North Little Rock Times

The extra unemployment padding from the federal government has come to an end in Arkansas, and small business owners across the state are poised to see if the masses come back to work. 

Gov. Asa Hutchinson opted out of the benefits extension in early May, and as of June 26 the $300 federal unemployment increase from the COVID-19 pandemic has ended. Although some businesses are already seeing the applications roll in, others are still waiting, hopeful that enough hirable applicants will come through the door to re-staff to pre-pandemic levels. 

"I have not had any increase in applications as of yet," Dillon Garcia, general manager and co-owner of The Pizzeria in the Heights in Little Rock, told North Little Rock News. 

Before February 2020, Garcia's business usually staffed 20-24 people at any given time. Currently, the pizzeria has 10 people on staff. 

"Our issue wasn’t in getting applicants or hiring people in general," Garcia said of finding employees before the pandemic. "But we struggled to find quality workers that had a desire to learn and grow in the industry."

More than half of the states have opted out of the federal unemployment aid boost, according to Fox Business. Eight states stopped receiving the benefits the week before Arkansas made the official change.

Garcia said he isn't sure what direct impact the unemployment bonuses had on his business and staffing specifically, but that the added benefits, while only one of a multitude of applicable factors, had an undeniable effect on the workforce.

"[The benefits] have allowed some people to make ends meet, even if only barely, without returning to work," he said. 

With takeout and delivery such easy adaptions, The Pizzeria in the Heights was fortunate to remain open throughout the pandemic and never lay off any employees solely due to COVID-19. 

"We never let any staff go due to COVID alone. Some staff quit on their own, and others were terminated with cause for unrelated reasons," Garcia said. ''All the the staff currently here that were hired pre-COVID remained employed the entire time."

The labor shortage is so severe that Garcia has had to step into other roles in the restaurant to keep things operating. 

"Most nights I am working in the kitchen, as we only have half the kitchen staff that would be necessary to be fully staffed," the co-owner said. "We have also closed two nights a week so that the staff we do have does not get burnt out, and we are all still able to have an appropriate amount of time off to keep our sanity."

Is it only the service industry hurting for a revitalized workforce? 

Goodwill Industries career services program director Tammy Wheaton recently told KATV she has seen an increase in Arkansans looking to re-enter the workforce. This uptick in job seekers taking advantage of the Goodwill Industries program rose due to the termination of federal unemployment benefits, Wheaton said.

Sara Lusher, owner of Emelia’s On Dickson in Fayetteville, has had some luck. She recently told KFSM that she is grateful that the extra unemployment benefits are ending because it has prompted an increase in applications that has resulted in two new hires. Lusher said the past few months have been “horrible” and that she was forced to serve all her tables by herself.

Garcia said he's been too focused on his own establishment to notice how other businesses are faring. 

"I know many businesses all over did not make it through at a great loss to the communities they serve," he said. 

The pizzeria manager feels that restaurants get a bad rap in terms of employment retention and opportunities. 

"We see so many people criticizing restaurants, saying that no one wants to come to work for minimum wage, sporadic hours and no opportunity for advancement," Garcia said. "But we are currently starting cooks with experience well above minimum wage, offering a set schedule, and we’ve only ever promoted management from within the company with a current need to do so."

The Pizzeria in the Heights is hiring, and Garcia hopes to be fully staffed soon to see how it improves the restaurant's revenue. 

"We do feel busy again, but I would not say we are at pre-COVID levels of revenue, Garcia said. "This could be due in part to not having the workforce necessary to keep up with the traffic we’re getting in, so we are unable to produce, offer, and advertise many of the things we used to do pre-COVID."