Latest news with #laborcrisis
New York Times
28-07-2025
- New York Times
How Can I Be Sure My Clothes Aren't Made in a Sweatshop?
Ever since the 2013 disaster at Rana Plaza in Bangladesh, the deadliest accident in the history of the garment industry, it has been impossible for anyone to deny knowing that there is a labor crisis in the modern fashion world. It is one that prioritizes the constant production of more and cheaper stuff over the safety and livelihoods of many of the people employed to make that stuff. Since then, a variety of laws and private agreements have been put in place to supposedly change this reality, but in fact every year seems to bring new revelations about fashion brands being caught for working with manufacturers that enforce sweatshop conditions. Once upon a time these revelations centered primarily on fast-fashion or mass-fashion brands working with factories far overseas, but lately, as you point out, they have also come from luxury houses that are working with factories in Italy. Brands like Dior, Armani, Valentino, Montblanc and Loro Piana have all gotten in trouble because of factories in Italy said to be operating with abusive conditions. Often the factories that have been subcontracted by factories the luxury brands officially employ, though similar stories have been made public since the release of the 2007 documentary 'Luxury Slaves.' This is particularly jarring, because for years luxury brands justified their high price tags by pointing to the quality of both the materials and the labor as well as the know-how involved in creating their products. The implication was that part of what you were paying for was the security that what you were buying was made in a responsible way, by people who were fairly paid for their expertise. This is why 'Made in Italy' and 'Made in France' became synonyms for 'made well.' Not anymore. These days, policing supply chains can feel like playing Whac-a-Mole. As soon as one bad actor is exposed, another one pops up. If you want to know how bad it is, check out the investigations of an NGO called Transparentem that is focused on stopping modern slavery. It has looked into the supply chains of more than 100 apparel companies. So what's a consumer to do? It's not enough to check to see if a brand claims to demand a code of conduct by their suppliers. The only way a brand can ensure that a factory abides by the rules is to fully own it. And while brands like Louis Vuitton and Hermès do, many companies also contract out to factories that sometimes then subcontract. A lot of them, it turns out, don't have complete pictures of where their products are made. Want all of The Times? Subscribe.
Forbes
17-07-2025
- Business
- Forbes
Deportations: Who's Picking The Lettuce And Cutting Up Steaks?
YUMA, ARIZONA - JANUARY 10 : Migrant workers harvest lettuce in agriculture field, near Yuma, ... More Arizona. (Photo by Getty Images/Bob Riha, Jr.) U.S. Food Industry on the Brink of Labor Crisis: Deportations and Medicaid Work Rules Causing Operational Complexity. Higher Food Prices and Shortages On The Horizon. A sharp convergence of immigration enforcement and Medicaid reform is rattling America's food-processing sector. With plans underway to deport roughly 1 to 1.3 million undocumented workers across agriculture, meatpacking, dairy, and processing plants, businesses are warning of critical labor shortages. According to USDA data, 42% of U.S. farm laborers lack legal work authorization. In meatpacking, estimates suggest 30–50% of frontline workers are undocumented, totaling 160,000–270,000 individuals . Deporting these workforces could shutter operations, spike costs, and pressure margins across the food supply chain. Secretary of Agriculture Brooke Rollins has floated an unconventional counterproposal: replace deported migrant labor with 'able‑bodied Medicaid recipients.' She noted on July 8 that 34 million adults are on Medicaid, implying it could serve as a domestic labor pool . But food business insiders and policy analysts are not only skeptical but consider such a thesis laughable. Further demonstrating the ignorance of policy makers and the effects of their actions on businesses. Real-world data underscores the disconnect: of the 34 million Medicaid recipients, only 5.6 million are unemployed, and fewer are fit for rural, physically demanding jobs—leading analysts to estimate 500,000–750,000 could realistically transition into ag roles. The math reveals a looming shortfall: Description: Undocument workers by agri-segment and gaps to place qualified workers back into sector ... More as well as "remaining gap" or "shortfall" (quantity of works still needed). Even the most optimistic recycling scenario leaves a half‑million plus deficit—with concentrated vulnerability in labor‑intensive