Unemployment Benefits and Labor Shortages

There seems to be this back and forth about is the enhanced unemployment is keeping people from going back to work. I try to be an open minded person so I asked a few people I know that are on employment. This is what I gathered from 5 different conversations and there seems to be a common thought pattern here.

The average per week each of my friends/associates that are receiving is roughly $600 a week. All live in a state that is forgiving taxes on unemployment. The federal government is forgiving taxes on the first 10k of UI money. So this is what I was told.

I was making roughly after taxes the same as I am getting in benefits. Now with benefits, I don't have to wear a mask. Put up with office politics, crappy bosses, commute, spend money on gas. They also said now they are eligible for free cell phone service, medicaid, food stamps and all the while I don't have to expose myself to the virus.

Now these sound like some pretty decent and logical arguments. No workplace bull#. No commute, subsidized living and don;t have to worry about another lock down or major disruption in your life. Now personally I strongly prefer to produce, pay into my 401k, Social security and GTFO out the house. I couldn't sit around and do nothing. Also if you are not working you are not advancing your career.

My conclusions are lower wage workplaces are having a hard time finding people is because who in their right mind would go back to waiting tables or doing a BS job when you can get the absolute security of waiting until the summer is over. Also if you are younger and have money or your parents or girlfriend/boyfriend is willing to pick up the slack why go back to nothing but abuse and actual hard work?

I see the logical arguments from both sides. Come the end of the summer the enhanced benefits need to end. At my calculations someone would need to make $20 an hour or more to just break even from all the free government assistance that's being offered. At some point people get trapped. Personally I believe if you are not moving forward, you are moving backwards. I am on the side of the benefits ending and people having to find their own way instead of being taken care of by the nanny state.

I would like to hear what everyone else thinks about this. Esp as states are opting out of the federally enhanced benefits.

a reply to: AssiduousSpook

I believe you can’t force people to do anything. People that rely on government assistance prior to the pandemic will keep milking that cow for as long as they can. People that were prompted to government assistance due to the pandemic would be looking for work or probably never stopped looking for work.

As someone who has plenty of experience in HR I honestly think the majority of people want to work. The sheer amount of resume’s one get for any given position is overwhelming which leads me to believe the labor maket in some areas have not recuperated to pre-pandemic levels.

I think the problem right now is jobs available vs skills available. I can guarantee you that the gap on those two is pretty huge.

a reply to: AssiduousSpook

If you talk to anyone who is self-employed, you'll find they are able to still earn self-employment income, and receive full Federal/State unemployment. All they have to do to qualify is earn less than they did prior to March 30, 2020.

This provision was inserted into the 3.30.2020 Covid-19 Cares Act by Bernie Sanders, and remains active till August 31, 2021...unless it is extended again by Congress.

Staying on unemployment has a host of different problems. Number one once the deadlines kick in everyone by necessity will be all viewing for the same jobs pool. Secondly people get used to having the extra cash, am betting people didn't bank any of it so a return to "normal" means belt tightening that's going to be difficult.

I don't ascribe to the idea that it's the lower wage/unskilled businesses having all the problems getting workers.
My place of employment can't fill chemist jobs or get skilled trade's people.

While we all worked straight thru the pandemic it was joked around that we were slightly nuts to not stay home & get unemployment. What we've been seeing is people quit for better more well paid jobs and now we can't find anyone to hire to fill those positions. It's turning into a job seekers market.

Besides cash hiring bonus's on the table companies are returning to fully paid medical coverage with no employee contributions to attract workers.

a reply to: AssiduousSpook

people having to find their own way

Which for your friends sounds like working # jobs for low pay. Working their time away to make someone else rich while they never get anywhere. Till finally they can retire to old to enjoy the # retirement money.
How is that better than what they are doing now?

Better question. In which scenario are your friends, the people you love, happier?

Isn't the point of working to create happiness?
Or is it just to provide food and shelter?

If the latter than it is inescapable? Yet it makes us all miserable.
And knowing how this effects us all why aren't we doing much more to change it?

