There is evidence that expanded jobless benefits are keeping some unemployed persons from resuming work life – or at least taking longer to accept a position – because some are enjoying higher unemployment payments for longer than was typically available in the past.
My State’s U.S. Senator opposes reductions in jobless benefits to address the alleged “worker shortage”.
The implication is this may be a back door way to force higher wages by manipulating the costs of labor to force a higher market clearing price. Other factors in hiring are that
- Unemployment is relatively low, reducing worker supply
- Some potential workers may be resistant to work due to Covid-19 fears
- Restaurants are having a difficult time in part due to areas with government imposed business restrictions curtailing restaurant business, seemingly at random. Who wants a job with uncertain hours – for weeks at a time?
- Some potential workers can take time to find “the right job” due to enhance unemployment payments. This slows the hiring process.
- Some may choose not to work due to enhanced payments currently available.
Update: According to a progressive organization – it is a back door way to decrease the supply of labor, thereby moving the market clearing price for labor higher.
In effect, employers are having to compete with taxpayer subsidized government benefits.