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CONTENTS
The Labor Market & Economic Recovery
2 by John E. Gnuschke, PhD, Dr. Jeff Wallace, PhD, and Stephen Smith
Strengthening Tennessee’s Workforce in Tough Economic Times: How Has Tennessee Been Able to
10 Maintain a Positive Business Climate in Spite of the Decline in the Economy?
by James G. Neeley and Susan K. Cowden (with special thanks to Jeff Hentschel)
Will the “Great Hangover” Last More Than the Day After Graduation for This Year's College
16 Graduates?
by Ioana Sofia Pacurar and Jay K. Walker
Chart 1. U.S. Real GDP ($Billions) and Employment (000), 2000: Q1–2010: Q3
$13,500 141,000
Real GDP
Employment 139,000
$13,000
137,000
Total Employment (000)
Real GDP ($Billions)
$12,500
135,000
133,000
$12,000
131,000
$11,500
129,000
$11,000 127,000
3
200 : Q2
200 : Q3
201 : Q4
201 : Q1
201 : Q2
200 : Q1
200 : Q2
200 : Q3
200 : Q4
200 : Q1
200 : Q4
200 : Q1
200 : Q2
200 : Q3
200 : Q4
200 : Q3
200 : Q4
200 : Q1
200 : Q2
200 : Q3
200 : Q2
200 : Q3
200 : Q4
200 : Q1
200 : Q2
200 : Q1
200 : Q2
200 : Q3
200 : Q4
200 : Q1
200 : Q2
200 : Q3
200 : Q4
200 : Q1
200 : Q1
200 : Q2
200 : Q3
200 : Q4
200 : Q1
200 : Q2
200 : Q3
200 : Q4
0: Q
9
9
0
0
8
8
8
9
9
7
7
7
7
8
5
6
6
6
6
4
4
5
5
5
3
3
3
4
4
2
2
2
2
3
0
0
0
0
1
1
1
1
200
Sources: U.S. Bureau of Econmoic Analysis and U.S. Bureau of Labor Statistics.
Map 1. Persons Unemployed 15 Weeks or Longer As a Percentage of the Civilian Labor Force (U1), U.S.,
Fourth Quarter 2009 Through Third Quarter 2010 Averages
Map 2. Total Unemployed, Plus All Marginally Attached Workers, Plus Total Employed Part time for Economic Reasons
As a Percentage of the Civilian Labor Force, Plus all Marginally Attached Workers (U-6), U.S., Fourth Quarter
2009 Through Third Quarter 2010 Averages
Stephen Smith
Stephen Smith serves as both Research Associate II and Editor at the Sparks Bureau of Business and Economic Research
at the University of Memphis. He has been with the Bureau since 1994. Mr. Smith earned a MA in English from the Uni-
versity of Memphis. Currently, he is completing his doctoral studies in English with a major in Professional Writing. His
study and professional backgrounds include classical rhetoric, rhetoric of science, visual rhetoric, technical communi-
cation, and layout and design.
Fall 2010/Winter 2011 Business Perspectives 9
by
James G. Neeley, Commissioner, and
Susan K. Cowden, Administrator, Division of Workforce Development,
Tennessee Department of Workforce Development
(Special thanks to Jeff Hentschel, Communications Director, Tennessee Department of Workforce Development)
10 Business Perspectives Fall 2010/Winter 2011
How Has Tennessee Been Able to Maintain
a P o s i t i v e B u s i n e s s C l i m at e i n S p i t e o f
the Decline in the Economy?
Fall 2010/Winter 2011 Business Perspectives 11
T Summer Jobs for Disadvantaged Youth
he Division of Workforce Development within the Ten-
nessee Department of Labor and Workforce Develop-
As part of the American Recovery and Reinvestment Act of
ment is focused on retraining individuals who have
2009, Tennessee was provided additional funding to increase
lost jobs so that they may be poised for quick re-entry into the
the numbers of dislocated workers entering training and to
workforce upon full economic recovery. The Division recently
provide summer jobs to disadvantaged youth. From June to
received high honors from the United States Department of La-
August 2009, more than 13,000 economically-disadvantaged
bor and was ranked fourth in the nation in attainment of estab-
youth had the opportunity to earn and learn as part of the
lished performance measures such as job entry, job retention,
Summer Youth Employment Program. The double-digit unem-
and average wages for those exiting the program. For this effort,
ployment figures for the total population pale in comparison to
Tennessee will receive a $1 million incentive award to advance
the unemployment figures for youth aged 14 to 24, a group that
the governor’s vision for workforce development throughout
is facing more than 40 percent unemployment in this difficult
the state.
economy.
