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Nevilledog

(51,197 posts)
Tue May 4, 2021, 01:40 PM May 2021

Unemployment benefits are not creating a worker shortage.





https://www.huffpost.com/entry/worker-shortage-unemployment-benefits_n_609056c3e4b09cce6c21a850

As the U.S. economy bounces back from the COVID-induced downturn, some employers say they’re having a hard time finding workers. GOP lawmakers like Rep. David Rouzer (N.C.) blame the safety net.

“This is what happens when you extend unemployment benefits too long and add a $1400 stimulus payment,” Rouzer said on Twitter last week, posting a photo from a Hardee’s that said it was closed for lack of staff. “Right when employers need workers to fully open back up, few can be found.”

It’s a dubious argument. Republicans said this same thing last year when Congress passed a big relief bill that added $600 per week to state unemployment benefits for four months.

Democrats “are going to make the next four months impossible for small businesses to hire,” Sen. Lindsey Graham (R-S.C.) said.

“This bill creates an incentive for people to be unemployed for the next four months,” Sen. Rick Scott (R-Fla.) said.

*snip*



11 replies = new reply since forum marked as read
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Iggo

(47,565 posts)
2. If the wages you'll pay potential workers are lower than unemployment payments...
Tue May 4, 2021, 01:47 PM
May 2021

...that’s not a worker shortage.

SWBTATTReg

(22,166 posts)
3. If they really want to help small businesses hire, then why don't these repugs roll up their sleeves
Tue May 4, 2021, 02:02 PM
May 2021

and go to work? Or better yet, install a livable wage finally? Can you imagine the likes of Moscow Mitch or Gaetz flipping hamburgers and such? I doubt it since Gaetz's daddy is a millionaire and moscow mitch has an estimated estate of $30 mil or so.

Quit listening to billionaires and millionaires too, since these people have already such a large chunk of the American economy, and it's about damn time that the American worker get their fair slice of the pie too. It's been since the early 1980s since the American worker really had any substantial measurable, increase in pay.

Look at some of the evidence...the numbers of people living on razor thin margins is certainly more than it was during the 30s w/ the Great Depression. Housing in some areas is getting ridiculously high (especially in coastal areas, large metro areas), and consequently property taxes are too. Utilities have done nothing but continue to skyrocket, and health insurance premiums continue to spiral upwards out of control.

These republican idiots moaning about a one time payment need to flat out shut up. Four months is nothing before the benefits run out and I guarantee you that these benefits probably wasn't enough for a lot of people and they still could have used more. For god's sake, this nation has been rocked by a major epidemic. And you are bitching about the pay for the small time workers?

When you actually look at the evidence of who is really hurting, it's certainly not those in the stock markets or own stocks like the Waltons or other wealthy 1%ers. If anything, their wealth is even more. The markets continue to jump upwards (probably because they are all buying their own shares back or such). Biden is also infusing the markets w/ energy too, after the dismal performance of djt.

patphil

(6,206 posts)
4. Maybe we need the minimum wage to be raised to $15. per hour.
Tue May 4, 2021, 02:06 PM
May 2021

Right now, many states are still at $7.25. That's $290. for a 40 hour week.
Who can live on that?
At that level, $1,400 looks pretty good.
If you want to get people back to work, PAY THEM MORE!

I think $15. is a fair number. It would draw a lot of people back into the labor force.
And remember, the people working for minimum wage plow all their income back into the economy. That boosts the overall economic picture and raises business profits, allowing them to pay the higher wage.
It creates a synergistic effect that spirals the economy, and the quality of life of the workers, upward.
It's a win-win, unless you're a Republican. They only see a win when the rich get richer and pour lots of money into the campaigns of republican candidates.
Funny thing, however, I see an improved economy also helping the rich.

Why can't Republicans see that?

doc03

(35,363 posts)
5. Then why are businesses everywhere begging for
Tue May 4, 2021, 02:12 PM
May 2021

workers? They are offering sign up bonuses and pay several dollars over the minimum wage. I mean the unemployment rate is 6% and there are help wanted signs everywhere. The fast food places arent opening their dinning area not because of COVID but because they can't
get help.

bcool

(219 posts)
8. Simple: If you get paid more not to work, you probably won't work
Tue May 4, 2021, 02:42 PM
May 2021

Here in MO, the regular unemployment + the extra unemployment comes to around $600/week, or $15/hour for a 40 hour week.

Since most of these jobs are part time, this would be more than people would make if they worked - even if they DID make $15/hour, which most wouldn't.

It's just human nature to decide not to work when the alternative is less financially rewarding.

These shortages won't go away until the extended unemployment payments stop. And when they do, all these lower-tier workers will take a pay cut to go back to their poorly-paid jobs...capitalism at its finest!

doc03

(35,363 posts)
9. You are right why work when you can get
Tue May 4, 2021, 02:55 PM
May 2021

more to not work.
I am guilty of that myself. I worked in a steel mill. Back around 1980 I took voluntary layoff for a full year. I received unemployment, supplementary unemployment from my employer and a (TRA) Trade Reajustment Allowance that added up to a couple hundred extra a pay
That is one of the reasons Jimmy Carter wasn't reelected..

SoonerPride

(12,286 posts)
11. The article says that view is false.
Tue May 4, 2021, 03:11 PM
May 2021

The enhanced unemployment benefits are not the reason people aren't working these low paying jobs.

They are taking higher paying jobs.

And the networks used to recruit new hires (friends / family) collapsed due to the pandemic, so the pipeline of fresh workers evaporated.

But it is not due to the enhanced unemployment money.

Ace Rothstein

(3,183 posts)
6. It is a little of both.
Tue May 4, 2021, 02:34 PM
May 2021

I've worked in staffing for almost 20 years and have never seen anything like this. Clients are increasing pay rates by 50% in some cases and still having trouble filling roles. Between enhanced unemployment and stimulus packages, people are absolutely sitting out of the economy.

JCMach1

(27,572 posts)
7. It's risk vs. reward
Tue May 4, 2021, 02:39 PM
May 2021

Employers are not paying enough to overcome that risk in people's minds.

Companies have been low balling salaries coming out of the pandemic, so they only have themselves to blame.

Midnight Writer

(21,795 posts)
10. Wake me up when Republicans complain we are being too generous to corporations.
Tue May 4, 2021, 03:01 PM
May 2021

Kiss up and kick down.

Every time.

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