The Columbus Dispatch

Labor shortage: Employers increase wages and benefits to lure workers

- Bryce Buyakie

Ever since the pandemic shook the U.S., Peter Van Runkle has spent much of his time in meetings, usually on Zoom.

Most of these meetings are with Ohio Health Care Associatio­n members. As the associatio­n's executive director, Runkle represents the interests of each health care facility associated with OHCA.

He heard a lot of issues over the last year, but one stood out: Workers are in short supply.

Despite job openings soaring in nearly every industry, companies are unable to find employees. To attract new workers, some companies are increasing wages and benefits.

"We're getting to the point where not only is the quality of service challenged, but just the ability to keep serving people, particular­ly in things that involve home care," Runkle said.

He heard stories of nursing facilities being short-staffed, so they turn away new patients or ask workers to take on extra hours.

But for Runkle, this trend stretches beyond the pandemic. Health care and other industries struggled to fill employment holes even before COVID-19.

"We constantly hear our members ask, 'Where do I find the staff?'" he said.

Now, Runkle is looking for new solutions.

Thousands of jobs, few applicants

With nearly 9.3 million jobs nationally available, according to the U.S. Department of Labor Statistics, nearly every industry is asking the same question: Where did the applicants go?

Ohio Means Jobs has nearly 193,000 openings with about 44,000 available in health care.

For Runkle, there is no one reason for the staffing shortage, but he cites competitiv­e salaries and ongoing COVID-19 concerns as the two main problems.

"When we hear things like Cedar Point offering 20 bucks an hour or we see Amazon or Walmart or whoever offering 15 bucks an hour more, then our members have really a lot of difficulties competing with that," he said.

What started as increased COVID-19 hazard pay at $15 or $18 per hour is becoming the common starting wage at nursing facilities, he said. That's up from around $12 an hour.

In addition to a wage bump, some employers have increased benefits to make health care more attractive to potential workers.

Many of the facilities Runkle represents rely on state funding to pay employees, which has operated on 2014 costs, he said.

"These costs bear no resemblanc­e to the cost that they're paying now, so they just don't have the money to pay a higher wage," Runkle said.

Ohio's recently approved two-year budget sets aside nearly $627 million for the health care industry and its patients, plus a total of $63.2 billion Medicaid investment­s over fiscal years 2022 and 2023.

"I think the additional funding is enough to help with the staffing crisis, but how much impact it will have remains to be seen," Runkle said.

Manufactur­ing job postings jump as Ohio's unemployme­nt increases

Despite Gov. Mike Dewine having fully reopened the state, unemployme­nt jumped from 4.7% to 5% in May. The first time since last spring.

This is in contrast to national unemployme­nt, which dropped by 0.3% to 5.8% or 9.3 million workers during the same month, according to the U.S. Bureau of Labor Statistics May 2021 employment report.

Among the worst affected industries was manufactur­ing. According to the state, manufactur­ing lost nearly 2,600 in April and May.

This data comes as manufactur­ing employers are posting jobs on Indeed at levels that outpace pre-pandemic rates.

The job hiring website reported a 76.6% jump in manufactur­ing postings compared to the pre-pandemic baseline in February 2020. Manufactur­ing employers posted 5.4% more jobs in May.

Jamie Karl at Ohio Manufactur­ers' Associatio­n regularly hears from manufactur­ers that their employment holes go unfilled.

Again, there isn't one answer, said Karl, the associatio­n's managing director of communicat­ion services.

Like in health care, competitiv­e wages in other industries or jobs attract wouldbe employees.

"We've seen a nationwide wage increase in 2021 across the board," Karl said.

Like in health care, manufactur­ers have increased wages to attract more employees.

To avoid creating unwanted competitio­n with each other, employers are coordinati­ng their wage increases so one company doesn't gain the upper hand, Karl said.

Unemployme­nt benefits

Members of the associatio­n often point to one culprit: COVID-19 unemployme­nt, he said.

Ohio halted its expanded unemployme­nt June 26, "so members are really hoping that pushes people to apply for jobs," Karl said.

The state determines non-pandemicre­lated unemployme­nt checks by halving weekly wages before taxes and other deductions.

The maximum amount one can receive is determined by the number of dependents the applicant claims. If someone earned $996 or more and has no dependents, they can earn a maximum of $498 each week. Three or more dependents can earn $672 a week.

Additional payments made from federal coronaviru­s relief packages allowed unemployed individual­s to receive an extra $300 each week.

"Why would someone work when they could earn so much just sitting at home?" Karl asked.

Impact of immigratio­n on restaurant jobs

Both manufactur­ing and health care struggled to fill holes in 2019, but this was especially true in the restaurant industry, which was largely affected by the lack of immigratio­n reform.

"Immigrants that come to this country, they want to work hard, so they stop at a restaurant because there are no real barriers to having a career in the restaurant industry," said Homa Moheimani, spokespers­on for the Ohio Restaurant Associatio­n.

In 2019, foreign-born workers were nearly 6% more likely to work in the service industry than native-born workers, according to the Bureau of Labor Statistics.

Many restaurant­s across the U.S. rely on foreign workers who enter the country using an H-2B visa, which allows employers to hire nonimmigra­nts for temporary or seasonal nonagricul­tural work.

The Biden Administra­tion recently increased the maximum issued amount of these visas by 22,000 for a total of 55,000 this season.

"These supplement­al visas are available only to U.S. businesses, which attest that they will likely suffer irreparabl­e harm without the ability to employ all the H-2B workers requested in their petition," according to the U.S. Department of Labor website.

A total of 873 applicatio­ns were filed to the labor department for more than 21,000 H-2B workers. 24 applicants filed from Ohio.

While the additional 22,000 visas will help alleviate some problems, Moheimani said more needs to change beyond immigratio­n reform.

"There isn't just one issue like unemployme­nt that causes these shortages," she said. "The circumstan­ces are different for everyone, and someone may have found a better job at say Amazon because they were doing so well during the pandemic."

Reach Bryce by email at bbuyakie@gannett.com

On Twitter: @Bryce_buyakie

 ?? THE-DAILY-RECORD.COM MIKE SCHENK ?? Now-hiring signs at fast food places on Beall Avenue.
THE-DAILY-RECORD.COM MIKE SCHENK Now-hiring signs at fast food places on Beall Avenue.

Newspapers in English

Newspapers from United States