tv Small Business Workforce CSPAN June 15, 2018 3:55am-5:04am EDT
good morning i would like to call the hearing to order. welcome to our friends in the back of the room. everyone be on your best behavior. i call this hearing to order. we are waiting for some of our colleagues to get here i think they are on the way. i usually do not start off by calling attention to the title
of the hearing but i think this is one of the most important issues facing the country. today we are having a hearing on shrinking the scale gap solutions for the small business workforce shortage. with got a great panel before us this morning. i would like to welcome everyone . let's begin. the american economy is creating jobs, at historic rates. 1 million jobs have been created so far this year. the unemployment rate is at an 18 year low. there are more vacant jobs than unemployed jobseekers in the united states, that is the good news. there was an article in the new york times, we ran out of words to describe how good the jobs numbers are. small business -- small business -- small business optimism is at an all-time high. the problem is, when there are 6.6 million job vacancies,
small businesses have a particularly time -- difficult time finding and retaining qualified employees. 57 % of surveyed small business owners either hired workers or were trying to hire the workers within the last month. 88 % of those hiring or trying to hire them reported few to no qualified applicants for the vacant positions. it raises a significant secondary issue according to the american enterprise institute, there are 7 million men currently missing from the workforce. the female labor force participation rate has declined by six % since 2000. one in seven, 16-24-year-olds, are neither in school or working. this could have serious economic implications for decades to come. the groups aren't even included in the labor market. we do not want to forget them either. our committee has held several hearings over the past few months. we have brought
together a panel to learn more about how to solve the problem. through the hearing we hope to hear ideas that will ensure america's small businesses have a workforce with the right skill set to prepare -- to propel the american economy forward. it's not about some tweaks here and there, the distortions in the labor market affect every state and congressional district in the nearly 30 million small businesses that like small businesses in the nation. i thank you for being here and yield to the raking member -- ranking member for his opening remarks.>> good morning. thank you mister chairman. the foundation strives to regain their goal, global competitiveness is critical that companies of all sizes have access to the workforce with the skills they need to reseed -- succeed. some jobs will require some post secondary education. this will only increase.
small business create 70 % of all new jobs. analyzing the united states workforce reveals two areas of concern. and existing gap from workers and a large increase in the retirement of baby boomers within the next decade. emphasizing the importance of transforming the education process requires various kinds of workers. >> if we are able to meet the demands of the trained workers, this will weaken the ability to compete globally. they face challenging obstacles to the sufficiency. it's troubling because there are fewer workers seeking jobs. with unemployment rates at a low of 3.8 %, small businesses will be at even more of a disadvantage as they compete,
especially those who are training. how do we address the skill gap? targeted post secondary education, it's a skill or certificate system. it's for securing qualified employees to help them grow. partnerships among industry, educators and policymakers are playing a role in the workforce. too many american workers and small businesses have been left behind. that is why creating this with training, certification and the programs leads to a stronger workforce, better learning, higher productivity, we must change the stigma surrounding the jobs and refocus our discussion for future generations as they lead us. we will discuss things critical to our economy to recover.
firms will be better positioned to receive -- succeed. improvement in training and education will reduce the unemployment rate. this is exactly what the nation needs, now we look to create more jobs and ensure that small businesses are prepared to move the economy forward. i look forward to the hearing and thanks to the witnesses were being here. >> thank you. if committee members have an opening statement prepared i ask they be submitted for the record. i would like take a moment to explain the timing rights. you will each have five minutes to deliver testimony. the light will begin green and when you have one minute remaining the light will begin to turn yellow then at the last five minutes it will turn red.
