A permanent consequence of the pandemic seems to be labor issues for private businesses and government. These matters will be thrust into the spotlight in the coming months as budgets get reviewed and seasonal hiring efforts kick into gear.
It’s finding the right help at the reasonable rate that works for all that’s the current rub for most decision makers in most private and public sectors. How far to increase hourly rates and salaries in efforts to stabilize vacancies is on the minds of many and will to be front and center for years to come.
During an interview this week, City Manager Terry McGean was asked about the biggest challenge he is facing one year into his new role in Ocean City after many years as the city engineer.
“The biggest challenge has been the inability or difficulty in getting part-time and seasonal employees,” McGean said. “The model that we’ve used for a hundred years is becoming less and less sustainable, whether it be lifeguards, whether it be part-time paramedics, whether it be seasonal police officers. In my opinion, for some of those positions, we just have to shift away and move to a more full-time model. And how we do that, and how we do that affordably has probably been my biggest challenge.
This sort of creative thinking will be needed, although the challenges facing small businesses and governments do vary in severity and funding requirements.
On the state level, recognizing labor as a prime economic worry currently, Maryland Gov. Wes Moore is proposing jumping the minimum age to $15 per hour two years ahead of schedule from the cur-rent $13.25/hour. Additionally, Moore is advocating for a cost of living adjustment for inflation with a 5% annual cap. In other words, routine 5% increases to a $15/hour minimum wage means a rate of $17.25/hour by the third year.
These sorts of decisions require balance and drastic moves like the one outlined by Moore are not the answer. Extreme moves like proposed on minimum wage will end some small businesses and lead to governments increasing property tax rates. Balance is needed.
