Maine: Paper Industry Facing Aging Workforce

According to a story by Colin Hickey for the Kennebec, Maine, Morning Sentinel, paper company executives are losing sleep contemplating that the industry--the largest manufacturing sector in Maine--will have 2,200 workers turn 63 within the next 10 years. "They know paper does not get produced without skilled people."

Unlike some other industries that may be facing such issues, the paper industry's problems are compounded because of perceptions that it is a dying industry:

[Mike] Barden of the Pulp & Paper Association acknowledges that this is the central question the industry faces.

"It is still that public perception (of a dying industry)," he said. "It is trying to overcome that. The reality is I just don't see the industry going away. I think there will always be an industry here."

Bill Cohen of Verso Paper, which has mills in Bucksport and Jay, confirms that the paper industry faces a labor challenge.

"It is harder to recruit, because of the perception that it is a dying industry," he said. "That is one thing we have to overcome. We are not dying; we are continuing to reshape."

Hickey reports on efforts by the industry to raise enrollments in Maine programs that are the principle sources for new recruits.

Source: Kennebec Morning Sentinel "Graying workforce a problem for paper industry" (July 15, 2007)

New England: Aging Workforce Threatens To Stall Economic Development

Northeastern University’s Center for Labor Market Studies has prepared a report showing that New England’s aging workforce could stall economic development and job growth in the future, particularly in Maine, which has the oldest population in the country. According to the report, which was released today as part of The New England Council’s Older Worker Initiative, all of the growth in the Maine labor force over the next decade will come from those aged 55 and older.

“We believe that New England is at a critical juncture. The aging population creates important challenges and significant opportunities for developing strategies to respond to these inevitable workforce changes. We need to develop specific proposals to encourage the active engagement of older workers in the employment market,” [James] McCaffrey [Mercer Human Resource Consulting’s New England Market Leader and member of the Council’s Board of Directors] said. “Retirement regulations – both on a state and federal level – often actually encourage workers to retire early and not return to the workforce. In New England, we could find a significant gap of available employees and skilled worker shortages that ultimately will hinder our ability to add jobs and grow.”

As part of the Initiative, business leaders will meet with public officials to discuss a variety of issues including: pension policies that limit workers’ ability to mix work and retirement income, workforce development programs that do not serve older workers, and the need for the workplace to accommodate an older workforce.

Source: New England Council Press Release (November 14, 2006)