JULY 2019 • FOGHORN 5 LETTER FROM THE EXECUTIVE DIRECTOR John Groundwater lationships with U.S. maritime academies as a means of attracting qualified potential employees to the U.S. passenger vessel industry. While formulating this strategy, we learned that cadets at many of these academies knew very little about opportu- nities in the U.S. passenger vessel industry. We found that many of these students were very pleased to learn that they could pursue a career in the maritime industry and still return home at night at the end of their work shift as opposed to spending months at sea. Likewise, we found that several of these maritime academies offer degrees in business management pursuits, which prepares cadets for shoreside careers in maritime industries. In 2018, we were pleased to add the Maine MaritimeAcademy and the Massachusetts Maritime Academy as PVA members. Both of these organi- zations immediately became active participants in PVA region meetings and the PVA Annual Convention at MariTrends. PVA vessel operators and maritime academy personnel quickly developed relationships and identified ways in which they could work together in the future. The net result is a long list of maritime academy cadets who are now scheduled to do internships with PVA member companies this year. I am also very pleased to report that last month, the State University of New York (SUNY) Maritime College has joined PVA. As you make your hiring and internship plans, I encourage you to factor in these PVA member academies and I encourage you to contact the following individuals to discuss how you might work together in the future: Captain Joe Curtis Director of Career Services and Cooperative Education Maine Maritime Academy 1 Pleasant Street Castine, ME 04420 207-326-2276 joe.curtis@mma.edu Ms. Maryanne Richards Director, Shore-side Career Services Massachusetts Maritime Academy 101 Academy Drive Buzzards Bay, MA 02532 508-830-5039 mrichards@maritime.edu Hiring and the Tight Job Market A continuing strong U.S. economy is pro- pelling growth in many domestic markets including the passenger vessel industry. Over the last several years, we have seen increases in the construction of new passenger vessel vessels along with investments in upgrading existing vessels. We have also seen new vessels and ferry routes added such as the new Potomac River Water Taxi in Washington D.C. and Kitsap Transit in Bremerton, WA. All of this expansion calls for greater numbers of employees aboard vessels, in shipyards and for marine manufacturers and suppliers. But the challenge is rooted in an ongoing high unemployment rate, which experts say will continue for some time now. In April, 2019, the Bureau of Labor Statistics (BLS) reported an unemployment rate of only 3.6 percent, which is the lowest unemployment rate since 1969. The BLS also reported that in May non-farm employment increased by 75,000 jobs, bringing the 2019 average new job creation to 164,000 jobs. While hourly earnings rose only by 0.2 percent in May, the BLS estimates that there has been an overall increase of 3.1 percent so far this year. The current 50-year low in unemployment very simply means more opportunities for employees and tougher hiring conditions for employers.At the same time, the BLS has forecast the retirement of approximately seven million baby boomers in the workforce. The BLS further predicts that many of these individuals will actually choose to stay in the labor market longer, even after taking Social Security and other benefits. The cause is longer life expec- tancy and a variety of financial factors that will drive the need for them to continue working. The BLS indicates that more than 40 percent of these individuals were previously in management, professional and other related occupa- tions. The inference is that these individuals will have substantial skill-sets to offer employers after they retire. Many of you have read FOGHORN columns written by passenger vessel industry expert Bob Shaw. In several of his articles, Bob emphasizes the value of hiring employees from the ground floor and letting them grow with the company. He points to numerous successes in the passenger vessel businesses that he has lead where junior employees become strong leaders and managers in future years. Along these lines, the Passenger Vessel Association (PVA) has set as one of its strategic goals to develop re- EXECUTIVE DIRECTOR, CONTINUED ON PAGE 42 In April, 2019, the Bureau of Labor Statistics reported an unemployment rate of only 3.6 percent, which is the lowest unemployment rate since 1969.