States are Choosing Reemployment over Unemployment
States are Lining Up to Opt Out of Federal UI Boosts
During the pandemic, Congress passed a series of new federal unemployment programs, adding federal dollars on top of normal state unemployment benefits. These programs were hard for states to administer, offered money to new classes of traditionally ineligible claimants, and were rife with fraud. However, the biggest issue with the federal unemployment bonuses now is the disincentive to return to work while states try to reopen their economies and small businesses try to keep their doors open. Some states are getting ahead of the problem, listening to their small businesses, and ending their participation in federal unemployment boosts. Will yours be next?
Paying People to Not Work
While the Bureau of Labor Statistics says there are 8 million open jobs in America (a record), individuals with minimal dependents are paid, on average, more than $3,600 per month in various cash benefits, without having to work.
Regular UI: $1,003
Federal UI bonus: $1,300
Child Tax Credits: $600
Food Stamps: $365
Earned Income Tax Credit: $426
Small Businesses Need You
Small business is the backbone of our economy. They want to hire people to work good-paying jobs. Federal unemployment boosts are coaxing individuals to not work and putting small businesses at risk.
- 73% of business owners say they’re having trouble finding workers.
- 66% say the federal UI bonus has made things harder and it should end
A majority of business owners also say:
- An employee has refused to return due to the federal UI bonus
- They’ve had no-shows after hiring someone
- They had to increase spending in the hiring process to get candidates
- They have missed business opportunities as a result of the difficulty to hire