Topline
Amid a heated national debate about whether generous federal unemployment benefits are discouraging Americans from returning to work, more than half of states have now reinstated their requirements—or plan to reinstate them in the near future—that recipients of unemployment benefits actively search for work in order to continue to receive their payments. Here’s what you need to know.
A woman seeking employment attends the 25th annual Central Florida Employment Council Job Fair at ... [+]
Key Facts
Job search requirements aren’t the same in every state, but in general they require that recipients of unemployment benefits actively search for employment and provide evidence they are doing so—sometimes in the form of proof of applications or proof of participation in job training programs or hiring events.
Many states lifted the job search requirement during the pandemic, but now, as the economy reopens, at least 36 states have reimposed that requirement or are planning to reimpose it soon, according to Forbes’ tally.
That’s more than the 18 states that have said they will stop paying the federal government’s $300 weekly unemployment supplement because of concerns the extra money is discouraging them from taking jobs.
Included in those 36 states are those that said they will stop paying the federal government’s extra $300 per week supplement as well as those that will continue paying that supplement until it expires in September.
Some states, such as North Dakota and Wyoming, have had their job-search requirement back in place for months, while others, including Arizona and South Carolina, are just announcing its reinstatement.
Some states also have exceptions for medical diagnoses, Covid-19 related reasons or childcare challenges, including Alaska and Iowa and Michigan.
Big Number
16.9 million. That’s how many people were receiving some form of government unemployment benefit as of the week ended May 8, according to the Labor Department.
Key Background
Since the CARES Act was passed in March 2020, the federal government has paid an extra weekly supplement to recipients of unemployment insurance benefits. The CARES Act authorized a $600 weekly supplement. After that lapsed, the Trump administration authorized another $300 per week supplement that the Biden administration re-upped in the 2021 American Rescue Plan Act. But as the economic recovery progresses, some Republicans have argued that these extra benefits mean that low-wage workers are turning down offers of employment, or have stopped seeking employment altogether, because they may make more—or almost as much—from the federal program than they would working. There’s also an argument that these benefits are actually pushing wages up, since many companies are now raising pay in order to attract workers again. The Biden Administration disputes the assessment that the supplement is discouraging people from working, but last week said President Biden had directed the Secretary of Labor to work with states to reinstate work search requirements for individuals receiving unemployment insurance benefits, depending on health and safety conditions.
Crucial Quote
“The law is clear: If you're receiving unemployment benefits and you're offered a suitable job,” Biden told reporters last week, “you can't refuse that job and just keep getting the unemployment benefits.” Biden clarified that some pandemic exceptions to that rule exist “so people aren’t forced to choose between their basic safety and a paycheck” and acknowledged the remaining barriers to people accepting jobs, including childcare challenges, school closures and vaccination status.
Tangent
Some states are considering alternative ways to get residents back to work. In Montana, some UI recipients who take jobs (and complete at least four weeks of paid work) will be eligible for a $1,200 “return to work” bonus. Sen. Ben Sasse (R-Neb.) has proposed using the money leftover from cancelling the supplemental payments to pay jobseekers a two-month signing bonus—that’s bigger than their current unemployment payments—when they get hired.
What To Watch For
The $300 weekly supplement will expire completely at the beginning of September.
Further Reading
At Least 18 States Dropping $300-A-Week Federal Unemployment Benefits (Forbes)
Unemployment Pay May Again Require a Job Search. Is It Too Soon? (New York Times)
Could Covid-19 Worker Shortages Create A $15 Minimum Wage—Even Without A New Law? (Forbes)
White House Says $300-A-Week Unemployment Benefits Are Not Causing Worker Shortages (Forbes)