with that, let's get to introducing our first witness, the first witness today is mister todd, this is a global asset management firm, they manage investment in private equity, real estate infrastructure, and hospitality. that expertise on labor markets across all of these sectors and will lead off to explain what's going on in the real world. >> he is a bold innovative voice on navigating america's economic challenges. thank you for joining us mister hit. >> good morning, chairman and ranking member evans. i'm eager to talk to you about
this problem is facing. i'm the founder of kit or capital. >> we are discussing the labor shortage that could topple the country if we don't fix it. labor shortages mean long distances can't expand, they could constrain economic growth in a visual way. when you don't have the labor units one of the only options you have. my goal is to offer practical solutions to address the labor shortage. let me briefly illustrate this problem that we face. in april there were 6.7 million jobs open in the united states. the number doesn't include workers who dropped out of the workforce, it was the first
time since 2000 that the number of open jobs exceeded the amount of workers. in my written testimony i have a graphic that shows the rate of unemployed individuals to the jobs available. after the great recession, there were four unemployed workers for every u.s. job opening. today it's less than a 1-1 ratio. in my written testimony i have graphics showing the divergence between the population in midsized cities and rural areas. there's a gap between jobs and the working population. this hits small businesses the hardest. this same principle applies to hiring workers. nor people perceive working for small business as a startup, at risk for the challenge of course.
they have a hard time absorbing the way legislation goes along with the labor shortage.>> this could be solved to offer higher wages but they could affect workers who are not there. higher wages impact pricing and make businesses unattainable. there are factors that contribute to labor shortages. labor mobility, this is one we don't hear enough about. if you remember one statistic, i wanted to be this, the 2017 americans -- in 2017, the moving rate was 11 %. that is a historic low, half of what it was 30 years ago. instead of moving to search for a new job, today's americans are more likely to drop out of the workforce. they connected the decline to the increased income inequality. family ties, housing costs and
level of education impact families willingness to move. we make it easier for them to move. >> businesses have a role to encourage mobility. lawmakers need to work in tandem with the american job creators to solve the problems. the first is to reinstitute tax deductions. a local supporter of the tax cuts and job act, doing away with that deduction, as you know, when you tax something you generally get less of it but when you incentivize you get more. building these incentives will unstick workers. letting them collect the benefits up front, if they are seeking to move to another location in order to take another job.
they executed a small-scale mobility program in the 70s. the search and relocation assistance program involved 40 different unemployment offices across several southern states. it offered different types of assistance ranging from providing information about jobs to getting individual grants to take the jobs to other places. and analysis found those wages were higher. local, state, and federal government provided worker training. different rules for federal programs like decayed and supplemental nutrition, the assistant program for the major barrier to keep people from moving. all rental housing vouchers for mobility's in the metro area, along waitlist was a strong -- a strong incentive against relocation. i'm running out of time here. chairman may i have another 40 seconds. high housing costs are the reason families do not seek the robust job markets.
states like texas which have lex -- les districts -- less strict zoning laws have varying rates. the wall street journal's shandy rice found that in nebraska 990 jobs were available but only a total 65 homes for sale. the state is considering an incentive for homebuilders to build. occupational lysing regulations is an incentive to moon is mike occupational licensing regulations is also an incentives to move. >> this is a travel issue. it's an issue that we must tackle to increase the growth rate and improve income and a quality. thank you for your time and consideration and for your service to the great country.>> thank you for your testimony,
it's good to have a non-tribal win-win, i think you hit the nail on the labor mobility peace. we will come back to you for the question and answer part. the president and ceo of hamilton riker it solutions in nashville tennessee, the information technology staffing firms providing business for management consulting and information technology solutions. thank you for joining us today and for lending your expertise, you may begin. thank you.>> morning, other members of the committee, i'm the chief executive officer of hamilton riker, the current chairman of the american staffing association. i'm privileged to recognize these organizations these morning -- this morning. hamilton riker will with the industry for the provision of
industrial administration and information technology staffing, as well as recruiting, management consulting, and it solutions. the headquarters are in nashville tennessee with 35 locations across the u.s. we helped thousands of people find great jobs and great careers providing customers many of which are small businesses with a staffing solution, concentrating on manufacturing, distribution, clerical, and skilled trade discipline. the american staffing association is a national trade association that has been the voice of the u.s. staffing industry for more than 50 years promoting the industry with flexible employment opportunities through legal and legislative advocacy, public relations, education, and the establishment of high standards of ethical conduct. they strongly support policy to help america's workers working closely with the department of labor and other federal agencies for the development of a new and expanded apprenticeship program. the industry employees with 3 million employees per day, more than 15 million per year. they recruit and hire their
