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Old Jul 12, 2021 | 9:05 am
  #230  
JBord
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Originally Posted by Visconti

Ordinarily, I would just assume the main culprit to be overly generous unemployment benefits, but, according to the article, both the UK and Australia are also experiencing labor shortages in some industries absent of generous unemployment benefits.
Another way of looking at it -- very few people see waiting or bussing tables as a long term job. The mass shutdowns were a catalyst for people to consider that next job a little sooner than they would have normally. The increased benefits allowed them a safety net to do it with no loss of income and, in some cases, even more income than returning to their jobs. The states that have started to cut off the benefits are already seeing increases in job applications and hiring (or at least were as of a few weeks ago, I haven't seen recent data).

The government basically told millions of people in entry-level jobs that they weren't "essential". So they looked to become essential. When polled or part of a study asking why they aren't returning to the f&b industry, will they say "because of the unemployment benefits", or "because I've found/am looking for a different job"? It's likely a combination, and the latter may not have happened without the former. IMO, this means eventually the market will catch up as the next generation of college students and young adults return to the industry while looking for their "career" somewhere else.
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