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Exploring America’s “Employee Market”: Questions Left Unanswered by Employment Rates

One local restaurant manager has his pulse on the workforce situation this country faces is in a pandemic environment.

It’s not a comforting picture.

The manager, who like many who were contacted for this story asked for his store or his name not to be used, said his chain restaurant was bracing against the same fate many businesses are in these days.

They’re short-staffed.

“We have managers having to cook and even wait tables,’’ he said. “Some of the restaurants around us are also struggling.’’

Owner David Martin has placed his fingerprints all over the Huntsville dining landscape. He’s seeing an improvement in workforce issues. Since opening Steak-Out in 1986, his business has branched out to include Rosie’s Cantina, Little Rosie’s, Blue Plate Special, Ted’s Bar-b-Que and Shaggy’s Burgers and Tacos.

“It’s been a pretty rough ride not having enough staff and not having enough applicants, fewer applicants,’’ Martin said. “However, we are beginning to normalize some. We’re still not back to normal but we are seeing progress. We’re more staffed now than we have been, but the situation is that could change in the event if someone is exposed to Covid or someone has a child exposed to covid or a group or people get together that have been exposed and we have to quarantine people at times even if they don’t have covid. 

“That’s been the fight from day one, trying to keep staffed with safety first. Things are getting better. We’re feeling like we’re beginning to staff up again. I feel positive about the way things are going to go. But, they’re talking about how the flu season might be bad this season. I hope not but at this moment we’re feeling better about staffing.’’

When the COVID-19 pandemic hit in mid-march 2020 and as businesses moved to stay-at-home work it was intended to be short-term. So were stimulus checks. However, there is a sentiment that the nation’s workforce has not only become comfortable with not going into a workplace but also in not working for low wages.

“Some people, they just want to stay home and for their own reasons, maybe for health risks and safety,’’ said David Salters, who leads staffing, recruiting and HR consulting at Warren Averett in Birmingham. “If their company does not offer a remote work option they’re not going to participate.

“Others are influenced by stimulus money. And even though Alabama has ended the public government portion of that, sometimes when incentives get going, potential employees can delay their re-entry into the workforce.’’

Lucy, a manager at a local Walmart, said she thought some potential workers were taking advantage of the stimulus.

“To me,’’ she said, “it seemed like for some of them that was an issue.’’

D’Angelo, who manages a local dollar store, said he encourages potential employees who don’t want to work for low wages to take a positive approach to the job.

“It’s a hard time finding help,’’ he said. “It’s a hard time keeping them. My biggest concern is I’m on the employees’ side. The cashiers, they don’t pay them enough, so in my opinion you get what you pay for.

“But, I told a friend a job is only horrible if you’re planning to stay there. It’s like a rental. If you’re planning to stay in this house that you’re paying way too much rent for, that’s bad. But it’s OK if you’re just staying there for the meantime while you build up and do whatever you need to do or build up in the company or find something else.’’

Another manager, Jerry at Star Super Market, said he’d “love” to raise wages as chains like McDonald’s have done in the wake of the pandemic and backlash over hourly pay. As it is, keeping staff at sufficient levels has “been a struggle.’’

“At one point we could pick from applications,’’ he said. “Now, we just have to sit back. We’re not even seeing the kids. We’re usually overrun with kids wanting part-time jobs. It might be because their parents don’t want them to be around Covid. I’d love to pay around $15, $16 but the (independent) business doesn’t allow it.’’

There was the Great Depression, Great Recession and now the Great Resignation. Salters reports he’s seeing stories of not only low-wage workers turning away from jobs but professional types as well who have gotten a taste of working from home. In August, it was reported more workers left their jobs than ever recorded in the country.

“They decided, ‘I’m not going back to the office. I had a chance to boost time with my family and put a little balance back into my schedule.’ And they are not going to go back into the workforce unless they have that option,’’ Salters said.

“And we’re having wage pressure. The salaries are increasing, because of supply and demand. The number one currency of choice — paid time off and flexibility to work from home and some companies choose to offer that, some don’t and if the company does not offer that then you’re forced to compete with that option.’’

Another negative factor for people returning to work at restaurants is foul experiences from customers. The manager mentioned at the start of this story said when his restaurant first reopened to in-store customers were “appreciative.’’

That changed.

“They’ve turned into sour pusses,’’ he said.

Salters said he’s observed the same thing.

“If you’ve been to a restaurant, they’re typically short-staffed,’’ he said. “So there’s a tremendous amount of pressure on the floor and the customers are flat-out rude to them. They’re just slam busy, even the drive-through lines. And so, yeah, you better believe you have to pay that much (more). It’s certainly worse now because of the the labor shortage.’’

The national unemployment figure is five percent. In Madison County, it’s 2.5 percent. But, Salters said, that doesn’t tell the whole story. A significant amount of the workforce that is hired have taken advantage of not returning to their daily job because of stimulus pay.

“A lot of people decided to take a once-in-a-lifetime chance to take a year off,’’ he said. “And for the first time in my 20-plus years of business, there’s no we’re having a year or even almost a two-year gap in your resume historically. People would get back to work, just to fill that gap and there’s a free pass for that now, so I’m taking some time off.’’

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