Michael Alleruzo | michaelalleruzzo.com
Michael Alleruzo | michaelalleruzzo.com
Unemployment claims in Pennsylvania have increased sharply, from 29,589 to 44,112, for the week ending June 19.
That 49% increase gives the state the distinction of being the top state for new unemployment claims, according to a report from The Times.
That is not the only issue the commonwealth faces when it comes to the job market. A new report by the Pennsylvania Economy League of Greater Pittsburgh shows a nearly 5% drop in Southwestern Pennsylvania’s labor force between January 2020 and May 2021.
This more than doubled the national labor force's decline of 2.2%.
Greater Pittsburgh's pandemic recovery is concerning, with a loss of 78,000 workers between May 2019 and May 2021. Only Cleveland and Boston rank lower in terms of pandemic recovery, according to the June 2021 report by PELGP.
COVID-19 restrictions enacted by the government have meant that the Pittsburgh region has experienced a far slower than average economic recovery, especially in mining and logging, food and beverage services, accommodations, manufacturing and leisure and hospitality,
Fayette County seems to have been hit the hardest, with the highest average unemployment rate in the region of 9.2%. In contrast, the entire region’s unemployment rate is 6.8%, which remains above the 6.1% national average.
Michael Alleruzo, a professor of business management at St. Joseph’s University in Philadelphia, said that as a business consultant he has seen how many Pennsylvanians have been disincentivized from returning to work due to government assistance.
“I think the government needs to end the business of the stimulus relief checks,” Alleruzo said. “The old expression, ‘The road to hell was paved with good intentions’ – I think that’s what happened with the government.
“The government needs to back off and say, ‘Go back to work,’” he continued. “As we move toward herd immunity, I think the government is going to very quickly cut this off and say, ‘We’re done with this.’ The government stimulus checks are a fine Band-Aid, but they’re not a purpose, and purpose is what really drives us.”
According to research by the American Action Forum, 40% of Pennsylvania workers can receive more money through unemployment than working when factoring in the $300 federal bonus.
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