employees to assist in special work situations, skill shortages, and seasonal workloads. or to perform special assignments to projects. they work in virtually every skill level and job category including industrial labor. most everyone is aware of the latest report highlighting the current situation in the workforce, there are more jobs than people. we have seen this firsthand in hamilton riker and in almost all of our markets. with the economy at full employment we are taking measures to upscale the existing workforce by taking workers that have a certain skill set and providing them the training to allow them to be promoted or moved to another position at a higher wage rate. we have instituted soft skill implementation to address
issues like conflict resolution, workplace violence and even basic workplace practices, call-in procedures, how to deal with differing workplace cultures. this morning i wanted to highlight the specific measures company -- the company is taking to assess skills and train workers for one of our manufacturing clients. the company partnered with ivr train, a spinoff company from tennessee tech university to develop virtual reality training for the manufacturers. for those of you who do not know, this is an interactive computer-generated experience taking place within a simulated environment incorporating auditory, visual, and other types of sensory feedback. the current technology most commonly used in headsets, multi-projected environments, sometimes the combination to generate realistic images and other sensations that stimulate a user's physical presence in a virtual or otherwise imaginary environment. we specifically were interested
in how this could assist us in recruiting, testing and training forklift drivers. we installed this in our office. it's got eight assessments to test the variety of the skills to enter into that. purchasing the forklift, we could on to her -- we could only interview applicants and send it out to clients for testing on these actual machines. we are better able to assess the applicant skills using the vr technology. we are implementing a training program for the workers who may have had previous forklift experience and upgrade their skills before being placed at the crime sites. i've included this short video that will give the committee a better understanding of how this forklift operates. this is one of the example the company does make one of the examples the company offers -- this is one of the example the company offers. thank you for your time.
>> i do not believe there's any sound but this is the actual stream in our office, it fits on a 12 by 12. it's sitting here with the glasses. >> the major cost for this is the computer obviously the video cartridge is inside of there. 15-$20,000. the simulator and computer equipment, eight assessments we can test. i included the one that passed.
i wanted to show you that is what it looks like. the first assessment, going through this forklift then it becomes progressively harder every time. picking up the pallet, mapping this out. then we send this on for testing. thank you. >> thank you for your testimony. the next witness is angela, she's the ceo of st. mary's foundry and iron casting producer in st. mary's ohio. under her leadership, the foundry established the saint mary's foundry technical institute which encourages employees set goals and taking classes outside of the department to be well-rounded while remaining experts within their field. thank you for being with us today. >> could morning chairman and
the raking members -- ranking members, thank you for giving me the opportunity to discuss the shortage and taking the time and energy to address the challenge. i'm the fourth-generation president of st. mary's foundry. my great-grandfather started this facility in 1917 in st. mary's ohio. i care about this state which is why i'm here today and why actively participate in the foundry society and serve on the board and as president as the ohio cast metal association. ohio remains among the top three states for manufacturing employment in the country. we have the highest concentration of metal casters in the nation. metal casting is one of our nations oldest and most important industries as castings made from iron, steel, and aluminum alloy is used produced 90 % of durable goods
and all manufacturing machinery in the u.s. st. mary's foundry employs 160 associates and manufactures iron casting ranging from 500 often 60,000 pounds. we have necessary alloys transformed into key components like compression cylinders for the natural glass -- natural gas by klein. if you've ever used natural gas i could say one of our fine casting has set your light. america's labor shortage has reached a record high, as the chairman said with unemployment rates dropping to an 18 year low, this is a real challenge. if you gather a group of metal casters and ask them what their biggest challenges today. 80 % will cite the shortage of both the skilled and unskilled workers. this shortage threatens to slow the economy, impede manufactures ability to deliver
on customer demand, hurt our bottom line through lost revenue and opportunity. at the foundry, with got a great working environment, competitive wages and benefits and are struggling to fill job openings, we are challenged on a number of fronts. an aging workforce, local housing shortages, local unemployment rate at 2.8 %, the drug epidemic and less people choosing manufacturing careers giving the perception that manufacturing is outdated, the combination of these factors, the shortage has turned into a perfect storm. we have 16 openings for a variety of jobs specific to our industries such as casting finishers and mold makers. we held a job fair that promoted the fare on our facebook page and put up billboards along the interstate and encouraged employees to promote our job openings on social media.
