ESFPA E-News

Understanding America’s Labor Shortage

The U.S. Chamber of Commerce has provided some interesting analysis on labor shortages plaguing our economy:

The pandemic caused a major disruption in America’s labor force—something many have referred to as The Great Resignation. In 2021, more than 47 million workers quit their jobs, many of whom were in search of an improved work-life balance and flexibility, increased compensation, and a strong company culture.

But a closer look at what has happened to the labor force can be better described as ‘The Great Reshuffle’ because hiring rates have outpaced quit rates since November of 2020. So, many workers are quitting their jobs—but many are getting re-hired elsewhere.  

The U.S. Chamber is capturing the trends on job openings, labor force participation, quit rates, and more in our America Works Data Center.

Read on for an analysis of which industries have been impacted the most. For an in-depth look at how the worker shortage is impacting the nation overall, click here.  

Food service and hospitality struggle to retain workers

During the pandemic reshuffling, jobs that require in-person attendance and traditionally have lower wages have had a more difficult time retaining workers. For example, the leisure and hospitality and retail industries have had the highest quit rates since November 2020, consistently above 4.5 percent.

But at the same time, the hiring rate has been even higher. Leisure and hospitality lost 1 million workers in November 2021, but 1.2 million people were hired into the industry that same month. In fact, leisure and hospitality has maintained the highest hiring rate of all industries since November 2020 at 8.1 percent. This is compared to the national hiring rate which has hovered recently around 4.4 percent.

When taking a look at the labor shortage across different industries, the transportation, health care and social assistance, and the accommodation and food sectors have had the highest numbers of job openings.

But yet, despite the high number of job openings, transportation and the health care and social assistance sectors have maintained relatively low quit rates. The food sector, on the other hand, struggles to retain workers and has experienced consistently high quit rates.

Meanwhile, in more stable, higher paying industries, the number of employees quitting has been lower.

A closer look at labor force participation

To further understand shifts in the labor force, it is interesting to look at labor force participation across different industries. Some have a shortage of labor, while others have a surplus of workers.

For example, durable goods manufacturing, wholesale and retail trade, and education and health services have a labor shortage—these industries have more unfilled job openings than unemployed workers with experience in their respective industry. Even if every unemployed person with experience in the durable goods manufacturing industry were employed, the industry would only fill 65% of the vacant jobs.

Conversely, in the transportation, construction, and mining industries, there is a labor surplus. There are more unemployed workers with experience in their respective industry than there are open jobs.

The manufacturing industry faced a major setback after losing roughly 1.4 million jobs at the onset of the pandemic. Since then, the industry has struggled to hire entry level and skilled workers alike.

Remote work has changed the game

Some industries have been less impacted by labor shortages but are grappling with how to deal with the rise of remote work. For example, the rise of remote work might explain why there has been less “reshuffling” in business and professional services.

Gallop found that 91% of U.S. workers hoped they could continue working some of their hours from home, and three in 10 workers signaled they would seek new employment if they were recalled to the office.

The business and professional services industry has had lower unemployment rates and has maintained above average hiring rates. More than 1.2 million people were hired into the industry every month between July 2021 and November 2021. 

Two years ago, finance, management, professional services, and IT/telecommunication jobs were expected to have the highest potential for remote work. That has proven to be true as more than half of traditionally white-collar workers were still working from home at least part time in spring of 2021.

To remain competitive and attract new talent, employers have started to shift their corporate models. Many businesses have embraced remote or hybrid work models and flexible scheduling. Yet, no one solution to industry labor shortages or employee retention exists. Nor are any solutions appropriate for all industries or employers.

However, the U.S. Chamber is proud to lead the business community in identifying the actions employers can take to offer good jobs to Americans. Businesses can increase their hiring pools by removing barriers to entering the workforce by expanding childcare access and “second-chance” hiring, and providing opportunities for new and existing staff to be upskilled and reskilled on the job.

Learn more about how employer solutions through the Chamber’s America Works initiative here. 

