Unemployment Benefits Are Not Creating A Worker Shortage

May 07, 2021

While some employers may be struggling to hire for one reason or another right now, economists say generous unemployment benefits are not the cause. If demand for workers were exceeding supply, then the price of labor would be shooting up. But as Federal Reserve Chairman Jerome Powell said last week, overall wage growth hasn’t increased. “We don’t see wages moving up yet, and presumably we would see that in a really tight labor market,” Powell said at a press conference. “And we may well start to see that.” Read more at HuffPost.

2 Replies to “Unemployment Benefits Are Not Creating A Worker Shortage”

  1. Bad logic. If businesses were at full capacity, he would be correct but bisio are not there yet. Therefore, the business does not have the extra cash flow yet to give raises. Extra cash goes to additional associates to give correct customer/service ratio and pay back rent and deferred expenses.

  2. Ha Ha. Wages are going up rapidly in our markets as desperation grows. The opening offer here in MA now for any willing body is $17.50, often with a $500 signing bonus. Up from $14-14.50 last year, and $16 three months ago (minimum wage is $13.50 this year.) Our Illinois stores had to give everyone a 50 cent to $1 raise this month to retain people. Lower wage service job pay is going up rapidly. We have ads running on Indeed with no clicks.

Comments are closed.