National Job Growth Slows as Businesses Struggle Mightily to Hire
To any local economist, 266,000 added jobs in a month is a positive sign. That was the number of added jobs in April, according to the Bureau of Labor Statistics.
The negative sign, however, comes when wall street economists projected over 1,000,000 jobs to be added in the same time frame.
In other words, the nation -and Erie's - job growth is climbing, but slower than expected. April job numbers for Erie were not available today despite the national report.
Local business owners, however, understand why the numbers are lower than anticipated.
Both Dave Litz of Sloppy Duck Saloon and Eric Nyberg of Bonded Services are down employees as summer begins to come into focus.
Nyberg says he is down about 30 positions, with his current staff working significant overtime. Litzs' deficits are even greater: 30 servers and 45 total employee openings that have not been filled.
And it isn't for a lack of trying. Both owners say they've been diligently trying to fill the spots. That includes spending significantly more money on hiring boards than they've done in the past.
"We're spending a lot more money on advertising for jobs", Nyberg said. "We utilize Indeed, we utilize Zip Recruiter. None of those have really been successful for us. So, we've gone to putting signs out."
Unfortunately, there hasn't been much bite.
"The general consensus that we've got from people is that if they're not in the 16 or 17 dollar to start threshold, they're better of just to stay home and stay safe, and be taken care of that way", said Nyberg. "I've been in this position for 15 years. I've never seen anything like this."
"I have some people that would actually make a few bucks more based on 40 hours than they're unemployment", Litz added. "But they're young, and they know that they have a summer paid off, and they're going to take it. I can't say I wouldn't do the same thing. But it will probably never happen again. I hope it doesn't."
Both Litz and Nyberg say they've had to change, and are still currently changing their business models.
For Nyberg, it's putting more money into already noted job boards, and extending the time frame in which his company can complete projects.
At the Sloppy Duck Saloon, Litz fears a lack of employees will be a cause to limit hours, or close for certain days altogether, during the busy summer months. "When we get into summer, I don't think we'll have the staff to go 7 days a week", said Litz.
When, if at all, will a hiring frenzy happen?
National economists have yet to pin down an answer. Litz, however, feels that it won't be this summer - but this fall - when extended benefits run out for many.
"When all of this emergency unemployment ends in September, there's nothing in people's unemployment accounts", Litz said. "Come September or October, I believe we're going to see a rush, and people looking for jobs."