The petrochemical construction boom along the Texas Gulf Coast is fueling a need for more workers and Houston should do more to prepare employees to fill the surging demand for middle-skill jobs, a new report argues.
More than 120 petrochemical plants worth $80 billion are slated for construction or scheduled to open, within the coming years, stoking concerns about a shortage of skilled employees to build and operate the plants once they come online, according to a newly released job skills report by JPMorgan Chase & Co. to address the mismatch between local employers’ needs and the job seekers’ skills.
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The report is part of an effort led by the Greater Houston Partnership to boost the numbers of home-grown talent to meet the industry’s needs.
Houston employs 1.4 million middle-skilled workers, defined as employees who have a high school diploma but not a bachelor’s degree, but the city’s booming economy is expected to add 74,000 more of these jobs each year through 2017, the report found.
While one-fourth of those new job openings will come from two sectors — petrochemical and commercial and industrial construction — many Houstonians lack the necessary training or experience to fill those positions. Most employers require 1 to 5 years of work experience, which is problematic for a city where 20 percent of residents 25 years old or older don’t have a high school credential, the report stated.
Further complicating the shortage, these two sectors tend to want to hire the same workers: maintenance and repair workers; general and operations managers; truck drivers and first-line supervisors of mechanics, installers and repairers.
Recent job postings suggest an immediate need for these employees, the report said. And as a wave of baby boomers retire, the demands will only increase.
Related: Report: Export boom will boost Houston job growth
To tackle the problem, the report recommends that Houston provide more education programs and training for low-skilled workers to prepare them with the necessary credentials.
Employers need to partner with high schools and community colleges to expand the number of “work-based learning” options such as internships and apprenticeship. Schools should create “fast-track” programs that offer a series of short-term credentials that can be stacked as needed throughout an employee’s career, the report found.
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