There is No Work Shortage
Let’s be honest.
This country isn’t always concerned with the people’s well-being. We could have had the virus under control if we had made a more concerted effort to protect the people. Politicians focused on attacking each other’s ideas and political agendas. Meanwhile, somewhere in the vicinity of 1,000+ people were dying each day at the peak of the virus rampage.
Why do I bring that up?
Because the focus is never on those who are not actively at the table, privilege allows some to walk above the problems that plague the average person. When speaking to someone above the fray, the disconnect becomes apparent.
The disconnect is precisely what is happening with the workforce right now.
These businesses claim a “work shortage” while living above the fray in navigating everyday life. A work shortage implies one of two scenarios:
There is an apparent shortage of jobs compared to an overabundance of people seeking work. In other words, there are more people seeking work than jobs available.
There is an evident shortage of people who are able and willing to work based on the comparable number of jobs available. There are more jobs available than people who can perform them.
It’s essential to understand this because neither scenario is correct, considering the circumstances. Since there were many firings and resigning that happened during the pandemic, there are a plethora of positions available for people to work if they so choose. Conversely, those same people laid off are probably looking for sustainable work that can help get them back on track.
Ironically, businesses are putting signs in windows complaining about the lack of workers coming to work at their establishments. Why aren’t they coming?
One word: MONEY.
Peep the image above. The minimum wage is above the minimum federal mandates in about half the states, and most of the rest reside right at the mandate, making sure they don’t overachieve. A couple of states are not paying the federal standard minimum wage.
See why people aren’t rushing back to these jobs? The pandemic allowed people to assess their value compared to their job’s valuation, and many have noticed that they are not being paid as much as they could or should be. Working in these jobs was fine when there was no time to evaluate. Still, since people have had time off and received ample compensation from unemployment, they notice that they were overworked and underpaid.
Here’s a little math that will help people understand why the unemployment benefits are so impactful. Have you ever wondered where the $600 PUA benefits came from and where the $300 came from?
The $600 came from taking an average workweek of 40 hours and hypothetically paying people $15 an hour for those weeks. ($15x40=$600) The $300 an hour comes from those same 40 hours, but paying each person $7.50 an hour for those weeks ($7.50x40=$300). While we’re at it, The federal government determined the stimulus by taking a little over minimum wage, $7.50, multiplying it by 40 (an average workweek), and multiplying that by four weeks ($7.50x40x4=$1,200). There’s your $1,200.
Knowing how it breaks down is necessary because, with that extra money, people could sustain themselves and even prosper to a certain extent. I’m not talking about the scammers but the honest people who needed and used the money to support themselves and their families. Imagine being paid $7.25, or even $10 an hour, only to have your weekly income boosted by the PUA benefits, effectively doubling your income in some cases. Why would someone subject themselves to working long hours, poor pay, minimal benefits, and less than civil treatment from their employer to be paid at the federally mandated level, or even worse, less than that? According to the chart above, in California (where I live), the average person would have to work 130 hours A WEEK just to afford a two-bedroom APARTMENT (which isn’t a house, by the way, which is what creates generational wealth). It’s a cycle of poorly paying jobs equalling barely affording rent equalling working two (and sometimes three) jobs just to make enough to pay the bills while not getting a raise, which leads to having to take low, poor paying jobs. And from the looks of things, people are tired of that cycle.
One of the most meaningful quotes for those who make it to their level of success is, “Work smarter, not harder.”
It looks like the middle-class population is taking that advice now.