Citation From the May 7, 2021, edition of CNN's Erin Burnett OutFront
ERIN BURNETT (ANCHOR): President Biden today says he does not believe the enhanced unemployment benefits are deterring people from returning to work. Chamber of Commerce, though, disagrees, and they said in part, quote, “The disappointing jobs report makes it clear that paying people not to work is dampening what should be a stronger jobs market. Based on the chamber's analysis, the $300 benefit results in approximately one in four recipients taking home more in unemployment than they are working." And then, Austen, the National Federation of Business says a record high of share of its numbers have job openings that they couldn't fill in April. A record high. This does seem, when you look at it this way, to be a big problem.
AUSTEN GOOLSBEE (FORMER COUNCIL OF ECONOMICS ADVISER): Yes and no. I think the issue of labor shortage, labor scarcity is definitely an issue. The question of, is that entirely or predominantly coming because of unemployment insurance? I think the data is definitely not that clear on that point. If you look at this weird jobs number today or if you look at the mega blockbuster jobs number last month, in both cases, by far the biggest job creation was in leisure and hospitality, which at the least you would not have expected if you thought [unemployment insurance] was the predominant thing. So you've got a lot of other people saying fear of catching the virus in these jobs, where there is a lot of face-to-face activity, so they're demanding a risk premium, let's call it, to wages. And the fact that we have schools shutdown and lack of child care are also things that will lead to shortages of workers and might be more pressing at this moment.
BURNETT: Alright, so those are all really fair and important points. The reality of it is, that the Chamber of Commerce says this and you are saying well, where is the data and I hear you on that, but of course you know, I know, anecdotally --
GOOLSBEE: The only other thing I would say --
BURNETT: Yes, sorry. Go ahead.
GOOLSBEE: The only other thing I would say is that the chamber and the people saying that now have literally been saying that for an entire year. They said it when the federal unemployment top-up was $600 last year. They said that was what was leading unemployment to be high. Looking back, it clearly was not. They clearly were not correct for the year up to now. It may have started now. But, you know, you got to put it into context.
BURNETT: Alright, so here are three other business owners -- and again, I fully acknowledge this is anecdotal. But this is what we are hearing and our reporters are hearing from business owners in different states in this country.