Rosetti comments on record low unemployment rates in the Region
Unemployment now at all-time record lows in Region after workforce shrunk during pandemic - Joseph S. Pete
NORTHWEST INDIANA - Unemployment has fallen to all-time lows in Northwest Indiana after the workforce shrunk noticeably during the coronavirus pandemic.
In December, unemployment rates plunged to all-time lows for the Region, Lake County, Porter County, the city of Gary and Indiana as a whole, according to the U.S. Bureau of Labor Statistics.
Joblessness fell to 2.1% in the Gary metro that encompasses most of Northwest Indiana, 2.5% in Lake County, 1.4% in Porter County, 4.9% in Gary and 2.7% in Indiana, according to the Indiana Department of Workforce Development.
In every case, it was the lowest on record — by a wide margin, said Indiana University Northwest Associate Professor of Economics Micah Pollak.
"All had the lowest unemployment rate by a lot on record since January 1990 when the BLS began reporting by county," he said. "The statewide record goes back at least 1976 since statewide data has been available longer."
The unemployment rate, determined by a monthly phone survey, is based on the number of people who are employed and the number of people actively seeking full-time employment. After the pandemic put as many as one out of five people in Northwest Indiana out of work in early 2020, not as many people have been looking for a full-time job in the Calumet Region.
The biggest contributing factor to the decline in Northwest Indiana's unemployment rate is that the workforce has shrunk by about 20,000 workers or about 6% since the start of the coronavirus pandemic as part of a Great Reassessment in which many people have reconsidered their day jobs, Pollak said.
Some retired early, while others opted to become stay-at-home parents after finding they weren't making enough at their jobs with the high cost of child care. Some chose to switch to part-time gig jobs with more flexible hours, such as driving for Uber, ferrying around meals for Grubhub or delivering e-commerce packages.
Remote work also has taken off in popularity during the pandemic, meaning workers are no longer confined in their job search to their immediate geographic vicinity.
"There are many reasons I am sure, but one I am running into more often is that as remote work continues to increase, many employees working from home may be working for companies in other states and not necessarily here," said Desila Rosetti, owner of Organizational Development Solutions Inc.
More people also have been going into business for themselves, pursuing long-deferred dreams. The U.S. Census Bureau reported entrepreneurs launched more than 4.4 million new businesses in 2020, a 24.3% year-over-year jump and the highest single-year total in history. That was smashed by the new record of 5.4 million new businesses launched last year.
Finding workers has been a challenge for many employers, such as Munster Donut on Calumet Avenue in Munster. The doughnut shop has had to cease operating for around the clock for the first time in its half-century-long history as it can't find enough workers to staff the overnight shift.
Increased pay hasn't been enough to bring in more workers at a time when help-wanted signs are everywhere and larger companies can afford to offer benefits like health care.
Munster Donut co-owner Elaine Butynski said many people don't want to risk their health while COVID-19 is still circulating despite safety precautions such as protective glass at the counter and a shift to a carryout-only business model.
Businesses across Northwest Indiana have had to scale back hours of operation during the tight labor market. They've also been so short-staffed of late that even a few employees calling off can lead to a temporary closure.
"We are back to normal hours but had four days of closures due to short staffing after a COVID scare," New Oberpfalz Brewing owner Dan Lehnerer said. "We are still short some staff. We're getting by, but it’s not too much fun."
The record low unemployment has been a struggle for many small business owners, Hobart Chamber of Commerce Executive Director Tom Byelick said.
"The labor market is still very tight," he said. "The No. 1 issue I hear from members is finding quality talent."
Businesses have been raising pay but are still having trouble finding enough staff, he said.
"Members have adjusted their pay scale to meet demand, but I think a lot of people left to start their own businesses," Byelick said. "There were more than 5 million new businesses over the past year, and people are getting too involved running their own businesses and not yet at the point where they decide they should 'get a day job.'"
It's a good job market for workers, Byelick said.
"The pay has increased to the point where some of the pay rates are too good to pass up," he said. "Bigger businesses like casinos are offering sign-on bonuses and training and the money is pretty good. Delivery positions pay well above what they have in the past. When people stick around, businesses pay them a little more."
Workers don't have as much buying power as they did but wages seem to be outpacing inflation in many cases, Byelick said.
"There's been a little more inflation at the grocery store with the supply chain issues," he said. "But hourly wages have increased. It's a great time for workers. There are a lot of opportunities and a lot of training where people can find the right career training and take advantage of that."
Businesses also may be short-staffed but also aren't necessarily suffering financially, Byelick said.
"A lot of restaurants have had to cut back on their hours, but it hasn't affected the bottom line," he said. "People still want to come out and eat. They might not be open at 3 p.m. or 4 p.m. in the afternoon, but they're still seeing that revenue at lunchtime and dinnertime."