleton said. “And we like benefits. Our jobs are not seasonal or temporary or minimum wage jobs.”

She explained that students enter the program earning an average of $5,880 per year, and the average salary of the job they take is $26,788 per year.

“That is a 355 per cent increase in their income,” Pendleton claimed.

She said that TCR! serves adults with the most barriers to employment and partners with employers who provide internships and volunteer opportunities.

“The students get job experience, an updated resume and new references,” she said.

Pendleton noted that employers know what a rigorous training program is offered through TCR! and understand the participants are most likely to be successful workers. Thirty-three different classes are available, ranging from forklift certification, writing, Personal Empowerment, career development and customer service to computer classes.

TCR! assists with resumes and cover letters and helps people prepare for interviews. Pendleton stressed that although TCR! gives students the tools, they make their own successes and learn to transform their lives.

Attracting businesses that do provide a living wage and benefits is a goal of the Central Corridor Funders Collaborative. Chris Ferguson, a business owner with Bywater Business Solutions and a chair of one of the working groups of the Collaborative, said his group is in the Thrive portion of its mission.

“We want to help expand and attract new businesses into the area,” he said. “We’re working with the Neighborhood Development Center on a plan to create a strategy to provide additional financial tools for businesses to grow.”

Ferguson said the Collaborative is made up of nonprofits, business owners, the Midway Chamber and the City, all groups working together to bring in new businesses, not just to the Central Corridor but focusing on an area from Snelling Avenue to Energy Park Drive and from the Capitol to the University campus.

He said attracting more living wage jobs to the area is the group’s focus. “We’re looking at retail, but it’s also a real challenge getting manufacturing companies to come in,” he said.

Trying to meet the immediate needs of businesses and work closely with residents who are unemployed or underemployed are the goals of Corridors to Careers, a program funded by HUD and entering its third year.

“We try to help residents build up their skills and employability,” said Janet Guthrie, project manager. “And we encourage them to think beyond just that next job. We help them network and offer community learning sessions.”

The construction for light rail along the Central Corridor has had a definite effect on businesses along University Avenue.

Courtney Henry, who has eight McDonald’s franchises, three of them along University Avenue, has been affected by the light rail construction.

“We’re starting to come back, but not to where we were before construction started, “ he said. He said the three McDonalds on University have had a more difficult time through the economic downturn than the other locations.

“But traffic’s coming back a little, and we definitely will be hiring,” Henry said.

For Steve Johnson, business loan officer for the Park Midway Bank and incoming chair of the Midway Chamber, businesses are generally showing a slow but steady growth.

“I would like to say more revenues are causing that, but I think it’s more because of reduced expenses and tightening the belt,” he said. Johnson said that although the construction along the Central Corridor took its toll, more businesses are stabilizing and he is hoping there will be business development opportunities along the Corridor in the future.

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