Millions of Americans set to lose jobless benefits as 25 states end federal programs early.
“I'm just not sure extra unemployment benefits are necessary at this point when there's not really a need to be unemployed at this point,” Sarah White, who manages three restaurants in Virginia, told ABC News.
White says her restaurants are facing a severe worker shortage, with only one out of roughly every 10 applicants showing up to interview. “One girl put it very, very blunt to me; she said, 'I know I make less to take the unemployment, but when am I ever going to get to make this much money to sit home and have a great summer,'” White said.
Economists argue expanded unemployment benefits are a small piece of the worker shortage puzzle, pointing to other factors like a lack of child care and concerns about COVID-19 health risks.Urie said she has applied to up to 30 jobs per week over the past year but rarely receives calls back. She says that employers are unwilling to be flexible with hours that would enable her to work full-time and care for her children.
Mark Zandi, chief economist at Moody’s Analytics, said it would take time for the economy to recalibrate after it went from being shut down to reopened in a matter of weeks. According to the Labor Department, new unemployment insurance claims dropped to 385,000 last week – the lowest level since the start of the pandemic.
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