report" with tyler mathisen and susiegharib. welcome to "nightly business report." on this labor day what better topic to discuss than the job market, a key issue for the economy, and one that is the focus of both wall street and main street. and while the job market is getting better, it's still facing a number of issues, from wage growth to getting the long-term unemployed back to work. so, tonight we'll tackle those challenges and look at what some companies are doing to hire the skilled workers they need. we'll also meet a couple of entrepreneurs who took their passion, mixed in hard work and turned their bright ideas into successful businesses. we start tonight with the

state of the american job market. the unemployment rate currently stands at 6.2%, down from a high of 10% back in 2009. despite making progress, the federal reserve chair said "there is more that needs to be done." hampton pearson has more. >> reporter: the job market is improving, but there is still lots of work to do. janet yellen called the employment picture hazy, on her short list of concerns, reducing long-term unemployment and increasing the prospects for higher wages for those with jobs. >> chair yellen has made it clear, she wants to see wage gains. until she sees wage gains she won't pull the trigger on raising rates in the economy. >> headline unemployment at 6.2% is down more than a full percentage poi in the last 12 months. while the economy has regained the nearly 9 million jobs last

since the recession, millions of americans are working for far less money. the two sectors that lost the most jobs, manufacturing and construction, where the average pay is $60,000 a year, are still about 3 million jobs short of a full recovery. job growth accelerated in the restaurant, hotel and health care sectors, according to an mi economic analysis. a lot of people are saying what do you mean an improving economy? what do you mean the recession is five years in the rearview mirror? my paycheck is flat. >> reporter: figuring out how much flack there is in the job market and getting those not participating back in the game are the biggest challenge. >> the biggest losses have been in young people, not just high school students, people in their 20s, but sort of the really prime earners out there and people it their prime of their

career, the 35-year-old to 44-year-olds. that's where you have to bring people back in again. >> here in washington we know employment is half the mandate for the federal reserve, heading into the fall elections, expectations for action on major jobs initiatives from congress or the white house have never been lower. for "nightly business report," i'm hampton pearson. we turn to joe davis to talk about the american job market. he's the chief economist at vanguard, the giant mutual fund firm. nice to have you with us on this holiday show. >> nice to be here. >> what are you expecting this friday when we get the labor department reporting the latest -- the employment report? are businesses hiring and are they hiring pore than we've seen over the past couple of months? >> well, i actually think so. i think we'll see continued strength. we have seen that for several months now. in fact, particularly relative to the past year. the u.s. labor market is

tightening, though it is far from tight. the momentum that we see not only in the pace of job creation, but also the breadth of jobs. more industries are adding jobs than in the past. that sums up to the fact that we will see modest but strengthened, strong momentum in the labor market. >> the number that everybody focuses on is the unemployment rate. right now it's 6.2%. if the momentum continues, as you're saying, where do you expect that number to be by the end of the year? >> i think the main expectation is around 6%, if you ask the federal reserve and other economists. the risk is that the unemployment is below 6%. the biggest reason for that, if we continue to add jobs at the pace we have been in the united states, it's unlikely we will see the rapid increase in labor force that would be needed to offset the gains and keep the unemployment rate above 6, by

the end of the year, the unemployment rate is at the high 5% range. >> the other frustration is that "people say the economy is improving, well, i don't see it in my paycheck." wages have not moved. do you see any change in that? will we see peoples paychecks growing a bit? >> i think two points. it's a fair point. wage growth, as we all know, has been around 2% on average for the past four years, despite a rapid decline in the state unemployment rate. we are seeing small changes, not so much in industries rapidly increasing pay, they're small in number, information technologies is often cited as the example. we are starting to pick up. those industries with the flattest wages or no wage growth at all, even cuts in pay an hour like construction, retailing, those industries are gravitating towards 1%, 2%.

