Is Unemployment Programs Making it Hard for me to Hire?

[MidnightSensi2]

My company is looking for some 12.50 per hour people. Work environment is nice, unemployment in my area I believe is 8%....and I'm having a HARD TIME finding people believe it or not. I've talked to friends also hiring, and they are too.

WHY?!

12.50 is like 24,000 per year. Yeah, not great.

From doing the math, looks like someone on unemployment in my area gets about 375 per week, 275 in cash and 100 in food stamps. Works out to about 19,500 tax free.

If they work for me at 12.50, pay taxes, they make 21,600 (assuming they pay 10% federal tax, we have no state tax, its all property).

So, they can make 19,500 and do nothing or side work, or they can 21,600 and go to work 5 days a week 7 to 3:30.

Am I thinking about this wrong? I know my numbers may be off... but I'm kind of going from memory.

Anyone else seeing this problem or am I thinking about something wrong?

I'M TRYING TO HIRE!!!!! 8% UNEMPLOYMENT AND NO ONE WANTS A JOB?!

 

[adwilk]

Sadly, your numbers look right. You could call your local UEO and let them know you're looking for people. Those people on unemployment can't legally collect benefits if they're turning down work. All depends on how your state tracks it I guess.

But yeah, the person you're looking for is likely a supplemental earner and being able to stay home and make similar money is a no-brainer. What methods are you using to find workers?

 

[Rickster71]

Or you get situations like this also:
Lottery winner on food stamps:
She won $1 million from the Michigan State Lottery this fall, but she is still collecting and using $200 a month in food assistance from the taxpayers

 

[psbfan9]

Where are you????? I'll work for that. I may even be willing to relocate.

 

[lsiberian]

Your rate may be too low for the market in your area. Have you tried hitting up the college campuses?

 

[Midwesthonky]

You are quite correct. We ran into the same problem last year and in 2010. Every time unemployment benefits were extended, one of our warehouse managers would get nervous because about 20 temp employees would walk out. Yes unemployment pays less but you can stay home, sleep in, get drunk or stoned, and not work 40+ hours per week.

The fact is that general labor just does not pay well. At least not well enough to compete against unemployment. Even the possibility of getting hired full time at better pay and benefits isn't enough to over come the draw of hanging at home and collecting unemployment. We've seen it in our industry.

Shoot, we were going crazy for awhile trying to find workers. Need 20 new hires per week and be lucky if you can get 8 to show up on day 1 and maybe have 5 or 6 left by the end of week 2. Yeah, general warehouse work sucks. But if you have zero skills to do anything else...or get better pay... Or can't pass a drug test (seriously, it is a problem).

But for awhile there, Amazon was poaching our employees. Can't blame them as in their spot I'd leave for $2 more per hour. But our labor rates are set by corporate and whatever logic (??) they used.

It got so bad we made some major investments to improve productivity so we wouldn't need so many people. We couldn't get them so we had to figure out how to get it done without them.

 

[tattoo_Dan]

My company is looking for some 12.50 per hour people. Work environment is nice, unemployment in my area I believe is 8%....and I'm having a HARD TIME finding people believe it or not. I've talked to friends also hiring, and they are too.

WHY?!

12.50 is like 24,000 per year. Yeah, not great.

From doing the math, looks like someone on unemployment in my area gets about 375 per week, 275 in cash and 100 in food stamps. Works out to about 19,500 tax free.

If they work for me at 12.50, pay taxes, they make 21,600 (assuming they pay 10% federal tax, we have no state tax, its all property).

So, they can make 19,500 and do nothing or side work, or they can 21,600 and go to work 5 days a week 7 to 3:30.

Am I thinking about this wrong? I know my numbers may be off... but I'm kind of going from memory.

Anyone else seeing this problem or am I thinking about something wrong?

I'M TRYING TO HIRE!!!!! 8% UNEMPLOYMENT AND NO ONE WANTS A JOB?!

all those numbers sound right,

I don't know what the market or job description is there,but different jobs demand different pay rates,


anyway don't forget that unemployment does not last forever,it does run out.



if I needed a job,$12.50 would sound great to me.

 

[adwilk]

anyway don't forget that unemployment does not last forever,it does run out.

Unfortunately, the Federal Government has extended benefits SEVERAL times. An insured worker that would once be eligible for state (MO) maximum benefits would have run out of funds in about 8 months. With the multiple tiers of extended benefits this means that if an insured employee had first filed back in 2009, he/she could still be receiving benefits. These departments are so back-logged there's almost no way to track who's actually looking for and applying for work in accordance with the requirements to actually receive benefits. Managing the situation would cost more than the money they spend on benefits.

You're in Florida, right MS? Get in touch with one of the workcenters... there has to be somebody willing to work for that. Temp agencies are great for filling one position as well.

 

[tattoo_Dan]

Unfortunately, the Federal Government has extended benefits SEVERAL times. An insured worker that would once be eligible for state (MO) maximum benefits would have run out of funds in about 8 months. With the multiple tiers of extended benefits this means that if an insured employee had first filed back in 2009, he/she could still be receiving benefits. These departments are so back-logged there's almost no way to track who's actually looking for and applying for work in accordance with the requirements to actually receive benefits. Managing the situation would cost more than the money they spend on benefits.

You're in Florida, right MS? Get in touch with one of the workcenters... there has to be somebody willing to work for that. Temp agencies are great for filling one position as well.

well,it must be different in California,our broke state and crazy budget cuts sure don't make for long term unemployment,my wife went through that here,and it's been cutoff for her.

 

[Rickster71]

I was talking to a few other electricians last week, and they pretty much corroborated much of what was said above.
Guys want to get paid under the table and collect, or won't work until their benefits run out.

