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    As Workers Gain Pay Leverage, Nonprofits Can’t Keep Up

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    Schools and social assistance agencies face staffing shortages as they compete with businesses able to raise wages — and services are suffering.In a Northern California school district, the superintendent is taking shifts as a lunchroom monitor. In Louisville, Ky., nonprofit groups are losing social workers to better-paying jobs at Walmart and McDonald’s. And in Rhode Island, child welfare organizations are turning away families from early-intervention programs because they are short of personnel.The nationwide labor shortage in recent months has led to delayed shipments, long waits at restaurants and other frustrations for customers and employers alike. But many for-profit businesses have been able to overcome their staffing difficulties, at least in part, by offering higher wages to attract workers.For many nonprofit and public-sector employers, however, raising pay isn’t an option, at least without persuading state legislators to approve budget increases or voters to approve higher taxes. That is leading to a wave of departures and rising vacancy rates as their salaries fall further behind their for-profit counterparts. And it is in some cases making it difficult for them to deliver the services they exist to provide.“We’ve lost our ability to be competitive,” said Carrie Miranda, executive director of Looking Upwards, a nonprofit in Middletown, R.I., that works with adults and children with intellectual and developmental disabilities and other health care needs. “When a new person comes to the door, I can’t say yes to them, and they desperately need the services.”Looking Upwards, like many similar organizations across the country, receives most of its funding through state contracts that pay a fixed reimbursement rate for the services they provide. In many states, including Rhode Island, funding levels had been failing to keep up with rising costs even before the pandemic.But the recent acceleration in wage growth, particularly in low-paying industries, has left them hopelessly behind the curve. At Looking Upwards, pay starts at $15.75 an hour for jobs that can be physically taxing and emotionally draining; the Wendy’s down the street is offering $17 an hour for some positions.“We used to compete with hospitals and other health care entities, and now we’re competing with the convenience stores, the fast food places, the coffee shops,” Ms. Miranda said. “I’ve heard more and more people say, ‘I’d love to stay in this job, I’m passionate about the work, but I need to feed my family, I have to pay my rent.’”.css-1xzcza9{list-style-type:disc;padding-inline-start:1em;}.css-3btd0c{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:1rem;line-height:1.375rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-3btd0c{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-3btd0c strong{font-weight:600;}.css-3btd0c em{font-style:italic;}.css-1kpebx{margin:0 auto;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}#NYT_BELOW_MAIN_CONTENT_REGION .css-1kpebx{font-family:nyt-cheltenham,georgia,’times new roman’,times,serif;font-weight:700;font-size:1.375rem;line-height:1.625rem;}@media (min-width:740px){#NYT_BELOW_MAIN_CONTENT_REGION .css-1kpebx{font-size:1.6875rem;line-height:1.875rem;}}@media (min-width:740px){.css-1kpebx{font-size:1.25rem;line-height:1.4375rem;}}.css-1gtxqqv{margin-bottom:0;}.css-1g3vlj0{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:1rem;line-height:1.375rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-1g3vlj0{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-1g3vlj0 strong{font-weight:600;}.css-1g3vlj0 em{font-style:italic;}.css-1g3vlj0{margin-bottom:0;margin-top:0.25rem;}.css-19zsuqr{display:block;margin-bottom:0.9375rem;}.css-12vbvwq{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;}@media (min-width:740px){.css-12vbvwq{padding:20px;width:100%;}}.css-12vbvwq:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-12vbvwq{border:none;padding:10px 0 0;border-top:2px solid #121212;}.css-12vbvwq[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-12vbvwq[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-12vbvwq[data-truncated] .css-5gimkt:after{content:’See more’;}.css-12vbvwq[data-truncated] .css-6mllg9{opacity:1;}.css-qjk116{margin:0 auto;overflow:hidden;}.css-qjk116 strong{font-weight:700;}.css-qjk116 em{font-style:italic;}.css-qjk116 a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;text-underline-offset:1px;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:visited{color:#326891;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:hover{-webkit-text-decoration:none;text-decoration:none;}When Steffy Molina graduated from college in 2017, she wanted a job where she could make a difference in the lives of people like her, an immigrant who spoke no English when she came to the United States at age 17. She moved to Providence, where she found a job with Family Service of Rhode Island, helping to arrange health care, nutrition support and other services for families with young children.Ms. Molina, now 27, found the work rewarding. But at $16 an hour, it was hard to make ends meet. Even after earning a master’s degree, she saw little path toward a livable wage.So Ms. Molina left Family Service shortly before the pandemic to take a better-paying job at a nonprofit that relied less on government contracts. And this year, she left nonprofit work to join a for-profit health care technology company, where she earns about $75,000 a year.Ms. Molina says she likes her new job, and still feels she is making a difference. But she misses being able to help families directly.“I loved the work, just the satisfaction of being able to work with a child or a family,” she said. “Even if they could have paid $18, I would have stayed.”Wage pressures aren’t hitting all nonprofits equally. Some organizations, mostly outside of social services, have endowments or other funding sources that make it easier for them to raise pay. And some states regularly adjust reimbursement rates to reflect prevailing wage levels or have used federal aid money to make ad hoc adjustments.Nonprofit employment has lagged in the recoveryChange since Feb. 2020 in employment among private-sector wage and salary workers

