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    Las Vegas Suffers as Nevada Economy Droops, Costing Jobs

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    Pedro Alvarez never imagined his high school job delivering filet mignon and sautéed lobster tail to rooms at the Tropicana Las Vegas would turn into a longtime career.But in a city that sells itself as a place to disappear into decadence, if for only a weekend, providing room service to tourists along the Strip proved to be a stable job, at times even a lucrative one, for more than 30 years.“Movie stars and thousands of dollars in tips,” Mr. Alvarez, 53, said. “If it was up to me, I was never going to leave.”Yet when the Strip shut down for more than two months early in the coronavirus pandemic, Mr. Alvarez became one of tens of thousands of hospitality workers in Nevada to lose their jobs. After the hotel reopened, managers told him that they were discontinuing room service, at least for a while. Since then, he has bounced between jobs, working in concessions and banquets.“It’s been an uphill climb to find full-time work,” he said.Nevada is an outlier in the pandemic recovery. While the U.S. economy has bounced back and weathered a steep ratcheting-up of interest rates — and even as many Americans catch up on vacation travel that the coronavirus derailed — the Silver State has been left behind.Job numbers nationwide have continued to increase every month for more than two years, but the unemployment rate has remained stubbornly high in Nevada, a political swing state whose economic outlook often has national implications.The state has had the highest unemployment rate in the nation for the past year, currently at 5.4 percent, compared with the national rate of 3.6 percent; in Las Vegas, it’s around 6 percent.Because of Nevada’s reliance on gambling, tourism and hospitality — a lack of economic diversity that worries elected officials amid fears of a nationwide recession — the state was exceptionally hard hit during the shutdowns on the Strip. Unemployment in the state reached 30 percent in April 2020.And although the situation has improved drastically since then — over the past year, employment increased 4 percent, among the highest rates in the country — Nevada was in a deeper hole than other states.“This leads to a bit of a paradox,” said David Schmidt, the chief economist for the Nevada Department of Employment, Training and Rehabilitation. “We are seeing rapid job gains, but have unemployment that is higher than other states.”Nearly a quarter of jobs in Nevada are in leisure and hospitality, and international travel to Las Vegas is down by about 40 percent since 2019, including drops in visits from China, where the economy is slowing, and the United Kingdom, according to an estimate from the Las Vegas Convention and Visitors Authority.Tourists on the Strip. International travel to Las Vegas is down about 40 percent from 2019.Gabriella Angotti-Jones for The New York TimesTo-go drinks for sale outside Planet Hollywood Las Vegas Resort & Casino. Gabriella Angotti-Jones for The New York TimesUnion officials say there are about 20 percent fewer hospitality workers in the city than before the pandemic.Gov. Joe Lombardo acknowledged the state’s high unemployment in a statement, saying that “many of our businesses and much of our work force are still recovering from the turmoil of the pandemic.”“The long-term economic solution to Nevada’s employment and work force challenges begins with diversifying our economy, investing in work force development and training,” said Mr. Lombardo, a Republican, who unseated a Democrat last year in a tight race in which he attacked his opponent and President Biden over the economy.The state is making progress toward those diversification goals, Mr. Lombardo said, citing Elon Musk’s announcement in January that Tesla would invest $3.6 billion in the company’s Gigafactory outside Reno to produce electric semi trucks and advanced battery cells, vowing to add 3,000 jobs.Major League Baseball is preparing for the relocation of the Oakland Athletics to Las Vegas, where a stadium to be built adjacent to the Strip will, by some projections, create 14,000 construction jobs. The Las Vegas Grand Prix — signifying Formula 1 racing’s return to the city for the first time since the 1980s — is expected to draw huge crowds this fall, as is the Super Bowl in 2024.Despite the state’s unemployment rate, the fact that the economy is trending in the right direction, both locally and nationally, bodes well for Mr. Biden’s chances in the state as the 2024 campaign begins, said Dan Lee, a professor of political science at the University of Nevada, Las Vegas.