The COVID-19 pandemic of 2020-21 still overshadows today's economy. During the pandemic, the unemployment rate jumped to over 14 percent and over 20 million jobs were lost. The effects of the pandemic hit Blacks, Hispanics, Indigenous Americans, and low-income families particularly hard, and the recovery has been uneven as well.
As the economy has rebounded, labor force participation has not kept pace, likely due to a combination of factors such as lack of childcare, early retirements, and health concerns. So the labor market has been tight, with workers having more bargaining than prior to the pandemic. Many workers are quitting their jobs to gain better pay elsewhere. But even still, many workers saw their real earnings decline in the face of high inflation in 2022 stemming from supply chain disruptions, Russia's invasion of Ukraine, and corporate profit-taking. Indeed, corporate profitability is at record levels while worker earnings for all but the top earnings have lagged for decades.
As such, the U.S. economy is characterized by high levels of inequality. After adjusting for inflation, the purchasing power of today's average hourly wage is about the same as it was in the 1960s, even though productivity has increased significantly. Starting in the 2010s, wages and salaries have fallen to their lowest share of U.S. gross domestic product since data collection began in 1947, while the share for corporate profits has been at record highs. The economic divide between those with and without college degrees as well as the uneven economic opportunities for women and members of marginalized groups are also areas of significant concern.
There has been a significant backlash against immigrants in the United States and around the world. It is illegal for companies to hire undocumented workers (those without proper work authorization), but some employers hire immigrant workers to keep labor costs low. In the Twin Cities hospitality industry, estimates of the fraction of the workforce that are immigrants are as high as 35 percent. It is estimated that the hospitality industry is the largest employer of not only immigrants, but also of welfare-to-work program participants and single parents.
On the public policy front, in red states, legislative action has enacted right-to-work laws and other policies favorable to business, while in blue states there have been numerous union and activist-led campaigns (such as Fight for $15) to enact worker-friendly policies. In 2017, Minneapolis enacted city ordinances creating a city minimum wage higher than the federal and state minimums, and requiring employers within the city to provide paid sick leave. In 2022, the Minneapolis minimum wage for business with over 100 employees became $15, with inflationary increases occurring each subsequent January 1 based on the national rate of inflation. The owner of The Zinnia used her political clout to have the hotel classified within a special economic opportunity zone which means that while The Zinnia is subject to the $15 minimum wage (which it is already paying), it is exempt from any inflationary increases. As part of this same deal, The Zinnia was able to temporarily delay being covered by the Minneapolis Sick and Safe Time law requiring paid sick leave, but with this round of bargaining, this delay is expiring and The Zinnia needs to become compliant with this law.
Accounting Department
Balance Sheet
Departmental Expense Statements
Hospitality Industry Background
HR Department
Labor Market Analysis
Getting Started training video and handout
Contract Proposal Worksheets (Word / Google doc)
Costing Program (Excel / Google sheet)
Internal Memos
(Restricted Access)