The shock waves from the coronavirus pandemic caused a seismic shift in the labor force that could have some businesses vying for workers for years to come.
And despite arguments to the contrary, the problem isn’t being caused by expanded unemployment benefits as much as by an overall attitude change among some workers who are reconsidering whether some jobs are worth having, according to experts.
“COVID gave people the opportunity to get their head up from the grindstone and reevaluate their lives,” said Michael Hicks, an economist at Ball State University. “I’d be more surprised if there wasn’t a labor shortage, especially in the lower wage service industries.”
Though businesses throughout the South Bend area have signs up advertising the need for employees, some of those signs have been up for months — suggesting that managers haven’t been too successful in filling jobs advertised under $15.
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Why did people leave the workforce?
Hicks said a still undetermined number of workers simply retired during the pandemic, rather than continue to take unnecessary risks with the virus — especially in workplaces with a higher degree of possible exposure. And others were laid off from their jobs or were forced to quit to take care of children, who spent a good portion of the past 18 months studying from home.
Pressing that pause button during the height of the pandemic caused changes, even when life began to return to normal.
Some of those people at the lower end of the wage scale probably began wondering whether their job was worth having, especially if child care, transportation and other costs were factored in, said Hicks, adding that some of those people might have found jobs they can perform remotely or gig and gray-market jobs.
“A mother making $15 an hour might have figured out that that she was only clearing $4 an hour after other expenses were factored in,” said Hicks. “That’s not a lot to make up in order to break even and a whole lot less stress.”
Still others likely decided to return to school or to jump into a training program to gain the credentials necessary for a better paying job and a more certain future, especially with federal dollars available for assistance.
“I think there were people who were laid off for the first time in their lives and never want to be in that position again,” said Jeff Rea, CEO of the South Bend Regional Chamber of Commerce. “Some of them certainly went back to school or sought out programs to learn new skills.”
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Because of the increased down time they might have had during the pandemic when so many activities were curtailed, many others decided to try their hand at starting a new business, said Hicks, adding that applications for new businesses in Indiana are about double what they’ve been over the past 15 years.
“If there’s any good that came out of the pandemic, it did spur entrepreneurship,” said Rea. “I love entrepreneurial thinking, especially in young people.”
How new businesses help
A small business keeps local dollars in the community and ultimately could grow to provide jobs for others. In some cases, a small business can bring in outside dollars into the community, especially if it is an internet-based business offering goods and services to people outside the market.
Antonius Northern, inclusion project manager for the City of South Bend, said he’s seen a big increase in the number of people interested in starting their own business and that the city and other institutions offer classes, mentoring and other support for individuals interested in doing so.
“Because of the pandemic, people spent more time at home with family and had more time to think,” said Northern. Business ideas were discussed and tested, many of those revolving around skills, crafts and knowledge that people already had.
While some people decided to retire, start a new business or look for jobs with more flexibility, others simply took advantage of the high demand for workers in the RV and boat-building industries in the greater Elkhart Region.
“The RV industry is screaming for employees,” said Hicks. “If someone is getting $12 an hour in South Bend, a short commute gets them a lot more money, as well as benefits.”
A shift in the job market
The Economic Development Corp. of Elkhart County has estimated that the county has a net inflow of about 35,000 workers a day and many of those people are driving about 45 minutes each way for their job.
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That’s because most of those jobs now pay at least $20 an hour with benefits, and still those companies are using social media, advertisements, job fairs and recruiters to attract new workers — even unskilled — to the businesses that are struggling to keep up with demand for the recreational products they make.
“Businesses in Indiana have had it pretty good for decades,” said Hicks. “For them, it’s been a buyer’s market for most of the 20th Century.”
But now, the market has shifted in favor of workers so employers are being forced to boost wages, improve benefits and work conditions or simply offer flexible scheduling, among other things, to attract workers.
Some businesses won’t be able to fill vacancies if they’re unable to attract sufficient workers and it could lead to some permanent changes in the hospitality, restaurant and retail industries.
Daily maid service at a hotel or being able to buy a cheeseburger or a loaf of bread any time of day could become a thing of the past, said Rea. Restaurants might not open during times or on days when there isn’t sufficient business.
“We became used to getting anything we wanted, whenever we wanted,” said Rea. “Now I wonder whether reduced hours will become the new normal.”
‘Dope Lemonades’ is born
Laura Yahya, 41, had just delivered her daughter, Joy, on Feb. 11, 2020 as the pandemic was starting to become a significant health concern in the United States. After time at home with her daughter, she eventually decided she didn’t want to return to the normal grind and began thinking of different options.
“It was hard managing the schedules of kids, daycare and everything else,” she said. “I think I only lasted a week when I returned to my full-time job.”
Working as a virtual assistant or some other job that provided more flexibility was considered, but then she and her fiancée — Silas James — started discussing food-related opportunities they could possibly develop into a business.
Always with an interest in entrepreneurship, Yahya had taken various classes designed to encourage and support individuals with an interest in starting their own businesses. Eventually, she settled on the idea of offering an extensive menu of unique lemonade and iced-tea combinations that are generally poured over fresh fruit.
“We called it Dope Lemonades because that’s what people called it after they tried it,” said Silas, who works as a welder at Dexter Axle in Elkhart while also helping Laura with the business.
The couple officially unveiled Dope Lemonades at a community event in South Bend in May, and despite a slow start, there was eventually a line of people waiting to pay $5 to $8 for an upscale lemonade or iced tea.
Word got around, and eventually Dope Lemonades — www.dopelemondades.com — was being asked to show up at private events as well as other summertime festivals in the city and beyond. “We’ve already done more than 20 festivals and events and we’ve had inquiries from as far away as Cincinnati,” Laura said.
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She also is considering the possibility of setting up a more permanent location at the South Bend Farmers Market or some other location, and eventually the couple hopes to explore the possibility of Silas indulging his passion for cooking to go along with the beverage business.
“We’ve always been very family oriented,” said Laura. “This is about giving us more time to be together.”
‘Stepping outside the box’
Atrell Hagler was commuting from South Bend to a metals plant in Middlebury where he was making about $17.50 an hour when he started thinking about switching careers. “I just wanted more out of my life,” he said. “I didn’t want to be stationary.”
He heard about the high demand for truck drivers and inquired with WorkOne, which was able to use Cares Act money to help him earn a Class A commercial driver’s license through the Truck Driver Institute in South Bend.
That makes sense as CDL licenses, as well as almost any certification related to the medical field have been in super high demand for those seeking a change of pace, according to Tom Primrose, training director for the Northern Indiana Workforce Board.
Atrell hit the ground running, taking a job initially with U.S. Express early this year. But he’s now working as an independent driver transporting goods for Dollar General out of Marion, Ind. He’s more than doubled his income and now has his own business called Paper Trell Trucking.
“I challenged myself by stepping outside the box,” said Atrell, who has hopes of eventually hiring his own drivers. “This gives me confidence in the future.”
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