Job openings suggest pay hikes overdue

It’s a great time to be looking for work these days. ¶ Job openings and pay are rising, giving workers the upper hand. Folks who have long complained about the “1 percent” of earners while their own wages stagnate are finally getting some relief.

The number of job openings grew to 11 million in October, according to the U.S. Labor Department.

Meanwhile, pay rose 1.5% in the third quarter, the most on record dating back 20 years, the Associated Press reported.

The unemployment rate tumbled in November to 4.2% as some 1.1 million people said they found jobs — the government says the number of unemployment claims (184,000) in one week was the lowest in 52 years.

Job growth remained solid in areas like transportation and warehousing, thanks to the growth of online commerce.

Help wanted signs are everywhere.

Customers locally continue to see staff shortages and related changes at restaurants, stores and health care settings.

Local businesses report relying on family for help and seeing staff leave for betterpaying jobs elsewhere.

Workers left behind may be frazzled. Hospitals and school districts are having to get creative as illnesses force many to call in sick and substitutes can’t be found.

But labor shortages might be good news for workers. What if pay raises were just the start of a better work life?

The workers who have long toiled for low wages, some stuck at Ohio’s minimum wage of $8.80, are finally getting their due.

Higher-paying jobs can be found elsewhere, so they are leaving or employers are paying more.

Nationally, the Wall Street Journal reported last month that “private hourly earnings are up 4.9% year-over-year, and 12.4% among production level workers in leisure and hospitality.”

Some better-paying jobs are in e-commerce.

The Amazon hiring website says new workers in the Akron area can make up to $21 an hour and receive a $3,000 bonus.

The Amazon fulfillment center here employs 1,500 but is just one of a growing number of sites the online retailer has in Ohio.

In this environment, unions that promise to secure benefit packages and annual wage hikes are seeing victories.

Nurses in Colorado, Oregon, California and other states threatened to strike last month, Colorado Public Radio reported.

In a first for Starbucks, workers at a store in Buffalo voted to unionize.

Consumers are seeing higher prices, but that’s not necessarily because of wages. Raw materials for food are more costly and supply chain issues continue.

No doubt, companies are concerned about how wages will affect their earnings and stock prices. In the third quarter, the Wall Street Journal reported, the cost of such things as wages and benefits rose 1.3%, the fastest pace since at least 2001.

Meanwhile, the compensation of CEOs at large publicly owned companies has skyrocketed in the last few decades.

The left-leaning think tank Economic Policy Institute says “compensation of the top CEOs increased 1,322% from 1978 to 2020 (adjusting for inflation).”

The typical worker’s annual compensation grew 18%.

Even during the pandemic, CEOs’ realized compensation jumped 18.9%, EPI says. “Typical worker compensation … did rise 3.9%.”

Poverty is actually decreasing. Better wages, Social Security and government benefits are pushing poverty down, the Wall Street Journal reported Sept. 16. Economic policy response, a columnist argues, is helping the nation to recover better than it has in past recessions.

Poverty is down, wages are up. Sounds like good news to us.

Inflation concerns do trouble many of us, even those who’ve seen a pay increase. The government reported on Friday that consumer prices rose 6.8% in November, and the Associated Press reports that two-thirds of Americans are saying their household costs have risen since the pandemic.

As we get into the thick of the holiday season amid a rise in COVID cases and hospitalizations, we all may face longer waiting times, whether celebrating or seeking medical help.

For the workers who have chosen to face the crowds and accept the risk of getting infected, you have our deepest gratitude.

Now, here’s hoping that inflation doesn’t ruin any gains.