This week the state announced Michigan’s unemployment rate dropped in June to 3.8%. That is the lowest unemployment rate the state has seen in 17 years.
Many economists consider an unemployment rate somewhere below 4% full employment, or the point where everyone who really wants a job can get one. You might think it is great news, but for companies now hiring it is a hardship.
“We all are in the same boat. We all are looking for people,” said John Stevens, Hercules Machine Tool & Die President.
At Hercules Tool and Die, you could say they facing a Herculean problem. A “help wanted” sign has been up for years.
“I can’t remember a time in recent years when we have said - we have all we need,” said Stevens.
Like many companies, Hercules can’t seem to fill open positions before they again need more workers.
“It limits the amount of work we can take. We can only take as much work as we can do, so therefore the growth of the company is limited based on how many people you can get,” said Stevens.
Right now there are about 100 workers at Hercules. Stevens said he could easily use up to 20 more. The company is looking for ways to connect with high school students to educate them about what tool and die workers do here. For the record, they build the machines that build cars.
The company right now has about 20 apprentices learning the trade.
“Its not easy by any means. It is definitely a good career. You can make good money for sure,” said Josh Gentner an apprentice.
“We will pay you while you learn. We will pay for you to go to school. We will pay you while you are learning. You will graduate with no debt and cash in the bank,” said Stevens.
The low unemployment rate is also forcing companies to spend more on overtime. The President of C MAC Transportation in Brownstown Township says competition has also forced companies to increase wages to attract new employees. Right now his company has about 20 job openings for a variety of positions postedhere.
