How ironic is it that today is the day that just under 9 million Americans lost their unemployment benefits. On “Labor Day”. These are special benefits enacted because of the Covid pandemic, going to people who lost their jobs through no fault of their own.
During the Great Recession, jobless benefits were extended from when the recession started in 2008-2009, all the way until 2013. The current pandemic is more severe, and isn’t even over with new variants appearing, and yet the benefits were killed in less than 2 years after the pandemic started.
Some (mostly Republican) states ended their jobless benefits even earlier, but multiple studies have shown that ending benefits had almost no effect on increasing the number of people looking for work. Some states ended benefits because of a false belief that the benefits were encouraging lazy people to not work.
Instead, with less money being spent by people who are unemployed, it is believed that ending the previous unemployment benefits will actually hurt the economy, and lead to additional job losses.
Also published on Medium.