‘Nearly beyond dispute that supplemental unemployment benefits are reducing employment’
The many frustrated employers across the nation who are shorthanded because of the federal government’s continuing payments to people who lost their jobs during the COVID pandemic will not be surprised by a new study.
The study published by the fiscally-conservative Committee to Unleash Prosperity found that unnemployed households can earn a total of $25 per hour on welfare in 21 states.
The Foundation for Economic Freedom, which spotlighted the study, said it “sheds light on the causes of our current economic purgatory.”
There are 9.3 million unfilled job openings at the moment while millions of Americans remain on unemployment benefits and millions more opt out of the labor force entirely.
In March 2020, the federal government passed a “temporary” $600 per week supplement on top of existing state-level unemployment payouts. The supplement was reduced to $300 per week in President Biden’s COVID-19 legislation.
But, significantly, it was extended through September 2021.
FEE noted that many conservative-leaning states have suspended the supplements. But in dozens of states led by Democratic governors the money is set to continue through the summer.
Combining the supplements with other welfare programs, households can receive the equivalent of $25 per hour, assuming a 40-hour work week, without either adult working.