Posted on 09/22/2021 8:40:04 PM PDT by lasereye
Do a read through of the disappointing earnings report out of FedEx on Tuesday night and you get the sense non-farm payrolls reports for the rest of 2021 may surprise economists to the downside.
The problem (one that may be getting worse, per FedEx)? Finding humans to accept jobs in a very tight labor market even at higher rates than what the job paid months ago.
"The impact of constrained labor markets remains the biggest issue facing our business as with many other companies around the world and was the key driver of our lower than expected results in the first quarter," FedEx COO Raj Subramaniam told analysts on an earnings call.
FedEx said its quarterly results were drilled by $450 million due to labor shortages alone, notably at its ground segment. The company estimated a shocking 600,000 packages across the FedEx network are being rerouted.
Those processing bottlenecks stand to wreak havoc on the holiday season if FedEx is unable to address the worker shortage, which increasingly appears unlikely.
To illustrate the point on its labor challenges, FedEx shared the current state of play at one of its facilities in Portland, Oregon.
Explained Subramaniam, "Our Portland Oregon hub is running with approximately 65% of the staffing needed to handle its normal volume. This staffing shortage has a pronounced impact on the operations, which results in our teams diverting 25% of the volume that would normally flow through this hub because it simply cannot be processed efficiently to meet our service standards. And in this case the volume that diverted must be rerouted and process, which drives inefficiencies in our operations and in turn higher costs. These inefficiencies included adding incremental linehaul and delivery routes, meaning more miles driven and higher use of third-party transportation to bypass Portland entirely."
(Excerpt) Read more at finance.yahoo.com ...
If the feds would stop all the welfare, people would go back to work. This ain’t complicated.
Even worse, the FedEx delivery guy for our area usually has his truck tucked away on a little side road. Like he is napping or something.
Translation: “We need more illegal immigration.”
Ya gotta wonder if the rapture happened and the world governments are coverin’ it up! :P
What’s odd is that the welfare has to have dried up already. At least in my red state September was THE last month yet there are now hiring signs everywhere with stores closing.
There can’t be THAT much of a shortage unless people are just really scared of covid after being programmed for a year (and I know some that are)
I don't buy it, either. The labor shortage is a myth.
One article quoted an employer complaining. She said she interviewed 27 people and hired 8. Then she complained that 5 of the 8 didn't show up or something.
Must be FedEx ground (green). They are contractors.
I can’t imagine FedEx express employees (purple/orange) doing that unless he was on his break.
Dear FedEx. Here’s an idea — get your hub out of drug-addled “woke” Portland. Signed, everyone with a brain.
You echo my thoughts exactly. But, bear in mind the Uncle Sugar unemployment really just ended a week or two ago. It might take another couple of weeks for folks to feel the pain and realize that even Sleepy Joe and the Dims aren’t going to reinstate this. So I think many will begin to take gainful employment.
And I question how many are in fear. I had a convo with a person at my company (but in another city) today. We are supposed to begin returning to our offices next month. It’s a “once more - with feeling” kind of thing, since they tried it this summer, but then turned up a couple of positive covid tests, and most likely some whiney staff. So they stopped it. But this gal I talked to is still very afraid!!!
I have to wonder if there’s not some drama queening going on.
This isn’t due to welfare. This is a combination of retirements of the baby boomers that was greatly accelerated due to COVID since many could have retired already, workers pulling back from second jobs, and two-income families deciding that they prefer to spend time with their children and live off of one income.
Checking out packages to see what might be worth stealing?
Bingo. You wrote it perfectly in your post.
I was invited to apply for an administrative position in a Christian School.
I am thinking about it. But, I also feel I’ve I’ve done my part and enjoy being retired. More than that, I’ve gone Gault. I refuse to pay taxes to Josef Stolen’s illegitimate government.
Yeah, the monthly $300 that the feds were paying not to work ended shortly after Labor Day. It will take a while before we know if the labor shortage has been remedied. So many jobs out there I would take my time to find a good job with a decent wage.
I live in a small town in Central Texas. Subway, Taco Bell and a mexican food restaurant are closed. No help.
Stop paying people to NOT work.
How are these people able to be unemployed so long?
No Bills?
Is this planned so all the “refugees” will be hired at surf wages to do the jobs these lazy-A$$ed US citizens are unwilling to do?
From what I’ve seen of your posts, you’d be a great and positive influence in such a role.
Oh...just hire these invading Haitians. Or, import ‘highly educated’ folks, from the Philippines to fill these jobs, like hospitals plan to do.
The Biden Way™
Sorry rank and file.
(Do I really need a sarc tag?)
I have a hypothetical and a question.
If those Americans with jobs, suddenly stopped paying taxes, would the government, the corporations, and the talking heads ALL start blathering about “The Taxes Americans Just Won’t Pay”™, and begin raiding companies that hired illegal aliens and H1-Bs and getting the money from there?
There’s a certain asymmetry, I’ve noticed.
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