“Should it remain on the right track,” Mr. Lee said, “that’s clearly good for the incumbent.”But a potential complication lies ahead.The Culinary Workers Union Local 226, which represents 60,000 hotel workers, has been in talks since April on a new contract to replace the five-year agreement that expired in June. The union could take a strike authorization vote this fall in an attempt to pressure major hotels, including MGM Resorts International, Caesars Entertainment and other casino companies, to give pay raises and bring back more full-time jobs.More than a potential strike, the union, which estimates it has 10,000 members who remain out of work since the pandemic started, is a critical bloc of Mr. Biden’s Democratic base in Nevada. In 2020, Mr. Biden won the state by roughly two percentage points in part because of a huge ground operation by the culinary union. Those members could be difficult to organize should a shaky economic climate in the state persist.“Companies cut workers during the pandemic, and now these same companies are making record profits but don’t want to bring back enough workers to do the work,” said Ted Pappageorge, the head of the local, which is affiliated with the union UNITE HERE. “Workload issues are impacting all departments.”Juanita Miles has struggled to find steady income since the pandemic hit.Gabriella Angotti-Jones for The New York TimesFor Juanita Miles, landing a stable, full-time job has been challenging.For much of the past decade, she worked as a security guard, patching together gigs at several hotels and restaurants. But when the pandemic hit and businesses closed, she realized she would need to pivot.“I’m now looking anywhere, for anything,” Ms. Miles, 49, recalled.In late 2020, she took a $19-an-hour job as a part-time dishwasher at the Wynn Las Vegas, Ms. Miles said, but the hotel soon reduced its staff and she lost her job. She returned, for a time, to working security at hotel pools, nightclubs and apartment complexes.But Ms. Miles started to feel increasingly unsafe on the job during her night shifts, she said, recounting the time a man who appeared to be high on drugs followed her onto her bus home early one morning after a shift.“I was no longer willing to risk my life,” Ms. Miles said inside an air-conditioned casino along the Strip where she had stopped for a respite from the 110-degree heat outside.As slot machines clanged in the background and people packed around craps tables, Ms. Miles reflected on the job interview she had just come from at a nearby Walgreens.She thought it had gone well, she said, and she hoped it would pan out. The $15-an-hour pay would help cover her $1,400 rent, as well as the other monthly bills — cellphone, $103; utilities, $200; groceries, $300 — that she splits with her husband, who works at a call center.“Things are going to be tight no matter what,” Ms. Miles said, adding that if offered the job, she still hoped to eventually find something with higher pay.Her dream, she said, is to open a day care center — a fulfilling job that would allow her to alleviate some of the pressure she knows rests on many parents.A worker busing a table at a restaurant inside a hotel. Nearly a quarter of jobs in Nevada are in leisure and hospitality.Gabriella Angotti-Jones for The New York TimesCarey Nash performed “End of the Road” by Boyz II Men for tourists on the Strip.Gabriella Angotti-Jones for The New York TimesFor Mr. Alvarez, the longtime Tropicana employee, any hope of returning to the job he long enjoyed is increasingly fleeting. The hotel, which opened in 1957, is on track to be demolished to make space for the new Athletics baseball stadium.“The city and the state seem to be on the rise,” he said. “But workers cannot be left behind.”After he lost his job at the Tropicana, Mr. Alvarez started working at Allegiant Stadium when it opened to fans in fall 2020.He helped set up platters of food in the stadium’s suites during football games, but the work, which was part time, ended when the season was over.“I was putting together two and sometimes three jobs, just to make enough to live,” he said.Several times during the pandemic, he said, he has feared he might lose his home in North Las Vegas, which he bought in 2008. (Eviction filings in the Las Vegas area in April were up 49 percent from before the pandemic, according to a report from The Eviction Lab at Princeton University.)He filed for unemployment benefits and eventually found part-time work at the Park MGM as a doorman. On a recent morning, Mr. Alvarez put on his gray vest and tie and prepared to begin his midday shift there.In June, the Vegas Golden Knights won the Stanley Cup finals at the T-Mobile Arena next door to the Park MGM. Witnessing the joy and celebration that swept through the hotel reminded him of why he had stayed in the industry.“Helping people and bringing them joy is what this city is all about,” he said. “I just hope I can keep doing this work.” More

