Big Retailers, Delivery Firms Face Struggle to Find Holiday Workers

[Zippyjuan]

http://www.wsj.com/articles/ups-holi...ear-1442326978

For the past two years, Amazon.com Inc., Wal-Mart Stores Inc., Target Corp. and other big retailers have been flinging up warehouses and distribution centers across the country to get their online orders to customers faster.

In the coming holiday sales season, that building spree could come back to bite them—and the companies that deliver their packages.

With the nation’s unemployment rate at a seven-year low as holiday hiring begins to pick up, some retailers and logistics contractors are already struggling to find enough seasonal workers to keep their new facilities humming. Soon, United Parcel Service Inc., FedEx Corp. and smaller regional delivery firms will be facing the same problem.

Employment agencies for retailers and logistics companies say they are having trouble finding warehouse workers to stock early holiday inventory and employees to train for work in fulfillment centers, where holiday orders will be packed and shipped.

Few could have predicted the nation’s unemployment rate would fall to 5.1%, as it did last month, amid such red-hot growth in e-commerce. As a result, retailers and delivery companies expect to have to raise starting pay in some places.

For last-minute cybershoppers, the labor shortage may make the coming holiday season even riskier than the previous two, when Amazon and other retailers gummed up the works by trying to ship too many packages in the final days before Christmas.

“Last year was the first year that companies felt some challenge [finding workers], and this year they’re feeling it even more,” said Craig Rowley, leader of the retail practice at Hay Group, a provider of human-resource services. “Between the low unemployment rate and, hopefully, a good Christmas, it’s going to be tough.”

The crunch has spurred some retailers to start holiday hiring earlier than usual. And they are trying to figure out how to be flexible enough to accommodate employees who can only work certain hours or shifts.

Starting warehouse wages, which have been stagnant for years, have been rising by about $1.50 to $3 an hour to attract workers in some markets, according to logistics staffing firm ProLogistix. The firm said that in this holiday season, temporary jobs—especially at e-commerce companies—start in a range of between about $11 and $13.50 an hour, up from between about $9 and $11, though it varies significantly by region.

http://www.pymnts.com/news/retail/2016/retailers-labor/

15,968,000 | The number of people working in the retail industry, up 2 percent from a year ago

738,800 | The overall number of expected hires this holiday season

77,500 | The number of temporary workers that Target is adding in its stores and fulfillment centers

$17.92 | The average cost of an hourly retail employee, according to the Bureau of Labor Statistics

4.9% | The percentage of unemployed in the U.S. in August, a drop of 5.1 percent from a year ago

[silverhandorder]

Zippy is a communist that likes low paying seasonal jobs.

[oyarde]

They might need to pay more to fill openings .

[Zippyjuan]

Zippy is a communist that likes low paying seasonal jobs.

Maybe we should raise the minimum wage so that they pay more. We need more high paying jobs- right Komrade?

[PierzStyx]

I'm glad to see work rates up. The real fear is that most of these jobs are low paying ones though. Lots of people stuck in middling jobs.

[Zippyjuan]

Interesting to see people consider more jobs bad unless they pay a lot. If you don't have a job, a paying job is a good job. High paying jobs in the past have been government, Union, banking, or tech and due to competition tech is paying a lot less.

[fisharmor]

due to competition tech is paying a lot less.

Not necessarily true. Tech pays as good as it always has, provided you are actually good at it.

[oyarde]

Interesting to see people consider more jobs bad unless they pay a lot. If you don't have a job, a paying job is a good job. High paying jobs in the past have been government, Union, banking, or tech and due to competition tech is paying a lot less.

Any job is great for a young person without one . I do not know if things have changed , but people like UPS , Fed Ex etc do not hire kids . They want real workers .

[euphemia]

Zippy is a communist that likes low paying seasonal jobs.

Zippy is also very well off. He doesn't realize that some people depend on seasonal work because they have regular jobs and need second jobs to pay for Obamacare, deductibles on Obamacare, student loans, and a truckload of other stuff.

[Zippyjuan]

With the employers having difficulties finding workers to fill those positions, it does not seem there is a huge demand for the jobs.

