Who works where?

By Hannah Wever
Review Staff Writer

Published: October 2, 2008

In an ideal world, local high-paying job opportunities exist for all eligible workers. In the real world, half of our local work force plies their trades elsewhere, while those who work here make less than the state average.
Can that gap between real and ideal be bridged?
According to the state-run labor market information site, Virginia Workforce Connection, data from June 2008 shows that the total civilian workforce numbered 15,886. But about half of the individuals who comprise the county’s workforce leave the county to work each day in other localities.
Statistics from the 2000 census show that 36 percent of the Orange County residents actually work in the county.
Michael Harvey is executive director of the Thomas Jefferson Partnership for Economic Development. According to Harvey, when a large portion of the community is leaving that community to go to work, there’s a proportionate loss of tax revenue that goes with them.
“The fact that Orange County has over 50 percent of its workforce commuting out of the county everyday should be a concern,” he said. Companies that locate in Orange and employ Orange residents add up to positive revenue for local government, he added.
Jobs in Albemarle County take up 24 percent of the county’s workforce, and jobs in Culpeper County take 23.7 percent of out-commuting Orange residents across county lines to work. Spotsylvania-bound Orange County residents account for 21.8 percent, Louisa 16 percent and Charlottesville 14.5 percent.
Positions here in Orange that are filled by folks from out of the county comprise 18 percent of local jobs. The largest percentage of in-commuters (29.8 percent) comes from Louisa. Madison residents make up 29.7 percent of Orange’s workforce, Albemarle and Culpeper residents work at jobs in Orange at a rate of 16.1 percent and 12.8 percent, respectively. In-commuters from Spotsylvania account for 11.7 percent of Orange County’s workers.
Recently, some folks who made up the county’s workforce found themselves unemployed when two of Orange County’s major employers reduced or laid off members of their labor force. In March of 2008, AB&C Group call center closed, leaving 80 employees jobless. And a month later, Timber Truss Housing Systems announced that production at their Orange facility would shut down, and 60 workers were without jobs.
It’s sobering to think of 140 individuals scanning the want-ads and logging on to Monster.com. But according to Orange County Assistant Administrator and Director of Economic Development Julie Jordan, one door closed, but another opened-so to speak-for at least some of those who found themselves jobless in Orange recently.
“Anecdotally, I know that at least half of those from AB&C Group got jobs in the next couple of weeks. I think the majority of those folks have already found other employment,” Jordan said.
The county had an unemployment rate of 4.9 percent as of this past June, meaning 772 individuals within the total workforce were unemployed. The unemployment rate in Virginia in June 2008 was 4.2 percent. Nationally, by comparison, the unemployment rate was 5.7 percent.
There are job opportunities out there, Jordan said, but perhaps fewer than there were before the economy felt the death grip of a nationwide economic downturn. And what employers are looking to hire at the moment are skilled workers.
“We have a list of job opportunities in the county. It used to have quite a lot of companies-there are fewer now,” Jordan said. “Ridgid is at full employment. Timber Truss is at full employment, but they’ve cut their production aspect. As far as a company like Woodmark looking for 250 people-those aren’t out there. MPS is still employing, the small companies are still employing,” she added.
“At MPS for instance, you have to have a certain level of computer aptitude,” she said “It’s hard to think of a job where you don’t need a specialized skill.”
After all, flipping the burger to a particular restaurant’s exacting specifications for quality and uniformity is still a specialized skill.
But in order to create more local opportunities for a range of jobseekers, statistics need to be examined under a microscope. Just looking at plain data and census-derived percentages from the U.S. Department of Labor, it’s not easy to determine precisely what segment of the population is unemployed in Orange. Are they neurosurgeons and nuclear engineers, or farm laborers and fast food part-timers? Are there far fewer opportunities locally for a job-seeker with a PhD and an extensive work history? Or more?
“We need to know what we have and what we could potentially produce. Being armed with information gives you more ways to go about it. What are the skills of the 4.9 percent? I think it would be interesting to know what’s behind the statistics,” Jordan said.
Harvey said he’s planning to launch a region-wide study which will collect valuable primary data through household surveys. In order to determine how to boost the local job market and subsequently widen the tax base by attracting a specific business profile, “You’ve got to ask the questions,” Harvey said.
“When it comes to labor, having more information is better, and having more understanding is better,” Jordan said.
“The questions we need to ask ourselves are ‘How can we capture those people who leave the county to work?’ ‘Are there positions here in Orange or are there companies we could attract?’ ‘’ she asked rhetorically.
In the fourth quarter of 2007, according to Virginia Workforce Connection, the largest major industry sectors were education services, manufacturing, and retail trade. Of those employed in the county, 1,090, or 12 percent worked in education services positions. Manufacturing positions numbered 1,020 (11 percent) and retail trade jobs also accounted for 11 percent, with 1,002. Folks held jobs in Orange within other industry sectors, but in far smaller numbers:  684 construction workers, 682 in accommodation and food services and 628 in health care and social assistance.
Predicting which industry or sector would provide the greatest benefit to Orange in terms of jobs and contributions to the tax base is complex, Jordan said. Is it what the population needs? Does the local workforce want a high wage or are they more impressed with a company that offers a promising career ladder?
“Sometimes there’s the perception that this is a good industry or that is a good industry-but is it?” Jordan said.
There are constants when it comes to the needs of local jobseekers. The county needs jobs for high school and college kids off from school during summer break. There’s a need for jobs for part-timers who only want to work 20 hours so they can spend the rest of their time with their families. And the county needs jobs that offer a range of compensation styles.
“There are a lot of people who would love to have a job with a 401K and benefits versus a high salary and no benefits,” Jordan said. But by contrast, she added, there are those in the job market who would prefer a smart paycheck and couldn’t care less about stock options, employer-matching savings offers, an inclusive dental plan, or generous retirement packages.
“In any economy, you need low, middle and high-paying jobs. Somebody’s got to be the one who works at McDonald’s or the one who picks the grapes,” Jordan said, “but you’ve got to be bringing the median wage up.”
According to data compiled by The Virginia Workforce Connection, Orange County’s working population earned an average weekly wage of $621 in the 4th quarter of 2007. That’s the equivalent of $15.53 per hour, or $32,292 per year for a 40-hour work week. Statewide, however, the average weekly wage was $922. That’s $23.05 per hour, or $47,944 annually.
Creating a blueprint for a successful and thriving business environment that serves the needs of all members of the local workforce is complex.
“It’s amazing how many tentacles this stuff has,” Harvey admitted.
“It’s not an easy nut to crack. It’s complicated and there are a lot of different angles.” Jordan confirmed.
And cracking that multi-faceted, complex nut is on the county’s shortlist, but perhaps not at the top.
“If the unemployment rate was lower and the businesses were clamoring for labor I suppose it would be higher,” Jordan said. “It is a high priority though in terms of trying to expand the tax base or trying to increase services,” she said.