Through state and local partnerships, Tennessee Career
For the first time since 1999, summer jobs were made
Centers provide training for individuals and businesses that
available, and for the first time ever, jobs were allowed in the
improve the quality of the workforce and ultimately create new
private sector. Participating employers included the Memphis
jobs. Due to the state of the current economy, this description
Commercial Appeal, First Bank of Tennessee, and Hospital Cor-
has expanded, and programs are now charged with supporting
poration of America. “The Commercial Appeal Summer Youth
economic recovery. This is accomplished by providing those
Employment Program gives students exposure to a profes-
losing jobs with the skills they need to get the jobs of the future.
sional work environment, positive role models, and the daily
An annual report on usage of the Tennessee Career Centers operations of a historic pillar of the Memphis corporate com-
clearly articulates the downturn in the economy. In 2007, the munity that would be otherwise unattainable for many of these
total number of job-seeker visits to all of the Career Centers students,” said Eunice Johnson, Human Resources Director,
in the state just exceeded 400,000. In 2009, this total number Memphis Commercial Appeal.
jumped to a staggering 1,018,319. In turn, in 2007, more than
7,500 Tennessee employers placed job orders to fill vacancies in
their companies, while in 2009, this number dropped to fewer Economic Recovery in
than 4,500 employers. In spite of these realities, hundreds of Extremely High Unemployment Counties
thousands of Tennesseans are receiving much needed services
In addition to the tremendous needs of Tennessee youth, it
that will continue to put the state on the road to economic re-
became apparent that many Tennessee counties would experi-
covery.
ence unemployment figures in excess of 20 percent. When we
Since March 2009, Tennessee’s unemployment rate has reflect on what is now being referred to as the “Great Recession,”
fluctuated between 10 and 11 percent, reflecting almost double one Tennessee county actually entered into a “Great Depres-
digits from prior years and challenging the state’s approach to sion.” In Perry County (Linden, Tennessee), the unemployment
delivering workforce training services. According to recent em- rate hit a staggering 27 percent last summer. The state became
ployment forecasts, it appears that these new statistics may be aware that a new approach to delivering services had to be im-
the norm for several years to come. In this economy, how do plemented in order to prop up the economy and avoid further
the state’s workforce training programs respond in a way that economic disaster for this community. In partnership with the
continues to create a positive business climate? Tennessee Department of Human Services, the Workforce De-
The Tennessee Department of Labor and Workforce Devel- velopment Division created a program to provide government-
opment operates programs throughout the 13 Local Workforce subsidized employment in the private sector to more than 500
Investment Areas (LWIA) that provide summer job training unemployed adults and youth. Through September 2010, an
programs for disadvantaged youth, target unemployed individ- Emergency Grant intended to prevent unemployed individuals
uals in extremely high unemployment counties, and upgrade from falling further below the poverty level was in place to en-
the skills of the transitioning workforce in a way that prepares sure that these Tennessee citizens would have a paycheck and
them for the jobs of the future. that many local businesses would continue to operate. Since the
program started last year, it has been expanded to include four
other Tennessee counties—Lauderdale, Hancock, Smith, and
Marshall—serving more than 1,000 unemployed individuals.
Retraining Dislocated Workers of these companies and others, transitioning workers must be
provided with the technical training needed for these jobs of
In those counties with unemployment rates of 10 to 15 per-
the future.
cent, Career Center staff explain training services as individu-
als apply for Unemployment Insurance (UI). These workers are Governor Bredesen formed the Tennessee Jobs Cabinet un-
usually transitioning from one job to another and if they have der Executive Order Six soon after taking office in 2003. Now,
transferable skills, the Center staff immediately attempts to as- seven years later, the state is realizing the tremendous outcome
sist with re-employment. Many individuals need some type of of this initiative, having for the fifth year in a row just been
retraining, and they are encouraged to pursue careers in indus- ranked in the top five states in the nation as best business loca-
tries with worker shortages, such as information technology, tion according to Site Selection magazine, one of the nation’s
health care, clean energy, and the skilled trades. The one thing premier economic development publications. The editor, Mark
these industries have in common is that they all have highly Arend, says of Governor Bredesen: “His understanding of the
skilled jobs. business world and government’s role therein is readily appar-
ent.” (To view the complete rankings, visit www.siteselection.
Workforce Development programs have increased training
com.)
opportunities by 30 percent with Recovery Act funds so that
workers are ready when the economy makes a full recovery. As While jobs in the manufacturing sector have shown a de-
we have moved from the industrial age to the information age, cline in Tennessee over the past decade, the state has contin-
the skills required to obtain a job have drastically shifted. Over ued to focus on preventing layoffs when possible and attracting
the past 50 years, the number of jobs requiring some type of businesses to the state that will allow for the transition of the
degree has remained constant at 20 percent. The major change workforce. How has Tennessee been able to maintain such a
has been in the number of “unskilled” jobs. In the 1950s, these positive business climate as evidenced by the recent rankings?
jobs represented more than 60 percent of the total, but now One of the founding principles of the Jobs Cabinet was
they represent less than 12 percent. The number of jobs requir- to bring together all of the key leaders throughout state gov-
ing some type of skilled training beyond high school has grown ernment to create a desirable economic development climate
from less than 20 percent to more than 60 percent. and cut through the red tape that often becomes a barrier to
recruitment and retention.
