🔒Bordonaro: CT should end extended jobless benefits this summer; rebuilding labor force creates new opportunities

Should Connecticut end its participation in paying jobless residents an extra $300 in weekly federal unemployment benefits?

It’s a key question many state governors are asking themselves as the U.S.’ economic recovery continues to be hampered by a labor shortage, particularly for lower-wage jobs.

At least 21 (mostly red) states have already told the federal government they will no longer be paying out the extra funds, which were established during the pandemic and are scheduled to end this September.

Gov. Ned Lamont said he plans to continue the extra jobless benefits until they expire, but I think the additional aid should run out sooner, maybe July 1, as long as the spread of coronavirus continues to subside and more people get vaccinated.

The extra pay is keeping some low-wage workers out of the labor force, contributing to Connecticut’s lackluster job growth in recent months and creating headaches for some small business owners in various industries — from restaurants and retailers to advanced manufacturers — who can’t find people to fill jobs.

That being said this isn’t a black-and-white issue. There are still some people who are skittish about returning to work due to concerns over health and safety, and child care issues — which forced many women out of the labor market during the pandemic — remain a problem.

Employers need to be empathetic as we slowly return to normalcy.

And even though Lamont is leaving in place the extra jobless benefits, his labor department recently reinstituted the mandatory work-search requirement in order for people to qualify for unemployment compensation. He also announced a program that will give up to 10,000 long-term unemployed residents a $1,000 bonus if they start (and keep) a new job now.

Both steps should get more workers off the sidelines, although the bonus payment raises serious questions about the government’s role in spending public money at the tail end of this pandemic.

The reality is we’ve all been part of a socialist experiment during the past year, with both businesses and individuals getting free or cheap money from the government.

Some, or maybe even most of the funding may have been necessary to help businesses that were forced to close or restrict capacity, and people who were laid off through no fault of their own.

But in many ways the government established new relief programs — like the Paycheck Protection Program or direct stimulus payments to individuals — that I’m not sure should be automatically replicated in the next economic downturn, unless it’s caused by another health crisis that forces people to shelter in place to prevent the spread of a deadly virus.

And as Connecticut tries to rebuild its labor force we should also remember the job-shortage issue isn’t new. Manufacturers and other trades have had difficulty filling open positions for years, hindering our economic growth.

And many companies in those sectors are paying good middle-class wages.

As more low-wage workers re-enter the labor force in the coming months it presents a great opportunity for the state and private sector to promote and market the higher-paying, non-college degree jobs that are available in key sectors of the economy.

If we are smart, or even lucky, maybe we can use this short-term problem to help solve a long-term issue.

As we head out of the pandemic new opportunities exist for both workers and employers.