A coalition of Louisiana business groups is urging the governor to end Louisiana’s participation in the federal COVID-19 supplemental unemployment assistance program because thousands of jobs are currently going unfilled.
The Louisiana Association of Business and Industry (LABI), along with other business groups such as the Louisiana Motor Transport Association and National Federation of Independent Business (NFIB), say the federal weekly payments of $300 to unemployed workers are no longer needed. In addition, 17 other states, including many of Louisiana’s neighbors, are also opting out of the federal funding.
“We believe this additional benefit was an important short-term solution to help individuals who were adversely impacted at the start of the pandemic,” the coalition’s letter to Gov. John Bel Edwards states. “However, 13 months later, many employers are finding it near impossible to fully staff their businesses, which impacts the supply chain and timely delivery of goods and services.”
LABI spokesman Mitch Rabalais said the association also supports the state granting workers a one-time bonus if they return to work.
“ LABI is supportive of the idea,” Rabalais said in an email to the Louisiana Record. “There is legislation that will be up today (Thursday) in the House, HB 610 by Rep. Rodney Lyons, which would create a $1,000 incentive for those returning to work.”
State lawmakers were continuing to debate HB 610 on the floor of the state House of Representatives on Thursday afternoon.
“Talk to any small business owner on Main Street right now, and they’ll tell you that their biggest problem is finding workers,” LABI President and CEO Stephen Waguespack said in a prepared statement. “Rebuilding our economy is going to require a team effort that starts with getting Louisiana’s workforce back on the job.”
Economic evidence continues to pile up in favor of ending the supplemental unemployment insurance payments, according to Dawn Starns McVea, the NFIB state director.
“NFIB’s jobs report for April shows a record 44 percent of small business owners nationwide have job openings they can’t fill,” McVea said. “Our hope is that ending the federal supplement will encourage more people to re-enter the workforce.”
Louisiana’s current weekly payout for unemployment benefits is $247, so Louisiana residents who lost their jobs due to the pandemic potentially can receive $547 weekly.
The business groups also point out that Louisiana’s overall jobless rate is still higher than it was prior to the coronavirus pandemic, even though there are thousands of job vacancies around the state. The labor shortage is hurting some businesses’ ability to get back to full capacity as the state economy reopens, the May 18 letter states.