Employers who are concerned about losing needed workers also have an option available to retain them: They can raise pay.
Lindsay. Photo: Alex Edelman/AFP via Getty Images The $2 trillion coronavirus rescue package hit a minor snag on Wednesday afternoon when four Republican senators gave a press conference objecting to its unemployment insurance provisions, noting that in some cases the $600-per-week enhancement to unemployment benefits in the package would mean workers who become unemployed could collect benefits that exceed the wages they used to earn.
They are worried that employers who would otherwise keep employees on the payroll during a shutdown will instead take advantage of these enhanced benefits and lay workers off, letting the government handle their payroll bill. They are concerned that workers in industries where we want to maintain or increase the workforce during the crisis — such as health care — might be inclined to become unemployed and claim benefits, and that could lead to a shortage of workers with critical skills.
As for shortages of workers by sector, it’s important to remember these are unemployment benefits, and you generally have to have been laid off to claim them. If you are a hospital technician who would like to collect an unemployment check instead of working, you’ll have to try to talk your employer into laying you off, which seems unlikely at a time when your employer needs all hands on deck.
The senators’ first concern — that owners of idled businesses are likely to lean on the enhanced benefits to shift payroll costs onto the federal government — is the only one that I think likely to be borne out frequently. But I don’t see it as a problem. Other countries, like the United Kingdom and Denmark, are explicitly enacting this as public policy, having the government pay private payrolls.
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