Opinion: Why are Unemployment Benefit Recipients the individuals that were considered "Frontline Heroes" and "Essential" - Now being taken for granted. Employers need to hire, not just post employment opportunities, at livable wages.
Unemployment Benefits and Claimants:
The only documentable adverse behavior that can be proven, is that politicians are showing their true colors. Special interests can not get people into employment positions to work cheap, and the current leadership has not created an environment that inspires and enables small business to thrive and choose to conduct business within their state, so the same people that were considered essential front-line heroes when it was convenient for photo-ops soundbites and headlines, are now hurting.
“No Evidence” that UI Benefits were a factor, as per Yale University Study
“These supplemental payments were intended to provide short-term assistance to individuals who lost their jobs, through no fault of their own, at the start of the pandemic," McMaster said. "Continuing these supplemental benefits would have converted that emergency aid into a dangerous federal entitlement, incentivizing workers to stay at home rather than applying for one of the over 86,000 open positions in the State of South Carolina. Businesses large and small are fighting to survive and thrive, and they should not have to compete with federal benefits when looking for employees.” (Styf, 2021)
The thought process of if the state eliminates the incentive of the extra CARES Aid from the COVID Crisis Unemployment Insurance beneficiaries would be incentivized to find work faster. This could not be further from the truth because, while the Governors of the states involved want to look like leaders, they fail to acknowledge that as job seekers have adapted their budgets in some cases to live with less, employers have learned to operate with less, employees and labor costs. To be eligible for unemployment benefits individuals, job seekers, but be doing just that seeking work. The individuals were at one point not required to search, because much of the commerce and business was closed due to COVID mandates from the State. (Iacurci, 2021)
Employers Must Take Responsibility
The job seekers can only do so much, apply to so many postings and wait for decisions to be made, it is squarely on the employers to hire. If employers are not hiring, then the job seekers should not be penalized. Just because a posting is publicized, that does not mean that a position even exists. (Guerin, May 2021)
Based on a recent Yale study, publicized by House Speaker Nancy Pelosi, “In fact, a new study released by Yale University last week showed just the opposite – finding “no evidence” that pandemic unemployment benefits were a disincentive to going back to work. (Cummings, 2021)
The economics of this matter are simple, we have politicians who make over one hundred thousand dollars who can not relate to the needs of average citizens. There are things to consider that are not financial. If job seekers go back to work there are considerations such as childcare, transportation and household cleaning, all these things are not covered by Unemployment Insurance, or Food Stamps. The politicians can look back and say that they supported the CARES Act, before they didn’t, and forced the same people that politicians called front line heroes back into the line of fire of COVID delta variable while Governors sit behind closed doors in their mansions, making a hundred thousand dollars or more a year.
Most Recently, as of today, a lawsuit against the Governor’s Office asking for an injunction in the blocking of the federal emergency aid went on deaf ears by a federal judge because the plaintiffs cited the Social Security Act as reason for the injunction. Governors have the option to participate or not participate in federal laws. (Styf, 2021)
States that have stopped Federal Unemployment Emergency Aid ($300)
State / Date / Governor / Party
1. Alaska June 12 Mike Dunleavy, R
2. Missouri June 12 Mike Parson, R
3. Mississippi June 12 Jonathon Tate Reeves, R
4. Iowa June 12 Kim Reynolds
5. Alabama June 19 Kay Ivey, R
6. Idaho June 19 Brad Little, R
7. Indiana June 19 Eric Holcomb, R
8. Nebraska June 19 Pete Ricketts, R
9. New Hampshire June 19 Chris Sunono, R
10. North Dakota June 19 Doug Burgum, R
11. West Virginia June 19 James Conley Justice II, R
12. Wyoming June 19 Mark Gordon, R
13. Arkansas June 26 Asa Hutchinson, R
14. Florida June 26 Ron DeSantis, R
15. Georgia June 26 Brian Kemp, R
16. Montana June 26 Greg Gianforte, R
17. Ohio June 26 Mike Devine, R
18. Oklahoma June 26 Kevin Stitt, R
19. South Carolina June 26 Henry McMaster R
20. South Dakota June 26 Kristi Noem, R
21. Texas June 26 Greg Abbott, R
22. Utah June 26 Spencer Cox, R
23. Maryland July 3 Larry Hogan, R
24. Tennessee July 3 Bill Lee, R
25. Arizona July 10 Doug Ducey, R
26. Louisiana August 3 John Bel Edwards, D
In 2020, the Great American Economic Revival Industry Groups was created to obtain industry guidance on how to manage the crisis, including leaders from industries, and celebrities. Now that we have hit the first plateau of the crisis, and the next wave is about to hit, employers can not understand why American working class will not return and risk their lives, for wage rates that do not pay over basic poverty lines.
References:
Iacurci, G. (2021, July 22). States cutting unemployment benefits didn't get people back to work, study finds. Retrieved from https://www.cnbc.com/2021/07/22/cuts-to-unemployment-benefits-didnt-get-people-back-to-work-study-finds.html
New Yale Study: 'No Evidence' Expanded UI Discourages Return to Work. (2020, August 03). Retrieved from https://www.speaker.gov/newsroom/8320
Lisa Guerin, J. (2021, May 06). Who is Eligible for Unemployment Benefits? Retrieved from https://www.nolo.com/legal-encyclopedia/collecting-unemployment-are-you-able-32445.html
Unemployment Insurance Relief During COVID-19 Outbreak. (n.d.). Retrieved from https://www.dol.gov/coronavirus/unemployment-insurance
Jon Styf | The Center Square contributor. (2021, August 13). Judges tosses lawsuit seeking to reinstate federal unemployment benefits in South Carolina. Retrieved from https://www.thecentersquare.com/south_carolina/judges-tosses-lawsuit-seeking-to-reinstate-federal-unemployment-benefits-in-south-carolina/article_a5e58db6-fc7d-11eb-89ec-af7752275f5a.html
Jones, C., & Menton, J. (2021, July 09). 'I'd rather work': Debate rages as states cut unemployment and workers seek jobs, better pay. Retrieved from https://www.usatoday.com/story/money/2021/07/09/unemployment-benefits-jobs-worker-shortage/7826616002/
Cummings, M. (2020, July 27). Yale study finds expanded jobless benefits did not reduce employment. Retrieved from https://news.yale.edu/2020/07/27/yale-study-finds-expanded-jobless-benefits-did-not-reduce-employment
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