Entry-Level, Low-Wage Job Seekers Passing Up Retail Jobs
As the economy rebounds in the San Francisco Bay area, some small business owners are struggling to find interested applicants for entry-level or low-wage jobs in the retail industry. The Hayes Valley area, home to a variety of upscale boutiques, is an example of a neighborhood where business owners have seen the number of applicants for such jobs decline. Many recent college graduates who would have accepted such work as an entry-level position are now going to work in the tech industry, making their own schedules driving for Uber, or working various jobs through apps like TaskRabbit.
Some low-wage job seekers in the area aren’t aware of opportunities due to what the San Francisco Chronicle calls a “disconnect between the entry-level jobs and the entry-level job seekers,” as many are finding the commute into San Francisco for low-paying jobs less worthwhile as wages rise in neighboring cities. According to data from the Bureau of Labor Statistics, unemployment in the San Francisco Metropolitan Statistical Area was 4.2 percent in March, down from 10.2 percent in March, 2010. The boom isn’t reaching all workers equally, however. Unemployment among African Americans is three times that of Caucasians in San Francisco, and unemployment among Latinos is twice as high as among Caucasians.
To combat the issue of not finding enough applicants for positions, small business owners in the city are using a variety of tactics. Some have outsourced to tech startups like Staffly that preform job interviews and conduct background checks on candidates. Others continue to post job notices online or on signs in shop windows in hopes of attracting a dwindling number of job seekers. However, the disconnect between employers and potential employees has led to a lack of job advertising at the city’s job training and placement programs, located in lower-income areas.
What This Means For Small Businesses
A variety of factors have contributed to the growing disconnect between the potential labor pool and small business owners in San Francisco and finding new ways to reach and recruit new employees is increasingly important.
Additional Reading
NFIB offers resources for businesses seeking a modernize their hiring and recruiting.
