A group of House Republicans is calling for the Biden administration to end the federal unemployment benefits program that provided out-of-work Americans with an extra $300 a week, warning that enhanced aid is hampering the U.S. economic recovery from the coronavirus pandemic.
In a letter to Brian Deese, director of the National Economic Council, obtained by FOX Business first, four GOP lawmakers called on the White House to end the jobless supplement before it officially expires on Sept. 6, 2021, citing anemic job growth and a growing labor shortage.
The expanded retirement benefits and public school closures in certain states are weighing down an American economy trying to rebound from the COVID 19 pandemic, wrote the Republicans led by Rep. James Comer, R-Ky. It is past time for Americans to return to normal. It is a past time to end the stay-at home bonus, reopen schools for full in-person instruction and incentivize Americans to get back to work.
This letter comes just after the May jobs report, which revealed that employers added 559,000 jobs last month, missing Wall Street forecasts for a gain of around 650,000. It marked the second successive miss for job creation: in April, the economy added a revised 278,000 jobs, much lower than the 1 million forecast by Refinitiv economists.
There are 7.6 million fewer jobs than in February 2020, before the pandemic started.
The lackluster payroll growth has sparked concerns about a labor shortage and its potential impact on the economy's weak recovery from the pandemic. Employers are finding it difficult to increase the number of open positions in April, there were a record 9.3 million jobs, forcing them to reduce hours, pay overtime and lower prices.
At least 25 GOP states have announced plans over the past month to cut off jobless aid, a move they say will help businesses struggling to hire employees.
The average unemployment benefit is about $ 200 per month, which is a tax break away for the average state to earn up to $ 300 by 2033. With the federal supplement, Americans receive around $630 in monthly unemployment benefits. Here’s a link to the episode Announcing's journey of the year into the UK. About 40% of respondents to the unemployment are receiving more money from the government than they earned in their previous job, Republican lawmakers said.
Rather than champion Operation Warp Speed's amazing results, Democrats are proposing to support these enhanced benefits permanently via a new tax hike, they wrote. This would have a devastating effect on our economy, which is already suffering with state-induced inflation.
President Biden and Democrats have rejected the idea that Americans instead of returning to work and getting the extra unemployment benefit option part of the $1.9 trillion Coronavirus Relief Act adopted in March, remain home and get work.
Still, Biden emphasized that the unemployment benefits will end as planned in September despite the momentum among some of his party members to make the extra money permanent.
It is going to expire in 90 days, Biden said on Friday. I suppose that is just as legal.
Georgia, Idaho, Indiana, Iowa, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, Tennessee, Texas, Utah, West Virginia and Wyoming are moving to end the boosted unemployment benefits sometime over the summer.
At least four states of Montana, New Hampshire and Oklahoma will give workers up to $2,000 when they accept a new job.
Approximately 4 million people will lose their jobless aid as a result of the new policies according to a new estimate from the Century Foundation.