Illinois businesses facing a summer of a shortage of workers
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[May 19, 2021]
By Kevin Bessler
(The Center Square) – As the Illinois
economy slowly picks up steam, businesses are struggling to find
workers.
The National Federation of Independent Business Small Business Optimism
Index rose to 99.8 in April, an increase of 1.6 points from March, but a
record 44% of owners reported job openings they could not fill.
NFIB state director Mark Grant said several factors may contributing to
the worker shortage, including child care responsibilities, and enhanced
unemployment benefits.
“An extra $300 per week from the federal government on top of state
unemployment benefits are perhaps one of the things keeping people from
reentering the workforce,” said Grant.
To date, at least 16 states have elected to opt-out of federal
unemployment programs before their official expiration on Labor Day.
Governors say they are doing so in response to labor shortages, and
claim the benefits are keeping people from looking for work.
Governor J.B. Pritzker said Illinois will not be opting out of the extra
federal money. Despite having readily available and effective COVID-19
vaccines, he believes many people are leery about going back to work.
“There are circumstances as well where people are afraid to back to work
and they are staying out of the workforce or at least staying away from
taking a new job,” Pritzker said.
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Mark Grant, Illinois director of the National Federation of
Independent Business, in the state capitol in Springfield.
Greg Bishop | The Center Square
President Joe Biden has rejected the notion that the
supplemental unemployment payments were stifling job growth and
employers’ hiring efforts. He said his administration will make sure
that unemployment insurance rules prohibiting people from collecting
benefits if they reject a “suitable” job.
Grant said the employment landscape does present opportunities for
some.
“High schoolers or young college folks who are looking for summer
work who may not have had the opportunities in the past may have
more opportunities for work in the summertime,” Grant said.
The index also showed the percent of owners expecting better
business conditions over the next 6 months fell to 15%, which the
organization calls “surprisingly glum.” Grant said if the worker
shortage continues, it may be a long summer for some businesses.
“Members who have talked to me about their restaurants and some of
their other businesses that they have that depend largely upon a lot
of employees, they are concerned of not being able to stay open,”
Grant said. |