Walmart has announced bonuses and raises for its warehouse staff to discourage voluntary layoffs and vacations following the extended downturn caused by the recent spike of COVID-19 cases, which created distortions in the labor market over the last few weeks.
The Wall Street Journal reports:
The majority of Walmart’s 190 U.S. warehouses are offering the weekly bonus or pay raises. The bonuses and raises vary by location and job type, according to a person familiar with the situation.
Some workers have been offered $1,000 over four weeks for not skipping any scheduled shifts during the second half of the summer. Last week, some workers were also offered temporary pay raises of several dollars an hour through January 2022, said this person.
Several economists and legislators are concerned that the federal government’s enhanced unemployment insurance, which President Biden’s $1.9 trillion American Rescue Plan includes for those who have been unemployed through September, encourages individuals to remain unemployed rather than go back to work.
In a recent Morning Consult poll of adults who have recently lost their jobs, 1.8 million said they have rejected job offers because they receive enough money from unemployment insurance without having to work.
The Federal Reserve claimed that the increased wages were one of the reasons for the current labor shortages.
With economic activity rebounding, labor demand rose briskly in the spring, while the supply of labor struggled to keep up. Employers reported widespread hiring difficulties, job openings jumped to about 30 percent above the average level for 2019, and the ratio of job openings to job seekers surged… enhanced unemployment benefits have allowed potential workers to be more selective and reduce the intensity of their job search.
But the truth of the matter was confirmed by Rep. Kevin Brady (R-TX) — the Ranking Member of the House Ways and Means Committee — said in a recent interview that due to President Biden’s policies that labor force participation has steadily declined.
“The labor force participation rate, that key indicator — it’s just stuck at a very low rate,” he said. “It hasn’t budged in six months under President Biden. Without those workers returning, we’re gonna continue to see those higher prices and those slower deliveries in a major way.”