Worker Shortage Cause(s)?

[Left Coast]

I keep hearing anecdotally that the reason there is a shortage of workers in low wage/entry level jobs is because folks can actually make more money on unemployment or other forms of public assistance than if they worked.

Is that accurate?

What other cause(s) might there be for the shortage of workers some industries seem to be having? Please cite your evidence.

 

[JustGeorge]

I don't think that's accurate, because my state doesn't give out any extra unemployment, regular unemployment isn't equal to what a person made at their job, and it requires a person be actively seeking a job(and have proof of applications submitted) to receive unemployment.

 

[JustGeorge]

As an extra note, one struggle my state has had is not enough child care available. Many daycares went belly up during this, and there was already a shortage to being with. Many parents are not able to return to work at full capacity because of this.

 

[Shadow Wolf]

I don't think that's accurate, because my state doesn't give out any extra unemployment, regular unemployment isn't equal to what a person made at their job, and it requires a person be actively seeking a job(and have proof of applications submitted) to receive unemployment.

That's what I keep reading. States that ended unemployment benefits did not end their worker shortage.

 

[mangalavara]

I keep hearing anecdotally that the reason there is a shortage of workers in low wage/entry level jobs is because folks can actually make more money on unemployment or other forms of public assistance than if they worked.

Is that accurate?

A friend of mine mentioned yesterday that the previous time he went to a car dealership, which was not long ago, the head guy told him that the salesmen who never made a lot of money have yet to return to work because unemployment pays them more.

 

[Jose Fly]

I keep hearing anecdotally that the reason there is a shortage of workers in low wage/entry level jobs is because folks can actually make more money on unemployment or other forms of public assistance than if they worked.

Is that accurate?

What other cause(s) might there be for the shortage of workers some industries seem to be having? Please cite your evidence.

Based on what I've heard from my daughter, for some reason some employers are kinda treating their employees like crap, which is making lots of people just plain quit. There were some 4.3 million people who quit jobs just last month!

To me, that speaks of a job market where employees can shop around for jobs and if they end up in one they don't like, they can just quit and look for something better.

 

[Shadow Wolf]

Is that accurate?

It depends on one's personal circumstances. Like in healthcare, having state insurance put me ahead of where I'd be at most employers, which is having private instead that sinks me in medical bills. I have frequent appointments, and copays and deductibles can get very expensive.
Amd then years ago, in '12 when I was wrongfully terminated from a job where I put in so much overtime my unemployment check nearly came out to a fulltime check and ahead after gas expenses. It was $360/week (good money for Indiana) and I also managed to somehow get more foodstamps than I could actually use in a month. The unemployment alone was about what I made as a case manager, so nearly any job would put me behind.

 

[JustGeorge]

Based on what I've heard from my daughter, for some reason some employers are kinda treating their employees like crap, which is making lots of people just plain quit. There were some 4.3 million people who quit jobs just last month!

I've heard this, too, but I'm not sure why this is. My husband's been at the same job for about 10 years, and his employer has been insufferable about the last 6 months.

 

[John53]

In Australia the main problem seems to be no young tourists on working visas being allowed in. It's almost impossible to buy frozen vegetables where I live because there's no one to pick them. And the price of fresh fruit and veg has gone through the roof.

 

[Jose Fly]

I've heard this, too, but I'm not sure why this is. My husband's been at the same job for about 10 years, and his employer has been insufferable about the last 6 months.

That's what baffles me too. In this sort of job market, why are employers being like that? For example, one large company my kid worked at actually withheld everyone's first paycheck....just kept them in a safe, for no reason, until the employee bothered to ask. Why? They never said.

I've heard other stories of 10 hour days with no breaks, yet the employer still takes 30 minutes off their time card.....injured employees being forced to keep working....and a host of other things.

It's weird, and I don't really have an explanation for it.

 

[mangalavara]

I've heard this, too, but I'm not sure why this is. My husband's been at the same job for about 10 years, and his employer has been insufferable about the last 6 months.

Interesting. I've heard about this current trend.

In Australia the main problem seems to be no young tourists on working visas being allowed in. It's almost impossible to buy frozen vegetables where I live because there's no one to pick them. And the price of fresh fruit and veg has gone through the roof.

Oof. That really sucks.

That's what baffles me too. In this sort of job market, why are employers being like that? For example, one large company my kid worked at actually withheld everyone's first paycheck....just kept them in a safe, for no reason, until the employee bothered to ask. Why? They never said.

It sounds like the employer is seeing what he or she can get away with, or perhaps testing the employees.

I've heard other stories of 10 hour days with no breaks, yet the employer still takes 30 minutes off their time card.....injured employees being forced to keep working....and a host of other things.

This stuff is genuinely making me wonder what the hay is going on.

Whatever is going on, it is more of a mystery to me than why all the kids' parents were going to bed early on that one episode of The Simpsons where Abe and Homer sold that tonic.

 

[Jose Fly]

It sounds like the employer is seeing what he or she can get away with, or perhaps testing the employees.

Could be. When the employees would ask where their check was, the managers acted like it was no big deal...."Oh, it's here in the safe. Do you want it?"

It made no sense.

This stuff is genuinely making me wonder what the hay is going on.

