(KNSI) – Minnesota’s Governor doesn’t buy claims from business owners that enhanced and extended unemployment benefits keep workers from getting back to work.
During a press conference last week, Governor Tim Walz made the statement while offering incentives to Minnesotans who get vaccinated between now and June 30.
Walz says Minnesota has no intention of eliminating the extra benefit.
He doesn’t deny that you can disincentivize something, but that isn’t what he believes is happening.
“I think what we’re starting to see is a realignment of folks who aren’t going back to the same jobs. They’re looking for a little bit better wages. And we’re starting to see and this was long overdue, and I’m empathetic to business owners that have to make that balance, but I’ve always believed that it certainly can’t be on the backs of workers.”
People left unemployed because of the pandemic have been eligible for an extra $300 a week along with regular unemployment benefits.
Walz says he’s heard some business owners complaining about needing to adjust to the times.
“A statement today by someone who said, you know, this worker shortage is causing me to have to raise wages and benefits and you know, be more flexible with people. Yes. That’s how the economy works when it’s fair for everyone.”
The expanded benefits remain in place until September.
A survey released last week by the Greater St. Cloud Development Corporation and the St. Cloud Area Chamber of Commerce showed that 58% of respondents blamed the unemployment benefits for the labor shortage.
The survey was emailed to more than 1400 businesses, and more than 200 were returned.
Read the survey here: Labor survey results May 26, 2021
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