Transcript for American businesses continue to struggle
And as a general Levin's job postings on hiring web site indeed are up 29%. So why are so many positions going unfilled. Economist at indeed hiring lab analysts bit comical an economist at the Economic Policy Institute Ben zipper. Are here to help us break this all down thank you both for joining us. Thanks for having me. And aluminum or do you a dozen states have now ended unemployment benefits prematurely several more. Are set to follow suit in the coming weeks how are those extra benefits contributing to this worker shortage. So I think there are in trouble being better acting labor supply right now. That certainly you know there are the federal unemployment benefits that we can't forget that we are still and a hand that act. I want to be dumb and the pandemic everybody wants to be done at the pandemic but we are still and it. They're also childcare challenge does. And together and though street east at the fact that we're still on a pandemic. Child care challenges and federal you liked come together on an all live different pieces and our. The and that that may be contributing to what we're seeing on the labor supply side I will note that and state or federal benefit benefits are ending eminently. Job search activity on indeed have not bite relative to the national trench and that does push back on the idea that federal. Benefits aren't us all we know what we're seeing right now. And devastation that are out they're cutting these benefits early there arguing that the economy's improving. As we just heard a lot of companies big and small looking for workers so this extra money. Is no longer lead needed people can go find work you've said that's that's not quite accurate why. Yeah that's not accurate and I think I would also plays a little less emphasis on unemployment benefits being. The problem you know in the states that have decided. To prematurely. And possibly illegally. Ends unemployment dense benefits early so it's about 25 states like you sent a dozen states thirty diamond. Those sun those states go swore they ended benefits. You know this day actually you know had her recovered employment by about 70% of their short ball but they still up about 30% of you know adapting got us there are a lot of jobs. Bomb. That you know are out there but you know vaccine headed. Hesitancy. And you know basically that a big shock of the pandemic is still gonna linger and you know cause job growth to be a little slow slower than we would like. Armed in the coming months. And Allen and at what industries are looking to hire right now angry Sarah burst people see are still making job cuts are at the very least stagnant. So on Indian we're seeing planning a sector differentiation. For example production and manufacturing being absent June 11 does that 76%. Compared to its pre pandemic a Zion. Loading and stopping ends up as well. And I penny characterize those as sectors that are. They don't making goods moving goods at the other end of the scale we have sports related chops. Which are up only 2.2 percent compared to their pre and then he'd be fine and one that still does not cast a pandemic is fine hospitality and our Islamic outline I expect you only see. No really fully recover and get those double digit is once we have business travel and leisure travel slowly her cup. Our an average year employers complaining about how hard it is to find work or kind of incentives are some of them coming up wet then are you seeing any patterns where it's working. Adam last Friday a four point 1% of job postings on indeed our average typing hiring incentives. Like signing bonus says retention bonds and cash and sentenced to prison contacts. That is more than doubled compared to last July so employers are really looking to create an imminent and just signed different ways to attract job seekers and that is out there notice saying because job searches or hiring incentives. Are out a 130. We're percent compared to this Jayne. And bandits did this may sound dumb but got maybe one of the issues this is did the employers are. Offering enough money if people would prefer to get paid by the government rather than employers but I know that the Economic Policy Institute where you work. We saw this report you put together about the benefits of raising the minimum wage saying that more than two out of five child care workers for example. Would make more money with a fifteen dollar national minimum wage. In 20/20 five but. What about the parents that can't afford to pay that stay out of work force instead is that an issue that might contribute to. Less people going back to work fewer people you. Yeah I think all of those issues are relevant in particular you know in the sectors that are claiming that they're having the hardest time. You know finding people to work. They are actually like leisure and hospitality restaurant they actually are seeing very fast employment growth about three quarters of all jobs created and last worked for taken in the last down two months we're in leisure and hospitality. At the same time one of the things that's holding. You know further job growth pact is the very low wages are paying it is true that employers are thinking. Very creatively about higher how to hire workers on one thing that they're not doing is. You don't that we don't have a lot of evidence that they're doing is that there they're not actually raising hourly wage is so much that we actually see a very clearly in the aggregate data in fact the Atlanta fed puts out low wage tracker and it doesn't seem to show you know kind of like an overall acceleration. In wage growth people who minority have jobs so you know that in my mind is you know signal that we're still kind of in this. You know reality nations struggle the pandemic where you know were finally. Able you know with enough vaccinations kind of you know so our fight in us support security and people are you know looking for the right kinds of jobs that had taken number one's arm before we actually see you know employment levels. You know closer supreme endemic levels. I'm an economist and Elizabeth and Ben zipper we appreciate your time today thank you. Thanks for having me.
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