Service Businesses and Labor Shortage: A “Gig” Problem?

small businesses labor shortage

In the year 2021 Business is a far stretch from what it was in 2018. Things have changed across the board. The list of changes would be too many to list but one that is perhaps at the top of the list as problems that we must face and address is the labor shortage that is hurting the economy as a whole, but small to medium businesses.

Small to Medium Businesses

Small to medium businesses rely on people to run the businesses. It’s hard to manage people and get them to do what you want them to do but what if you don’t even have the people? What a mess we are in as a culture. Suddenly it would seem that the bulk of the general population is independently wealthy.

Gig Economy

The “Gig” economy such as Uber, Lyft, and all the various app-driven self-employed contractor jobs have in fact taken a significant dent out of the workforce that is available for brick-and-mortar jobs. Most have found that the corporate grind is way more hassle than going and working for yourself by way of driving people and or food to people’s homes. Millions of people have been taken out of the workforce by these app-driven, technology advanced business models that create freedom for those who don’t wish to work inside and for a “manager,” but is that REALLY the issue?

In a recent poll, men, and women between 25 and 40 years old said they would rather make less money working for themselves than put up with Corporate America. Interestingly enough, 90% of them stated they would not have the ability or ambition to go start their own business.

In 2015, small to medium businesses were faced with a government-imposed increase in the minimum wage. This almost took down the Pizza giant Papa Johns. Simultaneously the Gig economy was being created. The big companies such as Papa Johns were now forced to hire more part-time employees or suffer great financial consequences of paying not only an incredible jump in salary pay, or hourly pay, but also health insurance was now becoming a government-imposed punishment on the self-employed.

As small to medium businesses were hit with this, the workforce went to gigs instead of traditional jobs for the idea of making more money on their own terms. It was the perfect storm.

Evolving is Essential

We must evolve, and times will change, but businesses today are suffering for people to come to work. At what point do we get a job somewhere to help our local businesses for the sake of keeping our economy alive, versus simply to earn a check? In going to restaurants today, the service is terrible, and signs are on the door that they are having a tough time keeping up with the situation of not having the staff in place to serve you.

While evolving is essential, we are in tough times when it comes to labor, hard labor, and entry-level jobs.

The good news is, never have we seen a time where someone with low skills could be hired at a bigger wage than today. Let’s get out there and work you all, the economy needs it.


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