What Raising the Minimum Wage Could Mean for the Hospitality Industry

Employment trends expert explains why increasing the min. wage could have a negative impact on workers 

Minimum WageWith Inauguration Day upon us, many people are looking ahead at the first steps President-elect Joe Biden plans to take when he gets into office. One of his first major proposals (which Biden introduced last Thursday in his $1.9 trillion relief package) will be to increase the federal minimum wage from $7.25 to $15.

However, this proposal to dramatically increase the minimum wage is receiving pushback from critics who say this could spell the end for struggling small businesses who are already struggling to stay afloat during the COVID-19 pandemic.

“Asking small business owners to begin paying their employees $15 an hour will be a hardship that could break many companies,” says employment trends expert Rob Wilson, President of Employco USA, an employment solutions firm with locations across the country.

Wilson says that the minimum wage hike will also lead to more job loss as business owners continue to invest in automation over workers.

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How the 2020 Election Will Impact Minimum Wage and Job Security

HR specialist discusses how voters could alter minimum wage for millions of Americans

Election 2020Earlier this week, presidential candidate Joe Biden took to Twitter to share his proposed changes to minimum wage if he is elected, including ending tipped minimum wage and raising the minimum wage to $15/hr.

In addition to these national campaign promises, Floridians will have a proposed minimum wage amendment on their ballots come November, potentially raising their minimum wage to $10/hr on September 20, 2021.

“If voters pass the amendment, the plan would be to raise the minimum wage to $10 next year, and then gradually continue to increase the wage until it hits $15/hr by 2026. This would double the current minimum wage in Florida, and mirror similar amendments which have already been put into practice in states like Illinois,” says employment expert Rob Wilson, President of Employco USA, a national employment solutions firm with locations across the country.

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Don’t Celebrate Yet: Here is Why the Latest Jobs Report is Misleading

Employment expert says latest numbers are a false positive

Jobs ReportLast Thursday the Labor of Department released new figures showing that the United States gained 4.8 million new jobs in June. In addition, the unemployment rate hovered at 11.1%, lower than the predicted 12.4% rate. President Trump heralded the numbers as proof that the economy is “roaring back” after months of economic destruction caused by the COVID-19 pandemic.

“The latest job report seems like a major cause for celebration,” says Rob Wilson, President of Employco USA, a national employment solutions firm with locations across the county. “However, those of us within the employment industry are not celebrating just yet.”

Wilson, an employment expert who has helped hundreds of clients navigate the impact of coronavirus on the workplace, says “These new hire numbers are a false positive. At Employco, over 200 of our clients received PPP. Many then slowly rehired formerly laid-off employees in May and June.”

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By 2030, 20 Million Workers Will Lose Their Jobs to Robots

Employment expert discusses breaking new study which spells disaster for manufacturing employees

RobotA new study from analysis firm Oxford Economics predicts that by 2030, over 20 million workers in the manufacturing industry will lose their jobs to robots.

“As machines become cheaper to build and artificial intelligence technology becomes more comprehensive and affordable, many industries are going to become robot-centric,” says Rob Wilson. “Just look at the automotive industry: Starting in the 1980s, companies were spending billions of dollars to create robots to perform basic tasks in their automobile factories. Now, 43 percent of the world’s robots are used by the automotive industry. We should expect to see a similar trend in manufacturing as well, although the good news is that robots create jobs in some fields even as they take them away in others.”

Wilson cautions that battles over minimum wage could increase the application of artificial intelligence in some industries, especially as it relates to entry-level, unskilled work.

“Findings show that fast-food workers could be at serious risk of losing their jobs to robots in the next several years. One study found that each new robot added per 1,000 workers causes wages to drop in the surrounding area by around 0.25 and 0.5 percent,” says Wilson. “We can clearly see that in specific industries, the impact of automation can not only impact job numbers, but also a worker’s wages.”

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Is America Really Near Full Employment?

Employment expert weighs in on the truth behind latest jobs numbers

JobsThe latest jobs report has many people talking about “full employment” and the fact that America is allegedly near this state. However, what does full employment really mean, and is our nation truly almost to this place?

Rob Wilson, President of Employco USA and employment trends expert says, “The fact is that we are not at full employment yet.  We’ll know if we are approaching full employment when inflation starts to really pick up, which I expect to see within the next 6-9 months.  At that time, I believe the Fed will answer with more dramatic rate increases and we’ll virtually reach full employment.”