76 applicants, we felt was successful. of those 76, 46 failed the on- site drug test and six did not follow up on the next step of the process. we hired 24 applicants and primarily due to attendance issues, only four remain employed at the foundry. as you can see, finding applicants especially drug-free ones is a struggle. typically 25-30 % of prospective employees pass the drug test. given the fact we've had -- have the equipment and molten metal it's vitally important the workers are drug free. the industry is stepping up to make a commitment to reach out to interview in local venues.
founders are working with the local labor departments, technical colleges, veteran organizations, and correctional facility for the referral. we provide in-house training including apprenticeships for the more technical positions and for associates to go to technical classes. it's to help the facilitation of the rebuilding of manufacturing by refocusing resources in vocational and technical resources available in high school and community colleges across the country. >> it provides resources for secondary schools and community colleges to teach manufacturing skills and other technical trades. i understand that the committee is scheduled to act on several provisions, i hope that the senate will vote to move forward on bipartisan legislation soon. it would be helpful if congress would fully fund the career and
technical education act, increasing student participation and work-based learning opportunities would go a long way to increase interest in manufacturing job opportunities. i believe we should consider connecting these educational programs to drug rehabilitation programs and behavioral correction programs for exponential success. i would like to thank you for the opportunity to be here today and share our company and industry workforce challenges. i look forward to your questions. >> thank you for that compelling testimony it was very good. now i would like to yield to our ranking member mister evans for an introduction of the final witness.>> my pleasure to introduce the owner and administrator, a senior service healthcare, serving greater philadelphia. he has a television and radio show. it connects people to the home, community, and resources. he's on the advisory board, he's asking of this partnership providing training for
community members to help secure this workforce. something this industry is in dire need of. it's a graduate of the university where they received -- where he received his mba.>> good morning chairman brad and thank you mister evans. now it -- now to address the skills gap. the senior services is one of the nation's leading providers in the medical in-home care, assisted living placement services and skilled home health care. it's an honor for me to be here to testify before the subcommittee and share my experience, as a private sector
employer working to improve the skills gap in my industry. i have more than 25 years of day-to-day operation experience which includes staff and a workforce development in a healthcare environment. in addition to my experience i serve on a public policy committee, political action committee board, the pennsylvania homecare association, i'm a member of the board of trustees, acquired by tomer's jefferson dish mike thomas jefferson. the board of directors and the board. the benefits provided union members with comprehensive educational services in the healthcare field. as a result, my mother, grandmother, and i were able to attend college in the team -- in the same timeframe to give us a chance to persist and succeed in our chosen field. without this training i would not be where i am today. middle skill jobs are 56 % of
the united states labor market but only 43 % of the country's workers are trained at the middle skill level. the skills gap is even more pronounced. home healthcare is one of the fastest growing industries within the u.s. the labor market has tightened increasingly struggling to identify hires with credentials in the workforce experience. they are required to earn licenses. more workers looking for jobs with entrance earned. this enables a constant stream of newly licensed workers. low levels of unemployment, the pipeline no longer exists. for small and middle sized businesses, particularly the skills care gap could create daunting challenges. challenges in recruitment for workers, quality in-home care requires a
like-minded person. they look for kind and compassionate caregivers to treat clients with dignity and respect. home care services companion and personal care. serving patients with all kinds of dementia or cancer. we also offer transportation, errands, payment, light housekeeping, grocery shopping, and meal preparation. blondie -- laundry and medication requirements.>> a detail interview process and a structured on boarding process, we have over 1000 caregivers but we cannot do this on our own. we have worked with ap laying -- with programs like 1190 9c two recruit individuals in the field. we identified the set of workers across the area to fill roles within the company. i work with community organizations to serve individuals who have been released from incarceration.
