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Labor

Labor leader Joseph James Ettor (1885-1948) speaks in Union Square during the Brooklyn barbers’ strike of 1913. Public domain photo
By Aramis Khosronejad

Amid Labor Day celebrations, Long Island is working through a labor shortage crisis, according to New York State Assemblywoman Jodi Giglio (R-Riverhead), a member of the Assembly’s Standing Committee on Labor.

Like much of New York state, Suffolk County is navigating through various labor challenges such as its relatively high unemployment rate, lingering effects of the COVID-19 pandemic, high cost of living and rising inflation. 

Labor shortages

According to the 2023 Long Island Economic Survey, “We are in the midst of one of the nation’s biggest labor crises on record, with significant labor shortages affecting all industries and geographies.” 

In an interview, Giglio expressed her concerns for Long Island’s labor, suggesting “a lot of businesses [are] putting up help wanted signs and looking for somebody to fill these positions.” 

This July, according to the New York State Department of Labor’s Jobs and Labor Force press release, the unemployment rate in New York state “held constant at 3.9%. The comparable rate for the U.S. was 3.5%.” 

When asked whether she would consider the current labor shortage a crisis, Giglio replied, “Absolutely, it is a crisis.”

Post-pandemic recovery

The Long Island workforce is still feeling the long-term impacts of the pandemic, according to Giglio. She said much of the financial hardships were brought on by malfeasance.

“I think there was a lot of money that was stolen from the state by unemployment, fraud, and people [who] were finding ways to live less expensively,” Giglio said. Additionally, “Businesses are really struggling to stay afloat.”

Cost of living

Attributing a cause to growing labor shortages, Giglio offered that fewer young people are staying put. 

“It seems as though the kids that are getting out of college are finding different states to live in and different states where they can get meaningful jobs,” she said. “The high cost of living in New York and the jobs that are available are not able to sustain life here in New York, especially on Long Island.”

Wages

While the high standard of living in New York may be one factor contributing to labor shortages on Long Island, stagnating wages present yet another barrier.

The founder of Long Island Temps, Robert Graber, explained the complications of wages and inflation. 

“Wages have gone up, but inflation is outpacing the wage increase,” he said. “That makes it harder to recruit and fill positions.”

Migrant labor

Since spring 2022, a wave of migrants have entered New York state, the majority arriving in New York City. When asked if this migrant surge could help resolve the labor shortages islandwide, Giglio expressed some doubts. 

“I’ve been talking to a lot of business owners and organizations that have been trying to help migrants that are coming into the city, and some even making their way out to Long Island,” the assemblywoman said. “Some of their biggest problems are that they don’t have any documents, identification from their countries, nor do they have a passport, and they don’t have a birth certificate.” 

Giglio added that this lack of information could undermine effective integration into the Long Island labor force. “It’s really putting a strain on the government and the workload,” she said.

Martin Cantor, director of the Long Island Center for Socio-Economic Policy, says declining labor participation on Long Island gives him cause for concern. Photo of labor demonstration from Pixabay

On Monday, Sept. 5, Americans took off from work in honor of the contributions made by laborers throughout their national history. This Labor Day was an opportunity to catch up with Martin Cantor, director of the Long Island Center for Socio-Economic Policy. During an exclusive interview, he discussed some of the labor trends on Long Island, the success of remote work and the role of unions today.

How would you describe the current state of the labor force on Long Island?

First, we still haven’t recovered all of the jobs lost during the [COVID-19] pandemic. We’re about 30,000 jobs shy. However, we have a strong labor force — I think we have about 1.5 million people in it. Still, our labor participation rate is not as it once was prior to the pandemic. There are still people on the sidelines.

What labor trends on Long Island do you find most troubling? Also, which trends are most encouraging?

The most troubling is that a lot of our workforce has not come back. The economy cannot expand unless our workforce participation rate increases, and that gives me concern. The other thing that gives me concern is that the Federal Reserve is going to aggressively go after inflation by increasing interest rates. With employee productivity at record lows, that could mean layoffs in the future.

Speaking of layoffs, do you believe there is already a labor shortage on Long Island?

