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Businesses Struggle to Lure Workers Away From Unemployment: Some workers are making more from unemployment than at their old jobs, complicating reopenings
Wall Street Journal ^ | May 8, 2020 | Kris Maher

Posted on 05/09/2020 4:14:00 AM PDT by karpov

Businesses looking for a quick return to normal are running into a big hitch: Workers on unemployment benefits are reluctant to give them up. That’s complicating plans to reopen states and get the U.S. economy back on track.

For some workers, unemployment benefits are now paying more than their old jobs did. For others, safety concerns or a lack of child care, as most schools and day-care centers remain closed, are making them hesitant to go back.

That means reopening may not go as quickly or as smoothly as some elected officials and business owners had hoped.

Friday’s jobs report showed that U.S. employers cut 20.5 million jobs in April, or nearly all of the 22 million jobs added in the past decade.

The longer it takes to recover that lost employment, the more extended the economic downturn caused by the pandemic will be.

“That’s going to get in the way of any real recovery,” said Douglas Holtz-Eakin, president of American Action Forum and former director of the Congressional Budget Office.

Ilona Luce-Fina, who was laid off from her job as a bartender at the airport in Ithaca, N.Y., said she hopes her boss doesn’t call her back too soon.

“I was crying at work to leave, but then as time went on and I did receive benefits, it was like, wow, I’m getting more than when I worked there,” Ms. Luce-Fina said.

The pressure for businesses to staff back up is especially intense as many have tapped federal loans contingent on paying employees. The government’s Paycheck Protection Program forgives the loans if companies bring back all workers within eight weeks of receiving funds that can be used to pay operational expenses such as payroll and rent.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy
KEYWORDS: covid
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If you want small businesses to go under, pay their workers more in unemployment benefits than the businesses can offer for working.
1 posted on 05/09/2020 4:14:01 AM PDT by karpov
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To: karpov

Wean the unemployment recipients.


2 posted on 05/09/2020 4:17:26 AM PDT by ptsal
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To: karpov

All according to plan.


3 posted on 05/09/2020 4:18:43 AM PDT by fluorescence
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To: karpov

I never drew unemployment but isn’t returning to work a condition? Won’t the employer hire someone else and the lazy bum ineligible to get his job back ever?


4 posted on 05/09/2020 4:20:48 AM PDT by New Jersey Realist (Those who give up some freedom for some liberty deserve neither.)
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To: ptsal

How hard is this? The employer must inform the unemployment office that they are open for business and these employees names and ss# are needed back at work. The letter goes out to the employee, your job is now open if you chose to go back the option is yours your unemployment benefits will end on this date.


5 posted on 05/09/2020 4:24:00 AM PDT by ronnie raygun
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To: karpov

Grahamnesty has been banging the gong, ringing the bell, whatever way you want to say it, from the get-go! I’m no fan of Grahamnesty, but he was correct about folks getting more on umemployment than salary, would want to stay on unemployment.


6 posted on 05/09/2020 4:24:11 AM PDT by Road Warrior ‘04 (Boycott The NFL! Molon Labe! Oathkeeper)
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To: karpov

“Republicans Claim There’s a Disastrous “Drafting Error” in the Senate Coronavirus Bill That Isn’t Actually a Drafting Error” from March 25, 2020 at https://slate.com/business/2020/03/republicans-drafting-error-coronavirus-stimulus-bill.html


7 posted on 05/09/2020 4:24:28 AM PDT by beejaa
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To: karpov

By registered mail, contact the workers you want back and give them the date that they should show up. Be sure to mention that if they fail to show up, it will be assumed that you have quit.


8 posted on 05/09/2020 4:27:17 AM PDT by ByteMercenary (Healthcare Insurance is *NOT* a Constitutional right.)
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To: ByteMercenary

Note on the bottom of the letter that you are copying the state unemployment office.


9 posted on 05/09/2020 4:29:01 AM PDT by mad_as_he$$
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To: ByteMercenary

Note on the bottom of the letter that you are copying the state unemployment office.


10 posted on 05/09/2020 4:29:01 AM PDT by mad_as_he$$
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To: karpov

NO! Who could have predicted this?

Everyone.


11 posted on 05/09/2020 4:33:03 AM PDT by Drango (1776 = 2020)
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To: beejaa

When even left wing Slate writes a reasonable article about the possible problems in the bill that will allow people to make more by staying off work then by going back to work, it appears that this might be a big problem. It’s too bad that an earlier bill said that people could just stay home if they were worried about the coronavirus.


12 posted on 05/09/2020 4:34:18 AM PDT by Freee-dame
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To: karpov

I must be ignorant about this whole thing. I thought the purpose of the PPP is to keep people on their employers’ payrolls while they aren’t needed because the company is basically shut down. Wouldn’t these employees be ineligible for unemployment benefits if they’re still getting paid by their employers?


13 posted on 05/09/2020 4:35:08 AM PDT by Alberta's Child ("And somewhere in the darkness ... the gambler, he broke even.")
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To: ronnie raygun

You are correct.


14 posted on 05/09/2020 4:42:31 AM PDT by eyedigress (I don't need Navy Commanders freaking out. Weak)
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To: karpov

My employer is calling us back with a partial schedule, in order to hang on to their trained, experienced employees.

There’s not enough going on to warrant giving us 40 hrs per week. So they are calling us back with 15 hr a week schedules. This allows employees to continue collecting partial unemployment benefits but qualify for the $ 600 a week Covid-19 bonus.

This is going to end up being a company-wide IQ test: those who aren’t “quite ready” to return to work, even on a part time basis, can remain on unemployment right up until the end, without penalty. But once they are ready to return, the company will review their needs to determine if they can find space in the schedule for you. LOL I can think of at least 10 ppl who are going to roll the dice on this and stretch it out to the bitter end.


15 posted on 05/09/2020 4:55:06 AM PDT by Dana1960
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To: fluorescence
All according to plan.

Those nasty Republicans want you to go back to work. Perfect political play. Arrghhh.

16 posted on 05/09/2020 4:56:30 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: karpov

All this will END very abruptly on July 31st. The following Monday Aug 3rd will be their last $600 bonus check. My guess is they will seriously regret waiting to go back to work as those jobs are going to go to others.


17 posted on 05/09/2020 5:03:04 AM PDT by montag813
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To: karpov

Calls for more foreigners in 3, 2, 1.....


18 posted on 05/09/2020 5:07:07 AM PDT by skepsel (I miss William F. Buckley and the old Firing Line)
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To: karpov

yeah well I and others said that when we saw it but many here thought it was a great idea.

I you were making 700 (Very Likely the average weekly income for those who lost their jobs and maybe less) you get half from the state, which is 350 plus 600 from the feds, which is 950.

250 more a week.

The math was as easy now as it was then. WHY was this done?? Why was it signed and passed as part of the package?

Why are we ####ed with it until the end of July?!?!

And dems want to extend it??

If you get an offer for your job back and you refuse, you should lose ALL unemployment benefits.


19 posted on 05/09/2020 5:26:24 AM PDT by dp0622 (Radicals, racists dloont point fingers at me I'm a small town white boy Just tryin to make ends meet)
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To: fluorescence
All according to plan.

+1

20 posted on 05/09/2020 5:32:51 AM PDT by rarestia (Repeal the 17th Amendment and ratify Article the First to give the power back to the people!)
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