it requires all homecare agencies to complete criminal background checks prior to hire. 2015 court decision by the commonwealth of pennsylvania known as peak v caldwell found this unconstitutional. this is still required but the department aging, recommends that they provide a risk assessment if they choose to hire an employee with a price -- with a previous conviction. we think this is the step in the right direction to erred federal policy makers to consider similar measures when this comes to addressing barriers for hiring. training new workers in the home healthcare requires dedication and intensity. the jobs can require each client have access to the
quality and personalized individual homecare program. our team members and caregivers receive comprehensive training and receive periodic reviews and opportunities. to help provide great opportunities for workers, the advisory board 1190 9c, training and upgrading fund, affiliate management partnership i along with other leaders work to staff and identify core competencies in- home healthcare workers and translate the curriculum, delivering workers on the job. this partnership is vital, it takes significant work. this is a funding portion of the work and subsidizing the cost and training for the federal department of labor grants. i urge policymakers to consider
the investment in our workforce and depresses -- and apprenticeship system to close the work skills gap. retaining workers is a tremendous challenge. much of my workforce consists of workers since the average care plan is fewer hours per day. a couple of low medicaid reimbursement rates. they can only afford to pay 10- 12 per hour on average. i feel like this level of compensation is in adequate -- is an adequate and does not incentivize individuals to remain on the field. the workers could find higher- paying retail or food service industry jobs which is why the industry has a turnover rate of 70 %. the insufficient medicaid reimbursement makes it difficult for homecare agencies to cover the costs for services.
additional background check requirement for home healthcare workers had been handed down by the state of pennsylvania. they are undeniably important but the cost of flying -- finding this is only $43 in 2019. reimbursement rates are set to remain the same. we can all agree that home healthcare work is crucial to providing high-quality to some of the most viable members of the society. i'm here to tell you that our industry is facing hurdles when it comes to building and maintaining a pipeline of workers. there's no doubt in my mind that this will adversely affect millions if not corrected. i ask that federal policymakers work to provide opportunities for individuals who are likely to find and retain able employment. we can't afford to miss the opportunity. thank you. >> thank you for your testimony.
all four of you together, you put together i don't want to say depressing, but a set of challenges from mobility through , you gave us quite a list. i will start with mister hitt. he started off with 76 applicants, the whole panel brought up, showing up on time, quitting 70 % for the turnover, the stigma of going to college versus getting technical skills. people being skill ready. a huge drop off due to the drug issue, labor mobility, you are at the federal government right now. in some ways we could be helpful on certain policy levels and in other ways it's blunt. we put mandates down. the
required testing going forward during laster's education will be math and reading etc. schools are free to do and have more flexibility. if we are spending $13,000 for 13 years, what could we do to get people ready for the labor market in a better way? you gave some hints as to where we could ship these things. these are a lot of band-aid programs, getting at the bigger package of labor mobility. making sure we are getting people to the right labor markets in the first place. there is a daunting task when you go from 76 to 46 showing up on time, setting the clock up on time. worth -- work ethic is common.
this is a daunting challenge. the federal government. do not limit yourself to what the government can do. but where would you, you do efficiency? where would you aim resources to get the biggest bang for the buck in terms of improving the situation?>> well, for me, ultimately, the number of people in the country showing -- feeling disenfranchised because of the labor issues we have go to the american dream. the american dream believes that children will do better than you, they will always be set up to do better. when you lose the vision of the american dream, people think that they can't possibly do better than their parents, than their parents can do better or not able to move to a higher paying job or a better spot, i think you get this inertia we have in the country right now, and medical -- in middle america
many people are stuck and from my perspective, i would incentivize big business to give these people the opportunity to move. tax credits, tax breaks, dealing with multiple abilities to move people. there are people in the country , their houses are upside down, there are pockets in the country. the idea of moving from youngstown to seattle, it's on countable because your houses $50,000 upside down and you are working two jobs, these are huge problems i think, i also think, to the problem that was mentioned, you are talking about great education and marketing at the education level, we had to change the way we educated people, we need to let them see the future of what can happen in our job markets, we are going through a digitized economy, it will move faster than we saw, the economy move the industrial revolution. it's going to move in 15 years
in the industrial revolution took us 55. so we will move quickly, we need to let them know their spot education there are opportunities coming for them in other areas and industries. that's where i would start. when you got 46 applicants, over 50 % failing drug tests. you've got a bigger problem, through that goes right back to the american dream. they need to believe that there is great hope and that the future will be better and better. it is in our dna. it's why we are americans and why we originally came here. we came here from somewhere, right? over 200 years ago. it is in our dna. i made the point in my written testimony, we were moving at rates of 20 to %, almost one in four americans every year moving through the gold rush dream. moving for a better opportunity. the impact of this is huge. think of the recession, when