    Source: Current Population Survey via IPUMSBy The New York TimesBut government data suggests that the nonprofit sector as a whole is struggling to compete. Nonprofit organizations didn’t cut as many jobs as for-profit businesses early in the pandemic, but they have struggled to rehire: Total nonprofit employment in November was 4.8 percent below its prepandemic level, compared with a 1.5 percent employment gap in the for-profit sector, according to a New York Times analysis of Current Population Survey data. That is despite a sharp increase in demand for many nonprofit services during the pandemic.“We can’t just increase the cost of care,” said Micah Jorrisch, vice president at Maryhurst, a Kentucky nonprofit. “We aren’t Starbucks. We can’t add 50 cents to the cost of a cup of coffee.”At Maryhurst, which provides help to children suffering neglect and abuse, the staffing shortage was so severe that the board recently agreed to raise wages for frontline workers, in some cases by as much as 28 percent. But the organization didn’t receive any permanent increase in state funding to pay for those raises, meaning it will have to cut costs elsewhere or raise extra money from private donors.Neither approach is sustainable, Mr. Jorrisch said. And the organization still has a vacancy rate of about 30 percent — just this month, Maryhurst lost one of its longest-tenured supervisors to a job at Kroger, the supermarket chain.Many public-sector employers are facing similar problems. Billions of dollars of federal aid to state and local governments during the pandemic helped prevent the budget crises that some experts initially feared. But many local officials are wary of offering permanent wage increases based on short-term federal assistance.“It is very dangerous for us to set precedent using one-time funding to create larger salaries unless there is clarity that that funding will continue,” said John Malloy, superintendent of the San Ramon Valley Unified School District, east of Oakland, Calif.Mr. Malloy says his district has an unusually large number of vacant teaching positions. But as in many school districts, the larger challenge is outside the classroom, where they are competing more directly with rapidly rising private-sector wages. School bus drivers can earn far more making deliveries for Amazon. Cafeteria workers and custodians can make better money doing similar work at for-profit companies. This fall, Mr. Malloy resorted to asking central-office staff, including himself, to take shifts supervising students at lunchtime.Wages aren’t the only challenge. School superintendents say they are also battling burnout after close to two years of remote and hybrid learning, battles over mask and vaccine mandates, and other issues. And schools can’t offer remote work or flexible schedules to help compensate for lower pay.Similar issues face nonprofits, especially those involved in child welfare, mental health and other direct services. Demand for many services has soared during the pandemic, straining already thin staffs. Education and human services also disproportionately employ women, who have borne the brunt of the child care crisis that has emerged during the pandemic.Most economists expect the rapid wage growth among lower-paid workers to slow as the pandemic eases and more people return to the labor force. But even if the immediate staffing trouble abates, it could have long-term consequences. People who leave the field in search of better pay could be unlikely to return. And students won’t choose the field if they don’t believe they can earn a livable wage.“It’s a field that’s becoming unattractive,” said Beth Bixby, chief executive officer of Tides Family Services, a Rhode Island nonprofit.Ms. Bixby said one veteran employee, who works in a program for at-risk children, had recently told her that she was earning the same amount — $17 an hour — as her 17-year-old daughter, who works part time at a cosmetics retailer.“It’s demoralizing,” Ms. Bixby said. More

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    Supply Chain Problems Mean Buying a Car Sometimes Takes a Plane Ride

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    The limited supply of new and used vehicles is forcing some Americans to go to great lengths to find and buy them, including traveling to dealers hundreds of miles away.When Rachael Kasper started shopping for a new car in August, she had her heart set on a Ford Escape plug-in hybrid. The problem was that Ford hasn’t made many of them this year because of a computer chip shortage that has slowed auto production around the world.Ms. Kasper first came up empty in her home state of Michigan and, later, in neighboring states. When she expanded to the East Coast, she found one — at a dealership 537 miles away, in Hanover, Pa.“I flew to Baltimore, took a Lyft to the dealer, and then drove all the way home,” said Ms. Kasper, who owns a water-sports equipment retailer. “It was quite an adventure.”The shortage of computer chips, in large part caused by decisions made in the early days of the pandemic, has rippled through the auto industry this year. Manufacturers have had to close plants for lack of parts, leaving car dealers with millions fewer vehicles to sell.As a result, car buyers have had to travel hundreds of miles to find the vehicles they want, give up on haggling and accept higher prices, and even snap up used cars that have been repaired after serious accidents.The supply squeeze coincides with an apparent increase in demand. Some people are trying to avoid mass transit or taxis. Others simply want a vehicle. Many families have saved thousands of dollars thanks in part to government benefits and stimulus payments and because they have been spending less on travel, restaurant meals and other luxuries that have fallen by the wayside because of health concerns.The end of the year is normally a peak selling season, with some automakers running ads in which cars are presented as gifts complete with giant bows. But this year consumers are finding that locating the car of their desires is not quick, easy or cheap.As Ed Matovcik, a wine industry executive in Napa, Calif., neared the end of his lease on a Tesla Model S, he decided to switch to a Porsche Taycan, a German electric car. He ordered one, but it won’t arrive until May, three months after he has to give up the Tesla.He is planning on renting cars until the Taycan arrives and is looking on the bright side. “It’s a different world now, so I don’t really mind the wait,” he said. “I’m thinking of renting a pickup for a week so I can finally clear out my garage.”The disruption to car production has rippled through the automotive world. For a time in the spring and summer of 2020, rental car companies stopped buying new cars and sold many of their vehicles to survive while travel was restricted. Now those companies are seeking to take advantage of a hot rental market and are scrambling to buy cars, often competing with consumers and dealers.The big discounts and incentives that were once standard features of car-buying in the United States have all but disappeared. Instead, some dealers now add an extra $2,000 or $3,000 on top of the list price for new cars. That has left car buyers fuming, but the dealers who are jacking up prices know that if one customer balks, another is usually waiting and willing.In November, the average price of a new car was a record $45,872, up from $39,984 a year ago, according to Edmunds, an auto-data provider. The average price paid for a used car is now more than $29,000, up from $22,679 in 2020, and Edmunds expects it to exceed $30,000 next year for the first time ever.Because of the rising prices of used cars, some consumers are spending to fix up older vehicles and keep them going for longer. More cars that have been damaged in accidents are getting fixed instead of being declared a total loss by insurers and sent to the scrap yard.“The math has changed on whether a car is totaled,” said Peter DeLongchamps, a senior vice president at Group 1 Automotive, a Houston-based auto retailer that operates its own chain of auto-body shops. “Our parts and service business is very good. We’re seeing more cars getting fixed based on the high used values.”Workers assembled a Jeep Grand Cherokee L at a Stellantis plant in Detroit in June. A computer chip shortage has slowed auto production around the world.Bill Pugliano/Getty ImagesThe auto industry’s chip shortage stems from the start of the pandemic, in the spring of 2020, when automakers closed factories for weeks and cut orders for computer chips and other parts. At the same time, homebound consumers were snapping up laptops, game consoles and other electronics, spurring makers of those devices to increase orders for semiconductors. When automakers resumed production, they found chip suppliers had less production capacity for them.As a result, automakers have produced significantly fewer trucks and cars this year than they had planned. In addition to closing plants, they’ve built vehicles without certain features, such as heated seats and electronics that maximize fuel economy. Tesla dropped power lower-back support in the passenger seat of certain models.The Coronavirus Pandemic: Key Things to KnowCard 1 of 4The Omicron variant. More

