Guest Post: Inslee has options to fully revive the economy

The good news is that the economy re-opens with an upturn. Nationwide, according to the US Department of Labor, a record 9.3 million jobs were available at the end of April, and unemployment claims have fallen sharply.

The bad news is that many companies don’t have enough employees to fill these positions. As The Columbian reported in May, “Companies across Vancouver are reporting a labor shortage that is entering crisis mode for restaurants and hotels. They cannot find workers to fill low-wage positions. “

To fully revive Washington’s economy as the coronavirus pandemic subsides, Governor Jay Inslee should consider two options.

One is to decline the grant of an additional $ 300 per week in unemployment benefits. Since the beginning of the pandemic, the federal government has made this amount available and added it to state aid for the unemployed.

The payments were necessary to cushion the economic shock of the pandemic and help suddenly displaced workers bring food to the table and pay for bare minimums. Now these payments have outlived their usefulness. While state aid has to be continued – with or without a pandemic – the additional federal payment cuts work.

The program is expected to continue until September 6th. However, at least 25 states have opted out of the additional payments or planned to do so before the deadline.

Inslee will no doubt oppose this proposal. But there is one other recommendation he might like better: create incentives to return to work. This would boil down to using the proverbial carrot rather than abolishing federal unemployment benefits.

At least six states offer re-entry awards between $ 500 and $ 2,000. For example, in New Hampshire, workers are entitled to $ 1,000 if they stay in a new job for eight consecutive weeks while being paid $ 25 an hour or less. In Colorado, workers starting full-time positions by June 26 can receive up to $ 1,600 from the state.

The labor shortage threatens to hamper the country’s economic recovery. As the Associated Press reported, “Many unemployed are still holding back. Some of the unemployed are likely to be looking for better jobs than they did before the pandemic that sparked widespread layoffs. Or they still lack affordable childcare. “

Childcare has long been a barrier to employment for many, and the pandemic has exacerbated that situation. Indeed, the nation needs to legally address its long-standing childcare shortage, but the immediate concern is getting people to fill available jobs.

As Inslee demonstrated through a nationwide lottery for people who have received COVID-19 vaccines, incentives are part of its management playbook. The state government offers money and other prizes to promote vaccinations.

So why not try the trick with jobs?

“A return to work incentive program and a vaccination incentive program are completely different things,” Inslee spokesman Mike Faulk told the (Tacoma) News Tribune. “Our total spending on the lottery programs is $ 2 million in CARES (state) funding. I don’t know what a return incentive would cost, but it would have to be a lot more and involve more employees and agencies. “

Indeed. But the benefits of a fully functioning economy are priceless.

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The Columbian is a family-owned newspaper based in Vancouver, Washington.