Finance at your Fingertips by Moses Ayiku, Jr. MBA OP/ED
The job market is heating up. The unemployment rate is expected to fall to about 5.7%. More companies are looking to hire, and some are paying sign on bonuses as well as increased wages to get the personnel that they want.
While there continues to be fear of inflation, the overall sentiment is that the economy is moving towards pre-pandemic levels. We are still grappling with the impact of the pandemic on supply chains. This means that going forward we most likely will see signs of shortages of goods sporadically as inputs are unable to be supplied at current demand levels. As the economy continues to recover, the supply chain issues will be resolved, and this will in turn reduce the cost push inflationary pressures.
Wage growth has been upwards but at a limited pace and stage. While some companies are offering higher wages, they are muted by the realities on the ground. Take for example the hospitality industry in a state like Georgia. The bulk of restaurants for example are offering $7.25 per hour as the wage. It is no surprise then that such positions are full of young teenagers and not adults.
The U.S. economy has been harsh on employees for a while. Minimum wages throughout the country are from economic, realistic or tempting. This has pushed many job seekers to find alternative types of employment. One of the options that has attracted many adults in various states is the food delivery business. Companies such as Door Dash and UberEATS continue to attract many adults.
Why are so many people interested in food delivery? The job provides a quick turnaround in terms of applications. For example, one could sign up for Door Dash today and the process would take about 30 minutes or less. Further, one could start working the same day you apply!
There are no time consuming and stressful interviews. Background checks are conducted in minutes. Bank accounts are linked to your account immediately. Once you start working, whatever money you earn is deposited in you bank account every Monday without fail.
In addition, delivery drivers can set up their own times of operation. The drivers almost operate as independent businesses! They decide which orders to take and when. There is no nagging boss.
With UberEATS, the company provides a variety of financial perks that make it worthwhile for drivers to expand their hours of operation. All these factors make the food delivery business attractive. We must point out that during the pandemic many people took advantage of food delivery services.
Even as the pandemic recedes with increased numbers of vaccinated people, this habit seems to be here to stay. More and more people are enjoying their newfound freedom and going out to eat with friends and family. At the same time, the online orders are still rolling in.
The current situation in the restaurant industry in some states is intense. There are long lines waiting to be served in the drive-thrus. Indoors, there are also lines at times of people prepared to wait upwards of one hour to get a table to eat.
Restaurants are still using an old business model that is no longer viable. They need employees desperately yet are not able to recognize the need to adjust to take advantage of the increased demand that they are enjoying. Existing staff members are overstretched. Customers are not being given the best treatment because of these bottlenecks.
Some restaurants are offering sign on bonuses to new employees. Others such as McDonalds are offering increased wages. Another group of restaurants are also improving work conditions.
Unfortunately, these positive improvements are not across the board. Even during a dire shortage of hands, some restaurants are still using the old processes, for example having two interviews for menial staff. Online applications for some of these basic positions such as servers and cooks take hours to complete. This makes no sense. Why waste time on all these steps that could be easily shortened, especially when there is a clear shortage of personnel?
According to the June Jobs report, U.S. employers added about 850,000 jobs. Average hourly wages have increased 3.6% since last year. The unemployment rate settled at 5.9% in June.
This is the time for many employees to assess their job options. Companies are vying with each other to hire the best. Here are a few suggestions for those interested in seeking job options at this time.
· Do not take the first offer unless it immediately exceeds by far your goals including salaries, perks, sign on bonuses and benefits etc.
· Scan the market to get a sense of the general remuneration packages for your job area.
· Investigate the options out there even if you have a job. Why? Because some of the opportunities may provide enough reward for you to seriously consider it.
· Remember, the market will not be like this forever.
If you are working, explore the benefits for current staff. Several companies are improving overall conditions for existing staff. The bottom line is that they would prefer to keep existing staff than to lose them and incur increased costs of operation. Your firm may be one of such firms. The situation is dire for some industries. Several of them have had to turn away customers or shut down due to a shortage in staff. It is indeed an employee’s market.
Lemonade Stand for Kids!!!
The latest to enter the market is a virtual lemonade stand for kids! Mighty.com is an E-Commerce site where kids can operate their own store front. Online money-making opportunities are limited for kids and this app attempts to resolve this issue. Mighty is a version of Shopify for kids. On this platform kids can sell homemade items that they make.
Please feel free to share with me your questions and experiences on stocks and investments. I will do my best to respond, and, in some cases, I will write on some of these questions.
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