Major drawback for governor’s economic plans
By Ershad Kamol
kkhan@dominionpost.com
Aaron Dickins, a West Virginia University graduate student, has no plans to look for a job in West Virginia. He doesn’t think the state has the job opportunities he’s looking for in terms of salary and other benefits. Dickins, who hails from Huntington, said he will look in other states for a better opportunity. He’s not alone. Other West Virginia college students look for jobs outside the state once they graduate.
There is no specific data regarding such migration.
But, the U.S. Bureau of Labor Statistics data shows that the limited white-collar jobs offered in West Virginia do not pay as much as similar positions in other states. According to BLS data, the median hourly wage of all the 650,010 employees in West Virginia was $17.72 in 2021, while the median hourly national wage of all 140,886,310 employees in the U.S. was $22.
The salary gap is greater for top level positions. The national median hourly wage for executives is $86.31, but the median hourly wage for those executives in West Virginia is $73.02. And the average hourly wage for the same position is $80.74 in New York, $83.62 in Florida, $92.96 in California and $128.71 in Michigan.
Some economists and job promoters in West Virginia consider talent migration to other states in search of better opportunities, also known as “brain drain,” a major drawback for the state’s economic development. They see this as a problem as West Virginia invests money in educating and developing skilled manpower and then those workers leave for others states.
“I think brain drain has been a major problem for our state for many years, and it continues to be a problem. And there is no easy and quick fix to overcome this ‘Brain drain’ still a problem for the state,” said John Deskins, director of West Virginia University’s Bureau of Business and Economic Research. “I frequently refer to the low rate of labor force participation in our state as a major economic impediment,” Deskins said.
Terry Vance, operation manager for Operation Welcome Home, which helps military veterans with employment, said that there is a shortage of white-collar jobs, while many positions for blue-collar or lower-paid physical jobs remain vacant in the state. The pay level in the white-collar jobs is less in West Virginia compared to other states while many chain stores pay better to fill up the vacant blue-collar positions, Vance added.
Though people may argue that cost of living in West Virginia is cheaper than many other states, young people often look for jobs with a higher salary and greater opportunities, Vance said. “They don’t consider cost of living issues while selecting jobs,” Vance said.
The average cost of living, including house rent, for a single person in West Virginia is $1,509 a month. Across the nation, that amount jumps to $2,061, according to livingcost.org. It is $2,007 in Florida, $2,808 in New York and $1,784 in Michigan, according to the website. Vance said many people also leave government jobs in West Virginia because of lower salaries and the stress that comes with the position.
“Many people think doing jobs in the chain shops like Walmart is better in terms of payment and job stress,” Vance said.
The latest WorkForce West Virginia data, published in May, also shows that in certain sectors, especially employees in the lower tiers, show an increase by 17,400 since April 2021. Employment increased by 7,400 in leisure and hospitality; 3,500 in professional and business services; 3,500 in trade, transportation and utilities; 1,500 in mining and logging; 1,300 in construction; 1,200 in manufacturing; 900 in other services; and 800 in financial activities. Employment declines included 1,900 in education and health services and 1,100 in government, according to WorkForce West Virginia report.
WVU Medicine is the top employer of the state, followed by Walmart, Charleston Area Medical Center, Mountain Health Network and Kroger, according to WorkForce West Virginia website. Hospitals, hotels and chain stores have recently flourished in West Virginia and created opportunities for the low-wage or blue-collar jobs, while many businesses and mines resumed in-person work following the COVID-19 pandemic. Vance said this led to the decrease in the unemployment rate. Vance and others said that businesses in West Virginia are now seeing a shortage of suitable skilled manpower.
“Now if someone needs a job, he will get it. But, if someone wants to enjoy unemployment benefits, the person will remain unemployed,” Vance said. WorkForce West Virginia data also shows that state’s unemployment rate dropped recently and reached the national average of 3.6% in April. In March, it stood at 3.7%. Many elderly people are getting jobs and a recent study by Magnify Money shows that in May those 65 and over were doing 17.2% more jobs than in May 2020. The percent of retired adults in West Virginia dropped from 23.3% in May 2020 to 21.6% this May — the biggest drop across the U.S.
Deskins said unemployment in the state is now at historic lows. “I know of no economist who expects unemployment to fall further by any substantial margin. And unemployment will never reach 0% for numerous reasons,” Deskins said.
Both Deskins and Vance suggest the state government pay more attention to inviting big investors in the state and developing skilled labor so talented young people do not migrate to other states.
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