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    Lingering Virus, Lasting Inflation: A Fed Official Explains Her Pivot

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    Mary Daly, president of the Federal Reserve Bank of San Francisco, wanted to withdraw economic help slowly. Now, she might support a rate increase as soon as March.SAN FRANCISCO — Mary C. Daly was in line behind a woman in her neighborhood Walgreens in Oakland, Calif., this fall when she witnessed an upsetting consequence of inflation. The shopper, who was older, was shuffling uncomfortably as the clerk rang up her items.“She starts ruffling in her pockets, and in her purse,” Ms. Daly said in an interview. “And she says: This is a lot more expensive than it usually is. I buy these things — these are my monthly purchases.”The woman had to put something back — she chose potato chips — because she couldn’t afford everything in her basket.It would have been sobering to watch for anyone, but the moment hit especially hard for Ms. Daly, who is president of the Federal Reserve Bank of San Francisco. As one of the Fed’s 18 top officials, she is one of the people who sets economic policy to help to ensure a strong job market and to keep prices for goods and services stable.Like many of her colleagues, Ms. Daly initially expected inflation to fade relatively quickly in 2021 as the economy reopened and got back to normal. But continued waves of virus that have interrupted and complicated the recovery and increasingly broad price increases have made central bankers nervous that rapid inflation and pandemic-caused labor shortages might linger.Those risks have prompted the Fed to speed up its plans to pull back policies meant to stimulate the economy. Officials had previously suggested that they would keep interest rates low for a long time to allow more people who lost or quit their jobs during the pandemic to return to the job market. But in recent weeks, they announced a plan to more rapidly scale back their other main policy to boost the economy — large-scale bond purchases that have kept long-term borrowing costs low and kept money flowing around the financial system. Concluding that program promptly could put them in position to raise interest rates as soon as March.Ms. Daly, who spoke to The New York Times in two interviews in November and December, has shifted her tone particularly dramatically in recent weeks. How she came to change her mind highlights how policymakers have been caught off guard by the persistence of high inflation and are now struggling to strike the right balance between addressing it while not harming the labor market.As recently as mid-November, she had argued that the Fed should be patient in removing its support, avoiding an overreaction to inflation that might prove temporary and risk unnecessarily slowing the recovery of the labor market. But incoming data have confirmed that employers are still struggling to hire even as consumer prices are rising at the fastest clip in nearly 40 years. Rising rents and tangled supply chains could continue to push up inflation. And she’s running into more people like that woman in Walgreens.“My community members are telling me they’re worried about inflation,” Ms. Daly said last week. “What influenced me quite a lot was recognizing that the very communities we’re trying to serve when we talk about people sidelined” from the labor market “are the very communities that are paying the largest toll of rising food prices, transportation prices and housing prices.”Ms. Daly said she supported ending bond buying quickly so that officials were in a position to begin raising interest rates. A higher Fed policy rate would percolate through the economy, lifting the costs of mortgages, car loans and even credit cards and cooling off consumer and business demand. That would eventually tamp down inflation, while also likely slowing job growth.Ms. Daly said it was too early to know when the first rate increase would be warranted, but suggested she could be open to having the Fed begin raising rates as soon as March.“I’m comfortable with saying that I expect us to need to raise rates next year,” Ms. Daly said last week. “But exactly how many will it be — two or three — and when will that be — March, June, or in the fall? For me it’s just too early to know, and I don’t see the advantage of a declaration.”Many investors and economists now expect the Fed to lift rates from their current near-zero level in March, and Christopher Waller, a Fed governor, suggested last week that he could support a move then.That higher rates could be coming so soon is a big change from what officials were signaling — and what people who watch the Fed closely were expecting — until very recently.Fed officials have long said they want the economy to return to full employment before they lift interest rates. Early in the pandemic, many policymakers suggested that they would like to see the number of people with jobs rebound to levels approaching those that prevailed in early 2020, suggesting a long period of low rates would be needed.But increasingly, officials have argued that the economy is close to achieving their employment target by focusing on the overall unemployment rate and the rates for different racial groups.The jobless rate has fallen to 4.2 percent, and Fed officials expect it to drop to 3.5 percent next year. That would match the rate that prevailed before the pandemic, and would be a marked improvement from a pandemic high of 14.8 percent in April 2020. Black unemployment is dropping swiftly, too.“The economy has been making rapid progress toward maximum employment,” Jerome H. Powell, the Fed chair, said during a news conference this month.Yet that unemployment rate tells just part of the story, because it counts only people who are actively applying for jobs. The share of people in their prime employment ages, between 25 and 54, who are either working or looking for work has dropped notably, and is only starting to recover. Ms. Daly said she was thinking about the Fed’s full employment target in terms of what is achievable in the short term, as the coronavirus keeps many workers at home, and in the longer term, when more employees may be able to return because the virus is more under control.“There’s the labor market we can get eventually, after Covid,” she said. “And there’s the labor market that we have to deal with today.”For now, job openings far exceed the number of people applying for positions, and wages are climbing briskly, two signs that suggest that workers are — at least temporarily — scarce.It may be the case that “in the short run, this is all the workers we have,” Ms. Daly said. “But in the long run, we expect more workers to come.”Retailers in her area are cutting hours on busy shopping days because they can’t hire enough staff. Production lines are shuttered. And with virus infections rising again and the new Omicron variant spreading rapidly, there is no immediate end in sight.“If we get past Covid, inflation comes down, the labor supply recovers — then definitely we want more patience, because we want time for that to work itself through,” she said. “But we have Covid, and it won’t go away.” More

