Historic Unemployment Numbers Collide With Record Demand For Workers

While U.S. President Joe Biden has continued advocating for the necessity of boosted jobless benefits, employers say they are having trouble getting workers to fill available jobs, the Financial Times reported on Tuesday (May 11).

Republicans have expressed their feelings that it is the pandemic unemployment boost that is now crippling workforce rolls and leaving good jobs unfilled. Combined benefits in higher-paying states can reach roughly $600 per week or about $16 per hour. That hourly rate is more than double the federal minimum wage. 

But others say the COVID-19 crisis has led many workers to question whether low wages are worth the risk.

Biden said there was insufficient evidence to suggest that the extended unemployment boost had anything to do with the lack of workers for some industries and verticals. 

“We need to stay focused on the real problems in front of us — beating this pandemic and creating jobs,” Biden said, per FT, also pointing to the reduction in new job generation.

Food service, transportation and construction are all industries reporting workforce shortages. By way of example, chain stores like 7-Eleven had franchisees requesting that plans be sidelined to renew 24-hour operations. One reason given was the lack of people willing to work overnight shifts, per the news outlet. 

A McDonald’s in Texas — now TikTok famous — posted customer signage requesting patience because “nobody wants to work anymore,” per FT. Post cereal brands and Tyson chicken products are among the production-driven brands that are suffering from low inventory due to the lack of factory and warehouse workers.

The U.S. Chamber of Commerce was also among critics pointing to the pandemic unemployment boost as a contributing factor in the difficulty some industries are having regarding unfilled jobs.

California Gov. Gavin Newsom said Monday that he is supporting a possible $100 billion stimulus plan that would triple direct cash assistance and help some two-thirds of the state’s residents. The result would be a $600 tax rebate to U.S. households making up to $75,000. Another $500 will go to those with children.

The Federal Reserve said last week that the overall length of the pandemic is still the biggest threat to the U.S. economy and financial systems. The recent jobs report showed a drop in new positions created — down 770,000 from 916,000 over the previous month.