What to do About the Labor Shortage Across Lakes Area

DETROIT LAKES (KDLM) – A labor shortage is affecting the Lakes Area, the state of Minnesota and the nation.

The problem isn’t there aren’t enough jobs, the problem is that expanded benefits are incentivizing workers to stay at home rather return to the workplace. According to The U.S. Chamber of Commerce, “the $300 weekly supplemental unemployment benefit results in approximately one in four recipients taking home more in unemployment than they earned working.”

In the last few weeks, more than 20 states have announced they would end Federal pandemic unemployment benefits before they’re scheduled to end in September. Minnesota is facing a significant shortage in workers, however the state has no plans to end the Federal pandemic benefits.

Senator Kent Eken says there is a great need for employees right now, but “I don’t know if there is going to be progress on the issue of addressing the unemployment, I do agree there needs to be some balance…we don’t want to be disincentivizing work.”

Businesses across the state are having to make adjustments due to being short-staffed including reducing services and hours. Organizations are pleading with the Governor to take further action in creating accountability measures for unemployment beneficiaries, specifically for individuals who refuse a suitable offer of employment or who skip interviews.