Re:Record share of small businesses in U.S. report job vacan...
by jandrewrogers on Monday October 11, 2021 @09:36PM
(#28835075)
I know several people in this position. They are largely choosing to work the minimum number of hours that pay the bills instead of a steady 40-ish hours per week at a main gig because that has become difficult. These are people that make $20-40/hr and accustomed to living inexpensively.
The entire system is caught in a vicious cycle. Restrictions on businesses left them in zombie half-open/half-closed states that destroyed their staffing for the last 18 months. Employees and employers adapted to the reality that aimless government mandates would almost arbitrarily change their staffing requirements on a week by week basis. Employee behavior changed to diversify their exposure to this risk, spreading a handful of hours across a large number of businesses. Inability to reliably staff means businesses are significantly reducing opening hours, which means that employees that do want regular 40 hours are having a harder time getting them even though businesses have few restrictions now. Because it is too difficult to coordinate across multiple part-time jobs, most limit it to a manageable subset that pay enough to pay the bills; even though they are making less than before they've learned to live in this new reality somewhat comfortably. Also, many service workers left the city and moved back home during this time to save money, and it still doesn't make much sense for them to move back.
At least in my city, the various business closures and restrictions over 18 months broke a metastable economic equilibrium and we are now stuck in a new equilibrium where even well-paid workers have their hours fragmented over multiple jobs. Everyone is finding it difficult to reverse this situation because it doesn't make economic sense for anyone individually because it exposes them to a lot of risk -- everyone would have to change their behavior together. I expect things to return to normal eventually, the current situation profits neither employers nor employees, but it will take a while. There is an interesting economic lesson here.
The entire system is caught in a vicious cycle. Restrictions on businesses left them in zombie half-open/half-closed states that destroyed their staffing for the last 18 months. Employees and employers adapted to the reality that aimless government mandates would almost arbitrarily change their staffing requirements on a week by week basis. Employee behavior changed to diversify their exposure to this risk, spreading a handful of hours across a large number of businesses. Inability to reliably staff means businesses are significantly reducing opening hours, which means that employees that do want regular 40 hours are having a harder time getting them even though businesses have few restrictions now. Because it is too difficult to coordinate across multiple part-time jobs, most limit it to a manageable subset that pay enough to pay the bills; even though they are making less than before they've learned to live in this new reality somewhat comfortably. Also, many service workers left the city and moved back home during this time to save money, and it still doesn't make much sense for them to move back.
At least in my city, the various business closures and restrictions over 18 months broke a metastable economic equilibrium and we are now stuck in a new equilibrium where even well-paid workers have their hours fragmented over multiple jobs. Everyone is finding it difficult to reverse this situation because it doesn't make economic sense for anyone individually because it exposes them to a lot of risk -- everyone would have to change their behavior together. I expect things to return to normal eventually, the current situation profits neither employers nor employees, but it will take a while. There is an interesting economic lesson here.