Bringing New Jobs to the State One of the departments that has been instrumental in as-
sisting the Department of Economic Development, the lead
Even in this economy, the governor and economic develop- agency in the Jobs Cabinet, is the Tennessee Department of La-
ment officials have made great strides in recruiting new jobs bor and Workforce Development. Through the development of
to the state. Several examples include the newly-announced $1 the Fast Track initiative, companies are able to inquire about
billion investment by Hemlock Semiconductor in Clarksville, relocation and receive a multi-departmental proposal within a
Wacker Chemie in Cleveland, and the new Volkswagen plant in few days. This initiative gives Tennessee an edge when compet-
Chattanooga, bringing in over 4,000 new jobs. With the advent ing with other states.
Chart 3. Weekly Median Earnings and Unemployment Rates by Education Level, 2009
Jay K. Walker
Jay Walker is a PhD Candidate in Economics at the University of Memphis. His fields of interest include Applied Microeconomics,
Public Economics, and Labor Economics. He is currently employed in the role of Research Associate at the Sparks Bureau of Busi-
ness and Economic Research at the University of Memphis following two years serving as the Nathan Associates Research Fellow
at their local office.
Fall 2010/Winter 2011 Business Perspectives 21
22 Business Perspectives Fall 2010/Winter 2011
Introduction
Recently, many employees have lost their jobs or become fearful about losing the
job they currently hold. Their fears may be well founded. During times of economic re-
cession, the restructuring of organizations is prominent (Hartley et al. 1991, 3), which
can result in severe organizational changes that include: the shifting of resources,
movement of entire companies, elimination of certain jobs, and even company clo-
sures (Hartley et al. 1991, 4; Sverke and Hellgren 2002, 25). These factors have a direct
effect on the labor market.
Fall 2010/Winter 2011 Business Perspectives 23
Based upon the information in Chart 1, unemployment of both the employee and the employer (Smithson and Lewis
rates began to rise in 2008, coinciding with the beginning of the 2000, 681). The psychological contract is based on the belief
Great Recession that began in December 2007 (Isidore 2008). that “hard work, security and reciprocity are linked” (Smithson
Chart 1 also shows a significant jump in the unemployment and Lewis 2000, 681). From an employee’s perspective, the psy-
rate of 3.5 percent in 2009, which indicates the severity and chological contract guarantees job security, fair wages, benefits,
significant duration of the current crises. In fact, the economy and a sense of self-worth for doing a job well. The employer
has not been so damaged since the Great Depression, and most obtains and retains dedicated workers who perform their jobs
economists see no end to this recession in the near future, in- well, are satisfied in their jobs, and are committed to the orga-
dicating unemployment rates will most likely increase or stay nization. The subjective and time-sensitive psychological con-
elevated for some time (Isidore 2009). An elevated unemploy- tract varies in changing economies or social contexts (Smith-
ment rate almost certainly affects the labor market in that both son and Lewis 2000, 682). Therefore, an organization that has
employees and employers are likely to have negative experienc- a strong and vibrant psychological contract with its employees
es during tough economic times. These negative reactions can may find that the contract needs to be renegotiated as the econ-
compromise the delicate balance that exists between an em- omy changes. Also, because of its subjectivity, employees may
ployee’s hard work and efforts and an employer’s offerings of feel that the psychological contract with their employer is being
security and pay, which can be thought of as the “psychological threatened even when no real objective threat exists (e.g., orga-
contract” that exists between employees and employers in an nizational restructuring, merger with another company, etc.).
organization. This article examines the psychological contract Balance is an important part of the psychological contract.
and the resulting consequences of the contract being broken An employee must feel that his or her efforts are balanced by
(job insecurity) and offers suggestions for lowering workers’ what the organization offers (De Witte et al. 2008, 88). If the
job insecurity, especially during times of organizational change.
employee senses an imbalance, the employee feels the psycho-
logical contract is broken, which
can lead to negative effects (De
Chart 1. U.S. Unemployment Rates, 2000-2010 Witte et al. 2008, 88). These neg-
ative effects include but are not
limited to an employee feeling
insecure in his or her job, which
is a topic that has received much
attention in organizational re-
search.
Job Insecurity
Job insecurity (the overall
apprehension about the con-
tinuance of one’s job) is a sub-
jective phenomenon. Two work-
ers in the same job in the same
organization can experience
different levels of job insecurity.
Job insecurity can lead to nega-
tive effects on an employee’s
health and well-being. Studies
have shown job insecurity be-
ing related to psychosomatic complaints, depression, nervous-
The Psychological Contract ness, fear, sadness, and guilt, which are all considered to be
manifestations of poor mental health (van Vuuren et al. 1991).
A psychological contract includes the expectations between Also, job insecurity has been shown to be related to critical job-
the employee and employer above and beyond any formal con- related variables, including job performance, job satisfaction,
tract, which incorporates the beliefs, values, and aspirations
24 Business Perspectives Fall 2010/Winter 2011
trust, job involvement, organizational commitment, and turn- Also, both role ambiguity and role conflict (which can both
over intentions (Cheng and Chan 2008; Sverke, Hellgren, and lead to increased levels of job insecurity) can be lessened by an
Näswall 2002; van Vuuren et al. 1991). increase in communication between employers and employees.
