If you pay attention to the unemployment rate and the current job market, you would know how hectic it is. Unemployment rates are at a high, nearing the rate during the start of the pandemic, but companies are struggling to find talent to work. In every sector, but more specifically in advertising and marketing, the candidate pool is shallow, with little a choice of talent.
One of the reasons unemployment rates are high and why companies are having a hard time filling jobs is unemployment benefits. When millions of Americans lost their jobs due to the pandemic and filed for unemployment, they received an extra $600 every week. For many Americans, they were making more on unemployment than they were making while they were employed.
Now that Americans are receiving extra rates on unemployment, it has stopped motivation to apply and look for jobs. For a while, many Americans did need more support from the government. Without a way to regulate if people are applying for positions, it leaves a gray area for who needs the unemployment money and who is abusing it.
Companies are struggling to find employees to the point they are offering compensation for referrals and sign-on bonuses. Wawa convenience stores throughout the greater Philadelphia area are offering $500 sign-on bonuses and a starting rate of $15 an hour for new employees. Honey Love Fried Chicken is also promoting an offer for a $250 gift card for referral if they are hired. The biggest problem these companies are facing is convincing people to work when offered money from the government.
The Biden administration has put in place a new initiative to fight the lack of motivation to work. Those that are applying for unemployment will have to prove that they are applying to jobs to receive compensation. President Biden expresses his faith in employment rates lowering if companies pay fair wages and provide healthy working environments.
Overall, the job market is in trouble if companies need workers, but workers don’t want to work when they are receiving better benefits through unemployment. The pandemic has poorly affected the mental health of millions of Americans, especially finding the motivation to return to work after a year at home. If you are ready to get back to work and don’t know where to start, get in touch with a recruiter at Clutch today to begin your search.