A major force upholding business expansion and job growth has been the durability of household finances, buoyed by the relief spending of the past two years. Savings accumulated during the pandemic, though tilted toward the affluent, remain in the trillions. And according to anonymized data collected by Bank of America, which tracks the spending of its 67 million customers, households with an annual income below $50,000 have about twice the savings they did before the pandemic.
Mary and Chris Ginder, a married couple in St. Charles, Ill., who run a business making artisanal hot sauces, have seen the benefits of the continued willingness to spend.
They were pleased with their growing operation, Spice of Life, in February 2020. Then came a problem: “About 45 percent of our business consisted of going around to local festivals and farmers’ markets, getting face to face with people and selling direct to customers,” Ms. Ginder said. That business model was fully undermined by virus fears and the state’s health restrictions.
To keep the business alive, the couple pivoted to free delivery and aggressively increased their e-commerce presence by refurbishing their website, marketing by email and doing social media campaigns with local partners. When gasoline prices surged, they canceled the free delivery service.
“We tried to see it as an opportunity, you know? It’s not all negative.” Mr. Ginder said, referring to the vagaries of the past two years. “For everything that seems like a hiccup, there’s something positive that can come out of it, if you’re creative enough.”
With weekend markets and festivals running again, the couple has enough cash flow to expand beyond their eight to 10 employees. So far, they have not had trouble hiring. Part-time kitchen workers start at $12 an hour, and pay for full-time workers varies greatly based upon negotiation.
Article source: https://www.nytimes.com/2022/05/06/business/economy/jobs-report-april-2022.html
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