Unemployment benefits haven’t kept people out of jobs

Nope.  Maybe a few workers, who still live with their parents, are unmotivated.  For everyone else, the math doesn’t add up.  According to the Census Bureau survey, nearly 1 in 3 Americans on unemployment said they were still failing to cover normal living expenses such as food, housing and medical treatments.  Among recipients of jobless benefits with children, roughly 75 percent reported not having enough food for their children.  In the midst of all the banter about people sitting home playing video games, a study by the Federal Reserve on how Americans spent their stimulus checks revealed that only 29 percent of payments went toward consumption while the rest went to either debt repayment or into savings.

In the past year, study after study has debunked the myth that the emergency and unemployment benefits are disincentivizing people from returning to work.  Recent studies found no evidence that the additional pandemic compensation passed under the Cares Act last year held back the labor market recovery. 

Now that benefits ended, are we seeing a surge? Nope!

So, what are the causes of the workforce shortages we not only hear about, but experience when we go to a restaurant and there’s no waitstaff?  When we talk about the recovery, we should be looking at the jobs being offered and not the people.

Most of the jobs being offered use a federal wage standard that hasn’t budged in more than a decade.  Some wages in human services and other industries haven’t moved in over 40 years.  Remember in economics class the law regarding scarcity?  It’s beyond time to have pay correspond to the demand. 

Then there’s what some call The Great Resignation.  According to a survey conducted by LinkedIn, 74 percent of those surveyed indicated that either the time spent at home, during shutdowns or working remotely during the pandemic had caused them to rethink their current work situation. 
Others point to dissatisfaction, and even fear, caused by employers, who cut jobs during Covid-19, while workers watched leadership not share in their financial pain.  

The Great Resignation is just sinking in.  The common thread that runs through virtually every motivation for employee departures is an employee’s decision to no longer accept the unacceptable. Workers have labored long hours through supply shortages, sudden shifting schedules and often lax safety protocols, often without hazard pay or sick leave in the middle of the pandemic.  Worker’s self-preservation kicked in over concerns of their personal safety when returning to on-site jobs with the pandemic still present. 

I speak regularly on ways employers can increase engagement to counter workforce shortages.  Employees measure and remember how employers respond in hard times.  Workers want organizations to understand that hybrid work requires greater communication, not less. They want their boards and HR departments to have the authority to reward performance, minimize politics, and remove bullies that have no business managing other human beings.

Others made heartfelt evaluations around the true economics of a two-income household. They reevaluated the benefits versus the costs. Families have to choose the needs of the children over their jobs.  These concerns disproportionately influence low-wage earners and women.   The serious loss of this talent has been felt.

Another factor is our society’s need to increase avenues for immigrants.  We need to campaign for immigration reform because we simply need these workers.  Immigrates have historically been eager to work needed jobs and proven to be hard-working individuals.  The American Dream can fill jobs the current workforce does not want. Let’s streamline the process and get them to work.
With generations of children being funneled into higher education, parents have participated in the workforce shortages in factories, skilled labor, retail, hospitality, agriculture…the list goes on.  We need an education system that pumps out more than a four-year degree.  

The Great Resignation can also be seen as a tremendous opportunity.  There are a great many people looking for something better. It takes time and energy to walk the walk.  Workers want hard work to align with pay.  They want employers, who will support the family unit.  For some, it’s the American dream.  Moreover, workers want a workplace they can be proud of.  

The HR profession has foreseen these shortages pre-pandemic.  Employers who take steps to create work environments where employees feel safe, valued, and more empowered to do their jobs stands a greater chance of attracting and retaining talent.  They have a better chance of having pools of talent knocking at their door, unemployment aside.