Shale Country Is Out of Workers and Dangling 100% Pay Hikes

[Free Vulcan]

Jerry Morales, the mayor of Midland, Texas, and a local restaurateur, is being whipsawed by the latest Permian Basin shale-oil boom.

It’s fueling the region and starving it at the same time. Sales-tax revenue is hitting a record high, allowing the city to get around to fixing busted roads. But the crazy-low 2.1 percent unemployment rate is a bear. As the proprietor of Mulberry Cafe and Gerardo’s Casita, Morales is working hard to retain cooks. As a Republican first elected in 2014, he oversees a government payroll 200 employees short of what it needs to fully function.

“This economy is on fire,” he said from a back table at the cafe the other day, watching as the lunchtime crowd lined up for the Asian Zing Salad and Big Mo’s Toaster hamburger.

https://www.bloomberg.com/news/articles/2018-06-06/shale-country-dangles-100-pay-raises-as-labor-market-runs-dry

[RoosGirl]

Well damn, I might be able to make a correlation to what salaries in the trades would do if we didn't have so much available umm... unskilled laborers.  I also might be able to make a correlation to what all salaries would do if mothers stayed home and raised their children, but that's probably just me being sexist or something.

[Frank Cannon]

Well damn, I might be able to make a correlation to what salaries in the trades would do if we didn't have so much available umm... unskilled laborers.  I also might be able to make a correlation to what all salaries would do if mothers stayed home and raised their children, but that's probably just me being sexist or something.

You damn racist. All you Trumpers are alike.

[RoosGirl]

You damn racist. All you Trumpers are alike.

Don't call me that.  People here that I like will stop liking me.

[Frank Cannon]

Don't call me that.  People here that I like will stop liking me.

You like people?

[RoosGirl]

You like people?

   No, not really.  Just being hysterical.

[dfwgator]

Get rid of welfare for able-bodied people and they would break down the doors trying to get a job there.

[IsailedawayfromFR]

Get rid of welfare for able-bodied people and they would break down the doors trying to get a job there.

I call it a two-fer.

Actually, a three-fer as then more Income, SS and Medicare taxes will be paid when people work.

[Oceander]

Get rid of welfare for able-bodied people and they would break down the doors trying to get a job there.

Maybe

[IsailedawayfromFR]

Maybe

The only 'Maybe' is whether some will accept working in Midland and surrounding environs.

What other 'Maybe' were you contemplating?  Starving?

[Joe Wooten]

The only 'Maybe' is whether some will accept working in Midland and surrounding environs.

What other 'Maybe' were you contemplating?  Starving?

Midland? I was thinking of starting a company to build rent houses in that garden spot known as Barstow, then maybe Pyote for the overflow. In the eastern part of the Permian Basin, I was thinking of maybe acquiring lots in Barnhart, Broome, and Vincent........

[IsailedawayfromFR]

Midland? I was thinking of starting a company to build rent houses in that garden spot known as Barstow, then maybe Pyote for the overflow. In the eastern part of the Permian Basin, I was thinking of maybe acquiring lots in Barnhart, Broome, and Vincent........

lived in Bakersfield, the urban area compared to Barstow.

Both would be similar to the politics and environment of Midland.

[Weird Tolkienish Figure]

I've read more than a few economists who've said that recessions are actually caused by... labor shortages, of all things.

[Weird Tolkienish Figure]

In other words a labor shortage represents an absolute pinnacle for living standards at that point of time. Once employers cannot get enough workers, they have to raise wages (good thing), but then raise prices (bad thing), and consumer's living standards fall (bad thing), due to prices raised.

Not that I agree necessarily, but an interesting POV.

[thackney]

lived in Bakersfield, the urban area compared to Barstow.

Both would be similar to the politics and environment of Midland.

I did pipeline work in both.  Built a NatGas Compressor station on old Route 66 in Barstow.

Agree with you, I do.  Bakersfield was a breath of fresh air (okay, figuratively) compared to working in most of California.

[Joe Wooten]

lived in Bakersfield, the urban area compared to Barstow.

Both would be similar to the politics and environment of Midland.

Not Barstow, Californicatia, Barstow Tx, Just to the NE of Pecos......

[thackney]

Not Barstow, Californicatia, Barstow Tx, Just to the NE of Pecos......

@Joe Wooten

I misunderstood as well.  Mostly because my personal experience in Barstow, CA; it is what I think of first.

Cheers!

[Joe Wooten]

@Joe Wooten

I misunderstood as well.  Mostly because my personal experience in Barstow, CA; it is what I think of first.

Cheers!

No problem. I did a mental coin flip on whether to choose Barstow or Toyah......

[IsailedawayfromFR]

Not Barstow, Californicatia, Barstow Tx, Just to the NE of Pecos......

I bet both Barstows are the same

[Bigun]

I bet both Barstow are the same

I'll bet you could blindfold someone and fly them to both places and they wouldn't be able to tell you which one they were in at the moment.

[jmyrlefuller]

As the proprietor of Mulberry Cafe and Gerardo’s Casita, Morales is working hard to retain cooks.

Well, yeah. That's night and weekend work, and most people don't want that kind of work forever. They have social lives. They may have kids and want to be there for their sporting events, concerts, recitals. It prevents people from taking part in community activities with first-shift society.

The service industry has always struggled to retain workers, as has any business that relies on shift work. People can only tolerate it for so long before they want something better.

[Joe Wooten]

I bet both Barstows are the same

Not much left of Barstow, TX except for a few houses.


Downtown Barstow


The suburbs

The photos are from Texas Escapes.

[Joe Wooten]

[thackney]

What I remember of Barstow, CA, would never have that much grass.

It rained 1/4 the first day I was there.  That evening they talked about the massive rain fall on the news for at least 20 minutes, and again for the next 4 days (talking about it, not actually raining).

[IsailedawayfromFR]

What I remember of Barstow, CA, would never have that much grass.

It rained 1/4 the first day I was there.  That evening they talked about the massive rain fall on the news for at least 20 minutes, and again for the next 4 days (talking about it, not actually raining).

when I lived in Bakersfield it rained .25 in and closed the schools - too much flooding caused by no storm sewers