I was once out of work for almost a year and was happy to have a job paying minimum- just so I could pay my bills. Took three of my weekly checks just to pay rent. I have done seasonal work. I have worked hard to make my way up and yes, do now make a comfortable (for my expense level) income after 20 years at my current job.

[Spikender]

Available jobs mean nothing to welfare queens and self-declared NEETs, especially not a seasonal job that would require human interaction and physical labor.

[silverhandorder]

Maybe we should raise the minimum wage so that they pay more. We need more high paying jobs- right Komrade?

No first we should stop listening to you. Oh wait we don't now. Second I know you want higher minimum wage because you are a communist.

[DamianTV]

Zippy is a communist that likes low paying seasonal jobs.

Yes, but but but but, but... uh, but, uh (hold in a second, trying to come up with some way to spin this so it sounds good) um, but, uh, oooh, okay, got it, er, no, wait, I lost it. Dammit.

Perhaps the people are now refusing to work slave jobs for slave wages and are pissed that there is no true financial path to success.

Its called the American Dream for a reason: because you have to be ASLEEP to believe it.

[silverhandorder]

On a serious note if they can't find anyone to work for what they offering that means they can't offer more which is a bad sign. Also it's nice to see our ideological opponents sink to the point where they find something good with seasonal jobs. I guess the rest of the year we simply hibernate.

[Sola_Fide]

Purely anecdotal, but in my business there is a dearth of employees as well. When you drive down the main drag of my city, every business (including mine) has a "now hiring" sign.

[tod evans]

Purely anecdotal, but in my business there is a dearth of employees as well. When you drive down the main drag of my city, every business (including mine) has a "now hiring" sign.

Are you offering food/housing and medical + a stipend?

Uncle is........

[DamianTV]

Maybe we should raise the minimum wage so that they pay more. We need more high paying jobs- right Komrade?

How about instead of trying to print up more money, we restore the Value of Money by returning to a Sound / Honest Money System that does NOT enable the theft of the value of money by distorting the balance between Quantity (increase in Minimum Wage) and its Purachasing Power (value)?

[Mike4Freedom]

Maybe we should raise the minimum wage so that they pay more. We need more high paying jobs- right Komrade?

No, since employees are in higher demand the companies need to raise wages. They have been doing that, just not enough. At UPS the starting wage went from 10 to 10.15 for seasonal workers, it probably needs to be at least 12 - 14.
A government law will not make this situation better.

[phill4paul]

No, since employees are in higher demand the companies need to raise wages. They have been doing that, just not enough. At UPS the starting wage went from 10 to 10.15 for seasonal workers, it probably needs to be at least 12 - 14.
A government law will not make this situation better.

I've worked at a UPS hub loading trucks. It's why my back has been wrecked since age 23 after injuring it on the job. I would not work there for $14 unless full medical was included. You can make $10 an hour working at Chik-fil-A.

[CaptUSA]

Big Retailers, Delivery Firms Face Struggle to Find Holiday Workers

Careful Zippy...

This is a natural sign that the velocity of money is going to pick up. And you know what happens, then...

[AZJoe]

Interesting to see people consider more jobs bad unless they pay a lot. If you don't have a job, a paying job is a good job. High paying jobs in the past have been government, Union, banking, or tech and due to competition tech is paying a lot less.

Want to really see some higher pay? End the income tax [tax on jobs] and watch take home pay immediately increase 25 to 50%. See business profits increase by even much greater amounts. As a result see more investment into business - better products, betters stores, better services, lower prices, better jobs, more commerce, more hiring. Greater demand for employees, yielding even higher wages and better benefits. More income, more jobs, better products, better services, lower prices - Wow! Its like unleashing an automated prosperity making machine.

[phill4paul]

Want to really see some higher pay? End the income tax [tax on jobs] and watch take home pay immediately increase 25 to 50%. See business profits increase by even much greater amounts. As a result see more investment into business - better products, betters stores, better services, lower prices, better jobs, more commerce, more hiring. Greater demand for employees, yielding even higher wages and better benefits. More income, more jobs, better products, better services, lower prices - Wow! Its like unleashing an automated prosperity making machine.