No, I don’t think there’s a labor shortage. I think that if there’s any kind of a shortage, it’s people not wanting to come back to work. 

How does the cost of labor factor into these growing economic concerns?

Well, the cost of labor is very important, and that’s part of what caused the inflation. Not only did we have all of that extra money that the federal government put in, but we arbitrarily increased the minimum wage. That led to higher prices in the marketplace. 

I’m not denigrating the minimum wage [$15 an hour on the Island] — it’s only $31,000 a year. It’s very difficult for one person to pay for rent, food and electricity living on the minimum wage, but it did have an economic impact.

Do you think that the gradual development of remote work will have a positive long-term effect on the labor force?

Well, it depends where you are. The quick answer is yes. Two things have happened during the pandemic. Number one: Employers learned to have a different business model that didn’t require everybody to come into the office. They were able to reduce the amount of space that they needed to rent. 

The other thing was that employees found they could have a better quality of life by working remotely. They didn’t have to commute two hours a day to get into the City. On the other side of the coin, Goldman Sachs just announced that there’s no more remote work and everybody has to come into the office in New York City.

Do you think a schism is emerging between those who work from home and those who go to the office?

I wouldn’t call it a schism, but I will tell you that how people work and how businesses operate have changed. I think that congestion pricing in the City is a big influencer on all of that. 

If people don’t want to ride the trains, they usually drive in and have to pay more money. They might insist on working remotely. They also might insist on getting higher wages from employers. Some businesses might relocate out of the City because it is too expensive and too onerous for their employees.

So I think you have several things that will impact where people work and how people work.

How has the relationship between workers and public transit evolved here on Long Island?

I will tell you this: The Long Island Rail Road is [operating] at about 50% less than its prepandemic ridership. I took the train about three weeks ago, and the train was empty. Even when I jumped on the train at Penn Station at about 4:30 — which is normally packed — the train was empty. 

What accounts for the popularity of labor unions today?

People have felt this was a very difficult time during the pandemic. Some people have taken a look at life’s choices and are saying, “Hey, I’m not getting paid enough to do this stuff.” They want better benefits, a proper workplace environment and a salary commensurate with their skills. That’s why unionization is at one of its highest points in years.

What is your long-term forecast for the regional economy on Long Island?

Our regional economy is doing well. Historically and even currently, Long Island has always been able to fend off bad economic times. I think we are doing fine and we will be doing fine. 

Labor Day offers a chance to consider the division of labor that makes living on Long Island and in the United States so incredible.

Police officers stand ready to protect and serve. They leave their homes with the best of intentions, providing safety, security and order to our communities.

Similarly, firefighters offer an enormous measure of protection for us individually and collectively, racing into burning buildings to save us and keeping fires from spreading to nearby homes.

Members of the military protect our interests and help residents in our communities, country and strangers around the world.

Priests, rabbis, imams and other spiritual leaders encourage us to aspire to greatness, to see beyond our frustration and anger, and to believe in a higher purpose and a grander plan. They bring out the best in us and suggest ways to give our lives meaning beyond meeting our basic needs.

Psychologists and psychiatrists act as handrails for people’s minds and emotions, helping us deal with a wide range of challenges, frustrations and difficulties.

Doctors, nurses and medical health professionals refuse to allow bacteria, viruses or injuries to get the better of us, standing ready to help us fight an infection, determining what that mysterious pain is and, at best, help treat the cause of the disorder and not just the symptoms.

Sanitation workers enable us to keep our homes and communities clean.

Supermarket workers stock the shelves, help us find gluten-free food to manage our growing list of allergies, and make sure they have the specific brand of the milk we buy.

Car mechanics allow us to reach our appointments on time and make it to our children’s concerts.

Teachers feed hungry young minds, encouraging and inspiring the next generation, coming in before school or staying late to will students across another academic finish line.

Beyond offering the welcoming smile at many companies, receptionists wear numerous hats, directing traffic through offices, sending phone calls to the right extension, and knowing how to find anything and everything.

When we maneuver through the purchase of a home, the establishment of a will or the adoption of the newest member of our family, lawyers guide us through each process, becoming advocates for our interests and close confidants.

