'Hard to Compete with Free Money:' Businesses Struggle as Gov't Pays People Not to Work
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- Davis Professional Serviceshere in Chesapeake, Virginia
specializes in cleaningcommercial properties
and definitely feels the impact.
The lack of workers hasforced the company's owner
to leave the office and stepin to help take up the slack.
- The labor force is just stagnant.
It's not moving. It's not doing anything.
- [Charlene] For more than 25 years,
Jerry Flug has run his janitorial company.
Then the pandemic hit,
costing him about 25% of the business.
With the company rebounding,he needs more workers.
- It's been a big strugglefor us to fill those positions
and we right now currently have
about 30, 35 positions that are open.
- [Charlene] Across thecountry, as businesses emerge
from the pandemic shutdown,they're facing a labor shortage,
especially in the service industry.
According to the EconomicPolicy Institute,
childcare issues and ongoingfears about the pandemic
are somewhat to blame.
Many also point the finger atenhanced unemployment benefits
for keeping unemploymentrolls at 9.8 million,
about 3.6 million higherthan before the pandemic.
Employers say the federal$300 weekly benefits
are giving people areason to decline work.
- It's a big deal, you know,
and it's hard to competewith free money right now.
- [Charlene] That'swhy more than 20 states
are ending the federalunemployment benefit.
- Just last week, thiswoman came to the door
and was calculating herhours and ended up saying,
"Actually, I'm gonna makemore money off of unemployment
than I would making here."
She went through the whole process,
she even signed the paperwork with us,
and then the next dayshe was out the door.
So, it just happens andwe've just gotten used to it.
- [Charlene] Human resourcesmanager Keri Terray says
with so many job openings,
workers feel they couldweigh their options.
- So I think that it has broughta certain level of audacity
for people to kind of feellike they can wheel and deal.
There's more of a bargaining level there
that they're expecting because they know
that they have so many options.
And we have to do whatwe can to be attractive
to these job seekers.
- [Charlene] That includesre-hiring former employees.
- We have found that to bequite successful for us.
We've gone through.
We've found people who'veworked for us previously.
We reach back out to them, we call them,
and ask, "Would you by any chance,
are you interested in beinga Davis team member again?"
And we actually have people who've said,
"You know what?
I haven't considered that.
I think that might be a good idea."
- [Charlene] Flug has evenrolled up his sleeves to help.
- It's all hands on deck.
We do have kind of an approachof I'm not gonna ask anybody
to do anything I'm notwilling to do myself.
And so, yeah, over the past couple weeks,
we've jumped in thetruck, cleaning carpets,
stripping and waxing floors,whatever needed to be done.
- [Charlene] Meanwhile, Flug is hopeful
that business will soon return to normal.
- In the upcoming weeks
we feel like traction'sgonna start to happen
and people are gonna start going, "Yeah,
I think I need to get back to work
and be able to take care of my family."
- [Charlene] Charlene Aaron, CBN News.