Wilson says that experts who are calling this ‘full employment’ are speaking too soon due to our rocky economic history.

“Normally, the general rule-of-thumb full employment indicator of around 4.5% can’t be relied upon right now.  We’re still in uncharted waters coming out of the freakish recession and the new tariffs, which means the economic and employment industries are struggling with accurate predictions,” says Wilson.

However, Wilson says that the jobs’ report is very good news, and right on track with what employers in this nation say they are experiencing.

“In talking to our clients, even though we’re not quite at the full employment level yet, employers are still having a difficult time finding good quality candidates for their open positions.  We haven’t seen significant wage growth that typically accompanies low unemployment rates, but I think that’s next on the horizon,” says Wilson. “We need to be careful to keep rapid wage growth under control, otherwise, the U.S. might face a brand-new set of problems that will be very tough to overcome.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Why So Many Americans Are “Ghosting” Employers

Employment experts talks new trend and how it’s impacting the hiring process

Ghosting“Ghosting” (when a person ends a relationship with no communication or forewarning) has been a hot-button topic in the dating community for years, but now the word is being used in employment circles to describe a new and troubling trend of job applicants who simply disappear off an employer’s radar.

“Ghosting isn’t just for Tinder users anymore,” says Rob Wilson, President of Employco USA and employment trends expert. “It seems that our booming jobs economy has led to applicants who simply ‘disappear’ during the interview process. According to LinkedIn, many employers now say that the tides have turned on them…instead of applicants desperately hoping to get a call-back, hiring teams themselves now find themselves dealing with unanswered calls and candidates who suddenly go MIA without warning.”

Wilson says that the problem is such that some companies have even instituted changes to their hiring process, including putting multiple conditions on job offers. He also adds, “Instead of narrowing it down to just 1-2 qualified applicants and cutting everyone else loose, companies are now wisely holding onto all possibilities before assuming that their search is over. With so many job openings, applicants can now play fast and loose with opportunities, and sadly many of these applicants take the coward’s way out and simply disappear without any further communication.”

Along with this growing trend of ghosting job opportunities, Wilson says that many employees are now quitting their posts in droves. “According to the  Bureau of Labor Statistics, the amount of employees who have voluntarily left their jobs is almost DOUBLE that of the number of employees who were fired. And, in March of this year, 3 million Americans quit their jobs out of their own volition.”

While Wilson says it is wonderful that so many jobs are opening up and Americans now feel safe to quit their positions or seek new opportunities, he cautions that ‘ghosting’ possible employers is in very bad form and could come back to bite you in the future.

“Even if you decide you do not want to work with a company, it is a bad idea to just cease communication without giving the employer any idea of what is going on,” says Wilson. “You never know when you could wind up looking for a job again, or when you could find yourself at an industry event or networking dinner with that same hiring agent. It’s always best to treat people the way you would want to be treated, even in the hiring process.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Update: This blog post was quoted by Benefits Pro in an 07/13/18 article, read more here:
https://biv.com/article/2018/07/one-five-bosses-are-judging-their-employees-taking-lunch-breaks-study

Benefits Pro

Here’s Why Millennials Keep Changing Jobs

Employment expert discusses new findings about “job switching” among young people

Changing Jobs“Job switching” is a fast-moving trend which has changed the face of the American workplace.

“Gone are the days of retiring after 50 years with a gold watch,” says Rob Wilson, President of Employco USA and employment trends expert. “A new study has found that job-switching continues to rise, particularly among Millennials and those working in the tech industry.”

Wilson says that “job-switching” is the result of employees seeking greater learning opportunities and increased pay. “Today’s young workers aren’t afraid to leave a well-paying, suitable job, which makes them different from former generations. And, research shows that this willingness to try new things pays off, especially when you are young: New research shows that workers who spend 2-3 years at their first job end up earning more money over their lifetime than workers who spend 4 or more years in the same role.”

The employment trends expert says that becoming complacent could stagnate an employee’s growth, as well as keep them from learning new skills and networking with new people.

“A person who shows up to the same office every day for years is probably not going to be greeted by opportunity very often,” says Wilson. “On the other hand, workers who are willing to put themselves out there and keep their skills sharp could find that their tenacity pays off.”

So, what should employers do to keep employees from bailing?

