- I'm a-gonna raise a fuss, I'm a-gonna raise a holler About a-working all summer, just trying to earn a dollar Every time I call my baby, trying to get a date My boss says, "No dice son, you got to work late."
- Eddie Cochran
This rocking toon of the 50s, no longer reflects American teenagers. There are many reasons. One that I dispute is kids won't work at menial type jobs. The days of stocking shelves at the local supermarket has competition. Older employees have stayed on the job, especially women. Immigrants who speak English and technology are closing the employment window. There are less and less opportunities in small business. There are no opportunities in large firms because there are no manufacturing enterprises in town. One more little twist, newspapers. No one can find a job posted in the help ad because newspapers are a dying business. Job applications over the internet is just talk. No one gets any responses. Knowledge of specialized summer employment at swim holes, amusement parks or similar is not readily known. All of the above and so many more reasons seem to block the connection of a job and a worker.
The virus along with rising rents and unaffordable housing has turned young people home. Many live with their parents. Some are using the time to return to education for a future job. Some are saving to accumulate enough to purchase their own home. Again, the reasons are many and the numbers are staggering. The virus also closed schools. A guardian needs to watch the kids.
Just in time, delivery
This money saving technique of ordering product and timing the delivery to end inventory costs is biting every nation in the world. All of a sudden, firms went from no orders for months and now, the phone is ringing off the hook or the emails are piling up. Firms need to retool, hire workers and get production rolling. Wall Street has no idea what real work is and what it takes to get things done. You cannot flip a switch and chips come out. All the expectations of stimulus and recovery were overblown. This is one reason that we, at Evolution stated a correction is coming. Labor is central and we have many issues with workers. It found a catalyst in COVID.
The virus caused absenteeism with workers. This resulted in product delays, shipping delays and together pushed the costs up and prices rose. We have inflation. This makes the whole cycle a little more complicated. The job from more education may not be there. Home and rents are higher. Schools still have not opened.
Then, there is this trend that was in progress long before the pandemic hit us, the retail calamity. Young people have lost jobs in firms both large and small. A retail manager cannot see himself as a short order cook which has no future. Let someone else do it except everyone understands the job position and its future outlook. Also, jobs are similar to real estate, location, location, location. It seems unreal, but there are locations with good job openings, but no applicants. There are jobs in big cities like New York, Seattle, et all, but the other aspects of life like housing, utilities and taxes have caused citizens to move from the area. I don't like Amazon due to its anti-union stance, but I will say this for the company. It pays better than the competition. Many workers who were laid off have found employment with Amazon. This is a shift from low-wage to a better wage. Oh, yeah. This shift causes wage increases which is inflationary too. With all of the above being stated and what I will disclose, there is an unknown reason why many firms have gone bust and their workers have not relocated to positions that are available in the marketplace at the moment. The following firms are closing stores. Keep in mind that each store represents many people and the sum total equals millions of jobs. There are 8-million less workers in the labor force than there was prior to the pandemic and we have a larger population.
Stores Gone Along With Jobs:
*Amazon Go. Yes, even this online giant found out that brick and mortar is a tough business even with the technology of no cashier. *Kroger. Supermarket giant is not so big as 10 stores will be lost. *Century 21. Company has been declining for a while and now, 13 bite the dust. Rumor of bankruptcy. *Nordstrom. Department store giant is suffering with its connection to malls that are hurting. Company is seeking to build its online sales, but is losing 16 stores. *Best Buy. 18 down with plans for more to follow. It blames the pandemic. *L'Occitane. Retail losing 23 stores due to virus. *Fry's Electronics. All 31 stores of a family firm are no longer. *Bath and Body Work. 50 down and counting. Unit of L-brand which is also hurting. *Denny's. Losing 60 locations. Blames the virus. *Microsoft. Yes, even this giant is closing all of its 70 locations. All sales will be online. *Sears. 82 more gone with only 30 left. *Macy's. 125 will no longer support the parade. *Brooks Brothers. 126 stores closing. There are so many firms that a list will appear too long. Now, just names and amount of damage.
Godiva, 128 stores, Signet Jeweler, 150 stores, Capri Holding, 170 stores, Carter's, 200 stores. Bed, Bath and Beyond, 200 stores, Gap & Banana Republic, 225 stores, JC Penny, 242 stores, American Eagle, 250 stores, K Mart, 330 stores, AT&T, 250 locations, Francesca's, 275 stores, Stein Mart, 279 stores, Victoria's Secret, another L-Brand losing stores, Children's Place, 300 stores, Christopher & Banks, 449 stores, Tailored Brands, 500 stores, Family Video, 500 stores, Game Stop 557 stores, Stage Star, 758 sites, Pier 1, 942 stores, GNC, 1200 stores and the biggest bust, Ascena Retail Group, 1600 stores. Consider the last retail firm. If it just had 10 people in each store that means 16,000 people are looking for work.
Breaking news,
Pep Boys just announced 100 stores will be closed. A Los Angeles parent company of a chain of steakhouses, Grill Concepts has just entered into bankruptcy. If you noticed, I did not include any restaurants in the above list. From large chains to individuals establishments, they are closing in record numbers. The final tally will be in the tens of thousands. Wall Street will eventually wake up to our labor problem. As for now, too much cheap money is flowing. Firms like Robinhood are cannibalizing short sellers. Big hedge funds continue to buy at any price. The market is extremely dangerous at the moment. Of course, due to the Fed's manipulations of interest rates, there is no safe place to park your money. This is the blues of our time.
This summer will be like no other. In addition, any protests will be dangerous due to the fact that so many people are unemployed. One idiot throwing a rock could result in riots to which adds more problems to retail, employment and worse, our society. I'm sorry Eddie, but earning a dollar and getting a date are way down on the list for the Summertime Blues.