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    Wages and Hiring Weigh on Minds of Company Executives

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    As companies reported their latest quarterly earnings in recent weeks, hiring, wages and head counts were popular topics as analysts quizzed executives about their plans.Some said they were avoiding expanding their payrolls as rapidly as in the past. Others said that rising wages remained a worry for their bottom lines. And many still looking to hire said that attracting and retaining workers was difficult as the labor market remained robust.“You have to work extra to hire people and to keep people,” Andrew Watterson, the chief operating officer of Southwest Airlines, said on a call with analysts. “Our clients still grapple with labor shortages,” said Martine Ferland, who runs the consultancy Mercer.Even so, the rate of workers quitting their jobs, a measure of workers’ confidence in their prospects and bargaining power, continued to fall in June, according to data released Tuesday. “If you think about our turnover coming down, that means we don’t have as many people we’re hiring as we were before,” said Rick Cardenas, the chief executive of Darden Restaurants, owner of the Olive Garden chain.Wage growth has also cooled in recent months, but remained robust last month, rising 4.4 percent from a year earlier. “We still face above normal levels of wage and benefit cost inflation in our cost structure,” Andre Schulten, the finance chief at the consumer goods company Procter & Gamble, said on a call with analysts.Kathryn A. Mikells, the chief financial officer of Exxon Mobil, said that the oil giant had seen lower prices for some of its materials like chemicals and sand, but “as it relates to things where labor is a high component of the cost, I would say we’re not yet necessarily seeing that deflationary pressure coming through yet.”Anthony Wood, the chief executive of Roku, the streaming device maker, told analysts that the company would continue hiring, but planned to do so outside of the United States, in places where workers “are just less expensive than Silicon Valley engineers.”Other companies, especially in the tech industry, said that they had become more judicious about hiring, with some freezing payrolls or even cutting jobs.Mark Zuckerberg of Meta, which cut tens of thousands of jobs in multiple rounds of layoffs since late last year, said last week that “newly budgeted head count growth is going to be relatively low” at the company, which owns Facebook, Instagram and WhatsApp. Sundar Pichai of Alphabet said that the tech giant would “continue to slow our expense growth and pace of hiring.” More

