Labor shortage, what in bloody hell is going on? (loans, expenses, real estate)
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In my area the labor shortage is so bad that it is affecting operational sustainability.
Where I work we used to get 100-200 apps for ONE position. Now we struggle to get 10, many postings get less than 6 when they're open for a month+ and half are not qualified.
The businesses in my area cannot stay open, the managers & owners are basically doing everything. Some retailers, e.g. the Walgreens near me, simply said they are no longer open evenings or weekends. 8:30-5:30 M-F: it's the manager, one worker and one pharmacist running the whole store.
It appears to be a problem in all sectors but somewhat less acute in IT.
We are now 6+ months out from the "free money" spigots being turned off. Where the hell did everyone go?
Last edited by redguard57; 03-12-2022 at 02:11 PM..
Employers with business models that rely on a limitless supply of warm bodies are just struggling to adjust to an employees market. The concept of creating a job that’s actually good is lost on them. Their jobs, benefits/pay offered suck, and they aren’t willing or able to offer what it takes to motivate people. The **** I’ve heard about how lower paid workers are treated in the last 10-15 years is absurd. “Just in time scheduling, ect).
People can make money now from anywhere on the internet. The gig economy is enormous. There’s a mass exodus of workers retiring. Covid killed many. Many are leaving the workforce to raise and care for children. Many made easy money in real estate, or investing, or inheritance in the massive ongoing wealth transfer and don’t need to work.
There’s also a pandemic raging that scares many still, and has effected what people do, how we work, ect.
There’s also the gap blown in the workforce, because there was a large amount of time during the Great Recession where employers felt they could just hire exp people and not train anyone up. Well, now as people retire, there’s few trained up and ready to step into these roles. These companies are going to pay a premium for middle aged talent that actually did get training at that time, since you can’t just create seasoned professionals on demand.
Then we have a college education system that malinvests training everywhere and creates people for which there is no work, never was, and never will be. Loans also make it so young people can just live off loans while in college, which is another way the lower end of the workforce has pressure put on it.
In other words, like any typical engineering disaster, it’s not 1 or 2 factors. It’s the cascading effect of many failures that make the situation critical.
Last edited by Thatsright19; 03-12-2022 at 01:17 PM..
I think remote work is also hurting another subset of trash employers who were used to having “captive” workers in smaller metro areas or off the beaten path large employers. And now those employees can get remote work. Ie another issue of companies maybe having to provide pay and working conditions that don’t suck. Companies want one sided economics.
And as far as what you said about business owners stepping in to do mundane jobs. That doesn’t exactly speak much to their business acumen and valuing their own time. The opportunity cost of someone who should be running the business or out generating new business instead washing dishes or something is enormous. Maybe they should increase their pay scale and get workers.
In my area the labor shortage is so bad that it is affecting operational sustainability.
Where I work we used to get 100-200 apps for ONE position. Now we struggle to get 10, many postings get less than 6 when they're open for a month+ and half are not qualified.
The businesses in my area cannot stay open, the managers & owners are basically doing everything. Some retailers, e.g. the Walgreens near me, simply said they are no longer open evenings or weekends. 8:30-5:30 M-F: it's the manager, one worker and one pharmacist running the whole store.
It appears to be a problem in all sectors but somewhat less acute in IT.
We are now 6+ months out from the "free money" spigots being turned off. Where the hell did everyone go?
WMT,TGT,AMZN and others are raising wages and adding more benefits to their workers.
TGT pays $18-$24.
AMZN warehouse $28.
Some cant go to work as they need to care for their kids.
Some are in the hospital.
Some have become UBER/LYFT/DASH drivers.
Had you bothered to read any of the many reports published by the Bureau of Labor Statistics since the mid-1990s using your hard-earned tax dollars that explain quite clearly that 2/3rd of all jobs "created" (snicker) would be "created" by retiring Boomers, you wouldn't be asking the question, especially since Boomers have accelerated their retirement, meaning they're bowing out a FTR instead of working until age 70 like they had planned.
Add to that the fact that some would rather quit than get vaccinated.
Also, some employers doom themselves with their stupid policies, which is why my sister quit her job.
If one person tests "positive" and even though that person never shows any symptoms, the whole team, group, shift is quarantined.
My sister worked 4 1/2 weeks out of the last 3 months of the year. And then she quit and got another job with a more intelligent employer, while her old employer is "suffering" because people are quitting and they can't find replacements.
And then, there's the phenomenon that first manifested during the 1990 Recession and was much studied during the so-called Great Recession.
People went back to school to get certificates or degrees to get better jobs, especially "recession-proof" jobs and even when they economy got better, they chose to continue the education they started.
