Update: Federal Unemployment benefits end. What’s next?

Several Federal Unemployment Benefits including that extra $300 dollars a week ended for more than 7 million Americans on Labor Day.

With the uncertainty of the resurgence of Covid-19, it’s possible that Congress could authorize new unemployment benefits in the future.  https://www.forbes.com/sites/zackfriedman/2021/09/05/unemployment-benefits-end-tomorrow-for-millions-of-americans/

 

What happens now?  Conventional thinking would be the job market will now be flooded. Experts don’t believe that will be the case.

“I think it’s a lot more complicated. It’s true when you stop the unemployment benefits you increase people’s incentive to go out and find jobs, and for sure. There is a certain group of people that the benefit gave them more than what they made before they lost their job, but there are other wrinkles that come in to play,” said David Robinson, a finance professor at Duke’s Fuqua School of Business

Experts like Robinson are looking at three main reasons the job market may not be flooded immediately.

#1 Studying for better jobs

Folks in minimum wage jobs used the benefits to put themselves through school to get a better job. Like Richard Escotto, who went from waiter to cyber security. He talked with CBS Sunday Morning.

“I’m thinking, I was, like scared, right? I don’t feel you could take many chances when you have the kids and the family. It’s very scary to take those chances, but I was like, ‘I have to do something or else I’m going to get stuck here again and stuck in this way and I was like, ‘this might be my only chance,’” Escotto said.

#2 Child care issues

While our area has gone back to school and no district has gone back to remote learning, a good portion of the nation goes back to school after Labor Day. There’s a fear remote learning could return, leaving parents with few choices for childcare. In some places, child care has never bounced back making the return to consumer-based jobs more difficult.

#3 The rising Delta variant

Potential employees have concerns about COVID-19. Cases have jumped more than 1,000% since July Fourth.

“The idea of being close to hundreds of strangers a day, even while being vaccinated, that’s not something that appeals to me in any way,” said Michael Kittle, who is losing his unemployment benefits.

https://www.wfmynews2.com/article/news/local/2-wants-to-know/federal-unemployment-benefits-end-what-happens-now-experts-dont-believe-the-job-market-will-be-flooded-due-to-child-care-delta-variant-and-schooling/83-c9157f49-7a07-48df-ab87-8e322da1ac09

 

Verne Hill

Verne Hill

The News Guy – WBFJ Family Friendly Morning Show at WBFJ fm - Your family station!
I enjoy many things: Music. Family movie nights. My American flag flapping in the wind. Sunsets at the beach. Snow days. The Sweet Tea Party. Salvation through Grace…

VERSE: “Let everything that has breath praise the LORD” Psalm 150

QUOTE: “A person who loves his job, will never work a day in his life.”

MON-SAT 6A-10A(& Sunday@5 host)
verne@wbfj.fm
Verne Hill

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Verne Hill

I enjoy many things: Music. Family movie nights. My American flag flapping in the wind. Sunsets at the beach. Snow days. The Sweet Tea Party. Salvation through Grace… VERSE: “Let everything that has breath praise the LORD” Psalm 150 QUOTE: “A person who loves his job, will never work a day in his life.” MON-SAT 6A-10A (& Sunday@5 host) verne@wbfj.fm