STUDY: GOP Governors Rejecting Dems’ Expanded UI Bonuses Is Key to Jobs Recovery

July 30, 2021 — Blog    — Press Releases    — Select Revenue Measures    — Worker and Family Support   

With the July jobs report on the horizon, some gains are being made thanks to Republican governors rejecting President Biden’s devastating economic policies that are crushing Main Street.

 

In five of the last six weeks, new unemployment claims have risen in states that have kept the unemployment bonus, all while unemployment continues to decline in states that opted out. The message is clear: States that ended the unemployment bonus have fewer people filing for unemployment than those that are continuing it, according to a new study by the Foundation for Government Accountability.

 

To keep our economic recovery on track, in early May Republican leaders urged America’s governors to adopt policies that would reconnect unemployed workers with the more than 9 million job openings, including back-to-work bonuses.

 

If Friday’s jobs report shows strong labor participation, GOP governors, not the Biden Administration, deserve the credit.

 

Key Takeaways:

  • The number of people filing for unemployment is dropping rapidly in states that have ended the unemployment bonus.
  • Since May 8, new unemployment claims have fallen by 30 percent in states that ended the bonus, hitting their lowest levels since the pandemic hit.
  • Despite record numbers of open jobs and an economy that is screaming to be unleashed, nearly half the states have kept the destructive unemployment bonus—and they are paying the price.
  • Indeed, while unemployment plummets in the other half of the country, unemployment bonus states have continued to see unemployment claims tick up: In five of the last six weeks, new unemployment claims have risen in states that have kept the unemployment bonus, all while unemployment continues to decline in states that opted out.
    • Since June 5, the number of new people filing for unemployment has risen by more than 16 percent in states keeping the unemployment bonus.

 

 

As the Foundation for Government Accountability writes, the remaining 24 states should follow their lead and opt out. Workers, taxpayers, and small businesses everywhere need the boost that would certainly follow.

 

CLICK HERE to read the full report.