Unemployment benefits in the US impediment to hiring?

Many feel that the enhanced benefits announced by the Government is keeping the unemployed at home because that seems a financially more attractive option for them

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The enhanced benefits that the US government is providing to the unemployed — an additional $300 a week — is actually making it difficult for various outlets to hire workers. In April, HRKatha had carried a story about a Mcdonald’s franchise in Florida that had struck upon a unique way to draw candidates for interviews. Although sales in the fast food space have gone up, outlets are finding it difficult to hire enough staff. Not many show up for job interviews. Therefore, the Florida outlet had chosen to pay $50 to applicants who appear for the interview!

Most McDonald’s franchisees blame this dearth of workers on the enhanced unemployment benefits, and so does the National Owners Association, an independent group of McDonald’s franchisees.

Apparently, the government aid is making people realise that they can earn more without working than they could in a job. This is leading to employers offering better wages and salaries, which is ultimately good for the average American worker. However, the issue is that the financial aid is keeping people at home instead of busy hunting for jobs or appearing for interviews.

The truth is that most food outlets hire workers at low wages. Now that the government aid is giving these workers more money than they would have earned at work, they prefer to remain unemployed. They choose to earn without stress than to earn less while suffering stress and huge workloads.

Employers are hoping that the Government will put an end to the enhanced unemployment benefits, which were otherwise to continue till September 2021.

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