States that have cut federal unemployment benefits are not having their intended result of bringing more Americans back to the workplace compared to those maintaining assistance programs.
In research-study reviews cited by Reuters, the states that eliminated a $300 monthly unemployment payment to offset pandemic-related job losses this summer did not see any significant windfall in new hiring. These states, largely led by Republican governors, argued that such cuts would do more to stimulate their economies by removing what they consider a disincentive to returning to the labor force.
But new hiring appears to differ little between states that cut federal unemployment benefits and those that did not, according to the analyses. One found that those states that cut benefits saw as much as a 6% increase in the number of jobs found by job seekers. However, it also found that these states struggled more to bring workers back into the formal workforce.