Employers are paying up to address labor shortages

[riversedge]

Source: axios




2 hours ago - Economy & Business



Employers are doing what they have to do to address persistent labor shortages: They’re offering more money.

Why it matters: The reopening of the U.S. economy is fueling demand for goods and services. But businesses have struggled to meet that demand because current pay rates aren’t attracting the qualified applicants that employers want.

By the numbers: The June jobs report on Friday showed average hourly earnings were up 0.3% month over month in June.

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What they’re saying: "Getting workers back to the job site has not come cheap," Wells Fargo senior economist Sarah House writes. "Employers have had to pony up in industries where shortages have been particularly acute."

Lower-wage industries, like leisure, hospitality and retail, which combine to employ 30 million people, reported strong gains.
Leisure, hospitality and retail accounted for 49% of the 850,000 jobs added in June.
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Read more: https://www.axios.com/wages-rising-labor-shortage-b7b6bed0-1113-4428-8765-963fd4ca5051.html?utm_campaign=organic&utm_medium=socialshare&utm_source=twitter

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slowly but surely--employers need workers and workers need a living wage.

Link to tweet

?s=20


Data: U.S. Department of Labor and Wells Fargo Securities; Chart: Axios Visuals

[marble falls]

1. Any job worth hiring for is worth paying a fair living wage.

[Probatim]

2. Looks like the laws of supply and demand still apply. n/t

[rickford66]

6. Finally

I remember learning about labor unions in grade school. The public need to be educated.

[IronLionZion]

3. Interesting to see retail wages going up

since there were so many articles last year about retail's imminent death.

[Roisin Ni Fiachra]

4. I live outside of a tourist area, and the spike in housing costs

has driven workers out, despite abundant jobs and higher wages. Most of the surrounding area is National Forest, where no homes can be built.

Rich people fleeing cities/populated are buying up properties being sold by folks who lost their jobs due to COVID. They are also building new homes at a mind boggling rapid rate. Rents have skyrocketed in towns where most service workers live, 20 or more miles away. Rich people have also bought up many houses that they use for vacation rentals for tourists, charging tourists astounding rents per week. Many homes lie vacant, as second homes for the wealthy.

The only fast food burger joint is in desperate need of workers, and is offering $14 per hr for burger flippers. Restaurants and coffee shops have temporarily closed or cut hours at times due to staffing shortages. Every hotel has help wanted signs out.

5 years ago, rentals were available for $600/month. Now, workers are lucky to find a rental for $1200.

In order to get into a rental, workers need to undergo credit checks that only Mother Teresa could be qualified for.

If wealthy communities want a sufficient labor force, higher wages are not enough. Affordable housing is necessary as well.

[cinematicdiversions]

9. $14 an hour is still ac very low wage for a tough job. NT

[GB_RN]

13. Rent Where I Live Is Also Astronomical...

Compared to 20 years ago...with wages not having grown commensurately. And yes, credit checks are required, too. But as bad as rent is, houses are worse. New houses are going for $350k+ in pre-planned subdivisions. There's also nothing affordable in terms of "entry-level" housing. I've heard anecdotal stories from real estate agents about people relocating here with businesses to the RTP (like Apple, etc) who think housing here is ultra-cheap, and pay asking price for existing housing, no questions asked, which just keeps prices elevated.

[Farmer-Rick]

5. Rose by 0.3 percent

That's 2 cents for federal minimum wage jobs.

Not sure it is a a trend or a blip. Not much of a change either way.

[malthaussen]

7. Aw, do they have to? Can't they call out the Army or the Pinkerton men? n/t

[barbtries]

8. let the CEO take a pay cut.

it's ridiculous to continue forcing people to scrape by without a living wage no matter how much they work. and cruel.

[GB_RN]

14. That's What Dan Price Did

He's the CEO of Gravity Payments, an online payment processor. He took a million dollar payout, so his employees could make, minimum of $70k per year. He rages at the current system where CEOs make shittons and employees, who are the backbone of a company, and actually make the company money, don't earn shit. I follow him on Instagram...

[SeattleVet]

25. And Gravity Payments is a VERY honorable company.

A club I'm with (a very small nonprofit) went to them for credit card processing for our events. We hold 2 sales a year. After we told them the expected dollar volume they advised us that we would be better off going with Square, as the difference in charges and fees would be to our benefit. Instead of taking our low-volume business and making us pay, they sent us to a direct competitor.