you have the recession you may be in recession for three years but when people are moving to find the better opportunities, there picking up the gdp by going out where the jobs are instead of remaining stuck in this spot. recessions are balanced out when people are moving. to be -- to me mobility is the number one issue that we have. it's not talked about enough. but i would like this to be at the forefront, to be a solution that is tested and be implemented to actually get these people moving in and get them in better spots and jobs.>> thank you much and we will circle around to everyone else on the panel. i would like to yield to our ranking member.>> thank you, i would like to go to something that the committee was conducting, this question last week, if you could reconcile this balance. we had the hearing on millennial entrepreneurial ship. we found that many are choosing the workforce themselves for
many reasons, how do we balance many to encourage more startup activity showing the next generation of workers considered for the skilled workforce?>> this is a tough one, we've been through a financial crisis,, millennial's were caught up, the next generation, young hard- working americans, they were caught up in a time that was tough for them. many winter foreclosures on their home, many saw their parents lose their jobs and watched big business become taken out to pasture a little bit. and for failures, they lost some of their faith in big business. the idea of working for yourself is actually a great thing for them, human nature, the natural reaction is to feel that way. we need to do simple things to bring it back to big business,
to train, to put them in a better position to go out and take advantage of this economy. part of that is making sure we are talking about the wonderful things happening in big business. 99 % of big business and small business, they are conscious, they have their capitalist pursuits. i would like to see more of that and more discussion on broader things. from the perspective of the startup activity, we did not incentivize the venture world in a bigger way. from my perspective there is great opportunity. you want to attract millennial's from that space as well. .>> talk a little bit to me, how could you speak about the important training programs for the chronically unemployed that could help aid the growth of
our economy? >> so, the stigma associated with technical training for a place with a four-year degree could be difficult for today's youth. the growing costs of post secondary education, young adults are beginning to recognize the technical careers could play in reducing or preventing student loan debt and starting them on the path to financial independence. successful training programs need to take advantage of this to entice other young adults in their field. students do not respond well to schools and counselors pushing them toward technical training but appreciate the experience of their peers in the generation who has been able to do this within their career. i think these organizations that exist, they have to make them more available and no one. the community partnerships, all of that out there, they will
have to figure that out to better amongst the growing workforce.>> we have to do that, >> we have to. i say this because, you know you look at, how we are communicating. the traditional putting in of the ad of the paper. looking for jobs. it's obsolete amongst the young . they look for jobs on craigslist. at least in my workforce. that's highly part-time. yes of course, evangelizing social media. talking on the radio, tv, every time you turn on the tv, you hear more one-on-one programs, sometimes for the young people this translates to debt. i think we would have to see the reward with this. you can't get instant gratification all of the time, you've got to put
in the time. i think that is the balance of what millennial's do not see. they want instant gratification. you asked about entrepreneurial ship. it's that freedom. i'm connecting young people a lot of times to older people, it's got an intergenerational vibe. they want their freedom from the entrepreneurial spirit, i guess it's nonconformity, bringing them into the workforce where they have value.>> thank you. >> i would like to yield to my good friend from south carolina.>> i want to think the panel for taking the time to come today. i am a contractor, the challenge that i see for hiring people, if you are 19 and never work, it's hard to get them into the routine. people working as they come up,
this is an issue now. >> we have in our area, colleges , technical schools, do you find businesses partnering with them to more or less, let the millennial's no that a welder or framer, a drunk driver -- a truck driver could own up to $1000 per year, heavy partnered with them? and if not how do we spur this on?>> we have partnered with them. i can remember, maybe 15-20 years ago. you would spend the openings -- send the openings over to the community college, everyone wants to access the pool that is there. it's almost a cradle to the career kind of approach -- kind
of approach. i think, there is a stigma. maybe i will speak to the manufacturing piece, it's not cool to be manufacturer, but you are exactly right, there is great jobs that you do not have to go to college for. i know states, in our state of tennessee, we have promoted that. the other southeast states have promoted that because of the influx of the automotive jobs that we've seen over the last 25-30 years. we have to do a better job of making it cool to be a manufacturing -- to be in manufacturing you don't have to go to community college, you could be an apprentice right out of high school and have a great job and career.>> i got up of the panel -- i just got off of a panel, what is your take on beginning to solve
that? how would you as a business person, how would you start the ball to unravel the issue?>> i think we need programs, they obviously had a mental health element to the hiring and training issues we have, clearly, you know where i stand on this. you fall into the huge crisis within the country, people are feeling disenfranchised, there's a reason we have an opioid conflict, it comes from a lack of opportunity or feeling of disenfranchisement. i think there's failed leadership in the business communities and failed leadership overall in the country, in the entire area. can't adjust have people on the coast being wonderfully prosperous and people around middle america not being prosperous. this comes down to programs that gives people the opportunity
