The Biden administration reportedly wants to extend federal unemployment handouts past the September deadline.
A political battle is brewing over government payments. Progressives may push for President Biden to support extending unemployment handouts past the September deadline. However, Republicans argue the money is contributing to elevated unemployment numbers. Economists note that states which ended the federal bonuses early had a 34 percent faster job creation in June and almost 5 percent faster in July compared to states that kept the payments. The Heritage Foundation's Joel Griffith does not think the handouts will be extended past next month's deadline.
“I think the politics of this have changed,” Griffith said. “There are 10 million job openings. We have never had this many job openings at any one time in our nation’s history.”
He says ending the payments will incentivize many Americans to look for a job, which is a step toward resolving our nation's labor shortage.
“There are millions of jobs, and a lot of those that find themselves no longer receiving unemployment benefits will be able to find work with one of those openings,” Griffith explained.