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    Job Turnover Eased in June as Labor Market Cooled

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    The NewsJob turnover decreased in June, the Labor Department reported on Tuesday, suggesting that the American labor market continues to slow down from its meteoric ascent after the pandemic lockdowns.A flier advertising open positions at a job fair in Minneapolis.Tim Gruber for The New York TimesThe NumbersThere were 9.6 million job openings in June, roughly the same as a month earlier, according to the Job Openings and Labor Turnover Survey (JOLTS).Employers have tightened the screws on hiring in recent months, with job openings falling to their lowest level since April 2021 as the economy responds to tightening monetary policy.The most notable changes in June were not in job openings but in hiring and quitting. There were 5.9 million hires in June, down from 6.2 million in May. And the quits rate, a measure of workers’ confidence in the job market and bargaining power, decreased to 2.4 percent, from 2.6 percent in May and down from a record of 3 percent in April 2022. The number of workers laid off was 1.5 million, about the same as in May.Quotable: ‘The labor market is unbalanced.’“We’re still in an economy where the labor market is unbalanced,” said Michael Strain, an economist at the American Enterprise Institute, “with the demand for workers substantially outpacing the supply of workers.” There are roughly 1.6 job openings for each unemployed worker.Why It Matters: The economy moves closer to a ‘soft landing.’Over the past 16 months, as they have sought to curb inflation and make sure the economy does not overheat, Federal Reserve policymakers have pursued the coveted “soft landing.” That means bringing down inflation to the Fed’s target of 2 percent by raising interest rates without causing a significant jump in unemployment, avoiding a recession.The June JOLTS report provides more optimism that the Fed is approaching that soft landing, as demand for workers remains robust while tapering gradually. Inflation remains high by historical standards — at 3 percent, according to the latest data — but has eased substantially.“This is a really strong labor market that is staying strong but slowing down,” said Preston Mui, a senior economist at Employ America, a research and advocacy group focused on the job market.At the end of their meeting last Wednesday, policymakers raised rates a quarter-point, and the Fed’s chair, Jerome H. Powell, said its staff economists were no longer projecting a recession for 2023. But Mr. Powell left the door open to further rate increases and said the economy still had “a long way to go” to 2 percent inflation.Background: It’s been a good time to be a worker.As the U.S. economy rapidly rose out of the Covid-19 recession in 2020, a powerful narrative built: “Nobody wants to work.” There was some truth to that hyperbole. Employers had a hard time finding workers, and workers reaped the rewards, quitting their jobs to find better-paying ones (and succeeding).With quit rates falling in recent months, the so-called great resignation appears to be over, if not receding, and the continued downward trajectory of job openings implies that employers are less eager to fill staffing shortages.Employers are not hiring with the fervor they were a few months ago, but they are not yet casting aside workers, who might not lose the gains they have achieved during the pandemic recovery.What’s Next: The July jobs report lands on Friday.The Labor Department will release the July employment report on Friday. The unemployment rate for June sat at 3.6 percent, a dip from 3.7 percent in May but higher than the 3.4 percent recorded in January and April, the lowest jobless rate since 1969.June was the 30th consecutive month of gains in U.S. payrolls, as the economy added 209,000 jobs, and economists surveyed by Bloomberg expected the economy to have added another 200,000 jobs in July. Fed policymakers will be watching the report closely, but one more month’s data will arrive before they next convene Sept. 19-20. More

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    Jobs Sit Empty in the Public Sector, So Unions Help Recruit

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    Shortages of state and city personnel, especially those who must work on site, are so dire that unions are helping to get people in the door.The State of Minnesota, like nearly every public-sector employer across the country, is in a hiring crunch.Not just for any job, though. The desk jobs that can be done remotely, with flexible schedules? Applicants for those positions are relatively abundant. It’s the nurses, groundskeepers, plumbers, social workers and prison guards — those who are on site, sometimes at odd hours — that the state really can’t find.“It’s terrifying, if I’m being honest,” said Mitchell Kuhne, a sergeant with the Department of Corrections staffing a table at a state jobs fair in Minneapolis this week. “People just don’t know about the opportunities that exist. It’s a great work force, it’s a great field to be in, but it’s a really intimidating thing that isn’t portrayed accurately in the movies and media.”Understaffing requires employees to pick up many hours of mandatory overtime, Mr. Kuhne said. The additional income can be welcome, but also makes home life difficult for new recruits, and many quit within a few weeks. So his union, the American Federation of State, County and Municipal Employees, is playing an unusual role — helping their bosses recruit workers.It’s a nationwide quandary. While private-sector employment fully regained its prepandemic level a year ago — and now sits 3 percent above it — state and local governments remain about 1 percent below the 20 million people they had on staff in February 2020. The job-opening rate for public-sector positions is below that of private businesses, but hasn’t come down as much from the highs of 2022.Private-Sector Employment Bounced Back. State and Local Government Hasn’t Recovered.Employment level as a percentage of employment in February 2020

