I was surprised somewhat to read that more than 4 million Americans are going to be cut off from federal provided jobless benefits in the next few weeks. Apparently, 25 states, all led by Republicans, decided to halt some or all emergency benefits months ahead of schedule. It appears that some business owners and managers have argued that the assistance income, which enabled people to pay rent and buy groceries when much of the economy was shut down, is now dissuading them from applying for jobs. Many of the businesses affected are in the service and hospitality sectors. However, the current reluctance or unavailability of workers to return to work can easily be explained by a number of evident factors.
Firstly, since March of 2020, lockdowns imposed by states and cities greatly affected restaurants, bars, clubs, etc. which are comprised often of low-paying employment. During the past year, many former employees chose to look for other employment, especially attracted by higher wages and benefits offered by bigger employers, like Amazon and Wal-Mart, who continued to rake in the money as a result of on-line purchases and increased customer needs during the lockdowns. Entry-level workers in service, hospitality and recreational sectors typically earned about $10 to $12 an hour. These days, as noted by many small-business owners, anyone paying that rate risks losing workers to employers like Amazon where starting pay is $15 an hour. On top of which, inflationary trends are on the increase.
Secondly, in the short-term with the quick opening of many businesses, it can be expected that employers will face a sudden increased demand for experienced workers. This will probably force some businesses to offer higher wages in order to attract workers, which some have shown a reluctance to do so because of economic uncertainties. Higher wages however have already benefited students who are looking for summer employment, especially in the recreational and tourism sectors.
Thirdly, the pandemic is anything but over. In the U.S., an average of 15,000 new cases and more than 400 related deaths are being reported daily across the country. Barely 40 percent of the population has been fully vaccinated. Among those Americans receiving assistance, there are those who have underlying health conditions or have members of their families who are vulnerable to COVID-19. Needless-to-say, these workers are reluctant to return to work under the current circumstances, especially where masks and physical distancing aren’t required at work.
Finally, women have been especially affected by the lost of employment in these sectors during the past year. The biggest issue for those with families is the lack of affordable and safe child and elder care. This was a pre-pandemic and will remain a major post-pandemic problem.
It’s unfortunate that Republicans have chosen to push their argument that pandemic jobless relief is hindering the U.S. recovery. The crazy thing is that the balk of income and unemployment assistance is being paid for by the Feds. Let’s face reality, there will be normal delays associated with reopening a mammoth economy. It’s simply too soon to pressure individuals facing several obvious hurdles to obtain work at this time. In their hurry to remove health-related restrictions and in the face of potential new variants, states and cities are risking the possibility of incurring a fourth wave of COVID-19 cases and hospitalizations — this time primarily among younger people who appear hesitant to get vaccinated. Will there be a consequent need for future lockdowns? Let’s hope not! Only time will tell. In the meantime, these unfortunate people continue to need our help.
FROLITICKS 