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    Fed Could Raise Rates 3 Times in 2022 and Speeds End of Bond-Buying

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    With the economy healing, but price gains pinching consumers, officials are dialing back bond purchases and getting in position to raise interest rates (three are possible next year).Federal Reserve policymakers moved into inflation-fighting mode on Wednesday, saying they would cut back more quickly on their pandemic-era stimulus at a moment of rising prices and strong economic growth, capping a challenging year with a policy shift that could usher in higher interest rates in 2022.The central bank’s policy statement set up a more rapid end to the monthly bond-buying program that the Fed has been using throughout the pandemic to keep money chugging through markets and to bolster growth. A fresh set of economic projections released on Wednesday showed that officials expect to raise interest rates, which are now set near-zero, three times next year.“Economic developments and changes in the outlook warrant this evolution,” Jerome H. Powell, the Fed chair, said of the decision to pull back on bond purchases more quickly.By tapering off its bond buying faster, the Fed is doing less to stimulate the economy with each passing month, and putting the program on track to end completely in March.That would place Fed policymakers in a position to raise interest rates — their more traditional and more powerful tool — sooner. The Fed has made clear it wants to end its bond-buying program before it raises rates, which would cool off demand by making it more expensive to borrow for a home, a car or expanding a business. That would in turn weigh on growth and, eventually, price gains. The Fed’s new economic projections suggested rates, which have been at rock-bottom since March 2020, might rise to 2.1 percent by the end of 2024. More

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    Jobless for a Year? Employment Gaps Might Be Less of a Problem Now.

