EDMONDS, Wash — The labor shortage and other aggravating factors are hitting at the worst possible time for small businesses that are counting on the holiday shopping season to offset losses during the pandemic.
Comstock Jewelers in Edmonds has seen more than 30 Christmases since it opened in 1978.
Owner Erin Comstock, however, says this year her shop has apparently lost some of its sparkle for workers.
"It's puzzling," she said. "We'd be a great place to work. I don't know why people wouldn't want to work here."
Comstock has been trying to fill two full-time positions for more than 6 months. She's willing to raise pay to $17 an hour, but still no takers. Right now, her daughter is working the floor and the family business is very much just that.
"My husband had retired. Now he's semi-retired. He's come back in," said Comstock. "We had to shorten our hours. We're now open Tuesday to Saturday 10 to 5. We're closed Sundays and Monday."
According to the National Federation of Independent Businesses,
51 percent of small businesses are currently unable to fill job openings. Another 42 percent of them have had to raise their pay. The overwhelming majority, 92 percent, still couldn't find qualified applicants.
Much of that is because places like Amazon are raising their starting wages to $19 an hour or more.
Combine the higher wages with supply chain issues, leading to fewer available products, and fewer workers and it's a recipe for lower profits.
"Will we see some business closures? Yep," said Hart Hodges, director of the Center for Economic and Business Research at Western Washington University.
Hodges doesn't see things getting better until after the holidays.
"Burnout is going to be huge, and not just for business owners. The remaining staff who are filling in for the missing staff, and the owners who are filling in for the missing staff, the hours that small business owners are working now is unbelievable."
Despite that, Hodges is optimistic.
"This is not a recession that has hurt demand. Consumers want to spend. As far as the supply chain, I think we see improvement sooner rather than later. Inflation will also bring workers back, but it's hard. Businesses have to adapt."
In the meantime, in Edmonds we found a tea shop promising a rate of $22 an hour along with a $500 signing bonus. Businesses aren't just competing for customers anymore, they're also competing for employees.
"We'll make it work," said Erin Comstock. "It'll be easier with another person, but we'll make it work."
After a pandemic plagued holiday season in 2020, many small cities around the region are launching campaigns to get people to shop locally.
The Mount Vernon Chamber of Commerce is producing a local Holiday Shopping Catalogue this year, alongside hosting Small Business Saturday events on Nov. 27 and a Small Business Saturday parade on Dec. 5. Leading up to the holidays, shoppers will be able to participate in a local shopping campaign. For every $5 spent at a participating merchant, shoppers can receive a punch on a card that can be entered into a raffle for a variety of prizes from local merchants.
The City of Bellingham is leading a shop local campaign beginning Thanksgiving weekend through the end of the year called #ShineBrightDTBham. The program aims to have at least 50 street-level storefront windows and/or parkettes with illuminated displays and lighting. Participating businesses can be voted as the best in three different categories. Participating voters will be entered to win special prizes.
Edmonds is continuing to push its local gift certificate program called Edmonds CASH. Recipients can spend their gift certificates in over 35 places, including clothing stores, spa services, restaurants and car detailing. That way, the money stays local and can't be spent online.