While fully open, many Twin Cities bars and restaurants are having trouble filling their staff.
minnesota.cbslocal.com
A growing trend across the country is job applicants for hospitality / restaurant jobs as well as other low wage jobs are not showing up for interviews ghosting the business. One restaurant owner in Minnesota described the situation as for about every 200 interviews he sets up, only about 12 people show up for those interviews. The rest are no call no shows. And this is why it's so hard to fill staffing shortages right now. Hotels are complaining about doubling their opening salary to $15 an hour to clean rooms and still can't get anyone to show up for interviews.
I took no sympathy to business owners complaining about people ghosting them. As that's exactly what they do to many people who apply for jobs.
It's unclear what is causing this trend. Is it states requirement to show proof of job search activities to be eligible for unemployment? Or are people just not interested in these jobs and don't think they are worth their time for the pay they would get.
Likely, it's a combination of both.
But it's becoming clear, we will not see low wage jobs return to normalcy post pandemic. The staffing shortages are likely to remain until wages are better. People want good paying jobs. Not be front line workers that get paid very little.
This is very much turning into backlash of 40 years of keeping wages depressed and growing wage inequality. People just are not interesting in jobs that don't pay enough.
A study in Washington State showed that if wages were increased to liveable wages where someone could only work one job and not 2 or 3 to get by that all open positions that they could not fill would be filled. People who previously passed on the job openings and did not apply because they didn't think the wages were worth their time were now suddenly applying. And they found good hard workers. The problem is, corporations do not want to pay these types of wages. It eats into shareholder profits and they can't have that.
One of the things I have heard is we are due for a major correction of wage suppression over the next 10 to 20 years. And this will include huge amounts of inflation because corporations will pass on all the higher wage expenses to the consumer.
We could be looking at a situation in 2040 where $30 an hour is equivalent to a $15 an hour job today if the feds don't keep inflation under control and corporations aren't able to keep wages depressed.