so we would expect a modest wage growth from the 2% level to say 2.5% to 3% next year. that's important. the federal reserve will be reluctant to raise rates until they see the wage gains. >> now that you bring up the federal reserve, one point that keeps getting brought up, a lot of the problems in the job market are structural. those jobs are not coming back. this is the new normal. others say, no, this is an economic cycle, once the economy gets better, the jobs will come back. where do you stand on that? that's a critical question and answer that will determine what happens with interest rates. >> totally agree, susie. we are right down the middle. it's not a short cut. there's clearly cyclical elements. if we see stronger demand, higher wage gains, some americans who are currently out of the labor force will return. there's clearly a structural impediment, it's not just demographic forces that have

kept labor force participation down, it's skills mismatch, the rise in disability which have not returned to follow or returned to labor force in such rapid pace. as we calculate the numbers, it's roughly 50/50. the good news is that for those who are savers or investors, it means less slack in the economy, slightly higher pressure on wages for those who do have jobs. the down side is the potential growth rate for the economy is weaker than some would have thought a year or two ago. >> tough situation for out of work americans. thank you very much, joe, for coming in and giving us your views. >> thank you, susie. still ahead on the program, what companies across the country are doing to make sure they can find the right workers with the right skills.

it's a big problem, some employers want to hire but can't find the right workers. the problem, a lack of skilled labor which threatens the company's growth and profitability. but some are figuring out ways to sof that problem. mary thompson traveled to several companies in north carolina and south carolina and minnesota to find out where the jobs are. >> reporter: business is booming at timco aviation. the firm provides faa required maintenance to commercial, cargo and military planes. it's benefiting from the strong growth in the aviation industry, growth threatened by a lack of skilled workers. >> we are at capacity. if we were to expand t would be an issue of getting enough work force in here to work the aircraft. >> reporter: kip is timco's vice president, he said to meet

demand and replace the 30% to 40% of its work force facing retirement, they would need to hire 350 workers. they would need to inspect, repair and put these planes back together again and need to be faa certified. that's a process that takes two years. to ensure a steady stream of workers, timco's partnered with gill ford community college to get the word out about jobs in the industry, starteding with talks aimed at kids as young as fourth and fifth grade. >> we try to spark that interest early when people are open to anything. >> reporter: audrey floyd chairs the aviation program at gilford along with the outreach. there is a four-year aviation program at a local high school. one student interned at timco last summer and is shadowing an engineer this year. the experience helping to cement

his decision to become an aviation engineer. >> it's more interesting now that i've seen in depth and been in the cockpits of airplanes. >> reporter: a third way gilford funnels workers to timco, a two-year program providing graduates with the faa certification they need to work on the planes. >> i change oil filters, i clean and lube cables, remove and replace parts. a bit of everything. >> reporter: for timco, getting more people who can do everything is the one thing it needs to keep growing. two years ago, j.w. schlum had a problem. the maker of luxky goods and accessories couldn't find the workers it needed to face the growing demand. >> it began to worry our company. at one point it was strangling growth. we had to slow down sales as a result of that. >> reporter: it's a common problem.

a survey by the manufacturing institute says 82% of u.s. manufacturers have skilled jobs they can't fill. vacancies that are growing now that rising labor costs in asia are encouraging many to bring work back home. work is what larry was looking for when he landed in a homeless shelter after 15 years of a checkered employment history. >> i wanted some kind of income. some kind of steady job. >> reporter: he found one at j.w., after a non-profit directed him to an industrial sewing class at the dunwoody college of technology. the program was designed at the urging of a manufacturing group, known as the makers coalition it promotes the trade of industrial sewing and hires apprentices. >> companies didn't want to focus on training, they wanted to focus on being productive. >> reporter: the six-month course costs just over $4200. the course launched last year,

but only after regional firms it was decided would need 90 new hires over the next 6 to 18 months and more over the next seven years as retirement claims 50% of the work force. the first class hitting snags. the vice president saying the new hires needed more work. >> the first three we brought in from the program, we really saw a need to have some highly skilled, more refined skills for industrial sewing for leather. >> reporter: dunwoody altered the course. students now spend more time at the machines, less time on the books. it's placement rate is 90%, graduates earn an average hourly wage of 13.46. but the new skills and job are priceless. >> it makes you feel proud when you see a finished product. it looks real good. you know you did your best on it. everything is nice, neat and straight. it's guaranteed for life. >> reporter: a life improved by an industry stitching a work

force back together. at the bc summer nuclear station, a massive derrick splits the summer sky. it's part of south carolina electric and gas's $10 billion project to build the first two nuclear reactors in the united states in 30 years. at its peak the project will employ 3500 construction workers, but they're looking to hire a permanent work force for another big job. >> we will bring on about 800 total workers to support the staffing for operating plant. >> reporter: it will be three or four years before the reactors come on line. sce & g's chief nuclear officer says hiring started five years ago. >> we wanted to make sure that we brought in the right people at the right time. initially we'll be doing a lot of training and instruction. so we hired instructors first. >> reporter: those instructors train nuclear operators at a simulator built on the 240-acre

