“South Carolina’s businesses have borne the brunt of the financial impact of the COVID-19 pandemic. Those businesses that have survived — both large and small, and including those in the hospitality, tourism, manufacturing, and healthcare sectors — now face an unprecedented labor shortage,” McMaster wrote in a letter to DEW Executive Director Dan Ellzey.
South Carolina’s unemployment rate got to 12.8% in April of last year. In March, the unemployment rate dropped to 5.1%, below the national rate of 6%.
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McMaster said South Carolina has more than 81,000 available position openings as the economy has reopened and as restrictions have been lifted and the COVID-19 vaccine is being distributed.
“While the federal funds supported our unemployed workers during the peak of COVID-19, we fully agree that reemployment is the best recovery plan for South Carolinians and the economic health of the state,” Ellzey said.
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The pandemic led to a slowdown of the economy and higher unemployment rates. To assist people, the federal government expanded unemployment benefits. When the federal program started early in the pandemic, the bonus was originally $600 a week, given in extension to the state unemployment benefit.
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The federal benefit was dropped to an extra $300 a week for those on unemployment, and the American Rescue Plan, signed by President Joe Biden in March continues the federal $300-a-week unemployment benefit until Sept. 6.
Still, the expansion led to scrutiny that some people would make more while on unemployment than while they worked.
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“What was intended to be a short-term financial assistance for the vulnerable and displaced during the height of the pandemic has turned into a dangerous federal entitlement, incentivizing and paying workers to stay at home rather than encouraging them to return to the workplace,” McMaster wrote.
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On Tuesday, Montana’s Republican Gov. Greg Gianforte also announced plans for his state to withdraw from the federal program.
Sue Berkowitz, the director of the S.C. Appleseed Legal Justice Center, said she was disappointed in McMaster’s decision.
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People may not work because the job they’re qualified for has yet to reopen, they have small children and can’t find daycare, or they’re caring for somebody who cannot be exposed to COVID-19, Berkowitz said.
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“Most people do want to go to work if it’s possible and to just arbitrarily do this as if it’s a punishment is just the wrong message to send to hardworking South Carolinians who are trying to do the best they can and should not be treated like they’re children or they’re cattle,” Berkowitz said. “They just may have reasons they cannot go back to work right now.”
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