Whatever is going on, it is more of a mystery to me than why all the kids' parents were going to bed early on that one episode of The Simpsons where Abe and Homer sold that tonic.

Reverse vampires, in cooperation with the Rand Corporation!

 

[beenherebeforeagain]

I'm sure it varies by state and nation, but in Illinois, basic benefits are only for 26 weeks--six months--although that has been extended due to the impact of covid.

 

[Brinne]

I think it's mostly already existent high-turn over rate (especially in retail) exasperated by the economic fallout of the pandemic + just a general increase in general public consciousness of already existing issues in minimum wage/low-wage positions.

 

[Kooky]

I keep hearing anecdotally that the reason there is a shortage of workers in low wage/entry level jobs is because folks can actually make more money on unemployment or other forms of public assistance than if they worked.

Is that accurate?

What other cause(s) might there be for the shortage of workers some industries seem to be having? Please cite your evidence.

I can't speak for the US, but due to extended lockdowns quite a few people who used to work in tourism and the restaurant business switched careers to jobs that weren't in immediate danger due to COVID. These fields don't offer great jobs even under best of circumstances, so I would surmise that a lot of people who already thought about changing careers used the recent upheavals to finally make the jump.

In other words, it's the free market working as intended.

 

[Firelight]

I keep hearing anecdotally that the reason there is a shortage of workers in low wage/entry level jobs is because folks can actually make more money on unemployment or other forms of public assistance than if they worked.

Is that accurate?

What other cause(s) might there be for the shortage of workers some industries seem to be having? Please cite your evidence.

That could be accurate in some situations, but certainly not all. Pandemic govt benefits vary depending on where you live. My state stopped the extra unemployment benefits over a year ago.

Time could be a reason for the shortage. It took time for various businesses to reduce their workforces or completely shut down during the pandemic. It took time for people to adjust to their new situations. It will take time for businesses to come back full swing and for people to adjust again to changes.

Timing could also be a reason. It is the holiday season when businesses hire extra help. So we kind of have a “double” hiring/job availability situation. This creates wage wars. I’ve seen starting wages for fast food workers at $13 hr. Target seasonal help starting at $14-$15 hr. This is $2-$4 hr higher than pre-pandemic wages.

 

[Firelight]

I agree about the grumpy employers. I know whenever I contact any customer service for help, they are grouchy and of little help.

 

[Shaul]

Here are some other reasons the unemployed remain out of work:

1) Increased regulatory price. Employers who otherwise would like to hire see increased mandates and regulatory costs. For example increased costs to comply with vaccine mandates or fear of increased local minimum wage compliance costs. (It isn’t just the wage increase, some locales are seeking huge new paperwork costs)

2) Ageism. Older workers are having difficulties returning to the job market post shutdown. Many are dropping out of the job market by choice or by force.

3) Personal safety. Whether justified or not, some workers fear returning to work and being exposed to unsafe conditions. Notably a fear of Covid in the workplace. Some are being more choosy, seeking jobs that offer remote working, for example.

4) Temporary leaving the job market. An example of this would those that have returned to college during the shutdown after losing work during shutdowns.

5) Job search burnout. Some have been searching for a job since the beginning of the shutdowns last year. That’s over a year. Little wonder some of them would become discouraged. Overcoming a “dead year” on a resume is not easy.

6) Occupational displacement. Former jobs and professions may no longer be available and job seekers may be inexperienced in the latest jobs available. Some positions simply were eliminated during the shutdowns and will not return. Finding a job in a new field takes more time and effort.

 

[Stevicus]

I keep hearing anecdotally that the reason there is a shortage of workers in low wage/entry level jobs is because folks can actually make more money on unemployment or other forms of public assistance than if they worked.

Is that accurate?

What other cause(s) might there be for the shortage of workers some industries seem to be having? Please cite your evidence.

It seems that there's worker shortages across the board. I don't know if it's due to extended unemployment benefits, although it should be interesting if ever this country implements universal basic income.

 

[Stevicus]

That's what baffles me too. In this sort of job market, why are employers being like that?

Many employers are like that, although I've noticed some changes in attitude over the years. Some employers are okay.

When I first entered the job market in 1980, it seemed different back then. Even for jobs at fast-food and other low wage jobs, they took more of a "don't call us, we'll call you" attitude, as if they didn't even really need workers. (And back then, they probably didn't.) But now, they're resorting to actually paying people just to apply.

A lot of these employers have also grown somewhat dependent upon the labor of undocumented immigrants, since they do the jobs that high schoolers used to do - and probably would still do, if they weren't given the cold shoulder and treated like crap by these kinds of employers.

For example, one large company my kid worked at actually withheld everyone's first paycheck....just kept them in a safe, for no reason, until the employee bothered to ask. Why? They never said.

Is he still working there? It sounds like this employer is breaking the law.

I've heard other stories of 10 hour days with no breaks, yet the employer still takes 30 minutes off their time card.....injured employees being forced to keep working....and a host of other things.

That's illegal as hell. They should gather up as much evidence as they can and take it to the authorities.

It's weird, and I don't really have an explanation for it.

If these stories are true, then the explanation is that these businesses are run by greedy criminals.