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    People who were out of work for a while have typically found it much harder to get a job. The pandemic may have changed how employers view people who have been unemployed for months or years.Jamie Baxter used to be skeptical of job applicants who had not worked for long stretches of time, assuming that other employers had passed them over.“My mind would jump to the negative stigma of ‘Wow, why could this person not get a job for this long?’” said Mr. Baxter, who is chief executive of Qwick, a temporary staffing company for the hospitality industry.Yet recently, he has hired at least half a dozen people who had been out of work for several months or longer. The pandemic, he said, “made me open my eyes.”Mr. Baxter’s change of heart reflects an apparent willingness among employers in the pandemic era to hire applicants who have been jobless for long periods. That’s a break from the last recession, when long-term unemployment became self-perpetuating for millions of Americans. People who had gone without a job for months or years found it very difficult to find a new one, in part because employers avoided them.The importance of what are often referred to as “résumé gaps” is fading, experts say, because of labor shortages and more bosses seeming to realize that long absences from the job market shouldn’t taint candidates. This is good news for the 2.2 million people who have been out of work for more than six months, and are considered long-term unemployed, according to the Labor Department, double the number before the pandemic.But that change may not last if more people decide to return to the job market or if the economy cools because of another wave of coronavirus cases, experts say.Mr. Baxter, whose company is based in Phoenix, said he has learned from his own experience. Forced to lay off roughly 70 percent of his 54 employees when the pandemic hit, he realized he was responsible for creating the very employment gaps he had once used to screen out job applicants.“I knew I was creating employment gaps,” he said. “Maybe other people would have employment gaps for very justifiable reasons. It doesn’t mean that they are not a good employee.”Even in normal times, the long-term unemployed face steep odds. The longer applicants are out of work, the more they may become discouraged and the less time they may spend searching for jobs. Their skills may deteriorate or their professional networks may erode.Some employers regard applicants with long periods of unemployment unfavorably, research shows — even if many are reluctant to admit it.“Employers don’t often articulate why but the idea, they believe, is that people who are out of work are damaged in some way, which is why they are out of work” said Peter Cappelli, the director of the Center for Human Resources at the Wharton School of the University of Pennsylvania.Some economists believe the pandemic’s unique effects on the economy may have changed things. Notably, the pandemic destroyed millions of jobs seemingly all at once, especially in the travel, leisure and hospitality industries. Many people could not, or chose not to, work because of health concerns or family responsibilities.“For people who were just laid off because of Covid, will there be a stigma? I don’t really think so,” Mr. Cappelli said. Although monthly job-finding rates plummeted for both the short- and long-term unemployed during the early part of the pandemic, the rate for the long-term jobless has since rebounded to roughly the same level as before the pandemic, according to government data. While that does not imply the employment-gap stigma has disappeared, it suggests it is no worse than it has been.That was what Rachel Love, 35, found when she applied for a job at Qwick.After Ms. Love was furloughed, and then laid off from her sales job at a hotel in Dallas last year, she kept hoping that her former company would hire her back. She had been unemployed for about a year when she came to terms with the idea of getting a new job and became aware of a business development position at Qwick.Interviewers did not press her about why she had been out of work for so long. “I hope now, just with everything going on, I think people can look at the résumé and look at the time frame and maybe just infer,” said Ms. Love, who began working remotely for Qwick in June.The tight labor market is almost certainly a factor. In October, there were 11 million job openings for 7.4 million unemployed workers.“The fact of the matter is, there are far more jobs in the U.S. than there are people to fill them right now,” said Jeramy Kaiman, who leads professional recruitment for the western United States at the Adecco Group, a staffing agency, working primarily with accounting, finance and legal businesses. As a result, he added, employers have had to become more willing to consider applicants who had been out of work for a while.Even when the worker shortage eases, labor experts express optimism that employers will care less about employment gaps than before, partly because the pandemic has made hiring managers more sympathetic.Zoë Harte, the chief people officer at Upwork, a company that matches freelancers with jobs, said there had been a “societal shift” in how companies understand employment gaps.“It’s become more and more evident that opportunity isn’t equally distributed, and so it’s important for us as people who are creating jobs and interviewing people to really look at ‘What can this person contribute?’ as opposed to ‘What does this piece of paper say they have done in the past?’” she said.That aligns with Burton Amos’s experience. After he was laid off from his job as a program support specialist with a federal contractor at the start of the pandemic, Mr. Amos, 60, started an online wireless accessories business and began studying for a career in information technology but was unable to land other work.On his résumé and LinkedIn profile, he was open about his lack of full-time employment, an approach that seemed to appeal to interviewers.“Every job did ask about ‘What am I doing right now?’” he said. “They didn’t specifically say anything specific about the pandemic.” He recently received multiple job offers and has accepted a position as a public aid eligibility assistant with the State of Illinois.Many companies have also redoubled their efforts on diversity and are more willing to employ people with a range of backgrounds and experiences, including applicants with long employment gaps.Scott Bonneau, vice president of global talent attraction at the hiring site Indeed, said employment gaps are “not a part of our consideration.” His company instead tries to evaluate a candidate’s skills and capabilities. That practice began before the pandemic, as part of the company’s diversity and inclusion efforts, and it is a shift that he said he expected to see at other businesses.“I think there is the beginnings of a movement to stop focusing on employment gaps entirely at least in certain parts of the employment world,” said Mr. Bonneau, whose responsibilities include hiring people for jobs at Indeed.But other labor experts worry that the employment-gap stigma will return once the economy stabilizes.Employers may not be as forgiving of gaps on résumés that stretch into next year now that jobs, and vaccines, are more available, said Jesse Rothstein, a professor of public policy and economics at the University of California, Berkeley. The stigma may be more evident for lower-wage workers in industries where current job openings are especially high.“I would expect that to whatever extent that it exists, it will come back,” Mr. Rothstein said.History also suggests that the empathy that hiring managers may feel now will not last, said Maria Heidkamp, the director of program development at the Heldrich Center for Workforce Development at Rutgers University.In a study released in 2013 by the Heldrich Center, a quarter of American workers said they were directly affected through a job loss and nearly 80 percent said they knew at least someone who had lost a job in the previous four years. Those levels would seem to make hiring managers more understanding of those who had lost their jobs because the experience was so common, Ms. Heidkamp said. “But that’s not what we saw,” she said.“The equation may play out differently” now, she added. “That said, I’m still worried.”Ben Casselman More

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    Why New York City’s Jobless Rate Is Double the Rest of the Country's

