As the U.S. economy continues to try and rebound from the worst of the pandemic, U.S. employers are facing a new crisis: Job vacancies they can’t fill.
Now, five states — Arizona, Connecticut, New Hampshire, Oklahoma and Montana — are so keen to get residents back to work, they’re offering cash incentives to those who nail down a new job.
Here’s more on what that means for those who are struggling to find work in one of those states.
What is being offered?
In mid-May, Connecticut’s governor, Ned Lamont, announced the state would be offering 10,000 long-term unemployed residents $1,000 if they’re able to find a full-time job and hold it down for at least eight weeks.
The same day, Governor Kevin Stitt in Oklahoma announced a similar initiative offering $1,200 to the first 20,000 Oklahomans who complete six weeks on the job.
Arizona’s Governor Doug Ducey recently launched a Back to Work program, offering a one-time $1,000 payment to unemployed residents who take on a part-time job and $2,000 to full-time workers.
New Hampshire’s Summer Stipend Program offers $500 and $1,000 bonuses for part- and full-time workers returning to the job.
And earlier this month, Montana launched a similar program offering $1,200 for people who hold down a new job for at least four weeks.
At the same time, all five states are either ending the extended federal unemployment benefits program or in the case of Connecticut, reinstating work search requirements, which had been waived through the pandemic.
“Since our state has been open for business since last June, the biggest challenge facing Oklahoma businesses today is not reopening, it’s finding employees,” said Stitt in a release. “I am committed to doing what I can to help Oklahomans get off the sidelines and into the workforce.”
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
What are these states trying to fix?
Small businesses and the restaurant industry are bearing the brunt of the current crisis.
In March, a survey from the National Federation of Independent Business revealed that 42% of business owners had job openings they couldn’t fill.
The numbers represent a 48-year high for the NFIB members.
On top of that, hiring in April was much lower than economists had predicted. Both the unemployment rate, at 6.1%, and the number of unemployed persons, at 9.8 million, remained steady, according to a report from the Bureau of Labor Statistics.
Some experts have linked the difficulty in filling jobs and the still-high unemployment rate to the fact that the federal government has extended its $300 weekly unemployment benefit to October, leaving the door open for workers to stay home and ride out the pandemic.
For many, the federal benefits offer more than they would receive on the job, making it possible for them to afford household essentials, paying down debt and put off looking for work.
On the other hand, some argue the pandemic has offered a unique opportunity for employers to offer more remote and flexible positions to reach more potential employees.
“Now is the time to regroup, take a deep breath and start to plan what the next steps really look like to ensure resilience,” says Brie Reynolds, career development manager for job search site FlexJobs.
Will it be enough to get people back to work?
While free cash may help fill the gap between when unemployment benefits end and when workers get their first paycheck, these bonuses don’t address some of the challenges preventing people from returning to the workforce.
For women especially, leaving their jobs in the pandemic was a necessary move to care for children as daycares and schools closed or moved to virtual learning — a situation that remains unchanged.
Others, who may be living with high-risk health conditions or family members that are at-risk, have chosen to stay home to stay safe. And some people who rely on gig work to make money are waiting for their industries to return to normal in order to have a steadier supply of work.
Meanwhile, there may be something else contributing to the labor shortage here. A Bank of America Securities researcher told Yahoo Finance that his team estimates approximately 1.2 million people over the age of 65 decided to retire during the pandemic.
Another 140,000 workers have died from the virus.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
How to make your own $1,200 bonus
Are you struggling to find work or supplement your reduced income because of the pandemic?
Here are some ways to boost your income while you figure out your plan for getting back to work.
-
Ensure you’re getting the best deals. By shopping around for the cheapest policies, you could potentially cut car insurance costs by more than $1,000 and knock down your homeowners insurance bill by hundreds as well.
-
Make room and save money. Cashing in on cleaning out your closet? Yes, please. Sign up for a service that offers you up to 30% more for your old belongings than other buyback programs. And when you’re ready to upgrade to new belongings, use a free browser extension that will scour websites for the best prices and coupons.
-
Invest like a pro for pennies. Forget everything you thought you knew about investing. No, you don’t need to be fluent in Wall Street jargon and it doesn’t require a fortune to be worth it. Download a popular app that allows you to invest with your "spare change” and turn your pennies into a diversified portfolio.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Sigrid is a senior associate editor on the Moneywise team, where she has also worked as a reporter and staff writer.
Mortgages • Feb 17
First-time home buyer programs
Mortgages • Feb 15
