Months ago there were cries from business leaders across the nation to end the $300 a week federal supplement for Unemployed Americans.
There were millions of jobs that needed to be filled and it seemed logical that once the supplement aid stopped the jobs would quickly fill.
It’s been three months since many states ended the federal payment, but there has been no significant influx in job seekers.
The workforce has almost remained the same in states that ended and states that maintained the supplemental payment.
The labor shortages have persisted far longer than economists had predicted.
So what is the mystery at the heart of the job market?
Companies are eager and nearing record high available job postings, yet unemployment remains elevated.
An analysis by The Associated Press of State-by State data found:
Workforces in the 25 states that maintained the $300 payment grew slightly more from May through September versus the 25 states that cut off payment early.
Therefore, the stimulus payments that were thought to have an impact on unemployment numbers may not be the actual root of the problem.
The unemployed are certainly not being drawn away from the sidelines.
What is stopping them?
Here are some reasons reported to be influencing the high unemployment numbers:
- Fear of contracting COVID
- Lack of child care
- Early Retirement – Americans’ home values and stock portfolios have surged and played a large role in early retirement decisions.
- Increased financial cushions generated from government stimulus is allowing people to enjoy extended time off.
Americans are also reporting a desire to hold on to the increased family time they enjoyed at the onset of the pandemic. Many are simply learning to get by with less income.
The pandemic has changed the job market dramatically and employers are constantly having to evaluate how to create a work environment that can offer workers the security they need.
Companies must stay creative and competitive to avoid falling victim to the current understaffing crisis.
Written By: Morgan Henry