How appropriate for Democrats to cut off the federal enhanced unemployment payment of $300 on Labor Day, while New York State also cancelled extended benefits for its 1.6 million residents.
Advocates of the measure say it will allow small businesses to find desperately needed workers for NYC to return.
I predict this will be a boondoggle as the need for these additional waiters, waitresses and retail workers will not be needed anytime soon.
Hundreds of thousands of Manhattan workers are being told the plans to reopen offices in September are being put on hold as the Delta variant and newer strains are being examined.
Post-Labor Day office opening plans are being pushed off to 2022 due to complications of vaccine mandates being required in workplace.
As the Manhattan reopening is delayed so will the hiring of middle-level office workers be pushed back as staffing levels will be in flux until it is time to suit up and show up at the office after18 months at home.
NY’s jobless rate stood at 7.6 percent statewide in July and 10.5 percent for New York City, according to the state Department of Labor. It will take three months to see if these measures achieved the desired effect.
Of course the jobless rate will go down as many people will no longer be considered unemployed, but you will need to look at growth in other state and city social services as these workers struggle to stay afloat.
It’s all well and good for the restaurant and retail industries leaders to say, “It’s time to get to work!” But the overall demand for meaningful additional staffers will be down the road. These business leaders including local Chamber of Commerce spokespeople are not looking out for workers, but only trying to help business owners reduce their payroll costs by increasing competition for limited job openings right now.
One voice seeing possible trouble on the horizon is Andrew Rigie, of the NYC Hospitality Alliance, who told The New York Post be careful for what you ask for.
“Restaurants have been running very short staffed, so there’s been a hope that workers will return and I’m sure it’ll happen in limited numbers,” he said, “But other states that already eliminated the federal unemployment did not see a huge bump in employment, so I suspect the hiring challenges at eateries will unfortunately persist.”