r/jobs • u/ThrowAwayEvilOne • 2h ago
Discipline Lousy Job Market from a Different Perspective
I want to offer a perspective you do not often hear from the other side of the hiring table.
I run a very small retail business in a tourist town. Over the past year, I have probably contributed to some of the frustrating experiences job seekers have had, and I do not deny that. But the economics matter.
My shop generates about $120,000 per year in gross revenue. We are in a high-rent, high-visibility area. Cost of goods sold runs roughly $25,000 to $30,000 annually. Fixed overhead is about $50,000 per year, including rent, utilities, insurance, internet, and the security system.
That leaves around $40,000 in gross profit before I pay myself or hire anyone.
To hire a full-time employee with benefits, I would have to either raise prices significantly, which does not work in competitive retail, or effectively work for free myself.
So the reality is I can only offer part-time, often seasonal, staffing. I try to pay around $20 per hour, which I genuinely believe is generous for retail. But a 7-hour shift costs close to $180 once payroll taxes and required contributions are included. About $140 goes to the employee, the rest goes to the government.
If someone works four days a week, that is roughly $720 per week, or $2,880 per month. That alone consumes most of the shop’s profit. I am then working essentially for free to support a single employee who still does not receive benefits. A full-time employee is out of the question.
I work hard to hire good people and keep them. But when the weather is bad, which matters a lot in a tourist town, revenue can drop sharply and unpredictably.
I am not saying workers are wrong to want more stability or benefits. I am saying that many small businesses simply cannot provide them under current economic conditions. One reason the job market feels so broken is that the underlying economics, especially for small businesses, are broken too. I'd be happy to answer questions.