Business

Businesses Are Offering Applicants Incentives Amid Worker Shortage

A national worker shortage has businesses thinking of new ways to entice applicants.

Businesses Are Offering Applicants Incentives Amid Worker Shortage
Keith Srakocic / AP

Businesses across the country are reopening, seeing customers coming back. As for workers, not so much. 

A national worker shortage is driving businesses to think of new ways to entice people to apply for work: offering additional benefits like sign-on bonuses, higher starting wages and even free community college. 

Finding workers has been a struggle. The Labor Department says the U.S. only added 266,000 jobs in the month of April with the unemployment rate staying at around 6% as hiring slows down in the country. 

Businesses are doing everything they can to hire and keep workers but are falling short.   

"I bet you we've hired 10 people, and then they just don't come to work," restaurant owner Shawn Thatcher said. 

There are many reasons, experts say, for why this is happening. Some people might have switched to other industries to survive the pandemic, others are staying home to watch their kids who are learning virtually or because they’re afraid of catching COVID. 

Frustrated employers are blaming the government as they find applicants are collecting more through enhanced unemployment benefits. 

"We're doing everything we can to get people back in, but when you're competing with the federal government, there’s not much you can do," restaurant owner Scott Sims said.