During the unnecessary and futile STUPID-19 lock-downs, there was little to do, except for things to do on-line, like take classes, so many are still pursuing degrees.
You might not be aware of this, but the last 3 "stimulus" packages enacted provided benefits for people attending school full-time, part-time and even less than part-time with lump sum payments of $1,000 to $2,000, which would either defray tuition costs, or help with living expenses.
Another factor is the underground economy. When you can make a few hundred a day selling drugs, or your own body, you're not likely to be applying for a 9 to 5.
I think remote work is also hurting another subset of trash employers who were used to having “captive” workers in smaller metro areas or off the beaten path large employers. And now those employees can get remote work. Ie another issue of companies maybe having to provide pay and working conditions that don’t suck. Companies want one sided economics.
And as far as what you said about business owners stepping in to do mundane jobs. That doesn’t exactly speak much to their business acumen and valuing their own time. The opportunity cost of someone who should be running the business or out generating new business instead washing dishes or something is enormous. Maybe they should increase their pay scale and get workers.
They can't.
Where I work we have a shortage in all the salary classes, but it's least severe among the top ranks that pay 80-100k plus per year. Most severe in the unskilled, low-skilled ranks. We have raised salaries for the unskilled jobs from about $13-14 an hour pre-pandemic to $19 an hour now. No takers.
There is a limit what we can do. If we raise salaries for them, we will have to raise the professionals too. Our degreed workers will not tolerate making the same or only a few dollars more than the custodians. At some point we simply can't pay 60k for a 35k a year unskilled job, and certainly not 120k for a 55-75k middle class entry career. We just can't. We can push the high end of those salary class ranges but that is the best we can do.
The job is worth what it's worth. We are not responsible for the out of control housing market and goods inflation for things like cars. Living wage for an apartment skyrocketed from about $18 an hour to $27 practically overnight. The thing is that 30s-50s per hour is what our PROFESSIONALS make. It would be a wage spiral start paying custodians and the like $27. The degreed pros will want 60+ in that context. I don't blame them but it is not feasible to pay them double what the labor market says the job is worth.
But in the meantime, they are all talking about strike and/or walkout. I don't blame them honestly. Contract negotiations are going to happen soon. We are already planning to basically shut down within the next 12 months if this doesn't get better. An institution that has been open to the public for over 70 years is going to stop functioning because the housing went out of control.
Last edited by redguard57; 03-12-2022 at 03:55 PM..
Far too many grew fond of sitting at home rather than going to work. I have seen on a website or two where people are looking for the best deals in charities and public assistance, but that isn't new, just more people thinking along those lines.
If one compares a lower wage (it was $10 an hour about 10 years ago), and public assistance that includes food stamps, Section 8 housing, Medicaid, a check one doesn't have to work for and other assistance (child care, free job training, free cell phone, etc.), the smart person with no work ethic can do about the same to better by staying in bed all day, and partying all night.
Cut the free goodies for those capable of work, and there is your work force!
Where I work we have a shortage in all the salary classes, but it's least severe among the top ranks that pay 80-100k plus per year. Most severe in the unskilled, low-skilled ranks. We have raised salaries for the unskilled jobs from about $13-14 an hour pre-pandemic to $19 an hour now. No takers.
There is a limit what we can do. If we raise salaries for them, we will have to raise the professionals too. Our degreed workers will not tolerate making the same or only a few dollars more than the custodians. At some point we simply can't pay 60k for a 35k a year unskilled job, and certainly not 120k for a 55-75k middle class entry career. We just can't. We can push the high end of those salary class ranges but that is the best we can do.
The job is worth what it's worth. We are not responsible for the out of control housing market and goods inflation for things like cars. Living wage for an apartment skyrocketed from about $18 an hour to $27 practically overnight. The thing is that 30s-50s per hour is what our PROFESSIONALS make. It would be a wage spiral start paying custodians and the like $27. The degreed pros will want 60+ in that context. I don't blame them but it is not feasible to pay them double what the labor market says the job is worth.
But in the meantime, they are all talking about strike and/or walkout. I don't blame them honestly. Contract negotiations are going to happen soon. We are already planning to basically shut down within the next 12 months if this doesn't get better. An institution that has been open to the public for over 70 years is going to stop functioning because the housing went out of control.
From what I've been told, $19 per hour in Oregon is basically minimum wage once you factor in the COL. That would explain why you have no takers. If your business model only works with people accepting rock bottom wages, then you have an obsolete system that in today's COVID 19 era, will force you out of business. Only those businesses that can survive while paying competitive wages will thrive. And that's probably for the best.
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