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  • JUDY WOODRUFF: Now: why there are some extraordinary measures being taken in the state of Wisconsin

  • to find enough workers to fill jobs, including a multimillion-dollar ad campaign to attract

  • millennials and a job training program for prison inmates.

  • Economics correspondent Paul Solman has our report.

  • It's part of our weekly series Making Sense.

  • And it's also the latest in our series Chasing the Dream on poverty and opportunity in America.

  • PAUL SOLMAN: The signs of the times in Wisconsin, "Help Wanted" on virtually every restaurant

  • window, storefront and city bus.

  • Even public TV has openings.

  • An aging population and few immigrants has this state, with a record low jobless rate

  • of 2.9 percent, projecting 45,000 more job openings by 2024 than workers to fill them.

  • ERIK ANDERSON, CEO, Basin Precision Machining: The reality is, anywhere in Southeastern Wisconsin

  • right now, if you need employees, you're struggling to find them.

  • PAUL SOLMAN: Erik Anderson, CEO of Basin Precision Machining, which makes parts for, among others,

  • Milwaukee's Harley-Davidson.

  • In spite of high-tech machinery that requires fewer operators these days, Anderson wants

  • to expand and is desperate to hire.

  • You still need how many people?

  • ERIK ANDERSON: Twenty.

  • PAUL SOLMAN: Now, right now?

  • ERIK ANDERSON: Right now.

  • I got 20 jobs right now.

  • PAUL SOLMAN: The labor crunch, he says, has become the number one threat to his business.

  • ERIK ANDERSON: I guess you would call it a full-on charm offensive, where, as the CEO

  • usually, you're looking to grow the business.

  • And for me, this situation is such a revenue limiter that I spend about half my time on

  • H.R., promotion.

  • That's why I was so glad when you folks wanted to come talk about this very topic.

  • PAUL SOLMAN: And you're doing a little recruiting while you're talking to me.

  • ERIK ANDERSON: Pretty much every waking hour I'm doing a little recruiting.

  • (LAUGHTER)

  • PAUL SOLMAN: Wisconsin's answer to the worker shortage?

  • Trying to lower labor from out of state.

  • NARRATOR: An hour commute or an hour with friends.

  • In Wisconsin, the average commute is less than 22 minutes.

  • PAUL SOLMAN: The million-dollar ad campaign was a blatant appeal to millennials in Chicago

  • and anyone who didn't know the attractions of Wisconsin.

  • TRICIA BRAUN, Wisconsin Economic Development Corporation: They thought of the traditional

  • things, the beer, cheese, Packers football.

  • PAUL SOLMAN: Tricia Braun fisher runs the state's economic development agency.

  • TRICIA BRAUN: They didn't say things like I.T. software development jobs or great health

  • care jobs, engineering jobs.

  • So we needed to make sure that those, along with messages about our quality of life, were

  • getting out there to the potential talent that we could recruit.

  • PAUL SOLMAN: Braun says it's too early to know if the campaign is working.

  • But even if it does work, another state initiative will make the shortage more acute.

  • A 20-million-square-foot Foxconn plant being constructed in Southern Wisconsin is promising

  • to create 13,000 more jobs.

  • Foxconn, a Chinese electronics manufacturer, got a $4.3 billion tax credit to locate here.

  • MARC LEVINE, University of Wisconsin-Milwaukee: It's about $3 billion from the state itself.

  • And then the rest is coming from local governments.

  • PAUL SOLMAN: In cash, says economists Marc Levine.

  • MARC LEVINE: Because Wisconsin manufacturers do not pay taxes, the tax credit will be converted

  • into cash payments.

  • PAUL SOLMAN: Wisconsin will give Foxconn...

  • MARC LEVINE: Give them a check, right.

  • PAUL SOLMAN: Meanwhile, says Levine, for decades, there have been more than enough unemployed

  • Wisconsinites.

  • The money could have been used to retrain victims of the deindustrialization that's

  • been going on since the 1980s.

  • MARC LEVINE: In Milwaukee, almost 50 percent of African-American males employed in the

  • 19 -- through the 1970s into the 1980s were employed in manufacturing, compared to about

  • 32 percent of white males.

  • PAUL SOLMAN: When those jobs vanished, so did the pipeline for middle-class-inner city

  • jobs.

  • MARC LEVINE: The African-American male prime age employment rate in Milwaukee today is

  • a little over 63 percent.

