- The US is facing a labor shortage as workers are inclined to stay on unemployment.
- New Yorker Emily McGill made over $500 a week on benefits, slightly more than her contractor income.
- Abby Danis went from making $24 an hour to stay home to $17 an hour as an assistant manager.
- See more stories on Insider’s business page.
As the United States tiptoes into a post-pandemic world where at least 40% of Americans have been fully vaccinated, a new problem is emerging: labor shortages.
It’s a problem many companies, government officials, and experts blame on increased federal and state unemployment benefits, as well as the series of stimulus checks. The argument is that people simply no longer want to work while enjoying these benefits — or at least work for the wages they did before the pandemic.
“Now that businesses are beginning to open, the challenge employers are experiencing is finding people willing to return to a regular work schedule, contribute to society as a whole, and return to caring for our families,” Charles Jackson, president of the Association for Entrepreneurship USA, told Insider. “While [the] government continues to incentivize families to stay home, the small-business owner will be challenged again by not finding adequate labor to operate their business.”
According to Goldman Sachs, the amount low-income workers will accept for a new job has risen more than 20% since the fall, putting pressure on employers — like McDonald’s and Chipotle — to raise wages and increase benefits in order to attract job candidates. The bank anticipates these demands will push wage growth to 3.3% before the labor market ultimately finds a new balance.
Two professionals who found themselves raking in more money on unemployment than in their previous jobs shared with Insider their experience.
Unemployment helped NYC-based Emily McGill, 35, stay afloat and find clarity amidst career pivots
The contract Broadway publicist — who boasts past clients like Disney on Broadway and actor George Takei — turned communications consultant and part-time tarot card reader never stopped working during the pandemic. Instead, with one consistent client and unemployment insurance, she spent her time re-evaluating her situation.
“I think the biggest thing that happened was that I was really on this precipice of, ‘Am I even going to stay in theater?’ But the pandemic afforded me this opportunity to see there are so many other facets to me beyond theater kid, or Broadway girl, or Broadway publicist,” McGill told Insider.
In New York City where she lives, unemployment typically maxes out at $504 per week, but due…
Read More: 2 People on How They Made More on Unemployment Than Their Salaries