U.S. President Joe Biden speaks on the economy in the East Room of the White House May 10, 2021.
U.S. job growth in April was less than expected. President Joe Biden on Monday (May 10) strongly urged businesses to raise workers’ pay and issued a warning to workers waiting for work that they will lose eligibility for unemployment benefits if they turn down a suitable job offer without the risk of contracting the disease (e.g., needing to care for a diagnosed relative).
According to CNBC, Biden announced Monday that his administration will distribute more epidemic relief funds to help businesses raise wages to attract workers to their doors as a large number of businesses hire staff as the economy restarts. At the same time, state and local governments will be allowed to apply for epidemic relief grants to push for streamlined aid distribution to child care centers and to send grants to 16,000 struggling restaurants and bars.
Biden said he has not “seen much evidence” that federal unemployment benefits of $300 a week before they expire in September will prevent people from going to work, refuting critics’ claims that increased unemployment benefits will prevent Americans from finding jobs. Biden added that “Americans want jobs” and that the latest jobs data reflects the importance of the stimulus package.
Biden also said that anyone “who gets a suitable job (offer) must take it or lose their unemployment benefits”; unless the unemployed have specific problems related to contracting the new coronavirus.
In addition, Biden asked employers receiving federal benefits to provide good pay, protect workers from the virus and encourage vaccinations so that Americans can accept jobs with confidence.
My expectation is that as the economy recovers, these companies will provide fair wages and a safe work environment,” Biden said in his remarks at the White House. If they do, they will find plenty of workers.”
According to a statement released by the White House, “Workers cannot refuse to work and continue to receive benefits because of general, non-specific concerns about COVID-19.” But they can refuse to work and continue to receive unemployment benefits if there is a child in the home who cannot attend school because of the virus, or if the employer does not comply with federal or state health standards, among other reasons.
The Labor Department reported on Friday that U.S. nonfarm payrolls rose by only a modest 266,000 in April, well below expectations of 1 million, and the unemployment rate rose to 6.1 percent. The Labor Department mentioned in that report that how businesses attract workers and what role the government should play in encouraging employment are the main challenges at the moment as the economy reopens.
On the other hand, Republicans and business groups are questioning the need for “enhanced federal unemployment benefits” as most of the country prepares to lift the restrictions. The unemployment benefits are part of Biden’s $1.9 trillion epidemic relief package.
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