Amid an ongoing labor shortage that has hit the service industry particularly hard, Florida has become the twenty-third state to reject the federal government’s supplemental $300 per week in COVID-19 unemployment benefits.
“Florida will end its participation in the Federal Pandemic Unemployment Compensation program, the $300 per week supplemental FPUC payment, effective June 26, 2021, as part of DEO’s ‘Return to Work’ initiative,” the Florida Department of Economic Opportunity (DEO) said in a Monday press release.
The DEO cited job growth of 18,800 in the month of April as the impetus for dropping the FPUC, along with 460,000 job openings for Floridians posted online.
“Florida’s employers are also seeing employment growth, as more Floridians, including some who completely left the workforce, are now eagerly reentering the workforce,” said DEO Secretary Dane Eagle. “Transitioning away from this benefit will help meet the demands of small and large businesses who are ready to hire and expand their workforce.”
Florida is in a peculiar position as the pandemic winds down.
The state remained largely without COVID-19 restrictions, and after the vaccine became widely available, businesses and consumers were eager to resume life as normal.
But many workers, with the extra $300 federal unemployment benefit, were not.
That led to a shortage of workers, especially in the service industry.
Bill Casper, owner of 60 McDonald’s restaurants in the Tampa area, explained the problem in April.
“The biggest challenge out there is the federal government and the state government are going to continue with this unemployment, because that is truly creating the incentive to not work right now,” he said. “And, how do you blame somebody? You can make more money on unemployment—and so, we’ve got to be at least above that.”
At one point, Casper was paying potential employees $50 just to sit down for an interview.
Carol Dover, President and CEO of the Florida Restaurant and Lodging Association, applauded the DEO’s move to withdraw from the FPUC.
“Florida’s hospitality industry was one of the hardest hit industries during the COVID-19 pandemic. Even though our industry is open for business, we are facing a dire labor shortage,” she said.
“Strong demand, coupled with this staffing shortage, has left many businesses forced to limit operating days and hours in addition to reducing capacity in both food service and lodging. Ending the supplemental $300 FPUC payment will help the industry regain pre-COVID levels. We encourage all Floridians to explore opportunities in Florida hospitality and envision a career with a future. Our industry is looking for our next generation of leaders.”
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Pete D’Abrosca is a contributor at The Florida Capital Star and The Star News Network. Follow Pete on Twitter. Email tips to dabroscareports@gmail.com.