Senate Minority Leader Mitch McConnell (R-Ky.) says Americans are “flushed” right now with money they received from the stimulus package during the worst stages of the pandemic, and that is what’s causing the labor shortage.
“You’ve got a whole lot of people sitting on the sidelines because, frankly, they’re flush for the moment. What we’ve got to hope is once they run out of money, they’ll start concluding it’s better to work than not to work,” McConnell said at an event in Kentucky, on Tuesday, according to Insider.
Millions of Americans receive stimulus relief from the government during the pandemic including $1400 checks. Republicans oppose the measure claiming it would worsening inflation and force people to stay home.
There are several reasons that could account for the labor shortage, none of which include living off of $1400 stimulus checks from a year ago.
People moving away from locations with open positions, parents not being able to return to work as they deal with ongoing pandemic uncertainty, and people deciding they would not accept a low-paying job, are just some of the reasons economists say contribute to the labor shortage.
Over the last two years, Americans have been quitting jobs at near-record rates–a trend known as the ‘great resignation,’ but hiring and job openings remain strong, Insider reports. This would indicate that Americans are quitting for higher paying jobs.
The labor market has seen a robust recovery since the worst months of the COVID pandemic and unemployment sits at a historic low of 3.6 percent.
