6 ms·
Sure but this goes beyond restaurants in my opinion. Look at these states that had mass migration of people during the pandemic. You will find the (big) sky-roc
by yepthatsreality 5y ago
Sure but this goes beyond restaurants in my opinion. Look at these states that had mass migration of people during the pandemic. You will find the (big) sky-rocketing cost of living where those who are moving in on a whim are also not seeking jobs in the state. However all these businesses need employees to handle the new increase in customers. The employers aren’t raising their wages either, which is also not attracting people to work. When the lower classes are forced to move elsewhere (Outside the cities) then this problem will get worse.
Return to office might have some reverse effect but online remote employees can be one of the biggest generators of this problem.
- conductr 5y ago> The employers aren’t raising their wages either They are. It takes time but they are. I work in a business that is having a hard time hiring entry level healthcare workers because Walmart and Amazon warehoueses is now paying $15-20/hr when it was only $12 pre-covid. Walmart and Amazon would only raise wages if they truly had a labor supply issue, which they do, we all do.
- andechs 5y agoWalmart and Amazon raising wages allows them to exercise their huge scale to further crush their competitors. With their huge efficiencies of scale and deep cash reserves, they are better able to offer higher wages than competitors. During the pandemic, both Walmart and Amazon have seen huge growth. They can continue this growth post-pandemic by squeezing their competitors on wages, and eventually emerging with less competitors.
- j7ake 5y agoBeing able to be more efficient and pass down savings to low prices and higher worker wages seem like a good thing.
- the-dude 5y agoUntil there is only Walmart and Amazon left.
- bluGill 5y agoIt isn't hard to start a new business. There are a ton off niches that Walmart and Amazon don't server well. Find one and serve it, then use profits to expand into the much larger (though lower margin!) areas that Walmart or Amazon serve. Good luck - it is not easy to run a business.
- the-dude 5y agoJust wait until either Amazon or Walmart or both block your account for reasons. No soup for you.
- gruez 5y agoI'm skeptical that you can build a profitable competitor by reselling amazon/walmart.
- bluGill 5y agoIf Amazon or Walmart is part of your plan you need a better plan. Try selling oil well drilling supplies in oil country (I have family doing this, and they have cornered thus niche, so don't try that exactly, but it is the type of thing. They make it because they have in stock the special parts needes for that niche and Walmart won't)
- rdtwo 5y agolol it’s not hard to start in tech with no regulation no capital or overhead. Real businesses are hard to start and live and die by the cost of financing
- deleted 5y ago[deleted]
- gruez 5y ago> Walmart and Amazon raising wages allows them to exercise their huge scale to further crush their competitors. Sounds like they're in a no win situation. If they don't raise wages: "boo they're paying their workers slave wages!" If they do raise wages: "boo they're using their huge scale to further crush their competitors!"
- brutal_chaos_ 5y agoAmazon/Walmart are capable of raising wages to add more/retain employees. Other smaller business aren't able to adjust as quickly, thus the big box stores take on way more workers. If everyone raised wages at the same time (a la minimum wage increase or otherwise), then Amazon nor Walmart would look like that much of a better place to work, eliminating the "boo they're using their huge scale to further crush their competitors."
- okaram 5y agoBut what would prevent Amazon/Walmart to raise wages even more? That is what they are doing now, right?
- brutal_chaos_ 5y ago> raise wages even more? Nothing, good point. > That is what they are doing now, right? I haven't seen that near where I live (in the US) though I wouldn't doubt there are a number of locations experiencing that.
- hellbannedguy 5y agoI do see a bit of improvement. CVS starts out at $15/hr. I have a feeling that is only in certain zip codes? Kroger decided to close a store because it didn't want to pay a covid front line temporary increase of $4/hr. I don't see a big increase in wages, and I work a lot of lousy jobs. If job conditions were a bit better, a lot of employees will stay at a low paying job because they actually like their fellow employees, and sometimes the job. I don't know why being nice/respectful is so out of fashion in corporate america? I grocery shop at Safeway, and The Nugget markets. Safeway employees hate their job. They even have a hard time retaining new immigrants. When I shop at Safeway, I sometimes need to move to another line if I feel the checker is having a bad day. (I overheard an employee state a manager wanted him at a store 70 miles away at 5 am the next day, and he told that manager he didn't have transportation other than the bus. I wanted to grab the phone and lay into that "Manager".) As opposed to The Nugget, which is notated as one of the best 100 places to work. It's like going back to the fifties. The employees are nice. It might be they hire people whom will have better jobs one day? Anyways, it's not just about wage. I have had lousy low paid jobs I liked, and well paid union jobs I despise.
- vkou 5y ago> Kroger decided to close a store because it didn't want to pay a covid front line temporary increase of $4/hr. If you're talking about Seattle, Kroger closed that store because it was underperforming for years, not because of a temporary wage increase that affected every grocery store in the city. Weeks later, they started advertising open positions with wage increases for nearby stores they didn't close... When it comes to political decisions, firms lie all the time about their motivations. I don't understand how anyone can take what they say at face value, without any means to verify their claims. The reality is that nobody closes their grocery business because labour costs went up for them and their competitors. Customers still need groceries to live, and you and your competitors just pass the costs directly to them, without any change to profit margins or market share. Closing your grocery over this is as nonsensical as closing your grocery because the spot price of milk went up to $15/gallon.
