Study ensures that eliminating unemployment benefits will not help fill vacancies

June 3, 2021

The FED stated that the benefits, despite representing a greater amount, are not enough to replace the benefits that every citizen can have when being employed, so that in the long term it would not be profitable

for experts employment it can not be removed by unemployment support as these have an expiration date .

Photo: Lukas / Pexels

A month after the Department of Labor announced that the goal of job creation was not met, the measures chosen by the Republicans to cut federal financial aid for unemployment equivalent to $ 300 dollars apparently will not solve the deficit of vacancies in the country .

According to an investigation by the San Francisco Federal Reserve, the position to suppress the help to combat the shortage of workers and stimulate hiring is not a solution , since that additional unemployment benefits do not prevent Americans from accepting new jobs.

The FED stated that the benefits, despite representing a greater amount, are not enough to replace the benefits that every citizen can have when employed, so that in the long term n or would it be profitable .

Nicolas Petrosky- Nadeau, author of the study and vice president of macroeconomic research at the Federal Reserve of San Francisco, informed Yahoo Money that unemployment benefits are temporary, while jobs are long-lasting.

In contrast, a report published by the United States Chamber of Commerce asserts that the crisis of shortage of workers has worsened in recent months, regardless that companies are raising wages and, in the case of some, offer better benefits, as well as a growth plan.

The study explained that in March there were 8.1 million job vacancies, which represented an increase of 600, 000 posts since February . But the number of available workers per position represented half of what has been the national average during the last years and the proportion is going low.

So far, Republican-ruled states have not disclosed how many jobs have been created in their entities since they began canceling federal unemployment benefits of $ . dollars a month ago.

For this reason, many citizens await the employment results from the United States Department of Labor for May in order to know if the Republican strategy of cutting unemployment benefits will be effective .

Despite this, economists have projected that the economic recovery will continue to rise, due to the advance of vaccination, as well as a high demand in the service industry, with which we can expect a rebound in employment across the country .

This may be possible, since according to the latest reports the Department of Labor released that applications for unemployment assistance in the country counted , 000 corresponding to the week of 22 of May. According to the federal agency, this figure is lower than the last study they released previously.

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Study ensures that eliminating unemployment benefits will not help fill vacancies

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