Unemployment benefits cuts in the United States did not motivate job search as expected

Unemployment benefits cuts in the United States did not motivate job search as expected

A few months ago, various governors, mostly Republicans, decided to cancel the federal unemployment assistance that granted beneficiaries $ 300 dollars a week for their maintenance with the objective that said citizens would be forced to find employment, especially because there are millions of vacancies.

Despite the fact that the impact of said decision had not been measured, it was announced that at the state level the job boom that the governors hoped for has not yet been obtained. cut federal unemployment benefits this summer. In contrast, money was lost to entice some of the beneficiaries to accept jobs.

Behind that main conclusion, according to Reuters, there is also evidence of a more nuanced shakeup among different job categories that could influence the economy’s performance in critical months to come. Despite hiring goals not being met, there are industries that have recovered in this matter, such is the case of the retailer and the service.

According to the news agency, separate published analyzes found that the 26 states that cut $ 300 federal aid saw the unemployed find a job at a faster rate, perhaps as much as six percentage points, than the 24 states that plan to continue the benefit until its national maturity in September.

Despite this, states that cut benefits fared worse at getting people back to jobs, as overall job growth in the two groups of states was nearly identical from May to July.

According to the job creation studies prepared by the federal government, people are considered unemployed only if they are looking for work; others are considered out of the workforce until they start a job or begin a job search.

On the other hand, one of the limitations that state governments face, as well as employers in all states of the country to reach the hiring goals that have been proposed is the new wave of Covid-19 infections , is specific to your Delta variant, which may cause recruitment to stagnate.

A few days ago, the economic research and analysis firm Perryman Group, stated that at least 72,000 jobs in Texas would be lost due to the pandemic, despite the fact that thousands of Texans have been vaccinated in recent months. This situation would generate a setback in the issue of the generation of job sources.

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