“Why would someone want to work for $18 an hour when they can get $21 an hour in unemployment?” Next One Staffing’s CEO Ryan Buxbaum couldn’t make a clearer point in explaining today’s imbalance in the job market.
Our politicians have over-engineered their social planning to the detriment of our communities’ economic future. It’s happening all over the state; folks, good folks, are logically choosing state and federal unemployment pay over honest work being offered by hotels, restaurants, wineries, retail outlets and construction.
America is in the midst of a labor shortage. Employers are unable to find workers. And the issue, many executives and politicians claim, is the safety net of unemployment and stimulus checks. At this writing, 31 states have discontinued their unemployment programs to reset our economy on its pre-pandemic path. Indeed, in many of those states, employment is growing at a faster rate than the states that choose to maintain unemployment benefits. California is one of those states, announcing it will provide unemployment benefits until Sept. 4.
Prior to the pandemic, the economy offered record-breaking opportunities across multiple industries. It cast a welcoming net of higher wages, and raised the bar for all Americans.
Low unemployment created an organic, appropriate rise in wages because demand for human capital outpaced supply, revealing what we already knew—human capital is the most precious asset for organizations. The pandemic fundamentally changed the economy, and also underscored how difficult it is for working parents to strike that work-life balance when schools shut down. It seems both companies and workers are reassessing the pre-pandemic status quo and re-evaluating their priorities these days.
Welcome to our annual Jobs, Trades & Education issue. In this month’s lead story, Bo Kearns explores how employers are managing beyond the coronavirus-induced recession and our government’s artificially-induced pay programs that are slowing our recovery. Thousands of job openings exist in the North Bay, but where are the candidates? Employers are struggling to fill positions. There are no easy answers. (Are there ever?) Bo sits down with employers, economists and staffing experts to explore the matter and his findings will open your eyes to the issue.
When schools closed their classroom doors in March last year, the pandemic also transformed education. In the feature “Education Evolution,” Judith Wilson shares how JC and college campuses in the North Bay have found new ways to increase and broaden their student population.
While the outcome for employers who will soon draw from those schools is unclear, educators believe their evaluation and admission of class candidates embodies a richness in the learning experience for their students. When shutdowns began last spring, school administrators took action. “We were determined to keep the education pipeline open for students” says Frank Chong, superintendent/president of Santa Rosa Junior College. Rather than attend class, SRJC’s Culinary School candidates did their own grocery shopping, reviewed instructions from their home kitchens, and shared their results (and dirty sinks) via Zoom each week. Well over 97% of all classes went virtual at Chong’s campus. The school provided more than 700 laptops to assist those without during this period. Hot spots were set up to provide internet access. They did what they could to hold their SRJC family together.
Similar programs and outreach have occurred at Sonoma State, Dominican University and, no doubt, many schools throughout the North Bay.
On a more personal level, my family is one of thousands in the North Bay, which celebrated the graduating Class of 2021 for high school seniors. My wife, Susan, and I are proud to see how our daughters have weathered through the firestorm of 2017, the pandemic and all the usual tribulations faced by our children as they make the journey from childhood to adulthood.
Many of you commented on my feelings expressed in a recent column, “Bullies and Hate Crimes,” and for that I’m very thankful.
Please share your experiences with me at Lawrence@NorthBaybiz.com. Until then, stay well and save water. In the meantime, I hope you enjoy this issue of NorthBay biz and learn how employers and educators are helping us all rebound after these last difficult 18 months.