    Source: Bureau of Labor StatisticsBy The New York TimesIn historical perspective, it could be worse: State and local government employment had only barely recovered from a long slide after the 2007-9 recession, which left many public services underpowered as states and cities lacked the funding to return to full strength.This time, the problem is different. Tax collections recovered more quickly than expected, and the federal government helped with transfers of cash to local jurisdictions to offset the effects of the Covid-19 crisis. That helped many governments award temporary pay increases to retain key personnel, and hire others into departments that had been cut to the bone, such as public health.But officials then faced a new twist. Wages in the private sector were growing faster than they had in decades, drawing people away from government jobs that had, for some, become too stressful. Civil servants also tend to be older than other workers, and more of them retired early rather than put up with mounting strain. As federal relief funds peter out, governments face difficult questions about how to maintain competitive pay.Public needs, however, have only increased. Minnesota, along with recovering from a hiring freeze early in the pandemic, has passed larger budgets and new laws — regulating cannabis sales, for example — that have added hundreds of positions across several agencies. At the same time, the federal infrastructure bill is supercharging demand for people to manage construction projects.That’s a victory for labor unions, which typically push for more hiring, higher wages and better benefits. But it doesn’t help them much if positions stay empty. A survey of local government human resource officers, released in June by the nonprofit research organization Mission Square, found that more than half the respondents had to reopen recruitment processes very often or frequently for lack of enough applications. In Minnesota, the vacancy rate for state government jobs rose to 11.5 percent in the 2023 fiscal year from 7.5 percent in 2019.That’s why the American Federation of State, County and Municipal Employees, known as AFSCME, decided it needed to pitch in on a function usually reserved for human resources departments: getting people in the door. The union has started a national campaign to generate buzz around frontline positions, while locals are contacting community organizations and even families of union members to spotlight opportunities.“Our employers are feeling the heat,” said Lee Saunders, the union’s president. “They understand that services are not being provided at the level that they should be provided. It’s a team effort as far as bringing fresh blood into the public service.”That was the point of the hiring fair in Minneapolis. Seventy-five job seekers filtered through, often looking for more stable or higher-paying positions than the ones they held, usually referred by a friend or relative in the union.Cassandra Crawford spoke to someone at nearly every table, looking for something better paid and more active than her remote job in health care administration. “The older you get, the more you want to move your body,” she said. Speaking with recruiters in person was also more encouraging than sending her résumé to an automated portal. “I think they might remember me,” she said, laughing.Joel Shanight, 43, a disabled Army veteran and Peace Corps volunteer with experience in hostile environments, expressed confidence that he had landed a job doing roadway assistance on state highways. After doing unsatisfying accounting work in the private sector, he was glad to have learned about positions that could allow him to help people again.“I can’t find that in the corporate world,” Mr. Shanight said. “There’s no compassion anymore.”Also present were high-level officials from the state government, including Jamie Long, the House majority leader, who praised the union for helping out. Other government unions — like the American Federation of Teachers, which represents a field that saw an exodus during the pandemic — also have programs to try to bring more people into the classroom.AFSCME plans to create a national training and development center that will maintain a database of available union-represented jobs and centralize apprenticeship programs to build the next generation of public servants.Joseph McCartin, the executive director of the Kalmanovitz Initiative for Labor and the Working Poor at Georgetown University, said he hadn’t seen anything similar since World War II, when unions joined the federal government to fill positions essential to the military effort. Unions can be trusted messengers in communities, he said, and have a better understanding of what job seekers are looking for than employers do.A tour bus used for recruitment by the American Federation of State, County and Municipal Employees, a trade union of public employees, at the hiring fair in Minneapolis this week.Tim Gruber for The New York Times“I think it’s an extraordinary development,” Dr. McCartin said. “It’s a great advantage when you have a partner that’s going to be working with you to try to help you solve this problem.”Some states that limit collective bargaining in the public sector think that not having to deal with labor organizations allows them to adapt compensation more quickly in response to staffing needs. But they still deal with their share of difficulty in hiring.Take Idaho, whose population boomed during the pandemic. By the 2022 fiscal year, the state was facing vacancy rates as high as 20 percent at the Department of Corrections and 15 percent in the Department of Health and Welfare. A benchmarking analysis found that state jobs paid 24.6 percent less than the private sector for comparable positions, and annual turnover had reached 21.8 percent.The state ramped up recruiting, eased formal education requirements for some positions and brought on contractors to fill labor gaps, which is expensive. Those moves didn’t solve the problem, especially for less attractive shifts at hospitals, prisons and veterans’ homes, which couldn’t fill available beds because of understaffing.So in early 2023, Gov. Brad Little, a conservative Republican, asked for an 8.5 percent across-the-board pay increase for state workers over two years, with another 6 percent for those in public safety. Next year the governor plans to seek the same bump for workers in health care, information technology and engineering.The Legislature generally went along with those recommendations, with a few tweaks. But given the continuing constraints, Lori Wolff, head of the Division of Human Resources, said she was looking for ways to provide services with fewer people, especially for tasks like enrolling people in state benefits.“There’s a lot of jobs that we’re going to have to start looking at technology to solve,” Ms. Wolff said.The state’s 199 municipalities have an even tougher time increasing pay and adopting automated services. The state has limited their ability to raise revenue through property taxes, so it has been more difficult to compete. Skyrocketing housing costs are compounding that problem, fueled by high-income remote workers who moved out of bigger cities during the pandemic.Kelley Packer, director of the Association of Idaho Cities, said she had recently spoken with a member whose public works director had been forced to live in his car.“It’s a really interesting balancing act to allow for the growth to happen, and meet the needs of the housing crisis that we’re in, and still be able to provide services with a restricted property tax system,” Ms. Packer said.Of course, it’s not all about salary. Rivka Liss-Levinson, research director with Mission Square, said people usually listed three primary motivations to work for governments: job security, job satisfaction and robust retirement benefits. Conveying the value of comparatively generous health care coverage and pensions, plus the public service mission, is still the basic strategy.“Those things haven’t really changed over time,” Dr. Liss-Levinson said. “States and localities that are able to address these needs and concerns are the ones that are going to thrive when it comes to recruitment and retention.” More

