Opinion: Marylanders Don't Want To Work, That's Hurting Economy

ANNE ARUNDEL COUNTY, MD — Have you gone to an empty restaurant and heard there was a surprisingly long wait? That may be because of the employee gap.

Many unemployed Marylanders don't want to return to work. The state needs these workers, however, because there are too many job openings.

Gov. Larry Hogan plans to eliminate the extra unemployment insurance checks next month. This will nudge stagnant professionals to find a job. One commerce leader predicted that this will force employers to raise wages and create more remote positions.

Patch recently partnered with several local organizations to bring you their latest news. This guest contribution comes from the Anne Arundel Chamber of Commerce. Here's what President and CEO Mark Kleinschmidt wrote about the employee gap:

"Over the last few weeks, the issue of a labor shortage due to the pandemic has gotten a lot of attention. We actually do not have a labor shortage, what we have is an employee gap.

There are several reasons for the employee gap and many employers point to the enhanced weekly unemployment payments from the Federal government as the primary factor. Governor Hogan has stepped into the fray by announcing that he will end the enhanced unemployment benefits provided by the Federal government under the American Rescue Plan Act as of July 1.

This will end the extra $300 weekly unemployment check that unemployed Marylanders are currently getting. In addition, the State will also reinstate its work-search requirement, which was suspended last March as the coronavirus pandemic hit. The requirement means people getting unemployment benefits will need to submit documentation that they are looking for a new job.

In a statement, the Governor said, “the federal programs provided important temporary relief, but vaccines and jobs are now in good supply, and we have a critical problem where businesses across our State are trying to hire more people, but many are facing severe worker shortages.”

Many employers agree with the Governor that the extra weekly unemployment checks act as an incentive for employees NOT to work. While it is a major factor in creating the employee gap, there are others, let’s take a look.

Other Reasons for the Employee Gap

While millions of Americans have been vaccinated and employers have taken steps to implement social distancing and other safety measures, many employees still are fearful of catching the COVID-19 virus at their place of work. These concerns are very valid for those who have pre-existing conditions that make them more susceptible or have an autoimmune disorder. Many of these employees are baby boomers who might need to look for other employment opportunities that provide work from home opportunities or minimal public contact.

The pandemic caused many day cares to close and schools to move into a remote learning environment. This resulted in children being home and the need for parents or guardians to be there with them which adds to the burden for them to return to work. While day care facilities are opening and schools are slowly returning to in-person classes, many workers will continue to struggle to watch their children, particularly as the summer months arrive.

The option of working from home really took hold during the pandemic and many employees want to continue working this way. For certain types of jobs[,] this is a great option and employers will need to re-think the way they do businesses and incorporate work from home systems into their operations so they can retain employees.

Fixing the Employee Gap

Using basic economic incentives as a tool, many employers[,] particularly larger companies, have started to offer signing bonuses to motivate employees to come back to work. While this has helped to get people back to work, many small businesses do not have the money to offer signing bonuses.

Maryland is the 24th State to take steps to end the enhanced Unemployment Benefits which will take away the financial incentive to stay home and help push workers back into the workplace. As this incentive goes away, the workers who act fast will get the better jobs and the less desirable jobs will be left for those who wait. The net result of this will be a push for wage increases especially for lower paying jobs, which will add political support for the movement to increase the minimum wage.

The push for higher wages will not be limited to just lower paying jobs but to all jobs which will increase operating costs. Larger businesses will have the ability to cover these increased costs, but small businesses will struggle. It will also make it harder for them to hire the best workers since they cannot pay as much as large corporations.

There will be an increased effort by employers to work with local colleges and universities, particularly the Anne Arundel Community College, for internships and job fairs as employers seek new ways to develop relationships with potential employees. The employee gap is also the result of a massive talent shortage in manufacturing and construction trades, and it is expected to get worse. Many employers in these two areas say it is very difficult to find qualified workers. The Anne Arundel Community College is helping to address this concern by offering expanded course work to train workers in their new Center of Innovation and Skilled Trades[.]

All in all, the employee gap will not go away for some time and employers will have to [adapt] by [updating] wage levels, offering flexible work, and re-thinking the best way to manage their employee activities and costs. The employee gap will be part of the new normal for all businesses."

Subscribe to your local Patch newsletter. Download our mobile application from the App Store or Google Play.

RELATED:

• Outdoor Dining Could Stay Til Fall; Anne Arundel Economy Improves
• Small Business Week: Support Mom And Pop Shops In Anne Arundel
• New Sports Bar Opens At Maryland Live, Brings 100+ Jobs To County
• Beer At Theaters, Sports Gambling: Businesses React To New Laws
• Why Jackie Robinson Matters Now More Than Ever: Business Leader
• 3 Proposed Taxes Could Hurt Anne Arundel Businesses, Leader Says
• Coronavirus Aid Helps MD Businesses As Legislative Year Nears End
• Coronavirus Relief Sends $112 Million To Anne Arundel: Expert
• Renovated Golf Course Reopens, Expects Boom For Distanced Events
• 'American Pickers' To Film In Anne Arundel County: Report
• Economy Could Recover By End Of Year, Anne Arundel Businesses Say
• George Washington's Legacy Started In Annapolis, Leader Reflects
• Coronavirus Complicates MD Taxes: What To Know Before Filing
• Anne Arundel Faces 'New Normal' While Bridging Out Of Recession

Have a story idea? Please contact me at jacob.baumgart@patch.com with any pitches, tips or questions. Follow me on Twitter @JacobBaumgart and on Facebook @JacobBaumgartJournalist to stay up-to-date with the latest Anne Arundel County and Prince George's County news.