No Extra Unemployment Benefits: States That Removed Them See Unemployment Rewind

Twenty-six states have already started to withdraw or plan to end all federal unemployment benefits related to the pandemic this summer, published the AS site.

The states that are adopting this measure, mostly Republicans, argue that the unemployment benefits provided by the federal government are influencing Americans to stay at home rather than go out looking for work.

This situation has affected employers who are struggling to fill the new jobs that are emerging with the return to normalcy, say those who support this thesis.

The Bureau of Labor Statistics has published the May unemployment rates for each state and district in Colombia.

Compared to the April data, the average unemployment rate fell 0.3%, from 6.1% to 5.8%, while those with the greatest reductions recorded were in:

Delaware, -.5%,
Rhode Island -.5%
Connecticut, -.4%
Hawaii, -.4%
New York, -.4%
South Carolina, -.4%

The average unemployment rate for all states that plan to keep benefits is 5.9%, while in those who are finishing the additional payments it is 4.6%, a figure lower than the national average.

The data serves as an important benchmark, as several states have or plan to end all federal unemployment benefits before the original date, scheduled for September 6.

The eleven states that have already ended the additional federal benefits reported an unemployment rate in May that was lower than the national average.

They are Alabama, Alaska, Idaho, Indiana, Iowa, Mississippi, Missouri, New Hampshire, North Dakota, West Virginia, and Wyoming.

However, of these states, Alaska, Indiana, Iowa, Missouri and Wyoming saw no change or experienced a marginal increase in the unemployment rate from April to May.

Also in states like Florida, unemployment increased 0.1% every month since March and Ohio saw the largest increase, 0.3%, compared to the April figure.

For AS this could indicate that the economy is not ready to incorporate all the workers who were employed before the pandemic startedBut the governors of all these states can argue that to get closer to the employment levels observed in February 2020, benefits must be eliminated to encourage workers to find a new job.

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