Business Insider
16 GOP governors will axe weekly unemployment checks to incentivize returning to work, but experts say federal aid isn’t slowing job growth
The US economy has made dramatic gains since its peak pandemic unemployment rate of 14.8% last spring. But the current figure – 6.1% – remains well above pre-pandemic levels and hiring unexpectedly weakened last month. Several states have blamed federal unemployment aid, alleging that the supplemental cash has discouraged people from looking for a job and sparked a worker shortage. However, labor experts worry that states may be jumping to conclusions.
“It’s hard to read too much into this,” Ioana Marinescu, an economics professor at the University of Pennsylvania School of Social Policy & Practice, said. “There are many factors that make it hard to climb quickly in terms of employment. And some of those factors have nothing to do with unemployment insurance.”