Celia Campos and her husband, Francisco, grew up in Calistoga and would love to live in their hometown, where their relatives still reside.
But they have realized they will never be able to afford a home in this tourist town of slightly more than 5,000 citizens with no room to grow, sandwiched between the Diamond and Howell mountains. Over the past two years, the typical Calistoga home has sold for about $850,000.
“Who can buy a home here?” Campos noted. “It’s crazy.”
And that’s a massive problem for the city’s economy, a town in Napa County where the vast majority of the 320 businesses are tied to the hospitality industry.
Like many places around the North Coast, it’s a place that relies on busboys, janitors, maids, cooks, servers and others in the service industry to provide a luxury experience for the affluent visitors who drive the local economy.
But business owners realize there are virtually no workers available to hire in Calistoga, where the unemployment rate was an astounding 0.8 percent in October. They are scrambling to do something to change that.
“Hands down, the No. 1 issue is access to a qualified workforce,” said Chris Canning, president of the Calistoga Chamber of Commerce.
Earlier this year, merchants working with the Chamber of Commerce launched a program to ferry workers in a shuttle — a luxury coach with leather seats and wifi — to Calistoga from three different stops in Santa Rosa, charging a nominal fee to the employees.
Research found that about 22 percent of Calistoga workers came from Santa Rosa, 21 percent from Napa and as far south as Vallejo, and around 11 percent from Lake County, Canning said.
The program was scrapped after two months. Only a handful of workers participated, and businesses were reluctant to continue the program without better results.
But Canning is convinced that another employer-sponsored effort will have to be done, especially as two major resorts are scheduled to open in Calistoga within two years, requiring another 500 workers.
“This is a very different job market than we were used to in the past,” he said. “Gone are the days in the hospitality business where you can run on part-time workers with no benefits.”
Welcome to the new normal in the North Bay, an economy largely represented by service workers, given how much tourism drives the area. But the worker shortage is not just limited to the hospitality sector. Overall, unemployment in Sonoma County stood at 3.9 percent in October, compared to 5.3 percent for California and 4.7 percent for the nation during the same period. Napa County was at 3.8 percent and Marin County was at 3.3 percent.
Calistoga arguably has experienced the most severe shortage of workers in the North Bay, but analysts say no city is immune to the pressures, which will only get worse barring an economic setback, such as a recession.
Areas such as construction, health care and manufacturing are also facing a worker crunch, said Heather LoBue, business services program manager for the Sonoma County Economic Development Board. LoBue helps local businesses find qualified workers and sees firsthand where the greatest needs are.
10 largest residential property insurers in Sonoma, Mendocino, Lake, Napa and Solano counties
The results are based on 2016 premiums earned.
Allstate Insurance Group
Farmers Insurance Group
Liberty Insurance Group
State Farm Group
The Hartford Insurance Group
The Travelers Insurance Group
Source: California Department of Insurance