Wage Deficit, Not Skills Deficit

Times Argus letter published Jul 11, 2007
Don't blame the victims

The article, "One third of Vermont youth drop out of work force," gets it wrong, blaming the victims — working Vermonters — instead of low-road employers. The article quotes Mr. Stenger about "good-paying, open positions," but provides no facts to back up his assertions. You report that Rep. Kupersmith claims that "employers have the jobs, but Vermont lacks the trained workforce to take those positions."

The so-called "drifters" may take advantage of new training opportunities, but most simply need livable wage jobs. Many of us used to find such work in factories or the building trades. Although factory jobs have declined, and wages too, the building trades could still offer a decent life. However, anti-union campaigns and policies have succeeded in depressing wages. We now have major employers using the H2B program to bring in hundreds of aliens to work (what are now) low-wage construction jobs, while some of our skilled trades-people leave the state for better pay.

As for the departing college grads, they're following the money. Many professional jobs in Vermont pay less than in other states. Actually, if every adult in Vermont had a graduate degree, many would still leave because 40 percent of the jobs require nothing more than short-term on-the-job training.

About all those "good-paying open positions." Where are they? Most entry level jobs in Vermont for new college grads are not "good paying" compared to other areas (let alone jobs for those with skills other than a degree). Mr. Stenger may be referring to mid-level professional positions, but many of those jobs are filled by in-migrants from other states.

Wage problems faced by the working Vermonters do not come because we have skill deficits, or because of skill shortages that hamper our competitiveness. We have had rapid productivity growth for the last 10 years with the very same workers who now do not participate in economic growth. Moreover, it is hard to claim that the stagnant wages of college graduates and the failure of new college graduates to locate jobs with benefits is the result of deficient skills.

No, Vermont's workers do not face a "skills deficit," rather we face a deficit in the wages and benefits that employers provide. This gap between pay and productivity growth is the result of policies that shift bargaining power away from the vast majority of us and toward big employers: the steep drop in unionization rates; unfettered globalization and off-shoring that increasingly puts us in competition with workers around the world; economic deregulation and the privatization of government services; and escalating pay for CEOs.

Unless and until Vermont employers raise wages, the exodus will continue.

Traven Leyshon