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Federal pandemic funds end, but could be silver lining for businesses needing employees

Restaurants, businesses desperate for workers could see a surge in applications

STOCKTON, Calif. — Nearly 9 million people that relied on federal unemployment relief money will no longer receive it. On Monday, enhanced federal unemployment benefits, including $300 weekly bonus checks, expired in California.

The benefits were enacted last year under the Federal Cares Act signed by former President Donald Trump. The boost was originally $600 and was extended twice.

Other enhanced benefits during the pandemic, such as extended benefit programs and coverage for people who don't normally qualify also expired. It  impacts 2.2 million people in California.

However, the end of the benefits could be a silver lining for restaurants and businesses desperate to fill positions.

When California reopened in June, the iconic Chuck's restaurant on Pacific Avenue in Stockton had lost a third of their workers.

Owner Steve Grant said now he is fully staffed, but noted that about half of his workers have little or no experience.

"So we have to train them. It takes time, money and you don't have that super girl that waits, comes up, waits on ya, and says, 'Hey, I'll have the same thing I did last time,' you know? They're working hard and trying to learn," Grant said.

Employee Mark Sanford is thrilled to get a paycheck again as a cook.

When he lost his cook job during the statewide shutdown, he hustled by cleaning up backyards and not taking any unemployment.

"I had to do other things, you know, trying to make money. There were no cooking jobs," Sanford said. "I love being back to work. I love being back in the kitchen. Nothing else I like doing as much."

As restaurants and businesses have reopened, the unemployment rate is steadily dropping.

In California, July 2020, the unemployment rate was 13.2%. For July this year, the rate dropped to 7.6%.

The improving unemployment numbers bode well for businesses struggling to find seasoned employees.

With federal pandemic funds going away, it might also encourage the unemployed to apply for jobs.

"That's the reason why I'm working because not enough cooks," said Grant.

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