YOU GET MORE OF WHAT YOU SUBSIDIZE: How Mississippi Flipped the Script on the Labor Shortage.
In early 2021, Mississippi faced the worst labor shortage in state history. By late spring, the situation had only worsened.
There were a record-high 84,000 jobs open throughout the state — more open jobs than people actually looking for work. There were still nearly 80,000 Mississippians collecting unemployment benefits — more than 10 times as many than before the pandemic struck. And Mississippi businesses desperately needed workers.
The cause of this was simple: Federal unemployment expansions and bonuses were paying people more money to stay at home than they could make working. The solution to these woes plaguing our state was also simple. Governor Tate Reeves saw the need for swift action and, in June, Mississippi became one of the first states nationwide to opt out of these expansions and bonuses months before they were set to expire.
The results have been tremendous.
Unexpectedly.