San Marcos - Buda - Kyle Edition | May 2023

STAGNANT WAGES

UPTICK IN PRICES

RENT RISING The cost of commercial rent in Hays County has increased by about 30% in the past decade.

Two of the three largest industries in Hays County, accommodation and food service as well as retail, have the lowest average annual wages of all industries.

The consumer price Index, or CPI, measures inflation through changes of prices paid by consumers for goods and services, such as food and beverages, housing, and more. From February 2022-23, the CPI in Texas increased by 6.18% and nationwide by 6.02%. The increase can be seen nationally through a rise in the following items from March 2022-March 2023:

Retail

Restaurant

Retail trade makes up 14% of jobs in Hays County with an average annual wage of $34,782. Accommodation and food service make up nearly 12% of jobs in Hays County with an average annual wage of $24,038.

12%

$30

Cereal and bakery products: +13.6%

$25

14%

Meat, poultry, fish and eggs: +4.3%

$20

Both industries are well below the annual average salary of Hays County residents, $50,266. As of April 23, there were 6,692 job openings across the county with the most vacancies in retail, nursing and food service industries.

Dairy and related products: +10.7%

$0

Nonalcoholic beverages and beverage materials: +11.3%

2019 2020 2021

2022 2023

Year

EMPOWERING THE WORKFORCE After halving the cost and doubling the enrollment of some fast-track career programs—such as computer science—in early 2020 at Austin Community College, the number of students served increased. Total students served per year:

“We’re seeing lunch business is down 75%; weeknights are down 30%; and people are spending less when they come in; all the while, I’m paying my staff and management more than I could have ever imag- ined,” Scott said. Due to the rising costs, Chavez and Strahan had to remove items from their menus because they realistically cannot sell them at the price point needed to recoup money. “It is a huge balancing act. Every week is different—every day, really. What day you’re ordering could deter- mine your cash flow,” Strahan said. “Is it sunny outside? Is it raining? Is there a football game?” Chavez and Strahan also said there are additional costs to running a busi- ness that are not as visible. From 2013-23, rent for restaurant spaces in Hays County increased by 37.76%, according to data from CoStar Group. Rents for retail space within the same time frame increased by 47.23%. “Customers only see the finished product, and that’s what they base

able to fill job vacancies in whichever industry they received certification. Certain “fast-track” programs, such as the computer information and sci- ence programs, saw a 200% increase in enrollment from 2020-22. Work- force Solutions Rural Capital Area brings together community leaders to provide workforce programs and ser- vices to help people find employment with funding from the Texas Work- force Commission, the U.S. Depart- ment of Labor, and the Texas Health and Human Services Commission, CEO Paul Fletcher said. Workforce Solutions helps people find employment in an array of indus- tries, but the focus is on those that provide career paths, he said. “I’m not knocking the service industry or the hospitality indus- try,” Fletcher said. “We have to see those industries in comparison to others that have more of that career path, can offer higher pay or career advancement opportunities.” By working in the service industry, he said workers learn how to develop customer service skills, show up on

their value on,” Chavez said. “It’s more than that. You’re paying for somebody to make this for you. You’re paying for the lights to be on, the [air condition- ing] to be on, the beer to be cold.” Increasing the workforce With low wages and increased costs within the service and retail industries, Austin Community Col- lege and Workforce Solutions Rural Capital Area are creating pathways and breaking down barriers to help people find jobs with higher wages and more opportunities for growth. ACC’s Continuing Education division slashed the cost in half of around 25 programs after the onset of the pandemic and doubled enroll- ment capacity. The programs range from five-six months for certification in industries such as computer science and informa- tion technology, automotive mechan- ics, welding, education, and more. ACC Dean of Continuing Education Hector Aguilar said the school’s pro- grams have a high completion rate. Upon completion, individuals are then

2020

1,417

2021

3,024

2022

2,926

time and follow directions. “People can learn ... and then take those skills and translate those into careers, potentially in other indus- tries,” Fletcher said.

For more information, visit communityimpact.com .

ACCOMPLISH MORE this summer at ACC

CLASSES START MAY 30 austincc.edu/summer

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SAN MARCOS - BUDA - KYLE EDITION • MAY 2023

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