Labor Shortage

While I need to keep this post short because I’m trying to focus on getting a series of tasks done, I do want to mention that there has been a lot of news about labor shortage. Republicans say that the benefits are making workers lazy and living a life of leisure with the $300 per week support. Others say that workers are realizing that working for low pay in dangerous conditions is just not worth it and thus are trying to upgrade their life by seeking better paying jobs. Their last job just didn’t pay enough and provided no growth, not enough to compensate for risking their life; we should celebrate that the workers are trying to find better jobs. Who is right?

I don’t know but there are some teasers that suggest workers are not lazy; it’s just that pay is too low. Paul Krugman noted that if the unemployment benefits were impacting the number of workers available, you would think that the low wage workers would be the ones most greatly impacted, but he tweeted out the following graphic:

That alone is kind of convincing, but wait, there’s more. This Yahoo Money article titled “Job searches fell in states canceling unemployment benefits early” said that while job searches initially increased when benefits were first cut, the searches subsequently declined in states cutting benefits. That state of affairs suggest that benefits are not playing a role in the mid to longer term, at least in this time period. Something else is driving people to opt out of working. Could it be that they are aware that the covid-19 is still out there or that childcare is not yet available?

This The Guardian article talks about the labor shortage in the restaurant industry and all of the indignities staff and waiters/waitresses have to put up with. For starters, this industry is infamous for not having to comply with the minimum wage of $7.25 in the U.S. due to the tips that the waiters and waitresses can receive. Their pay can be as little as $2 and something per hour. Even with tips, I doubt they were paid enough to compensate for all of the indignities, harassment and heckling they faced last year. The Guardian says the issue is not a labor shortage but a wage shortage.

Yes, there will be some people who are lazy and will try to subsist on $300/week pay but I have a hard time believing they could survive on that long term. People want to work but they also want dignity and a feeling of worth. For others it’s a matter of safety and still others finding available childcare.