Are Unemployment Benefits Causing Labor Shortage? Take Our Poll

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According to a Morning Consult poll, about 1.8 million unemployed Americans have turned down jobs because of generous unemployment insurance benefits. Although federal benefits are scheduled to end on September 6, more than half of the nation’s states decided to cut benefits early, citing tight labor markets.

Take Our Poll: Are Unemployment Benefits to Blame for Labor Shortage?

Texas governor Greg Abbott ended benefits on June 26, stating the economy was booming and employers were hiring throughout the state. On the same day, Oklahoma announced it would be ending benefits, as well. Governors throughout the country have cited more open positions than there are employees to fill them — and many believe unemployment insurance is to blame.

The other side of the argument is that the ongoing pandemic and inaccessibility to child care has been keeping potential employees home. While many areas of the country have high rates of vaccination, others have yet to reach 50% of their populations vaccinated. June’s jobs report added 850,000 new jobs to the economy, beating the projection of 706,000, conflicting the argument for the need of extended insurance versus an abundance of jobs eliminating its necessity.

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With all of that in mind, we’d like to get your take on the issue: Do you believe extended unemployment benefits are to blame for an excess of jobs with no one to fill them? Let us know by answering our latest anonymous poll.

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Last updated: July 20, 2021

About the Author

Georgina Tzanetos is a former financial advisor who studied post-industrial capitalist structures at New York University. She has eight years of experience with concentrations in asset management, portfolio management, private client banking, and investment research. Georgina has written for Investopedia and WallStreetMojo. 

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