So after having gone over a lot of opinions on different sides of the aisle during the past few months time, the answer is quite clear for most experts on this topic.
So the big apple has the biggest problem finding people wanting to work for 15 dollar an hour.
And yes the benefits provided by the government plays a role in this, but it is not the full story.
The biggest problem is the cost of living in New York compared to what you can make in a coffee shop or a restaurant.
Very often a restaurant worker will bring home 1600 dollar after taxes in salaries and with maybe a 20 dollar tip to take home each day 20 days a month, we are at 2000 dollars in total take home pay.
You can live on 2000 dollars a month in Florida, but the NYC if a very different story for most pepole.
In New York city the average rent is 2200 dollars for an apartment and almost everybody making minimum wage or close to the minimum wage has a room mate or lives with family, and these are quite shitty apartments to begin with.
Let us the run the numbers quick here together so we see what we are talking about.
Your rent is 1200 dollars before utilities, then comes the utilities for 100 dollars a month.
Now we have 700 dollars left to work with for the monthly budget.
200 dollars will go towards food and 200 dollars towards basic medical coverage.
Now we have 300 dollars left to work with, then comes transportation which will cost at lest 50 dollars a month in New York, and this is taking into consideration that you bike and walk some of the days each month.
So now to have some kind of joy in your life, you need broadband internet access and a mobile phone now another 50 dollars is taken out from the budget.
Then you will have some kind of social life for 50 dollars a week, and now the last 200 dollars are gone.
So this conversation that some people want to get to that you can save 200-300 dollars a month on a 2000 dollars take home pay in New York is just flat out a ridiculous statment unless you do not pay for health insurance.
So always being broke at the end of the month, just to have the pleasure of living in New York city is not okay for a lot of people in 2021.
In Florida you can live way better on 2000 dollars in take home pay each month.
You can rent with a room mate a much better place in Florida for 500 dollars each per month, and the food cost is also lower as so many other costs also are compare to the big apple.
New york has never been a cheap city to live in and over the past 30 years that cost has just increased for each year.
There is also one more thing that has really opened the eyes of young adults in these Covid-19 times and that is that you need to self-reflect more than ever on your life and on your future.
And most people have come to the conclusion that New York city is not worth the pain that it takes to be able to actually be able to reside in the city.
So now this is a huge problem for a lot if mom and pop restaurants and this is also one of the reasons why 40% of the NYC restaurants that was open in 2019 will not open ever again.
This labor shortage affects a lot of businesses, but restaurant work has always been a low paying job and you have been forced to also survive a lot on tips.
When the unemployed benefits runs out in September, there will be a spike in people going out to look for a job and some companies will find enough workers for now.
But many workers have also left the state for greener pastures and will not be heading back to the city ever again!.
So while some experts on the right want to blame the unemployment benefits as the main villain in this story.
The actual reason is that people have been willing to struggle for years to stay in the big cities and while the cost of rent and other necessities have gone up in price every year, the wages have not.
So there will be labor shortages for the next 3 years at least in many businesses.
This can also be a good thing for the people making minimum wage that some benefits will be offered by employers to get and to keep staff working.
But for a lot of small mom and pop restaurant’s and establishments this will be the end of their run, because they can nit pay benefits to their workers and still satay open with the absolutely ridiculous rents that we still see for commercial properties in New York city.
So you all take care out there.
And if you need business advice from experience business advisers feel free to check out our shop in the link here below.
Here is a good link to see how much it cost to live in the NYC.