Some good news. With this level of employment, I’m watching for the wage growth and the inflation that comes with it. We probably won’t see as much of that as we like until more people enter the workforce.
US jobs growth was slower than expected in April, as employers added 164,000 positions.
The unemployment rate nevertheless fell to 3.9%, the first time it has dipped below 4% since 2000.
The average hourly pay of private sector workers increased 2.6% year-on-year to $26.84 (£19.77).
Wage inflation is happening.
Prosperity needs to keep inflation in check.
k:
So you are opposed to wage growth?
There’s a story in the local branch-rag of USA Today wherein one (yes, only ONE) Door County landscaping firm (translate: lawn-cutter) is crying about getting seasonal labor. They’re paying $15.XX/hour and the number of imported laborers was reduced by the Trump Administration–so they’re not getting the labor they need.
Meantime, a local grocery outfit, part of Kroger’s, insists on paying around $9.00/hour as starting wage, and is getting truly horrible people as a result. If they pass the drug tests, they show up for about 2 weeks before simply walking out.
So there’s no “wage inflation” going on–but you can expect serious service-deterioration as a result.
Inflation for building materials made with steel ,
Aluminum and especially asphalt for shingles are taking steep increases ( in some cases , monthly )
And are 5-8%
Nord,
I’m not opposed to wage inflation. Just cautioning that out of control inflation can make us like socialist basket case Venezuela.
When it comes to “wage inflation”, I expect responsibility inflation as well. If I pay you $14/hour, you better not act like an $8/hour 14 year old. THAT is a big problem with today’s twentysomethings.
dad:
Our regional paper (sourced from MJS/USAT) also had a story today about a Door County landscaper in Egg Harbor that is having trouble finding employees. But that article talks about the company building patios and planting shrubs. Lawn mowing wasn’t mentioned. The article also details how the owners have been turned downed for H-2B visas by Homeland Security for the last 2 years, turning away business to the tune of $300,000 last year, and how the labor shortage is jeopardizing the 32 year-old family business. And they pay over $13/hour. Is this the same story? Maybe your local “rag” omitted those details.
k:
Wouldn’t “responsibility inflation” devalue responsibility?
Why wouldn’t a 14 year old doing the same work and as well as the twentysomething get the same pay? Do you practice wage discrimination based on age?
Same story. (Wage ELIMINATION at MSM, by the way.)
Trust me–that outfit is a lawn-cutter which also does construction. Ho-hum.
Let’s assume that their employees work 60 hours/week. That’s about $1K/week in wages, which a college student would LOVE to have, no?
Except they don’t want college students b/c they work their crews from about April 1 through about November 30th or so. Then–with luck–they’ll keep a few and plow snow, too. College kids cannot work those schedules.
But few, if any, people want to work more than 50 hours/week during the summer–no vacations, remember–and roll the dice on working during the winter.
Maybe they’ll just have to bite the bullet and hire full-time/year-round. They’ll have less time to cry to newspapers, of course.
dad:
They may mow lawns, but to lose 37% ($300K) of their business, those folks do a lot more than cut grass. And how do you know they don’t hire college kids when they are available? No mention of that in the story, one way or the other.
Just so we all understand, you would rather put a $1M a year, 32 year old family run operation out of business rather than have those employees paying taxes, buying goods and services from local vendors, etc. Correct? Wow.
Just so we all understand, you would rather have all the US-citizen auto workers starve so we can purchase Cheap Cars, right?
That’s actually your argument, Nordski.
And what’s the big deal about “losing” $300K in gross revenue? What counts is PROFITS. If they’re really going out of business, it is because they are not PROFITABLE, which begs the question: wassamatta with their business model?
Hmmmmm???
Nord,
If the 14 year old can perform same scope of work, sure I would pay him the same.
However, government inteferes with that scope on 14-year old. they cannot do grill area, they cannot work past 7PM at night, cannot work more than 3 hours on a school day, cannot work more than 18 hours a week.
Pay is determined by availability, ability to do ALL areas of the store, ability to stay longer hours, willingness to work at the high volume times nights and weekends. Since government limits 14 year olds to excel in those area, I cannot pay them as much.
Get stupid liberal child labor policy out of the way and 14 year olds can be more valuable to employers!
dad:
No mention anywhere about auto workers. Are you talking about the same article? And it looks like their business model was just fine until the politicians currently in power got involved. And a portion of that $300K is profits, so what are you trying to say?. And it is 37%of gross, so that is a pretty big hit overall.
