Regional Economic Outlook: Attracting and keeping skilled workers remains top issue for Dayton region in 2023

Workforce issues, including labor shortages and the need to attract and retain skilled workers, will remain the Dayton region’s top economic priority in 2023, area experts say.

“We all have a role in addressing workforce and talent. As projects like Intel and Honda put Ohio in the spotlight, we have a chance to showcase what we have here and attract talent,” said Julie Sullivan, executive vice president of regional development at the Dayton Development Coalition. “It might sound contrary but creating jobs can help with talent attraction. People want to live where they have a variety of job opportunities.”

Credit: Knack Video + Photo

Credit: Knack Video + Photo

A dozen local experts from the business, financial, government, development and real estate sectors were asked about this year’s economic outlook for the Dayton, Springfield and Butler County regions in southwest Ohio.

In this four-part series that began publishing Sunday and runs through today the experts discuss the overall view of the region’s prospects, how the region can leverage its strengths, the possibility of an economic recession, the impact of inflation and higher interest rates and how the region is coping with labor shortages and workforce training issues.

ExploreSEE PART ONE of this series: Dayton region economic outlook for 2023 is positive though tinged with recession worries

In addition to Sullivan, those interviewed included Ben Ayers, senior economist for Nationwide Insurance in Columbus; Greg Blatt, president of Dayton Realtors and a realtor at Keller Williams Advisors Realty; Jim Bowman, owner and CEO of Noble Tool LLC of Dayton; Montgomery County Administrator Michael Colbert; Crystal L. Corbin, executive director of the Montgomery County Transportation Improvement District; Dave Dickerson, partner and president of Midwest market at Miller Valentine Construction of Dayton; Butler County Commissioner Don Dixon; Tom Franzen, Springfield assistant city manager and director of economic development; Springfield City Manager Bryan Heck; Chris Kershner, president and CEO of the Dayton Area Chamber of Commerce; and David Melin, PNC regional president for Dayton.

The Dayton region’s Comprehensive Economic Development Strategy, which was approved last year, says the top priority is to develop, attract and retain diversified talent, and to encourage workforce readiness and resilience.

ExploreSEE PART TWO of this series: Regional economic outlook: Mild to moderate recession possible in 2023, local experts say

Achieving that involves a four-part strategy focusing on education at all levels, aligning education and workforce development programs with industry need and opportunities, addressing structural barriers like costs, transportation, housing and childcare and promoting the region’s career opportunities, according to the plan.

“When you combine our career opportunities and our quality of life, the Dayton region has a lot to offer,” Sullivan said. “The more our companies share not just what jobs they have open, but what our community can offer, the more likely we are to become a destination for job seekers.”

Blatt and Dickerson said affordable housing is a workforce hurdle that needs addressed as the region tries to attract workers.

“We really have limitations on what I consider to be affordable housing that the state and the region need to really concentrate on,” Dickerson said. “If we are talking about retaining or attracting talent to the state you’ve got to live somewhere. And we haven’t really kept abreast of that.”

Another big part of the workforce problem is there are simply fewer people in the labor market to fill job openings. The labor force participation rate, which measures the number of people working or looking for work, was 62.3% in December, still below the pre-pandemic rate of 63.4%, according to U.S. Bureau of Labor Statistics data.

ExploreSEE PART THREE of this series: Local residents and businesses will still feel sting of inflation and higher interest rates in 2023

Finding skilled workers was challenging before the COVID-19 pandemic. But experts say it exacerbated the problem as it led many older people to leave the workforce as well as large numbers of women, who continue to struggle to find affordable, quality child care. Some people no longer in the workforce are among the more than 1.1 million who died of COVID, others are discouraged job seekers or people afraid of of catching COVID in the workplace. Fewer legal immigrants and the aging U.S. population also are factors.

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“I meet often with business owners and workforce seems to be the primary issue. Across the country and in our region, we have seen a population decline in the core working age group of 25- to 60-years-old. Currently, we have significantly more jobs than people to fill open positions,” Melin said. “The solution is education. We need an educated workforce with the right skills to attract new businesses and support our existing economy.”

Credit: Alexis Larsen

Credit: Alexis Larsen

He and others said the region’s higher education institutions are robust and people have many opportunities to pursue credentialed skills training and college degrees, although finding the money to do so can be challenging for some people.

State and local governments have focused resources on a variety of job training opportunities.

Counties play an important role, noted Colbert, pointing to Montgomery County’s programs providing job training, help with resume writing and interview skills, connecting workers with jobs and encouraging youth to finish high school.

Credit: HUE12, LLC

Credit: HUE12, LLC

“We partnered with Sinclair (Community College) to provide an IT apprenticeship, Miami Valley Career Technology Center to provide remedial math and reading courses to those who need a little extra boost. That’s all offered at our Employment Opportunity Center in west Dayton,” Colbert said. “We have also collaborated with the local AFL-CIO’s Building Futures program supporting trade apprentices for those 18 years or older within six to eight weeks, with a certification and employment with journeyman wages, which are 50% over the minimum living wage.”

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Colbert said the county’s YouthWorks program provides paid work experience to high school students and College 2 Work targets young adults aged 17 and up who are in college or on a waiting list.

“With so many people leaving our workforce now, it is more important than ever to train, mentor and guide the development of our youth,” Colbert said. “Young people are truly worth the investment because they are the ones who will work and lead in our community for years to come.”


See our four-part 2023 economic outlook series

Part 1 - The region’s general economic outlook

Part 2 - The possibility of a recession and its impact

Part 3 - The effect of inflation and higher interest rates

Part 4 - Labor shortages and workforce issues

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