Additional U.S. unemployment benefits granted during the epidemic will expire at the end of September, but at least 18 states are now canceling or revising downward their federal benefit payments, in part because businesses are pointing the finger at the government for handing out large amounts of unemployment benefits for hiring difficulties.
Eighteen states have now withdrawn from the unemployment benefits program, including Alabama, Idaho, Alaska, Arizona, Arkansas, Georgia, Iowa, Mississippi, Missouri, Montana, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, Utah, West Virginia and Wyoming.
Since the outbreak, all U.S. states have provided benefits to generally ineligible people through federal unemployment assistance. States have also continued to provide additional benefits to all unemployed workers.
Senate Minority Leader Mitch McConnell (R-Ky.) said last week, “I’m sure everyone likes to get a check, but it makes it hard for the unemployment rate to improve.”
Economists and policymaking officials believe that the unemployment benefits program of last year’s CARES Act should be eliminated, which will encourage more Americans to go out and find jobs.
The U.S. added about 266,000 jobs in April, well below market expectations of 1 million. In addition, the U.S. JOLTs job shortage survey shows that there are currently more than 8 million job shortages, yet initial jobless claims fell to 473,000 last week, a new low since the epidemic.
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