The nation’s unemployment rate spiked to 5.5 percent in May, which was the biggest one-month jump in decades and caused help wanted signs to vanish in almost every area of the country.
But those signs are still hanging around in St. Charles Parish. In fact, some businesses, like full-service and fast food restaurants, are having trouble even finding prospective workers to come in for interviews.
“I don’t think it’s any secret that we are in a tight labor market,” Corey Faucheux, director of economic development and tourism for St. Charles Parish, said. “I know that many of our businesses are having trouble right now, especially those in the service and retail food industry.”
A tight labor market occurs when there are more jobs in the market than potential employees.
Thelma Dodson, who manages Occasion’s Restaurant and Lounge, says that the tight labor market is wreaking havoc on her business.
“We’ve been having trouble since about a year after Hurricane Katrina,” she said. “In the beginning, I could understand it, but I can’t now.”
Dodson says that the restaurant has even had to change its hours of operation. Occasion’s used to be open from 11 p.m. to 2 p.m. and 5 p.m. to 9 p.m. during the week. Now, the restaurant only stays open from 11 p.m. to 2 p.m.
“My help wanted sign has been up since a year after Katrina,” Dodson said. “I haven’t taken it down since. We are hurting big time and we’re short-handed, which isn’t good for business.”
Faucheux says that one of the reasons more restaurants don’t open up in the area is that the parish just doesn’t have a great density of workers. Two restaurants, Wingzzz and 90 West, were even forced to close for a short time. Wingzzz reopened under new ownership, while 90 West is set to do the same.
“You look at Metairie and New Orleans and the density of people within a close radius of their businesses is just so great,” Faucheux said. “We just don’t have that. It’s really hitting restaurants and fast food establishments the hardest, and to an extent, some retail businesses.”
Kristi Brocato, owner of The Basketry in Luling, says that while she is looking for employees, the labor market has had no effect on her business.
“I think we are a good company to work for so we don’t lose employees,” she said. “I just think the quality of applicants has declined in recent years. I think job applicants need to educate themselves about the application process and be prepared when entering a business they are applying to.”
Kathy Fisher, co-owner of Great Southern Furniture, also says that she has managed to keep employees around for the long-haul. However, finding new workers has proved to be difficult.
“We have always been able to keep our employees around, but when we do look to add personnel, it is hard to find people,” Fisher said. “Especially office staff.”
Ninas Jenkins, the manager of McDonalds in Destrehan, does have trouble finding finding adult workers throughout the year. When it comes to the summer though, the employees are beating down the door.
“We always have a problem finding adult workers, but normally during the summer we get a lot of students,” he said.
Those students should help ease some of the strain on local businesses for the next three months.
Faucheux agrees that teens can help the parish’s labor market, but admits that it’s really just a short-term solution.
“The places that are hurting are usually those that employ younger workers,” he said. “Having teens out of school for the summer will help, but only for a little while.”
However, Faucheux said the lack of an abundant supply of qualified and motivated job seekers is a critical concern among the largest and smallest businesses in St. Charles Parish.
To help better understand the labor problem, the parish and the River Region Economic Development Initiative (RREDI) commissioned a workforce study. The analysis included a comprehensive survey of businesses and residents inside the parish. The study identified key issues pertaining to the current and future demand for local workers, while highlighting related supply-side factors.
St. Charles Parish President V.J. St. Pierre said the effort is essential to his economic development vision.
“The data collected will be used to ensure that we are satisfying the workforce development needs of our residents and our employers,” St. Pierre said.
Results of the survey will be made public in two weeks.
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