Across the state, business owners and industry organizations are heralding Governor Gianforte’s programs aimed at getting Montanans back to work.
The Governor announced two measures this past week to address the state’s severe workforce shortage and incentivize Montanans to reenter the labor force.
The State of Montana will launch a return-to-work bonus program, utilizing federal funds authorized by the American Rescue Plan Act. Return-to-work bonuses will be paid to unemployed individuals who rejoin the labor force and accept and maintain steady employment for at least one month.
The governor also announced that the State of Montana will end its participation in federal pandemic-related unemployment benefit programs and transition to pre-pandemic unemployment insurance (UI) eligibility and benefits by the end of June.
Montana will be the first state in the nation to fully opt out of the federal unemployment benefit programs enacted since the start of the COVID-19 pandemic. What a novel idea, national news media has proclaimed about the Governor’s strategy, paying people to go to work.
Gov. Gianforte announced Montana will offer return-to-work bonus incentives and end federal pandemic-related unemployment benefits on June 27.
Requirements that unemployment insurance claimants actively seek work and be “able and available” for work will be reinstated effective June 27, as well.
“Montana is open for business again, but I hear from too many employers throughout our state who can’t find workers. Nearly every sector in our economy faces a labor shortage,” Gov. Gianforte said.
According to Ronda Wiggers, state director of the National Federation of Independent Business (NFIB) 42 percent of Montana small business owners report job openings thy cannot fill – a 48-year record. “NFIB commends and wholeheartedly supports Gov. Greg Gianforte’s innovative efforts to fill the many employment vacancies in our small businesses.”
The Montana Contractor Association (MCA) also applauded the move. MCA Executive Director David Smith said “The weekly federal benefits have hurt contractors, which are in full throttle for summer work. Contractors will train anyone with a strong work ethic, and they will be making $20/hour with benefits almost immediately. We’re ready to hire today.”
With more than $1 billion in public construction work approved by the 67th Legislature, there is no shortage of work available.
When we bid work now, one of the main risks we have to consider is will we be able to find the people to perform the work,said Hal Fuglevand, General Manager for Knife River in Billings. We have declined to bid some jobs this year because we knew we could not find the people.
“Incentives matter,” Gov. Gianforte said, “and the vast expansion of federal unemployment benefits is now doing more harm than good. We need to incentivize Montanans to reenter the workforce. Our return-to-work bonus and the return to pre-pandemic unemployment programs will help get more Montanans back to work.”
Across Montana, employers are struggle to find workers, particularly in the health care, construction, manufacturing, and hospitality and leisure industries.
Returning to pre-pandemic unemployment eligibility and offering return-to-work incentives will encourage workers to reenter the workforce and help ease a critical labor shortage across Montana.
“Montana’s unemployment rate is at just 3.8 percent – near pre-pandemic lows – and statewide there are record numbers of new job postings each week.
