Good news for Iowa teens looking for work this summer: There are jobs to be had, and the pay likely will be above minimum wage.

Historically low unemployment rates combined with a healthy economy fueling business expansions have sent metro companies scrambling for workers, especially in the service industry.

Help wanted signs perched in store windows signal the challenge retailers and food service businesses are facing — business is booming but there aren't enough workers to run cash registers, sweep floors, stock shelves, work in the kitchen or answer phones.

“The labor market’s tight,” said Ankeny businessman and former NFL linebacker Dennis Gibson.

Gibson had considered delaying opening his new restaurant, Uptown Food & Beverage in Ankeny, because he was having trouble finding qualified servers, cooks, bartenders and cashiers.

“That’s been the hardest part of this whole deal,” said Gibson, who closed his Encore Pizza business in Johnston and found the old Bear’s restaurant space in his hometown to launch his new venture.

Gibson has hired most of the crew from Encore to work at Uptown, but it will be about twice the size of his old business and he needs more employees.

He held open interviews seven days a week at the new store in hopes of filling out his roster. He eventually found workers and opened recently.

The tight labor market, due in large part to Iowa's 3.1 percent unemployment rate in March, makes it more difficult to attract and retain workers, said David Swenson, an economist at Iowa State University.

Moreover, the state's overall labor pool is not growing and, in fact, has shown signs of contracting, he said.

But the number of jobs has grown by about 8,100 from March 2016 to March 2017, according to state statistics.

Employers may have to lure workers — including teens and those who have dropped out of the labor market — with higher pay.

“The pay level will have to be high enough for those folks to come back into the labor market,” Swenson said. “It has to be substantive, like $9.50 or $10.50 an hour.”

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Traditionally, most service jobs have paid around minimum wage, which in Iowa currently is $7.25 an hour. But employers hungry for staff have been increasing pay, which increases overall operating costs. A local McDonald's restaurant was advertising jobs that paid $11.50 an hour.

That should be offset by an increase in business because of good customer service, Swenson said.

"Higher pay can translate into greater productivity and greater loyalty" from workers, he said.

Boone-based Fareway Stores Inc., which operates 117 stores in five states, offers competitive wages for most of its jobs, but has still been challenged in filling out its ranks.

Starting wages at the store range from $10 to $12 an hour.

"We're having to take extra steps to find qualified workers," said Stephanie Rohrer, Fareway's corporate recruiter.

The company has solicited workers through social media, calls for applicants on Facebook and, for the first time, held job fairs looking for candidates for their meat departments in the Des Moines metro.

The company, which created Rohrer’s position about a year ago, also is realizing that potential workers want more than wages.

“We have seen a shift in what millennials are looking for,” Rohrer said. “They want flexible scheduling and time off.”

The owner of a year-old barbecue restaurant in Des Moines supplements his workers’ pay with a free meal during their shifts and lots of positive feedback. Al Laudencia, owner of Big Al’s BBQ, said money is always a top priority for employees, but so is recognition.

"I let them know before they are hired what the expectations are, and then if they are doing a good job, I tell them so,” he said.

That can help with retention in the extremely competitive restaurant industry, where any new eatery can lure workers.

To ensure he will have a full staff for his second Des Moines location he will open in June, Laudencia said he started recruiting staff three months ago. He was looking for about 14 waiters, cooks, cashiers and other help for the new restaurant.

Servers get $4.25 an hour plus tips and other seasoned workers can make $15 an hour.

With the supply of workers at a premium, companies continually looking to fill jobs might find alternate ways to serve customers, said Peter Orazem, an Iowa State University labor economist.

“These businesses have to figure out how to deal with this,” he said.

Fast food restaurants are a good example, he said. Some KFC restaurants are offering buffets to ease counter service, and many chains have moved to self-serve soft drink machines, he said.

Extra benefits also help retain workers, Orazem said.

“In college towns, some companies will offer tuition assistance if you stay with the firm,” he said. It’s all about “more creative ways to reduce turnover,” he said.

The need for workers goes beyond the service industry, Orazem said. "You see upward pressure on wages throughout the labor market."

Places such as Principal Financial don't put out "help wanted" signs, he said.

Kris Walter, the manager of Merle Hay Mall in Des Moines, said mall tenants have struggled to find and keep workers. And when a new store comes into the mall, they tend to draw workers from other shops there.

Workers always want to be at the newest place, she said.

But the skimpy labor pool shortage isn’t only hitting mall retailers. Walter said she has had a hard time filling housekeeping, maintenance and other jobs at the center.

“We’ve just had fewer qualified applicants overall,” she said. “We have had to increase our hourly rate to be competitive.”

And while it’s a sign of a healthy and growing economy, the challenge of finding workers will not ease soon.

Economist Swenson said he expects the labor market to be tight for the next eight years as job growth continues to grow slowly.

“But this is a good problem to have,” he said.