Business leaders discuss hiring problems with lawmakers

Jun. 18—Business officials told a committee of state lawmakers Thursday that Kentucky is in dire need of workers to fill available jobs and companies have become creative in their need to find employees.

"There are 90,000 (job) openings on our website," Ashli Watts, president and CEO of the Kentucky Chamber of Commerce told members of the Interim Joint Committee on Tourism, Small Business and Information Technology on Thursday.

Statewide, Watts said, there are two open jobs for every available worker.

But numerous factors are keeping people out of the labor force, officials from the Chamber of Commerce and Kentucky Retail Federation told committee members. For example, some workers are hampered from returning by the lack of child care, while others are fearful of returning to retail after the COVID-19 pandemic, officials said.

Expanded federal unemployment benefits are also "part of the issue as well," Watts told lawmakers. She said the chamber is in support of the state ending the extra federal unemployment payments, which are currently scheduled to end in September.

Finding workers "is a very real problem," Watts said. "We hear about it every day."

Tod Griffin, president of the Kentucky Retail Federation, said experts predict retail sales will grow by 10% to 13% this year. Some of the measures adopted during the pandemic, such as reduced business hours and automation, will likely become permanent, he said.

But difficulty finding employees is constraining retail outlets, Griffin said. In a recent survey of Retail Federation members, "just about every one of them has positions to fill."

Some retail stores have begun offering health insurance and other benefits as incentives, Griffin said. When people who were offered retail jobs and declined them were asked why, a majority said the deciding factor was "the federal unemployment payment," he said.

Kentucky extended unemployment payments to up to 50 weeks in January. In addition, Kentucky participates in the Federal Pandemic Unemployment Assistance Program, which provides recipients with $300 a week in federal funds.

Kevin Cranley, chairman of the Retail Foundation, said unemployment payments are keeping restaurants from operating.

"What I'm hearing ... is restaurants can't open because they can't find workers," Cranley said.

The Retail Federation supports Gov. Andy Beshear's idea to provide incentives for people who join the workforce.

Retail businesses "suffer from an inaccurate perception," Cranley said. "Sure, we have entry-level jobs ... but there are retailers like myself that support families, careers and a high standard of living."

While some lawmakers urged Beshear to cancel the extra federal unemployment payment, others said the payments had been vital for some residents.

Federal unemployment payments "have brought over $4 billion to this state" since the CARES Act was passed last year, said Sen. Reginald Thomas, a Lexington Democrat. "That money was spent on food, housing, clothing.

"I support the Governor and his position" to not end the federal payments, Thomas said.

Watts said the "workforce participation shortage" affects every member of the state chamber.

"There are 100,000 fewer people in the workforce today than there was last March when the pandemic hit," Watts said.

People who retired or switched careers during the pandemic have also created worker shortages, she said. Also, "We know some people are still concerned about their safety in coming back to work."

"We don't know the perfect solution," Watts said.

Hiring issues have affected more than retail businesses and restaurants. Karen Cecil, human resources director for Century Aluminum, said the company has had problems with applicants who don't show up for interviews or who have substance abuse issues.

"We do believe the enhanced unemployment benefits have hurt us a little bit," Cecil said, adding that some workers who received federal stimulus payments have opted to not work until their stimulus dollars run out.

While the work at Century Aluminum is high-paying, the working environment is tough, Cecil said, and about half of new workers quit after two months.

The lack of new employees has strained the company's workforce, she said.

"Not being able to hire as quickly as we need to is a big component."

When asked if OPD would consider hiring a "lateral" officer from another department who had sustained policy violations in his or her background, Winkler said, "We have had multiple laterals apply at OPD over the last 12 months that did not meet our standards, and we are not willing to compromise on certain issues we find in people's backgrounds, simply because we are short personnel."

James Mayse, 270-691-7303, jmayse@messenger-inquirer.com, Twitter: @JamesMayse

James Mayse, 270-691-7303, jmayse@messenger-inquirer.com, Twitter: @JamesMayse