We can file this one under “water is wet.” Contrary to what Democrats and their close friends and allies in the activist media tried to tell us, extended federal unemployment benefits were one of the primary contributors to the joblessness issue that many states have been experiencing. Small businesses complained bout the lack of available workers to fill necessary positions. Some companies even offered bonuses and $15 per hour to entice people to take jobs.
The issue, of course, was the fact that in many cases, people were being paid more to stay home than to return to the workplace. Naturally, this created a serious problem for businesses struggling to stay afloat after being hit with the COVID-19 pandemic.
But, according to a recent report, jobless claims have been on the decline, particularly in states that nixed federal benefits earlier than September when the payments were supposed to expire. The Wall Street Journal reported: “The number of unemployment-benefit recipients is falling at a faster rate in Missouri and 21 other states canceling enhanced and extended payments this month, suggesting that ending the aid could push more people to take jobs.”
In its report, the Journal referred to an analysis conducted by Jefferies LLC which found that “the number of workers paid benefits through regular state programs fell 13.8% by the week ended June 12 from mid-May – when many governors announced changes – in states saying that benefits would end in June.”
Aneta Markowska, chief financial economist for Jefferies, told the Journal: “You’re starting to see a response to these programs ending.” Workers can still receive state unemployment benefits after the federal payments end.
While the enhanced benefits are set to expire on Sept. 6, many other states are planning to discontinue them sooner. This should be welcome news to struggling businesses. According to Markowska, “employers were having to compete with the government handing out money, and that makes it very hard to attract workers.”
Of course, the decision to end federal benefits is being met with opposition in some states. According to Yahoo News, “workers in Indiana, Texas, and
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