Is the current worker shortage laziness or common sense?

Many people blame the government’s paid benefits for the labor shortage—even though those payments were intended to help former workers make it through the pandemic and heightened inflation.

A young woman is shocked by high prices, bills, and debt.Photo byDreamstime #258410373.

Although the employment information and other facts are genuine and reference links are attached, this is an “opinion” piece.

Many employers are complaining that no one wants to work. They must have gotten lazy living off the government subsidies. This labor shortage phenomenon is not only in the USA but globally.

The truth about two wage-earner families, childcare costs, and minimum wage.

As of this posting (17 December 2022), the Maine minimum wage is $12.75 per hour. According to News Center Maine, on 1 January 2023, it will go up to $13.80 per hour, an additional $1.05 per hour or $42 for a 40-hour week.

The minimum weekly threshold for salaried workers will also rise to $796.17. Annual adjustments are now mandatory and based on the Northeast Consumer Price Index (CPI).

Although that’s a nice addition, it turns out to be a 60-cent per week raise given the December inflation rate of 7.5% that will eat up $41.40 of that weekly raise—not to mention that heating oil lingers above $5.50 per gallon (according to Maine.gov, the statewide average is $5.59), and the average rental around Bangor, Maine, went up 48% last year.

Maine food banks feel [the] pinch of inflation and rising gas prices

What’s more, the wage for service workers or “tipped” employees must be paid $6.90 per hour.

Before the pandemic, many homes with two wage earners figured it was not worth paying for childcare to work for $12.75 an hour, pay transportation expenses, and lose family time. Some were on the cusp of quitting and finding a craft or other small business they could start at home. By the time they pay for transportation and childcare, they are paying to work in some cases.

Let’s just say you earn $12.75 per hour and typically work 40 hours a week. You would earn $510 before taxes and other deductions. Let’s also say that your net pay after deductions is $460 per week. So, for one month, you will get $1,840.

How much is rent around Bangor, Maine?

According to Zumper, “As of December 11, 2022, the average rent for a 1-bedroom apartment in Bangor, ME is [was] $815.” Additionally, a two-bedroom apartment in the Bangor area averages $1,250.

But after you buy groceries, pay the utilities, car payment, insurance, etc., you’ll likely have to depend on your significant other to help you through every month.

If you live in a large city, you will pay around $2,000 per month, but there are some, like Bangor, Maine, where you can get a two-bedroom for $1,250. Some rural areas outside Bangor have house rentals for as low as $850 per month. However, you’ll definitely need a car, or perhaps two, depending on how far apart you both work and the childcare location.

Let’s say you live in Bangor or a comparable city and pay $815 for a one-bedroom. Lucky you, right? Let’s also say you both work and earn $12.75 per hour. You have a modest car payment of $299 monthly with full coverage insurance that costs $60 per month. Not bad, right?

You start each month with $3,680, minus the $815 and $359 for one car. It is possible to get rental subsidies and rely on public transportation in some areas. But if not, you will have $2,506 after paying the rent and car payment.

Oh yeah, you might need two cars when you both work, and your hours and work location don’t permit you to travel together. Now, you have $2,147 before groceries (anyone that’s been grocery shopping lately knows how sharply those prices have risen), clothing, your phones, utilities, automobile gas, and the occasional pizza or night out.

Now, subtract childcare for two non-potty-trained infants. That will cost you more than $12.75 per hour if you can find affordable childcare or get a government supplement. Since you’re both working, that will be about 50 hours per week or $637.50. That’s more than one of you earns.

Suppose one or both of you could work from home (WFH) and make the same amount or more. What do you think you are going to do? One or both of you will stay home and watch the kids. It just makes sense.

Final Thoughts

Next time you think the labor shortage is due to laziness, think again because common sense tells most of these two wage-earner families it’s cheaper for at least one to WFH.

One fellow journalist said, “It’s almost as if the average worker has become tired of getting screwed over! Who’d have thought?”

References:

1. News Center Maine, Minimum wage in Maine to increase to $13.80 per hour in 2023.

2. The Zumper article, Rent Research.

3. The Maine.gov article, Heating Fuel Prices.

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About the author.

Stephen Dalton is a native of Old Town, ME, and a retired US Army First Sergeant with a degree in journalism from the University of Maryland. He is a Certified US English Chicago Manual of Style Editor. Top Writer in Travel, Food, Fiction, Transportation, VR, NFL, Design, Creativity, Short Story, and a NewsBreak Community Voice Pro.