You did not mention anything about the government’s intervention into the situation. We don’t have functioning supply/demand economy anymore.
Rent forgiveness and supplemental payments have encouraged many to stay home...Around here rent forgiveness would be quite a huge subsidy.
Some may get more staying home than a small business owner can realistically pay.
Why mention it at all? There has always been politics intermingle with the economy. The cause is irrelevant. If you can't get people to work at wage $X then pay $X + $Y. Again the reason does not matter.