Did you miss out on getting a summer job last year? Students still hoping to earn
some extra money this summer should have no difficulty finding a job, or two, or even
three! Indeed, there has been a 180-degree turnaround in the availability of restaurant,
hotel, grocery store, and other low skilled work this summer as compared to last year. In
fact, companies are having trouble filling vacancies created as businesses reopen
following COVID-19 closures. Shake Shack CEO Randy Garutti says that hiring workers
for its 40 restaurants has become a key focus at the company as it has at companies
across the country. The U.S. Labor Department estimates that there are more than 8
million unfilled jobs right now, nearly a million of which are at restaurants and hotels.
Numerous factors are contributing to the high number of unfilled jobs including concerns
about contracting COVID-19 whilst on the job, the reluctance of potential workers to
give up benefits and payments that are part of the COVID-19 economic stimulus
package, and issues related to securing adequate childcare in the midst of a pandemic.
The shortage of workers has become so dire that some states are limiting the availability
of extra stimulus benefits and checks prior to the scheduled end of the program in
September. For now, though, companies are getting creative in their search for employees
in the hotly competitive labor market. Some are offering bonuses and higher wages to
new recruits, suggesting that students still looking for that summer job should be well-
positioned to get what they want.
Discussion Questions:
- What is driving the unusual employment situation in the restaurant, grocery, and hotel
industries? What needs to happen to resolve it? - What was your experience looking for a summer job? Did you get multiple offers and
unexpected perks? How does the current labor market affect your decision to get a job or
look for a different position? - If companies are forced to increase wages to attract the workers they need to run their
businesses, what happens to the price of the product or service they sell? What are the
longer-term implications for the economy?
Source: WSJ: Restaurants, Supermarkets Can’t Find Enough Workers to Open New Locations, Photo by Tim Mossholder on Unsplash