Employers Can’t Crack the Hiring Code
Employers Can’t Crack the Hiring Code
Its the pay, stupid.
Nationally employers are whining that they can’t hire quality workers. There are various reasons for this. Food service industry has in many cases had to adapt to paying secure wages above $20 an hour for front of the house staff. A far cry from most states tipped wage rates which is typically under $3 per hour.
Economics 101 if no supply, increase demand.
An ice cream shop in Pittsburgh made national news for hiring staff at $15 per hour plus tips, and exclaimed that they suddenly have candidates applying.
Metro Detroit Spotlight on Hiring
A trend unfolding before our eyes in Metro Detroit is that employers are citing having a hard time hiring new employees. We’ve seen tons of now hiring, and help wanted signs posted. Unlike prior economic growth periods, many of these businesses hiring are now offering sign on bonuses of $300 at a Burger King to $600 at manufacturing employers or even into low $1,000 levels
Manufacturing related openings are also adding in weekly attendance bonuses.
Qualified Interview Gift Cards and Free Food
Another unforeseen perk is that businesses are even offering gift cards for as much as $50 just to interview for openings. Some are offering to even feed candidates at the career fairs to help drive interest.
Pandemic Purgatory
The narrative that there are tons of quality jobs available is also a bit of a marketing affair by the businesses who are not stepping up their wages to attract and retain candidates.
For example this March 29, 2021 email snip from Michigan Unemployment’s Career Connect newsletter shows that there are “over 77,000” jobs available.
However the Federal Bureau of Labor Statistics shows that prior week claims March 25, 2021 show’s Michigan insured unemployment of 134,536, assuming every one of these jobs was a perfect match in skills, and pay from everyone in Michigan who found themselves unemployed it still leaves another 57,536 unemployed that there are not job openings for.
The insured figure also only takes into account the workers who are actively collecting unemployment insurance payments. This means more likely than not the other 26,754 from the prior week who are now not included in the insured unemployment are not working. It just means another 26,754 workers are going without employment benefit payments, or collecting of any unemployment benefit payments. Full on broke. If you are one of these people our hearts go out to you, it happened to us in the Great Recession.
What this really means is that 161,290 / 77,000 is a 2 worker to job opening ratio. It is slightly better than the Great Recession. However when you temper it with the additional newly unemployed every week of 11,000 to 12,000 that ratio grows every week.