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Frank A. Douglass Insurance Agency

Labor Shortage: No clear-cut answers

Last spring, with the unemployment rate at an all-time high for the State of Michigan, it would have been hard to believe that 12 months later businesses would be struggling to find workers. On Friday, May 7th, the United States Bureau of Labor Statistics released its monthly report. A panel of economists had expected one million jobs to be created. The actual figure was 260,000, resulting in the worst miss in the history of the data series.

Reaction was swift to the disappointment. The United States Chamber of Commerce, a business lobbying group, blamed enhanced unemployment benefits, equating to around $300 per week on top of what is normally given out by each state. The Director of Workforce Services at Michigan Works!, Debb Brunell, says it is too early to jump to conclusions.

The unemployment can be a contributor to people not wanting to come to work, and maybe for some that is the reason. It’s certainly not the reason for all. There are still several other things that are playing into that. I mean, one of them is getting all the kids back to school. A lot of parents can’t get back to work because they have to take care of their kids.

The Keweenaw is not immune to the current labor problems. It affects the area in ways that are obvious, a bevy of hiring signs staked into the ground in front of retail stores and restaurants, and those that are more deceptive. Office Manager Carol Saari says the Houghton County Fair is excited to bring back the carnival and midway after a year’s absence. Already, the operator of the rides, Skerbeck Entertainment Group, is warning that staffing shortages could threaten to limit the fun options they can provide.

Skerbeck’s was able to get some H-2B workers, but I think they are less than half with the American workers they could attract. I think they are still less than half the workforce they wish they had.

In 2020, a drive-through service was held to allow them to sell elephant ears and other fare, an attempt to get at least some revenue. For businesses like Skerbeck, they can’t afford another lost summer. The company has already turned to H-2B visa applicants from overseas to help fill the gap as much as possible.

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