Gain a Better Understanding of the Labor Shortage in Central Oregon

If you’ve been eating out, or grocery shopping in the last six months, you’ve likely noticed the slow wait times, stressed-out staff, and other effects of the labor shortage in Central Oregon.

And if you’re tuned in to the national situation, you know that this is a national issue, not just a local one. For many of our tenants in the properties managed by our team at Northwest Key, this time has created a lingering sense of urgency around hiring the right people and moving through the effects of the pandemic to a time when ‘business normalcy’ is back in place.

We feel your pain and know how difficult it can be when your staff and/or you are stretched super thin. The demand seems to be there, but the labor market hasn’t bounced back!

This quarter we’re taking a closer look at what’s causing the labor shortage and when we can anticipate getting back to business as usual in Central Oregon.

Decreasing Pool of Willing Workers

Forbes recently published an article on this topic and pointed to the undeniable shrinking pool of willing workers. Some have blamed this on the extended unemployment benefits implemented by the Federal Government during the height of the pandemic, and some pointed to a decrease in immigration visas being approved, while others have suggested that that minimum wage is below the poverty line, and needs to be raised in order to entice workers in front-line, minimum wage jobs. Read the Forbes article for more on this topic.

The Pandemic & Unemployment Benefits

It’s hard not to draw a connection between the unemployment benefits that increased in 2020, and the severe decline in available workers. And to be sure, some of what we’re seeing is a lag in businesses being able to open, and unemployment running out, but Insider wrote in a piece published recently that the labor shortage was a problem before the pandemic. The COVID 19 crisis may have just been the match that lit the fire of unwillingness. More importantly, many workers are exhausted by trying to make ends meet, working unreasonable hours at a less-than-livable wage. More on this topic is available via Insider’s article on the US labor shortage.

Locally, the Childcare Deficiency Matters

According to Central Oregon Childcare, before the pandemic, one in three children was in need of a childcare spot in Central Oregon. By their estimate, that number has only increased. If you are a parent with young children in Bend or a surrounding area, then you know firsthand how challenging it is to find childcare in this market. At least locally, it is reasonable to factor the childcare crisis in our area into the equation as to why some working families are choosing to stay home, rather than go back to work -- they just can’t afford it, or can’t find the needed care!

This may sound bleak, but there are things you can do now for your small business, whether you’re a tenant with a restaurant, coffee shop, boutique, or another customer-facing storefront, or a property owner trying to support your tenants. 

Develop Community Partnerships

Partnering with the Bend Chamber of Commerce, EDCO, or Opportunity Knocks -- along with other community organizations can help immensely with your recruitment efforts. Your effort can be doubled by their network and recruitment efforts on your behalf.

Raise Wages and Decrease Roles

One tactic that may help you combat the lack of labor can be to combine roles and raise wages for one role, instead of two. Of course, this doesn’t work for all types of organizations, but it may be a good stop-gap solution for your business until there is more clarity around the future of labor for customer-facing companies.

Get Automated

The more you can automate your business, the more efficient it becomes. With the shortage being what it is in the labor market, automation can be a good (at least short-term solution).

Here’s a great article from Venture Harbour on How to Automate Your Business in 5 Steps.

As ever, we are here to support and partner with you in your business, and property ventures. Please let us know how we can help!

Sincerely,

Dinah Green

Broker and Property Manager

Northwest Key Commercial Real Estate & Property Management