Christie Phelps came near her Covid breaking point last year as she contended with a naughty 5-year-old boy, “the most hyper child I’ve ever been around,” in her Indianapolis home daycare. On a particularly bad day he urinated on her fence and cursed in front of playmates. Other child-care providers turn children like him away for behavioral problems, but Ms. Phelps realized that “he needs help.” These days she also asks herself: “How am I going to keep dealing with all this? This is too much stress. I don’t have no one helping me.”

Ms. Phelps, 46, has been trying to hire for months, but “no one is biting whatsoever.” Her business, Christie’s Love Bugs, cares for 11 pre-K children and 15 school-age children. She has only four staffers, all part-time, although she offers employees free training, help with certification, and as much as $25 an hour. With no one to fill the jobs, Ms. Phelps works 10- to 12-hour days. She says her mental health has already suffered so much that she’s in therapy, takes medication, and struggles to sleep.

Lots of entrepreneurs are overworked these days. The National Federation of Independent Business surveyed more than 500 small businesses and reported last week that 42% of them had job openings they couldn’t fill. “As long as we’ve been conducting the survey, it’s never been that high,” says Holly Wade, executive director of NFIB’s research center. Some 7.4 million jobs were open at the end of February, according to an April 6 report by the Bureau of Labor Statistics.

But there’s another reason for the acute labor shortage: It pays to stay on the couch.



Some workers still fear they’ll contract Covid if they return to the workplace, and some parents are unable to take on full-time work because their children’s schools remain shut. But there’s another reason for the acute labor shortage: It pays to stay on the couch.

As Covid spread and the nation locked down last spring, Congress approved enhanced weekly benefits of $600, in addition to the usual state-administered unemployment payments, through July 2020. A working paper by the National Bureau of Economic Research found that 76% of those eligible for the $600 bonus could be given at least as much for being jobless as they’d earn by working. Lawmakers have since trimmed the enhanced unemployment benefits to $300 a week and extended them through September 2021. University of Chicago economist Peter Ganong says that even with the supplemental benefit halved to $300, “42% of workers are making more than their pre-unemployment wage.” And these analyses don’t count food stamps, rental assistance and other government help that may be available to the unemployed, or the stimulus payments that have gone to the employed and jobless alike.

In Indiana, the enhanced unemployment has meant that the jobless collected a maximum weekly benefit of $990, and now get up to $690—the equivalent of $24.75 an hour and $17.25, respectively. (The first $10,200 in unemployment compensation is exempt from federal income tax under this year’s Covid relief law.) Ms. Phelps is struggling to compete with what the government offers: “It’s making people terribly lazy. It’s making people not want to be part of the workforce. And that’s not good when the unemployment numbers are where they are”—3.9% in Indiana and 6% nationwide in March.

Ms. Phelps says she has watched in dismay as some of her daycare children’s parents have given up on seeking a job, and she says the enhanced unemployment has also made it tougher to be an employer. Workers slack off or make audacious demands. If they don’t get what they want, “they’ll quit on you, and then they’ll try to go get unemployment.” The BLS reports that some 3.4 million Americans quit their jobs in February. Under last year’s Covid-relief legislation, workers who leave voluntarily are still eligible for federal enhanced unemployment, University of Chicago economist Casey Mulligan notes.

“It’s making people terribly lazy. It’s making people not want to be part of the workforce. And that’s not good when the unemployment numbers are where they are.”
As vaccination rates rise, demand for goods and services is soaring, but there’s an enthusiasm gap between consumers and workers. The National Restaurant Association’s most recent survey found that 1 in 4 restaurant operators listed recruitment as their top concern, ranking it higher than Covid.


Texas restaurateur Eric Silverstein.
PHOTO: INKED FINGERS
Eric Silverstein owns two restaurants and a catering company in Texas, where the jobless rate was 6.9% in March. “In my eyes, there’s no unemployment,” he says. “It’s not a thing right now. Anyone who wants a job can get one today—in like an hour.” Before the pandemic, he would get as many as 15 applications for an open cook position. “Now, we might get three.” He’s looking to hire as many as 22 people.

Adam Allison, owner of the Handlebar Diner in Mesa, Ariz., and Secret Handshake Coffee and Tea in Tempe, reports similar problems. The state’s unemployment rate was 6.7% in March, and he wants to increase his workforce by about 25%, but he estimates that only 1 in 20 applicants bothers to show up for a job interview. “We have our cooks basically taking shifts washing dishes because we can’t find a dishwasher,” he says. They’re not happy about it, so he’s had to increase their pay. “We’re like, ‘Just come work here, we’ll pay whatever you need, and we’ll make it work later.’ We obviously can’t do the business if we don’t have the employees. If we need to raise prices on the beer, that’s what we’ll do.”

