Will unemployment benefits keep people from returning to work as NC reopens?

As North Carolina continues to ease pandemic-related restrictions and slowly resume business and social activities, many unemployed workers have a decision to make about returning to work.

Research from the University of Wisconsin-Madison estimates as many as 40 percent of those collecting unemployment insurance in North Carolina are making more money now compared with when they were working.

People who qualify for unemployment in North Carolina can qualify for up to $350 a week for the next 25 weeks, as well as a $600 per week extra in federal payments through July. Self-employed individuals and contract workers who are getting unemployment through the CARES Act can receive up to $350 a week for 39 weeks, as well as the $600 per week through July.

That amounts to $950 a week for the next two months – $45 short of the average weekly salary in North Carolina.

People who earn a minimum wage bring in only $290 a week if they work 40 hours. Of course, their unemployment benefits would be less as well – $145 a week from the state rather than the $350 maximum.

Hairstylist Annette Holcomb said she can’t wait to get back to work after struggling for nearly two months to get unemployment help.

"It’s been very frustrating," Holcomb said. "There’s people like me that need their unemployment that’s not getting it, that has no other avenue."

While she struggles to get her unemployment benefits, she said she has heard stories from friends about others' experiences.

"I know people that’s like that saying. 'Oh yeah, I get more money staying at home then I did working every day,'" she said.

"There's a ton of people, including my husband, who have not gotten one iota of a dime, while some people are making a killing by getting more than when they were working," said Debbie Holt, owner of Clyde Cooper’s Barbecue in Raleigh.

Holt said some business owners will have a hard time rehiring workers once businesses can reopen.

"They’re going to keep on collecting [unemployment] as long as they can collect it, and it think that’s going to be rough for businesses," she said.

Holt said she expects most of her employees to return, but the federal Bureau of Labor Statistics reports that many workers at fast food restaurants, amusement parks and retail stores stand to get more in relief than their typical paycheck.

Holt and Holcomb call it a broken system.

"That’s where unemployment has to draw the line," Holcomb said.

North Carolina Restaurant and Lodging Association President and Chief Executive Lynn Minges said her group isn't aware of any restaurants that are having trouble rehiring employees.

"We do anticipate that some employers may have difficulty rehiring during COVID-19 for a variety of reasons, including access to unemployment benefits, childcare issues and general health concerns," Minges said in a statement to WRAL News.

As Congress mulls the next stimulus package for the coronavirus response, extending the $600 weekly federal benefit will likely become a hotly debated topic.