site, the start of ongoing training these employees will receive throughout their careers. sce & g hired more than half of the 800 workers, but still needs engineers, mechanics, chemists. the starting salaries in this industry will be about $52,000. they wouldn't say what it pays, only that it's competitive and that it has a full benefits package. the company is finding workers from the industry, military and four-year colleges, while partnering with local schools to create a pipeline of trained workers. one of those schools is midlands technical college. five years ago midlands president sonny white said it codeveloped a two-year nuclear program training workers to work here and abroad. >> they can go to work anywhere in the world where the nuclear regulatory commission has oversight. >> reporter: the majority of midlands nuclear students are adults, with many looking to change careers.

like 37-year-old kimberly hall. the chemist left a job in the drug industry, lured by her fascination with nuclear energy's potential. >> since i am a scientist by nature, it's just a process that you can take, uranium and power a city. >> reporter: the hope of landing a steady job brought 25-year-old wesley mcclean to midlands. he now works as a nuclear mechanic. >> i'm not sure how far up the ladder i'll climb. i plan on spending 30, 35 years with the company. >> reporter: mcqueen recharging his career by taking the nuclear option. >> mary thompson joins us now. those are terrific and inspiring stories. in the last one they were saying they wouldn't say what they're paying, but that there's a good benefits package. are you finding if you're skilled and in such demand that

wages are going up? >> it depends on two things, industry and geography. certain industries are growing like gang busters. there you see some wage pressure again because demand is so great for the services. the other factor that depends on wages, higher wages is geography. if you're operating in an area where there is a large labor pool, there's no wage pressure whatsoever. you can find the workers that you need and hire them. if the labor pool is small, some companies say they have to pay up. >> it's a case of simple supply and demand. i also was wondering, if you were researching these stories, what did you find in terms of peoples per sep shceptions of ws skilled mean? >> skilled means not only are you able to fix things, fix a machine with a hammer, wrench, all the other things, but also you need to know how to fix technology. not only do you need to know the nuts and bolts of the machines you're working on but also how the software that runs these

machines works. it's nuts, bolts, reboots and crashes, that's what you need as a skilled workerment. >> i'm sure you hear this all the time, but on this show we get so many ceos who come on, and the big worry is where will we find the workers of tomorrow. they're concerned about it. but these stories you were covering of a company here, company there that found a solution. what are you learning in terms of broader plan of action from the highest levels of washington so we have a national policy? >> apprenticeship programs, more connection between businesses and community colleges and a change in mindset in america. these are not your grandfather's manufacturing jobs. they're in his enicer places, ts a career path. >> mary, thank you very much. and coming up, from a kickstarter campaign to the super bowl, how one young entrepreneur turned her bright idea into a growing business.

that's next. for many americans, starting a business sometimes turns into the best job ever. we wrap up tonight's special with a look at two successful entrepreneurs. we begin with a physician who found a way to improve the health care experience for all the complains about the hassles of seeing a doctor to waiting and waiting in the emergency room, one entrepreneur put together a treatment plan to bypass that, helping both doctors and paitients in the process. >> you say, hey, i have a sore throat. >> reporter: j. parkinson is a doctor. his patient, our health care system.

>> everybody knows health care is broken and inefficient rv that's why he started sherpa, it provides access to doctors 24/ online and on the phone. they can answer questions, give advice, diagnose problems, prescribe medications, and speed the referral process. it's paid for by employers. more than 100 companies are paying about $30 a month per employee to offer sherpa as a benefit. >> nobody has ever said this is a bad idea ever. >> reporter: certainly not martin restol. >> i woke up one morning and felt deathly ill. >> reporter: he works at a new york tech start up. he has a primary care physician but calls sherpa instead. >> in less than an hour, i had a prescription called in to the pharmacy down the block and a referral to a specialist who i saw later that afternoon. >> reporter: better yet, communications with sherpa don't generate insurance claims. parkinson says the service is reducing claims by about 70%.

