How Low Unemployment Affects the Economy and Holiday Hiring | Summary and Q&A

TL;DR

Companies are struggling to hire seasonal workers due to low unemployment and rising wages, while the restaurant industry has been slow to adopt automation.

Key Insights

• 🧑‍⚕️ Large retailers are struggling to find enough seasonal workers due to a tight labor market and increasing wages.
• 🧑‍⚕️ Amazon's advocacy for a $15 minimum wage may be a strategic move to attract seasonal workers and outpace competitors.
• 🐢 The restaurant industry has been slower to adopt automation, despite the potential for cost savings and efficiency improvements.
• 🥺 Customer service is a crucial factor for retailers during the holiday season, as positive experiences can lead to customer loyalty.
• 🏪 The layout and consistency of retail stores play a role in customer satisfaction, while grocery stores often rearrange aisles to break shopper routines.
• 🎯 Retailers may need to increase hourly wages to compete for seasonal hires, potentially targeting younger individuals.
• 😋 The simplicity of fast food menus makes them prime candidates for automation, but adoption has been slower than expected.

Transcript

Chris Hill: After Thanksgiving, of course, we've got Black Friday, and all the focus that happens on the retail industry. Something that we're starting to see evidence of is, I'm not taking a victory lap here, but I feel like we called it. Jason Moser: Go ahead, take a victory lap. Hill: I feel like we called this out earlier in the fall. Late summ... Read More

Questions & Answers

Q: Why are large retailers facing challenges in hiring seasonal workers?

Due to a low unemployment rate and rising wages, companies like Target, Macy's, and Walmart are struggling to find enough seasonal workers to meet demand during the holidays. They may need to increase wages to attract candidates.

Q: How is Amazon addressing the tight seasonal employment market?

Amazon plans to lobby for a $15 minimum wage across the country, which could help them attract more seasonal workers amidst competition. This may also be a competitive move by Bezos to weed out those who can't afford $15 an hour.

Q: Why has the restaurant industry been slower to adopt automation?

Despite the simplicity and predictability of fast food menus, the restaurant industry has been slower to automate. However, some robotic systems, like burger-flipping machines, already exist, suggesting a potential future trend.

Q: What are the challenges and opportunities for retailers during the holiday season?

Retailers face the challenge of providing exceptional customer service during the holidays to retain customers. A positive experience with a helpful employee can greatly influence customer loyalty. Additionally, retailers must compete for seasonal workers and navigate changing consumer expectations.

Summary & Key Takeaways

• Many large retailers, such as Target, Macy's, and Walmart, are having difficulty hiring seasonal workers due to a low unemployment rate and increasing wages.

• Amazon plans to advocate for a $15 minimum wage, potentially to attract more workers and address the tight seasonal employment market.

• Retailers may need to increase hourly wages from $8 to $10-15 to compete for labor, and they might also target a younger demographic for seasonal hires.

• The restaurant industry is lagging in automation, despite the simplicity and predictability of fast food menus. However, some robotic systems, such as burger-flipping machines and automated soft drink carousels, already exist.