Will more workers apply for jobs when the extended unemployment benefit ends?
COLUMBUS, Ohio – We’re breaking news by telling you restaurant owners have had problems over the past year and a half.
Health ordinances closed them first, and when they reopened it became difficult to find staff.
“A lot of these older waiters didn’t come back,” Nick Taylor, general manager of the Oscars restaurant in Dublin, Ohio, said in a recent interview.
Similar beliefs are shared by Bob Szuter, who owns Wolf’s Ridge Brewery in downtown Columbus, Ohio.
“At the moment we cannot open on two of the normal days,” said Szuter.
You may not live here. But there’s a good chance that restaurant owners and small businesses near you will think the same way.
In June there were 9.2 million job offers nationwide. A new record.
Many restaurant and brewery owners have to resort to something many have never done before: sign-up bonuses.
“$ 250 for a cook and we paid that,” said Szuter.
WHAT IS THE REASON?
For months, many conservative leaders have been complaining that Congress is giving workers too much money.
$ 3,200 of stimulus checks have been handed out since the pandemic began.
Additionally, through early September, $ 300 per week will be paid out for states that choose to do so.
Not to mention, employees with dependent children receive monthly child tax deductions for the remainder of the year.
Across the country, many Republican governors have concluded that those $ 300-a-week bonus unemployment benefits are responsible for the low number of job applicants.
So far, 26 states have either ended bonus money before the federal end date or tried to end it before a lawsuit was filed.
EFFECTS OF TERMINATION OF BENEFITS
Will the cut in increased social benefits actually bring people back to work?
Well the answer depends on who is asking.
Both Taylor and Szuter work in a state where these bonuses expired almost a month ago.
“Before, I’d say I post an ad and get 1-2 replies, now I get 4 a day so I think people are back to work,” said Taylor.
However, Szuter disagrees.
“We never got involved with it and didn’t expect a flood of CVs, and we haven’t seen that yet,” said Szuter.
“At the moment we could definitely employ five people in the kitchen,” said Szuter.
He says many of his most trusted employees have simply moved on, using the extra money and free time to develop new skills.
“A cook who worked for us works in a car repair shop and makes a lot more money,” said Szuter.
Economists at Oxford Economics and Goldman Sachs have noted only a “marginal effect” of early termination of this unemployment benefit, although many states have long since had their benefits suspended.
However, the lack of data suggests that the labor market may be a little more complex than it was before.
“It’s changing the demographics of the workplace,” said Roger Geiger of the National Federation of Independent Business.
Representing small businesses across Ohio, Geiger says companies that created more opportunities to work from home have likely harmed companies that have to report their employees in person.
“You have to have people in this restaurant, in the car wash,” said Geiger.
“Part of it is that people have problems with childcare. People have their own personal concerns about where they are in the pandemic, ”Geiger added.
As the economy tries to recover, many people, including President Joe Biden, have warned that workers are not getting paid enough.
However, Taylor and Szuter say there are limits to how much they can afford to pay employees.
“I don’t want to be the restaurant that charges $ 40 for a steak,” said Taylor.
“Trying to build an economy out of a coma is difficult,” added Szuter.