For the past few years, it seems like one of the fastest growing business in America is a company called “Now Hiring.”
Everywhere we go from small West Texas towns such as Abilene, San Angelo and Midland to large cities such as Houston, Dallas and Austin, there are large banners practically begging for workers.
All around Texas it’s not uncommon for restaurants to open only half of their dining room.
A friend in Austin says he lists server and hostess jobs on various websites and sets up interviews for prospective employees and, more often than not, no one shows up for the interview.
Jerry Morales, a restaurateur and former mayor of Midland, joked that he hated to send catering orders out to the oil fields because he was afraid his driver and van would not come back to his restaurant.“Those oil and gas folks would hire a guy on the spot with a good driving record and no criminal record. When oil prices were high they would pay whatever it took.”
With so few workers and so many jobs open, the city of Midland could not fill hundreds of positions. It took another oil bust a few years later to get the city positions filled again.
Where are all the workers? The Labor Participation Rate continues to fall according to the Federal Reserve Bank. The labor participation rate is an estimate of an economy’s active workforce.
The formula is simply the number of people 16 years and older who are employed or actively seeking employment divided by the civilian working age population. The Labor Participation Rate has dropped from 64.4% in 2010 to 62.8% in 2023. That’s hundreds of thousands of people not working.
Every business is impacted. School districts need bus drivers and school teachers. Airlines need pilots and flight attendants. And police departments need dispatchers and police officers.
A Lowe’s Home Improvement store didn’t have any cashiers except at the self check out. At an Academy Sport & Outdoor store in Austin, customers were so frustrated waiting to check out they would just drop the items they were planning to buy and walk out the door.
Try to find help at most department stores. I wonder how Amazon gets it done.
The restaurant industry often is considered an entry level employer. It is a first job for many young people. They learn how to work with co-workers, customers and managers. They learn accountability, systems and work standards. They learn everyone’s contribution matters to the success of the business.
They learn seemingly little things such as being on time, honoring your schedule and that being in a clean and proper uniform reflects their own personal standards.
These are not insignificant lessons to ponder Labor Day weekend. A job is much more than a paycheck. It’s a first step on the road to responsibility.
Earlier this summer we hired a high school girl at one of our restaurants. It was her first job and I told her all the pressure was on me and not her. She asked what I meant. I said if we do a lousy job making work fun and enjoyable she may quit and never work another job again.
It’s not complicated: Creating a great work force requires employers to create a great place to work.
Tom Kenney is the founder and owner of Napa Flats Wood-fired kitchen and Le Petit Cochon. He is past president of the Texas Restaurant Association.