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When he is not making bed, he is busy managing the company. He is the President and CEO of IHRMC – based in Orlando, Florida.
“I was making beds two days ago. It is very difficult to find workers,” said Gautham.
There are 11.2 million open jobs in the United States, according to the Bureau of Labor Statistics — up from 10.8 million last year. And there were 1.5 million open hospitality jobs in July. According to IHRMC, 60% of its 4,500 employees left the company during the outbreak, with many working from home. Now Gautham and other managers are picking on the weak – in housekeeping, the kitchen and the front desk.
That’s why some Florida business owners were confused when Florida Gov. Ron DeSantis sent two flights of asylum seekers from San Antonio, Texas, to Martha’s Vineyard earlier this month.
Gautam said, “Why send people there when we need them. We can use them.”
Asylum seekers can legally work in the United States while maintaining their asylum case. During that waiting period, asylum seekers can apply for a work permit – a process that takes 180 days before being granted.
DeSantis said he believed the asylum seekers were “trying to come to Florida” from Texas. The planes stopped in DeSantis County to take advantage of a $12 million Florida-taxpayer assistance program to evacuate immigrants from the state. Whether the asylum seekers intend to go to Florida or not, business owners there are saying they will welcome them.
“We have a huge labor shortage in Florida in all industries,” said Jessica Cooper, owner of Sugar Top Farms, located outside of Orlando.
More than 670,000 asylum seekers in the US are waiting for their cases to be heard, according to a Syracuse University study. The wait can take an average of four and a half years. Meanwhile, US asylum seekers can apply for a work permit – a process that can take an average of six months.
DeSantis said he plans to use all of the $12 million in state funds to get immigrants out of Florida.
Lack of domestic workers
Cooper runs a small farm with her husband, Jordan. They produce edible and edible flowers and sell them to local restaurants around Orlando and to Disney World. They only need a handful of farm workers to harvest and plant crops, but even those roles are difficult to fill.
“We’re finding that maintaining domestic labor is difficult. It’s hard work. It’s not for everyone,” Connor said.
The agricultural industry has long depended on foreign labor and visa programs because domestic workers are less reliable and less willing to do physical work. Agriculture is Florida’s second largest industry after tourism.
Both industries pay relatively low wages, making it difficult to attract workers in a competitive job market. The hospitality and entertainment industry pays an average of $20 an hour, while agricultural workers earn an average of $18 an hour. But for the construction industry, the $35 an hour average is not the case. It is an aging workforce. The average age of a construction worker is 55 and retires at 61.
The median age of an asylum seeker is 35 and tends to be younger than the median age in the United States, according to the Department of Homeland Security. It’s a nation that helps support America’s aging workforce.
“We have an aging workforce that is not filled with young individuals,” said Michelle Daugherty, president of the Central Florida chapter of the Associated Builders and Contractors.
The group said they would be open to hiring asylum seekers to help with the shortage.
“We can leave no stone unturned,” Daugherty said. “If they can work here legally, we have jobs for them, we have the opportunity to take care of not only themselves, but their families.”
Immigration to fight inflation
Last week, the Federal Reserve raised interest rates by another three-quarters of a percentage point, a sign that the central bank is trying to control annual inflation of 8.3% as food and rent prices still rise. But the increase is causing pain in Americans’ mortgage, student loan and credit card debt by raising rates.
Billionaire hedge fund manager and activist investor Bill Ackman argues that increasing immigration to the United States may be a better tool. In a series of tweets targeting the central bank last week, Ackman asked, “Doesn’t it make more sense to moderate wage inflation with increased immigration than to raise prices, kill demand, put people out of work, and trigger a recession?”
A study by Texas A&M University supports this claim, noting that more immigrant and H2A visas for foreign workers are associated with lower inflation. And a new report from the National Foundation for American Policy says increased immigration won’t take jobs away from Americans.
“A study of labor markets that employed large numbers of temporary foreign workers prior to the pandemic found that the decline in H-2B program intakes has not improved labor market opportunities for US workers, but if anything, has worsened them,” the report said.
Gautam says the current immigration policy is hurting the business rather than helping it. Florida granted permanent political asylum to 7,101 asylum seekers between 2018-2020, behind California and New Jersey. For example, in 2020 this is 9.3% of asylum seekers in the state.
Gautam believes it would be a “game changer” for the business and the employee’s longevity if more asylum seekers were granted permanent permits.
“These people are here. They can start working and they can support their families properly. And of course help us,” he said.
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