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Jobless Rates Go Down In States That Removed Extra Benefits

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Portrait of a man giving an handshake in an industrial facility | Jobless Rates Go Down In States That Removed Extra Benefits | featured

22 states who cut their extra jobless benefits saw their jobless rates fall at a faster pace. This highly suggests that removing the extra unemployment benefits set by the federal government can increase the job rate.   

RELATED: Montana To End Extra Jobless Benefits Due to Worker Shortage

Federal Pandemic Aid

Federal pandemic aid bills boosted unemployment payments by $300 per person a week. This benefit aims to provide additional funding for households in the event getting a job during the pandemic is out of the question.

This doesn’t only cover the lack of jobs, but also considers workers that could not leave home because of young children, or a lack of safety and transportation means to get to work. The extra unemployment aid will supposedly last until September this year, but states can opt-out of the program depending on their condition. 

However, the US economy jumped right out of the gates this year as businesses opened left and right. Manufacturing went back roaring while retail and food outlets reopened and started accepting customers. It came to a point where many job openings remain unfilled as workers are becoming more selective in applying for jobs.  

Missouri’s Jobless Rates Are Falling Down

Missouri Governor Mike Parson said that the benefits helped a lot during the height of the coronavirus pandemic. However, continuing them now is hurting the need for workers.

Like other Republican governors, Parson informed the federal government about Missouri’s plan to end the extra jobless benefits. Currently, the state enjoys a 4.2% jobless rate. In contrast, the national average is higher at 5.8%.  

Missouri removed the extra jobless payments last June 12, one of four states that decided to do so. Seven states followed the four with a June 19 deadline. For this weekend, 10 more states will drop the extra benefits, while another four will cut off by July 10. 

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Jobless Rates Down

The announced cuts resulted in a spike of new workers. Extra unemployment actual payments fell by 13.8% over the weekend of June 12. Meanwhile,  states that will end their benefits by July reported a 10% decline in payments. For states still planning to complete the September cut-off period, the decline only reached 5/7%. 

Anita Markowska, Jefferies chief financial economist, says that the effect is showing. “You’re starting to see a response to these programs ending. Employers were having to compete with the government handing out money, and that makes it very hard to attract workers,” she noted. 

Democrats Point Out Other Factors

Meanwhile, some Democrats and economists say that other things hamper workers from getting back to work. The lack of child care and fear of getting infected with COVID-19 are among the concerns. However, the case in Missouri showed that people are getting back to work when they know the extra benefits are running out. 

Missouri job seekers are now attending job markets and showing up for interviews. For example, the Midas hotel chain already processed its new hires. Previously, many inquiries will come up but very few will show up for interviews.

In addition, some of those hired didn’t show up for their first day. Meanwhile, other Midas locations in states where extra unemployment benefits remain in force are still having trouble hiring workers.

Watch the TODAY show reporting that 4 states cut off unemployment benefits early, with other states to follow:

What do you think about the federal extra jobless benefits?

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Do you agree that the extra job benefits should stop now considering the US needs to hire more workers? If not, what is the extra incentive for considering there are lots of jobs out there?

Tell us what you think about the jobless rates. Share your thoughts below.

15 Comments

15 Comments

  • Vicki Holton says:

    I think it was a horrible idea to begin with. Look at the problems it has caused ! Nobody wants to work. ! They think government should support the ! New President and VP are useless !!!

  • Don Cook says:

    Companies who raised the wages they pay their employees have plenty of applicants. Even with the extra unemployment offered by the federal government still in effect.

  • KAREN HIETANEN says:

    It was ridiculous to give extra money in the first place. Government didn’t offer to help social security and the elderly. This country gives away too many freebies. People expect it and that is a sad state of affairs!

  • Anonymous says:

    Pay people not to work, and guess what, they aint gonna work!

  • nuggie56 says:

    This is so ridiculous. People wants and needs to work but at what cost. It is now the time to raise the minimum wage to $15 an hour so families can support their families in a decent manner. It is sad how hard our people work and still in poverty.

  • Jerry says:

    These individuals that don’t want to work know no responsibility. They’re like babies on a tit. Get out there and face the world and make a difference. At the end of it all when you retire you’ll have something to show for your efforts.

  • Anonymous says:

    Because the government has been supporting them all there life that’s all they know is a free hand out .A vicious cycle

  • Mike says:

    Covid China 🇨🇳 Virus 🦠 caused the company I worked for as a Director of Sales to close down. Americans seem to have forgotten which country put us in the situation.
    I had a salary and bonus structure and was clearing $90,000 a year as was in line to clear over $120,000 when China 🇨🇳 pulled their “Death Trap” Crap.
    I cannot work for minimum wage or wages up to $18.00 and hour and pay for rent and life essentials like car, insurance, gasoline, food, rent.
    I also do not believe a thing the press says on any issue at hand. The press and government state officials were not left without a job, so they have no idea what it feels like trying too survive this terrorist attack from China 🇨🇳.
    Let me have your job and you try to live in minimum wage in your states. You all would be crying and screaming after receiving first paycheck trying to figure out how to pay for your Luxury Cars, Mansions on $350 a week after taxes.
    Years ago China 🇨🇳 said they would destroy America 🇺🇸 from the inside, and boy they started the cycle with Covid and buying America’s debts.
    Semper Fi! And get reality check!

  • David says:

    Of course people will work if you cut the teet. The government wants people unemployed, dependent on them. After the bioengineering od the virus, inte tional release, the rest was just a plan to wreck the country, and it’s economy. A bunch of useless politicians continued receiving their wages while deeming others jobs as non-essential. Isn’t that rich! Not 1 politician at any level should have continued to receive any salary while the rest of America struggles.

  • Mark Hendricks says:

    Get off your butt and find a job. The government shouldn’t tell private business what to pay their employees. Wages are set based upon the value of the service rendered. Not what the government says you have to pay.

  • private says:

    Although I agree with removing the extra pay, The real fact is that the unemployment rate is based on those drawing benefits, not including those not working and also not drawing benefits.

  • Corncake1 says:

    This unemployment balloon benefit sho.was where we are headed with socialism. Nobody wants to work when our lame government provides so much.

  • JOEL K GOODMAN says:

    THE UNEDUCATED AND UNSKILLED ARE MOTIVATED TO SIT HOME AS THEY GET MORE FOR LOAFING THAN THEY CAN EARN WORKING. STUPID IDEA FROM THE BEGINNING TRULY WORTHY OF THAT FUCKING MORON BIDEN AND HIS CREW OF IDIOTS

  • arlie says:

    Anyone that agrees with raising the minimum wage to $15 never took economics.
    Let me educate those that are to dumb to think for them selves.
    Some tend to think that raising the wage to $15 will allow them to buy more groceries, or move into a better apartment or buy a better car or you just name it.
    What they don’t realize is that the economy will raise the price to meet the demand of the services in order to pay the higher minimum wage! Think about it ,has anyone really got anymore money after the times the minimum wage was raised? A big NOOOOOOOOO

  • Terry says:

    BINGO !!! Arlie says it best,, raise the minumum wage and all you will do is raise the poverty level,,, think $50,000 annual income or more, as the new poverty level.

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