Debate still rages about companies across the United States seeking to hire new workers to meet growing demand, while millions of Americans remain unemployed.
While owners of restaurants, bars, factories and stores are complaining of difficulties finding applicants to work in light of the high demand for their goods and services, most Americans prefer to stay home and get unemployment aid in light of the pandemic.
in this context; Greg Gianforte, governor of Montana, announced that his state will stop providing extended unemployment benefits in June, and will grant bonuses to unemployment aid recipients who return to work to help address the labor shortage, according to The Hill.
"Montana will end participation in a set of federal programs that were created in March 2020 under the CARES Act and have been extended multiple times throughout the coronavirus pandemic to support millions of Americans who have been forced out of work because of Corona," Gianforte said.
Montana will become the first state to do so. After June 27, Montana will stop granting unemployment aid recipients an additional $ 300 per week provided through the Federal Epidemic Unemployment Compensation.
The state will also stop participating in the Epidemic Emergency Unemployment Compensation Program, which provides additional weeks of federally funded unemployment assistance to recipients who have depleted state benefits, as well as epidemic unemployment assistance, which has expanded benefits to include workers, contractors and others who do not traditionally qualify for unemployment insurance.
These programs have been extended until next August through President Joe Biden's $ 1.9 trillion Corona Relief Bill, which he signed last March. Instead, Montana will use the money from his March relief bill to award $ 1,200 bonuses to people with an unemployment claim. Active as of May 4, accept a job offer and complete at least 4 weeks of paid work.
“Montana is open to work again, but I hear from many employers across our state who cannot find workers,” Gianforte said, arguing that “almost every sector in our economy is facing a labor shortage.”
Many right-leaning Republicans and economists argue that expanded unemployment aid keeps workers on the sidelines, because federal supplements pay for weekly benefits above average wages in some states.
But Democrats, progressive groups, and many economists on the left of center say that helping the unemployed will likely play little or no role in why some companies are so difficult to hire. Instead, they point to persistent health concerns and the millions of workers - most of them women - who have been forced out. Manpower to take care of sick children or loved ones.
On her part; "There are a lot of anecdotal reports going on about employers who can't find workers, but a closer look reveals that there may be much less than meets the eye," said Heidi Sherholz, policy director at the left-leaning Economic Policy Institute.
"While there may be a real shortage of labor in some pockets of the country, there are still very few jobs for a very large number of unemployed workers," she added.
And she continued: "These companies should raise wages to attract more workers, especially since service jobs are by nature more stressful and may be dangerous because workers now have to deal with those who block masks and persistent health concerns."
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