>> the company all of a sudden looks healthy so their premium increase is much less. >> reporter: it's not the first time parkinson mixed medicine with technology. in 2007 he took to the streets of brooklyn. he was carrying about $280,000 in student debt and couldn't afford to rent office space so he began texting and e-mailing with patients. his story attracted national media. >> half my day was spent answering reporters questions, book offers, movie offers. >> reporter: instead of trying to become a star, he dedicated himself to improving the health care experience for patients and doctors. >> the doctor has a hierarchical position, and this puts the patient in charge. >> reporter: ida is a staff doctor at sherpa and earns more than she might as an average primary care physician.

>> it's kind of moving medicine into an electronic age where most doctors don't e-mail with their patients. that's -- who doesn't e-mail? >> reporter: so far companies are using sherpa in new york, new jersey and california, with illinois coming on board soon. white ops is a new york cybersecurity firm. it's coo stumbled across sherpa and is a big believer. >> we started talking about what the ideal health care program would look like. we didn't think it existed. i started googling around, i came across sherpa. it was what we described to each other as what we like. >> reporter: he thinks having a doctor on call it making his company for efficient. his employees don't need to see a doctor in order to communicate with one. that's what jay parkinson calls process. >> to me, the future of primary care looks a lot like what we're doing here. >> sherpa says it has added 20 new companies since we first aired that story back in july.

it's also expanded into illinois and now plans to be in six more states before the end of the year. our next story is about a disruptive innovation in the world of barbie doll. the pink toy aisle is going through a dramatic transformation because of one woman who wants to inspire future generations of female engineers, one toy at a time. tyler has her story an her bright idea. >> debbie sterling didn't play with erector sets when she was growing up in rhode island. in fact, it was quite a surprise when her high school math teacher suggested she study engineering in college. >> i didn't know what an engineer was. >> reporter: she learned at stanford that men dominate the engineering field. sterling says only 11% of the u.s. engineering force is female. a sore spot that got her talking with a college buddy, another woman who mentioned playing with her brother's lincoln logs and

legos as a child. >> at that moment it hit me that why were those her brother's toys? why didn't i get those as a girl. >> reporter: so she started reading about cognitive development and came up with an idea. >> girls have strong verbal skills, they love stories and characters. what was missing from the construction toys on the market, there was no why are we building this roller coaster? who is riding on it? where are we going? who is it helping? >> reporter: the verbal hook is a book, starring goldie, drawn by sterling herself. and why not? her grandmother, sterling studivan it was one of the first woman cartoonists in the '50s. toy pe toymakers were not buying her idea, they say they were stuck in time. >> the message kind of over and over again was looking at me with pity, saying, oh, this girl

doesn't know that construction toys for girls don't sell. suddenly i'm walking around like i'm in the twilight zone. i feel like i'm in the '50s. >> reporter: to prove them wrong, sterling and some friends tested prototypes all over the san francisco bay area. >> we got it! >> you learn they're so much more complex than what the pink aisle makes them out to be. >> reporter: the pink aisle, princess dolls, makeup kits, play kitchens, and a target for disruption. her message was a hit on kickstarter in 2012 where she hoped to raise $150,000 to make 5,000 units. >> we hit the goal in four days. >> reporter: in a month she raised about 285,000, the first production run, 40,000 units. >> suddenly my phone was going berserk. it was just ding, ding, ding. >> reporter: toys "r" us and ordered, soon, right there in barbie shadow, there was a new kid on the block.

>> it gives me goosebumps to see goldie next to barbie, now girls have a choice. >> reporter: goldie had a makeup by professional artists this year, but her spirit has not changed. >> rosy the riveter, punky brewster, eloise. >> reporter: last november goldie blocks launched this video, it was a one-week video until concerns about the music surfaced, but it helped to sell more toys. >> we shot up to number one and number two best selling toys on amazon. >> reporter: that same week in chicago, sterling was named the rising star inventor of the year by the toy and game industry. an honor for sure. her focus is still on the toughest build of all -- change. >> engineering doesn't have to be this incredibly intimidating math/sciency thing.

we can show girls that engineering changes peoples lyes and it can help make the world a better place. >> earlier this year goldie blocks won a free commercial during the super bowl telecast, it's been growing for a total of four to the mix. that's "nightly business report" for this labor day. i'm susie gharib, have a great evening. we'll see you right back here tomorrow night.

( shutters click ) ( gasps ) do be careful, therese.