Funny, because you could say the same thing about PPP loans. If we are going to champion capitalism, then what better way to separate the wheat from the chaff during the pandemic than to let only the strongest of companies survive? The welfare swung both ways to the tune of trillions of dollars. Companies got free money, and former employees got free money. Both spent it. Companies enjoyed lower overhead from people working from home and paying less employees and benefits while people got to enjoy more time at home, getting to know their families better, and in the process, realizing that they don't want to waste their time at a job that doesn't pay very well. Then employers wanted their low wage workers to come right back at their beck and call and subject themselves to a work environment that very few employees missed, at all.
My wife worked in the food service industry for almost two decades and all of the "lifers" she knew that were still in food service before the pandemic haven't gone back. They aren't staying home, either. They just changed careers. Turns out that jobs that pay $15 an hour are easy to replace and so they've replaced them. They get to sit in a cubicle or stock grocery shelves rather than run around a restaurant while being an emotional punching bag for miserable customers. Some went on and learned a new skill and actually improved their pay. On the other hand, finding a worker who is willing to work a bad job for $15 an hour is hard to replace. The reality is that restaurant jobs suck and a large chunk of the business depends on these "lifers" who are comfortable with the turnover and continue to accept their lot in life. The pandemic allowed those workers to see otherwise. The financial assistance allowed them to choose otherwise.
The unemployment rate is still slowly trickling back down and is currently only 5.8%, according to the Bureau of Labor Statistics. According to the numerous articles, the restaurant and service industries are still way behind on labor. The reality is that the job market is improving month over month and restaurant/service industries are lagging because their jobs suck and people are actively avoiding them. The teat has little to do with it, in the grand scheme of things.