Following last week’s disastrous jobs report and the apparent link between federally subsidized, increased unemployment benefits contributing to a depressed labor market, my colleague Nick Arama wrote:
This means that the government is essentially paying you more to stay home than if you were working.
Joe Biden said he doesn’t see any problem with it and doesn’t think it’s a factor in people not going back to work. Oh, he also said it was an crucial factor. I know it doesn’t make sense, but that’s Joe Biden.
Then Biden basically admitted that he really did think it was a factor when he announced that he was going to enforce requiring people to take a job if they were offered one, if they were receiving unemployment benefits.
WATCH: Restaurant owner offering *free tuition* to fresh employees says improved user interface is causing labor shortages.
“I’ve had several people tell me, ‘when I can’t get unemployment anymore, we’ll go back’ … we’re competing with that unemployment rate.” pic.twitter.com/kjYSDd4UTk
— Andrew Clark (@AndrewHClark) May 11, 2021
Governors aren’t waiting for the Biden administration to make a decision, nor should they. Eighteen of them chose to remove the increased portion of the $300 per week. All Republicans, of course. The end dates are surprising, but most will eliminate the additional benefit by September.
It has become clear to me that we cannot achieve full economic recovery until we fill the thousands of open jobs in our state. pic.twitter.com/PHGU27c9Mj
— Tate Reeves (@tatereeves) May 10, 2021
In addition to Mississippi Governor Tate Reeves, the others are: Kay Ivey of Alabama, Doug Ducey of Arizona, Asa Hutchinson of Arkansas, Brian Kemp of Georgia, Brad Little of Idaho, Kim Reynolds of Iowa, Mike Parson of Missouri, Greg Gianforte of Montana, Chris Sununu of New Hampshire, Doug Burgum of North Dakota, Mike DeWine of Ohio, Henry McMaster of South Carolina, Kristi Noem of South Dakota, Bill Lee of Tennessee, Spencer Cox of Utah, Mark Gordon of Wyoming, Mike Dunleavy of Alaska, and Jim Justice from West Virginia.
Alaska, Arizona and North Dakota will retain Pandemic Unemployment Assistance benefits for independent contractors and gig workers, while Arizona, Montana, Ohio and several others will provide return-to-work bonuses worth more than $2,000 to further encourage employees to re-employ themselves.
Arizona is the most generous and provides funding to cover it three months of childcare costs people who return to work and earn less than $25 per hour in their fresh job. This is the law of the state and with a more in-depth knowledge of their market, demographics and labor market, states should set this policy, NO federal government.
While some citizens see this as a necessary part of a return to normalcy, others are extremely dissatisfied with the governor’s decision.
Thank God for true leadership. The pandemic is ending. There is no reason not to return to work. Follow the science. Stopping supplementing unemployment is a reasonable and necessary step!!
— Robert Wilson (@rpwilsonjr) May 16, 2021
The number of people this weekend who told me: “we can’t hire anyone because they won’t get out of unemployment”… I feel like giving up everything. PAY YOUR EMPLOYEES. YOU ARE PART OF THE PROBLEM
— master of business….everything (@AndrewJMo91) May 16, 2021
Neither the Biden administration nor these governors are talking about the other consequences of expanded benefits: people with special needs and disabilities who lack workers to provide imperative services. This industry has been hit particularly difficult by a shortage of workers who are either unable or unwilling to do their jobs.
This is also a problem arising from government subsidies, he explained Detroit Free Press: :
Most home care workers earn an hourly wage of $9.50 to $12 an hour, with no benefits, including paid unwell leave and health insurance. Medicaid sets the base wage, and states that want to pay workers more must find ways to raise the extra money.
Many people who receive direct care work in more than one job: providing health insurance and a direct care job. Employee retention is a huge problem for agencies posting workers.
There are also those who have no idea about free market economics.
I understand that for civilization to continue to advance, we can’t have most people not working, but instead of threatening to reduce their unemployment if they don’t take a “suitable job”, what could be done to ensure that companies pay them fairly? This would motivate them to work.
— Rob Brown ⏳🕊️🍀 (@XSiveVerbosity) May 16, 2021
This person admits that he has an idea, but does not see the connection between his vote and the difficulty of reaching a solution:
It was for me and I loved my low unemployment period, but I didn’t want a year off on my CV where I was obviously living off unemployment on purpose. I will still vote for Biden over Republicans, but the improved user interface is an obvious deterrent to getting a job.
— caaarrrllllll (@caaarrrrrllll3) May 11, 2021
So much anger towards these evil Republicans. However, Pennsylvania Governor Tom Wolf, who last time I checked was a Democrat, has just announced that he, too, is ending it improved benefits: :
UNEMPLOYMENT BENEFITS: Pennsylvania has decided to end extended unemployment benefits because the unemployment rate has fallen below 5%. https://t.co/Sc2OZ09okA
— KDKA (@KDKA) May 16, 2021
Pennsylvania has decided to end extended unemployment benefits at the state level.
The program provided an additional 13 weeks of benefits to people who had exhausted their conventional unemployment benefits.
According to the state, this decision was made due to the unemployment rate falling below 5%.
Good. It’s time to get back to work and stop sucking the government parched.
— Fieldsy Sanders (@FieldsySanders) May 16, 2021
Yes, stop sucking the government parched. That would be you and me, Joe and Jane, the taxpayers. But it works both ways.
As the Biden administration and Senate push the PRO Act, Worker Flexibility and Small Business Protection Actand removal by the Department of Labor Independent contractor rulethe government must also put an end to over-regulation, over-reach and Big Labor’s attempts to mass take over the freedom of individuals to work as they choose.