No one would be calling for more social programs if our current system didn't lead so many of us to despair.

I think another facet to the problem is that even though Covid numbers are improving, we're never going to have complete eradication. All it would take is something major to go the way the establishment doesn't want and BAM we're back to square one or at the very least some measures would be "reactivated".

Personally, I don't think the 'plandemic' plans are finished yet. Not by a long shot.

Is it worth restarting your career or business if all it takes is some mutation or fear ridden situation to have you once again unemployed or your business closed? Who wants to do that?🤷🏾‍♂️

Just being the devil's advocate but I'm sure some folks are waiting for a better "all clear" signal before venturing out to be possibly snip canned again or their business ruined once more.

We don't even know what these jabs are going to do to people, even though we're getting a pretty good idea here lately so that's not encouraging either.

Those that are complaining about the unemployment recipients want so badly to see things return to normal that their jumping the gun and shaming people for being cautious.

Who is anyone to tell anyone how to navigate this mess??

Who has it all figured out??

No one.

*Just trying to see it a different way instead of it always being about freeloading.

I started a home based business selling microgreens to local health food customers. It's enough for me and it's actually picking up.

That was my pivot, my reinventing.

I would say if you're doing absolutely nothing, you're an idiot for sure.

⭐+🇺🇸

a reply to: AssiduousSpook

From my personal experience over the past four months...

I was put in charge of hiring for our Call Center, 3D Printing Dept., 3D Filament Production Dept., Video Dept., IT Dept., Installation Techs, Commissary Warehouse, Maintenance, and Tech Support. I've easily reviewed at least 1,000 resumes on Indeed, three hiring agencies, and applications that come through our customer window. I've reached out to about 500 people, and I'd say around 70 have replied back. Of those ~70, around 30 have come in for an interview. All but 2 of those were given a job and only around 10 are still working. The issue I'm facing is these people can make the equivalent of, I believe, $15 an hour sitting at home AS LONG AS they're "actively" seeking employment. I've hired several through word of mouth and every single one of them are still working. It's frustrating as f# to say the least.

a reply to: Bunch

people must be working because my job is super busy now.
I do logistics work for deliver companies.

People are buying tons of appliances for their new houses lately.

I mean I hope people aren't dumb enough to buy a house with unemployment checks!

originally posted by: scraedtosleep
a reply to: Bunch

people must be working because my job is super busy now.
I do logistics work for deliver companies.

People are buying tons of appliances for their new houses lately.

I mean I hope people aren't dumb enough to buy a house with unemployment checks!

People are getting thousands in corona checks. That's probably why you're busy. My wife and I have been putting ours into savings.

a reply to: AssiduousSpook

I think that if our government can just get rid of hundreds and thousands of good paying jobs in the energy industry with an EO and tell those workers that they can just get another job doing something else...

Then it is well within the powers of the same government to get rid of welfare and unemployment benefits and tell those people to just get another job doing something else.

originally posted by: Lumenari
a reply to: AssiduousSpook

I think that if our government can just get rid of hundreds and thousands of good paying jobs in the energy industry with an EO and tell those workers that they can just get another job doing something else...

Then it is well within the powers of the same government to get rid of welfare and unemployment benefits and tell those people to just get another job doing something else.

Do you mean all of those jobs on a pipeline that never started construction, that was to be manned by a bunch of union workers who still have jobs and make more than the average American while they're not working, and waiting for their next assignment?

All of the job postings I am seeing right now are like, "minimum wage! (Less than that for restaurant workers). Must be available all weekends and holidays. No health insurance. No paid time off. Join our team!"

I have a great job. If I didn't, I wouldn't be applying for any of these jobs.

a reply to: LordAhriman
And that’s the thing. When Amazon, Costco, Walmart are paying over minimum wage in many states that places many other businesses in a hard place. Which is really not a hard place at all... pay your people, give them benefits, don’t be an ahole employer and your might get employees to apply and even keep them!!

originally posted by: LordAhriman
All of the job postings I am seeing right now are like, "minimum wage! (Less than that for restaurant workers). Must be available all weekends and holidays. No health insurance. No paid time off. Join our team!"

