21 September 2021

Imagine That!

There is an interesting data point in the August job numbers, job growth was faster in states that kept providing extended unemployment benefits experienced faster job growth.

Yet another right wing theory exploded.

Correction; the same old right wing theory, that more cruelty is always the answer, has again been shown to fail: 

The federal government eliminated pandemic UI benefits on September 6 with the full support of President Biden. At the time, the available labor market data showed that this was a mistake: states that had prematurely ended the benefits in the summer did not grow payrolls faster than states that didn’t and so the cuts served no purpose except to immiserate jobless people.

A few days ago, the BLS released its monthly local area unemployment data for August and this data shows once again that UI cuts are not supercharging employment growth. Quite the opposite in fact. In August, states that cut UI benefits over the summer saw their payrolls grow by 0.12 percent. States that had retained UI benefits grew their payrolls by 0.27 percent, more than twice as fast as the benefit-cutting states.

Of course, Joe Biden and the  Democratic Party establishment (There is no Democratic Party establishment) blithely allowed benefits to expire on labor day, so now the rest of the country will experience this lack of performance.

 

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