Labor Commissioner offers latest labor market analysis

Real Estate Weekly, April 19, 2000

New York State Labor Commissioner James J. McGowan was the bearer of good news and sound financial advice at the March 2000 BOMA/NY luncheon attended by more than 300 real estate and management professionals.

One of the brightest statistics was the growth of employment, said McGowan, citing an annual growth rate of 2.6 percent, which had effectively lowered unemployment from 7.8 percent last January to 6.6 percent this year. And equally as optimistic is the fact that the job opportunities exist at all levels, he said, with real estate, finance and investment generating more than 12,000 jobs in the past three years to bring the total jobs in the field to 123,000.

"On sheer momentum alone the labor market is tighter than ever in New York," he said, attributing the market's condition to "paying the price of downsizing in the early '90's." What he also dubbed as "Pataki" reforms, including "unprecedented" tax cuts and the elimination of redundant tax regulations had also contributed to the improving economy.

In regards to this tight labor market, he recommended a host of programs being carried on successfully by some companies, including offering incentive-based pay; extra HR services, from day care to locating an apartment; and staff promotions from within. Or, take advantage of hiring from within the non-traditional labor pool, including older or handicapped individuals, or welfare-to-work candidates. He pointed to the tax breaks available to companies if they hired those from the ranks of the disabled or welfare-to-work. In New York alone, 350,000 candidates have become part of the welfare-to-work program, and unions such as 32B offer apprentice programs that help make the transition from dependence to independence smoother.

McGowan noted that the state has "created an open door for taking advantage of these programs," and offered the assistance of his office, which helps do the qualifying screening at no obligation.

He also noted that another plus for the marketplace is the Workforce Investment Act, which focuses on training and takes effect in July. It basically helps employers, "tell us what they need, where before it was a supply situation. It changes the whole concept of training." More than $400 million will be made available through this Act, which will create a "demand-driven" system, not one driven by what courses are available for training.