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Restaurants struggle to rehire workers due to unprecedented pandemic jobless payments
justthenews.com ^ | 4/27/21

Posted on 04/27/2021 1:33:40 AM PDT by martin_fierro

As states begin to ease indoor dining restrictions, the food service industry is having a hard time hiring employees, a difficulty owners blame in part on the disincentivizing effects of supercharged federal unemployment benefits, which are paid to individuals on top of their state benefits.

The federal benefit that Congress created in response to the coronavirus pandemic was $600 per week, which amounted to $15 per hour before state benefits were added in.

The number of workers eligible for jobless benefits expanded during the pandemic. For the first time, self-employed workers are also able to collect unemployment benefits.

House Majority Leader Steny Hoyer said recently that the $600 weekly supplemental jobless benefits were "very, very hard for any employer to replicate."

After the $600 ended after July, 31 2020, former President Trump signed an executive order reinstating the federal jobless payment at $400. Later, Trump signed into law a $900 billion stimulus package, which lowered the federal payment to $300, where it has stayed ever since. President Biden's American Rescue Plan originally called for a $400 payment, but the final package that passed the Senate last month was $300.

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(Excerpt) Read more at justthenews.com ...


TOPICS: Business/Economy
KEYWORDS: food; perverseincentives; unemployment
Supercuts lady cutting my hair yesterday shared that she's experiencing the same problem.
1 posted on 04/27/2021 1:33:40 AM PDT by martin_fierro
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To: martin_fierro

Our income was down 50% when hubby was furloughed from his job for 7 months last year and he was on unemployment. He couldn’t wait to get back to work. He makes really good money in a fine dining steakhouse though. I guess if he worked in a coffee shop he’d come out even with UI though.


2 posted on 04/27/2021 2:04:46 AM PDT by Prince of Space (Irish lives matter!)
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To: martin_fierro

Everybody is. I was talking to my gardened yesterday about this. He has two employees and has a hard time finding more. He says that if he sends one of his guys to the Horizon irrigation parts store, the other gardeners there immediately try to poach his guy. He says the going rate for unskilled labor here in Silicon Valley is now $25/hr. He also says his guys are making more than the boss/owner because he cannot pass all those costs on to the customers.

What a colossal government-caused disaster. Even worse, the worst is yet to come with very high inflation caused by this juicing of the money supply.


3 posted on 04/27/2021 2:07:30 AM PDT by ProtectOurFreedom (Real happiness is one that you share)
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To: martin_fierro

Seems everything our government does is mindless.


4 posted on 04/27/2021 2:11:37 AM PDT by boycott
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To: martin_fierro

...and some Democrats want to make the additional money a permanent program.

In essence, the Democrats got their $15/hour minimum wage.


5 posted on 04/27/2021 2:15:04 AM PDT by Erik Latranyi (We are being played by forces most do not understand)
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To: martin_fierro

I can’t drive down the street without seeing reader boards saying “Now Hiring”. But I’m also seeing signs for “Open Interviews” which basically says those establishments will hire anyone with a pulse.


6 posted on 04/27/2021 2:16:51 AM PDT by Artemis Webb (Be kind to each other, unless the other guy is a dumbass.)
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To: martin_fierro

only a five-year-old believes any of the
Democrats want to destroy the middle class


7 posted on 04/27/2021 2:21:30 AM PDT by RockyTx
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To: martin_fierro

One of the local Burger Kings has a sign outside reading “$1500 Signing Bonus.” I had to do a double-take, but that’s how desperate they are.


8 posted on 04/27/2021 2:22:44 AM PDT by rightwingintelligentsia (Democrats: The perfect party for the helpless and stupid, and those who would rule over them.)
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To: martin_fierro

This time has been great for the indians to take remote tech work and employers to drop rates to indian levels.

Never heard of any weekly payouts while not working.

Must be my white privilege


9 posted on 04/27/2021 2:32:54 AM PDT by sten (fighting tyranny never goes out of style )
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To: martin_fierro

Almost like the politicians are juicing the market unavailability to justify open borders.


10 posted on 04/27/2021 2:38:50 AM PDT by Chickensoup (Voter ID for 2020!! Leftists totalitarian fascists appear to be planning to eradicate conservatives)
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To: rightwingintelligentsia

There’s a string of McDonalds in FL offering $50 just to show up at an interview!


11 posted on 04/27/2021 3:20:32 AM PDT by albie
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To: martin_fierro

Any employee who relies on tips isn’t going to rush back to work in a place that has a diktat from the State that says they can’t operate at full capacity. If the employee accepts the lower wages and tips, it resets their unemployment claim amount going forward when the State shuts the company doors again.


12 posted on 04/27/2021 4:06:56 AM PDT by T.B. Yoits
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To: martin_fierro

A neighbor who manages a restaurant said he was to interview 16 applicants for positions there. Only one showed up for the interview, he was hired but never showed up for the job.


13 posted on 04/27/2021 4:09:28 AM PDT by lilypad
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To: martin_fierro

Supercuts lady cutting my hair yesterday shared that she’s experiencing the same problem.


Same in my area of FL. I went to go get my haircut and the place was opening late due to being short staffed.


14 posted on 04/27/2021 4:28:02 AM PDT by lodi90
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To: sten

This time has been great for the indians to take remote tech work and employers to drop rates to indian levels.
——————-
Already happening. Remote tech jobs with US companies that pay $10 or less an hour.

This is how tech jobs are being removed from the US. UpWork, the home of the $5 per hour job, has become mainstream.


15 posted on 04/27/2021 6:05:26 AM PDT by Starcitizen (So Indian H1B crybaby trash runs Free Republic moderation??? Seems so. )
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To: Artemis Webb

I can’t drive down the street without seeing reader boards saying “Now Hiring”. But I’m also seeing signs for “Open Interviews” which basically says those establishments will hire anyone with a pulse.
———
For part-time minimum wage work. No thank you.

The hardcore unemployed are those skilled blue-collar and white-collar workers that held career-level positions in the skilled services (hospitality tourism, travel and media industries), an industry still shut down. Jobs paying 2x to 5x or more than minimum wage.

The unskilled minimum wage workers are mainly back. Why would anyone throw away 10 to 30 years of experience to work fast-food?


16 posted on 04/27/2021 6:11:43 AM PDT by Starcitizen (So Indian H1B crybaby trash runs Free Republic moderation??? Seems so. )
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