I have a great job. If I didn't, I wouldn't be applying for any of these jobs.

I looked at some Job Postings last year. They are a joke. It's like 30 lines of what the employer demands, and only 3 lines of what you'll get in return....and it's usually peanuts....or deceptive wording. (i.e. "Health Benefits" = A Planet Fitness gym membership)

a reply to: AssiduousSpook

Joe Biden says the slowing Job Market is not his fault!

But the Trillions he's pumping into the economy will create JOBS JOBS JOBS and Free classes to learn how to CODE.

Source: nypost.com...

A lot of government folks and civilians are “teleworking” from home. Must be nice. Is that considered almost the same thing in a way? We all know a lot of “office” work can be done in one hour or three. Golf off the rest of the day.

I’ll be the azzhat on this one.

Government pandemic handouts made it too easy to stay home.

Americans don’t plan any further down the road than their next paychecks.

We buy and consume crap we don’t need and make no plans to save money.

I’ll work two low pay jobs before I will ever take a government handout.

You are responsible for you.

As for jobs and their purpose, you are bartering your skills for pay. Happiness is not a requirement.

We are headed for more government kickbacks on unemployment benefits clearing the way for free money for just breathing. Minimum wage hikes for low skill jobs will make it even more difficult on employers to compete in a WORLD market that is based on low cost because WE want low cost.

We are our own worst enemy.

a reply to: 38181

I've been actually debating this with my wife. Realistically, I produce more labor in 3 hours than most do in 8. So if I work 9 hours a day, I can basically do 3 full time jobs at a mediocre level. Get paid 3X, and do just as much as anyone else doing the job. Hell if I did 10-12 I would be good at all 3. I want to triple my income but the wife says no...... The debate continues....

Camain

Many of the job postings in this area are lower pay and dealing with the public. In this area, dealing with screaming people in a pandemic who want to fight you because you told them to put on a mask does not seem like a good time.

Although ATS is probably not the right place to ask this question. Have you heard of Dan Price and Gravity Payments? On this board he'll probably be considered a "Commie", but 6 years ago he decided to pay a minimum wage to all his employees of 70,000. He cut his salary at the time from 1 million to 70 grand as well. He does not require college degrees for positions, he promotes usually from within. Most people said he would fail, but business tripled. He's hired and expanded even more. Last year when business dropped 55% during the pandemic he asked his employees if they wanted a lay off, or were they willing to take a pay cut. They chose a pay cut. Their salaries have since been restored and they were paid back what they cut. He also did not increase what he charged his customers during this time.

I'm not saying every job can pay 70 grand, but it seems as if you could pay a living wage you have happy employees that want to work. They do not want to sit at home.

Gravity Payments

originally posted by: AssiduousSpook

My conclusions are lower wage workplaces are having a hard time finding people is because who in their right mind would go back to waiting tables or doing a BS job when you can get the absolute security of waiting until the summer is over. Also if you are younger and have money or your parents or girlfriend/boyfriend is willing to pick up the slack why go back to nothing but abuse and actual hard work?

Restaurants are having a hard time finding workers right now for this very reason. The pay is low and unemployment has removed any incentive to work for what is essentially the same income. I've seen a few articles with restaurants offering bonuses and other incentives.

I live in a liberal utopia and one of the restaurants stepped in it politically. The owner posted on Facebook a political cartoon showing two lines. One line for unemployment and a line for saying "Hiring". The unemployment line was full and the hiring line was empty. Obviously, the cartoon is pointing out people rather have unemployment than work. Of course, all the liberal Karens in our town went batsh*t crazy that the owner is ignoring people's "plight" and should pay a living wage, etc. Talks of boycotts, etc.

However, what is interesting is that it is showing that supply and demand works. The unemployment comp is removing workers from the supply side while demand is still high. This is causing wages to increase. Of course, none of the liberals can see this and then when you bring up how illegal immigration is also suppressing wages it makes their brains scramble.