Driving the news: McMaster cited labor shortages, but some experts say it’s the job climate and not unemployment benefits that determines how quickly people return to work.
- The state currently has 81,684 vacant positions, according to Department of Employment and Manpower Director Dan Ellzey.
What he says: “Businesses in South Carolina have suffered the brunt of the financial impact of the COVID-19 pandemic,” McMaster wrote in a letter to Ellzey.
- “The companies that have survived – large and small, including those in the hospitality, tourism, manufacturing and healthcare sectors – are now facing an unprecedented labor shortage,” he said. he added.
- “What was supposed to be short-term financial assistance for vulnerable and displaced people at the height of the pandemic has become a dangerous federal right. “
- The move takes effect on June 30.
The big picture: As the economic recovery continues, states have decided to reduce their workforces to pre-pandemic levels.
- McMaster’s announcement follows a similar move by Montana Gov. Greg Gianforte (right) earlier this week, per AP.
- A spokesperson for the Ministry of Labor told the AP that the ministry has seen no evidence that improved unemployment benefits are preventing people from looking for work. “Choosing to eliminate these essential benefits will have the greatest impact on the most vulnerable,” the spokesperson said.
- Several states, including Arizona, Florida and Kentucky, have said they are reinstating full job search requirements for people receiving unemployment benefits.