Corona Daily 059: Vacancies without Takers

USA is among the first countries trying to exit from the pandemic – to go back to the old normal. In April, a record 9.3 million jobs were available for workers to grab. By a freak coincidence 9.3 million Americans were unemployed in May. Some industries have a greater worker shortage than others.

Many employers are raising wages to attract workers. If you see lots of vacancies in McDonalds, it is not a real shortage. Hotels and restaurants are receiving more applications than job openings. It is only a matter of recruitment time to fill up those jobs. There are other industries which are not getting workers despite raising salaries. This week, the Washington Post has analysed wage and employment data across hundreds of industries and identified seven sectors where record paychecks for non-managerial jobs have failed to fill up the vacancies.

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The non-managerial staff working with psychologists and other mental health practitioners is now paid 30% more than at the start of the pandemic (reaching $731 a week). Anxiety, depression and stress were on the rise before the pandemic, they peaked during it. Last September, 40% practitioners said they felt burnt out. Like doctors and nurses, psychologists and their staff are experiencing pandemic fatigue. Few new faces want to join the profession.

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Americans want to start wearing new clothes, both formal and casual. But worker shortages at Textile Mills are so acute they are turning down big orders. Workers’ wages went up by 18% (now $880 a week) during the pandemic. This is a more skilled job than a restaurant waiter. Qualified factory workers are in short supply, and different industries are competing for them. Some mill workers might have chosen an alternative career. It appears the USA would need to import textiles from China for a long time, whether they like it or not.

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I wrote earlier about Specialized Long Distance Truck Drivers. Driving long vehicles like refrigerated trailers is a job that requires training and experience. In 2021, their wages have gone up by 10% (now $1060 a week). Bonuses can be double that amount.  Despite a lucrative package, it is a challenging and exhausting job. The pandemic alone is not responsible for the shortage.

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In April 2020, pet adoptions hit a record level. Socially isolated people adopted pets, many becoming dog-owners for the first time. Vet doctors and staff are mentally and physically exhausted trying to manage the number and inexperience of pet owners. Most of them complain they have no personal life left. (Pet owners can call a vet during the night, and sometimes do). Weekly earnings for non-managerial staff rose 16% to $1,352 in 2021. But in most places available staff is reduced by 20%.  

One vet said she lost two receptionists when a client was rude, using profanities, making the receptionists cry. Customers’ emotions ran high during the pandemic, raising stress levels of staff along with them.

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USA has plenty of timber. With nearly interest-free mortgages and the work-from-home revolution, many Americans are thinking of moving to new houses. But to convert the timber to boards, sawmills don’t have enough workers. The weekly paychecks are up by more than 10% to $942. The timber price bubble has already burst, and the mills are not interested in investing in modernization. It is possible some workers prefer to collect the stimulus checks and unemployment allowance rather than resume work.

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Connected to the heated housing market are the two industries: Movers and Specialty Finishing Contractors. Moving companies pay 14% more in 2021 (now $745 a week), but not enough workers are turning up. Across the USA, frustrated customers are waiting for weeks for their belongings to arrive.  

Specialized contractors deal with new construction, re-modeling, interior decorators for residences and commercial property. The 17% raise this year has elevated their wages to $1,075 a week. But they are losing rather than gaining skilled workers.

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By August or September, the unemployment allowances will likely disappear. Schools may re-open allowing parents to go back to work. Some of those vacancies may get filled. If not, a no-brainer solution is to import the goods or bring in migrant workers.  

Ravi