Why GOP states had the right to reject Biden’s unemployment handouts: 26 states ended $300-a-week payouts, three times more people back to work, new figures show
- US states saw a big jump in local labor supply in June to end federal unemployment benefits early
- 26 states meant to cut $300 weekly supplement in early September
- States start cutting benefits after employers have trouble hiring
- But some economists argue that people need benefits because of the difficulties of caring for children or the fear of contracting COVID.
US states that saw a big jump in local labor supply in June to end federal unemployment benefits early were planning to maintain a $300 weekly supplement until early September, new data shows, although there was no clear indication. , there was much more recruitment than this.
State-level jobs data released earlier this month showed an additional 174,000 people joined the labor force by taking jobs or starting a job search in June in 26 states, compared to 47,000 in other states.
Citing workforce shortages, those 26 states eliminated and twice extended at least one of the three pandemic unemployment insurance programs enacted by Congress in March 2020. The Biden administration has said that governors can restart programs if they wish.
While the data may indicate that the withdrawal of benefits is having some effect as intended by governors, who have cut stipends, making more people seek employment, the number is small in the national labor force of 161 million. And that comes with caution. Note: Job benefits were broadly similar in both groups of states.
This may be the result of data lagging, as the survey that produces national and state job projections ended in June, before the benefits actually ended in most states, which ended them early. were planning to do.
But it could also mean that the process of matching employers and employees remains sluggish in the face of the large number of posted job openings and the large number of unemployed – a fact that some economists say benefits Deductions can only reduce the family income.
US states to end federal unemployment benefits early saw a huge jump in local labor supply in June – people queue outside a newly reopened career center for in-person appointments in Louisville
‘We find only a modest effect of reduction in profit on labor supply and employment’, wrote Gregory Dako, chief US economist at Oxford Economics. ‘Thus, profit margins can do more bad on the personal income bookkeeping than good on the employment ledger of the economy.’
Economists at Goldman Sachs have found little evidence so far that the termination of benefits in a group of mostly Republican-led states was having a significant impact on labor markets remains an enigma to the Federal Reserve and other officials. .
Ongoing claims for unemployment insurance are rapidly declining across states, with benefits running out, a sign that people are moving into jobs.
But based on available data, ‘On the net … profit termination did not boost June employment,’ Goldman Sachs economist Ronnie Walker wrote recently. However, the full impact of the policy change will not be ‘fully visible’ until state-level jobs data for July is released in mid-August.
At that point, the additional federal unemployment benefit would be nearing its national expiration. Coupled with the reopening of schools, it is expected to give a clearer view of how quickly US employment can regain the jobs lost at the start of the coronavirus pandemic in the spring of 2020.
Workers in Indiana, Maryland, Texas, and Ohio sued for early termination of jobless benefits in their states.
Judges in Maryland and Indiana made decisions to temporarily reinstate federal benefits.
In addition to a weekly supplement of $300, federal unemployment programs provide benefits to freelancers, the self-employed, independent contractors and some people affected by the coronavirus and those who have exhausted their regular state benefits.
According to The Century Foundation, some 4.1 million will be affected by early benefits by US states.
Some economists argue that federal benefits remain an economic lifeline, that many unemployed Americans want to return to work but aren’t able to because they can’t access child care or are more likely to contract COVID-19. afraid of.
But several states decided to phase out the benefits after some business owners complained of being unable to fill jobs.
26 states to end additional unemployment benefits early
More than two dozen states plan to eliminate or eliminate the additional $300 in federal unemployment aid many Americans received to help weather the COVID-19 pandemic.
The funding was renewed in a US$1.9 trillion rescue plan passed in March.
But some states have decided to end benefits early because some business owners complain they are trying to fill jobs.
Here are the states and the date the benefits will expire:
Alaska June 12
Missouri June 12
Mississippi June 12
Iowa June 12
Alabama June 19
Idaho June 19
*Indiana June 19
Nebraska June 19
New Hampshire June 19
North Dakota June 19
West Virginia June 19
Wyoming June 19
Arkansas June 26
Florida June 26
Georgia June 26
Montana June 26
Ohio June 26
Oklahoma June 26
South Carolina June 26
South Dakota June 26
Texas June 26
Utah June 26
Maryland July 3
Tennessee July 3
Arizona July 10
Louisiana August 3