Sunshine Sentinel

More than a year after the COVID-19 pandemic began, the U.S. continues to experience a labor shortage, and Florida is no exception as many businesses are having difficulties filling their staffing needs.

Gov. Ron DeSantis announced May 6 that the job search requirement required for continuing to receive unemployment benefits will be reinstated in June. The requirement was previously suspended due to the lack of job options during the pandemic. 

"I think it’s pretty clear now we have an abundance of job openings," DeSantis said in a statement to Foster Folly News. If you go to businesses they want to hire people. Particularly in hospitality — restaurants and all these things."  

The Florida Restaurant and Lodging Association believes the unemployment benefits are a significant contributor to the lack of interest in many job openings, and as restaurants continue to be short-staffed, the consequence is rising prices as a way to compete with unemployment benefits.  

“Now we’re as busy as we’ve been. The weather has been great and we’re trying to keep up,” Don Nicol, owner of Jacksonville’s TacoLu restaurant, said to Foster Folly News. He added that although his restaurant is hiring, he is receiving fewer applications. He said he hopes that ending this suspension will cause a rise in applications and employment around the state. 

A decrease in unemployment in Florida, however, has occurred. 

"Florida’s unemployment rate dropped from its pandemic high of 14.2% in May 2020, to 4.7% in March 2021. That current rate falls below the national average of 6%," according to an article published by First Coast News. 

Additionally, the U.S. Bureau of Labor Statistics reports hundreds of thousands of employees left the workforce entirely in the wake of the pandemic. 

"Now 4% is a lot and what it means is upward pressure on wages. Construction, labor, logistics, all of those industries have a tremendous shortage of workers," said Don Wiggins, CEO of Heritage Capital Group, in a statement. 

The labor force decrease can also be attributed to retirement and workers leaving jobs to take care of children. 

A University of Chicago study found that states that reduce the amount of unemployment benefit recipients might see 75% job growth following the changes, according to The University of Chicago Press Journals.

Twenty-three states have announced plans to opt out of federal unemployment assistance, including Alabama, Arizona, Arkansas, Georgia, Idaho, Iowa, Montana, Mississippi, Missouri, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, Utah and Wyoming, as reported by MSN News.