PUBLIC VIEWPOINT Re-Examining Labor Markets

Friday, March 22, 2013

On March 11, John Gore wrote an article titled, “Economic Development Tricky For City Leaders.” In the article Steve Cox, vice president for economic development at the Rogers-Lowell Area Chamber of Commerce, was quoted, “If you work at a retail store, you’re gaining experience, knowledge and a paycheck. A viable retail sector allows worker upward mobility to another job with better pay.”

Annette Bernhardt with the Institute of Education has proven this claim false as early as 1999. The retail sector spends less on training and employee development than any other sector, leaving little skills to take to the open market.

In 2010, the National Retail Federation reported nearly 49 percent of retail employees are 35 or older and Bernhardt found workers do in fact depend on their retail jobs as a longterm source of incomeand employment.

Another common argument is employees can be promoted to management positions within. Bernhardt states, “Firms are also increasingly hiring young college graduates for managerial slots and bypassing workers with years of tenure. In this context, there is a severe constraint on upward mobility, no matter how talented or hardworking the individual.”

Cox was quoted acknowledging that retailjobs are “usually not the best paying jobs in the world.”

They are also accompanied by few benefi ts and unattractive working conditions. Those living in poverty in Northwest Arkansas have increased 40 percent since 2007 making it critical to re-examine the labor markets that are vital to our local economy and if they actually do allow worker upward mobility.

MICHAEL ROBINSON

Springdale

Opinion, Pages 5 on 03/22/2013