The pandemic started 2 years ago and Erie's job market still isn't back to normal (2024)

A glimpse at the latest employment numbers teases that Erie's worker shortage, a product of the coronavirus pandemic, changing perspectives, and what's been called the Great Resignation, might be drawing to an end.

A recent employment report from the U.S. Bureau of Labor Statistics provides some evidence of an improving situation. The U.S. unemployment rate dipped to 3.6% in March as nonfarm employment climbed by 431,000. Closer to home, the number of people holding down jobs in Erie County rose by 2,800 in January.

But a closer look at those numbers, combined with discussions with business owners and the ongoing presence of help-wanted signs, suggests something different.

Here, in Erie, "The challenge is still there," said Jake Rouch, vice president of economic development for the Erie Regional Chamber and Growth Partnership.

"Most employers are figuring out ways to find workers and get new bodies in, but it is a significant struggle," Rouch said. "Positions are being filled and it's moving in a better direction, but the challenge is still there."

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Just ask Jessica Inthavong, one of the four owners of Kao Thai, a restaurant located at 2430 W. Eighth St., about the challenge of finding people.

For months now, Kao Thai has been trying without success to hire between four and six people. It might not sound like much, but it's a challenge they haven't been able to meet.

"We were good for the first six months (of the pandemic), "Inthavong said. "Then slowly, but surely, people have left. The big problem is they can go to a big place and make more money. We can't compare with what they can make other places."

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With a sprinkling of hired help, the group of four owners has made it work so far by taking on shifts in the kitchen and by waiting tables. Even then, there aren't enough people to serve more than a limited number of people in the dining room.

Their temporary solution is running on borrowed time, Inthavong said.

"To be completely honest, we are looking at possibly closing," she said. "We have owners who are able to work here. But the goal was not for them to be here as full-time employers. If we don't have four owners in the kitchen then we don't have enough kitchen staff. And some of our owners are ready to retire. To have to work 12 hours a day is just too much."

Why not raise wages?

Inthavong, who handles the finances for the restaurant, said the business doesn't generate the kind of money needed to pay a higher, more competitive wage.

"We are proud of what we have been able to do, but the money just isn't there," she said.

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Raising wages

A long and growing list of other local businesses, however, have found themselves with no choice but to raise wages.

Waldameer Park & Water World typically expands its staff to about 600 people during the heart of the summer season. In 2021, however, efforts to build staff came up short, with an employee count that hovered around 400, said Steve Gorman, who is president of the park.

That led to the park being closed on Wednesdays. And it left Gorman and owner Paul Nelson with the nagging feeling that they didn't have enough people to run the park the way they wanted.

"Every day we were short-staffed," Gorman said.

As of March 30, recruiting efforts had already begun for the 2022 season, with about 150 employees signed on to work. Gorman and Nelson had hoped to see more by this time, but they are hopeful that higher wages and new benefits will make the park a more attractive employer.

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"We are going to advertise a lot more, and we have raised our wages quite a bit compared to what we used to pay," Nelson said.

Gorman said wages are up as much as 30% to rates as high as $15 an hour for certain positions. On top of that, employees who are able to stay for the entire season will receive a $1 an hour bonus at the end of the summer, worth as much as $400 or $500.

Waldameer is also offering other incentives, including discounts, staff parties, and the opportunity to earn free passes.

Nelson said he's hoping the combination of more aggressive advertising and better wages and benefits can help eliminate the staffing issues of the last two years.

"We never had a problem before," he said. "In fact, we had a waiting list."

Meanwhile, Lake City's AirBorn Inc., which builds precision electrical connectors and electronic components, has also raised wages as it moves forward with a plan, announced in 2019, to expand its facility and add as many as 250 employees.

"We have hired 200 people since the expansion, but we have had some level of turnover," said Michael Monico, director of operations for the Lake City plant.

In an effort to reduce turnover and attract more employees, the plant has raised its hourly rate by about 20% to $15 an hour, he said.

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It seems to be working. The facility, which now has about 330 employees, has hired 50 since February and hopes to hire another 50 to 60 people in the next few months.

"It definitely has been a challenge, but it's getting better," Monico said. "Since the end of January, we have had much greater success (at hiring) than we did at the end of last year. We are looking over the next three months. Our goal is to have people hired by the end of June."

What the numbers say

The most recent monthly jobs report from the state Department of Labor & Industry suggests that hiring should be getting easier to do.

That report shows that the civilian labor force — the number of people who are either working or looking for work — climbed from 120,500 in December to 126,100 in January.

The numbers, along with an increase in overall employment in January, including a seasonal return to work for educational employers, point to some positive signs, said Lauren Riegel, a labor and business analyst for the state Department of Labor & Industry.

But it could be a mistake, she said, to read too much into what seem like encouraging numbers.

The latest numbers suggest a sudden departure from what's been a longtime trend. And as such, it's important to recognize that one month's numbers are likely outliers.

"I wouldn't put too much stock into that," Riegel said, noting that comparisons are being made to December numbers that haven't been subjected to the annual benchmarking process that often results in adjusted figures.

Riegel said a better comparison might be to compare the size of the seasonally adjusted labor force before the pandemic began in January of 2020 to the size of the seasonally adjusted labor force in January of this year.

Those figures show a decline from 129,900 people to 123,600.

It's more evidence that what's been called the Great Resignation continues, Riegel said.

"It's a fairly dramatic decline from last January to this January," she said.

Marc Turner doesn't claim to know the reasons for the employee shortage that has persisted long after the federal government ended expanded unemployment compensation. It was a widely held belief that bigger unemployment checks were keeping some people on the employment sidelines.

But Turner, the owner of Career Concepts staffing service, said the problem persists.

Conditions have improved slightly since last summer when Career Concepts had more than 800 unfilled jobs. But the worker shortage continues. Turner said he recently had 690 open positions.

"There is a crazy shortage. There is no denying it," Turner said. "You can (try to) figure out whatever the reason is."

Higher wages may have helped some employers attract talent, but it's not a foolproof approach. Turner said just a couple of years ago many entry-level jobs in Erie were paying between $8 and $10 an hour.

"Now, it's $14 to $16, which is just crazy," he said.

Prospective employees remain selective

Higher wages mean more incentive to work. But many prospective employees remain selective.

"There are a lot of folks who will try a job, and if it doesn't really fit for them they just don't show up the next day," Turner said.

Turner said his company works to match as many people with jobs as possible.

"From our standpoint, we like to engage verbally and find out what they are looking for, really trying to show them the personal and the direct touch versus going on Indeed and clicking on 30 applications and waiting," he said.

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It's clear that Turner is discouraged by the state of the workforce.

"It's unfortunate," he said. "It's a level of reliability that has sort of slipped away from this generation and it's getting worse. I can't imagine it getting much worse. I would say we are at the low ebb right now."

Good employees who show up and work hard have never never been more valuable.

"We need to appreciate our employees and job candidates who do that well," he said. "Those are the ones that rise to the top. For those who are looking, if you can demonstrate 'I am committed, I'm not going away.' It does matter. That's worth its weight in gold."

Contact Jim Martin atjmartin@timesnews.com. Follow him on Twitter at @ETNMartin.