There have been numerous studies that have looked at Organizations should be sure that their workers have adequate
the potential precursors to job insecurity. Research has shown amounts of information, including knowing what their jobs en-
that employees who work in temporary jobs, part-time jobs, tail, understanding what is expected of them, and giving them
or blue-collar positions, and who report a lack of communica- the control they need to do their jobs, especially in ambiguous
tion within their organization or who work in an organization or transitional settings that occur all too often during times of
experiencing organizational changes are more likely to report economic uncertainty.
high levels of job insecurity. Other precursors to job insecu-
rity include a worker experiencing role ambiguity and/or role
Increasing Organizational Communication
conflict. Role ambiguity occurs when an individual does not
know his or her responsibilities and goals for the job (Sawyer How can organizations increase communication with their
1992), while role conflict occurs when workers experience de- employees, especially during times of economic uncertainty
mands from various sources, resulting in increased uncertain- when changes inevitably occur? Lewis, Schmisseur, Stephens,
ty (Ameen et al. 1995). Workers experiencing role ambiguity or and Weir (2006, 120) systematically analyzed bestselling books
role conflict simply do not know what their obligations are to on communicating during organizational change and identi-
their employer. In these situations, workers may become anx- fied strategies and tactics employers can use to help increase
ious because they are unable to fulfill their psychological con- the flow of information.
tract with their employer, resulting in feeling insecure about Lewis et al. offer general strategies for communicating
their job (Ashford, Lee, and Bobko 1989, 806). and dealing with major changes in an organization (2006,
Many of these factors are beyond the control of organiza- 120–122). The first strategy involves emphasizing participa-
tions. An organization may not be able to turn every part-time tion and empowerment by making workers feel they are part of
worker into a full-time worker, make every temporary job per- the change process. Here, leadership in an organization should
manent, convert every blue-collar job into a white-collar posi- encourage autonomy and ownership in their workforce. The
tion, or be invincible to economic crises. But, these limitations authors also encourage the use of organizational culture as a
do not mean organizations are powerless in their ability to tool to enable change, which can be achieved by creating an en-
stave off job insecurity in workers. In fact, organizational re- vironment open to new ideas, sharing those ideas freely, and
search offers suggestions for ways in which job insecurity in ensuring the workforce is prepared for potential changes. Also,
employees can be lowered. Lewis et al. suggest emphasizing the purpose and vision of the
organization and how the resulting changes are part of that vi-
sion, accomplished by having leadership consistently link orga-
Lowering Job Insecurity in Workers nizational decisions to the overall purpose of the organization.
Job insecurity may be lowered by strengthening the psy- Linking decisions to the overall organizational mission allows
chological contract with employees. The key to this strength- employees to understand the organization’s direction and how
ening is communication. Kinnunen and Natti (1994, 316) note they as employees help the organization meet its goals. Finally,
that providing adequate information to employees can reduce the authors suggest emphasizing communication, which is vi-
job insecurity. Petzall, Parker, and Stoeberl (2000, 601) suggest tal to successful problem solving and organizational change
that an open dialogue between employers and employees can (Lewis et al. 2006, 122). Communication can take many forms,
help stave off the negative effects a recession brings by building including face-to-face meetings, questionnaires or surveys, or
trust. It is important for employers to communicate the fair- focus groups. It is important that leadership keep open lines of
ness of organizational decisions and processes because “it is communication with employees at all levels.
not necessarily what really happens but rather what the work- The authors also identify specific strategies to emphasize
ers perceive as happening that will dictate their reactions to and increase communication in an organization (Lewis et al.
management’s actions” (Petzall, Parker and Stoeberl 2000, 601, 2006, 123–128). The first strategy is to ask for input from work-
emphasis added). Since job insecurity is a subjective phenom- ers, which includes listening to those who give their opinions,
enon, it is important for workers to perceive that the balance fostering an environment where workers feel open to voicing
between their efforts and the offerings of the organization are their opinions and concerns, and encouraging feedback from
set fairly.
Courtney Keim
Mrs. Keim received her BA in Psychology from Christian Brothers University and her MS in Psychology from the University of
Memphis. She is currently a doctoral student in Experimental Psychology at the University of Memphis, with a concentration in
Industrial and Organizational Psychology. Her research interests include occupational health and safety, with an emphasis on
stress in the workplace.
Amy Wilkinson
Ms. Wilkinson received her bachelor’s degree in Accountancy from the University of Memphis in December 2009, graduating
Magna Cum Laude. Currently, she is pursuing a master of science degree in Accountancy at the University of Memphis and will
graduate in May 2011. She is a member of the local chapter of Beta Alpha Psi and is actively pursuing her CPA license.