  • PAUL SOLMAN: And many others are underemployed, working part-time at best.

  • One reason, says Levine, living in inner cities, they simply can't get to jobs an hour or more

  • away.

  • MARC LEVINE: All the net job growth in Milwaukee over the last 30 years has occurred in the

  • suburbs, the suburbs that are not connected effectively to the central city with good

  • transportation links.

  • PAUL SOLMAN: So where would you go for workers?

  • Well, Wisconsin employers have turned to a totally unemployed and previously untapped

  • labor pool, women at the Robert Ellsworth correctional facility an hour south of Milwaukee,

  • learning factory skills like CNC, computer numerical control, at the nearby technical

  • college on work release.

  • RANDILYN, Inmate: I have been incarcerated for a little over two years right now.

  • PAUL SOLMAN: For what?

  • RANDILYN: Drunk driving.

  • And I have a little over two years to go.

  • PAUL SOLMAN: A four-your sentence because it's her third such conviction.

  • But Randilyn -- no last names allowed -- is not worried about getting a job.

  • RANDILYN: I know there's jobs out there.

  • I see them in the paper.

  • I see them on the wants ads.

  • I have gone to temp agencies, and they're always looking for CNC help.

  • PAUL SOLMAN: Bethany is doing time for forgery and drug use.

  • BETHANY, Inmate: Since I have been locked up, I have been offered a lot of opportunities

  • to change my life and become a different person.

  • And I have taken them.

  • PAUL SOLMAN: The instructor here, Neil Petersen, seemed genuinely surprised his cons are, well,

  • such consummate pros.

  • NEIL PETERSEN, Gateway Technical College: I have done approximately 20 boot camps, and

  • you get a scattering of -- a couple of D's, some C's, B's.

  • I have so far up from these ladies that I have been teaching, I have gotten 10 A's,

  • one B, and one B-minus.

  • I have never seen that before in my life.

  • PAUL SOLMAN: The fact is, though, that the national unemployment rate for those with

  • a criminal record has been estimated as high as 80 percent.

  • And yet, after graduating from the 22-week boot camp, these women figure to actually

  • start work at nearby Wisconsin machine shops while still incarcerated.

  • How many employers come here willing to hire women from prison?

  • KATE WALKER, Director of Operations, Gateway Technical College: Right now, we have had

  • 12 who have already gotten involved, and we're anticipating more.

  • PAUL SOLMAN: Gateway's Kate Walker has found more employers with job offers than there

  • are trained inmates to take them.

  • KATE WALKER: There's no hesitation about hiring them, even if it's for the short-term, even

  • if they're not going to reside in the county that the employer is located.

  • They know that they can help them in the interim.

  • PAUL SOLMAN: I was told some 70 percent of these prisoners are in for offenses related

  • to substance abuse, where the recidivism rate may be as high as nine out of 10.

  • CEO Anderson says, that won't deter him.

  • We heard yesterday that there are employers around here now who don't do drug testing.

  • ERIK ANDERSON: That's true.

  • PAUL SOLMAN: Because they don't want to automatically eliminate drug-using employees.

  • ERIK ANDERSON: Yes, that's -- that's true.

  • That's true.

  • And we're one of them.

  • PAUL SOLMAN: Now, in every story about a labor shortage, there's one obvious question: Why

  • don't employers just offer to pay more?

  • Well, because of globalization and automation in recent decades, most just haven't had to.

  • Professor Levine adds the decline of unions.

  • MARC LEVINE: Keeping labor costs low is part generally of a corporate strategy to keep

  • their overall costs low.

  • Breaking unions has certainly been part of that.

  • The vertiginous decline of unionization in the state since really the early 1970s has

  • been extraordinary, where you had 35 percent of workers unionized, and today it's 10 percent.

  • PAUL SOLMAN: There's no sign that unions are coming back soon.

  • But maybe, just maybe, a tight labor market is finally nudging up wages.

  • At least Erik Anderson is raising them.

  • Three years ago, new hires made $9 an hour here.

  • This fall, he plans to raise their starting wage to $15, and, within a year, they will

  • make in the upper teens.

  • For the "PBS NewsHour," this is economics correspondent Paul Solman in Southern Wisconsin.

JUDY WOODRUFF: Now: why there are some extraordinary measures being taken in the state of Wisconsin

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