“How do businesses grow in this economy, where people aren’t working?”
Kelly William Cobb, owner of Hunter House Hamburgers in Birmingham, Mich., says with tips employees can make $15 to $30 an hour, plus health benefits, in a state with 5.1% unemployment. “None of those things are seeming to lure people right now,” he says. He’s had to turn down catering jobs, and he worries about who will staff the food trucks this summer. “How do businesses grow in this economy, where people aren’t working?”

Mr. Mulligan, the economist, has estimated that as a direct result of the federal government’s $300 enhanced unemployment benefit, between three million and five million fewer people are currently employed. Ms. Phelps, the daycare owner, says her greatest fear is that Congress will extend that benefit beyond September: “If push comes to shove, and I’m left by myself, then that will be it for me. That would be when I say I have to shut down. I am sorry. I have no one who wants to work.”

Even businesses that don’t shut down will struggle to expand. The longer enhanced unemployment stretches on, the more likely it looks that job growth will trail economic growth, leading to production shortfalls and perhaps higher prices.

Ask Patrick Rossetto, president of Duro Dyne National, a sheet-metal supply manufacturer that serves commercial HVAC distributors. The company has manufacturing facilities in Cincinnati and Bay Shore, N.Y., as well as a distribution center in Longmont, Colo. Unemployment is 4.7% in Ohio, 8.5% in New York and 6.4% in Colorado, but hiring remains “a sore subject,” he says.

Mr. Rossetto wants to expand his staff from 228 full-time employees to about 260. Even for unskilled positions, he’s offering several dollars over minimum wage. He provides three-day weekends and generous overtime. He offers existing employees as much as $1,000 for a successful referral and gives a $500 signing bonus to new full-time hires. “We don’t have a lot of takers,” he says. “I think at this time, with the money that’s being given out, many people have decided to accept a subsistence-level lifestyle, and they stay home.”

Mr. Rossetto would love to run two Saturday shifts if he had the workforce: “The demand is there.” Instead, he's struggling to fill orders on time. Before the pandemic, Duro Dyne aimed to ship within three days, with the order 98% complete. Now, orders are filled in seven to 10 days, only 60% to 70% complete. That means multiple shipments, high freight costs, and customers who get irked because they have to prepare to receive split orders twice. “It’s affecting our bottom line,” Mr. Rossetto says.

Ending lockdowns is the first step toward economic recovery, but ending lavish jobless benefits is the next critical move.
Mr. Mulligan says that with unemployment benefits so high, joblessness “becomes a new occupation—it’s not that different than having an army, except these people’s jobs are to sit at home rather than go to a foreign theater.” He analyzed the BLS data on job openings and labor turnover and noticed that when the $600 unemployment benefit expired, the number of job openings dropped as more Americans returned to work. Ending lockdowns is the first step toward economic recovery, but ending lavish jobless benefits is the next critical move.

link: https://www.wsj.com/articles/c...69?mod=hp_opin_pos_1

I have friends that are small business owners, going through this. They are suffering bad. Even large cooperations are experiencing the same thing. There are jobs out there, but why work when you get paid the same either way.

The woman that cuts my hair, been a friend for over fifty years, told me last time I visited she'd be closing her shop. Can't find anybody to come work for her and can't support a B&M business on her own.

A landscape and garden supply guy my wife worked for, and with whom she trades plants, is turning down business because he can't find anybody to work for him.

A lawn guy at my club, when I told him I might need him while my mower was in for repair, told me he might not be able to help me because he has no crew and is already having to drop long-time, well-paying customers.

Meanwhile, President-Alleged Biden and the Demo-idiots think they're going to pay for a whole bunch of pie-in-the-sky programs on the backs of taxpayers.

What taxpayers?

This is a problem in our area, too. We're mostly amenity based and restaurants and hotels are having a lot of problems getting help. A good friend manages a very popular restaurant and is not having these issues because they pay well and treat their employees well.

It's not just Covid unemployment either. ALOT of places are hiring and offering bonuses and more.
I have a family business that's national and in the past month, I've felt it badly. People left and work suffered.
I hear it from bars, restaurants, manufacturers, trucking companies and businesses in general that I communicate with.
Its disheartening.

I don't know where to start. Really. I have lost a shit ton of money because of this COVID bullshit, I have struggled to make ends meet and screwed up my credit because I didn't have money to pay bills, yet I don't qualify for anything help with Uncle Sugar and Retarded Cousin Sugar.

All the while working reduces hours, making less money and having more responsibilities, restrictions, more hoops (work, ie. paperwork to do) without any extra compassion in pay.

I know people that make money money then me, in yearly income qualify for unemployment, with the extra cheese make as much or more then they normally do, yet I lost enough to buy a new car in income, but get no relief from anyone.

On top of that I'm taking around a $2000.00 hit in income per month still to this day.

I'm so pissed off, disgusted, wore out, and unable to express my anger with this bullshit.

