A Persistent Labor Challenge
Most business owners and managers in this region had circled Sept. 3 on their calendars long ago.
That’s the day when roughly 3 million Americans were going to see their extended unemployment benefits — those $300 weekly bonus checks — expire, with little, if any, hope that the payments would be extended.
Thus, early September was supposed to be the time when a distressingly challenging labor market was supposed to begin improving and the pendulum was supposed to start swinging back toward employer. How much of a swing, no one knew, but there was to be a swing.
Well, it’s now mid-September, and those in the business community are waiting anxiously to see just what will happen now that the benefits have stopped and, supposedly, people will be heading back to the workforce.
It’s still early, and anything can happen, but many signs now point toward a softer, less pronounced improvement in the job market than people anticipated, and for a number of reasons. In simple terms, it seems clear that the problem runs much deeper than the extra unemployment benefits, although that has certainly been a factor.
Indeed, any time people can make more money sitting at home than they can working hard for eight hours a day, it’s only logical that many would choose the former path, and that’s why these benefits should have stopped long before Sept. 3.
But the benefits are only one of many reasons why people are not seeking employment — or seeking it and not finding it. Daycare is a huge issue for many. That industry has been hard hit by the workforce crisis, and services are just not as readily available as they once were. Meanwhile, COVID-19 and the Delta variant have many people reluctant to wade into the water, or back in the water, as the case may be. Also, millions of Americans were able to retire during the pandemic, and the many challenges stemming from COVID, especially in the workplace, gave them the impetus to take that step. Still others decided they just didn’t want to work for minimum wage, especially in the middle of the pandemic.
As for the hospitality sector, many people left it at the height of the pandemic in early 2020 when restaurants, bars, and hotels were shuttered, and they found something else — something better — and now, they’re not going back. There’s a similar story in healthcare, especially within the nursing field, but other specialties as well, as burnout from COVID has taken a huge toll on these professionals.
As for those who are seeking work, many of them still lack the skills they need to be good candidates for many of the jobs that are being posted, a continuation of a situation that existed in 2019, when, overall, there were far more openings than there were qualified people to fill them.
Add all this up, and it seems clear that, while it was still good to circle Sept. 3 on the calendar, the end of those unemployment benefits is not likely to be the end of the region’s labor issues. The problems are far more deep-rooted. And who knows what the impact will be of President Biden’s plans to require vaccination and/or testing for all employees of companies with more than 100 workers? It may put more still workers on the sidelines, and it may put more of them in the pipeline.
Those two words apply to just about every aspect of a workforce crisis that is deep, sometimes puzzling, and very persistent.