fresh produce and red-meat sectors. Factory owners and farm leaders say U.S. workers won't easily fill the gap. Andrew Mickelsen, a seventh-generation Idaho potato farmer, told WBUR: 'We… offer $17 an hour… but… we rarely get local responses. The unemployment rate is basically zero.' Businesses are exploring alternatives: Automation, though costly and slow in deployment. Expansion of H‑2A visas, a guest‑worker program already encumbered by administrative hurdles and capacity limits could be a solution if more attention was paid to solving the processing complexity with applications. Business implications are acute. Expect higher labor costs, supply-chain bottlenecks, and increased margin pressure in consumer-facing food companies. Investors should monitor CapEx dynamics, especially in automation and workforce integration, as firms pivot to fill structural labor gaps. Chobani CEO Hamdi Ulukaya, said the Trump administration's aggressive immigration enforcement practices pose risks to the food supply chain – 'we need to be very realistic' Ulukaya said at the WSJ Global Food Forum in Chicago last month. 'We need immigration, and we need workers for our food system to work'. Absent swift policy pivot—whether expanding visa programs, easing deportations in essential sectors, or investing heavily in rural labor pipelines—the industry risks economic disruption at both regional and national levels. The combined impact of immigration enforcement and Medicaid policy shifts creates a high-risk labor environment for the U.S. food industry. For companies across the value chain—from agtech startups to multinational processors—the imperative is clear: reassess workforce strategies, re-evaluate risk exposure, and prepare for tighter labor markets. If policymakers don't resolve the growing disconnect between political rhetoric and labor market realities, the result may not just be higher wages—but higher prices, supply instability, and margin pressure industry-wide. The pain of on going deportations and aggressive immigration actions will ultimately be felt by consumers through shortages of basic daily foods and much higher food prices.
Forbes
02-07-2025
- Business
- Forbes
Can Gen Z Fix Construction's Labor Crisis? This Startup Is Betting Yes
Young construction worker When Shreesha Ramdas first started building tech companies in the early 2000s, he didn't expect his path would lead him to one of the oldest industries in America: construction. A seasoned entrepreneur and investor, Ramdas has had multiple successful exits to large corporations including SAP and Medallia. And with his latest company, Lumber, he is betting that with the right technology — and a new generation of workers — construction's persistent labor crisis can be solved. Backed by over $22.5 million in venture capital from Foundation Capital, Carbide Ventures, Arc180 VC, 8VC, FirstHand VC, Sure Ventures, and Converge Ventures, Lumber is tackling a sector that generates $2.1 trillion annually in the U.S. but is lagging in innovation. 'This is one industry where technology has not made a big impact yet,' Ramdas says. And yet, the unique complexities necessitate intervention. The project-driven nature of construction work, frequent worker turnover, heavy regulations, union rules and the volume of credentialing for the craftsmen, are just a few reasons why labor management is challenging. Lumber's strategy: reinvent workforce management with digital tools that not only reduce inefficiency but help attract the next generation of talent. The Perfect Storm The construction industry is facing a convergence of several challenges: a labor shortage, an aging workforce, tightening immigration policies, declining productivity, and heightened demand from reshoring and housing crises. 'In researching this industry, I spoke to about 200 construction companies… and kept hearing one thing, which was: we don't have enough workers. And it's very tough to retain workers,' Ramdas says. According to McKinsey, construction and manufacturing companies in the U.S. are competing for a dwindling supply of skilled craftsmen, or tradespeople like carpenters, masons, electricians, welders, and plumbers. The situation intensified post-COVID, driving up wages over 20% since 2020 and adding billions in hiring and training costs. Demographics are a key driver. Over 20% of construction workers are over 55, according to Census data, implying that a substantial portion of the workforce would retire in the near future. Ramdas shared, '41% of the workers are going to retire in the next 6 years… and for every five retiring, you're getting one apprentice with a couple of years of experience.' Furthermore, compared to the workforce in all industries, construction has a relatively smaller share of younger workers. The chart