Labor market imitating housing

[Shaun @ Tru6]

A friend of mine in the hotel industry (international high end) just made a hiring offer for a director of purchasing position. He has multiple offers and will let them know later next week or following week.

Need to fill two positions, I can't hire anyone. Shop customers and vendors I've spoken with are having a hard time filling openings. I talked with one today, our plater, they can't fill 3 positions paying quite well for the work.

Anyone have some insights into the labor market right now.

[A930Rocket]

In the residential construction industry, it’s difficult to find reliable, skilled, hard-working people.

Everybody’s hiring but people are asking for crazy money. Some guys don’t even show up for the interview. Others are hired and don’t come in on the day they’re supposed to start. I’m guessing they found a higher paying job somewhere else.

I’m building it a small market, south of Charleston SC and that exacerbates the problem. That said, my coworkers in Charleston tell me the same thing.

My electrician told me he had one guy come in for an interview, but said he wanted over $100,000 a year to pull wire and trim houses.

[Tobra]

More like the labor market imitating the higher education market

[KNS]

Originally Posted by A930Rocket

Everybody’s hiring but people are asking for crazy money. Some guys don’t even show up for the interview. Others are hired and don’t come in on the day they’re supposed to start. I’m guessing they found a higher paying job somewhere else.

There is a huge pilot shortage right now, worldwide. I was reading the other day that the major airlines are experiencing the same thing - pilots are accepting positions and given a starting date to show up for new hire training. We're talking large salaries and some are simply not showing up.

[Crowbob]

So why is this happening?

Is the demand for goods and services so great that there’s not enough labor all of a sudden?

[Tervuren]

It isn't any one thing but a combination of several.

Look at labor force participation for one.
Then look at money supply for two.

Small sample size,
I know a lot multiple people in my age range that do not work.
They don't have kids.
But they have money supply.

[timmy2]

Originally Posted by A930Rocket

In the residential construction industry, it’s difficult to find reliable, skilled, hard-working people.

Everybody’s hiring but people are asking for crazy money. Some guys don’t even show up for the interview. Others are hired and don’t come in on the day they’re supposed to start. I’m guessing they found a higher paying job somewhere else.

I’m building it a small market, south of Charleston SC and that exacerbates the problem. That said, my coworkers in Charleston tell me the same thing.

My electrician told me he had one guy come in for an interview, but said he wanted over $100,000 a year to pull wire and trim houses.

Current Utilities Journeyman Electrician & Lineman Union wage in Pacific Northwest is from $52 to $63 an hour. Cannot find people to take the jobs. $10,000 to $25,000 signing bonuses too.
I’m a little worried for the future reliability of the electrical systems.
We can’t find good qualified people.
Averaging 2-3 hires that work out annually. Currently over 20 openings for each craft.

[bickyd]

Same in Canada. I am an unrestricted industrial electrician with 20 years experience with wind , gas, tunnel , mining , substation and generation experience. It is tough to find people with no ..... problems with the ethic and skill to advance. I am union but non union is now paying more for the skill. my last job was tunneling 8km through a mountain remotely at 13.2 kv distribution non engineered at average 108 hour weeks. not for the faint of heart but the demand is huge.

[look 171]

My kid's school just closed their last shop class only to be replaced with a lego type robotic class and computer driven design class. Ready for this..... animation. What a fooking joke, it starts in the schools. 6 years ago, they shut down their auto shop and turned that into a dance studio.

I have been looking for one or two qualify people who aren't afraid to work. Nothing. Ones that show up are a joke and they seem to do all the negotiations on hours and pay. This has been an on going issue with many of my subs that I talked to.

Where are these people going or where are they working in the mean time to make a living? Yet, we have a bunch of starving college students that are too pussy to get heir hands dirty instead, they rather work in coffee shops pouring coffee learning nothing of value but to say hello with a smile.

Out here, out public school aren't not pro trades. They are still talk down and look down upon. Who's going to maintain America?

[timmy2]

Our company attends career days with local schools. When I asked the school rep about electrical or electronics classes or other shop classes the reply was no, but they offer robotics.
I then asked why they wouldn’t encourage students to pursue the trades that are paying $100,000 plus a year? The teacher making $80,000 or less didn’t say a word….

