U.S. job vacancies hit record highs in March, illustrating how a shortage of workers is hampering economic recovery and heaping fresh pres...
U.S. job vacancies hit record highs in March, illustrating how a shortage of workers is hampering economic recovery and heaping fresh pressure on President Joe Biden and his $300-a-week unemployment supplement.
Six states have now moved to end the federal program amid complaints that it is deterring people from looking for work.
Tuesday's Labor Department figures showed vacancies rising 8%, to 8.1 million openings in March, the most since record began in December 2000.
Critics were quick to blame the supplement, which pays more than most minimum-wage jobs. It is due to run until September as part of Biden's $1.9 trillion pandemic relief package approved in March.
President Joe Biden has been forced on the defensive as his $300-a-week unemployment benefit supplement is blamed for keeping workers at home and sending the number of job vacancies to record highs
Bureau of Labor Statistics reveal record highs for job vacancies at more than 8million on last day of March as businesses struggle to recruit staff
'While unemployment benefits were helpful during the pandemic to keep laid off workers afloat, the fact that many are now making more money sitting on the couch than being back at work is creating an unbelievable labor shortage for small businesses,' said Job Creators Network president Alfredo Ortiz.
'The Democrats should realize times have changed and reduce unemployment benefits accordingly.'
The combined benefits can total as much as $600 a week in some states.
It is not just conservative critics who see that as a problem. A recent Bank of America analyst note said the cash meant anyone earning less than $32,000 before the pandemic would be better off taking the benefits instead of working.
Yet businesses are desperately trying to recruit staff to meet pent-up demand triggered by the widespread availability of vaccines and trillions of dollars in public spending.
Kim Reynolds of Iowa is the latest Republican governor to opt out of the federal benefits in an effort to get Americans back to work
The result is a catalog of horror stories of businesses running into difficulties as they try to put the pandemic behind them.
Owners of 7-Eleven franchises pleaded with the company not to return to 24-hour opening because they were struggling to staff night shifts.
A McDonald's restaurant in Texas went viral after managers displayed a sign at its drive-through entrance asking for patience because 'nobody wants to work any more.'
And chicken processor Tyson Foods says it is raising wages to tackle high rates of absenteeism and worker turnover, which it is blaming on enhanced unemployment benefits.
Employers are scrambling to staff up in order to cash in on newly vaccinated customers as the economy fills with Biden's pandemic trillions
'It takes about six days right now to get five days worth of work done,' said Donnie King, Tyson's chief operating officer, on a conference call with investors.
Polly Lawrence, owner of Lawrence Construction in Colorado, told DailyMail.com that businesses like hers desperately need their labor force back.
"When small businesses are having to pay people to come in for an interview or offering $2,000 hiring bonuses, you know there’s a problem," she said.
"The Democrats need to eliminate or significantly lower the additional unemployment benefits they enacted as part of their $1.9 trillion stimulus bill."
The anecdotal evidence comes after jobs numbers released on Friday showed that Biden's strategy was facing a major test.
Instead of adding almost a million jobs, businesses reported hiring only 266,000 workers.
That means the economy still has 8.2 million jobs fewer than its peak in February last year.
Biden defended his strategy and said anyone turning down a 'suitable' job would lose their benefits.
'The line has been because of the generous unemployment benefits, that it's a major factor in labor shortages,' he said in response to criticism.
'Americans want to work. Americans want to work.'
At least six governors disagree. The Republican governors of Mississippi, Alabama, Arkansas, South Carolina, North Dakota, and Montana have signaled they will end the extra benefit early.
Iowa Gov. Kim Reynolds is the latest to follow suit.
'Our unemployment rate is at 3.7%, vaccines are available to anyone who wants one, and we have more jobs available than unemployed people,' she said on Tuesday.
'Regular unemployment benefits will remain available, as they did before the pandemic, but it's time for everyone who can to get back to work.'
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