below shows that, as of 2021, only about 10% of construction workers were 16-24 years old, less than the employment share of this age group in all industries. Age Demographic of Construction Industry vs All Industries Another major constraint: immigration crackdowns. Undocumented immigrants make up between about 15 to 23% of the workforce in construction, according to research by The Pew Research Center, Center for American Progress, and the American Immigration Council. And the industry is feeling the effects of immigration restrictions and stricter policy environments. The escalation in ICE arrests is having a chilling effect on labor throughout the migrant community, according to Jim Tobin, President of the National Association of Home Builders. Even when workers do enter the industry, inefficiencies abound. Time is lost to credentialing errors, training gaps, and manual payroll processes. Most tradespeople juggle 20 to 30 credentials — from OSHA certifications to state licenses and union cards. When any lapse, projects stall. Meanwhile, construction productivity has stagnated. Unlike agriculture and manufacturing, which have seen 10-15x productivity growth since the 1950s, construction remains flat. In fact, according to McKinsey, U.S. construction productivity is lower than it was in 1968. Construction Demand Is Surging Despite labor constraints, the demand for construction work is climbing. The U.S. is in an affordable housing crisis. According to a March 2025 report from Brookings, the intensity of housing production has declined substantially over the last half century, from 4% annual growth per year in the 1950s to 0.64% in the 2010s. The report elaborates, 'Twenty years ago [we were seeing] high rates of housing production in Sunbelt markets (Atlanta, Dallas, Miami and Phoenix) and extremely low rates of housing production in America's large coastal markets (e.g., Boston, New York City, Los Angeles and San Francisco).' But after 1998 and especially after 2010, the Sunbelt housing production slowed to match those levels on the coast. In addition to the rising physical costs of materials in construction, Tobin explains, 'It's harder to find construction labor, period. And then, when there's a lack of labor, costs go up, it takes longer to complete a home and that just increases the cost of the finished product.' Simultaneously, the reshoring of manufacturing — bringing production back to U.S. soil — is creating a spike in demand. Companies are constructing U.S. manufacturing facilities at a higher rate than any other property type, and most acutely across the following industries: electrical equipment, appliances, and components; computer and electronic products; chemicals; transportation equipment; and medical equipment and supplies. Such spending rose to an annual rate of $114.7 billion in 2022, according to the U.S. Census Bureau — a 40% increase year over year and a 62% increase over the past five years. Moreover, the Infrastructure Investment and Jobs Act of 2021, the Inflation Reduction Act of 2022, and the CHIPS and Science Act of 22, which authorized $1.2 trillion over five years, including $550 billion in new infrastructure funding, have fueled 60,000 projects across the country, including transportation infrastructure (roads, bridges, public transit, airports, and ports), water and energy infrastructure and broadband internet. Many of those projects are already delayed and without a coordinated workforce strategy, may not be realized. Is Gen Z Trading Laptops for Hard Hats? The question remains, can Gen Z workers step-in to fill all of this bubbling construction demand? Is the digitally native generation willing to trade-in their laptops for hard hats? Historically, 'only 3% of younger workers have been interested in construction,' Ramdas says. But the cultural zeitgeist is shifting, for young folks - both men and women. Enrollment in vocational training programs is surging as overall enrollment in community colleges and four-year institutions has fallen, rising 16% in 2023. National Student Clearinghouse data also shows a 23% surge in students studying construction trades in 2023 compared to the year before, and a 7% increase in HVAC and vehicle maintenance and repair programs. According to the WSJ, Gen Z is the 'toolbelt generation,' citing debt-free education, hands-on work, and job security as top reasons. Skilled construction workers now earn an average of $30/hour nationally, with higher rates in urban markets and for specialized trades. Many reach six-figure earnings without ever stepping foot on a college campus. The rise of AI is also a contributing factor. In a survey of high school and college-age people conducted by software firm Jobber, reported by the WSJ, the majority of respondents said they thought blue-collar jobs offered better job security than white-collar ones, given the growth of AI. Anthropic's CEO Dario Amodei didn't mince words when discussing the dire impact of AI on future job opportunities with Axios: 'AI could wipe out half of all entry-level white-collar jobs — and spike unemployment to 10-20% in the next one to five years.' 