28
Business Perspectives
Fall 2010/Winter 2011
by
Juliann Waits, PhD,
Ass istant Professor—Natural Sciences and
Assistant
Adjunct Professor—Ecological Research Center,
Southwest Tennessee Community College ,
Jeff Wallace , PhD,
Economist and Research Associate Professor of
Applied Economic Research,
and
Ste phen Smith,
Research Associate I I/Editor,
Sparks Bureau of Business and Economic Research,
The University of Memphis
Fall 2010/Winter 2011 Business Perspectives 29
A
s the fragile U.S. economy attempts to recover quality and avoiding future damage to the Earth’s ecosys-
from one of the harshest recessions in history, tems.
many are touting green jobs as the best source We define green jobs as positions in agriculture, man-
of new jobs. In fact, national recognition of the ufacturing, construction, installation, and maintenance,
need for a green employment sector started as well as scientific and technical, administrative, and
with the Energy Independence and Security Act, which passed service-related activities that contribute substantially to
in December 2007 and which incorporated the Green Jobs Act preserving or restoring environmental quality. Specifically,
of 2007. The Green Jobs Act authorized “up to $125 million in but not exclusively, this includes jobs that help to protect
funding to establish national and state job training programs, and restore ecosystems and biodiversity; reduce energy,
administered by the U.S. Department of Labor, to help address materials, and water consumption through high-efficiency
job shortages that are impairing growth in green industries, and avoidance strategies; decarbonize the economy; and
such as energy efficient buildings and construction, renewable minimize or altogether avoid generation of all forms of
electric power, energy efficient vehicles, and biofuels develop- waste and pollution. But green jobs, as we argue below,
ment” (“House Committee Passes Solis' Green Jobs Act” 2007). also need to be good jobs that meet longstanding demands
On January 8, 2010, President Barack Obama followed up on and goals of the labor movement, i.e., adequate wages, safe
his campaign commitment to green jobs by announcing $2.3 working conditions, and worker rights, including the right
billion in tax credits for the clean energy manufacturing sec- to organize labor unions. (35–36)
tor in the hopes of creating 17,000 jobs (Pepitone 2010). This
funding comes from the $787 billion American Reinvestment Ironically, the United Nations Environment Programme’s
and Recovery Act and has been awarded to 183 projects in 43 insistence on jobs that “reduce energy,” that implement “high-
states (Pepitone 2010). efficiency and avoidance strategies,” as well as “decarbonize the
economy” actually eliminates the United States’ call for corn-
As positive sounding as these announcements are, the big- based ethanol as a cornerstone of its green plan. In fact, Al Gore
gest problem concerning green jobs seems to be that of defini- admits that the current U.S. policy of corn-based ethanol use is
tion. What exactly is a green job? Definitions vary according to “not a good policy” (Wynn 2010). As earlier critics pointed out,
their individual sources, and most are merely circular defini- Gore agrees that the U.S. ethanol industry consumed “about 41
tions that recycle the term “green” more than offering any sub- percent of the U.S. corn crop” in 2010, which equals about 15
stantial understanding. The Bureau of Labor Statistics defines percent of the global corn crop (Wynn 2010). Such consump-
green jobs as either: tion adversely impacts food prices. Additionally, the means to
A. Jobs in businesses that produce goods or provide produce corn-based ethanol is far more costly than the actual
services that benefit the environment or conserve end benefits achieved from using corn-based ethanol (Meigs
natural resources. 2009). Therefore, corn-based ethanol as currently envisioned
B. Jobs in which workers’ duties involve making their and utilized cannot be included as a green endeavor.
establishment’s production processes more envi- Still, the U.S. government, lobbyists, and the public demand
ronmentally friendly or use fewer natural resourc- green jobs. One question about this demand is, “How high tech
es. (“Measuring Green Jobs”) or advanced should these green jobs be?” According to Anthony
However, in its September 2008 report entitled Green Jobs: K. "Van" Jones, former Special Advisor for Green Jobs, Enter-
Towards Decent Work in a Sustainable, Low-Carbon World, the prise, and Innovation at the White House Council on Environ-
United Nations Environment Programme identified a green mental Quality, not very. The most high-tech piece of equip-
economy and green jobs as follows: ment would be a simple caulk gun, which would allow former
blue-collar employees who have been laid off to be rehired in
In an ideal state of affairs, a green economy is one that does these green jobs (Mufson 2008). Also, the Green Economy Task
not generate pollution or waste and is hyper-efficient in its Force in Philadelphia, Pennsylvania, has set out to create 15,000
use of energy, water, and materials. Using this green uto- green jobs by 2015, with the target green employee holding
pia as a yardstick would mean that currently there are few, anything from a GED to a PhD, but the true target is for those
if any, green jobs. A more realistic, pragmatic approach is employees closer to the GED rank (Mastrull 2009).
process-oriented rather than fixated on an ideal yet elusive
end-state. In other words, green jobs are those that contrib- Unfortunately, lower wage is often associated with lower
ute appreciably to maintaining or restoring environmental education and lower skill, which is in contrast to the past de-
mand for high-tech jobs. Further, such a simplistic solution is
also the downfall of the idea of green jobs to some critics. In
30 Business Perspectives Fall 2010/Winter 2011
fact, the so-called green jobs are simply a relabeling of blue- end once the program ends. Because these jobs are not eco-
collar jobs (Schoeff 2009), an almost robbing-Peter-to-pay- nomically sustainable without government subsidies, we would
Paul scenario. At best, the turn to green jobs is currently a be forced to exclude them from our definition of green jobs.
