Naples, FL—Yesterday, the U.S. Bureau of Labor Statistics released their May 2021 Employment Situation Summary which showed fewer new jobs created than economists forecasted.
This poor showing is caused in no small part by the $300 extended pandemic unemployment bonuses. In many cases, individuals can collect more in unemployment and other benefits than if they returned to the workforce. In the first 22 states that announced eventual withdrawal from the unemployment boost, job applications increased by 5 percent the very next day.
“With half of states ending the $300 unemployment bonus, it has become clear that the only obstacle standing between America and a return to normal is if Congress extends this program,” said Joe Horvath, Senior Fellow at the Foundation for Government Accountability. “Businesses everywhere are ready to return to normal, but 73 percent of small businesses report difficulty in hiring. The vast majority say the $300 weekly unemployment bonus is to blame. It is now more obvious than ever that the unemployment problem is no longer caused by the virus, but rather by outdated policies.”
The Foundation for Government Accountability (FGA) is a non–profit, multi–state think tank that specializes in health care, welfare, work, and election reforms. To learn more, visit TheFGA.org.