Fuel Brokering, Timing, Market Movements, and Their Effects on Logging and Forest Products Transportation

Timing in a normal fuel market can be difficult. Timing in a volatile fuel market can be next to impossible. What can wood suppliers and forest product transporters do? Register today for next week's webinar on Fuel Brokering, Timing, Market Movements, and Their Effects on Logging and Forest Products Transportation and hear from Southern Logging Cooperative's CEO and President, Todd Martin, as he leads a discussion on fuel prices and their effects on the Logging and Forest products industry. 

Join FRA (Forest Resources Association) on Thursday, August 4th, at 2:00 pm. This webinar is approved for 1 category 1 CFE credit and will last one hour, including time for questions from participants. 

Congress to Break in August

U.S. Representatives and Senators will be in New York and their Districts for the traditional August recess break, starting next week through Labor Day.  If you see your federal officials at a public or private event, here are four key messages you can deliver to support the ESFPA’s efforts at the federal level.  Or if you take the time and email them please include these topics:

1.) Grow Markets for Wood Products.  We seek opportunities to build markets and add value to wood products.

•  Wood Products are Part of the Climate Solution. With the federal government putting a climate twist on almost every policy that takes shape, tell your lawmakers to keep wood products in their toolbox.  Hardwood floors, lumber, paper and other products store carbon and prevent its release into the atmosphere.  Lawmakers cannot hear this message often enough. Delivering it repeatedly will make sure that the industry gets credited, instead of penalized, by climate policies moving at the federal level. 
•  Protect and Expand International Markets.  The wood product sector is a powerful exporter of products “Made in the USA” and relies on foreign customers to support high quality jobs at home. To that end, remind your lawmakers of the importance of increased funding for the U.S. Department of Agriculture’s Market Access Program (MAP) and the Foreign Market Development (FMD) Program which support U.S. wood product exports.

2.) Oppose Tax Hikes that Harm American Wood Product Companies!   It’s important to communicate the benefits of the small business tax deduction and the flexible estate tax provisions included within the tax reform law of 2017 and oppose any efforts to roll them back.  Also, lawmakers must reject the idea of imposing a surtax on small business, a proposal which has recently been floated in the halls of Congress.

3.) Fix the Driver Shortage.  Fortunately, the “Infrastructure Investment and Jobs Act” enacted last year addressed some of the challenges related to the driver shortage.  Despite this progress, federal policy makers can do more.  This includes passage of the LICENSE Act—HR 6567 and S. 3556 - which would help expedite the issuing of commercial driver’s licenses.  Ask your lawmakers to cosponsor these important bills to help the industry.

4.) Help Wanted!  Fix the Worker Shortage.  Rep. Elise Stefanik (R-NY) has introduced the “Employer Directed Skills Act” (H.R. 6255) to alleviate the worker shortage.  The bill seeks to fill the gap between employer needs and employee skills by making existing workforce development programs more employer friendly and flexible.  Urge your House lawmaker to join as a cosponsor!

If you have any questions or need additional information on any of these topics please do not hesitate to reach out to us.  To Find your Congressional Representative go here.  

Inflation Reduction Act of 2022 Deal Announced

Last night, Senator Joe Manchin (D-WV) announced he reached an agreement with Senate Majority Leader Chuck Schumer (D-NY) to vote on the Inflation Reduction Act of 2022 (IRA). See press statement here.

The plan includes $739 billion in deficit-reduction measures over 10 years and would spend $433 billion, reducing the deficit by about $306 billion over a decade. It would include a 15% corporate minimum tax, close the carried interest loophole, include prescription drug price measures, boost Internal Revenue Service enforcement funds, provide money for carbon and methane emission reduction technologies, and extend Affordable Care Act subsidies.

Senate Democrats aim to pass the measure next week under their fiscal 2022 budget reconciliation instructions, requiring only a simple majority rather than the usual 60 votes. The bill’s enactment is far from a sure thing. All 50 Democratic senators would need to support it, as Republicans have consistently opposed Democrats’ reconciliation bills. Senator Krysten Sinema (D-AZ) has not said if she’ll support the bill.