'Given how AI is moving, there will be more appreciation for people doing work with their hands,' Ramdas adds. 'Construction will need more labor than other industries, no matter how much automation comes.' Inside Lumber's Platform Ramdas explained how Lumber streamlines back-office and field operations at scale, with its AI-powered workforce management tools. Contractors can create job postings with referral links across multiple platforms (ie, LinkedIn, Monster, Ziprecruiter), screen candidates with integrated assessments, coordinate offer letters and onboard new hires with dynamic workflows and e-signatures. In addition, Lumber recently acquired BuilderFax, a digital credential management platform for construction craft workers, and through this partnership, the company can now track specialized credentials in a digital wallet. In the field, workers can clock-in via facial recognition and geo-fencing, while back-office teams manage multi-rate, multi-state payroll, union rules, and certified reporting. One user on Reddit wrote: 'We barely need an hour weekly to clear payroll now. Used to spend hours chasing down time cards.' Time tracking view inside Lumber app When it comes to Gen Z, and bringing a new generation of workers into the industry, Ramdas believes interactive training is key. The company's multilingual learning management system delivers custom safety and compliance courses, simulations, and AI-guided modules to onboard workers faster. Ramdas further explained, Lumber is developing an AI companion bot that captures 'tribal knowledge' from experienced workers — using wearable tech to document tasks and train new hires with real-world data. The goal: to preserve institutional knowledge and reduce ramp time for apprentices. 'We have electricians with smart glasses and crews wearing hard hat cameras. Our AI is learning how great workers operate,' Ramdas says. 'That lets us turn experience into structured training.' Lumber also wants to bring more mental health support into its platform in future product releases, given the high rates of depression and suicide in the industry. Is Blue-Collar the New Green? As blue-collar work sheds its poor image, and technology makes trades work 'smarter' and more safe, a new image of the American worker may be emerging. 'The stigma has been that you go into the trades if you have no other options,' said Shelly Bell, VP of workforce development at Tallahassee Community College. 'But now we're seeing it as a strategic, proud career path.' Firms are going all out, 'really rolling out the red carpet' to attract and retain talent including PTO benefits, Ramdas says. So for Gen Z, blue-collar work in fields like construction could become the new greenback grind - as long as there is growth potential and job security. And for companies like Lumber, it's also a data-rich, AI-enabled, opportunity to rebuild the backbone of America's economy.
Skift
18-06-2025
- Business
- Skift
U.S. Hotels Brace for Immigration Crackdowns as Worker Shortage Looms
Hotels may face a labor crisis as ICE enforcement tightens. The industry is reviewing how it complies with complex laws and recent changes to work authorizations. Hotels are scrambling to ensure legal compliance as the Trump administration ramps up immigration enforcement, which threatens to worsen a labor shortage in a sector that employs over 2.1 million Americans. Immigration and Customs Enforcement (ICE) has increased workplace raids targeting industries that rely heavily on immigrant workers. ICE hasn't noted raids of hotels this year, and industry representatives and the media haven't reported any major instances. But immigration officials have said they would continue to make arrests at worksites. "There will be no safe spaces for industries that harbor violent criminals or purposely try to undermine ICE's efforts," said Department of Homeland Security's Assistant Secretary Tricia McLaughlin. An ICE directive last week paused enforcement, following a post from President Trump posted on Truth Social that seemed to acknowledge the potential disruption to businesses. Keeping Up With This Year's Changes Major hotel groups declined to discuss immigration issues on the record, reflecting the industry's sensitivity about the topic. But trade groups said they're mobilizing to help members navigate compliance requirements. This month's hot topic has been monitoring employees' work authorizations. Exhibit A: About 532,000 workers
