UNEXPECTEDLY: Americans Are Leaving Unemployment Rolls More Quickly in States Cutting Off Benefits.
[Jefferies LLC economists] also found somewhat larger decreases in the number of people receiving benefits through pandemic programs in states curtailing benefits, though the data lags behind by an additional week. In many cases, those recipients will be cut off entirely when their state ends participation in the federal programs.
“You’re starting to see a response to these programs ending,” said Aneta Markowska, Jefferies’ chief financial economist. In recent months “employers were having to compete with the government handing out money, and that makes it very hard to attract workers.”
As Chef Andrew Gruel told Reason: “In the very beginning, when the government offered it, I think it was $600 on top of what the state was offering for unemployment. Here in California, it was about $1,100 a week. Initially we did lay everybody off, because we didn’t know what was going to happen. As we started helping out with the community and building some business, our business came back, and we needed those employees back. So we started reaching out to everybody. A lot of people were like, ‘Look, I’m making $1,100 right now not working. I’ve got books I want to read. I’ve got classes I want to take online.’ If I was 19 years old and I could make $1,500 as a server working 50 hours a week, or I could make $1,100 sitting at home, reading books, learning an instrument, heck, I would do it too.”