Each Chicago manufacturing job leads to 2 more: study

May 21st, 2013
By  Meribah Knight  May 21, 2013

It’s called a multiplier effect: when one job generates another job that is  dependent on that job, and so on. In the Chicago area, each new manufacturing  job creates another 2.2 jobs in the region, on average, according to a new study  by the University of Illinois at Chicago.

the most robust areas for job multiplicity are in the manufacturing of  petroleum and coal products and in pharmaceuticals, each generating 8.3 and 5.7  jobs, respectively, in the region, according to the report from UIC’s Center for  Urban Economic Development.

The study found that chemical manufacturing generates 3.8 jobs, and beverage  and tobacco products create 3.6 jobs. Textile manufacturing jobs came in last,  generating only 0.5 additional jobs, the study found.

“Most of these industries are powerful job creators,” said study co-author  Howard Wial, executive director at the Center for Urban Economic Development and  a Brookings Institution fellow. He worked on the report with Elizabeth Scott, an  economic development planner in the Center for Urban Economic Development.

To find the overall multiplier, the study added each new manufacturing  factory job with jobs in supply industries, and then jobs in service industries  that each manufacturing employee patronizes. The study, which begin measuring  the impact with only factory jobs — it does not include research and development  or administrative positions at manufacturing companies — analyzed seven counties  in Illinois: Cook, DuPage, Kane, Kendall, Lake, McHenry and Will.

The Chicago region’s overall average of a 2.2 job multiplier for the  manufacturing industry is on par with other metropolitan regions, Mr. Wial said.  On a national scale, the multiplier for a manufacturing job is 4.6, higher  because of a larger geographic scope for supply chains and induced spending.

Manufacturing tends to have a higher multiplier than other industries because  of its sturdy wages and long supply chains, Mr. Wial said.

The finding that petroleum and coal — realized mainly as the region’s oil  refining industry — generated the most impact in the Chicago area was  unexpected, Mr. Wial said. He said it was surprising to find that the region’s  oil and coal industry had such a lengthy supply chain, making even more of an  impact than automotive or machinery sectors.

The report found that Chicago’s two largest manufacturing industries, food  and fabricated metal, create 2.6 and 2 additional jobs, respectively.

“When a new job in an industry leads to the creation of even one other job in  the region, that’s a very good return,” Mr. Wial said. “That’s why policymakers  still prize manufacturing for its potential to create jobs, despite growing  automation.”

In other words: Even while manufacturing jobs dwindle as human capital is  replaced with robots and automated machinery, a higher output will still result  in more jobs, Mr. Wial said.

“Industries with higher productivity typically pay higher wages, leading to  more induced jobs,” he said.

And the region’s recent  growth in the manufacturing sector can only mean good things for  putting the multiplier into action.

“Until recently, offshoring, consumer spending on imported goods and the  growing use of out-of-region suppliers reduced manufacturing’s impact on job  growth in the Chicago area,” Mr. Wial said. “The recent rebound of manufacturing  employment may change the situation.”


2013’s Headlines, Trends and Next Practices

December 4th, 2012

2013’s Headlines, Trends, and Next Practices 

Do you want to be a leader or a follower in the New Year?
Of course, you want to be a leader. And to help you stay in front of the challenges you are going to face, we’ve prepared a summary of the  top 28 trends to watch.
The original list was created by HR thought leader Dr. John Sullivan. You’ll find a link to his full original article at the end of our summary.

Employee misclassification enforcement

December 4th, 2012

Illinois steps up employee misclassification enforcement    

Illinois Governor Pat Quinn recently announced a new initiative to step up enforcement against employers that misclassify workers as independent contractors. The Illinois Department of Labor, Illinois Department of Employment Security (IDES), Illinois Department of Revenue, and Illinois Workers’ Compensation Commission are working jointly to increase awareness, help responsible business owners obey the law, and punish fraud.

“Hiding a full-time employee as an independent contractor creates an unfair competitive advantage. It artificially lowers the costs for the business owner who breaks the law, undermining and out-bidding the honest business owner who follows the rules,” Governor Quinn said. “This initiative rewards those who do it right and punishes those who knowingly do it wrong.”

To be considered an independent contractor, a worker must:

  • Be substantially free from control or direction;
  • Provide services that lie outside the normal scope of the contracting business; and
  • Be engaged in an independently established business or occupation.

Employers breaking the law could face fines of at least $10,000, up to 24 percent interest on unpaid unemployment compensation taxes, unpaid minimum wages and overtime, and other taxes and benefits. Officers and employees of businesses in Illinois that willfully misclassify workers can be held personally liable for payments due, IDES noted. Detailed instructions on properly classifying workers are available at www.illinoismisclassification.com.

Contact Superior Staffing today to learn more about our Staffing Programs and how we can make them work for you.

Superior Staffing Launches New Website

November 10th, 2012

Superior Staffing, a leading provider of temporary, temp-to-hire, direct hire and payroll staffing services in the Chicagoland area, has launched its new website at www.superior-staffing.com.

Our hope is to provide more direct access for employers and job seekers in Chicago and its suburbs for our wide range of staffing services, including background checks, safety control implementation, training, skills assessment and more. With this website, we intend to place more highly qualified, screened candidates with desirable employers offering light industrial, warehouse, manufacturing, office/clerical and specialty positions.

Please give us feedback on our new site or contact us today so we can show you the difference that superior service without exception makes!

Superior Staffing, Melrose Park, IL (708) 345-8463 and Addison, IL (630) 516-3505.