States push jobless from virus recession to return to work
States are pushing the unemployed to return to work to help businesses large and small find the workers they need to emerge from the COVID-19 recession
May 11, 2021, 12:57 AM
7 min read
Share to FacebookShare to TwitterEmail this articleJob seekers line up outside the New Hampshire Works employment security job center, Monday, May 10, 2021, in Manchester, N.H. States are pushing the unemployed to get back to work to help businesses large and small find the workers they need to emerge from the COVID-19 recession. Now some states are reinstating a requirement that anyone who collects unemployment must look for work. (AP Photo/Mary Schwalm)
STOWE, Vt. -- Eduardo Rovetto is hoping the state of Vermont's reinstated requirement that people who are collecting unemployment benefits must seek work to qualify will help him hire enough staff for his restaurant in the resort town of Stowe.
After more than a year of coronavirus restrictions on his business, Piecasso Pizzeria & Lounge, he's expecting a breakout summer tourism season. But like employers across the country, he's worried he won't have enough workers.
“We’ve been getting many excuses as to why not to return,” said Rovetto, who is offering a signing bonus of up to $600 to try to add 15 to 20 employees who agree to stay through the middle of October. “Obviously, it was a legitimate one with COVID, but, you know, I think that’s getting used less and less now. The vaccines are free; they are out there for anyone.”
Many employers are telling similar stories. Fourteen months after COVID-19 put hundreds of thousands of people out of work, the U.S. economy is rebounding and employers are desperate for workers.
The challenge was highlighted Friday when employers nationwide added 266,000 jobs, far fewer than expected, and businesses reported they couldn’t find people to fill the openings they have to keep up with the rapidly strengthening economic rebound.
To encourage people to return to work, more states are making it harder for people to stay on unemployment. Many blame the easy benefits that followed the pandemic, including what is now a $300-a-week supplemental federal payment on top of state benefits. The argument is that people make more money staying home than going back to work.
Several states have begun requiring those receiving unemployment benefits to show they are actively searching for work, and a few will stop providing the additional federal supplement.
It's not just the hospitality sector that is scrambling to fill positions. Alene Candles, based in Milford, New Hampshire, is looking to fill 1,500 positions for its facility there and another in New Albany, Ohio, to meet demand for the holiday season. Company representatives will be participating in a number of virtual job fairs this month.
“We have had more than 100 positions open since the start of the year, and just recently we increased sign-on bonuses to $1,200 for hourly positions -– in-part because we are competing with an entity that can print its own money -– the federal government -– and its $300 per week additional unemployment benefit," said CEO Rod Harl. “I would love to welcome those searching for work to join our team.”
On Monday, the state of New Hampshire reopened its job centers for the first time since the pandemic hit to help people looking for work, but only a handful showed up in the first few hours at the largest one in Manchester.
Labor experts say the shortage is not just about the $300 payment. Some unemployed people also have been reluctant to look for work because they fear catching the virus. Others have found new occupations rather than return to their old jobs. And many women, especially working mothers, have had to leave the workforce to care for children.
The details and the timing of the state-led efforts to get people back to work differ, but they are coming from states led by both Republicans and Democrats.
In addition to Vermont, states reinstating the work-search requirement include Arizona, Maine, New Hampshire, North Carolina, Ohio, Pennsylvania, Rhode Island and South Carolina.
