This time, it's reporters in North Carolina who are noticing that difficulties in recruiting workers are a function of pay, and not some mysterious phenomenon:
From fast food chains to mid-level eateries to high-end bistros, restaurants are reportedly having trouble luring workers back into the industry after a year of unprecedented upheaval. The so-called labor shortage has reached “crisis” levels, according to the U.S. Chamber of Commerce, but recent numbers released by the Department of Labor paint a more hopeful picture.
The unemployment rate is under 6 percent for the first time since March 2020. While the hospitality industry is still struggling to bounce back, 343,000 jobs were added last month, accounting for 40 percent of the employment gains in June. Still, a persistent narrative remains: Restaurants are experiencing a labor shortage because Americans are choosing to remain unemployed, living off stimulus checks and exploiting enhanced pandemic-related benefits. This convenient fiction is so pervasive that 27 states, mostly led by Republicans, are withdrawing from federal jobless assistance programs months ahead of September 6 (when state benefits for the long-term unemployed are also set to expire). The decision to withdraw from these programs will impact millions of Americans.
Restaurants appear confused as to how to entice workers back to the industry. Rather than raising wages, for example, some are doling out one-time hiring bonuses or offering free appetizers at job interviews in an effort to bring workers back into the fold. Meanwhile, a survey released in May reported that an estimated 75 percent of workers said they considered leaving the restaurant industry because of low wages and tips.
It's really pretty simple: If you provide your employees with decent wages and benefits, you will be able to recruit and retain good workers.
It's Econ 101.
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