Buffalo, NY (WBEN) - With help wanted signs just about everywhere at businesses across New York State, the push is on to lure workers dazed by enhanced unemployment benefits to get back into the workforce and fill those jobs.
New York State Senator Ed Rath has introduced a bill calling for a $1,200 incentive for people to return to work after staying home because of the pandemic. He says it has worked in other states, but another business expert says paying people to go back to work may not be the answer.
Rath says instead of giving bonuses for unemployment, it's time to reward people for going back to work. "We propose a bonus of $1,200 for going back to work and staying employed for four weeks," says Rath.
Rath says there's another reason for offering this bonus: helping small businesses. "We have heard from many small business they are really struggling finding access to workers, so if we offer this bonus, that will get people to back into the work force and support small businesses," explains Rath.
Rath says this is working in other parts of the country. "Arizona, New Hampshire, Oklahoma, and Montana, and so far during this pandemic, we have seen New York be first to get it wrong, and last to get it right. We have an opportunity for leadership to help small businesses who have been struggling," says Rath.
Not everyone is on board. "I don't think incentives are the issue," says Dottie Gallagher of the Buffalo Niagara Partnership. "I think in some cases, wages have already gone up as labor becomes more competitive. What we're seeing the resistance has been in lower wage jobs, where it's worth staying home and collecting the additional unemployment insurance. But when that expires, you'll be seeing those returning to work."
Gallagher says there are other concerns. "Until parents have reliable day care and schools are in session, it's going to be difficult for one or the other to return to the work force," explains Gallagher. "I don't think any amount of money will bring people back. It's making sure there's stability in their families and it makes sense for them to go back to work."
Rath says the $1,200 bonus could go toward child care or paying bills. He understands some concerns those might have about going back to work. "They've been worried about their health. Now, we've turned a corner and the pandemic is starting to appear in our rear view mirror, this will be a good opportunity to go back to work and have confidence as people are more comfortable about their health," adds Rath.
