Republican states ending unemployment early is an unnecessary test of the labor shortage

Vox (06/03/2021)
  • 25 Republican-led states announced they’re ending federally-funded unemployment benefits months early to address labor shortage complaints by local businesses.
  • While Biden’s recent stimulus extended the benefits until Labor Day (September), states announced June-July terminations to push people back to work.
  • According to JP Morgan economic researchers, proof that the $300/week in extra benefits keep most unemployed people from seeking work remains insufficient.
  • Ultimately, states are undertaking a real-life experiment to see how ending benefits for 4 million people will impact the labor market.