Labor Shortage for cruise lines. Article on Reuters

[happycamper47]

With all the discussions about the problems people have seemed to encounter this may be why.

From Reuters yesterday:

U.S. cruise operators' recovery runs into rough weather as labor crisis worsens​

The cruise industry is sailing in choppy waters yet again as it has to deal with a storm of labor problems, red-hot inflation and recessionary threat, after barely steadying itself from the blows of an 18-month shutdown due to the pandemic.

https://www.reuters.com/markets/us/...ough-weather-labor-crisis-worsens-2022-07-20/

 

[goofy4prez]

The job market is crazy everywhere. I have a hard time hiring people to work earning 45-70K a year here in Ohio. I can only imagine how difficult it is to hire someone to work on a cruise ship.

 

[KashasMom]

Yup, it's a problem all over. Many airports in Europe are a disaster right now.

 

[Intr3pid]

Doesn't mean it's business as usual elsewhere, but the ship being referred to in the article is NCL's PoA. Since it must hire a majority US crew, it has unique staffing problems.

For the others - beyond COVID itself - the situation in Eastern Europe has been the main issue this year. Cruise lines have tried to improvise by hiring more from Asia but that pool also needs more training.

 

[KVH]

So, based on the article, root cause is ". . .pandemic-related visa restrictions on travel in many countries and a general preference for flexible working hours have hit the industry's ability to boost staffing". Regardless of the 30+ articles so far this year moaning about the pathetic pay of staff. I mean, I'm sure a ton of new hires for the big lines stepped right up during their interview and listed their "general preference for flexible working hours." Uh huh. Excluding engineering staff (who have a needed trade skill), I would think cruise staff are either "I really want to do this" or "I have no other options where I live or with my skillset" types. As for engineer-types, think of it this way, would they rather be doing a nasty job on the engines on a cruise ship or doing the same job on a 50-year old ore hauler in the Indian Ocean in Force 9 storm? I would think that who gets what assignment might cause a few fights in the union hall. Even when entry level pay is less then $20K/yr

Maybe if they paid a little better the potential pool of candidates who meet their needs would increase? Crazy idea, huh?

 

[happycamper47]

Doesn't mean it's business as usual elsewhere, but the ship being referred to in the article is NCL's PoA. Since it must hire a majority US crew, it has unique staffing problems.

For the others - beyond COVID itself - the situation in Eastern Europe has been the main issue this year. Cruise lines have tried to improvise by hiring more from Asia but that pool also needs more training.

You missed this part of the article:

The industry employs about 250,000 workers onboard from over 100 countries and their jobs range from being a ship's captain to a cocktail mixer, according to industry trade body Cruise Lines International Association (CLIA).

However, pandemic-related visa restrictions on travel in many countries and a general preference for flexible working hours have hit the industry's ability to boost staffing to cater to a boom in travel and leisure activities.

 

[Intr3pid]

You missed this part of the article:

The industry employs about 250,000 workers onboard from over 100 countries and their jobs range from being a ship's captain to a cocktail mixer, according to industry trade body Cruise Lines International Association (CLIA).

However, pandemic-related visa restrictions on travel in many countries and a general preference for flexible working hours have hit the industry's ability to boost staffing to cater to a boom in travel and leisure activities.

That's a pretty generic statement you can read in any travel article in the last two years.

 

[kanerf]

I expect we will see robotic CMs and other service workers within 5 years.

 

[MadTownKatz]

I expect we will see robotic CMs and other service workers within 5 years.

Or if we listen to the Simpsons, we will have monkey butlers

 

[DCLMP]

I’m more surprised they are all still in business with all the debt they’ve taken on and the profits they’ve lost.

 

[happycamper47]

I’m more surprised they are all still in business with all the debt they’ve taken on and the profits they’ve lost.

DCL is in a unique situation, from the others, since it is backed by revenue from the parks ABC, ESPN, and all the other DIS entities, since their primary business is not cruising. That was brought up when they all shut down in 2020.

 

[DCLMP]

DCL is in a unique situation, from the others, since it is backed by revenue from the parks ABC, ESPN, and all the other DIS entities, since their primary business is not cruising. That was brought up when they all shut down in 2020.

I wasn’t referring to DCL.

 

[Cheburashka]

The great resignation baffles me. I can't help but wonder where everyone is suddenly getting the money to live. Sure the government way overshared, to put it mild, and that might explain shortages for unskilled labor, but those handouts aren't going to keep skilled workers supported in a middle class lifestyle.

Did a lot of people who are married just decide to revert to one income? I don't get how people are making it without jobs otherwise, especially in the midst of historic inflation.

 

[Princesca]

Did a lot of people who are married just decide to revert to one income? I don't get how people are making it without jobs otherwise, especially in the midst of historic inflation.

We did. There is a significant income gap between us, and when we decided to have a kid (conceived right before COVID, whee) we decided she just wouldn't go back to work. At what she was making, half would have gone to day care, and with day cares opening and closing for COVID more than a revolving door, we decided it didn't make financial sense, nor was it worth the risk of our infant getting COVID. So we are getting by on one income now. It hasn't been easy, but I think there are people who have decided that it's less onerous to make sacrifices in spending than it is to work for peanuts doing a job they didn't like anyway. Not to mention that those jobs were often high risk for COVID.

