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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 ...
Some of that building back better going on huh.
Several weeks ago one of the beverage vendors was In Kroger talking to Mr. GG2 and offered him $28 an hour to help stock shelves because he can’t get anybody to work. Mr.GG2 couldn’t believe it.
I wish that were happening around here. The highest pay I see is $15/hour, and the jobs seem to fill quickly.
Read not long ago that the unemployed make more than I earned as a technical writer in my peak earning years. What a strange world we live in!
Millions of people make these decisions everyday, even with the enhanced Covid payments..
If you would like more information about what’s happening in Oregon, please FReepmail me. Please send me your name by FReepmail if you want to be on this list.
sometimes the trucks are reloaded
Women coming home? not seeing it here.
Those who qualify for earned income credit (or whatever it’s called) are getting $300 to $350 per month per child deposited into their checking accounts on the 15th of each month. Four children (two under six—and two under 17) equals $1300 per month. Add that into their foodstamps and rental assistance money and there is no need for them to go to work. If they live in a low cost-of-living state they can manage just fine without working.
People can be pickier about jobs when they aren’t paying for housing. Much of the housing in the US is still under eviction/foreclosure moratoria, and even that which isn’t will require individual journeys through court systems by landlords to evict their deadbeat tenants. This can take months or more.
Things might change as more deadbeats find their worthless asses out on the street.
Weekly not monthly.
Well we certainly hope so, don't we?{:~)
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