JOBLESS RATE DIPS ... A BIT
Monthly $300 pandemic unemployment add-on wraps up today
The national unemployment rate dipped by 0.2% to 5.2% in August, as the number of unemployed people edged down to 8.4 million, according to the Bureau of Labor Statistics.
Today’s end to the additional $300 a week Federal Pandemic Unemployment Compensation provided on top of regular unemployment benefits could prove an incentive to look for jobs.
“Obviously, it will push some people to return to work,” said Kevin Lang, a Boston University economics professor.
Among those not in the labor force in August, 1.5 million people — little changed from July — said they were prevented from looking for work due to the pandemic, according to the Bureau of Labor Statistics.
“The bounce-back during the summer was not something that could be sustained,” said Robert Murphy, a Boston College professor of economics. “The resurgence (of the virus and the highly contagious delta variant) likely had some impact.”
Christopher Geehern, executive vice president of Associated Industries of Massachusetts, said: “What jumped out at me was the concern about Covid manifesting itself in employment declines, especially in restaurants and the hospitality industry. I think the public is being more concerned about going out because of delta.”
Geehern also said he’s seen an acute labor shortage in many industries.
“We’ve heard some manufacturing and construction companies actually turning down business because they don’t have enough workers,” he said.
Half of small business owners also are struggling to fill positions and find qualified applicants, according to the National Federation of Independent Business’s latest jobs report.
“This has been particularly problematic for restaurants, retailers and the hospitality industry seeking to financially recover from the shutdowns and restrictions of the pandemic,” said Christopher Carlozzi, state director for the NFIB.
“While some consumers may be ready to participate in the economy again, they are finding longer waits at restaurants due to fewer servers and longer lines at shops because of a limited number of open registers,” Carlozzi said.
“Employers cannot find help, and it’s not for lack of trying, as 41% of business owners report increasing compensation,” he said.
But the unemployed are weighing higher pay against the increasing concerns about the delta variant, Lang said.
“How these play out will depend on a myriad of factors, such as the availability of booster shots and improved information about the prevalence of breakthrough infections and their severity,” he said.
The labor shortage also has led to supply chain disruption because some industries, such as the auto industry, haven’t been able to get the parts they need, Geehern said.