Report Shows Covid-19 Unemployment Benefits Disincentive a Return to Work

COVID BusinessImage by Valentin Baciu

NAPLES, FL — The Foundation for Government Accountability (FGA) this week published a new report that breaks down the congressionally-inflated cash benefits by month for Florida unemployment recipients.

In light of COVID-19, Congress pushed through multiple welfare benefit boosts, unemployment bonuses, and tax credit boosts—while suspending needed eligibility requirements. The report finds that individuals receiving inflated cash and related benefits in Florida would take home more than double what a full-time minimum wage worker would earn, and nearly 17 percent more than the median salary of full-time workers in Florida.

“The expanded benefits and suspended eligibility rules of welfare programs have made staying home pay more than work for many unemployed Floridians,” said Hayden Dublois, Senior Research Analyst at FGA. “These programs have increased dependence on the government and slowed our recovery, making it more difficult for small businesses to fill open jobs and stay open.”

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Additionally, the report notes that as other COVID-19 unemployment benefits expired last summer, the economy boomed and businesses reopened. As the effects of lockdowns wind down, state and federal policymakers should end the unemployment bonus and other policies keeping Americans out of the workforce. Policymakers must preserve resources for the most vulnerable and put more people back on the path to the American Dream.

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May 16, 2021 5:44 pm

I worked for walmart overnight stocking. We got a new AP person who really sttessed untruthful gestures in which I ended up with no job. The store manager wouldn’t even listen to my story! I needed my good paying job! Now for the first time, I am set to draw unemployment and all these folks are saying that I just don’t want to work! I do want to work and would love to have at least a fair shot at getting my job back!