 

[adwilk]

Certainly its up to the states to handle Unemployment Insurance, but extended benefits and even higher weekly benefits have been funded by the Federal Government. Perhaps California didn't want to use the additional resources necessary to process these additional benefits. I certainly don't know. Its actually too bad that those that REALLY need the benefits because they can't find work comparable to what they've done their whole career can't get them when so many people abuse the system. Unfortunately too, its become another entitlement and small drop in the bucket at that. But that topic might not be allowed on these forums.

 

[Lulimet]

What type of job is it that you're paying 12.50 an hour?
Maybe your rate is too low?

 

[tattoo_Dan]

when so many people abuse the system. Unfortunately too, its become another entitlement

yep ! that's where the problem is.

 

[MidnightSensi2]

Sadly, your numbers look right. You could call your local UEO and let them know you're looking for people. Those people on unemployment can't legally collect benefits if they're turning down work. All depends on how your state tracks it I guess.

But yeah, the person you're looking for is likely a supplemental earner and being able to stay home and make similar money is a no-brainer. What methods are you using to find workers?

Depends on the job, but generally Craigslist or Career Builder. Frankly, I've had better success lately with Craigslist.

Your rate may be too low for the market in your area. Have you tried hitting up the college campuses?

We'll 12.50 isn't amazing, but I started here at less than that before college (and I was doing manual labor). I think for the area it's pretty good, I've also checked other listings and we seem to be on the high end for what we're asking for.

Unfortunately, the Federal Government has extended benefits SEVERAL times. An insured worker that would once be eligible for state (MO) maximum benefits would have run out of funds in about 8 months. With the multiple tiers of extended benefits this means that if an insured employee had first filed back in 2009, he/she could still be receiving benefits. These departments are so back-logged there's almost no way to track who's actually looking for and applying for work in accordance with the requirements to actually receive benefits. Managing the situation would cost more than the money they spend on benefits.

You're in Florida, right MS? Get in touch with one of the workcenters... there has to be somebody willing to work for that. Temp agencies are great for filling one position as well.

Yeah, Florida. Workcenters are a good idea.

I was talking to a few other electricians last week, and they pretty much corroborated much of what was said above.
Guys want to get paid under the table and collect, or won't work until their benefits run out.

Yeah, one position I'm looking for is an electrician. I had one come in and say that he wanted to be paid cash for the unemployment. Obviously I walked him out the door. If he'll steal from the government he'll steal from me.

What type of job is it that you're paying 12.50 an hour?
Maybe your rate is too low?

This particular job is a receptionist. Just answer the phones and direct e-mail really. If the person showed potential we'd move them up quickly (i.e. executive assistants get paid better and have interesting adventures) My opinion the real downside of the job is that it isn't action packed, but the lobby is really nice and we don't care if they surf the web during lull times. But, there are lots of people in South Florida with really no formal training, so I'd think we'd get quality responses.


I finally have a few potentials.

 

[MidnightSensi2]

Where are you????? I'll work for that. I may even be willing to relocate.

Send me a PM with and we'll connect. I'm looking for everything from purchasing agents to mechanics to electricians. I don't want to be too specific on here because Audioholics isn't Craigslist, but if anyone is in the area or wants to submit a resume PM me!

 

[lsiberian]

We'll 12.50 isn't amazing, but I started here at less than that before college (and I was doing manual labor). I think for the area it's pretty good, I've also checked other listings and we seem to be on the high end for what we're asking for.

This unemployment situation is something that needs to be addressed. I say putting them to work is the answer. I don't mind a safety net if it requires 40 hours of work giving time off for interviews. I don't understand why these folks can't go do something.

 

[its phillip]

This particular job is a receptionist. Just answer the phones and direct e-mail really. If the person showed potential we'd move them up quickly (i.e. executive assistants get paid better and have interesting adventures) My opinion the real downside of the job is that it isn't action packed, but the lobby is really nice and we don't care if they surf the web during lull times. But, there are lots of people in South Florida with really no formal training, so I'd think we'd get quality responses.

Too bad you aren't in dfw...I know TONS of people who would kill for a job like that

 

[GO-NAD!]

It's the same up here. Many people would rather stay on pogie than accept a job. It's just human nature. The only way around that is to police it more closely and shirkers get their benefits cut. That won't happen...

 

[lsiberian]

Too bad you aren't in dfw...I know TONS of people who would kill for a job like that

If you know any good programmers or graphics people our company needs some quality folks. Most of the resumes we've gotten are sad. One candidate didn't put their full name on it. Another put their location as Texas. I wonder if some folks are just trolling us.

 

[Shock]

I think the main problem is you pretty much can't live a productive life for 24,000 dollars a year.

I wouldn't want to live in a dump and go to a manual labour job 40 hours a week only to scrape by every month with nothing to show for it. When you don't have to do anything for the same situation you don't feel so bad.

$12.50 an hour is a piss poor wage, no matter how you slice it. You really can't live on your own, drive a car, perhaps pay a student loan, eat actual food, pay your bills and gas with $12.50.

It's the same up here. Many people would rather stay on pogie than accept a job. It's just human nature. The only way around that is to police it more closely and shirkers get their benefits cut. That won't happen...

When I moved out to Moncton N.B. in June of last year I didn't know that the provincial government wanted to rape me at every opportunity. I'm not surprised people out here take advantage of unemployment. If I could milk the system as badly as it hurts workers like myself I would. For example, the cost of living out here is higher than I was paying in Guelph Ontario, and is higher than my sister pays in Toronto. Luckily I have a job that pays decent enough for what I do. I honestly don't know how anyone making less than 15 dollars an hour lives out here.