Employment-drop hits car wash industry hard
Unemployment figures in many European countries are currently rising, but in reality the staffing situation is often tighter than the figures suggest. This has several consequences for the car wash industry, says our German colleague from Carwashpro.de
The current recession in many countries is having a noticeable impact on the labor market. One of the direct consequences of such an economic contraction is the rise in unemployment figures. This phenomenon can be explained by a few factors.
Companies are often confronted with falling sales during a recession. This reduces their profits and forces them to cut costs in order to ensure their financial survival. Unfortunately, this often means that workers have to be laid off. This reduction in staff directly contributes to an increase in the unemployment rate.
In addition, companies cut back on investments in uncertain economic times. New projects are put on hold or canceled altogether, which in turn reduces the demand for labor.
At the same time, consumer confidence falls, leading to a decline in consumer demand. As a result, manufacturing companies reduce their production, which puts further jobs at risk.
This downturn and the worsening of the situation is not immediately apparent in the labor market figures. One cause is the “baby boomers” who are now retiring. This generation worked hard in the past and occupied positions with a lot of professional experience. When they retire, their positions are either vacant or are being cut to save money. Knowledge in companies and performance potential could suffer in the future.
Another aspect is the psychological component. The fear of job loss and economic uncertainty leads to people spending less money. This decline in consumer spending further exacerbates the economic situation, as lower sales can be observed in a large number of sectors.
A vicious circle is formed: higher unemployment results in lower consumption, which in turn leads to less hiring and therefore even higher unemployment. Governments and economic policy makers are therefore called upon to take measures to break this cycle and stimulate the economy again.
Car wash industry affected twice
The car wash industry is being hit by the consequences of the recession in two ways. On the one hand, many companies in this sector are short of staff and it is difficult to replace employees who leave. Especially as the image of working in a car wash may have negative connotations.
Compared to other jobs, working in a car wash is physically demanding, you are exposed to the weather and a lot of humidity and the working hours are concentrated at weekends. However, jobseekers currently have a fairly free choice of jobs and may prefer supposedly “easier” jobs.
On the other hand, car wash operators are noticing the reluctance of car wash customers. Even when the “wash weather” is generally good, car washes are much less frequented than they were a few years ago.
Car washing has long since ceased to be a standard service and is increasingly becoming a luxury. Operating a car wash with staff without car wash customers generating turnover is currently a high economic risk.