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    Flood of Workers Has Made the Fed’s Job Less Painful. Can It Persist?

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    Federal Reserve officials thought job gains would taper off more, but they’ve remained strong. An improving supply of workers has been crucial.Hotels in New York’s Adirondack Mountains are having an easier time hiring this summer, partly as immigrants enter the country in greater numbers and provide a steady supply of seasonal help that was hard to come by in and just after the pandemic.It is making staffing less stressful for companies like Weekender, a brand that includes seven rustic hotels in and around the region. The company has managed to get six cultural exchange workers this summer, up from four last year. And similar stories are playing out across the country, offering good news for the Federal Reserve.Fed officials are trying to wrestle inflation down by raising interest rates and slowing the economy. A big part of the task hinges on restoring balance to the labor market, which for 23 straight months had notably more jobs available than workers to fill them. Officials worry that if competition for workers remains fierce and wages continue to rise as quickly as they have been, it will be hard to fully stamp out fast price increases. Companies that are paying up to lure workers will try to charge more to cover their climbing labor bills.The Fed can help to cool the labor market by lowering demand, but the central bank has been getting more help than expected from a growing supply of workers. In recent months, workers have piled into the labor market in numbers that have surprised policymakers and many economists.The development is owed partly to a rebound in immigration as the United States has eased pandemic-related restrictions, cleared processing backlogs and enacted more permissive policies. Labor supply has also received a boost as some demographic groups — including women in their prime working years — have returned to the job market in bigger numbers than anticipated, pushing their employment rates to record highs.That influx has made the Fed’s job a little less painful. Hiring has been able to chug along at a solid clip without further overheating the labor market because job seekers are becoming available to replace those who are getting snapped up. Unemployment has held steady around 3.5 percent, and some data even suggests that staffing is becoming less strained. Wage growth has begun to slow, for instance, and workers are no longer pulling such long hours.“Monetary policy is part of the story to get demand moving towards supply, but any help we can get from supply increasing, that’s good news,” John C. Williams, the president of the Federal Reserve Bank of New York, said in an interview with The Financial Times this month.Employers have added about 280,000 workers per month so far in 2023. Job gains have been gradually slowing, but that is nearly triple the 100,000 pace that Jerome H. Powell, the Fed chair, suggested he expected would be necessary to provide jobs for a steadily growing population.The expanding supply of workers has allowed the Fed to accept the faster-than-expected hiring without slamming the brakes on the economy even more aggressively. Fed officials, who have raised interest rates above 5 percent from near zero in March 2022, have nudged them up more and more slowly over recent months. Policymakers are expected to raise rates by a quarter-point at their meeting this week, to a range of 5.25 to 5.5 percent. Many investors are betting the decision, which will be announced on Wednesday, could be the Fed’s final move for now.What the Fed does in the remainder of 2023 will depend on economic data. Does inflation, which slowed considerably from its peak in June 2022, continue to moderate? Do job gains and wage growth continue to drift lower? If the economy keeps a lot of momentum, officials might feel the need to make another move this year. If it cools, they might feel comfortable stopping rate increases. In either case, policymakers have been signaling that rates will probably need to remain high for some time.When it comes to the labor market part of that puzzle, key officials have signaled that they think the next phase of restoring balance could be the more difficult one. Policymakers have welcomed newfound labor supply in recent months, but some doubt the trend can continue. Mr. Williams suggested that immigration could remain strong, but that it might be difficult for participation — the share who are working or looking — to climb much higher.Great Pines is part of Weekender, a brand that includes seven rustic hotels in and around the Adirondacks.Amrita Stuetzle for The New York Times“I don’t think there is a lot of space for that to continue to be a big driver of the rebalancing of supply and demand,” Mr. Williams said in his July interview — explaining that the Fed will need to keep using policy to slow labor demand in order to lower inflation.Some economists and labor groups think officials like Mr. Williams are being overly glum about the prospects for continued improvement in labor supply: Immigration numbers are still climbing, and flexible and remote work arrangements might mean that people who could not work in past eras now can.“That ability for the labor supply side to continue to improve, I think the Fed has probably undersold it,” said Skanda Amarnath, executive director at Employ America, a research and advocacy group focused on the job market. “I think they’re probably underselling it even now.”Worker shortages began to bite in late 2020, after deep layoffs and curbs on immigration shrank the labor pool. The civilian labor force — which includes people who are working or looking for work — plummeted by eight million people in early 2020.But the supply of workers has since rebounded by about 10.6 million people. That recovery has owed partly to a pickup in the foreign-born labor force, which has accounted for roughly one in every three potential workers added since the pandemic low point, based on Labor Department data.Legal immigration has been gaining steam as processing backlogs clear and Biden administration policies allow more refugees into the country, said Julia Gelatt, associate director of the U.S. Immigration Policy Program at the Migration Policy Institute. Undocumented immigration has also been notable, increased by political turmoil abroad and the draw of a comparatively strong and stable American economy.“We are seeing a sizable increase in immigration,” Ms. Gelatt said. “Certainly a rebound to the pre-Trump, prepandemic normal.”The recovery in documented immigration is clear in visa data. About 1.7 million workers may enter the country this year if current trends continue, about 950,000 more than at the low point during the pandemic, Courtney Shupert, an economist at MacroPolicy Perspectives, found in an analysis.In fact, immigration may be even stronger than before the pandemic, when policies by President Donald J. Trump reduced the number of foreigners entering the United States. The number of potential workers coming into the country on visas in May alone stood about 50,000 more than was normal from 2017 to 2019, she found.Weekender’s six cultural-exchange visa workers are spread across three of its seven properties, and are a small but important chunk of its 85-person work force.Amrita Stuetzle for The New York TimesImmigration is not the only potential source of new labor supply. Employment rates have been climbing across the board, with the share of disabled people and women between the ages of 25 to 54 who work reaching new highs, possibly bolstered by a shift to more remote work and more flexible hours that took place amid the pandemic.“It’s given us a supply of workers we haven’t had before, because workplaces are more flexible,” said Diane Swonk, chief economist at KPMG.The result has been helpful for businesses like the Weekender hotels in the Adirondacks. The firm’s six cultural-exchange visa workers are spread across three of its seven properties, said Keir Weimer, the founder of the company, and are a small but important chunk of its 85-person work force.The company has also been having an easier time competing for employees in general after a few years of adaptation. Mr. Weimer estimated that pay was up 10 to 15 percent over the past 15 months, but said wage growth was beginning to cool.“We’re starting to now get more defined on career-track progression and having wages tied to performance and promotion, rather than just market,” he said. “There’s definitely less wage pressure than there was a year ago.”Of course, new labor supply can also bolster demand: As more people work, they earn money and spend it, said Jason Furman, an economist at Harvard, counteracting any drag on inflation. That does not mean that improving labor supply is not helpful.“It is a way to have a higher pace of job growth without inflationary pressure,” he said.But even as employers and economists embrace a slowly normalizing labor market, the supply of workers faces a big headwind: an aging population. America is graying as baby boomers, a big generation, move into their retirement years, and older people are much less likely to work.That is why some officials at the Fed doubt that climbing labor supply can do a lot of the heavy lifting when it comes to rebalancing the labor market — a skepticism some economists share.“I think we will have a lack of supply, still,” said Yelena Shulyatyeva, senior economist at BNP Paribas. More

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    How TV Writing Became a Dead-End Job