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    The city has regained fewer than 6 of every 10 jobs it lost since the pandemic began, while the nation as a whole has regained more than 90 percent of lost jobs.Since the start of the year, nearly six million jobs have been added in the United States. The unemployment rate has plummeted to 4.2 percent, close to where it stood before the pandemic. But in New York City, the economy appears to be in a rut.After gaining 350,000 jobs in the last months of 2020, employment has slowed considerably this year, with just 187,000 jobs added since March. The city’s unemployment rate of 9.4 percent is more than double the national average, and its decline in recent months was largely caused by people dropping out of the labor force.From the start of the pandemic, no other large American city has been hit as hard as New York, or has struggled as much to replenish its labor force. Nearly a million people lost their jobs in the early months of the pandemic, and thousands of businesses closed.As the city plunged into its worst financial crisis since the Great Depression, the unemployment rate skyrocketed, peaking in June 2020 at 20 percent. Nearly every industry — from construction to finance to social services — has fewer people employed now than before the pandemic swept into New York in March 2020.Nearly two years later, New York has added back a little more than half the jobs it lost, according to the state Labor Department, far less than the rest of the country, underscoring how the pandemic ravaged some of the city’s core economic engines like tourism, hospitality and retail.The protracted pandemic has shut out tourists and scared off the crush of suburbanites who filled office towers every weekday — a “double whammy,” said Andrew Rein, president of the Citizens Budget Commission, a nonprofit watchdog group. Just 8 percent of office workers were back at work five days a week in early November, according to a survey by the Partnership for New York City, a business group.Crowds are thinner at Pennsylvania Station in Midtown Manhattan with so many suburban office employees still working remotely.Yuvraj Khanna for The New York Times“Commuters and tourists consume a lot of the same stuff,” Mr. Rein said. “They consume, in a certain sense, the vibrancy of New York City.”Their absence has contributed to the loss of more than 100,000 jobs in the city’s restaurants, bars and hotels, plus nearly 60,000 additional jobs in retailing, performing arts, entertainment and recreation. The reopening of Broadway theaters and the high rate of vaccinations has provided a boost this fall that lowered the city’s official unemployment rate to 9.4 percent in October.But the rise of the Omicron variant could threaten the fledgling recovery just as the next mayor, Eric Adams, takes office in January. Mr. Adams has pledged to use the full resources of city government to reinvigorate the economy, creating a citywide jobs training and placement program.So far, the city has regained fewer than six of every 10 jobs it lost since the pandemic began in early 2020, while the nation as a whole has regained more than nine out of 10 lost jobs, said James Parrott, an economist with the Center for New York City Affairs. “It certainly looks to me like we’re going to have a much slower, much more drawn-out recovery,” Mr. Parrott said.The short but sharp pandemic recession was particularly painful for those in lower-paying service jobs: Positions in retail, restaurants and hotels help underpin the city’s economy and were the first to be cut in spring 2020. The jobs have been slow to reappear while a large share of their customers — office workers — have still not returned to the city’s business districts.The story is far different for one major industry and its employees, finance, which has thrived, with companies like JPMorgan Chase posting record revenues during the pandemic.In the two previous recessions — those that started in 2000 and 2008 — Wall Street shrank and the city lost tens of thousands of high-paying finance jobs. This time, the job losses on Wall Street have been minimal, helping tax collections to hold up as the city has continued to collect income tax from high-paid professionals who are working remotely.“Wall Street is having a banner year, and they did really well last year,” said Ana Champeny, deputy research director at the Citizens Budget Commission. “That has helped prop up the city’s income tax revenues and business tax revenues.”A strong employment rebound has yet to take hold despite an easing of pandemic-related business restrictions over the summer, the ending of expanded unemployment benefits in September and the reopening of international travel last month.An estimated 800,000 New York City residents, about 10 percent of the population, were receiving the benefits when they expired. Republican lawmakers and small business owners had blamed the benefits for discouraging people from working, though recent studies have shown that the extra payments most likely had little effect on labor shortages, which have continued after the payments ended.Before the pandemic, the tourism industry in New York City employed 283,000 people, with the majority of those jobs in Manhattan. By the end of 2020, roughly a third of those positions had been eliminated, according to the New York State comptroller’s office.Roughly a third of New York City’s 283,000 tourism positions had been eliminated by the end of 2020, though visitors have started to return in greater numbers in recent weeks.Gabby Jones for The New York TimesWhen the city locked down early last year, almost all of its tour guides were laid off, and most have not been rehired, said Patrick Casey, a board member of the Guides Association of New York City who is out of work himself.He had worked as a guide for New York Water Taxi, which operated a fleet of sightseeing boats, for more than 10 years before he was furloughed at the start of the pandemic. He had to fend for himself: Federal pandemic benefits have expired, and like many workers, he had exhausted his unemployment insurance.Mr. Casey said he had hoped to be rehired, but he gave up and started collecting Social Security when he turned 65 in early December. “It’s going to take a long time for my industry to come back,” he said.The pandemic has caused many workers to re-evaluate their own priorities, placing a greater importance on work-life balance, spending time with their families and protecting their health. It has led some workers to retire, while others are reluctant to rejoin the work force if it means taking a job that requires face-to-face interaction, economists say.Louisa Tatum, a career coach at the New York Public Library in the Bronx, said that more people with college degrees were seeking advice, and workers were more selective about what jobs they were willing to accept.While some businesses are hiring and some even have major staff shortages, many workers tell her that they are willing to wait to accept a position that pays well, has consistent hours and, in a reflection of how the pandemic has shifted priorities, offers greater flexibility for remote work.“There is a desire to work remotely and for opportunities that don’t put them at risk of anything,” Ms. Tatum said. The biggest barrier, she said, is the lack of desirable openings.For some industries in New York, the pandemic simply accelerated financial pressure that already existed. Retailers were already struggling with the rise of online shopping, and empty storefronts were adding up even on famed corridors like Madison Avenue.The apparel manufacturing business, a bedrock industry in New York a century ago that employed hundreds of thousands of people, shed more than 4,000 jobs during the pandemic, leaving just 6,100 employees in the city as of October.Taylor Grant moved back home to Alabama after being laid off from her clothing designing job and decided to stay after not being able to find a new job in New York.Julie Bennett for The New York TimesTaylor Grant was among those who lost a job in the apparel manufacturing trade. Ms. Grant, 25, accepted a job in early 2019 as a clothing designer at HMS Productions, a designer and manufacturer of women’s clothes sold at shops like TJ Maxx and Marshalls. Her office was in the garment district, the once booming textile neighborhood in Midtown Manhattan.Ms. Grant said she had survived rounds of layoffs in spring 2020 and had worked remotely for a couple of months in Dothan, Ala., her hometown. She lost her job that summer.Ms. Grant said she applied for a handful of jobs in the apparel business in New York through the rest of 2020, hoping to return while she still had an apartment in the city. Not one company responded, so she stopped looking. She now works as a manager at a women’s boutique started by her mother, Frou Frou Frocks in Dothan, and has helped increase its online sales and social media presence.“I definitely thought I would be with my company for at least five years,” Ms. Grant said. “Once I realized there were no job opportunities in New York, I decided to stay in Alabama.”The Hotel and Gaming Trades Council, a union that represents more than 30,000 hotel workers in New York, still has thousands of members who have been out of work for nearly two years. The outlook is so bleak that union officials have been counseling members on how to find work in other fields, even nonunion jobs. But replacing jobs that paid $35 an hour and provided free family health care is a tall order.“We have people waiting in line and anxious to go back to work,” said Rich Maroko, president of the union. “They’re having difficulty finding full-time work.”Kazi M. Hossain, 59, had served drinks at Bar Seine in the Hôtel Plaza Athénée in Manhattan for nearly 35 years when the pandemic forced the hotel to close in March 2020. It has never reopened, leaving Mr. Hossain without a full-time job for the first time since the mid-1970s.He has supported his family in Queens by taking on part-time work and borrowing $100,000 from his retirement savings. “If the hotel opens in the next three months, I could survive,” Mr. Hossain said. More

