East Bay Business Times - by Warren Lutz
Bob Lanter of the Workforce Development Board of Contra Costa County.
Stephanie Secrest | East Bay Business Times
A sagging housing market continues to dampen the East Bay job market, but several sectors show some promise.
Local jobs experts are optimistic about modest job growth in the utilities, transportation, government and green business sectors. The trouble may be a lack of qualified workers, according to Bruce Kern, executive director of the East Bay Economic Development Alliance.
"We have individuals that are very talented, but we need to retool and provide the skills so they can enter some of these emerging areas," he said. "The issue is, are we preparing the work force for the future?"
Overall, the region's job picture remains pretty dismal.
Alameda, Contra Costa and Solano counties lost a combined total of 15,400 jobs over the past year, according to the latest figures from the state's Employment Development Department. Construction and financial entities had the biggest declines, accounting for 6,700 and 5,400 fewer jobs in all three counties, respectively. Most of those losses were in residential construction, and at banks and credit unions.
The good news is that government work grew by 4,600 jobs over the same period, led by public school employment. Other areas that saw year-over-year job gains include highway construction, chemical manufacturing, warehousing and storage, engineering and natural resources.
That makes sense to Bob Lanter, executive director of the Workforce Development Board of Contra Costa County, who is seeing job growth in local refineries, at PG&E, and at local wastewater treatment plants.
"These industries are facing huge shortages of labor due to retirement attrition," Lanter said. "For anyone who can get skilled training as an electrical engineer or machinist, there are good job prospects."
The problem is a shortage of available training for those preparing to enter the work force. "They don't teach auto shop anymore in high school, or metal shop," he said.
Lanter expects as many as 12,900 people displaced by the housing industry and its related sectors to show up looking for help at his agency's four career centers, according to current projections. That's the highest number since the centers were built 10 years ago.
Justin Wehner, an EDD spokesman, pointed out that job numbers for eight out of the 10 major job market sectors tracked by the state were "in the red" for Contra Costa and Alameda counties. "The housing slump is continuing to affect construction and financial services, and it's also bleeding over into retail," he said.
Still, economic developers think there's reason for hope. According to Kern, the East Bay still boasts the most jobs in the Bay Area region, and east Contra Costa County's manufacturing base should benefit from upgrades to Highway 4 and a planned deep water ship channel.
In addition, Kern said, the region received $1.2 billion in venture capital over the past year, with most of the money directed toward emerging technology companies in the bioscience and green-business sectors. "We have a community of innovators, whether they are products or businesses," Kern said. "That is our strength."
Solano County was hit hardest from the housing bust and its related problems - it lost 2.5 percent of its jobs since last year and its unemployment rate jumped 0.5 percent to 6.5 percent between April and May. The unemployment rate rose 0.4 percent to 5.7 percent overall in Contra Costa and Alameda counties.
But Solano County's job outlook also has a bright side, according to Michael Ammann, president of the Solano Economic Development Corp. Government employment grew by 700 jobs, or 2.5 percent, since last year, which Ammann attributes in part to recent road and bridge projects.
In addition, the county expects to receive another $600 million in transportation improvements over the next several years, Ammann said. The money will provide significant upgrades to Interstates 80 and 680 and Highway 12, particularly in the area outside Cordelia where all three routes meet, generating snarling traffic during rush hour, as well as frequent accidents.
"We're going to have a lot of construction jobs," Ammann said. "I would say some of the residential construction people will move over to heavy road construction over the next five years."
Job growth in the public works, manufacturing and energy areas may also spell opportunity for those readying to enter the job market. Lanter said high school graduates who aren't planning to go to four-year colleges should consider learning a trade. His agency plans to address the training shortage by partnering with local businesses and Diablo Valley College, which already has a course in solar installation, to develop new courses that address emerging industries.
Lanter suggests young people should "look to the jobs that have historically been blue collar that are no longer blue collar, whether it's learning auto tech, welding, or the construction trades. ... Those skills will get you earning 60K or 70K in less than two years," he said.
Kern also said high school graduates should keep an open mind.
"What's desperately needed is for young adults to understand what the workplace demands are," he said. "An opportunity to intern, and an opportunity to explore careers is really important."
