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Ross Silver • Sep 07, 2021

The most critical and widespread challenge facing businesses right now is the inability to hire the qualified workers they need. When businesses do not have enough employees, they are forced to turn down jobs, reduce hours, scale down their operations, and in the worst cases, permanently close. The latest data and surveys reveal a national economic crisis that is getting steadily worse. More than 90 percent of state and local chambers of commerce say worker shortages are holding back their economies. Additionally,  most economists say employers in their sectors are struggling to find qualified workers for open jobs.

According to some business owners and Wall Street experts, US employers can’t hire enough people because unemployment benefits are too high. The government is paying people not to work. According to the Bureau of Labor Statistics (BLS), in April only 266,000 jobs were created, falling well short of industry analyst expectation of 1 million new jobs. A major reason for the shortage was workers’ reluctance to return to work and fill open positions. 


Economists and labor market experts feel that after the pandemic disruption to the economy, a new normal may be forming. "The decline in the official unemployment rate should be seen as very troubling," said Michael Farren, economist at the Mercatus Center at George Mason University. "Unemployment should actually be rising as workers re-enter the workforce, given that vaccines are widely available and most lockdown measures have been repealed."


 A U.S.Chamber of Commerce poll released in June 2021 of unemployed Americans found 30% saying they do not intend to return to work this year and 13% saying they never expect to go back. While companies generally reported positive outcomes of remote work during the pandemic, many still believe workers should return to their offices now the pandemic is under control. Ninety percent reported “lack of available workers” as the main factor slowing the economy in their area—with two-thirds reporting it was “very difficult” for employers to hire workers. Respondents were more likely to attribute the stalling  economy to a lack of workers and not COVID. The government needs to stop the extension of all unemployment benefits and not make it so easy for people to “not go to work.” The pandemic is under control. Vaccinations are readily available for those who choose to be vaccinated. There is no reason for people to not return to work. Continuing to unnecessarily extend unemployment benefits only keeps individuals from maximizing their potential and hurts the overall economy. 


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