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    The writers say Hollywood studios are increasingly limiting their roles in television productions, highlighting a trend for white-collar workers.For the six years he worked on “The Mentalist,” beginning in 2009, Jordan Harper’s job was far more than a writing gig. He and his colleagues in the writers’ room of the weekly CBS drama were heavily involved in production. They weighed in on costumes and props, lingered on the set, provided feedback to actors and directors. The job lasted most of a year.But by 2018, when he worked on “Hightown,” a drama for Starz, the business of television writing had changed substantially. The writers spent about 20 weeks cranking out scripts, at which point most of their contracts ended, leaving many to scramble for additional work. The job of overseeing the filming and editing fell largely to the showrunner, the writer-producer in charge of a series.“On a show like ‘The Mentalist,’ we’d all go to set,” Mr. Harper said. “Now the other writers are cut free. Only the showrunner and possibly one other writer are kept on board.”The separation between writing and production, increasingly common in the streaming era, is one issue at the heart of the strike begun in May by roughly 11,500 Hollywood writers. They say the new approach requires more frequent job changes, making their work less steady, and has lowered writers’ earnings. Mr. Harper estimated that his income was less than half what it was seven years ago.While their union, the Writers Guild of America, has sought guarantees that each show will employ a minimum number of writers through the production process, the major studios have said such proposals are “incompatible with the creative nature of our industry.” The Alliance of Motion Picture and Television Producers, which bargains on behalf of Hollywood studios, declined to comment further.SAG-AFTRA, the actors’ union that went on strike last week, said its members had also felt the effects of the streaming era. While many acting jobs had long been shorter than those of writers, the union’s executive director, Duncan Crabtree-Ireland, said studios’ “extreme level of efficiency management” had led shows to break roles into smaller chunks and compress character story lines.But Hollywood is far from the only industry to have presided over such changes, which reflect a longer-term pattern: the fracturing of work into “many smaller, more degraded, poorly paid jobs,” as the labor historian Jason Resnikoff has put it.In recent decades, the shift has affected highly trained white-collar workers as well. Large law firms have relatively fewer equity partners and more lawyers off the standard partner track, according to data from ALM, the legal media and intelligence company. Universities employ fewer tenured professors as a share of their faculty and more untenured instructors. Large tech companies hire relatively fewer engineers, while raising armies of temps and contractors to test software, label web pages and do low-level programming.Over time, said Dr. Resnikoff, an assistant professor at the University of Groningen in the Netherlands, “you get this tiered work force of prestige workers and lesser workers” — fewer officers, more grunts. The writers’ experience shows how destabilizing that change can be.The strategy of breaking up complex jobs into simpler, lower-paid tasks has roots in meatpacking and manufacturing. At the turn of the 20th century, automobiles were produced largely in artisanal fashion by small teams of highly skilled “all around” mechanics who helped assemble a variety of components and systems — ignition, axles, transmission.By 1914, Ford Motor had repeatedly divided and subdivided these jobs, spreading more than 150 men across a vast assembly line. The workers typically performed a few simple tasks over and over.For decades, making television shows was similar in some ways to the early days of automaking: A team of writers would be involved in all parts of the production. Many of those who wrote scripts were also on set, and they often helped edit and polish the show into its final form.The “all around” approach had multiple benefits, writers say. Not least: It improved the quality of the show. “You can write a voice in your head, but if you don’t hear it,” said Erica Weiss, a co-showrunner of the CBS series “The Red Line,” “you don’t actually know if it works.”Ms. Weiss said having her writers on the set allowed them to rework lines after the actors’ table read, or rewrite a scene if it was suddenly moved indoors.She and other writers and showrunners said the system also taught young writers how to oversee a show — essentially grooming apprentices to become the master craftspeople of their day.But it is increasingly rare for writers to be on set. As in manufacturing, the job of making television shows is being broken down into more discrete tasks.In most streaming shows, the writers’ contracts expire before the filming begins. And even many cable and network shows now seek to separate writing from production. “It was a good experience, but I didn’t get to go to set,” said Mae Smith, a writer on the final season of the Showtime series “Billions.” “There wasn’t money to pay for me to go, even for an established, seven-season show.”Showtime did not respond to a request for comment. Industry analysts point out that studios have felt a growing need to rein in spending amid the decline of traditional television and pressure from investors to focus on profitability over subscriber growth.In addition to the possible effect on a show’s quality, this shift has affected the livelihoods of writers, who end up working fewer weeks a year. Guild data shows that the typical writer on a network series worked 38 weeks during the season that ended last year, versus 24 weeks on a streaming series — and only 14 weeks if a show had yet to receive a go-ahead. About half of writers now work in streaming, for which almost no original content was made just over a decade ago.Members of the Writers Guild of America have been on strike since May.Mark Abramson for The New York TimesMany have seen their weekly pay dwindle as well. Chris Keyser, a co-chair of the Writers Guild’s negotiating committee, said studios had traditionally paid writers well above the minimum weekly rate negotiated by the union as compensation for their role as producers — that is, for creating a dramatic universe, not just completing narrow assignments.But as studios have severed writing from production, they have pushed writers’ pay closer to the weekly minimum, essentially rolling back compensation for producing. According to the guild, roughly half of writers were paid the weekly minimum rate last year — about $4,000 to $4,500 for a junior writer on a show that has received a go-ahead and about $7,250 for a more senior writer — up from one-third in 2014.Writers also receive residual payments — a type of royalty — when an episode they write is reused, as when it is licensed into syndication, but say opportunities for residuals have narrowed because streamers typically don’t license or sell their shows. The Alliance of Motion Picture and Television Producers said in its statement that the writers’ most recent contract had increased residual payments substantially.(Actors receive residuals, too, and say their pay has suffered in other ways: The streaming era creates longer gaps between seasons, during which regular characters aren’t paid but often can’t commit to other projects.)The combination of these changes has upended the writing profession. With writing jobs ending more quickly, even established writers must look for new ones more frequently, throwing them into competition with their less-experienced colleagues. And because more writing jobs pay the minimum, studios have a financial incentive to hire more-established writers over less-established ones, preventing their ascent.“They can get a highly experienced writer for the same price or just a little more,” said Mr. Harper, who considers himself fortunate to have enjoyed success in the industry.Writers also say studios have found ways to limit the duration of their jobs beyond walling them off from production.Many junior writers are hired for a writers’ room only to be “rolled off” before the room ends, leaving a smaller group to finish the season’s scripts, said Bianca Sams, who has worked on shows including the CBS series “Training Day” and the CW program “Charmed.”“If they have to pay you weekly, at a certain point it becomes expensive to keep people,” Ms. Sams said. (The wages of junior writers are tied more closely to weeks of work rather than episodes.)The studios have chafed at writers’ description of their work as “gig” jobs, saying that most are guaranteed a certain number of weeks or episodes, and that they receive substantial health and pension benefits.But many writers fear that the long-term trend is for studios to break up their jobs into ever-smaller pieces that are stitched together by a single showrunner — the way a project manager might knit together software from the work of a variety of programmers. Some worry that eventually writers may be asked to simply rewrite chatbot-generated drafts.“I think the endgame is creating material in the cheapest, most piecemeal, automated way possible,” said Zayd Dohrn, a Writers Guild member who oversees the screen and stage master’s degree program at Northwestern University, “and having one layer of high-level creatives take the cheaply generated material and turn it into something.”He added, “It’s the way coders write code — in the most drone-like way.” More

