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Monday, August 9th, 2021

Nearly half of US states withdrew federal unemployment benefits early. It has not incentivized a return to work

Author:     Meaghan Ellis
Source:     AlterNet
Publication Date:     August 05, 2021
 Link: Nearly half of US states withdrew federal unemployment benefits early. It has not incentivized a return to work
Stephan:   It is an article of faith, and an example of the inherent nastiness of Republicans, that they chose to cut off critical funding for poor people thinking it would force them to seek some kind of job and go back to work. Well, like most things Republicans believe that is crap. and here we have the hard data proving that point.
Workers lined up at an employment development office in Calexico, California. Credit: Wikimedia Commons

Governors in half the states across the country opted to withdraw from enhanced federal unemployment benefits believing it would incentivize a return to work. However, new data suggests that isn’t the case.

Back in May, multiple states announced their intent to end federally enhanced pandemic-era benefits and moved forward with their efforts in June. Now, according to CNBC, a total of 26 states are without federal unemployment. Ultimate Kronos Group (UKG), a payroll management firm, has noted that trends among hourly workers suggest that the return to work pace is approximately half of the expected rate.

The company’s analysis breaks down the difference between states that ended and federally enhanced unemployment compared to the states that kept the incentive in place. UKG’s analysis indicates: “Specifically, in states that ended benefits, shifts grew 2.2% from May through July; they grew 4.1% in the others that kept federal aid intact.”

Dave Gilbertson, UKG’s vice president, has noted that the analysis further proves that unemployment benefits […]

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