LOBBY APPLAUDS PROPOSED
LEGISLATION TO ELIMINATE
ENHANCED UNEMPLOYMENT BENEFITS
OF AN EXTRA $300 PER WEEK AND
THE MOVE THAT REINSTATES TD WORK
SEARCH REQUIREMENT TO RECEIVE
BENEFITS.
THAT TAKES EFFECT SUNDAY.
THE WISCONSIN MANUFACTURERS AND
COMMERCE SAYS THERE IS A CRISIS
LEVEL WORKFORCE SHORTAGE AND
PANDEMIC-RELATED POLICIES CREATE
A DISINCENTIVE TO WORK.
WHERE HAVE ALL THE WORKERS GONE
AND WHAT WILL BRING THEM BACK?
FOR ANSWERS TO THESE QUESTIONS
AND MORE, WE TURN TO THE
WISCONSIN DEPARTMENT OF
WORKFORCE DEVELOPMENT CHIEF
ECONOMIST DENNIS WINTERS.
THANKS VERY MUCH FOR BEING HERE.
>> GOOD.
GLAD TO BE HERE.
>> THE SO IN YOUR ESTIMATION ARE
ENHANCED UNEMPLOYMENT BENEFITS
KEEPING PEOPLE AT HOME AND OUT
OF THE WORKFORCE?
>> WELL, I DON'T THINK THAT'S
THE PRELIMINARY REASON OR THE
PRIMARY REASON THAT WE ARE
SEEING, YOU KNOW, SHORTAGE OF
WORKERS THROUGH THE STATE.
IT MAY HAVE SOME EFFECT NOW THAT
THE ECONOMY IS OPENING.
THERE HAS BEEN SOME STUDIES THAT
HAVE SHOWN THERE IS SOME
DISINCENTIVE DEPENDING ON THE
GAP BETWEEN WHAT THEY ARE
GETTING IN BENEFITS AND WHAT
THEY NORMALLY MAKE IN THEIR
SALARIES.
BUT THAT'S NOT WIDESPREAD AT
THIS POINT.
BUT AS WE TRANSMISSION TO A MORE
OPEN ECONOMY, YEAH, IT MIGHT BE
A LITTLE DISINCENTIVE NOW THAT
THERE ARE JOBS TO GO BACK TO,
SURE.
>> YOU'RE SAYING IT'S NOT THE
PRIMARY REASON, THOUGH.
WHAT IS?
>> WELL, THE PRIMARY REASON AS
WE TALKED ABOUT FOR SOME TIME IS
THERE IS JUST A SHORTAGE OF
BODIES, A SHORTAGE OF CITIZENS
IN THE STATE OF WISCONSIN TO
FILL ALL THESE JOBS.
WE HAD THE SAME SITUATION THAT
WE'RE HEARING ABOUT BEFORE THE
GREAT RECESSION BACK IN '07.
THAT LET SOME OF THE PRESSURE
OUT OF THE POT, RIGHT?
AS SOON AS WE TURNED AROUND FROM
THERE, BUSINESSES WERE
COMPLAINING THAT THEY COULDN'T
FIND ENOUGH WORKERS THEN.
THIS IS THE SAME SITUATION.
THE ONLY THING THAT'S HAPPENED
IS THE BABYBOOMERS HAVE GOTTEN
10, 11 YEARS OLDER THROUGH THE
GREAT RECESSION AND ARE RETIRING
OUT OF THE WORKFORCE.
>> AND SO WHAT NEEDS TO BE DONE?
I KNOW THAT EMPLOYERS -- YOU SEE
IT KIND OF ALL OVER THE PLACE.
THEY'RE KIND OF BOOSTING THEIR
LOWER LEVEL WAGES SOME.
WHAT NEEDS TO BE DONE?
IS IT ABOUT BOOSTING WAGES AND
OTHER THINGS THAT THEY CAN DO TO
ATTRACT EMPLOYEES?
>> WELL, PART OF IT WILL BE
BOOSTING WAGES FOR ANY
PARTICULAR FIRM.