“Make sure that you are offering your employees more than just a paycheck. Along with room for advancement, offer your employees continued learning seminars and educational opportunities. Allow them room for creative control where possible, and help tease out their hidden skills and abilities.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

New Study: Actually, Robots Won’t Take Our Jobs

Employment trends expert explains new findings and whether humans should fear being replaced by A.I.

A new study suggests that previous findings regarding job automation predictions might have been way off. The Organisation for Economic Co-operation and Development (OECD) says that fears over artificial intelligence stealing jobs might be overstated.

“The findings from the OECD are helping to reassure some workers who feared that they were going to be replaced by robots in the next 20 years,” says Rob Wilson, President of Employco USA and employment trends expert. “These researchers are now saying that previous numbers were overstated and did not take into account different types of jobs which fall under the same name and title.”

In other words, says Wilson, previous studies regarding job automation may have been too broad. In fact, when it comes to considering the risks of artificial intelligence’s impact on the workforce and our economy, Wilson says we need to break down the numbers as much as possible.

“The fact remains that earlier findings show that fast-food workers could be at serious risk of losing their jobs to robots in the next several years. Another recent study found that each new robot added per 1,000 workers causes wages to drop in the surrounding area by around 0.25 and 0.5 percent,” says Wilson. “We can clearly see that in specific industries, the impact of automation cannot be overstated.”

Wilson says minimum wage hikes could also make robots the preferred option for employers. “Robots don’t need raises,” he says. “They don’t need healthcare or sick days. For employers who are looking down the barrel of ever-increasing business costs, robots are a cost-saving option in the long-run.”

The employment trends expert also points to a new study which highlighted the fact that Seattle workers lost $129 a month on average after the city’s minimum wage was increased to $15.

“Higher wages sound like a boon for employees, until you realize that employers simply cannot keep pace with these increased costs,” says Wilson. “As a result, they cut staff, limit hours…and consider new technology like automation to replace workers. This is just the beginning of a very disturbing new trend which could lead millions to end up out of work.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

313,000 Jobs Added in February, But What Does that Mean for the Average American?

Jobs

Employment trends expert breaks down the numbers from Friday’s jobs report

After a pleasantly shocking jobs report on Friday, employment experts are now saying that the United States is at ‘full employment.’ But, what does this mean for Americans, and are the numbers really as good as they seem?

“February’s jobs report is a solid sign that our economy is getting stronger,” says Rob Wilson, president of Employco USA and employment trends expert. “Not only were 313,000 jobs added in a variety of low, middle, and high-wage industries, but we also saw an influx of hundreds of thousands of people rejoining the job market. This is huge news, as there had been fears that our workforce was depleted and that many Americans were simply opting to not seek employment.”

However, the employment expert explains that some people might be misled by the news that America is now at ‘full employment.’

“Full employment does not mean that every American has a job,” says Wilson. “Full employment is a term that economists use to describe optimal employment, when unemployment is at the lowest possible level without causing an unhealthy rebound of inflation in which employers have to compete too intensely for workers and bump up wages too quickly.”

In other words, our current economy is one that is optimal for both workers and employers.

Wilson says, “2018 is already off to an incredible start. We have added an average of 276,000 jobs a month, compared to 182,000 in 2017, and this growth shows no signs of stopping.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Why the New Tax Code Could Lead to a Big Boost in the Gig Economy

Employment expert explains why more workers are freelancing…but is it a good idea?

The amount of people relying on freelance gigs for their sole salary has increased steadily in recent years. By 2021, over 9 million Americans are expected to be part of the country’s ‘gig economy,’ in which workers cut ties with companies and work for themselves. And, President Trump’s new tax reform could hasten and increase this growth, but what impact could that have on workers and company growth?

“There is a provision in Trump’s tax law which will allow sole proprietors (including freelancers like Uber drivers, graphic designers, consultants, etc.) to deduct 20 percent of their revenue from their taxable income,” explains Rob Wilson, employment trends expert and President of Employco USA, an employment-solutions firm based in Chicago, IL.

Wilson explains that this tax provision could add up to thousands of dollars in savings each year. “In addition, this tax provision will be beneficial for bosses who are looking to save on payroll costs. By switching workers from salaried employees to contracted freelancers, they can save big…and workers will have less reason to complain, as they can earn more money under the new provision as well.”

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