US jobs are coming back but there is a serious shortage of talent


The two landmark industrial policy packages passed by the US Congress in August ensured the flow of billions of dollars into the semiconductor and electric vehicle (EV) manufacturing sectors. The CHIPS and Science Act committed $39bn for semiconductor makers while the Inflation Reduction Act included $20bn in loans for EV manufacturers.

However, there is a possibility of supply bottlenecks in these industries. Austin, Texas is witness to such. Tesla moved their headquarters to Austin and opened a ‘gigafactory’ in April. Samsung is constructing their $17bn semiconductor fabrication plant in nearby Taylor. The CEO of the Austin Regional Manufacturers Association (ARMA), Ed Latson, says, “You could legitimately see $80bn invested in semiconductor manufacturing in the next 15 years. And on top of that, to go from no major automotive presence to being the headquarters of the top EV company in the world; it’s a pretty extraordinary leap.”

One major problem faced by these projects is the scarcity of talent. This problem is not only common to Austin. The CHIPS Act will create 40,000 to 50,000 job vacancies in semiconductor fabrication plants across the country. Every job created by Tesla has given rise to four jobs in the local supply chains. Both of these industries have a dire need for middle-skill roles.

Tesla and Samsung have created apprenticeship and training programs with the Austin Community College district. This will make a difference where previously a four-year degree was required to enter the field. These workforce development programs in Austin will create a good local skills supply.

One big problem new workers will face upon arrival in Taylor will be the intense competition for housing. Housing prices have risen by 36% in one year alone in the five-county region. Williamson County (where Taylor is) shows the highest price hike from 2020 to 2021: 43%. Housing affordability will be a great issue for the workers, even though Austin is more affordable than places like the San Francisco Bay Area and Greater Boston.

With the high money flowing into the trades of EV manufacturing and semiconductor fabrication, more areas of the country are moving to the playing field. Though these places have lower housing prices, their technological prowess is lower than that of Austin.

By Resume Mansion



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