But what about muh roadz?

[CaptUSA]

Want to really see some higher pay? End the income tax [tax on jobs] and watch take home pay immediately increase 25 to 50%. See business profits increase by even much greater amounts. As a result see more investment into business - better products, betters stores, better services, lower prices, better jobs, more commerce, more hiring. Greater demand for employees, yielding even higher wages and better benefits. More income, more jobs, better products, better services, lower prices - Wow! Its like unleashing an automated prosperity making machine.

I disagree. Spending is the real tax. The income tax is just one method of collecting it. The spending is the real tax on society. As long as government spending continues, it will continue to be a drag on the economy, regardless of the method of transfer. It's like thinking your disease will go away by treating one of the symptoms.

If you completely got rid of income taxes, but kept the spending the same, you'd still have the same drag on the economy - it would just show up in other forms of capital restrictions. But if you cut spending and kept the income tax the same, resource allocation would be more in line with demand, tax revenue would increase, debts could be paid down, and the wealth dividend would be exponential. (obviously, you'd want to cut taxes, too, but that's a secondary concern.)

[juleswin]

I disagree. Spending is the real tax. The income tax is just one method of collecting it. The spending is the real tax on society. As long as government spending continues, it will continue to be a drag on the economy, regardless of the method of transfer. It's like thinking your disease will go away by treating one of the symptoms.

If you completely got rid of income taxes, but kept the spending the same, you'd still have the same drag on the economy - it would just show up in other forms of capital restrictions. But if you cut spending and kept the income tax the same, resource allocation would be more in line with demand, tax revenue would increase, debts could be paid down, and the wealth dividend would be exponential. (obviously, you'd want to cut taxes, too, but that's a secondary concern.)

Think Ron Paul said it in one of the debates. People should understand that as long the govt keep borrowing and spending, they would end up paying it back with monies gotten somehow from the economy and the people that support the economy. This is why it is not you don't just want to elect someone who cuts taxes but also someone who cuts spending.

[juleswin]

I've worked at a UPS hub loading trucks. It's why my back has been wrecked since age 23 after injuring it on the job. I would not work there for $14 unless full medical was included. You can make $10 an hour working at Chik-fil-A.

I worked there in the early 2000 (my first job) and at the time it only paid $9 for loaders and after 6 months of that back breaking, risk of heat stroke of a job, I left that for short stint at burger king which paid $8.20 and was easy as $#@!. You have to also consider that a day's work was only 5 hrs and its not like you can come back from it and do something else. I cannot imagine how those people are able to furnish their workforce seeing as there are so many better options available.

Loaders at UPS is one of those jobs machines cannot takeover fast enough.

[phill4paul]

I worked there in the early 2000 (my first job) and at the time it only paid $9 for loaders and after 6 months of that back breaking, risk of heat stroke of a job, I left that for short stint at burger king which paid $8.20 and was easy as $#@!. You have to also consider that a day's work was only 5 hrs and its not like you can come back from it and do something else. I cannot imagine how those people are able to furnish their workforce seeing as there are so many better options available.

Loaders at UPS is one of those jobs machines cannot takeover fast enough.

Yep. I went to Dominoes as a delivery driver and made twice what UPS payed me when you included tips.

[scm]

Lost me @ "With the nation’s unemployment rate at a seven-year low"

[euphemia]

They might need to pay more to fill openings .

Seasonal work can pay well and lead to other opportunities. A lot of people never learned customer service or money handling, as I discover every year when our seasonal people come through. It takes a certain skill level to do that.

[Mike4Freedom]

I've worked at a UPS hub loading trucks. It's why my back has been wrecked since age 23 after injuring it on the job. I would not work there for $14 unless full medical was included. You can make $10 an hour working at Chik-fil-A.

Been there for 16+ years now. I am in delivery now. In the hub really sucks, lol. You should see it now. Everyone orders furniture, dog food, cases of water.

[PositiveBodyImage]

This is why we can't have racist things like E-Verify.