Please find the following documents: 

• Text of the legislation 
• Summary of Tax and Healthcare Provisions
• Summary of Energy Provisions 

A few areas of importance include: 
 
Corporate Taxes

• The bill imposes a 15% minimum corporate levy on companies that have traditionally been able to pay little-to-no taxes because they were eligible for a long list of credits and deductions. This measure is known as the book tax, because it is applied to a company’s book, or financial-statement earnings, rather than the income calculation traditionally used for tax purposes. The regular, 21% corporate rate is left untouched.
• The Internal Revenue Service would get $80 billion to add auditors, improve customer service and modernize technology. Democrats hope to pull in $124 billion in tax revenue from cracking down on tax cheats and increasing compliance by rebuilding the IRS. The agency has lost staff and expertise over the past decade because of budget cuts.
• The plan would end the carried-interest tax break used by private equity and hedge fund managers to lower their tax bills. That allowed for a share of an investment manager’s income to be classified as a capital gain, which is taxed at 23.8% instead of the top 37% rate for salary and wage earnings.

Climate and Clean Energy
The plan has $60 billion of incentives to bring clean energy manufacturing into the U.S. These include production tax credits to accelerate U.S. manufacturing of solar panels, wind turbines, batteries, and critical minerals processing. The plan also includes investment tax credits to build clean technology manufacturing plants that make EVs, turbines and other products

We wanted to flag the following provisions of interest, which we are currently reviewing:

• Extension and modification to 45Q tax credit for carbon sequestration (pages 283-298)
• $5.8B for industrial decarbonization for several industries including pulp and paper (pages 618-620)
• Program to reduce methane emissions from oil and gas sector (pages 681-687)

Forestry/Farm Bill
The legislation would provide $19.9 billion for four conservation programs over four years, plus another $1 billion for conservation technical assistance and $300 million to USDA's Natural Resources Conservation Service to measure the impact of agricultural practices on greenhouse gas emissions. The Environmental Quality Incentives Program would get $8.45 billion, the Regional Conservation Partnership Program would receive $6.75 billion, another $3.25 billion would go to the Conservation Stewardship Program and the Agricultural Conservation Easement Program would receive $1.4 billion. With each program, USDA would be required to prioritize projects that "mitigate or address climate change through the management of agricultural production." An additional $5 billion would be earmarked for forestry. 

Combating Spotted Lanternfly

We need EVERY New Yorker to keep their eyes peeled for Spotted Lanternfly (SLF) this summer! SLF is a destructive pest that feeds on more than 70 plant species, including crops that are critical to New York’s agricultural economy, like grapevine, apple trees, and hops.

If you see a Spotted Lanternfly in New York City, kill it immediately by stepping on it or crushing it. People living in New York City do not need to report Spotted Lanternfly sightings to the Department or collect samples at this time.

If you live outside New York City, you can help the Department by reporting it immediately after it is found. Follow these steps:

• Take a photo
•  Collect a sample and place it in a freezer or in a jar with rubbing alcohol or hand sanitizer • Contact the SLF responders at https://agriculture.ny.gov/ReportSLF

After you have reported SLF in your area and collected a sample, you should kill any additional SLF you see by stepping on it or crushing it.

Thank you to everyone for your help in combating this invasive pest!

Log-A-Load for Kids Fund Drive Begins at Boonville

For 25 years, New York State Log-A-Load for Kids has participated in a nationwide program to support Children’s Miracle Network Hospitals, and the NYS Committee (i.e. the Mowrey Family) is once again reaching out to the forestry community for support.   

One way to participate is at the 2022 NYS Woodsmen’s Field Days. There will be many events going on, including fund drives and raffles. The Committee is looking for donations of goods, services, or loads of firewood to be raffled off at the Woodsmen’s Field Days as well as time at any of the booths. 

Any and all items donated are greatly appreciated and help raise thousands of dollars for children in need. Promotional items with company logos are popular and make excellent game prizes. Monetary donations will be used either for the purchase of supplies or will go directly to your local CMN Hospital. 

In celebration of New York Log-A-Load for Kids’ 25th anniversary, we are also asking our donors to please consider an additional 25% contribution. We’d like to make this a big year! 

Every donation makes a difference. If you are interested in donating or volunteering, please contact Gabriella Ferrera at gabriella@esfpa.org or Eileen Mowrey at emowrey12@gmail.com .