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    The Fed Meets Amid Faster Inflation and Prepares to React

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    The Federal Reserve could announce plans to cut economic support faster, and may signal 2022 rate increases, at its Dec. 14-15 meeting.Federal Reserve officials, worried about rising costs and buoyed by a healing labor market, are pivoting from bolstering the economic recovery to more quickly withdrawing the support that has aided the economy since the pandemic began.The policymakers, who meet this week for their final gathering of 2021, are widely expected to outline a faster end to their bond-buying campaign and will telegraph how aggressively they expect to raise rates from rock-bottom next year.The potential for major policy signals at the Fed’s meeting, which concludes at 2 p.m. on Wednesday, will make it one of the most closely watched of the pandemic era.Officials took their first step toward weaning the economy off the central bank’s support in November, when they said they would begin to slow a large-scale bond buying program that had been in place since early in the pandemic to keep money flowing around markets and support the economy. In the weeks since the Fed’s last meeting, fresh data has showed that consumer prices are climbing at the fastest pace in nearly 40 years and the unemployment rate has fallen to 4.2 percent, far below its pandemic peak.Given inflation and growth trends, Fed officials signaled clearly that they would discuss withdrawing support more quickly at this gathering, and economists think officials will signal a plan to taper off bond purchases so that the buying will stop altogether in March.Policymakers will also provide their latest thinking on the path for interest rates in their updated quarterly economic projections, and could pencil in two or three increases next year. When they last released the projections in September, officials were split on whether they would raise rates at all in 2022. Lifting the federal funds rate is arguably the Fed’s most powerful tool for pushing back on inflation, because it would slow demand and economic growth by percolating through the rest of the economy, lifting borrowing costs on mortgages, business loans and auto debt.In late November, Jerome H. Powell, the Fed chair, set the stage for the central bank’s shift from an economy-stoking stance to one that is more focused on keeping inflation under control.“At this point, the economy is very strong, and inflationary pressures are high, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, which we actually announced at our November meeting, perhaps a few months sooner,” Mr. Powell said during congressional testimony on Nov. 30.The Fed chair is expected to further explain during a post-meeting news conference on Wednesday how he is thinking about the central bank’s policy stance as it confronts rapid inflation and an uncertain economic path at a time when the virus shows no signs of abating and a new variant, Omicron, complicates the outlook.The Fed spent much of 2021 tiptoeing away from full-blast economic support, hoping to remove stimulus gradually enough that the job market would heal fully and quickly. But gradualism has given way to wariness in recent weeks, partly thanks to a new series of data points showing that inflation is still high and might stay elevated for some time.Central bankers knew that prices would climb quickly in early 2021 as the economy recovered from the depths of the pandemic, but the increases have been strikingly broad-based and long-lasting. The gains are broadening beyond pandemic-sensitive goods and into rent and some services, and both wages and inflation expectations are picking up. Policymakers have increasingly questioned the wisdom of adding juice to the economy with each passing month.“They’re realizing that they need to stop pouring gasoline on the fire,” said Gennadiy Goldberg, a rates strategist at T.D. Securities.The Fed has two key jobs: keeping prices stable and fostering maximum employment. Progress on the second goal has also been notable in recent months. The unemployment rate has dropped sharply, falling to 4.2 percent in November and improving faster than Fed officials or most economist expected.Even so, about four million jobs are still missing compared to before the pandemic. Some of those people may have retired, but others are expected to return to the job search once health concerns and pandemic-related child-care problems become less pronounced. Many Fed officials had been hoping to keep their policies very accommodative as those people came back.But inflation is forcing policymakers to balance their job market ambitions with their goal of keeping price gains under control. While an unhealed job market is bad for American households, so too are high and unpredictable price increases that chip away at paychecks and make it hard for businesses to plan. Plus, if the Fed waits too long to react to inflation, the fear is that they might have to lift rates sharply to bring it to heel, setting off a new recession.“We have to balance those two goals when they are in tension as they are right now,” Mr. Powell said in testimony on Dec. 1. “But I assure you we will use our tools to make sure that this high inflation that we are experiencing does not become entrenched.”Shoppers in New York last week. A burst in inflation has caught policymakers by surprise.George Etheredge for The New York TimesThe Biden administration announced in late November that it would reappoint Mr. Powell as Fed chair, which may have also given Mr. Powell a renewed mandate to lay out a plan to manage the risks around inflation and might explain the Fed’s sudden and notable pivot toward focusing more intently on inflation, said Krishna Guha, head of the global policy central bank strategy team at Evercore ISI.If Mr. Powell were leaving the central bank early next year when his term expires, it might have been tough for him to signal a plan for the future that his successor would have been stuck executing.Plus, “there is pressure from both sides of the aisle for the Fed to bring inflation under control,” Mr. Guha said. But he thinks the political element of the shift could be exaggerated; economic fundamentals also explain it.While many Fed officials say they still expect high inflation to fade, plenty of signs suggest it is at risk of remaining too high for too long. Businesses report that they are raising wages or setting aside money as they prepare to pay more. Companies — from dollar stores to pizza shops — are lifting prices and finding that consumers accept the change.Even companies taking a cautious approach to lifting prices express uncertainty about how long it will take to clear the supply chain snarls that are pushing up prices for inputs like food commodities and imported goods.“I think we’re living in elevated time of everything, right?” Randy Garutti, chief executive officer of Shake Shack, said at an investor conference early this month. “That will moderate. I can’t tell you when, I don’t know if it will be next year ’23 or ’24, or which product it will be? That’s unclear.”Fed officials are quick to acknowledge that the supply snarls seem likely to last into next year, and they seem to view the new coronavirus variant — about which much is still unknown — as something with the potential to prevent tortured supply routes from returning to normal.As they wrestle with the crosscurrents, Wall Street is debating how quickly the Fed might move to push rates higher next near, and will closely watch how many rate increases officials pencil into their fresh economic projections this week for any hint at the trajectory.“We think it’s a close call between two or three” estimated increases, J.P. Morgan economists wrote in a preview note, noting that they think three are more likely. They expect the Fed to first raise rates in June 2022, then lift them again every three months.The plan won’t necessarily be to try to constrain the economy by withdrawing support so rapidly that Fed policy becomes a big drag on growth — the equivalent of slamming the brakes. Instead, it will be to stop helping the economy so much, said Diane Swonk, chief economist at Grant Thornton LLP.“The Fed is going to take their foot off the gas pedal,” she said. The new development at this meeting is that the stimulus deceleration will be happening “even faster.” More

