Norfolk, VirginiaRippling) – Several federal pandemic unemployment benefits have ended on holiday weekends. Employers want it to mean the end of their staffing struggle, but one economist hasn’t held his breath.
Most of the summer Many employment managers pointed to additional unemployment allowances as a reason for employment troublesEspecially in the hospitality industry. How likely are these vacant seats to suddenly fill up if you stop unemployment for $ 300 a week?
“Suspicious,” said Bob McNab, an economist at Old Dominion University.
“The real problem is people leaving the workforce. Looking at where we started in the pandemic, fewer people are looking for a job,” McNab said. “In other words, there are not enough unemployed people to solve labor problems in the region.”
McNab said some people have been forced to return to work due to the depletion of unemployment funds, but there is already evidence that this is not the ultimate solution. Republican governors in some states stopped the $ 300 federal strengthening a few weeks ago as businesses faced a staff shortage.
“Compared to the states that reduced unemployment allowances and maintained them, the states that continued to increase unemployment allowances had actually seen higher employment growth over the past four months,” McNab said. rice field.
JPMorgan economists Peter McCrory and Daniel Silver have found that, at least so far, there is a “zero correlation” between job growth and the state’s decision to abolish federal unemployment assistance. Kyle Combs, an economist at Columbia University, found minimal profit.
It is estimated that approximately 8.9 million Americans will lose all or part of these benefits when federal benefits expire on Monday.
The White House encouraged states to continue to pay $ 300 a week in profits by spending money from the stimulus bill, but no state has chosen to do so.
McNab said he is closely watching his return to face-to-face learning in public schools and seeing if it encourages more people to return to the workforce pool. Since virtual learning began in March 2020, it is suspected that many parents of young children have been at home to care for their children.
Other workers may have seen the pandemic as an opportunity to change their career.
McNab said he believes that vaccination of more people in the United States gives people the confidence to find a job again.
The disappointing August job report has also been blamed for the rise of the Delta variant. According to the US Bureau of Labor Statistics, economists predicted that about 735,000 jobs would be added to the economy in August, but only about 235,000 were added.
President Joe Biden said the number of jobs added was not what the country was aiming for, but not all were negative. The federal unemployment rate fell to 5.2% and the number of people applying for unemployment benefits fell in August.
The Associated Press contributed to this report.
Will jobs be filled as the $ 300 unemployment rate no longer rises?Economists say it is “suspicious”
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