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    U.S. Economy Adds 209,000 Jobs in June as Pace of Hiring Cools

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    Hiring slowed last month, a sign that the Federal Reserve’s inflation-fighting campaign is taking hold. But with rising wages and low unemployment, the labor market remains resilient.The U.S. labor market showed signs of continued cooling last month but extended a two-and-a-half-year streak of job growth, the Labor Department said Friday.U.S. employers added 209,000 jobs, seasonally adjusted, and the unemployment rate fell to 3.6 percent from 3.7 percent in May as joblessness remained near lows not seen in more than half a century.June was the 30th consecutive month of job growth, but the gain was down from a revised 306,000 in May and was the lowest since the streak began.Wages, as measured by average hourly earnings for workers, rose 0.4 percent from the previous month and 4.4 percent from June 2022. Those increases matched the May trend but exceeded expectations, a potential point of concern for Federal Reserve officials, who have tried to rein in wages and prices by ratcheting up interest rates.Still, the response to the report from economists, investors and labor market analysts was generally positive. The resilience of the job market has bolstered hopes that inflation can be brought under control while the economy continues to grow.The year-over-year gain in wages exceeded that of prices for the first time since 2021Year-over-year percentage change in earnings vs. inflation More

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    Fed Rate Increases Hinge on Strength of Jobs and Economy

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    Federal Reserve policymakers are debating how much further they need to raise interest rates to ensure that inflation speedily returns to a normal pace, and that calculus is likely to depend heavily on the job market’s strength.Officials will closely watch the employment report on Friday, the last reading on job growth that they will receive before their July 25-26 meeting, for a hint at how much momentum remains in the American economy.Fed officials have been surprised by the economy’s staying power 16 months into their push to slow it down by raising interest rates, which makes borrowing money more expensive. While growth is slower, the housing market has begun to stabilize and the job market has remained abnormally strong with plentiful opportunities and solid pay growth. Fed officials worry that if wage growth remains unusually rapid, it could make it difficult to bring elevated inflation fully back to their 2 percent goal.That resilience — and the stubbornness of quick inflation, particularly for services — is why policymakers expect to continue raising interest rates, which they have already lifted above 5 percent for the first time in about 15 years. Officials have ratcheted up rates in smaller increments this year than last year, and they skipped a rate move at their June meeting for the first time in 11 gatherings. But several policymakers have been clear that even as the pace moderates, they still expect to raise interest rates further.“It can make sense to skip a meeting and move more gradually,” Lorie K. Logan, the president of the Federal Reserve Bank of Dallas, said during a speech this week, while noting that it is important for officials to now follow up by continuing to lift rates.She added that “inflation and the labor market evolving more or less as expected wouldn’t really change the outlook.”Fed officials predicted in June that they would raise interest rates twice more this year — assuming they move in quarter-point increments — and that the labor market would soften, but only slightly. They saw the unemployment rate rising to 4.1 percent from 3.7 percent currently.Investors widely expect Fed officials to raise interest rates at their July meeting, and the strength of the labor market could help to shape the outlook after that. While policymakers will not release new economic projections until September, Wall Street will monitor how policymakers are reacting to economic developments to gauge whether another move this year is likely. More