FGA Responds to Newest Jobs Report Indicating an Economic Rebound in States Opting Out of the $300 Weekly Unemployment Bonus
- BY FGA
Naples, FL—Today, the U.S. Bureau of Labor Statistics (BLS) released a new report which showed initial unemployment claims increased by more than 37,000 for the week ending June 12, rising from roughly 365,000 to more than 402,000.
However, in states that have announced they will be ending participation in the $300 weekly unemployment insurance (UI) bonus, initial claims decreased week over week by two percent. In contrast, states opting to continue the bonus saw initial claims skyrocketed by nearly 15 percent. In certain states, the spike was even greater. For example, Pennsylvania’s initial claims grew by 281 percent over last week, while Kentucky’s initial claims increased by more than 153 percent during the same period.
Meanwhile, the states of Alaska, Iowa, Mississippi, and Missouri ended their participation in the UI bonus on June 12. Across those four states, initial UI claims declined by 11 percent compared to the prior week alone.
“Despite the misleading claims by the Biden administration, BLS data shows that initial unemployment claims are continuing to increase across the country,” said Hayden Dublois, Senior Research Analyst. “However, in states that have announced their intention to end participation in the disastrous $300 weekly UI bonus, initial claims fell. And in the four states that actually began ending the bonus, claims plummeted by 11 percent.
“The evidence is indisputable: As long as the UI bonus continues, any attempt at an economic recovery will be futile. With more job openings available, employers say that the $300 unemployment bonus is the only thing preventing America’s full economic recovery. Now is the time for more states to make the right decision for their economies and end their participation in the $300 weekly unemployment bonus.”
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.