We've recommended them to others after the good way they treated us.

[GB_RN]

26. Not Often That Happens These Days

Dan Price is a stand up guy...and by extension, his company.

[flying_wahini]

10. Now if they would jump up all those jobs to another 10-15% they could be back

In the game.

[PoindexterOglethorpe]

11. This is an awful lot like the aftermath of the Black Death.

In that, so many people actually died that there was an enormous labor shortage which ended serfdom in western Europe.

I also wonder if other countries are experiencing the same kinds of labor shortages as we are.

[OnlinePoker]

20. Here in Victoria, BC, big shortages in hotel and kitchen staff.

Not sure if the former workers have dropped out of the labour market or gone on to more lucrative jobs in the construction and tech industry. Even construction is having a difficult time filling all the vacancies.

[Tree Lady]

12. Driving on my way home noticed

Sign in cafe I ate at starting wages $16-20$ for all jobs. I am seeing help wanted signs at all restaurants and the ones open with less people the workers are literally running around. I hope bosses gave big raises to regular staff so new people not making more.

By the way sign was in Crescent City northern CA on coast a bit depressed city that is a great wage here.

[Javaman]

15. just make sure you read the fine print when you sign that job app.

they could get you in the door with a higher wage but then pull some bullshit that it has a twilight clause.

[OldBaldy1701E]

31. BINGO!

Just wait and watch. A vampire always sucks on something else... never his own veins...

[Javaman]

16. still amazes me how a business model exists on paying your workers the least amount possible

is a good way to keep employees.

same with restaurants being allowed to pay sub minimum wage based upon employees making tips to survive.

[roamer65]

17. They will find out the same that Henry Ford did in 1915.

Well paid workers can then afford the products and services they deliver.

[OnlinePoker]

21. And then the Dodge Brothers screwed him on that.

They took him to court and won that the job of management is to maximize profits for the shareholders, not act as a "charity" for the workers (paraphrased from a possibly faulty memory).

[MichMan]

23. That's not why Ford implemented it.

[roamer65]

24. Still had that effect regardless.

Intended or not.

[The Jungle 1]

18. A wallfart in my area has a sign out 14-16 starting wage.

[Cryptoad]

19. That's a Bitter Pill for the Greedy SMall Biz,,,,

[SWBTATTReg]

22. Ah, the sweet smell of supply and demand...finally actually stepping in and taking ...

priority over gop demands that workers return to work (cutting off their COVID benefits across a wide swath of the US to try and entice workers back to work). But I think more significant events are happening that COVID 19 unleashed. With the shut down of so much of the US in many areas, I suspect that many people moved elsewhere in the US to where jobs were better paying, the environment was more safer, and workers hunting for such jobs have more chances in getting those better paying jobs.

Thus, more workers will be available in better economic areas of the US (better pay already enticed workers to come), and thus, more economic activity ensues in that particular area (usually a city/urban area, w/ some exceptions of course), leading to more and more economic activity, rinse and repeat, rinse and repeat. Increase the velocity of money in an area, more money flows into that area.

You can tell it's working as GOP governors are trying to entice their remaining populations to mask up, to vaccinate, but I fear it's too late for them, they are left behind as the rest of the US steam rolls over them, safely vaccinated, and better pay too.

[TexasBushwhacker]

27. I have a friend who's worked at Walmart for over 15 years

He has Asperger's and doesn't like to make eye contact, but he works his ass off as a stocker. He has a well deserved vacation coming up and has already made plans for it. They asked him to postpone it until they could "hire more people".

Walmart's hourly rate isn't bad, but few of their full time workers get 40 hours on their schedule except during Christmas shopping season. The average is only 34 hours a week.

[BigmanPigman]

28. Do the 34 hour workers get benefits?

[TexasBushwhacker]

29. They offer health insurance to anyone working over 29

hours a week. I don't know how much it costs the employee, but it has a really high deductible. My friend had to pay $2600 out of pocket for a colonoscopy.

[BigmanPigman]

30. That's better than I expected, actually.

[Javaman]

32. colonoscopy should still be covered under the affordable car act.

as preventive care.

I had to go get one 5 years ago and it was completely covered

[TexasBushwhacker]

33. The insurance wouldn't cover it because he's under 50

His doctor wanted him to get it because his 38 year old sister was recently diagnosed with Stage 3 colon cancer.

[Javaman]

34. that sucks. sorry to hear that. :( nt