grandiose idea with more style than substance. There must be From the standpoint of the local economy, federal stimulus
a better definition for green jobs and a better developed plan dollars have trickled down to the University of Memphis, South-
for creating and implementing these jobs. west Tennessee Community College, and other local colleges in
Additionally, “green” has a different meaning when dis- the form of educational training in maintenance, engineering,
cussed in the context of the economy. Economically, green in- and manufacturing of sustainable technologies such as solar
cludes costs, return on investment, and practicality. Therefore, panel and biofuel production. However, there are few jobs avail-
we also argue that in the current job crisis, green jobs should able for graduates of these programs in the Mid-South. It is not
have an additional meaning. Perhaps the only item that should a matter of whether students can be educated and trained for a
be emphasized more in the United Nations Environment Pro- career in green jobs, but rather a problem with the lack of green
gramme’s definition that is usually associated with green issues jobs once the students graduate. Capital or stimulus for small
is the sustainability factor. Now, we do not mean sustainability businesses with new sustainable products for design or manu-
in regard to natural resources (such meaning is already estab- facturing is deficient. Although President Obama would like to
lished in the above definition). We suggest that sustainability see educational institutions graduate students who can com-
should relate to both the market value and availability of such pete with other countries in science, technology, engineering,
jobs. In other words, green jobs should sustain the workers and math, there are few new green jobs and a lack of funding
within this specific sector, both in wages and in longevity. for these future sustainable technology innovators. Funding of-
Economic sustainability should also mean no taxpayer ten comes in the form of educational support for designs and
subsidies to support such employment. Regrettably, with the not for employment.
slow economic recovery in the U.S. and the proposed increase One such example is the EPA's 2011 P3: People, Prosper-
in federal taxes on petroleum to reduce government debt, the ity, and the Planet program. Through this hands-on design
environment and long-term economic employment in sustain- competition, student teams and their faculty advisors receive
able technologies look mixed. The “Cash for Caulkers” program $15,000 grants to design scientific, technical, and policy solu-
mentioned above (which is the Home Star Energy Retrofit Act tions to sustainability challenges around the world. The EPA
of 2010, or H.R. 5019) would provide $6 billion in taxpayer- will choose the P3 award winners who may receive an addi-
funded subsidies to pay for items such as rebates to consum- tional grant of up to $90,000 to further develop their designs,
ers for improving the energy efficiency of their homes via the implement them in the field, and take them to the marketplace.
installation of energy-efficient windows and doors, better in- On the surface, such a program sounds like a great educational/
sulation, and caulking (Pelosi n.d.). While the program has all design opportunity, but there are no guarantees of future fund-
the right “green” catch phrases, in reality it would simply create ing or employment for the students, and future funding and
government-funded jobs (such as the caulking jobs) that will employment are the main purposes of higher education.
Economically, green includes costs, return on investment, and practicality. Therefore, we also
argue that in the current job crisis, green jobs should have an additional meaning. Perhaps the
only item that should be emphasized more in the United Nations Environment Programme’s
definition that is usually associated with green issues
is the sustainability factor. Now, we do not mean
sustainability in regard to natural resources (such
meaning is already established in the above definition).
We suggest that sustainability should relate to both the
market value and availability of such jobs. In other words,
green jobs should sustain the workers within this specific
sector, both in wages and in longevity.
Fall 2010/Winter 2011 Business Perspectives 31
Economic sustainability should also mean no taxpayer subsidies to
support such employment. Regrettably, with the slow economic recovery
in the U.S. and the proposed increase in federal taxes on petroleum
to reduce government debt, the environment and long-term economic
employment in sustainable technologies look mixed.
In his proposal for passing the stimulus package, President high, the public will reject any such innovation. Following the
Barack Obama states, "The jobs we create will be in businesses most basic economic principles, innovation can only come
large and small across a wide range of industries. And they'll be from public appeal and demand for new sustainable products.
the kind of jobs that don't just put people to work in the short For example, renewable energy has a higher price tag than does
term, but position our economy to lead the world in the long fossil fuel. Without consumer demand and, more importantly,
term" (Bacon 2009). Policymakers also predicted that many government intervention, green energy cannot begin to reach
of the new jobs would be so-called green jobs, involving such its job creation potential (Fletcher 2010).
tasks as retrofitting buildings. This initiative reflects a desire to So, what does this mean for green jobs? Until there is a bet-
use some of the stimulus money for innovative projects rather ter and more realistic definition and plan, the potential for true
than for improving current infrastructure such as roads (Bacon sustainable green jobs will be beyond our reach. ●
2009). However, the largest number of jobs added would be in
construction and manufacturing, with more than 678,000 of
the new positions being created by public works projects such
References
as road building—a direct contradiction to the policymakers’
statement. And, most certainly, 17,000 new green jobs are but a Bacon, Jr., Perry. “Obama: 4 Million New Jobs by 2010.”
small fraction of the overall four million jobs the government Washington Post, January 11, 2009. http://www.post-
hoped to add to the economy by 2010 (Bacon 2009). gazette.com/pg/09011/941119-176.stm#ixzz15e3pxhsg
(accessed November 30, 2010).
