An estimated 1.84 million workers have spurned jobs to live off unemployment benefits, a survey found.
Nearly one-third of those receiving unemployment insurance said they had turned down at least one job offer during the pandemic, and out of that group, a weighty 45% cited generous unemployment benefits as a major reason why, according to a Morning Consult poll conducted from June 22 to June 25 among 5,000 adults.
The survey concluded that an estimated 1.84 million people turned down jobs because of the government benefits, given that about 14.1 million people were collecting benefits in mid-June before the poll was conducted.
HOSPITALITY INDUSTRY STRUGGLING AS WORKERS LOOK FOR JOBS ELSEWHERE POST-PANDEMIC
Republicans and some economists have said that the reason the labor market is lagging is because of the amplified unemployment boost from the federal government, which equates to $300 per week on top of what states already provide. More than two dozen states opted out of the expanded benefits before they end in September, but millions across the country, including in populous states such as California and New York, still receive them.
The national average of statewide unemployment insurance before the pandemic was $387 per week, meaning unemployed people in America are now netting $687 on average with the $300 expansion — that equates to a $17.17 hourly wage, more than double the federal minimum wage.
Prior to the release of the Wednesday Morning Consult survey, a study by Indeed found that job searches did not increase in the states that have already opted out of the expanded unemployment benefits, although the impacts of the early departures might not be felt for several weeks.
Last month, President Joe Biden highlighted the temporary nature of the payments and said it “makes sense” that they end in 90 days. The remarks were a bit of a tone shift from May when he said that “we don’t see much evidence” that those without jobs are opting to collect unemployment rather than find work.
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The economy added 850,000 new jobs in June, eclipsing forecasters’ predictions of 700,000. Despite that and the fact that more people are getting vaccinated and demand is high, unemployment slightly increased from 5.8% to 5.9% in June, a rate that is well above its February 2020 level of 3.5%.
