Economists say ending extra unemployment pay will hurt rural areas; employers claim benefits discourage work
Economists say ending extra unemployment pay will hurt rural areas; employers claim benefits discourage work. Republican governors in at least 22 states plan to end pandemic-related federal unemployment assistance as early as next week, and that is causing some concern about the rural impact.
“The governors argue that the benefits discourage people from taking jobs. But economists say cutting off federal aid affects people’s livelihoods—especially for people of color and residents of rural areas saddled with slow job growth, lackluster transportation options and limited opportunities,” Aallyah Wright reports for Stateline. “Montana was the first state to announce it would end the program, on May 4, cutting off the benefits June 27. Other states followed suit, including Alaska, Alabama, Arizona, Arkansas, Georgia, Idaho, Indiana, Iowa, Mississippi, Missouri, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia and Wyoming. All are led by Republican governors.”
If those states follow through on pulling the aid, nearly 2 million workers could lose almost $11 billion in benefits, according to an analysis of Labor Department data by left-leaning nonpartisan think tank The Century Foundation. But if all states continue allowing the federal unemployment funds through their current expiration date of Labor Day, almost 16 million workers nationwide would receive $100 billion. Andrew Stettner, a senior fellow at The Century Foundation, told Wright that states have never before accepted federal funds and then turned them down.
“Some governors and the U.S. Chamber of Commerce—which also called for an end to the $300 weekly extended benefits—opposed the extra support because, they said, benefits would disincentivize people to go back to work in industries such as food service and hospitality,” Wright reports. “However, there is no evidence that federal pandemic unemployment benefits had a substantial effect on employment after the $600 benefits expired in July 2020, according to a February 2021 study by a researcher with the National Bureau of Economic Research. More than half of people who received a $600 federal unemployment check returned to work before the supplement expired,” according to a paper from the University of Chicago’s Becker Friedman Institute for Economics.
Politicians’ views on the extra aid mainly fall along party lines. Arkansas state Sen. Ronald Caldwell framed it as a question of equity. It’s unfair, he said, that farmworker jobs remain unfilled while teachers and first responders must work. “We can’t stick our head in the sand and continue on with people having grocery shelves stocked and other things that have to be done,” he told Wright.
In Georgia, Democratic state Rep. Kim Schofield said jobs are going unfilled partly because employers don’t pay a living wage. “We need workplace salaries to match the 21st century workplace,” Schofield said. “”There are larger companies who have made billions on the backs of workers. They can now give incentives back to workers, on-site child care, or raise some of the wages up to $15 and start there.”
Stettner, of The Century Foundation, told Wright that the industries experiencing the biggest shortages, such as leisure, hospitality and trucking, don’t often provide job security for workers, and argued that ending benefits for all won’t address those longstanding issues.
Written by Heather Chapman
I havent got my unemployment my unemployment been froze for months i havent been getting 300 dollars
The same here. You make one mistake and it costs you everything. I mistakenly answer a question wrong and I haven’t received any benefits in six weeks. You call and call and call yet it’s always wait wait wait until what? We’re on the streets!
What about us that don’t fit the right criteria?
I can’t take the vaccine shot due to a bout of Guillian Barre, but I have been an elderly caregiver for 10 years. Now I am afraid of going back into the nursing homes. I also have grandkids that live with me and go to school. I am at high risk! I need the unemployment right now!
Why don’t they just leave it alone eventually people will go back to work. Before the unemployment ends in September by cutting off the $300 and they still have their reqular unemployment but not much but still. Maybe some are waiting for their jobs to called them back and their taking long to called employee back. So let it go on until September worry about others things
Did anyone believe we would ever get them ? Likely a campaign LIE all along.
Well, I have a Non Verbal Special Needs Child and have worked all of my life and the first time I get Unemployment, I am considered Lazy. I am far from it but will not leave my child with just anybody and he pulls my lively hood because of other people being sorry. NOT my FAULT! But I will not give up on my child and give my paycheck to a Daycare.
Unfortunately, it sucks to be unemployed right now and a Republican 😂 I have been unemployed and took the extra federal $300.00 boost to rebuild my savings and emergency fund and pay my bills to keep up while the economy comes back. Yes I would love to go back to work, but unless you are a restaurant worker there are only part time jobs available and with no benefits. For those unemployed with no college degree you would have to work 2 or 3 jobs just to pay your bills. Right now the boost pays for my covered California health insurance, which is mandatory to have in California, so that’s strike 3 living in California 😂
The People are going to lose faith in our Governor leaders. Governors (Republican Governor’s) are trying to chalk it up to no one wants to work but how about the people are preparing to be normal again. ITS WAS SCARY AND STILL KINDA IS… Look governors you are losing the people becuase you are sculpting yourself as heartless, cold, & I-know-better-than-anyone attitude (following trumps mentality). A lot of of us had 15 year carriers that where vanished and have to start over from scratch. It boils down to this- Our President of the United States gave his word to take care of the people and gave a crystal clear expiration date of when those will deplete. Governors (RG) decide it’s better to break that promise and show the world that you don’t care about about any body but your selves and make decision that bring you political gain. It’s clear to see that it’s only republicans states making theses decisions, almost as trump in your ear.
They are going to hurt the people that work in our theaters and all the people that work
Behind the scenes of live events and all the actors and actresses and musicians and stagehands also the convention business that is still not back we want to go back to work we made a lot more then Arizona’s 240.00 a week and with the extra 300.00 we still made more than that even when they gave us the extra 600.00 a week it still wasn’t close to what we made working and without the extra 300.00 we will not be able to pay our living expenses they are basing this all on the restaurant workers which isn’t fair they should have prorated what they gave everyone per what their income was because it’s gonna take awhile for our work to come back 100 percent because everything has to start scheduling
This is crazy and insane and out of the question!! How are you guys just going to cut benefits when people don’t even have child care fully established yet and not every single person there’s going to be able to make ends meet if they were not prepared for this cut off especially depending on their household size and how many children they have!! Let alone being a single parent!!
Have not received any of the 300.00 per week. Have been trying trying for 10 weeks to get IDMe to help and no one will help. 10 weeks later I am still at square one. Can someone help.
I’ve certified for my benefits about 4 different times and haven’t receive nor one of them I’m in debt and need my payment I don’t no what’s going on with my Unemployment