Weekly News Highlights: 9/7/2020 – 9/13/2020
Do Jobless Benefits Deter Workers? Some Employers Say Yes. Studies Don’t.
The U.S Department of Labor enacted a weekly $600 unemployment compensation boost on March 27, 2020. Since COVID-19 has ravaged the economy, the government provided this boost to American citizens in an attempt to aid the economy and provide support to American workers and families. This article explores the possibility of this unemployment benefit deterring American workers from taking up jobs. The article talks about how many companies have been receiving an extremely low number of workers and applications, even though in most cases, the unemployment rate in the area is higher than last year. Because of this, many employers believe that workers have turned down job offers because there is an unemployment benefit for them if they don’t take the job. However, countless studies have shown that there is no evidence that the benefits have disincentivized work. Either way, the unemployment benefits have put money into people’s hands, who in turn spend it, stimulating the economy and helping businesses during this unprecedented time.