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Where have all the Jobs Gone?

June 18, 2008 - Everywhere you look there is another story about the lack of jobs in America.  A quick search of news stories finds headlines including: Dismal jobs report, US jobs and sales figures indicate weakening economy, Students feeling lack of jobs, and Desperate for jobs.   

All of these stories lead us there is a major job shortage in America.  Actually, there are more jobs in America than their are people to fill them.  The question is are the American citizens trained for the jobs available and do they know about them. 

The Department of Labor forecast for the Heating, Ventilation, Air Conditioning and Refrigeration (HVACR) Service Technician industry:

In 2006 twenty two thousand (22,000) positions in the HVACR industry were unfilled nationally

In 2008  sixty thousand (60,000) jobs will go unfilled in the HVACR industry. Those positions include all jobs ranging from entry level to top paying positions.

Over the next decade, thirty thousand (30,000) new technicians positions will be created annually

The industry will grow by eighteen (18) to twenty six (26) percent by 2014

The shortage will increase 24% over the next 5 years

The HVACR is a $200-billion-a-year U.S. industry, and second only to transportation as the largest consumer of energy

The Department of Labor's data shows that roughly forty percent (40%) of the HVACR industry is eligible to retire in the next decade. During this same period of time, the HVACR service industry is set to grow by eighteen (18) to twenty six (26) percent. If these numbers hold true, we will need to recruit and train sixty six (66) percent of our current industry workforce in the next decade.

The HVACR industry is an example as to the true jobs situation in America.  Skilled labor jobs constitute roughly 65% of our jobs nationally.  These jobs can not be automated, nor can they be exported.  Dental hygienist, Emergency Medical Technician, Fire fighters, Carpenter, Electrician, HVACR service technicians, and hundreds of other trades need to be performed by someone here in the United States.

The baby boomers retiring creates a situation where there are more jobs than people to fill them.  Estimates show that roughly seventy million (70,000,000) baby boomers will retired in the next decade. There are only forty million (40,000,000) workers entering the workforce to replace them.

Eric Seleznow
Executive Director
State of Maryland
Governor's Workforce Investment Board   

"There is a growing crisis in America, one that is occurring because too few young people now develop the kind of manual skills required by industries, workshops, and engineering practices. Through mentoring programs, education, and media awareness, NBTF will once again introduce young people to the pleasures of tinkering. And in that way, we will create the next generation of artisans, inventors, engineers, repairmen and skilled workers - in short, a self-sufficient, self-sustaining society."

John Ratzenberger
Actor & Founder of
Nuts, Bolts and Thingamajigs Foundation (NBTF) 

Mr. Richard Holden of the United States Department of Labor, Bureau of Labor Statistics presented at the National Educators and Trainers Conference.  His discussion of "Employment opportunities in the HVAC industry" covered:

  • Trends indicating the sectors where new jobs will be most prevalent
  • Employment projections through 2016
  • The industry move to more complex energy efficient systems


Richard Holden
United States Department of Labor, Bureau of Labor Statistics

The purpose of his presenting to educators, wholesalers, manufacturers and other members of the industry was to teach them how we need to gear our training to the jobs that will be highest in demand in the years to come. The high demand and top paying sectors (Green Jobs) of our industry is where most of our efforts in training and education need to be focused at this point.

The Department of Labor categories employment into twenty two (22) occupational groups. The HVACR industry is part of a career cluster that is a top ten (10) industry for employment, and will be in the top ten (10) fastest growing industry sectors through 2016.

Ten (10) of these groups will grow faster than the average thirteen (13) percent growth expected overall. HVAC is in one of these top growing sectors. The top occupational sectors accounted for thirty two (32) percent of our nations employment in 2006 and are projected to account for fifty six (56) percent of our employment change by 2016.

Some of the factors that will affect employment in the HVACR industry include: Raising energy cost, Policy initiatives (GH gas initiatives), Building stock, Replacement demand, Completers, Regional Difference. The biggest item in this list on everyone's mind is raising energy cost. Energy efficiency will be a driving factor in changes to the HVACR industry and drive a great deal of growth in the next decade.

Salaries vary greatly from region to region and state to state. The top paying states for HVACR service technicians are: Alaska, District of Columbia, Massachusetts, New Jersey, and Minnesota.

(To learn more about the employment outlook for the HVACR industry, view the United States Department of Labor 87 slide  presentation)

Why are these jobs going unfilled? 

People want large a income potential: HVACR service technicians earn a great wage. In a 2005 survey of the Mechanical Service Contractors of America (MSCA)* Members, the average base hourly wage was $28.96!    

People are seeking good benefits: HVACR service technicians have access to a number of excellent benefit.  The MSCA members benefits include: health insurance, pension plans, employer-sponsored training, uniforms, service vehicles and tools.   With raising fuel prices, having a company vehicle to get to and from work is a tremendous benefit. 

People want to enter a highly skilled field:  Today’s climate systems use an increasingly sophisticated combination of machinery and computers to deliver comfort to building occupants. Those entering the field will be working on complex systems that require a unique combination of hands-on skill and problem-solving intelligence.  

People are looking for abundant employment opportunities: There is an immediate need for qualified service technicians as new buildings are being built and older buildings require more service and maintenance. Developing areas of the field, such as indoor air quality and energy efficiency, means a need for more skilled technicians.

 *MSCA is the leading contracting association representing: Johnson Controls (#70 on the Fortune 500 list of biggest companies), Carrier Commercial, Trane Service, John J. Kirlin, Inc., Murphy Company, J.F. Ahern Co., McKinstry, McKenneys, ACCO Engineered Systems and over 1,200 leading companies.

Untold Story: Twenty percent of all jobs in the United States require a bachelorette degree or higher.  Meaning that 80% eighty percent of our jobs do not.  The majority of jobs in the United States require post secondary technical education.  This story is not told by most high school guidance councilors as they seek to place as many people in colleges as possible.

In order to make more people aware of the number of jobs available, the MSCA has developed a new recruitment program to get the word out.   The new program called Five Star Careers, reaches out to students, parents, guidance councilors to explain the benefits of a career in the HVACR industry.  The program consist of a new website that promotes the opportunities in the HVACR industry and dispels many of the misconceptions.

 

Free HVACR Industry Recruitment Brochures are now available to promote and learn about the exciting career opportunities in the HVACR industry.

As an added bonus, if an applicant is a graduate of an HVAC Excellence accredited program and has successfully passed their Employment Ready exams, the MSCA companies can fast track these persons to higher entry level positions.


Barbara Dolim, executive director of MSCA
 at the  National HVACR Educators and Trainers Conference

Positions Available:

  • An in demand profession

  • A good salary

  • Great Benefits

  • College credits

  • A high tech in demand profession

  • Training while you get paid

If this sounds like the ideal job, then a career as a HVACR service technician is just what you’re looking for.  Whether you are starting your career search or just getting into the job market and the above points meet your goals, then the HVACR field is the place for you. 

These problems present a great opportunity for all of us in the HVACR industry to work together. Our industry offers a great many career paths and opportunities for young people who are willing to work hard and learn. It is up to each and everyone of us to work with local high schools and share our stories of the career opportunities our industry offers.

Find out more about the career opportunities in the HVACR industry, visit www.5starcareers.com

The media leaves you to believe there is a jobs shortage, the truth is the only shortage is in skilled labor.