Psaki suggests understaffed firms ‘pay more wages’ to ‘attract workers’

At a press briefing Thursday, White House press secretary Jen Psaki suggested that companies struggling with a labor shortage, which the Commerce Secretary recently called ” acute ”, could advertise higher salaries to attract potential employees and fill their vacancies.

In response to a reporter question referring to a severely understaffed restaurant owner’s appeal to President Biden at a CNN town hall on Wednesday, Psaki responded, “In some places you may have to pay more wages to attract workers,” echoing the president’s previous comments that this is a “labor market.”

“We have already implemented, and the money has come out, for our restaurant destabilization program, something that was part of the US bailout and has helped hundreds of restaurants across the country stay open, reopen. , and this is the help that came from the US bailout that the president promulgated, ”the press secretary noted when asked what constructive steps the administration was taking to offer relief to companies in difficulty.

Employers across the country have reported that they are ready and willing to hire for vacancies, but cannot seem to identify any candidates to apply. The home help restaurant sectors have faced increasing demand but have not been able to recruit enough human capital to meet it and provide their goods and services.

The Commerce Secretary recently attributed the labor shortage to a “lack of skills”. At the press conference, Psaki did not address the other possible culprit in the imbalance between labor supply and demand: the expansion and extension of unemployment benefits in many states.

Some Republican lawmakers have claimed that the generous social safety net adopted during the pandemic continues to push many Americans into government unemployment rather than re-entering the workforce.

Wages grew at a rapid annual rate of 8.7 percent between March and April, but companies are still struggling to find employees.

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