I'd also be willing to bet retirement savings have dropped since COVID. Just a hunch. We've kept mine up, but of course my wife is not investing in any kind of 401k right now and we can't really afford for her to until she goes back to work.

And yeah, the inflation on one income is pretty anxiety-inducing. :/

 

[Sykes]

The great resignation baffles me. I can't help but wonder where everyone is suddenly getting the money to live. Sure the government way overshared, to put it mild, and that might explain shortages for unskilled labor, but those handouts aren't going to keep skilled workers supported in a middle class lifestyle.

Did a lot of people who are married just decide to revert to one income? I don't get how people are making it without jobs otherwise, especially in the midst of historic inflation.

The vast majority of those who actually left the workforce were older people that chose to retire. The labor participation rate amongst prime working age people is down a slightly (a trend that has been ongoing since 2000) but not substantially. Most of “the great resignation” is people shuffling away from positions and industries with poor wages and working conditions and taking better jobs elsewhere rather than leaving the workforce entirely, and that is hitting hospitality and food service especially hard.

 

[DCLMP]

The great resignation baffles me. I can't help but wonder where everyone is suddenly getting the money to live. Sure the government way overshared, to put it mild, and that might explain shortages for unskilled labor, but those handouts aren't going to keep skilled workers supported in a middle class lifestyle.

Did a lot of people who are married just decide to revert to one income? I don't get how people are making it without jobs otherwise, especially in the midst of historic inflation.

It's a mystery, isn't it? In the early 90' s when I was going to college and doing skilled jobs you could walk in anywhere and get hired on the spot. It's the same now. During the recession of 2008, there were no jobs for young people. There were middle-aged laid-off engineers working at our local target. I felt very fortunate during that time I had a recession-proof job.

Companies are talking about layoffs again and a recession is coming things could look a lot different a year from now. My 19-year-old just got a job and I've told my soon to be 18 year old when we get back from this cruise he better start looking before things change.

 

[JLTraveling]

The vast majority of those who actually left the workforce were older people that chose to retire. The labor participation rate amongst prime working age people is down a slightly (a trend that has been ongoing since 2000) but not substantially. Most of “the great resignation” is people shuffling away from positions and industries with poor wages and working conditions and taking better jobs elsewhere rather than leaving the workforce entirely, and that is hitting hospitality and food service especially hard.

Not to mention those that entered the freelance world. I went out on my own long before the pandemic, and I've seen a huge influx since the first shutdown. Let's see: Sit in front of a computer all day on someone else's schedule, super close to a ton of other desks, while wearing business attire? Or make more money sitting in front of my own computer, in yoga pants, on my own schedule? No brainer in my line of work.

 

[Cheburashka]

The vast majority of those who actually left the workforce were older people that chose to retire. The labor participation rate amongst prime working age people is down a slightly (a trend that has been ongoing since 2000) but not substantially. Most of “the great resignation” is people shuffling away from positions and industries with poor wages and working conditions and taking better jobs elsewhere rather than leaving the workforce entirely, and that is hitting hospitality and food service especially hard.

I'm an elementary school teacher, and a TON of people from my (good) elementary school left at the end of the year. All 3 administrators, both special education teachers, 4 out of 7 teachers on my team, and so many other teachers that the question people asked each other end of year was, "Are you coming back?" instead of "What are your summer plans?" Almost all of the people leaving are in their prime, not aging out.

I know some are pursuing different careers, and even I am in graduate school to get into administration because I can no longer afford to live on a teaching salary in my non-union state. So perhaps teaching falls into that "poor wages and working conditions" category. Without a spouse or being in retirement, though, you can't maintain your lifestyle without a job.

There are so many shortages at different levels of society, that it isn't just limited to those aging out and in service sector jobs.

 

[Princesca]

I'm an elementary school teacher, and a TON of people from my (good) elementary school left at the end of the year. All 3 administrators, both special education teachers, 4 out of 7 teachers on my team, and so many other teachers that the question people asked each other end of year was, "Are you coming back?" instead of "What are your summer plans?" Almost all of the people leaving are in their prime, not aging out.

I know some are pursuing different careers, and even I am in graduate school to get into administration because I can no longer afford to live on a teaching salary in my non-union state. So perhaps teaching falls into that "poor wages and working conditions" category. Without a spouse or being in retirement, though, you can't maintain your lifestyle without a job.

There are so many shortages at different levels of society, that it isn't just limited to those aging out and in crappy jobs.

This is a good call-out. In the past week I've seen articles from two different cities (one in Maryland and one in Kentucky) saying they have record numbers of teachers resigning and retiring. IDK what teachers make in MD, but it's not good in KY.

 

[TwoMisfits]

The vast majority of those who actually left the workforce were older people that chose to retire. The labor participation rate amongst prime working age people is down a slightly (a trend that has been ongoing since 2000) but not substantially. Most of “the great resignation” is people shuffling away from positions and industries with poor wages and working conditions and taking better jobs elsewhere rather than leaving the workforce entirely, and that is hitting hospitality and food service especially hard.

And for those folks, SS is almost fully inflation-protected, so they won't take the income hit that working young adult families (who likely won't get raises that even come close to matching the inflation rate) will, so they don't have as strong a need to go back.