Cutting off unemployment benefits doesn't increase turnout of Americans looking for work

[FT-02 Senator A.F.E. 🇵🇸🤝🇺🇸🤝🇺🇦]

INDIANAPOLIS (AP) — Earlier this year, an insistent cry arose from business leaders and Republican governors: Cut off a $300-a-week federal supplement for unemployed Americans. Many people, they argued, would then come off the sidelines and take the millions of jobs that employers were desperate to fill.

Yet three months after half the states began ending that federal payment, there’s been no significant influx of job seekers.

In states that cut off the $300 check, the workforce — the number of people who either have a job or are looking for one — has risen no more than it has in the states that maintained the payment. That federal aid, along with two jobless aid programs that served gig workers and the long-term unemployed, ended nationally Sept. 6. Yet America’s overall workforce actually shrank that month.“Policymakers were pinning too many hopes on ending unemployment insurance as a labor market boost,” said Fiona Greig, managing director of the JPMorgan Chase Institute, which used JPMorgan bank account data to study the issue. “The work disincentive effects were clearly small.”

Labor shortages have persisted longer than many economists expected, deepening a mystery at the heart of the job market. Companies are eager to add workers and have posted a near-record number of available jobs. Unemployment remains elevated. The economy still has 5 million fewer jobs than it did before the pandemic. Yet job growth slowed in August and September.

An analysis of state-by-state data by The Associated Press found that workforces in the 25 states that maintained the $300 payment actually grew slightly more from May through September, according to data released Friday, than they did in the 25 states that cut off the payment early, most of them in June. The $300-a-week federal check, on top of regular state jobless aid, meant that many of the unemployed received more in benefits than they earned at their old jobs.An earlier study by Arindrajit Dube, an economist at University of Massachusetts, Amherst and several colleagues found that the states that cut off the $300 federal payment saw a small increase in the number of unemployed taking jobs. But it also found that it didn’t draw more people off the sidelines to look for work.

Economists point to a range of factors that are likely keeping millions of former recipients of federal jobless aid from returning to the workforce. Many Americans in public-facing jobs still fear contracting COVID-19, for example. Some families lack child care.

https://apnews.com/article/coronavirus-pandemic-business-lifestyle-health-indiana-d3acd668eaf6343aada03cd660055bbc

[It’s so Joever]

It’s almost as if, early retirements due to Covid, childcare costs, and some concerns over Covid among potential workers are causing these issues…
Shocking.
Once again, Averro-nomics and Del Taco-nomics have been nearly as tarnished with errors as their short dabbling in epidemiology last year.

[jamestroll]

People need to get back to work. Too many people in this country want to sit at home, get lazy and fat, and collect checks for doing nothing.

[It’s so Joever]

People need to get back to work. Too many people in this country want to sit at home, get lazy and fat, and collect checks for doing nothing.

Did you even read the article?

[CEO Mindset]

eh, just do an unconditional basic income instead

unemployment insurance is bad imo, i'd get rid of it and various targetted/means-tested programs

[Big Abraham]

eh, just do an unconditional basic income instead

unemployment insurance is bad imo, i'd get rid of it and various targetted/means-tested programs

UBI is more neoliberal than social insurance lmao

[Utah Neolib]

The population is getting too old, people are retiring, and finding jobs where people don’t yell at them 24/7

[CEO Mindset]

eh, just do an unconditional basic income instead

unemployment insurance is bad imo, i'd get rid of it and various targetted/means-tested programs

UBI is more neoliberal than social insurance lmao

idc if it's "neoliberal" or not, i'm just against tying first world standards of living to anything more than having the right passport. i'm against tying it to either having steady employment or some other indication of submission/compliance(showing up at the welfare office for instance) so yeah, I'd junk "social insurance"

[True Federalist (진정한 연방 주의자)]

Another factor is that some people who were employed by businesses forced to be closed by the pandemic found other work or remuneration and decided that it suited them better than what they had been doing.

[dead0man]

Cutting off unemployment benefits does increase the amount of money available to unemployed people in the future who will actually need the money, unlike unemployed people currently.

[progressive85]

INDIANAPOLIS (AP) — Earlier this year, an insistent cry arose from business leaders and Republican governors: Cut off a $300-a-week federal supplement for unemployed Americans. Many people, they argued, would then come off the sidelines and take the millions of jobs that employers were desperate to fill.

Yet three months after half the states began ending that federal payment, there’s been no significant influx of job seekers.

In states that cut off the $300 check, the workforce — the number of people who either have a job or are looking for one — has risen no more than it has in the states that maintained the payment. That federal aid, along with two jobless aid programs that served gig workers and the long-term unemployed, ended nationally Sept. 6. Yet America’s overall workforce actually shrank that month.“Policymakers were pinning too many hopes on ending unemployment insurance as a labor market boost,” said Fiona Greig, managing director of the JPMorgan Chase Institute, which used JPMorgan bank account data to study the issue. “The work disincentive effects were clearly small.”

Labor shortages have persisted longer than many economists expected, deepening a mystery at the heart of the job market. Companies are eager to add workers and have posted a near-record number of available jobs. Unemployment remains elevated. The economy still has 5 million fewer jobs than it did before the pandemic. Yet job growth slowed in August and September.

An analysis of state-by-state data by The Associated Press found that workforces in the 25 states that maintained the $300 payment actually grew slightly more from May through September, according to data released Friday, than they did in the 25 states that cut off the payment early, most of them in June. The $300-a-week federal check, on top of regular state jobless aid, meant that many of the unemployed received more in benefits than they earned at their old jobs.An earlier study by Arindrajit Dube, an economist at University of Massachusetts, Amherst and several colleagues found that the states that cut off the $300 federal payment saw a small increase in the number of unemployed taking jobs. But it also found that it didn’t draw more people off the sidelines to look for work.

Economists point to a range of factors that are likely keeping millions of former recipients of federal jobless aid from returning to the workforce. Many Americans in public-facing jobs still fear contracting COVID-19, for example. Some families lack child care.

https://apnews.com/article/coronavirus-pandemic-business-lifestyle-health-indiana-d3acd668eaf6343aada03cd660055bbc

Policies that only seek to benefit the monied classes never trickle down to help the most disadvantaged and economically marginalized.  It's a fallacy perpetuated by Social Darwinists to defund the "left", starve the beast, and "rein in the federal government".  All of that garbage is done to put more money into the hands of the rich and the elites....

There really is a war on the poor in America... and not just one rich guy can be blamed for it.. it's the whole system that that rich guy benefits from.  We can't say wealth or capital or business is solely to blame, but all of those things when they work together contribute to the barriers that poor whites and poor blacks feel in this country...

[Meclazine for Israel]

Cutting off employment benefits will make smart hard working people get back into the workforce.

Lazy welfare-dependent people will never change their outlook.

[It’s so Joever]

Cutting off employment benefits will make smart hard working people get back into the workforce.

Lazy welfare-dependent people will never change their outlook.

Then why didn’t we get more f**king turnout?!

Where’s the turnout? You’ve all been yapping and yapping about the unemployment benefits, but they were cut, the only thing that changed was that you all started yapping even more.

Are there just a few million invisible people that only you can see who are actually working now?