Operators: How are you all dealing with the labor shortage?
June 25, 2021
by a searcher from University of Virginia-Darden - Darden School of Business in Richmond, VA, USA
My business is doing well and orders are ahead of 2019 and###-###-#### The issue I'm having is that there's an extreme labor shortage of blue collar jobs and I need workers like two months ago. I can see it in my business. The company who cuts my grass is short staffed. Every manual labor role that tends to hire men is short staffed right now. It's even challenging getting people to come in for job interviews. My questions are:
1) How are other operators dealing with this?
2) How are searchers thinking through this when buying companies?
3) Does any smart person have a sense for when this might go back to normal?
from Texas A&M University in Johnson City, TN, USA
Labor issues haven't gone away, a year later. Special COVID relief and unemployment I think over in most states at this point.
I believe the real issue is boomers are retired for good now, many left due to COVID (including generous buyouts at beginning of COVID by major employers that now can't find labor!) and never came back to work.
I believe we're stuck with the shortage for a long time, and that this will make inflation stubborn and persistent despite fed raises.
Thoughts?
from The University of Chicago in Chicago, IL, USA
2) May be employers should stop complaining and listen to our genius leader in DC!!
3) I am chair of a non-profit. We need certain special labor. They are willing to come in September when government subsidies run out.
4) Historically businesses have maintained % margins as labor cost increase allows price increase. Therefore, this is an opportunity to lock in business price based on old profit.