In December 2009, U.S. News and World Report released its
50 best careers list for 2010. This list included a few green jobs Bureau of Labor Statistics. “Measuring Green Jobs.” Green Jobs,
such as environmental science and environmental engineering November 10, 2010. http://www.bls.gov/green/ (accessed
technician. However, these technical careers have broad catego- December 10, 2010).
ries, definitions, and implications for the employee. “In the sci- Environmental Protection Agency. “P3: People, Prosperity and
ence and technology field, jobs range from network architect to the Planet Student Design Competition for Sustainability,
meteorologist. This category includes the fastest-growing oc- 2010.” http://www.epa.gov/P3/ (accessed December 10,
cupation—with a 72 percent growth rate that far outstrips the 2010).
10 percent average across careers—of biomedical engineer” Fletcher, Michael A. “Retrained for Green Jobs, But Still
(Wolgemuth 2009). Perhaps we should be training more stu- Waiting on Work.” Washington Post, November 22, 2010.
dents in biomedical engineering than in sustainable technolo- http://www.washingtonpost.com/wp-dyn/content/article/
gies. 2010/11/22/ AR2010112207583.html (accessed November
Traditionally in a time of economic uncertainty, consum- 30, 2010).
ers return to what they know and continue to support the in- “House Committee Passes Solis' Green Jobs Act: Bill Will
efficient and highly unsustainable usage patterns of the past. Prepare Workers for ‘Green Collar Jobs’ to Fight Global
Only a few months ago, the BP Oil disaster had our complete Warming.” June 27, 2007. http://solis.house.gov/list/
attention, and yet we drive our cars just as much as we did pre- press/ca32_solis/wida6/greenjobscomm.shtml (accessed
viously because there appears to be no readily available and af- November 30, 2010).
fordable alternative. Affordability is the key. If the cost is too
32 Business Perspectives Fall 2010/Winter 2011
Juliann Waits, PhD
Dr. Juliann Waits is an Assistant Professor of Natural Sciences at Southwest Tennessee Community College (STCC)
and is an active member of the STCC Green Committee. She is an Adjunct Professor with the Department of Biology
in the Ecological Research Center at the University of Memphis. She has substantial experience in environmental
and evolutionary ecology, population genetics, and biostatistics. She received her PhD in Environmental and Evolu-
tionary Ecology from the University of Louisiana—Lafayette in 2002.
Stephen Smith
Stephen Smith serves as both Research Associate II and Editor at the Sparks Bureau of Business and Economic Re-
search at the University of Memphis. He has been with the Bureau since 1994. Mr. Smith earned a MA in English from
the University of Memphis. Currently, he is completing his doctoral studies in English with a major in Professional
Writing. His study and professional backgrounds include classical rhetoric, rhetoric of science, visual rhetoric, tech-
nical communication, and layout and design.
ple since the early 1900s and has continued to be successful in different types of employment for the client, coming as close
the twenty-first century. as means allow to locating a job that best suits the client in this
Zunker goes on to explain that career counseling was “cre- current, delicate job market.
ated to meet the needs of a society during the shift from rural It is no surprise that the economy has impacted the job
to urban living in the industrial age and has expanded its focus market. But, just how has it affected it? The unemployment rate
during other transitional periods of changes in how and where for Tennessee as of May 2010 was 10.4 percent, compared to the
we work and live” (2006). Thus, career counseling helps people national rate of 9.7 percent (Bureau of Labor Statistics 2010).
find appropriate jobs that will benefit them. By discovering a What are currently unemployed or potentially future unem-
successful job, the potential employee in return will prosper the ployed individuals doing to secure employment? One possible
employer as a result of the positive attitude displayed by the service being sought is career counseling offered through most
employee. Even though jobs are scarce at this time, career coun- career centers and community agencies, where these individu-
seling still allows the counselor and/or therapist to research als focus on career exploration.
References
Bureau of Labor and Statistics. “Southeast–Laborforce Statis- Thomas, Rebecca. Personal Communication, July 17, 2010.
tics.” http://www.bls.gov/xg_shells/ro4xg02.htm (accessed “TN Ranks in Top Percentile of Successful Re-Employment of
July 1, 2010). Retrained Workers.” Oneida-Independent Herald, June 17,
Frazier, Fred. Personal Communication, July 7, 2010. 2010.
Herr, E.L. “Career Development and Its Practice: A Historical Tyus, Guin. Personal Communication, June 30, 2010.
Perspective.” Career Development Quarterly 49.3 (2001): Williams, III, G.C. “Cinram to Lay Off 457 in La Vergne.” The
196–211. Tennessean, June 12, 2010.
Holland, J.L. Making Vocational Choices: A Theory of Careers Wilson, W.J. When Work Disappears: The World of the New Ur-
(3rd ed.). Upper Saddle River, NJ: Prentice Hall, 1997. ban Poor. New York, NY: Random House, 1996.
Parker, Kathy. Personal Communication. 30 June 2010. Zikic, J., and D.T. Hall. “Toward a More Complex View of Career
“Senate Blocks Aid to America’s Jobless.” Bristol Herald Courier, Exploration.” Career Development Quarterly 58.2 (2009):
June 17, 2010. 181–191.
Tang, M. “Career Counseling in the Future: Constructing, Col- Zunker, V.G. Career Counseling: A Holistic Approach. Belmont,
laborating, Advocating.” Career Development Quarterly NY: Thompson, 2006.
