After Labor Day, expect Michigan job-seekers to hit a higher gear

September 05, 2021, 8:08 AM

The extra $300 weely bump the federal government has been adding to unemployment benefits ends this weekend, which should drive more into the job market, assuming other obstacles can be overcome.

Michigan workers should start trickling back as federal unemployment benefits end. 

The Free Press reports:

The unemployment rate in Michigan is slightly lower compared with the U.S. average, but many business owners across the state have said they've had difficulties hiring, leading to staffing shortages.

... Staffing agency executives say job seekers — as many as 443,000 who currently receive benefits — aren't showing up for interviews and if they are hired, may have spotty attendance records because of issues with finding child care or reliable transportation.

Some executives are anticipating that the week following Labor Day could bring a flood of job seekers because enhanced federal benefits that added $300 to claimants' maximum weekly benefit and expanded benefits to cover those who typically wouldn't be eligible came to an end Saturday.

Labor economists say the $300 is too simple an explanation for a shortage of workers, however. Labor was tight before the pandemic, and the enhanced unemployment benefits are just a small piece of the answer. Others say the impact is most pronounced in low-paying fields and low-skill manufacturing, where salaries hover in the $15-$19/hour range. 

Read more:  Detroit Free Press

Leave a Comment:

Photo Of The Day