Within two or three days of the cessation of benefits, he said, applications tripled. When the government approved the $ 300 replacement, he said, the number began to dwindle, even though most states had not yet started paying.
“It’s free money, so they feel they no longer have to work,” he said.
Other employers share her sentiment. One-third of small owners surveyed by the National Federation of Independent Businesses stated that supplementation makes hiring difficult.
Of course, there are examples that tell a different story – millions of them. In May, June and July, more than 9.3 million workers returned to a job, for unemployment benefits.
And this story is by far the most common.
Researchers at Yale University reviewed scheduling and time clock data for small businesses, stating, “We have no evidence that either more generous benefits dissolve the work at the start of the expansion or As firms wanted to return to business over time. “
Five other studies by different groups of economists produced the same results.
And in a Franklin Templeton-Gallup poll conducted in early August, most people said that additional government relief would not prevent them from going back to work.
One reason is that people generally look forward. “The latest results show that Americans arguably understand the long-term safety of returning to work, rather than relying on ongoing government aid,” said Sonal Desai, chief investment officer at Franklin Templeton Fixed Income.
New research by University of Chicago and New York University economists came to the same conclusion. Additional benefits, even if extended, are transitory. In a recession, the prospect of not offering another job after refusing someone is frightening, as is the possibility that low pay and career failure may be permanent. Stability is very much worth it.