for where they do live to create better jobs for them there. then you could work on the training element into the training element, certainly mental health has to be part of that. we do not do a great job in this country and the mental health area, it is an area to focus on more, if anyone in the room has any experience in that, with children or family members, you probably understand the frustration, trying to get the appropriate health for people addicted to something like that were depressed or have anxiety disorders, i mean, things -- these are big issues. this comes back to incentivizing business, working with both local and state governments and the federal government to solve the problems, giving people new jobs, giving them the dignity and respect that comes with these jobs, going home to enjoy the weekend with her family instead of working the second or third job to make ends meet,
you become critically underemployed. it's a vicious circle. it's there. that is how i would address this. >> anyone else? >> sure. i deal with recovering addicts all the time. i guess again, what we have started to do at least with the reentry program, people recently released from incarceration, we try to connect them with the people currently going through a stage in their addiction, addressing it first, a lot of times in this culture, people have to reach their bottom but if you are trying to address this positively, you just have to keep it within the outreach and understand why, different people are getting high or
seeking to be high and connecting them to the multiple- choice of what happens if you continue to be high. there are all types of programs out there and the ones that are successful are the ones that have people that haven't been forced by the parole officer or by the judge or priest or family member, the most successful programs i've worked with are the ones with people who have hit rock bottom and want to make changes. when you talk to people that are currently using at least from my experience, continuing to encourage them to make better choices and give them better options out there whether this be in entertainment, horticulture, art, different things or hobbies. talking to particularly, young people, they don't feel like they have a lot of options there's a lot of depression. i know this personally. i raised a child with depression. you really have to have this honest assessment, you have to deal with it.
you have to deal with this directly. what we've been trying to do, we've reached some success, we connect people who have gone through addiction on the other side of it, we continue to talk to those who are going to it currently. >> thank you so much. >> i would like to yield to stephanie murphy of florida.>> thank you will for being here i appreciate it. -- thank you for being here i appreciate it.>> i represent a district in orlando known for being the hub of modeling simulation and training. there are a number of companies there that build machines with technology like what you showed to train people to help them for military purposes and a variety of other jobs and so, i think this is an exciting space that we are more likely to see
more of looking at the workforce training. my question, for the similar hearing on this committee, discussing the possible causes of the persistent skill gap problem, the labor force and job gap issue, one idea, we may not be adequately preparing the students for the exact skills that they need for specific jobs but on the other side, it appears that there is a guessing game that students have to play as far as what jobs may exist so as they try to figure out what to go to school for they are not sure the myth -- with the demands are on the other side of this. it is suggested there's a communications gap between the higher end and industry or educational institution in the industry. in 2012, the mckinsey report found 72 % of higher education institutions believed graduates were fully prepared for the
workforce. only 42 % of employers agreed. what kinds of things can we do to close the gap? to better prepare students? and also give them a better sense of what the demand signals are for the industry? that's an open question. >> i will start. i think that, there are two skills gaps, the technical skills gap, then we also see what we call, a soft skill gap or the basic skills, it's not something you might think you would have to teach someone, which is showing up for work on time, and not working off of the job or if you're going to be out, calling in advance. and for many of us that might have been inherent whether it was how you were raised or the culture, what we find we are having to teach, it's that. which is surprising as an employer
do that. but i think k-12 could address that. in some form or manner and whether it is job readiness or how they would do that rather than the employer's, i think probably most of us have stories where we can't believe that these people do not understand the basic 101 of working. >> i think that schools can do a better job of discussing closed secretary training options but the better solution is to create more opportunity for public and private efforts, school should have relationships with local training institutions to talk about what students could expect in their programs and what kind of positions they could obtain with training. we will participate with a program with 1199-c, high school students. getting the more involved --
getting the more involved, in my in my workspace in terms of when we talk about soft skills, young people a lot of times with seniors just a general courtesy. putting down the cell phones. we have always gone to a culture where the cell phones are a big no-no in the workplace. people cannot live without them but when you talk to young people. we try to say we don't want to speak to the top of your head but your face. it's reinforced in the workforce, we are connecting a lot of times, the intergenerational vibe putting the young person into a seniors home. for me the struggle is twofold. there aren't a lot of people standing in long lines to be
caregivers to help people for the low salary that we could offer because of the medicaid rate. the other part of this is, a lot of the young people, i do not want to say entitled so much as they are uninformed. it's the attention span of them trying to be engaged. it is not my own workforce. i supervise probably for generations, really again, it's the diversity of inclusion, soft skills training, more intern programs, and really, making it more attractive for employers like myself to be involved with this kind of training a program -- with this kind of training program. >> all right i yield now to my boss the chairman of the fulton committee.
