One-third of small businesses including grocery stores and restaurants struggling to hire new staff

As the US clamors to restart the economy following devastating coronavirus shutdowns that left millions of Americans out of work, a third of small businesses are struggling to hire people who could be making more on unemployment.

Thirty-two percent of business owners surveyed in the National Federation of Independent Business’ June Jobs Report indicated that they have openings they can’t fill, up nine percent from May.

Of the 51 percent who said they were ‘hiring or trying to hire’, a whopping 84 percent said they could find few qualified applicants, or none at all.

The hiring woes come as businesses like supermarkets, retail shops and restaurants are overwhelmed with unemployment claims as some workers have found they can make more money off federal and state benefits than they earned previously.

Some owners and policy experts are blaming people’s perceived reluctance to look for work on the federal government’s coronavirus relief bill.

The CARES Act gives unemployed workers $600 per week on top of state benefits, which average about $348 per week, per the Labor Department.

Thirty-two percent of business owners surveyed in the National Federation of Independent Business' June Jobs Report said they have openings they can't fill, up nine percent from May

Thirty-two percent of business owners surveyed in the National Federation of Independent Business’ June Jobs Report said they have openings they can’t fill, up nine percent from May

In New York City, supermarkets have struggled with job-seeking shortages as demand for groceries skyrocketed amid the pandemic.

At Morton Williams, about half of the roughly 1,200 workers on payroll have submitted unemployment claims in the past three months, according to co-owner Steven Sloan.

The company, which runs 16 stores in and around the city, saw claims jump tenfold to 400 at the height of the pandemic in March and April compared with a year earlier, Sloan told the New York Post.

That number continued rising to 600 through June, even as New York City launched its first two phases of reopening.

Morton Williams co-owner Steven Sloan (pictured) said about half of the roughly 1,200 workers on his payroll have submitted unemployment claims in the past three months while only three were laid off

Morton Williams co-owner Steven Sloan (pictured) said about half of the roughly 1,200 workers on his payroll have submitted unemployment claims in the past three months while only three were laid off

Morton Williams only laid off three people since March, but by the end of May more than 160 ex-workers were receiving weekly benefits from the state, Sloan said.

The company has disputed some of the ex-worker’s unemployment claims, but Sloan did not indicate how many.

He said that two of his young cashiers recently submitted a claim even though they are still working for Morton Williams, and when confronted by a manager they explained that ‘they were told if you file you can get extra money’.

In another case, Sloan said an employee quit because he didn’t feel safe working during the pandemic and then began receiving weekly checks worth $341 from the state, despite the company’s protestations.

The company also disputed a claim from a cashier who was fired in April for failing to charge a customer for $200 worth of groceries and is now getting $284 in benefits each week, Sloan said.

A masked Morton Williams employee is seen behind a plexiglas partition while checking out a customer. Sloan said the supermarket chain saw unemployment claims jump tenfold to 400 at the height of the pandemic in March and April compared with a year earlier

A masked Morton Williams employee is seen behind a plexiglas partition while checking out a customer. Sloan said the supermarket chain saw unemployment claims jump tenfold to 400 at the height of the pandemic in March and April compared with a year earlier

Sloan said that in the past it was rare for the New York Department of Labor to pay a claim disputed by the supermarket, and when it did happen, an explanation was offered.

But in the face of the pandemic, the agency has reduced transparency, he claimed.

‘In three months I have not received a single explanation about why former employees are being paid when I have disputed their claims,’ Sloan said.

‘So, I don’t know what their reasoning is. I can’t argue any of these cases if we don’t know what the rules are.’

The New York Department of Labor refuted Sloan’s suggestion that the agency’s benefits system has changed during the crisis.

‘We have a rigorous application and screening process to weed out fraudulent claims and ensure only eligible New Yorkers receive benefits,’ spokeswoman Deanna Cohen told the Post.

She confirmed that workers who quit their jobs or are fired should not qualify for benefits, adding: ‘If someone misrepresents their situation to get benefits they are committing fraud.’

But Sloan isn’t the only one who’s had issues with ex-employees filing for benefits.

Sal Bonavita, who owns two Key Food stores in the Bronx, told the Post he’s short eight employees – half of his usual 16.

‘We are seeing confusing claims from people who haven’t notified us that they are leaving,’ he said.

‘We haven’t laid off anyone and yet we are seeing much higher volumes of unemployment claims.

‘The [CARES Act] benefits are a key reason why people are not applying for jobs at our stores right now.’

Sal Bonavita, who owns two Key Food stores in the Bronx, said he's short eight employees - half of his usual 16. 'We haven't laid off anyone and yet we are seeing much higher volumes of unemployment claims,' he told the New York Post

Sal Bonavita, who owns two Key Food stores in the Bronx, said he’s short eight employees – half of his usual 16. ‘We haven’t laid off anyone and yet we are seeing much higher volumes of unemployment claims,’ he told the New York Post

The CARES Act, signed into law in March, significantly expanded unemployment benefits for out-of-work Americans as a record number were losing their jobs due to coronavirus-related shutdowns.

The bill offered people eligible for unemployment in their state an additional $600 per week for up to four months – which is about 156 percent larger than the current nationwide average benefits check of $385 per week.

While the job market has rebounded significantly in recent weeks as states are reopening – with 4.8 million jobs added in June – the number of people receiving benefits is still climbing.

According to the latest figures from the Labor Department, the number of Americans receiving unemployment benefits climbed to 31.5 million in the week ending June 13 – up nearly one million from the week before.

Some lawmakers and policy experts are now calling to end the $600 bonus because it could be stifling America’s economic recovery by giving people an incentive to stay out of work.

The unemployment rate in the US fell sharply in May, but many businesses are still struggling to find workers

The unemployment rate in the US fell sharply in May, but many businesses are still struggling to find workers

Fifty-one percent of business owners surveyed in the National Federation of Independent Business' June Jobs Report said they were 'hiring or trying to hire', and 84 percent of those said they could find few qualified applicants, or none at all

Fifty-one percent of business owners surveyed in the National Federation of Independent Business’ June Jobs Report said they were ‘hiring or trying to hire’, and 84 percent of those said they could find few qualified applicants, or none at all

William C Dunkelberg, chief economist at the National Federation of Independent Business, raised the alarm about a shortfall of job seekers back in May, asserting that ‘generous unemployment benefits are making it harder for some firms to recall workers and fill open positions’.

Andy Puzder, the former chief executive of CKE Restaurants, a senior fellow at Pepperdine University’s School of Public Policy and the author of Getting America Back to Work, echoed Dunkelberg’s argument in an op-ed for The Washington Post last week.

‘Virtually anyone in business will tell you that this $600 per week bonus is discouraging work,’ Puzder wrote.

He acknowledged the importance of offering the aid at the height of the pandemic, but added: ‘There is an important difference between helping people who are unable to work and providing benefits so generous that they encourage people not to take available jobs.’

The $600 bonus is set to expire on July 31, but Democratic lawmakers are working to extend it for another six months.

Their argument is that putting money into Americans’ pockets is the best way to energize the economy – and they say that the number of people making more on unemployment than before is getting blown out of proportion.

Commercial general insurance

Commercial general liability insurance is a general term that covers lots of different types of insurance, such as public liability insurance, employers’ liability insurance, and professional indemnity insurance. These types of insurance policies protect you and your business against claims resulting from losses, injury, and even death.

Read more at DailyMail.co.uk