Higher Unemployment Benefits Don’t Seem To Affect Employment Levels The Way Many Economists Assumed

  • One of the most expensive provisions in President Biden’s COVID-19 relief plan involves giving unemployed workers an added $300 per week, through September 6th, on top of their existing state unemployment insurance benefits.
  • Senator Manchin argued that an extra $400 per week was too much, and could stifle people’s motivation to find jobs. “We want people to get back to work,” he said. “We’re going to have a hard time getting people ready to go back in and keep the economy going.”
  • States with low unemployment insurance benefits did not increase employment levels more than states with high levels of unemployment insurance benefits. In fact, just the opposite: high unemployment benefits led to slightly higher employment levels. So policymakers can breathe easy, then: raise the unemployment benefits, and watch the employment numbers rise!

See full story here.



Categories: Government, Labor, Politics

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