Unemployment Insurance is not to blame for the so-called labor shortage

[TexasTowelie]

by Peter Ruark


We’ve all seen the recent news coverage and memes going around about some businesses’ struggles finding workers right now. A coworker of mine even said one local fast food restaurant was putting mini-job applications in with every drive-thru order.

But while this is certainly a very real issue right now as Michigan and the rest of the country slowly emerge from the pandemic crisis, there are huge differences of opinion on what’s causing this so-called labor shortage, and what policy changes are needed to help resolve it. While some groups have begun to blame Unemployment Insurance (UI), leading economic experts beg to differ.

The Economic Policy Institute writes that periodic labor shortages and surpluses are part of the employment cycle that we should expect in a market economy, and that during a true labor shortage, employers raise the “recruitment intensity” for their jobs — raising the compensation or lowering the qualifications, which is not happening today. In March, while the nation had a notably high percent increase in jobs, including in the leisure and hospitality industry, there are far more available workers than jobs, with nearly 40% more unemployed workers than job opening and more than 80% more unemployed workers in the leisure and hospitality sector.

The Center for American Progress also observes that wages have not risen as they would during an actual labor shortage, and that “there are no signs of worker shortages, but rather of a dearth of good jobs.”

Read more: https://www.michiganadvance.com/2021/05/25/peter-ruark-unemployment-insurance-is-not-to-blame-for-the-so-called-labor-shortage/

[OldBaldy1701E]

1. So, you are suggesting

That these business owners are being... GASP... greedy?? And, anti-living wage? Who could have seen that coming?

[bucolic_frolic]

2. Employees have become empowered with home-gigs, work@home, stock trading, and crypto

You want to answer to the man when you can run your own show with upside potential? Anyone with half a brain and a computer is opting for a better lifestyle, self-responsibility, and finances that compare favorably with the suit-and-commute costs.

[Bernardo de La Paz]

3. "dearth of good jobs". Employers are best positioned to fix that problem. . . . . nt

[Firestorm49]

4. I'm with you. I don't buy it. No pun intended.

[3825-87867]

5. Minimum wage/Maximum tax?

There are millions of minimum/wage maximum/tax workers out there and the percentage of taxes they contribute is staggering compared with the upper crust. 40 hour $7.25 per hour comes out to $290 per week GROSS! Yet take-home pay can vary from around $210 to $190 or less clear per week! Imagine if politicians would lose $60,000 ( 66%) of their yearly wage! Yeah, I know. But (if) minimum wage/maximum/tax workers get a huge tax break in April because even the gov knows they don't make enough!(LOL!) BFD! Cash is needed now. Not once a year and not after the Feds used all their tax money for the extra interest for whatever (and that interest is money that really should belong to the minimum/wage/maximum/tax worker (and all of us, too). What's worse is that interest adds up to a hidden tax because we're all paying for our extra money we don't get to use or invest!

Social Security, local and state taxes, healthcare (if even available) subtracts even more. Meanwhile gas, food, utility prices, clothing, taking care of children have increased but not the wages so the actual take home pay is less!

Knock off the vast majority of these taxes and people on minimum wage/maximum tax can effectively have at least a slight increase in take-home pay.

And to get these "wondrous benefits" for those who help make BIG business exist? Increase their taxes. Yeah, they'll complain. And threaten higher prices or move overseas! Then threaten to nationalize them which will reduce their investors income (that will go over well!) and spread their business among many smaller ones.

Eliminate the SS Cap for a start and reduce the SS tax on min/wage-max/tax earners. It will help.

[TexasBushwhacker]

6. And some employers hire people at a higher hourly wage

but then cut their hours. Walmart's average FULL-TIME hourly worker only gets 34 hours a week.

[RicROC]

7. limited hours

My brother had to work at 3 jobs for most of his working life because he could never get more than 30 hours at one gig. Working under 30 hours per week at his main job, he was not eligible for vacation time or coverage for health care.
He's now 65 years old and doesn't have 2 nickels to rub together.

[OldBaldy1701E]

8. Don't worry

I am sure there are plenty of people who would readily tell him that this is all his fault. He wasn't 'hungry' enough. He did not save enough. He did not do this or that. And the entire time, the game was rigged. Yes, today's labor is little more than a game. Rake in what you can, regardless of who it destroys, and to hell with anyone who thinks you should be 'community-minded'. I weep for your brother and all Americans who have been forced into this cycle of wage slavery. I don't see anything changing any time soon. My only comfort is that I shouldn't have to deal with this crap for too much longer.