23 Jun Employers are struggling to hire people in the US. Will it also happen in Canada?
As COVID-19 cases in the US are slowly diminishing, businesses are opening up and are searching for employees. Many people expected that once lockdowns lifted, workers would immediately apply to new jobs, however unexpectedly, US employers have been finding it extremely difficult to hire new employees. According to a survey conducted by the National Federation of Independent Business, 42% of employers cannot fill their vacant positions.
Potential reasons why employers cannot find workers
There are many theories as to why employers are having difficulties hiring workers. Some economists are speculating that this difficulty could be due to the unemployment benefits currently being offered. For example, the unemployed in Tennessee are being given a total of around $30,000 a year, which could be severely decreasing their urgency to accept job offers. The relief package is only given to those who are currently unemployed but looking for work, which could be the reason why workers are agreeing to interviews and then failing to show up.
Another reason hiring employees has been challenging may be because workers do not want to put themselves at risk as COVID-19 continues to circulate. Many small businesses that are currently hiring are in the service industry, which requires a lot of interaction with customers. In these positions, it would be possible to contract the virus and could be concerning for those who have not yet received a vaccine.
Further, workers may not have the qualifications for positions that are currently available, or they may have qualifications that are more advanced than what employers are requiring. Because of the weekly $300 unemployment benefit, low-wage workers have less incentive to work low paying jobs which is resulting in employers having to increase compensation greater than these benefits. Some researchers are speculating that the issue may not be that employers are having difficulty hiring, but that they are having difficulty hiring workers at the rate they are willing to pay. Increasing wages may be difficult for small businesses trying to recover from several lockdowns, which is making the search for employees that more difficult.
If you have any questions about how your business can best recover from the COVID-19 pandemic, please contact KCY at LAW by filling in an online consultation request or contact us by phone at 905-639-0999 to book your consultation today.