>> thank you very much mister chairman. i apologize if any of the questions i've asked, you've already asked. a small business committee is the most important committee in congress, the others can wait, that's my attitude. the first question i would like to ask, it's relative to the education system. it seems obviously, parents at least a lot of us, perhaps have encouraged our young-young folks over the year, that a four year college is absolutely critical and nowadays, that reality, there's a lot of jobs and opportunities out there, it doesn't require a four-year degree. a two-year community college degree or vocational degree or technical certification of some kind or another. if you could, whoever would like to, address that, that
issue, perhaps, how we should look at that, differently or, more thoughtfully or just, kind of as a society, are we pushing too many of our young people into a four-year liberal arts degree? when perhaps, there are other alternatives to that? would anyone like to address this?>> i will jump in. i think a lot of this is about what the panel has said today about redefining the american dream and what it means to have it all. i think have it all, that could be a home you could pay for, children you could close and food that you could buy. there's a housing shortage, the stigma starts with how you are raised. business could do a lot about that. if you put yourself in the community and connect, when we got business of the year, i
made sure we talked about this a lot. it's something to talk about and say, i wonder what they are doing down there. make it seem, make people realize there's the opportunity not just for colleges. in the education system, i had a son graduate no one spoke to him about the other choices other than college and a graduation the kids that did not go to college did not announce what their future plans would be. i think we could really glorify that and make it seem better by the fact that, if the federal government thinks it's important enough to increase pell grants or technical colleges or vocational schools to get more money, it must be a big need. there's a lot of incentive, i think they go where they are needed. they feel drawn to being needed and part of the big picture. being part of something that is successful. i know when we wanted to get,
when we wanted more employees, i realized we had to reintroduce ourselves to the community. the image we had was old and dated so we ask employees what was important to them or their kids and where we should be. we pay our employees to volunteer in the communities. people say, wow i would like to be part of that. i think this same energy could be put toward vocational schools and technical colleges. or really, on-the-job training, it's huge, there's nothing that can't be offered at a vocational school that we need other than forklift training, what we teach is on the job that i would love it if someone in k-12 would have a life skills 12 -- a life skills class to teach someone how to get to work on time or they have to bring a lunch with them no one's going to give them lunch at work. there's so much that they do
not know. i can say that without being smug, my son is one of them. he showed up for his summer internship and did not understand why there was no lunch for him because everywhere he had worked had been generous and things like that. i think there's many things that they do not know. i agree it's not because they are on -- entitled but it's because they are uninformed. maybe both of their parents are busy and do not have time to show that so as business leaders and elected officials, we have to show what is important and what matters and what will get them the recognition.>> thank you very much. >> so i think, we could not have had a better panel today. i really appreciate just, we covered i think the full spectrum of the issues and the closing issues, that was fantastic.
the testament you gave, it will give us plenty to think about. that is why we hold the panels. we seek your input from the business community. we will prepare another round and zoom in until we hit the target and solve the problem. i want to thank our panelists for coming in and sharing your time and expertise. i ask for unanimous consent that they have statements and supporting materials for the record. without that objection, i order the hearing is adjourned and thank you again very much