According to the WSJ, unemployment is declining rapidly in states that are cutting $ 300 fortified federal profits.

Kansas City, Missouri

Kansas City, Missouri.

  • According to the WSJ, the unemployment rate is declining rapidly in states that end their weekly federal benefits of $ 300.

  • Missouri ended its strengthening of federal benefits to unemployed citizens on June 12.

  • The state’s unemployment rate is below the national average, but many continue to struggle.

  • Sign up for the 10 Things in Politics Daily Newsletter.

The number of Americans receiving unemployment benefits is declining faster in Missouri and 21 other US states that have opted out to receive enhanced federal payments this month. According to The Wall Street Journal..

President Joe Biden Under $ 1.9 trillion COVID-19 Relief Package Sign the law In March, the state’s unemployment check will be supplemented with $ 300 a weekly federal pandemic compensation, and the benefits will expire in September.

Republican-led state recently relocated Cut off Expanded unemployment aid has blamed the impact on job creators and claims that extra money is preventing individuals from looking for millions of open jobs. Most Democrat-led states are accepting aid and call it an essential resource for the unemployed as the country continues to recover from the coronavirus pandemic.

Missouri Republican Governor Mike Parson was pleased to welcome federal interests during the pandemic, but continued payments exacerbated the state’s “labor problems” as many economies resumed. “.

Amid concerns about labor shortages, most Republican governors denied what they regarded as overly generous federal aid.

Missouri’s unemployment rate in May was 4.2%, below the national average of 5.8%. According to data from the Ministry of Labor..

Missouri ended its strengthening of federal benefits to unemployed citizens on June 12, making it one of the first states to take action.

Seven more states will follow in the week leading up to June 19, and another 10 states will end aid to the unemployed this weekend.

By July 10, four more states will discontinue enhanced benefits.

read more: Meet 7 Biden World long-time consigliere and a relatively new couple with access to the White House’s exclusive conference

According to an analysis by Jeffreys LLC economists, the number of individuals receiving unemployment benefits will decrease by 13.8% by the week ending June 12 compared to mid-May.

This figure is compared to a 10% decrease in states that end their benefits in July and a 5.7% decrease in states that plan to retain their benefits until the end of funding in September.

Affected individuals lose $ 300 in federal funding, but continue to receive state unemployment benefits.

Jeffreys Chief Financial Economist Aneta Markovska told the journal that the state’s results of opting out of enhanced benefits are beginning to show.

“We are beginning to see a reaction to the end of these programs,” she said. “Employers need to compete with the government to give out money, which makes it very difficult to attract workers.” Added.

However, some economists and a wide range of Democrats have pointed out problems such as lack of proper childcare. Low hourly wage In some industries, concerns about COVID-19 continue, explaining why many did not return to the workforce.

In Missouri, the state’s workforce is relatively strong, with the unemployment rate peaking at 12.5% ​​in April 2020, while the national unemployment rate was 14.8% that month.

But despite the dire outlook that comes from looking at the whole number, real people continue to struggle.

The journal and Davina Robertson of 45-year-old Fenton (MO), the mother of two boys with special needs, were dismissed from $ 26 an hour as a corporate travel agency last year. talked.

She continued to receive significant health benefits through her old employer, but if she played another role, she had to waive compensation.

Roberson told the journal that she is now seeking help from grocery stores and clothing charities.

“I don’t want to go back to work,” Roberson told the journal. “But if I had a minimum wage job, I would be working for health insurance and childcare, and I have nothing left to survive.”

Read the original article Business insider

Posted on