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Unemployment benefits are competitive with most states’ average wages — and it could explain why Americans aren’t rushing back to work
Average wages are higher than expanded unemployment in 47 states, Insider calculates, but UI is competitive nearly everywhere. It’s changing work.
By Ben Winck and Andy Kiersz
The federal government significantly expanded unemployment benefits for much of the pandemic as millions of Americans lost their jobs amid lockdowns. Mass vaccinations and a reopening economy are now throwing the benefits into a new light — as a shadow minimum wage.
American consumer spending has far outpaced job growth amid reopening, and Friday’s disappointing April jobs report ignited a furious debate over whether expanded unemployment is helping or hurting.
Democrats maintained their support for the $300 federal boost to unemployment insurance, arguing the benefit serves as a critical lifeline for millions of jobless Americans. Republicans came out in force against them, slamming the program as a disincentivize against work and paying Americans to stay unemployed.
Insider’s calculations show something in between: that the federal $300-per-week boost to state unemployment is only higher than the average wage in three states, but it’s…
