By Allison Perrine
MONMOUTH COUNTY – For over a year, a federal pandemic unemployment program served an enticing offer to those who lost their jobs amid the COVID-19 pandemic: an extra $300 a week on top of the regular unemployment pay.
As a result, some companies found themselves struggling to find new hires willing to work for as much as, or potentially less than, they could make on unemployment. It’s touched professions across the board but has been particularly impactful to small businesses and the food service industry.
According to Chef David Burke, who owns two local restaurants, Red Horse By David Burke in Rumson and Drifthouse By David Burke in Sea Bright, when workers are in demand, “they demand more money,” he said. There’s been a “25 to 30 percent increase in wages to compete for good people.”
That’s not the only problem, according to Burke. “The lack of staff amounts to overworking the salaried employees and owners due to shortage,” and forcing early closings or even closing for two days a week.
It’s become so dire that the state Department of Labor (NJDOL) rolled out a Return and Earn program this week, offering a $500 incentive to unemployed individuals who reenter the workforce.
“Throughout this pandemic, I have heard much about the issues facing small businesses and the dedicated, hard-working men and women who enable their success,” said Gov. Phil Murphy in a statement Monday when the program was announced. “Our Administration is committed to assist businesses in hiring workers, while providing benefits to those entering and re-entering the workforce that will set them up for success in their new jobs and their future careers. This program will help both businesses and their workers, and is yet another step that we have taken to boost our economy.”
Facilitated by the NJDOL’s Business Support Unit and funded by American Rescue Plan Act monies, the program will also provide wage reimbursement support to state employers who hire eligible applicants with “identifiable skills gaps,” the release states. Employers will later be reimbursed for 50 percent of the wages paid for regular hours worked during the training period, with a cap of $10,000 per Return and Earn employee.
“Our small business community has been hit hard over the last 18 months, and now, as things begin to return to normal, worker shortages are threatening their ability to meet the newfound demand,” said Sen. Nilsa Cruz-Perez, chair of the Senate Economic Growth Committee. “This new program will benefit both small businesses in need of new employees and workers looking to return to the workforce in a higher-skill position. Providing wage replacements will remove the burden of training new employees while also developing our state’s talent pool at a time we need it most.”
Eligible applicants include private and nonprofit employers with up to 100 full-time employees, according to the state. Individuals must be New Jersey residents who work a minimum of 32 hours per week; those with seasonal, part-time, commission-based or 1099 positions are not eligible. “At the end of day, I’m a firm believer – if you’re able to work, you should work,” said Monmouth County Commissioner Director Thomas A. Arnone Sept. 21 at this year’s end-of-summer tourism season press conference. “There’s jobs available and I know there’s jobs available because I hear it all the time. We need to fill those jobs. It’s a trickle-down effect.”
He added that during a recent weekend, patrons “could not get into a restaurant in Monmouth County” with less than “a two-hour wait.” Patrons have been considerate of the delays, he noted, but “it’s been challenging for the businesses.”
The article originally appeared in the September 30 – October 6, 2021 print edition of The Two River Times.
