As immunization of populations against COVID-19 accelerates in the U.S., Canada and the European Union, the lessening of restrictions will allow more and more businesses to reopen, particularly in the leisure and hospitality sectors. However, in the U.S. and Canada, federal governments had introduced additional unemployment benefits and stimulus checks to provide financial assistance to people who lost their jobs during the pandemic. Many of the pandemic-related programs are expected to continue to the end of this summer. However, as more businesses reopen, there will be a demand for workers to return. The apparent data currently indicates that many workers are reluctant to return to former employment at this time for a number of very valid reasons. Employers say it is increasingly difficult to attract job seekers to an industry whose future is more or less tied to whims of the coronavirus and the uncertainty of vaccination campaigns.
The fact of the matter is that there continue to be pockets of COVID outbreaks in both the U.S. and Canada, regardless of increased immunization within the population. The chances of front-line workers being exposed to the coronavirus remain high with the arrival of more contagious variants. A good deal of uncertainty still exists. With the unemployment benefits in place, one cannot blame many workers for being cautious about returning to employment, especially that which involves low-paying jobs. In addition, women in particular are affected by the lack of affordable and safe daycare for their children. Remember that in many jurisdictions, schools remain closed and on-line learning, where available, continues to offer a safer option.
Several American states, more so than Canadian provinces, have moved quickly to open up their economies. However, despite everything, the pandemic is definitely not over. Indeed, the so-called ‘third wave’ has been worst in terms of hospitalizations, especially among younger Americans and Canadians. Case loads are still far too high, threatening to overload health care systems. For this reason, some governments are reluctant to move too quickly in reopening businesses deemed non-essential. Here in Canada, until a certain proportion of the population is fully immunized, governments actually prefer that many non-essential workers remain at home. However, in the U.S., some Republican governors have started slashing jobless benefits in their states, hoping that the loss of generous federal aid might force more people to try to return to work. Other states now require residents to prove they are seeking jobs to continue collecting benefits.
This past week, it was reported that just 266,000 jobs were added in the U.S. which was a disappointment since expectations were high for a hiring surge in April. It was anticipated that potentially a million Americans would have returned to work. Regardless of the impact of unemployment benefits on employment hesitancy, the fact is that many front-line workers continue to be concerned about the pandemic in their industries. For obvious reasons, people don’t want to be bringing home the virus to their families. Also, A Pew Research Center survey earlier this year found that 66 percent of the unemployed had “seriously considered” changing their field of work, a far greater percentage than during the Great Recession. People are now more aware of the potential dangers of such outbreaks, and would be more inclined to seek other less hazardous employment. As reported for example, grocery stores in the U.S. shed over 49,000 workers in April and nursing care facilities lost nearly 20,000 workers. The same considerations can be found among Canadian workers in these and other sectors. In addition, more affluent Americans and Canadians are retiring early because their retirement portfolios have surged in the past year and the pandemic may have taught them that life is too short.
In conclusion, what the pandemic has done is force many of the affected unemployed to reassess their future. Employers will have to also reassess their employment benefits, working conditions and levels of compensation in order to attract and recruit workers. As a consequence of the pandemic, the eventual result will most likely represent a major change in the operation of labour markets in most industrialized countries, including those in the so-called ‘gig economy’.
FROLITICKS 