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    New York Food Banks Expand to Meet Demand for Aid in the Pandemic

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    Once a month, Dominga Espino, 59, heads from her job as a home health aide in Harlem to a nearby food pantry to pick up groceries for her family in the Bronx. She has come to the pantry for years, but she said pandemic-related job losses among the members of her household had contributed to making the assistance more urgent.“One used to work in the supermarket, and the supermarket closed,” she said. “And one used to work in a restaurant, and the restaurant closed.”Ms. Espino is one of 1.6 million New Yorkers who receive food assistance from the Food Bank for New York City. In the second winter of the pandemic, demand at city food banks, kitchens and pantries has remained high. The need for hot meals has dropped from pandemic highs, but demand for groceries has continued to grow.At the same time, supply chain disruptions and labor shortages have complicated the systems used to distribute food to needy families. In response, food aid organizations have scaled up their operations citywide.From a 90,000-square-foot warehouse in the Bronx, staff members at the Food Bank for New York City, sort, package and ship food to more than 800 soup kitchens and pantries across the five boroughs. The amount of food they distribute has more than doubled since the start of the pandemic, said Dennis Garvey, who manages logistics for the organization’s warehouse.“We really haven’t seen a drop off,” he said. “This winter, this current quarter, we’re actually moving more food out of the warehouse than we ever have before.”To handle the growing volume, the Food Bank of New York added a second shift at night in its warehouse. It also set up an in-house trucking operation to get around nationwide truck shortages.But twenty-five trucks originally expected to be delivered in June have still not arrived, Mr. Garvey said. And then there’s the challenge of finding drivers amid a shrinking work force and increased competition.Those logistics and shipping delays have had a significant impact on food aid in New York. The Masbia Soup Kitchen Network, which operates three locations in Brooklyn and Queens, has found creative solutions, like ordering prepackaged produce to avoid having to manually sort produce in bulk, said Alexander Rapaport, the organization’s executive director. But he added that the transportation issue had been more difficult to navigate.“What if the trucker just doesn’t show up? Which means the vendor doesn’t show up and we have people in line? Which kind of happened yesterday.” Mr. Rapaport said Thursday. “We had truckloads of fresh produce, but there were not enough truckers at the vendor’s place to send out all the deliveries.”At Community Kitchen and Pantry in Harlem, the pandemic has meant distributing more food with fewer volunteers. But organizers are still managing to provide 800 to 850 meals to needy families every Monday through Friday from their kitchen, which gives the culinary manager and head chef, Sheri Jefferson, optimism.“I’m fortunate that we have a staff that are as passionate as I am about what we’re doing,” she said. “We still get it done.” More