- cratermoon 5y ago
- ac29 5y agoI'm curious where in the US are healthcare workers getting less than $15/hr and what kind of work it is. Even the sort of jobs that require no certification, no degree, and no experience seem to pay quite a bit more than that.
- heavyset_go 5y agoEMTs make a pittance. Last time I looked it was something like $12-15/hr.
- Kluny 5y agoPossibly home-care workers, people who look after invalids with the type of arrangement where they drive to several different houses and provide a couple of hours of care at each. It doesn't require any particular qualification, but it's difficult and draining work that is not usually well-paid.
- pessimizer 5y agohttps://work.chron.com/much-hospital-orderlies-make-per-hour-23383.html https://work.chron.com/much-hospital-orderlies-make-per-hour... > Salary and Years of Experience > Based on the May 2017 salary information from the Bureau of Labor Statistics (BLS), orderlies make a median wage of $13.07 an hour or $27,180 a year. Half of orderlies receive more, and half make less. The lowest-paid 10 percent make less than $9.73 an hour or $20,240 a year, while the highest-earning 10 percent get over $19.52 an hour or $40,610 a year. Orderlies employed in psychiatric and substance abuse hospitals are paid the highest average wage of $17.21 an hour or $35,800 a year. Nursing care facilities pay one of the lowest average wages of $12.00 an hour or $24,950 a year. > Wages often start out low for entry-level orderlies and grow with experience. Some orderlies complete additional training and state requirements to advance to higher paid nursing assistant or registered nursing roles. In July 2018, PayScale.com showed this hourly pay progression by experience for nurse aides, orderlies and attendants: > 0 to 5 years: $8.19 - $15.24 > 5 to 10 years: $8.28 - $15.83 > 10 to 20 years: $8.84 - $17.16 > 20 or more years: $8.73 - $20.00
- FireBeyond 5y agoEMTs and paramedics. Often working 24, 36 or even 48 hour shifts. Often for $15/hr or less (many places will pay EMTs literally minimum wage, and tell their employees, "you can have as much OT as you want"). Part of it is supply and demand. Private EMS is often an in-road or holding pattern to a more "cushy" unionized fire department EMS position (where firefighter paramedics can make into the six digits). So private EMS has little motivation to be competitive - "there's a line of 21 year olds who will happily take your job".
- mmcgaha 5y agoThe local DQ sign says $16/hr all positions, so yeah I think they are.
- deleted 5y ago[deleted]
- lamontcg 5y agoeverything about that analysis of the situation is backwards. the problem is the restaurants are seeing fewer customers due to the pandemic so they can't raise wages, while the upper 1/4 or so of the population hasn't been financially impacted by the pandemic and housing and rents have continued to climb. restaurants can't raise prices in this situation and they can't raise wage, which squeezes the workers who are now not putting up with it any more. return to work means continued increase in housing prices and if restaurants fully open they're going to have to pay more and that means that those wage and rent increases for the businesses will have to get passed on as rising prices. if there's a switch to remote work then that will make cities more livable again at current wage costs and menu pricing. you lose some disposable income from the seriously high wage earners that have left the city, but they'll mostly take the distortion of the housing market with them while the bulk of the population that makes less than $150k will have more left out of salaries to eat out at the restaurants. short term the effect of popping housing bubbles would be recessionary, of course, but it'd act more like Volker's popping of the 70s stagflation bubble, give it 5 years and the "new normal" of consistent housing prices would take over.
- foobarian 5y agoWith the SV housing prices what they are, seems like a hourly worker can't possibly afford a reasonable place to raise a family. Maybe they will end up paying restaurant workers a "hazard" wage and treat it like working on an oil rig. Do a tour of duty for a month at a time, go back to family in a not-insane location.
- anonAndOn 5y agoThis was already happening with gig workers. I've met several drivers who were sharing a hotel room with a bunch of friends in SF for a week or two to try to earn as much as possible before returning home.
- patrick451 5y agoLong story short, Covid lock downs were the most idiotic, short sighted policy of the last 100 years.
- ajross 5y agoThis is exactly it. This is a second order effect of the pandemic flight, not a "restaurant" thing at all. People facing long term unemployment/underemployment over the past year had huge incentives to "move back home" (or wherever) to places with lower cost of living. And who feels that pressure the most? Service workers, who had jobs in the cities, sure, but didn't reap any of the economic benefits of all that urban wealth concentration. They're overrepresented in the population who fled, which means their jobs are now underserved. Long term, this will probably just be viewed as a correction to a few overpopulated urban cores. We'll find equilibrium again, though not at the same state as before. But regardless, the fix here is the same: pay more for the jobs and you'll find people willing to do them.