Restaurants struggling to hire, despite high unemployment
Share Now on:
Before COVID-19, the restaurant industry was already facing labor shortages. Now the low-wage work, plus the threat of exposure, are making it even tougher to find workers in some places.
Michelle Kaufman owns the Paddle Trap, a burgers and comfort food-type restaurant near Bismarck, North Dakota. She spends a part of her day, every day, posting jobs on Indeed. For every dozen interviews, she nets about one hire, and they’ll often last just a few shifts. When she asks why, they’ll say, “you know, I didn’t realize how many people I would be around every day, and I don’t want to take this home to my family,” Kaufman said.
The virus is hurting her bottom line. The staffing shortage is annoying potential customers who are eager to eat out.
“Guests will come in, and we’ll have to tell them that we’re on a 30-minute wait,” Kaufman said. “And they don’t understand why we’d be on a wait when we have empty tables.”
The restaurant industry came into the COVID crisis with a hiring problem. Lots of workers think of food jobs as transitional. Also, the food service industry was growing too fast, according to Eli Wilson, assistant professor of sociology at the University of New Mexico who’s writing a book about restaurant labor.
“There already was more jobs to fill and not enough bodies willing to do this kind of work,” he said.
Another factor? A lot of people who do this work are on the extreme ends of the age spectrum. Many are older workers who are more susceptible to the virus. And many are younger people who live at home with parents. Alex Susskind directs the food and beverage institute at Cornell.
“The risks definitely outweigh the benefits for some of these folks,” Susskind said. “And if they need the money, they may be able to find other types of work that may be less risky.”
Possibly. Like retail or gig work, which can sometimes pay more than the average restaurant worker’s salary of $22,000 a year.
COVID-19 Economy FAQs
Millions of Americans are unemployed, but businesses say they are having trouble hiring. Why?
This economic crisis is unusual compared to traditional recessions, according to Daniel Zhao, senior economist with Glassdoor. “Many workers are still sitting out of the labor force because of health concerns or child care needs, and that makes it tough to find workers regardless of what you’re doing with wages or benefits,” Zhao said. “An extra dollar an hour isn’t going to make a cashier with preexisting conditions feel that it’s safe to return to work.” This can be seen in the restaurant industry: Some workers have quit or are reluctant to apply because of COVID-19 concerns, low pay, meager benefits and the stress that comes with a fast-paced, demanding job. Restaurants have been willing to offer signing bonuses and temporary wage increases. One McDonald’s is even paying people $50 just to interview.
Could waiving patents increase the global supply of COVID-19 vaccines?
India and South Africa have introduced a proposal to temporarily suspend patents on COVID-19 vaccines. Backers of the plan say it would increase the supply of vaccines around the world by allowing more countries to produce them. Skeptics say it’s not that simple. There’s now enough supply in the U.S that any adult who wants a shot should be able to get one soon. That reality is years away for most other countries. More than 100 countries have backed the proposal to temporarily waive COVID-19 vaccine patents. The U.S isn’t one of them, but the White House has said it’s considering the idea.
Can businesses deny you entry if you don’t have a vaccine passport?
As more Americans get vaccinated against COVID-19 and the economy begins reopening, some businesses are requiring proof of vaccination to enter their premises. The concept of a vaccine passport has raised ethical questions about data privacy and potential discrimination against the unvaccinated. However, legal experts say businesses have the right to deny entrance to those who can’t show proof.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
Give today and get our limited edition tote.