Jobless Claims Fall As States Reduce Benefits; Is It Time For Congress To Act?

As The Wall Street Journal reported on May 20, the number of American workers receiving unemployment benefits through state and federal programs reached pandemic low of 444,000 during the week that ended May 15. (Click here to read the U.S. Department of Labor’s announcement citing the decline.)

One reason for the improved number might be the fact that more than 20 states have suspended or plan to suspend participation in a federal program that allowed workers to receive an $300 in jobless benefits. According to the U.S. Chamber of Commerce (USCC), those supplemental unemployment insurance payments have been preventing employers from finding and hiring people.

Businesses have been urging state leaders to end participation in the federal program and last week Texas, Oklahoma, and Indiana became the latest states to announce that they are cutting off access to federal benefits.

The USCC also is urging federal lawmakers to act. Employers and individuals can click here to use the USCC’s one-click advocacy tool to tell Congress to eliminate these benefits for all 50 states.

The White House, meanwhile, is trying to take incremental steps to get able-bodied employees back to work. As a reminder, President Joe Biden has directed the U.S. Department of Labor to clarify existing eligibility requirements for workers to receive unemployment benefits, including the $300 per week in enhanced benefits. Although the President did not eliminate the additional benefits, a White House fact sheet reiterated that workers cannot turn down suitable work and still remain eligible for unemployment benefits.