BUT IF OVERALL YOU JUST HAVE A
SHORTAGE OF WORKERS, AT SOME
POINT HIGHER WAGES AREN'T GOING
TO MATTER.
YOU'RE JUST GOING TO RUN OUT OF
SUPPLY IS KIND OF WHAT WE'RE
DOING.
SO THAT'S THE OTHER INCENTIVES
TO GET MORE BODIES INTO THE
WORKFORCE AND THEY MAY HAVE TO
COME FROM OTHER PLACES.
>> LIKE?
>> WELL, THEY CAN COME FROM
NEIGHBORING STATES IF IN FACT
THEY LET US TAKE ALL THEIR
WORKERS, SO THERE WILL BE
COMPETITION AMONG OTHER STATES
DOING THE SAME THING.
ANOTHER SOLUTION IS FROM OTHER
COUNTRIES AND IMMIGRATION.
THE U.S. IS STILL A PLACE THAT
PEOPLE WANT TO COME TO, SO
THAT'S ONE SOLUTION FOR THE
SUPPLY.
>> SO HOW DOES A WORKER SHORTAGE
IN THIS WAY AFFECT WISCONSIN'S
ECONOMY?
>> WELL, AS YOU HAVE HEARD, IT
AFFECTS IN THE SENSE WE CAN'T --
A LOT OF COMPANIES CANNOT
PRODUCE THE ORDERS THAT THEY
HAVE COMING INTO THEIR SHOPS.
SO THAT DAMPENS HOW MUCH GOODS
AND SERVICES ARE BEING PROVIDED
AND SLOWS ECONOMIC GROWTH.
THE THING WE HAVE -- WE HAVE TO
RAISE PRODUCTIVITY, RIGHT, OF
THE WORKERS AND THE TECHNOLOGY
AND MATCH THEM TO BE ABLE TO
KEEP GROWING THE ECONOMY.
>> AND SO IT SOUNDS LIKE AN
INTRACTABLE PROBLEM, RIGHT,
BECAUSE IT'S JUST FRANKLY A
SHORTAGE OF, AS YOU SAID,
BODIES.
BUT IS THERE -- ARE THERE SOME
SOLUTIONS THAT JUMP OUT AT YOU
AT THIS TIME WHEN PEOPLE ARE
CALLING IT A CRISIS?
>> WELL, YEAH.
SOME SOLUTIONS, AGAIN, ARE
IMMIGRATION.
FOR EXAMPLE, IN THE HOSPITALITY
INDUSTRY, RIGHT, THE VISAS THAT
THEY USE TO BRING IN SUMMER
HELP, PARTICULARLY RIGHT AROUND
PLACES LIKE THE DELLS IN
WISCONSIN.
THERE'S LIMITS THERE ABOUT HOW
MANY PEOPLE THEY ARE ALLOWED TO
BRING IN.
SO THAT'S ONE SOLUTION.
YOU COULD OPEN SOME OF THAT UP.
ANOTHER SOLUTION IS IMMIGRATION
AS A WHOLE AND BRINGING IN
WORKERS FROM ALL OVER THE WORLD.
THE OTHER RESOURCE I SEE THAT'S
UNTAPPED THAT WE NEED TO TAP
INTO IS THE CHRONICALLY
UNEMPLOYED, THOSE THAT HAVE A
NUMBER OF BARRIERS.
EITHER IT'S TRANSPORTATION, IT'S
DAY CARE, IT'S SKILL LEVELS.
THERE'S A SEGMENT OF THAT THAT
WE HAVE TO TAP INTO IN THIS
STATE.
AND THE STATE'S DOING A LOT IN
TRAINING PROGRAMS TO TRY TO GET
THOSE PEOPLE UP TO SPEED.
BUT IF YOUR WORKFORCE IS
FLATTENING OUT ON TOP, YOU'VE
GOT TO GO TO THE SUPPLY THAT'S
UNTAPPED WITHIN THE STATE.
>> ALL RIGHT.
WE LEAVE IT THERE.
LOTS MORE TO TALK ABOUT ON THIS,
THOUGH.