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Alabama, Idaho, Indiana, Nebraska, New Hampshire, Dakota del Norte, Virginia Occidental y Wyoming They will suspend this Saturday, June 19, the additional unemployment benefits granted by the federal government.
With this measure, the Republican governors of the states seek that unemployed Americans are hired with companies that are struggling to hire workers, Fox Business published.
The early suspension will affect more than 440,000 unemployed Americans who will stop receiving the $ 300 unemployment benefits this weekend, which were originally scheduled to be delivered until Sept. 6.
Alaska, Iowa, Mississippi and Missouri, four states that said they would adopt the same measure, already officially suspended assistance last week, while another 14 will do so later this summer.
Those who are against this position assure that the lack of childcare and fear of catching coronavirus are the reasons for the low hiring.
They say that suspending official aid before September 6 will hurt unemployed Americans and leave them without income while they are hired again.
Para Andrew Stettner, miembro senior de Century Foundation, “The reality is that the strength of the labor market, not the size of unemployment benefitsIt will determine how quickly Americans can get back to where they want to be: a job. “
As the economy reopens and activities return to normal, companies have complained about a lack of available workers.
But the Labor Department reported anemic job growth in April and May, well below economists’ expectations.
An Indeed study revealed that job search after benefits suspension announcements, it only increased by 5% the day each state announced the cuts.
But the increase was very brief because a week later, job search records returned to April levels.
The average state unemployment benefit is about $ 330 per week, plus the federal supplement of $ 300, which adds up to about $ 630 per week for the unemployed. That means $ 32,000 a year, or roughly double the nation’s minimum wage..
According to the Century Foundation, 14.8 million Americans depend on some form of unemployment benefits as their main source of income.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.