52.1 (2003): 61–69.
Katherine Henderson
Ms. Henderson is a Research Assistant at the Sparks Bureau of Business and Economic Research (SBBER). She received
her Bachelor of Professional Studies with a concentration in Organizational Leadership at the University of Memphis
in 2009. She received a Master of Science in Leadership and Policy Studies, with a concentration in Student Personnel
at the University of Memphis in December 2010. She has experience in research, teaching, administration, and student
services. Ms. Henderson is currently responsible for the coordination, research, and management of various projects for
the SBBER, including programs associated with Tennessee Career Centers.
Lauren Dalton
Ms. Dalton is a Graduate Research Assistant for the Sparks Bureau of Business and Economic Research (SBBER). She has
been attending the University of Memphis since 2005, where she graduated with her Bachelor of Arts in Psychology with
a minor in Sociology in December 2008. Ms. Dalton will earn her Master of Science in Clinical Mental Health Counsel-
ing in the University of Memphis’ Counseling, Educational Psychology, and Research Education program in December
2011. From there, she plans to pursue her PhD in Counseling Psychology. Ms. Dalton aspires to run her own counseling
practice in hopes of providing ethical mental health services.
Fallll 2010/Wi
F 2010/Winter
t 2011 Business
B i P
Perspectives
ti 37
National Economic Indicators
216.3
48.6
54.4
218.4
October 2010
49.9
56.9
218.7
November 2010
54.1
56.6
218.8
Percent Change
+6.9
+5.6
+1.2
4
Retail and Food Services Sales ($ Millions) 351,764 369,440 375,571 378,706 +7.7
5
30-Year Mortgage Rate 4.88 4.35 4.23 4.30 -11.9
6
Housing Starts (000) 579 588 519 — —
*Not seasonally adjusted.
P
=Preliminary estimate.
1
The Conference Board, www.conference-board.org.
2
Institute of Supply Management (ISM) Manufacturing Report on Business.
3
Bureau of Labor Statistics.
4
Economic Indicators.Gov-Economics and Statistics Administrations, www.economicindicators.gov/.
5
The Board of Governors of the Federal Reserve System, The Federal Reserve Bank, St. Louis, Missouri. All monthly 30-year mortgage statistics in this table are reported for the third
weekly observation for each month.
6
The Board of Governors of the Federal Reserve System, The Federal Reserve Bank, St. Louis, Missouri.
Unemployment Rates, U.S., Tennessee, and Memphis MSA,* Seasonally Adjusted, November 2009–November 2010
U.S. Total Nonfarm Employment, All Employees (000), November 2009–November 2010
Tipton County, TN
October 2009: 12.2
September 2010: 10.2
October 2010: 10.4
Crittenden County, AR
October 2009: 9.3
September 2010: 10.2 Shelby County, TN Fayette County, TN
October 2010: 9.4 October 2009: 10.6 October 2009: 11.6
September 2010: 9.7 September 2010: 9.8
October 2010: 9.8 October 2010: 10.2
DeSoto County, MS
October 2009: 7.0
September 2010: 7.1 Marshall County, MS
October 2010: 7.0 October 2009: 10.9
September 2010: 10.9
October 2010: 11.0
Tate County, MS
Tunica County, MS October 2009: 10.7
October 2009: 12.9 September 2010: 10.2
September 2010: 14.4 October 2010: 9.8
October 2010: 13.6
Tipton County, TN
Permits Issued: 6
Percent Change: -40.0%
Crittenden County, AR
Permits Issued: 6
Percent Change: -14.3% Shelby County, TN Fayette County, TN
Permits Issued: 97 Permits Issued: 7
Percent Change: 76.4% Percent Change: -61.1%
DeSoto County, MS
Permits Issued: 34
Percent Change: -17.1%
Marshall County, MS
Permits Issued: 2
Percent Change: 60.0%
Tunica County, MS
Tate County, MS
Permits
Permits Issued: 4
Issued: 0
Percent Change: 42.9%
Percent
Change: -100.0%
The University of Memphis, a Tennessee Board of Regents institution, is an Equal Opportunity/Affirmative Action University. It is committed to education of a non-racially identifiable
student body.
The University of Memphis is one of 45 institutions in the Tennessee Board of Regents system, the sixth largest system of higher education in the nation. The TBR is the governing board
for this system which is comprised of 6 universities, 13 two-year institutions, and 26 area technology centers. The TBR system enrolls more than 80.0 percent of all Tennessee students
attending public institutions of higher education.
UOM 64-0001/4.0M J.W. Moore Printing Company, Inc., 3011 Carrier Street, Memphis, TN 38116-2405
One of the nation’s largest and most respected business research bureaus, the Sparks Bureau of Business and Economic Research:
• Provides information and assistance to the local area on economic trends, economic data, employment and unemployment, and tax revenues and projections.
• Conducts research on broad areas of economic impact and development and major community issues, as well as manpower, employment, information technology, GIS, real estate, and
training program development and evaluation.
For more information about the Bureau and any of the material described in this publication, call (901) 678-2281 or visit our Web site at http://sbber.memphis.edu/home.html.