In the wee hours of the morning, bakers start the process of creating scones, heating up coffee and mixing the batter for birthday cakes.

Truck drivers spend hours on the road, carting all manner of goods, bringing foods or marble we have to have on our kitchen counters.

Ferry workers usher us back and forth on the Long Island Sound to visit family, to take ski trips, to return to college, or to visit sites in Connecticut and farther north.

Plumbers, electricians and structural engineers make sure our homes and offices operate smoothly, preventing a leak from becoming a flood, a spark from becoming a fire or a weak wall from becoming an accident site.

Driven by the desire to inform and to beat the competition, journalists search for news that offers valuable information.

Entertainers of all stripes keep us laughing, allow us to relate to people from other places or times — or take us on fantastic journeys to places in their minds.

Politicians represent our interests, debating and hopefully instituting the best policies for the rest of us.

Numerous others, whose professions didn’t make it into this space, also help our communities function.

While Labor Day is a chance to say “goodbye” to summer, it presents an opportunity to appreciate the hard work everyone performs.

File photo

A mother was delivering a baby on the side of the road when officers on patrol stepped in early Wednesday morning.

The Suffolk County Police Department said a car was stopped on the side of Deer Park Avenue, just south of Jericho Turnpike in Dix Hills, shortly after 2 a.m. and when patrol officer Joseph Ferro offered assistance, the driver said his wife was in active labor.

Officers Gerard Maxim and Jonathan Murray also responded, police said, and Murray helped the 32-year-old woman deliver a healthy baby girl.

Police said the Huntington Community First Aid Squad transported the Dix Hills couple and their new baby to Huntington Hospital.

Anne Shybunko-Moore, CEO of GSE Dynamics, New York Secretary of State Cesar Perales and Keith Barrett, president of Huntington Station Business Improvement District, speak last week. Photo from Laz Benitez

A state plan to raise the minimum wage made its way to Hauppauge to show how higher pay could impact close to home.

Cesar Perales, secretary of state under Gov. Andrew Cuomo (D), spoke at GSE Dynamics on Oser Avenue March 18 outlining the governor’s proposal to capitalize on New York’s economic recovery by raising the minimum wage from $8.75 to $10.50.

Perales said the state has already created more than 500,000 new private sector jobs since the big recession — the second most in the country. But at the same time, wages have not grown fast enough and people are being left behind, he alleged.

“We had a bad few years after the recession in 2008, but we are out of it now and we are moving forward,” he said. “Unemployment is down and, in every region of the state, jobs are up.”

Cuomo’s plan calls for a $10.50 minimum wage across the state, except for New York City, where he suggests the minimum wage be increased to $11.50. In total, he said more than 1.35 million workers would see a wage increase throughout the state, bringing a direct economic impact of nearly $3.4 billion.

“The minimum wage should allow people who work full-time jobs to support themselves and their families – but that is just not possible today,” Cuomo said. “Our proposal will help hundreds of thousands of New Yorkers better sustain themselves and live with dignity and respect. The State Legislature must pass our proposal this year, because the sweetest success is shared success and we won’t rest until we are all rising together.”

During four of the five recent increases in the state’s minimum wage dating back to 1991, data indicated an employment uptick each time the wage went up, Perales said.

“Under this plan, nearly 150,000 workers here in Long Island will see a pay raise,” he said. “In a family with two earners, the increase from $8.75 to $10.50 translates to more than $7,000 in additional income per year.”

The proposal said Long Island currently sees 85,264 total minimum-wage workers earning $8.75 today. But under the new plan, 202,248 Long Island workers would earn the minimum wage, bringing a direct economic value of $382.3 million to the island, Cuomo said.

Perales spoke alongside Keith Barrett, president of the Huntington Station Business Improvement District as well as Anne Shybunko-Moore, CEO of Hauppauge’s GSE Dynamics, to explain how higher minimum wages could bring better business to the North Shore.

“Raising the minimum wage is not just about money, it’s about opportunity,” Perales said. “It’s about saying that everyone who works a full-time job should have the chance to live a decent life and put food on the table for themselves and their loved ones. Because at the end of the day, we are all part of the same community and the same state, and we are at our best when we all do well together.”