Maybe you and k can have this discussion, as you two are on opposite sides here. k wants sweatshops for all, dad wants those stupid conservative labor and visa laws out of the way, so you two will have plenty to talk about. Have fun.
And it looks like their business model was just fine until the politicians currently in power got involved
Yes, thanks to the politicians currently in power, a rocking economy (more disposable income for things like hiring lawn care services instead of doing it yourself) & a low unemployment rate (less workers available willing to accept sporadic hours and lower pay) will be disruptive to a business whose model is based on lower paid workers for only part of a year – bad for them but good for just about everyone else. In the case of Door County, it is a low population area – less than 30,000 year round residents. The median age of those residents is 52 years – in Washington County it is 37, in Wisconsin it is 36 years.
If the business wants to follow it’s current model, it needs to relocate to an area with more and younger people, and maybe an area that is gaining population (Door County has experienced a very minor population decline.)
Nord,
What do you mean “sweatshops for all”?
You’d rather have teenagers run with the gangs?
We note here that Nordski runs away when slapped with a little cold reality. Incapable of analogical thought, and also incapable of recognizing business-model problems, Nordski makes a perfect ‘public employee.’
Acknowledging that our keyboard warrior/troll thinks Schaumberg is in Wisconsin, it is all an expected output. About time for our faux Wisconsinite to attack Mr. Scheunemann again isn’t it?
d:
Didn’t run away from anything, least of all you. I have been doing a little carbon sequestration, you should try it. Great exercise, gets you out of the basement, and does some good for the planet. If you business plan is to insult any and all those disagree with you, go for it.
b:
I don’t know why this Schaumberg fetish of yours is pointed at me. I have never been to that part of IL, and have no plans to visit in the near future. Wassup? And I have lived in WI all of my life, so there is no faux on my part. And k does a fine job digging his own hole.
Still running away from the discussion by changing the topic and tossing little insults. We note that he throws insults and then accuses us of the same.
That’s how the Left always operates, whether in Illinois, DC, or Madistan.
Dad29, are you unaware of any conservative visitors to this blog who love to toss personal insults and avoid discussion? Did you speak up about them? Do you think the social norm here should be doxxing personal details, and using that to improve the specificity of insults?
Me? I think almost all stories (and political press releases) about employers who claim they can’t find employees never mention the option of paying better wages or improving benefits. That’s the free market answer, isn’t it? Or should we assume the labor pool is infinitely deep and employers should always be able to find workers at any offered wage or working conditions?
Or in Kevin’s case, that he should be able to hire any competent seven-year-old? Let’s be bold and eliminate minimum wage. We can bring back indentured servitude, too. Heck, these jobs are so interesting, they should be paying us to do them!
d:
Nope, still haven’t run away. I just pointed out the hypocrisy presented by “conservatives” that want government to stay out of business versus the “conservatives” that want to impose rules that adversely impact a successful long-term family-owned business. Seasonal labor has long been a part of the Door County employment mix, be it picking fruit and/or vegetables, or doing landscape work for well-heeled seasonal residents. If you have a better plan, let’s hear it. POWs picking cherries again, eh?
The remedy to underpaid labor is not MORE underpaid labor, Nordski.
And the market conditions in Door County are not favorable to this ONE landscaper. Hmmmm. Did someone else take that work? Did the work simply disappear? Did this landscaper UNDER-bid and have to turn it down?
Hmmmm.
Meantime, your solution–that you’ve avoided stating—is to bring in cheap labor. Temporary slaves, as it were. Just like in the Old South, also run by Democrats.
d:
You remember that you brought this landscaper into the discussion, right? Why don’t you answer your own questions?
My solution (which you missed by a mile) would be to allow Door County to revert to its native and original condition. Get rid of the McMansions, junk and trinket shops, and faux fish boils. And put up a toll booth at the ship canal to charge any out of state folks for the opportunity to see Gills Rock.
And unlike the old south, those in-demand seasonal workers get paid $13+/hour, well above the federal minimum wage. But you knew that anyway, and failed to mention it because it didn’t fit in your worldview.
>Just like in the Old South, also run by Democrats.
Come on, Dad29… you know history…