To raise INCOMES: EMPLOYERS, WORKERS have to give a little
Gallup’s housing shortage isn’t just a housing problem, it’s also a jobs problem. Even when housing options are available, McKinley County’s job creation tends to be at the lower end of the wage scale, where even people working full time struggle to make ends meet, much less save for a down payment.
On paper the answer seems simple: find a cheaper house or a better job. But that’s a challenge in an area with few available homes at any price and where most of the new jobs getting created pay minimum wage.
In an effort to bridge that gap, Gallup Housing Authority Executive Director Richard Kontz commissioned an Economic Scan and Jobs Analysis from BRC Research Management to see what could help move the city and McKinley County forward.
“How do we get this to even up a little more? That’s the dilemma,” he said. “There is a lot of technology-type jobs [and] some businesses could use more technology but they need to either train existing staff or bring in people with more technology skills.”
The problems won’t be solved overnight, but there are steps both sides can take to move the needle incrementally.
First, the starting point: The median household income in McKinley County is $36,179 a year, compared to $51,243 statewide. About 75% of the county population earns less than the median, Kontz said, and a third of the population lives in poverty. That’s nearly three times the poverty rate in the United States as a whole. The unemployment rate in McKinley County is 6.9%, compared to 5% for the state.
Local employers report struggling to find workers with enough education and the right skills for jobs with higher pay and more benefits.
“I find it very difficult to find people who are qualified for jobs above minimum wage,” Gallup Business Improvement District Chair Anna Blava said.
In Gallup, 84.1% of the working age population has at least a high school diploma; just 20.9% have a bachelor’s degree or higher. For McKinley County, the percentages are 78.3% and 11.5% respectively.
The top two industries (by most advertised jobs) in New Mexico, the state’s Northern Region and McKinley County are healthcare and social assistance and educational services. The top advertised job opening is Registered Nurse, and eight of 10 job ads in McKinley County are healthcare-related. That’s a clue for young workers looking to build careers and hoping to live nearby. (It’s also a sign that the regional economy needs to diversify, study author Brittany Babycos notes.)
In some ways the area isn’t much different from anywhere else. There are nationwide shortages of nurses, teachers and first responders. In other ways, the county has some disadvantages.
“The most glaring challenge affecting McKinley County is a lack of broadband access, which is only available to 47.3% of households compared to 85.2% of households across the United States, and only 31.9% of the McKinley County total population compared to 90.4% of the United States population,” Babycos wrote. The problem is less severe within the city of Gallup, but it affects the whole area. People without internet access may struggle to develop some skills.
So what are the short-term strategies to help make employees more valuable and businesses more successful?
For employers, the old acronym KISS applies – keep it simple, stupid. It’s all about focusing on the quality of goods and services, not just the quantity or variety. A good place for business owners to start is looking at their technology, Babycos said.
“A lot of places do have really good technology but it’s not being fully utilized,” she said. “People get in a hurry. They get their software set up, they use the basic features but they don’t really use all of the tools that are available in that software and they are really missing out.”
That may sound tedious or time consuming, but Babycos said one recent client saw a 43% gain in efficiency just by using previously untapped software features. Most business software has a lot of reporting capabilities. That data should help drive business decisions.
Employers should use their technology to make workers more valuable, not eliminate them. Training employees on systems that eliminate one task can free them up for another, increasing their value to the business.
“It usually changes job descriptions more than getting rid of employees,” Babycos said. “Instead of somebody doing something the software can take care of, now they are doing a job the software cannot handle.”
Employers should also ask employees about the challenges of their jobs. Not because it’s touchy-feely (although it can help employees feel more appreciated), but because they are on the front lines. Their observations about customer behavior can help make a business more efficient.
For job seekers, more skills can often lead to more pay.
“Job seekers can look at areas they need to improve. The tools and technology they need. Maybe they need to refresh certifications or get new certifications so they are more employable,” Babycos said. That could mean taking a class at a community college or online or through the New Mexico Department of Workforce Development.
NMWD’s website (https://www.nnmworkforceconnection.com/job-seekers/#) has lists of resources and job search filters that can help match skills to positions.
Individual efforts are important, but it’s going to take a community effort to improve the quality of life throughout the community.
“For the best results, all the industries need to be involved. The challenges in the community stem from a lot of different problems. One single sector can’t fix that,” Babycos said. “I would suggest that everyone get together and create a planning document...It would need to include research and input from key community members and organizations. There is not a quick and easy solution to a holistic approach.”
By Holly J. Wagner
Sun Correspondent
