Unemployed rolls shrink faster in states that cut federal benefit: report
By Mark Lungariello
June 27, 2021 | 6:03pm | Updated
The unemployment rolls are shrinking faster in states that have axed federally boosted payments as the economic carnage from the COVID-19 pandemic eases, a new report said.
The 21 states that have ended or will end the beefed-up payments in June saw a 13.8 percent drop since mid-May in the number of people receiving unemployment benefits, the Wall Street Journal reported on Sunday.
The four states planning to end the benefits in July and September saw 10 percent and 5.7 percent drops, respectively, the Journal said, citing an analysis by Jefferies LLC.
“You’re starting to see a response to these programs ending,” Aneta Markowska, chief financial economist for Jefferies, told the outlet.
COVID-19 relief that boosted weekly unemployment payments by $300 per person will expire Sept. 6 but many states have plans to end the benefits earlier.
The additional payments have contributed to a labor shortage, those in favor of cutting the benefits have said, while others argue other economic and pandemic-related issues are keeping people out of work, WSJ said.
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https://nypost.com/2021/06/27/unemployment-shrinks-in-states-that-cut-federal-benefit-report/