[look 171]

Originally Posted by timmy2

Our company attends career days with local schools. When I asked the school rep about electrical or electronics classes or other shop classes the reply was no, but they offer robotics.
I then asked why they wouldn’t encourage students to pursue the trades that are paying $100,000 plus a year? The teacher making $80,000 or less didn’t say a word….

Problem with schools? They all have to sell to parents and the higher ups so they must look good with great sounding classes like robotics or medical magnets. Dumb parents buy into the names, principals look great, schools fill those spots and students gain nothing from it but to cut and screw a few pieces of alum channels together, attach a motor to a battery, play a few computer games, that's it. In the mean time, trade based companies are screaming for qualify or willing bodies to work. Older tradesmen are retiring with not too many young people entering the trades. No one in education seems to listen. That's typical with education folks. Young people entering college or work force aren't informed enough about the working world and these teacher have not a fooking clue what's going on out there in the work force. In the mean time, they are screaming about pay raises because the mechanic are making more money then them and have no degrees.

[timmy2]

It is even hard to get apprentices. 2 years of college electrical technology to get in. (Usually equivalent for entering engineering school at a 3rd year level)
Then 4 years hands on working in the craft and more trade specific trade school education throughout.

6 years minimum to become a journeyman with continuing education annually.

4 years to become a teacher. Guess it is easier to go that route…

[hcoles]

I think kids (on average) don't consider work that requires manual labor. What do they know? They know their cell phone and laptop. They don't know digging a ditch or even changing a tire. So given the choice of sitting at a desk staring at a screen for 40 years or plumbing repair - what will they choose?

[ckissick]

Here's a pretty good explanation.
https://www.richmondfed.org/press_room/speeches/thomas_i_barkin/2022/barkin_20220303

[sugarwood]

With labor, you get what you pay for.
If you don't pay enough, you get nothing.

[sugarwood]

Originally Posted by hcoles

So given the choice of sitting at a desk staring at a screen for 40 years or plumbing repair - what will they choose?

Most everyone, including Boomers, would pick the former.

[sugarwood]

Originally Posted by look 171

I have been looking for one or two qualify people who aren't afraid to work. Nothing.

What kind of pay are you offering?

[Superman]

Originally Posted by A930Rocket

. In the residential construction industry....

Originally Posted by A930Rocket

... he wanted over $100,000 a year .....

Originally Posted by timmy2

... Journeyman Electrician & Lineman .....

A housing development is going in behind me. Hispanic crews. They work their asses off and they know how to build houses. coming up like dendelions.

Union wages and benefits in King County:

Inside Electrician - $90.59
Lineman - $81.65

Plumbing - $94.69
Sheet Metal - $91.83

Elevator Constructor - $103.81

These approach $200K per year counting benefits. And they can't find people either.

Yes, the labor market is undergoing some changes.

[jyl]

https://www.vox.com/recode/23042785/the-great-resignation-older-tenured-higher-paid

Happening in white collar too.

[Superman]

Originally Posted by look 171

Problem with schools? They all have to sell to parents and the higher ups so they must look good with great sounding classes like robotics or medical magnets. Dumb parents buy into the names, principals look great, schools fill those spots and students gain nothing from it but to cut and screw a few pieces of alum channels together, attach a motor to a battery, play a few computer games, that's it. In the mean time, trade based companies are screaming for qualify or willing bodies to work. Older tradesmen are retiring with not too many young people entering the trades. No one in education seems to listen. That's typical with education folks. Young people entering college or work force aren't informed enough about the working world and these teacher have not a fooking clue what's going on out there in the work force. In the mean time, they are screaming about pay raises because the mechanic are making more money then them and have no degrees.

This is true. Also, young people simply do not want to pursue careers in the trades. I have made presentations to them in which I start with the wages and benefits to get them interested, which works. But then when I mention I am talking about trade work, I see the tops of their heads as they return to their phones. Young people interested in trade careers will benefit from increasing demand and decreasing supply. Earnings are robust, and those jobs cannot be outsourced.