As we emerge from the pandemic and the U.S. gradually returns to some semblance of normalcy, a familiar narrative is gaining traction: WORKER SHORTAGE! The prevailing belief is that no one wants to work because unemployment benefits are too generous. Critics often portray the unemployed as lazy individuals who prefer to lounge at home rather than seek employment.
States like Montana and South Carolina have opted out of additional federal unemployment benefits, with South Carolina’s Governor, Jake Thompson, claiming that the state is experiencing an “unprecedented labor shortage.” He argues that unemployment assistance has morphed into a “dangerous entitlement,” as some payments exceed what workers previously earned.
In the week ending June 26, 2021, South Carolinians received an average of $230 in unemployment benefits—roughly $32.86 a day—which hardly qualifies as a luxurious lifestyle. Yet, proponents of this narrative insist that higher unemployment benefits are discouraging people from seeking low-wage jobs.
However, the reality is quite different. Reports indicate that major businesses in Ohio are raising wages in an attempt to attract workers. For instance, Sheetz increased wages by two dollars, while White Castle raised starting wages from $11.50 to $15.00. Additional incentives like signing bonuses and free meals are also being offered, highlighting a clear message: pay workers better, and they will respond.
The underlying issue isn’t a shortage of workers; it’s a shortage of adequate wages. Data from the United Electrical, Radio & Machine Workers of America reveals that new unemployment claims are similar to those seen during the Great Recession. Meanwhile, wages in the leisure and hospitality sectors have risen by approximately 17.6% in the last six months.
When businesses like Klavon’s Ice Cream in Pittsburgh raised their wages to $15 an hour, they were overwhelmed with applicants. This situation arises from employers offering wages that do not reflect the cost of living or the demands of the job. As the Economic Policy Institute states, when employers claim they cannot find workers, they should clarify that they cannot find them “at the wages they want to pay.”
People are no longer willing to work for meager wages. Unemployment benefits are performing their intended function by preventing individuals from taking substandard jobs that would lead to a downward spiral in wages and working conditions. This situation is not about communism; it’s about basic economic principles.
Those calling for a return to pre-pandemic wage levels often overlook the challenges workers face, including health risks, especially in the restaurant and hospitality sectors. Many business owners are attempting to recruit staff at the same wages they offered before the pandemic, completely disregarding the increased risks and stress involved.
The reality is that there are more unemployed individuals than available jobs in the hospitality sector. If employers truly want to fill these roles, they must offer competitive pay. As it stands, many Americans are simply not willing to accept poverty wages anymore.
In conclusion, the so-called “worker shortage” is essentially a reflection of a wage issue. Companies must adjust their pay structures if they wish to attract and retain employees.
For more insights into budgeting for fertility and the processes involved in home insemination, check out this article. Additionally, for detailed information about assisted reproductive technology, visit the CDC’s website.