Virginia Beach Mayor: Excessive unemployment benefits causing workforce shortage

(The Center Square) – The workforce shortage and high unemployment rates may be partially caused by the additional unemployment benefits provided to those who are not working, Virginia Beach Mayor Bobby Dyer said in a round table discussion.

“The blessing and the curse was the unemployment that people were getting,” Dyer said in a discussion with other mayors and public officials. “People elected not to go back to work even though they had the opportunity.”

Dyer’s concern was echoed by other mayors who feared the benefits were fueling the workforce and unemployment problems in the commonwealth. During the pandemic, states and the federal government have made it easier to receive unemployment. The time for which a person can receive benefits was extended from the normal time, certain restrictions were eased and people have been able to get additional money from the federal government.

Depending on a person’s job, someone could be making more money from unemployment than they would by returning to work.

According to a report from the National Federation of Independent Business, 42% of business owners reported job openings that could not be filled, which is a record high. According to the group, this is caused by workers declining to go back to work because of fear from COVID-19 and the increased unemployment benefits.

Business owner uncertainty, according to the report, has also gone up.

Virginia’s unemployment is around 5.1%, which is better than the national average, but 2.5% higher than it was at the same time in 2020.

Disclaimer: This content is distributed by The Center Square