Back to work? That’s question of the month

The labor market upheaval of the past 18 months is taking an interesting turn as federal pandemic-related unemployment benefits expire this month — right around Labor Day, no less.

For restaurants in New Mexico, still struggling because of a worker shortage, the latest initiative is an advertising campaign from the New Mexico Restaurant Association called “Hungry for Success.”

Because of the worker shortage, many restaurants around New Mexico are closing on Mondays and Tuesdays.

On days when businesses are open, employees still on the job are running ragged. Bosses are paying overtime just to keep restaurants staffed four or five days a week.

“Hungry for Success” is a pitch to bring back those who’ve left the industry during the coronavirus pandemic — and also find new people who can restaurants as both a launching point and a career choice.

The campaign is timed to hit around Sept. 6, the ending date for pandemic unemployment benefits from the federal government. The $300-a-week supplement to state unemployment benefits is expiring. Employers are hoping workers get back to work soon after.

However, experience in other states shows that ending the federal benefits did not always push people back into the workplace. Twenty-six states already have ended federal pandemic-era benefits, a move many announced in May and executed in June and July.

A study by the UKG payroll and time management firm found states that kept benefits grew hourly shifts by 4.1 percent, compared to 2.2 percent in states where benefits ended early. Another firm, Homebase, found employment rose in states with intact benefits by 2.3 percent and only 0.9 percent in states that cut them.

Analysts say this is early data. Figuring out what federal pandemic benefits did to the job market will take many more months. However, it is clear that other factors are weighing in on whether people return to work.

For one thing, many individuals lacked child care. Some workers took early retirement.

Others simply switched careers. They won’t be going back to the service industry. Some can’t go back, sadly, because they were victims of the pandemic. The theory that people wouldn’t work while they had “free” money available is proving more complicated in the real world.

A campaign is one way to raise awareness that restaurant jobs can be attractive. After all, they offer flexible hours, camaraderie with fellow workers, the satisfaction of serving people and the opportunity to earn tips. Many restaurants are paying more money — for chefs, kitchen staff and, yes, even wait staff.

That’s similar to the approach being taken at Presbyterian Healthcare Services. The company announced Monday it will pay a statewide hourly minimum wage of $15, $19 in Santa Fe, because of the cost of living here.

Such wages likely aren’t possible for many small businesses, including restaurants, though many have upped their pay. Still, it’s a buyer’s market and employers — even the mom and pop operations — likely will have to respond.

Not just to their customers, but to their employees as well.