ARman

Restaurants by me are giving an extra $100 per paycheck just to try and keep people. It’s just more proof that the more help you give people the less motivated they become.

Just look how welfare has actually crushed the black and rural white community.

It pays to stay on the couch - until you finally have to try to go back to work.

I dig very deep into unemployment gaps when reviewing resumes/interviewing candidates. If I don't like your explanation - your not working on any of my Teams.

When the money runs out, and it eventually will, don't hire these bums. Period.

Note: I am not referring to people who were legitimately impacted by COVID fallout - which there are many.

I don't know if this is the reason, but it probably is. My auto repair shop is looking to hire extra help. Several people have filled out applications but never showed up - if they could be reached at all - for interviews. They're probably just going through the motions of appearing to look for a job so they can milk the unemployment some more.

quote:

Originally posted by egregore:
I don't know if this is the reason, but it probably is. My auto repair shop is looking to hire extra help. Several people have filled out applications but never showed up - if they could be reached at all - for interviews. They're probably just going through the motions of appearing to look for a job so they can milk the unemployment some more.

I'm getting the same thing.
I go through 3 different temp agencies and I'll get an email telling me X amount of people are showing up at 7am to start working. I've had multiple days where no one has showed up.
I did raise pay for all my employees, including temps, by $3 an hour. Of course I had to raise my prices across the board also. Had a small affect and I got a few decent people but for the most part, people don't show up that are scheduled to start.

Just the softening up process for UBI. Oh, and this helps destroy entrepreneurs and other parts of the middle-class. Congress is either the stupidest people or highly motivated to do exactly what they are doing.

Government can give you everything you want, just keep repeating while clicking your heels.

I can’t get an overnight person for my department. They’ve interviewed four people so far and each time the starting pay comes up they walk.

Although I agree with the concept of the article, high unemployment benefits discourage people from seeking a real job, the article is way out of date.
That Federal spiff has been cut in half ($300 now, I believe) so it still has an effect, but it is not going to stop the worker from the $25 an hour job the lady claims to be offering.
I have heard of many only wanting part time or cash jobs so they can still collect the payment.

quote:

Originally posted by Graniteguy:
It pays to stay on the couch - until you finally have to try to go back to work.

I dig very deep into unemployment gaps when reviewing resumes/interviewing candidates. If I don't like your explanation - your not working on any of my Teams.

When the money runs out, and it eventually will, don't hire these bums. Period.

Note: I am not referring to people who were legitimately impacted by COVID fallout - which there are many.

What kind of business do you have Graniteguy? I’ll be looking for some employment when I retire from my current madness.

cgode,

Are you looking to move to NH?

quote:

Originally posted by 220-9er:
Although I agree with the concept of the article, high unemployment benefits discourage people from seeking a real job, the article is way out of date.
That Federal spiff has been cut in half ($300 now, I believe) so it still has an effect, but it is not going to stop the worker from the $25 an hour job the lady claims to be offering.
I have heard of many only wanting part time or cash jobs so they can still collect the payment.

So I'm guessing you didn't read the article? It clearly mentions that it has changed from $600 to $300. Even at $300 fed, plus $400 state. That's $700 a week or $17.50 per hour. There are a shit ton of jobs that pay less than $17.50 per hour. It's obvious for anyone making less than $17.50 to stay home and enjoy the extra money and free time.

As for a job that pays $25 per hour, many won't want to go to work for the extra money. Having a job is expensive. You put wear and tear on your car, you have to buy clothing, you have to buy gas, you may need to pay for daycare, you have to give up 40 extra hours a week that you could spend taking bong hits and playing video games instead.

quote:

Originally posted by Graniteguy:
cgode,

Are you looking to move to NH?

Yes sir......looking at retiring from my FD job possibly in July....kinda waiting to see what our contract negotiations look like as it will either help or hurt my pension

The local news did a short story this morning about construction contractors not being able to keep up with demand. They interviewed two companies at a local home show. Both stated they cannot get workers because the unemployment benefits are too lucrative.

I also have friends who had two children in daycare. When covid hit the daycare shutdown but they still had to work. They hired a lady from the daycare who was laid off and she came to their home for cash. She collected all the unemployment and bonuses while still getting paid. She still works for them cash and has not returned to a paycheck job.

Talked about this recently with friends and we agreed that the people who ARE willing to work now and not collect unemployment are going to have a HUGE leg up later on when the benefits end in September...

They have their pick of job at the moment and pay rates are up because theres such a demand for workers. When everyone is forced to get off their couch later this year, they are going to have to comoete for jobs, probably settle for something less than ideal and probably get paid less as all the people reentering at once will suppress wages.

Every employer is going to be able to tell who chose to sit on the couch as soon as they ask what they've been doing the last 18 months. They will also remember who stepped up.


This is a great opportunity for low skill individuals (not meant as a put down) who are motivated to improve their station in life.

^^^^ Agreed come September people will be fighting for jobs.