With Florida canceling the extra unemployment benefits, it may take a little time for things to get back to "normal"
This Monday, Florida Governor Ron DeSantis has said, "No more!" to the additional unemployment benefits that have been in place since the very beginning of the coronavirus pandemic in the United States. The federal benefits of $300 per week were granted to all Americans on top of their state unemployment benefits so workers could ride out the pandemic without putting too much strain on businesses. The Florida maximum benefit amount is $275, meaning many workers received $575 in total unemployment.
The additional benefits are set to expire on June 27th, when workers will go back to the state maximum of $275 per week.
This comes in the wake of many complaints from Florida businesses that the additional benefits have been preventing workers from looking for work. We've all seen a flurry of posts on social media, with employers saying they've got openings but no one is applying.
On the other hand, many employers across the United States have reported that by raising wages and offering more appealing benefits to workers, they've been able to overcome the hurdles involved in getting back to normal. One ice cream parlor in Pittsburgh raised its wages to $15 per hour and swears by it, saying it helped them draw in the kind of talent they needed to run their business.
So what's really going on with the labor economy? And, more importantly, what does this mean for Florida businesses?
Well, in order to overcome any problems you might have, it's first wise to understand those problems.
First, let's start with the fact that it's a lot more complex than meets the eye at a first glance. While the benefits are still currently extended through June 27th, the unemployment rate is actually quite low for Florida. So that shoots the theory that everyone's just lazily sitting around and not working right in the foot.
The Unemployment Rate is Low
The current unemployment rate according to the Florida Department of Economic Opportunity is only 4.8%, which is really low. For a frame of reference, back in 2010, as America reeled in from the prior economic crisis, the unemployment rate was a whopping 10% (it was 10% in 1992 also).
In 2015, the unemployment rate was 6%.
And at this point, the unemployment rate has returned to pre-pandemic levels. See the graph below.
So it seems that something else is going on that's preventing the workers available from finding the jobs available.
The Economist reports that the single biggest factor cited by people looking for work as the reason they're hesitant to go back is safety. Workers fear catching the virus and getting sick, especially seeing as COVID-19 carries quite a few long-term health risks.
The next biggest problem seems to be a mismatch, or a miscommunication, for lack of a better term, between the workers looking for work and the employers who need employees. Stop and think about it, at the beginning of the pandemic, a lot of people lost their jobs forever. A lot of businesses tragically closed down and all of those workers may not readily have a new job available in their respective industries.
This means that someone working at a hotel as a cleaner, for instance, may not have thought to go apply at a restaurant or a bar quite yet. As everyone gets back to something that feels like normal, there's going to be an adjustment period and a lot of people might change professions altogether.
Consider this the big shake-up.
It might take a while for this process to work itself out and for these people to find you, or for you to find them.
So what can you do to bring employees on board?
A few different things you could try might include offering higher wages than competitors and benefits that others in your industry might not be offering. This will entice those who've already worked in your field to come along and try your company out.
If this isn't a possibility, it might be smart to reach out to people on sites like Monster.com and Indeed.com, places where people are looking for work. Even somewhere like Craigslist might land you that gold-star employee.
Another thing is, a lot of people might have shifted areas. Employees in Orlando might not be thinking to look for work in Sanford. Employees in St. Petersburg might not be thinking to look for work in Tampa. So expanding your search area for employees might do you some good if you're trying to find someone and turning up few or no applicants.
One local cleaning company I saw also resorted to other perks that employees care about, like offering daily pay as opposed to weekly or biweekly pay, so for those who can manage it, this might be a nice draw to get that perfect person for you.
Lastly, consider spreading the word on social media. In the age of social media networks, even job fairs can go viral. Consider making a post and asking your friends to share it with their friends and you might find someone who works for your establishment.